Ab Bond Fund N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:811-02383

AB BOND FUND, INC.

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas,

New York, New York 10105

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800)221-5672

Date of fiscal year end: October 31, 2019

Date of reporting period: October 31, 2019

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.19

ANNUAL REPORT

AB ALL MARKET REAL RETURN PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB All Market Real Return Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

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ANNUAL REPORT

December 12, 2019

This report provides management’s discussion of fund performance for AB All Market Real Return Portfolio for the annual reporting period ended October 31, 2019.

The Fund’s investment objective is to maximize real return over inflation.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
AB ALL MARKET REAL RETURN PORTFOLIO1
Class 1 Shares2		0.24%		3.14%
Class 2 Shares2		0.35%		3.46%
Class A Shares		0.12%		2.97%
Class C Shares3		-0.23%		2.17%
Advisor Class Shares4		0.12%		3.15%
Class R Shares4		-0.12%		2.62%
Class K Shares4		0.12%		3.03%
Class I Shares4		0.35%		3.39%
Class Z Shares4		0.23%		3.37%
MSCI AC World Commodity Producers Index (net)		-6.95%		-4.70%

1 Includes the impact of proceeds received and credited to the Fund resulting from class-action settlements, which enhanced the performance of all share classes of the Fund for thesix- and12-month periods ended October 31, 2019, by 0.07% and 0.07%, respectively.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

3 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

4 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Morgan Stanley Capital International All Country (“MSCI AC”) World Commodity Producers Index (net), for thesix- and12-month periods ended October 31, 2019.

For the12-month period, all share classes outperformed the benchmark, before sales charges. Strategic allocation was a meaningful overall contributor, relative to benchmark, primarily due to real estate positions and inflation-sensitive equities. Security selection was an overall detractor

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primarily due to selection in commodities and inflation-sensitive equities. Positive selection in real estate was a contributor. The Fund’s tactical allocation was an overall modest detractor, with contributions from commodity stocks and real estate exposures being offset by commodity futures and inflation-sensitive equities.

For thesix-month period, all share classes outperformed the benchmark, before sales charges. Strategic allocation was an overall contributor, primarily due to real estate positions and inflation-sensitive equities. Security selection was flat, as positive selection within commodity stocks and real estate was offset by negative selection in commodity futures and inflation-sensitive equities. The Fund’s tactical asset allocation detracted due to positions in inflation-sensitive equities, commodity futures and commodity equities.

The Fund utilized derivatives for hedging and investment purposes in the form of futures, currency forwards, inflation swaps, total return swaps and purchased options, which detracted from absolute returns for both periods, while written options added for thesix-month period and detracted for the12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

US, international and emerging-market stocks recorded double-digit returns during the12-month period ended October 31, 2019. After declining at the end of 2018, equity markets rebounded dramatically in January as the US Federal Reserve (the “Fed”) kept rates unchanged, companies reported strong corporate earnings, and investors were optimistic about the possibility of a trade truce between the US and China. Escalation of the trade war continued, however, and emerging geopolitical pressures increased market volatility, restrained business spending and resulted in slowing global growth. Nevertheless, low unemployment and relatively strong consumer spending continued to support US economic expansion throughout the period. An initial round of high-level trade negotiations inmid-October led to optimism that a partial resolution to theUS-China trade war would be reached.

Fixed-income markets performed strongly over the12-month period. Long-dated, developed-market treasury securities and emerging-market sovereign debt were strong performers, given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. The Fed ultimately lowered interest rates three times. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low, while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance.

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US-China trade tensions and slowing global growth weighed on inflation- sensitive assets such as commodities and commodity producers over the12-month period as both posted negative returns. Real estate outperformed broad equities over the period as the sector benefited from falling interest rates and investor flows into defensives.

The Fund’s Senior Investment Management Team continues to look for sources of value via asset allocation shifts, active security selection, risk overlay strategies and currency management. The Fund uses a blend of quantitative and fundamental research in order to determine overall portfolio risk, allocate risk across major real asset classes and identify idiosyncratic opportunities.

INVESTMENT POLICIES

The Fund seeks to maximize real return. Real return is the rate of return after adjusting for inflation. The Fund pursues an aggressive investment strategy involving a variety of asset classes. The Fund invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Fund expects to invest its assets principally in the following instruments that, in the judgment of the Adviser, are affected directly or indirectly by the level and change in rate of inflation: inflation-indexed fixed-income securities, such as Treasury inflation-protected securities (“TIPS”) and similar bonds issued by governments outside of the United States; commodities; commodity-related equity securities; real estate equity securities; inflation-sensitive equity securities, which the Fund defines as equity securities of companies that the Adviser believes have the ability to pass along increasing costs to consumers and maintain or grow margins in rising inflation environments, including equity securities of utilities and infrastructure-related companies (“inflation-sensitive equities”); securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate); and currencies. The Fund expects its investments in fixed-income securities to have a broad range of maturities and quality levels.

The Fund will seek inflation protection from investments around the globe, both in developed- and emerging-market countries. In selecting securities for purchase and sale, the Adviser will utilize its qualitative and quantitative resources to determine overall inflation sensitivity, asset allocation and security selection. The Adviser assesses the securities’ risks and inflation sensitivity as well as the securities’ impact on the overall risks and inflation sensitivity of the Fund. When its analysis indicates that changes are necessary, the Adviser intends to implement them through a combination of changes to underlying positions and the use of inflation swaps and other types of derivatives, such as interest rate swaps.

(continued on next page)

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The Fund anticipates that its targeted investment mix, other than its investments in inflation-indexed fixed-income securities, will focus on commodity-related equity securities, commodities and commodity derivatives, real estate equity securities and inflation-sensitive equities to provide a balance between expected return and inflation protection. The Fund may vary its investment allocations among these asset classes, at times significantly. Its commodities investments will include significant exposure to energy commodities, but will also include agricultural products, and industrial and precious metals, such as gold. The Fund’s investments in real estate equity securities will include real estate investment trusts (“REITs”) and other real estate-related securities.

The Fund will invest in both US andnon-US dollar-denominated equity or fixed-income securities. The Fund may invest in currencies for hedging or investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Fund does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in US dollar-denominated securities, although it may hedge the exposure under certain circumstances.

The Fund may invest significantly to the extent permitted by applicable law in derivatives, such as options, futures contracts, forwards, swaps or structured notes. The Fund intends to use leverage for investment purposes through the use of cash made available by derivatives transactions to make other investments in accordance with its investment policies. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

The Fund may seek to gain exposure to physical commodities traded in the commodities markets through investments in a variety of derivative instruments, including investments in commodity index-linked notes. The Adviser expects that the Fund will seek to gain exposure to commodities and commodity-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the Fund except that the Subsidiary, unlike the Fund, may invest, without limitation, in commodities and commodity-related instruments. The Fund will be subject to the risks associated with the commodities, derivatives

(continued on next page)

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and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Fund limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Fund with commodity exposure within the limitations of federal tax requirements that apply to the Fund.

The Fund is“non-diversified”, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The MSCI AC World Commodity Producers Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The MSCI AC World Commodity Producers Index is a free float-adjusted, market capitalization index designed to track the performance of global listed commodity producers, including emerging markets. Commodities sectors include: energy, grains, industrial metals, petroleum, precious metals and softs. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction ofnon-US withholding tax. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Commodity Risk: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes

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DISCLOSURES AND RISKS(continued)

in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Foreign fixed-income securities may have more illiquid investments risk because secondary trading markets for these securities may be smaller and less well-developed and the securities may trade less frequently. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Foreign(Non-US) Risk: Investments in securities ofnon-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Subsidiary Risk: By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

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DISCLOSURES AND RISKS(continued)

Real Estate Risk: The Fund’s investments in real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.

Non-Diversification Risk: The Fund may have more risk because it is“non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recentmonth-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance”.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com. For Class 1 shares, go to www.bernstein.com, click on “Investments”, then

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DISCLOSURES AND RISKS(continued)

“Mutual Fund and Money Market Information—Prospectuses, SAIs, and Shareholder Reports”. Please read the prospectus and/or summary prospectus carefully before investing.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximumfront-end sales charge for Class A shares and a 1%1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

3/8/2010¹ TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB All Market Real Return Portfolio Class A shares (from 3/8/2010¹ to 10/31/2019) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 3/8/2010.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		3.14%		3.14%
5 Years		-1.68%		-1.68%
Since Inception2		0.45%		0.45%
CLASS 2 SHARES1
1 Year		3.46%		3.46%
5 Years		-1.44%		-1.44%
Since Inception2		0.70%		0.70%
CLASS A SHARES
1 Year		2.97%		-1.42%
5 Years		-1.84%		-2.70%
Since Inception2		0.34%		-0.10%
CLASS C SHARES
1 Year		2.17%		1.17%
5 Years		-2.57%		-2.57%
Since Inception2		-0.39%		-0.39%
ADVISOR CLASS SHARES3
1 Year		3.15%		3.15%
5 Years		-1.61%		-1.61%
Since Inception2		0.60%		0.60%
CLASS R SHARES3
1 Year		2.62%		2.62%
5 Years		-2.11%		-2.11%
Since Inception2		0.10%		0.10%
CLASS K SHARES3
1 Year		3.03%		3.03%
5 Years		-1.84%		-1.84%
Since Inception2		0.37%		0.37%
CLASS I SHARES3
1 Year		3.39%		3.39%
5 Years		-1.46%		-1.46%
Since Inception2		0.69%		0.69%
CLASS Z SHARES3
1 Year		3.37%		3.37%
5 Years		-1.47%		-1.47%
Since Inception2		-1.25%		-1.25%

(footnotes continued on next page)

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HISTORICAL PERFORMANCE(continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.11%, 0.85%, 1.30%, 2.05%, 1.05%, 1.61%, 1.30%, 0.87% and 0.87% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs to 1.30%, 2.05%, 1.05%, 1.55%, 1.30%, 1.05% and 1.05% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2020 and may be extended by the Adviser for additionalone-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 Inception dates: 3/8/2010 for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K and Class I shares; 1/31/2014 for Class Z shares.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

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HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-4.84%
5 Years		-2.52%
Since Inception2		0.22%
CLASS 2 SHARES1
1 Year		-4.69%
5 Years		-2.27%
Since Inception2		0.46%
CLASS A SHARES
1 Year		-9.10%
5 Years		-3.53%
Since Inception2		-0.35%
CLASS C SHARES
1 Year		-6.68%
5 Years		-3.40%
Since Inception2		-0.62%
ADVISOR CLASS SHARES3
1 Year		-4.83%
5 Years		-2.43%
Since Inception2		0.37%
CLASS R SHARES3
1 Year		-5.41%
5 Years		-2.95%
Since Inception2		-0.14%
CLASS K SHARES3
1 Year		-5.01%
5 Years		-2.67%
Since Inception2		0.13%
CLASS I SHARES3
1 Year		-4.66%
5 Years		-2.29%
Since Inception2		0.45%
CLASS Z SHARES3
1 Year		-4.67%
5 Years		-2.30%
Since Inception2		-1.67%

(footnotes continued on next page)

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HISTORICAL PERFORMANCE(continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 Inception dates: 3/8/2010 for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K and Class I shares; 1/31/2014 for Class Z shares.

3 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution(12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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EXPENSE EXAMPLE(continued)

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,001.20	$	6.76		1.34	%	$	6.86		1.36	%
Hypothetical**	$	1,000	$	1,018.45	$	6.82		1.34	%	$	6.92		1.36	%
Class C
Actual	$	1,000	$	997.70	$	10.52		2.09	%	$	10.62		2.11	%
Hypothetical**	$	1,000	$	1,014.67	$	10.61		2.09	%	$	10.71		2.11	%
Advisor Class
Actual	$	1,000	$	1,001.20	$	5.55		1.10	%	$	5.65		1.12	%
Hypothetical**	$	1,000	$	1,019.66	$	5.60		1.10	%	$	5.70		1.12	%
Class R
Actual	$	1,000	$	998.80	$	7.86		1.56	%	$	7.96		1.58	%
Hypothetical**	$	1,000	$	1,017.34	$	7.93		1.56	%	$	8.03		1.58	%
Class K
Actual	$	1,000	$	1,001.20	$	6.46		1.28	%	$	6.56		1.30	%
Hypothetical**	$	1,000	$	1,018.75	$	6.51		1.28	%	$	6.61		1.30	%
Class I
Actual	$	1,000	$	1,003.50	$	4.34		0.86	%	$	4.39		0.87	%
Hypothetical**	$	1,000	$	1,020.87	$	4.38		0.86	%	$	4.43		0.87	%
Class 1
Actual	$	1,000	$	1,002.40	$	5.55		1.10	%	$	5.65		1.12	%
Hypothetical**	$	1,000	$	1,019.66	$	5.60		1.10	%	$	5.70		1.12	%
Class 2
Actual	$	1,000	$	1,003.50	$	4.09		0.81	%	$	4.14		0.82	%
Hypothetical**	$	1,000	$	1,021.12	$	4.13		0.81	%	$	4.18		0.82	%
Class Z
Actual	$	1,000	$	1,002.30	$	4.29		0.85	%	$	4.39		0.87	%
Hypothetical**	$	1,000	$	1,020.92	$	4.33		0.85	%	$	4.43		0.87	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

** Assumes 5% annual return before expenses.

+ In connection with the Fund’s investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund’s total expenses are equal to the classes’ annualized expense ratio plus the Fund’s pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

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PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,151.7

1 All data are as of October 31, 2019. The portfolio breakdown is expressed as an approximate percentage of the Fund’s net assets inclusive of derivative exposure, based on the Adviser’s internal classification guidelines.

2 The Fund’s security type breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details).

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PORTFOLIO SUMMARY(continued)

October 31, 2019(unaudited)

TEN LARGEST HOLDINGS²

Company	U.S. $ Value		Percent of Net Assets
Japanese Government CPI Linked Bond Series 21	$	81,404,321		7.1	%
Royal Dutch Shell PLC – Class B		26,481,085		2.3
Chevron Corp.		17,387,319		1.5
Vanguard Real Estate ETF		15,076,684		1.3
Exxon Mobil Corp.		14,983,040		1.3
Prologis, Inc.		14,133,836		1.2
iShares MSCI Global Metals & Mining Producers ETF		12,382,049		1.1
BP PLC		12,294,028		1.0
iShares Global Energy ETF		11,496,038		1.0
Welltower, Inc.		11,179,356		1.0
	$	216,817,756		18.8	%

1 All data are as of October 31, 2019. The Fund’s country breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.8% or less in the following countries: Austria, Belgium, Chile, Denmark, Greece, Ireland, Israel, Italy, Luxembourg, Mexico, Netherlands, Philippines, Portugal, Russia, South Africa, South Korea, Sweden, Switzerland, Thailand, Turkey and United Arab Emirates.

2 Long-term investments.

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CONSOLIDATED PORTFOLIO OF INVESTMENTS

October 31, 2019

Company	Shares		U.S. $ Value
COMMON STOCKS – 73.5%
Real Estate – 39.5%
Diversified Real Estate Activities – 2.3%
Ayala Land, Inc.		1,513,200	$	1,446,056
City Developments Ltd.		302,700		2,397,139
Daito Trust Construction Co., Ltd.		5,100		675,854
Mitsubishi Estate Co., Ltd.		126,500		2,456,044
Mitsui Fudosan Co., Ltd.		342,300		8,757,003
Sun Hung Kai Properties Ltd.		359,000		5,440,037
Tokyu Fudosan Holdings Corp.		353,000		2,341,414
UOL Group Ltd.		426,500		2,442,088
				25,955,635
Diversified REITs – 3.5%
Alexander & Baldwin, Inc.		89,990		2,115,665
Armada Hoffler Properties, Inc.		122,553		2,296,643
Essential Properties Realty Trust, Inc.(a)		125,200		3,212,632
Fibra Uno Administracion SA de CV		1,161,690		1,765,800
Gecina SA		23,660		4,061,687
GPT Group (The)		1,308,631		5,371,576
Growthpoint Properties Ltd.		1,571,552		2,301,312
H&R Real Estate Investment Trust		118,879		2,010,952
Hulic Reit, Inc.		2,424		4,624,270
Kenedix Office Investment Corp. – Class A(a)		339		2,655,746
Land Securities Group PLC		162,940		1,984,693
Merlin Properties Socimi SA		177,529		2,613,373
Mirvac Group		1,307,970		2,898,301
SA Corporate Real Estate Ltd.(a)		5,544,590		1,133,833
Stockland		76,928		259,707
United Urban Investment Corp.		700		1,412,201
				40,718,391
Health Care REITs – 3.5%
Assura PLC		3,427,680		3,321,154
HCP, Inc.		240,190		9,035,948
Medical Properties Trust, Inc.		340,550		7,059,602
Omega Healthcare Investors, Inc.		154,840		6,819,154
Physicians Realty Trust		187,736		3,505,031
Welltower, Inc.		123,270		11,179,356
				40,920,245
Hotel & Resort REITs – 0.9%
Japan Hotel REIT Investment Corp.		2,848		2,365,641
Park Hotels & Resorts, Inc.		224,258		5,213,998
RLJ Lodging Trust		179,050		2,938,211
				10,517,850

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Industrial REITs – 3.8%
Americold Realty Trust		166,580	$	6,678,192
Goodman Group		179,772		1,785,003
Mitsui Fudosan Logistics Park, Inc.		362		1,510,149
Nippon Prologis REIT, Inc.		1,235		3,449,705
Prologis, Inc.		161,051		14,133,836
Rexford Industrial Realty, Inc.		69,110		3,323,500
Segro PLC		431,442		4,719,676
STAG Industrial, Inc.		176,740		5,486,009
Tritax Big Box REIT PLC		1,382,410		2,692,570
				43,778,640
Office REITs – 5.5%
Alexandria Real Estate Equities, Inc.		58,681		9,315,609
Allied Properties Real Estate Investment Trust		74,080		3,013,595
Boston Properties, Inc.		67,230		9,223,956
CapitaLand Commercial Trust		2,596,700		3,910,587
City Office REIT, Inc.		137,330		1,859,448
Cousins Properties, Inc.		200,335		8,039,444
Daiwa Office Investment Corp.		305		2,429,934
Easterly Government Properties, Inc.		104,430		2,330,878
Great Portland Estates PLC		291,690		2,975,873
Ichigo Office REIT Investment		1,352		1,390,936
Inmobiliaria Colonial Socimi SA		263,950		3,410,848
Invesco OfficeJ-Reit, Inc.		11,624		2,346,725
Japan Real Estate Investment Corp.		339		2,313,948
Kilroy Realty Corp.		68,840		5,777,741
Mori Hills REIT Investment Corp.		2,228		3,682,383
Nippon Building Fund, Inc.		197		1,494,561
				63,516,466
Real Estate Development – 3.2%
China Overseas Land & Investment Ltd.		1,200,000		3,786,589
China Resources Land Ltd.		1,576,000		6,702,534
CIFI Holdings Group Co., Ltd.		10,024,000		6,685,767
CK Asset Holdings Ltd.		1,114,500		7,754,366
Emaar Properties PJSC		2,038,830		2,369,548
Instone Real Estate Group AG(b)(c)		126,730		2,968,180
Times China Holdings Ltd.		3,601,000		6,426,506
				36,693,490
Real Estate Operating Companies – 4.0%
ADO Properties SA(c)		59,800		2,434,365
Aroundtown SA		452,850		3,827,753
Azrieli Group Ltd.		24,850		1,915,393
CA Immobilien Anlagen AG		94,779		3,652,111
Central Pattana PCL		421,300		892,969

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Entra ASA(c)		184,008	$	2,755,551
Fabege AB		201,910		3,015,416
Hemfosa Fastigheter AB		232,960		2,399,398
Parque Arauco SA		499,500		1,314,917
SM Prime Holdings, Inc.		1,497,400		1,149,718
Swire Properties Ltd.		793,200		2,494,653
TLG Immobilien AG		173,870		5,090,325
Vonovia SE		191,013		10,172,368
Wharf Real Estate Investment Co., Ltd.		819,000		4,817,131
				45,932,068
Real Estate Services – 0.7%
Open House Co., Ltd.		66,100		1,689,156
Unibail-Rodamco-Westfield		37,770		5,841,902
				7,531,058
Residential REITs – 5.4%
American Campus Communities, Inc.		103,080		5,151,938
American Homes 4 Rent – Class A		263,950		6,986,756
Camden Property Trust		54,100		6,187,417
Comforia Residential REIT, Inc.		481		1,567,849
Essex Property Trust, Inc.		25,000		8,178,250
Independence Realty Trust, Inc.		324,330		4,994,682
Japan Rental Housing Investments, Inc.		1,871		1,794,940
Killam Apartment Real Estate Investment Trust		295,320		4,374,530
Mid-America Apartment Communities, Inc.		62,970		8,752,200
Northview Apartment Real Estate Investment Trust		104,440		2,288,466
Sun Communities, Inc.		54,007		8,784,239
UNITE Group PLC (The)		223,185		3,250,617
				62,311,884
Retail REITs – 4.1%
AEON REIT Investment Corp.		639		919,535
Agree Realty Corp.		51,810		4,081,074
Brixmor Property Group, Inc.		353,640		7,787,153
Japan Retail Fund Investment Corp.		627		1,463,136
Link REIT		609,901		6,642,676
Realty Income Corp.		135,960		11,120,169
Retail Properties of America, Inc. – Class A		444,690		6,118,934
Simon Property Group, Inc.		9,162		1,380,530
SITE Centers Corp.		267,410		4,152,877
Vicinity Centres		1,880,614		3,461,688
				47,127,772
Specialized REITs – 2.6%
CubeSmart		164,100		5,201,970
Digital Realty Trust, Inc.		73,530		9,341,251

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Equinix, Inc.		3,301	$	1,870,941
MGM Growth Properties LLC – Class A		134,746		4,205,423
National Storage Affiliates Trust		189,780		6,484,782
Public Storage		4,540		1,011,784
Safestore Holdings PLC		186,610		1,693,286
				29,809,437
				454,812,936
Energy – 11.1%
Integrated Oil & Gas – 9.3%
BP PLC		1,938,705		12,294,028
Chevron Corp.		149,710		17,387,319
Exxon Mobil Corp.		221,741		14,983,040
Imperial Oil Ltd.		18,740		466,686
LUKOIL PJSC (Sponsored ADR)		32,400		2,982,744
Origin Energy Ltd.(a)		331,496		1,797,191
PetroChina Co., Ltd. – Class H		10,230,000		4,988,776
Petroleo Brasileiro SA (Preference Shares)		1,006,000		7,623,074
Repsol SA		399,558		6,584,596
Royal Dutch Shell PLC – Class A		8,210		237,992
Royal Dutch Shell PLC – Class B		911,226		26,243,093
TOTAL SA		210,811		11,145,197
				106,733,736
Oil & Gas Equipment & Services – 0.0%
Petrofac Ltd.		76,507		381,836
Oil & Gas Exploration & Production – 0.9%
Aker BP ASA(a)		70,204		1,947,275
Continental Resources, Inc./OK(a)(b)		74,480		2,194,925
EOG Resources, Inc.		66,577		4,614,452
Inpex Corp.		166,300		1,537,357
				10,294,009
Oil & Gas Refining & Marketing – 0.8%
JXTG Holdings, Inc.		599,100		2,800,337
Motor Oil Hellas Corinth Refineries SA		76,532		1,892,804
S-Oil Corp.		21,829		1,864,875
Tupras Turkiye Petrol Rafinerileri AS		69,827		1,519,877
Valero Energy Corp.		6,586		638,710
				8,716,603
Oil & Gas Storage & Transportation – 0.1%
Enbridge, Inc.		5,734		208,837
TC Energy Corp.		18,392		927,071
				1,135,908
				127,262,092

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Materials – 5.1%
Aluminum – 0.5%
Alcoa Corp.(b)		213,223	$	4,432,906
Norsk Hydro ASA		381,569		1,348,297
				5,781,203
Commodity Chemicals – 0.0%
Corteva, Inc.(b)		20,835		549,627
Construction Materials – 0.1%
Grupo Cementos de Chihuahua SAB de CV		258,307		1,438,269
Copper – 0.6%
Antofagasta PLC		203,643		2,293,572
First Quantum Minerals Ltd.		265,182		2,240,890
Lundin Mining Corp.		265,752		1,341,774
OZ Minerals Ltd.		168,030		1,172,417
				7,048,653
Diversified Chemicals – 0.1%
Sasol Ltd.		63,656		1,153,999
Diversified Metals & Mining – 1.6%
BHP Group Ltd.		15,702		384,895
Boliden AB		88,568		2,388,454
Glencore PLC(b)		2,207,848		6,664,121
MMC Norilsk Nickel PJSC (ADR)		72,047		1,998,224
Orocobre Ltd.(a)(b)		138,626		249,669
Rio Tinto PLC		85,239		4,437,696
Sumitomo Metal Mining Co., Ltd.		46,200		1,545,375
Syrah Resources Ltd.(a)(b)		971,282		267,888
				17,936,322
Gold – 1.0%
Agnico Eagle Mines Ltd.		81,240		4,993,074
AngloGold Ashanti Ltd.		90,017		1,991,023
Detour Gold Corp.(b)		121,044		2,009,895
Kirkland Lake Gold Ltd.		11,114		521,905
Newcrest Mining Ltd.		63,538		1,386,928
Polyus PJSC (GDR)(c)		18,558		1,080,819
Real Gold Mining Ltd.(b)(d)(e)(f)		811,000		– 0	–
				11,983,644
Paper Products – 0.2%
Suzano SA		279,000		2,270,680
Precious Metals & Minerals – 0.1%
Industrias Penoles SAB de CV		57,843		688,890

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Silver – 0.1%
Wheaton Precious Metals Corp.		26,613	$	745,997
Specialty Chemicals – 0.3%
Akzo Nobel NV		10,072		928,572
Covestro AG(c)		10,228		491,168
Johnson Matthey PLC		43,948		1,745,917
				3,165,657
Steel – 0.5%
APERAM SA		69,145		1,771,634
ArcelorMittal		159,787		2,375,868
Fortescue Metals Group Ltd.(a)		15,113		92,501
Yamato Kogyo Co., Ltd.		72,500		1,880,771
				6,120,774
				58,883,715
Software & Services – 2.0%
Application Software – 0.4%
Adobe, Inc.(b)		608		168,981
Cadence Design Systems, Inc.(b)		23,125		1,511,219
Constellation Software, Inc./Canada		480		474,071
Intuit, Inc.		7,106		1,829,795
				3,984,066
Data Processing & Outsourced Services – 0.8%
Mastercard, Inc. – Class A		10,195		2,822,078
Paychex, Inc.		20,680		1,729,675
PayPal Holdings, Inc.(b)		19,157		1,994,244
Visa, Inc. – Class A		17,318		3,097,497
				9,643,494
Internet Services & Infrastructure – 0.1%
VeriSign, Inc.(b)		7,216		1,371,184
IT Consulting & Other Services – 0.2%
Accenture PLC – Class A		11,434		2,120,092
Systems Software – 0.5%
Microsoft Corp.		23,172		3,322,170
Oracle Corp.		2,097		114,265
ServiceNow, Inc.(b)		5,699		1,409,135
Trend Micro, Inc./Japan		15,000		757,114
VMware, Inc. – Class A		4,266		675,180
				6,277,864
				23,396,700

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Pharmaceuticals & Biotechnology – 1.9%
Biotechnology – 0.3%
Amgen, Inc.		4,783	$	1,019,975
Gilead Sciences, Inc.		22,958		1,462,654
Incyte Corp.(b)		7,226		606,406
Vertex Pharmaceuticals, Inc.(b)		7,189		1,405,305
				4,494,340
Life Sciences Tools & Services – 0.1%
Sartorius Stedim Biotech		4,821		722,241
Pharmaceuticals – 1.5%
Astellas Pharma, Inc.		65,700		1,127,588
Bristol-Myers Squibb Co.		12,627		724,411
Eli Lilly & Co.		5,161		588,096
GlaxoSmithKline PLC		58,120		1,331,235
Johnson & Johnson		21,611		2,853,516
Merck & Co., Inc.		31,288		2,711,418
Novartis AG		1,820		159,023
Novo Nordisk A/S – Class B		25,125		1,381,591
Pfizer, Inc.		18,292		701,864
Roche Holding AG		6,347		1,910,167
Shionogi & Co., Ltd.		14,100		846,323
UCB SA		11,557		931,480
Zoetis, Inc.		15,203		1,944,768
				17,211,480
				22,428,061
Food Beverage & Tobacco – 1.3%
Agricultural Products – 0.0%
Bunge Ltd.		2,917		157,518
Packaged Foods & Meats – 1.0%
Hershey Co. (The)		11,046		1,622,326
JBS SA		644,900		4,549,114
Mowi ASA(a)		111,350		2,718,271
Nestle SA		12,936		1,383,910
Tyson Foods, Inc. – Class A		11,443		947,366
				11,220,987
Soft Drinks – 0.3%
Coca-Cola Amatil Ltd.		97,885		686,922
Monster Beverage Corp.(b)		10,897		611,649
PepsiCo, Inc.		18,818		2,581,265
				3,879,836
				15,258,341

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Retailing – 1.1%
Apparel Retail – 0.2%
Hennes & Mauritz AB – Class B(a)		52,094	$	1,091,864
Industria de Diseno Textil SA(a)		35,056		1,092,373
TJX Cos., Inc. (The)		13,524		779,659
				2,963,896
Department Stores – 0.1%
Next PLC		16,073		1,370,808
General Merchandise Stores – 0.1%
Harvey Norman Holdings Ltd.(a)		214,455		605,088
Home Improvement Retail – 0.2%
Home Depot, Inc. (The)		12,110		2,840,764
Internet & Direct Marketing Retail – 0.5%
Amazon.com, Inc.(b)		1,137		2,020,063
Booking Holdings, Inc.(b)		1,045		2,140,965
eBay, Inc.		32,453		1,143,968
				5,304,996
				13,085,552
Utilities – 1.1%
Electric Utilities – 0.6%
Endesa SA		20,548		559,621
Enel SpA		160,123		1,241,011
Exelon Corp.		26,150		1,189,564
Power Assets Holdings Ltd.		10,500		74,929
PPL Corp.		56,821		1,902,935
Red Electrica Corp. SA		44,922		902,821
Terna Rete Elettrica Nazionale SpA		147,578		975,402
				6,846,283
Gas Utilities – 0.1%
Snam SpA		176,791		907,628
Independent Power Producers & Energy Traders – 0.0%
Uniper SE		12,516		390,080
Multi-Utilities – 0.4%
Consolidated Edison, Inc.		17,845		1,645,666
Sempra Energy		7,463		1,078,478
Suez		61,224		954,944
Veolia Environnement SA		31,457		828,066
				4,507,154
				12,651,145

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    27

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Transportation – 1.0%
Air Freight & Logistics – 0.2%
CH Robinson Worldwide, Inc.(a)		19,793	$	1,497,142
Expeditors International of Washington, Inc.		21,430		1,563,104
SG Holdings Co., Ltd.		10,800		267,450
				3,327,696
Airlines – 0.1%
Air Canada(b)		21,147		753,014
Japan Airlines Co., Ltd.		9,000		280,459
				1,033,473
Airport Services – 0.1%
Sydney Airport		127,475		772,045
Highways & Railtracks – 0.4%
Transurban Group		485,235		4,969,749
Railroads – 0.1%
Central Japan Railway Co.		3,200		656,429
Trucking – 0.1%
Nippon Express Co., Ltd.		14,600		833,011
				11,592,403
Consumer Durables & Apparel – 1.0%
Apparel, Accessories & Luxury Goods – 0.2%
adidas AG		2,727		842,018
Hermes International		569		409,880
Pandora A/S		21,566		1,061,177
				2,313,075
Consumer Electronics – 0.1%
Panasonic Corp.		82,900		696,723
Footwear – 0.0%
Yue Yuen Industrial Holdings Ltd.		179,000		504,456
Homebuilding – 0.7%
Construtora Tenda SA		280,000		1,648,373
Corp. GEO SAB de CV Series B(b)(d)(e)(f)		1,321		– 0	–
Desarrolladora Homex SAB de CV(b)		1,590		7
Lennar Corp. – Class A		40,390		2,407,244
MRV Engenharia e Participacoes SA		203,700		893,425
NVR, Inc.(b)		469		1,705,561
Pressance Corp.		69,900		1,142,260
Urbi Desarrollos Urbanos SAB de CV(b)		172		9
				7,796,879
				11,311,133

28    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Media & Entertainment – 0.8%
Interactive Home Entertainment – 0.2%
Electronic Arts, Inc.(b)		18,280	$	1,762,192
Ubisoft Entertainment SA(b)		9,725		574,740
				2,336,932
Interactive Media & Services – 0.5%
Alphabet, Inc. – Class A(b)		833		1,048,580
Alphabet, Inc. – Class C(b)		617		777,488
Facebook, Inc. – Class A(b)		19,571		3,750,782
				5,576,850
Movies & Entertainment – 0.1%
Viacom, Inc. – Class B		70,048		1,510,235
				9,424,017
Banks – 0.8%
Diversified Banks – 0.8%
Australia & New Zealand Banking Group Ltd.		7,729		142,037
Barclays PLC		241,472		523,770
Canadian Imperial Bank of Commerce		9,991		851,939
Citigroup, Inc.		34,819		2,502,093
Japan Post Bank Co., Ltd.		78,700		782,870
JPMorgan Chase & Co.		2,224		277,822
Mizuho Financial Group, Inc.		273,500		424,602
National Bank of Canada		5,480		283,008
Royal Bank of Scotland Group PLC		68,268		188,709
Societe Generale SA		35,318		1,004,405
Wells Fargo & Co.		44,710		2,308,377
				9,289,632
Diversified Financials – 0.8%
Asset Management & Custody Banks – 0.1%
CI Financial Corp.		43,108		627,424
Franklin Resources, Inc.		32,230		887,937
				1,515,361
Financial Exchanges & Data – 0.3%
Moody’s Corp.		1,893		417,766
S&P Global, Inc.		7,011		1,808,768
Singapore Exchange Ltd.		81,500		535,091
				2,761,625
Investment Banking & Brokerage – 0.2%
Goldman Sachs Group, Inc. (The)		9,473		2,021,349
Morgan Stanley		13,462		619,925
				2,641,274

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    29

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Multi-Sector Holdings – 0.2%
Berkshire Hathaway, Inc. – Class B(b)		6,319	$	1,343,293
Industrivarden AB – Class C		17,187		372,385
				1,715,678
Other Diversified Financial Services – 0.0%
Voya Financial, Inc.		6,561		354,031
				8,987,969
Health Care Equipment & Services – 0.7%
Health Care Distributors – 0.1%
McKesson Corp.		8,338		1,108,954
Health Care Equipment – 0.2%
Cochlear Ltd.		4,371		637,685
Edwards Lifesciences Corp.(b)		5,802		1,383,081
				2,020,766
Health Care Supplies – 0.1%
Coloplast A/S – Class B		7,507		903,812
Hoya Corp.		7,800		689,342
				1,593,154
Health Care Technology – 0.3%
Cerner Corp.		23,983		1,609,739
Veeva Systems, Inc. – Class A(b)		10,527		1,493,044
				3,102,783
Managed Health Care – 0.0%
Centene Corp.(b)		9,357		496,670
				8,322,327
Food & Staples Retailing – 0.7%
Food Distributors – 0.0%
Sysco Corp.		2,576		205,745
Food Retail – 0.5%
Alimentation Couche-Tard, Inc. – Class B		9,148		274,350
Casino Guichard Perrachon SA(a)		17,666		953,028
Colruyt SA		16,835		935,799
Empire Co., Ltd. – Class A		13,392		355,568
Jeronimo Martins SGPS SA		25,008		420,226
Koninklijke Ahold Delhaize NV		41,539		1,035,154
Metro, Inc./CN		9,756		412,580
Woolworths Group Ltd.		32,748		844,444
				5,231,149

30    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Hypermarkets & Super Centers – 0.2%
Carrefour SA		47,685	$	811,863
METRO AG		48,719		795,552
Walmart, Inc.		5,979		701,098
				2,308,513
				7,745,407
Capital Goods – 0.7%
Aerospace & Defense – 0.1%
BAE Systems PLC		162,436		1,213,350
Building Products – 0.1%
Cie de Saint-Gobain		17,805		725,161
Construction & Engineering – 0.2%
Taisei Corp.		57,600		2,271,365
Construction & Farm Machinery & Heavy Trucks – 0.1%
Cummins, Inc.		4,864		838,943
Industrial Conglomerates – 0.1%
Toshiba Corp.		23,400		800,190
Trading Companies & Distributors – 0.1%
AerCap Holdings NV(b)		30,608		1,771,591
				7,620,600
Insurance – 0.6%
Life & Health Insurance – 0.4%
AIA Group Ltd.		15,000		149,373
iA Financial Corp., Inc.		16,390		789,323
Japan Post Holdings Co., Ltd.		86,200		791,250
Legal & General Group PLC		238,322		814,665
MetLife, Inc.		38,021		1,779,003
				4,323,614
Multi-line Insurance – 0.1%
American International Group, Inc.		33,635		1,781,310
Property & Casualty Insurance – 0.1%
Direct Line Insurance Group PLC		113,326		399,559
Tokio Marine Holdings, Inc.		7,400		400,085
				799,644
				6,904,568
Semiconductors & Semiconductor Equipment – 0.6%
Semiconductor Equipment – 0.1%
Tokyo Electron Ltd.		4,600		931,954

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Semiconductors – 0.5%
Intel Corp.		52,747	$	2,981,788
QUALCOMM, Inc.		11,160		897,710
Texas Instruments, Inc.		16,929		1,997,453
				5,876,951
				6,808,905
Consumer Services – 0.5%
Casinos & Gaming – 0.0%
Aristocrat Leisure Ltd.		14,187		309,348
Hotels, Resorts & Cruise Lines – 0.1%
Carnival Corp.		11,631		498,854
Whitbread PLC		21,138		1,112,633
				1,611,487
Leisure Facilities – 0.2%
Planet Fitness, Inc.(b)		27,210		1,732,188
Restaurants – 0.2%
Compass Group PLC		10,463		278,568
McDonald’s Corp.		4,451		875,512
Restaurant Brands International, Inc.		2,809		183,776
Starbucks Corp.		9,744		823,952
Yum! Brands, Inc.		4,901		498,481
				2,660,289
				6,313,312
Telecommunication Services – 0.5%
Integrated Telecommunication Services – 0.4%
Eutelsat Communications SA		16,181		306,952
Telecom Italia SpA/Milano(b)		1,033,292		604,779
Telecom Italia SpA/Milano (Savings Shares)		1,584,605		917,175
Telenor ASA		44,735		837,249
Verizon Communications, Inc.		47,401		2,866,339
				5,532,494
Wireless Telecommunication Services – 0.1%
Softbank Corp.(a)		48,300		662,546
				6,195,040
Commercial & Professional Services – 0.5%
Human Resource & Employment Services – 0.3%
Adecco Group AG		16,032		953,041
ManpowerGroup, Inc.		18,395		1,672,473
Randstad NV		5,123		284,310
				2,909,824

32    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Company	Shares		U.S. $ Value
Research & Consulting Services – 0.2%
CoStar Group, Inc.(b)		1,293	$	710,529
Thomson Reuters Corp.		11,231		754,731
Wolters Kluwer NV		13,039		960,362
				2,425,622
				5,335,446
Technology Hardware & Equipment – 0.5%
Electronic Equipment & Instruments – 0.1%
Hitachi Ltd.		22,800		850,952
Technology Hardware, Storage & Peripherals – 0.4%
Apple, Inc.		14,788		3,678,663
Hewlett Packard Enterprise Co.		42,816		702,610
				4,381,273
				5,232,225
Household & Personal Products – 0.4%
Household Products – 0.1%
Colgate-Palmolive Co.		26,485		1,816,871
Personal Products – 0.3%
Beiersdorf AG		3,268		386,895
Unilever NV(a)		20,858		1,232,847
Unilever PLC		23,595		1,412,844
				3,032,586
				4,849,457
Automobiles & Components – 0.3%
Auto Parts & Equipment – 0.1%
Magna International, Inc. – Class A (Canada)		13,835		743,903
Automobile Manufacturers – 0.2%
Fiat Chrysler Automobiles NV		69,564		1,079,547
Ford Motor Co.		137,906		1,184,613
				2,264,160
				3,008,063
Total Common Stocks (cost $804,648,990)				846,719,046

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    33

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 7.1%
Japan – 7.1%
Japanese Government CPI Linked Bond Series 21 0.10%, 3/10/26 (cost $80,501,088)	JPY		8,572,260	$	81,404,321
		Shares
INVESTMENT COMPANIES – 4.9%
Funds and Investment Trusts – 4.9%(g)
iShares Global Energy ETF(a)			380,160		11,496,038
iShares MSCI Global Metals & Mining Producers ETF(a)			451,570		12,382,049
VanEck Vectors Agribusiness ETF			57,592		3,848,298
VanEck Vectors Gold Miners ETF			174,290		4,906,264
Vanguard Globalex-U.S. Real Estate ETF			148,550		9,046,695
Vanguard Real Estate ETF			159,880		15,076,684
Total Investment Companies (cost $55,308,427)					56,756,028
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 11.1%
Governments – Treasuries – 7.4%
Japan – 7.4%
Japan Treasury Discount Bill Series 830 Zero Coupon, 11/11/19	JPY		4,610,000		42,690,030
Series 860 Zero Coupon, 1/08/20			4,610,000		42,703,587
Total Governments – Treasuries (cost $85,449,693)					85,393,617
		Shares
Investment Companies – 2.0%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(g)(h)(i) (cost $22,320,423)			22,320,423		22,320,423

34    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
U.S. Treasury Bills – 1.7%
U.S. Treasury Bill Zero Coupon, 11/07/19 (cost $19,993,500)	U.S.$		20,000	$	19,995,250
Total Short-Term Investments (cost $127,763,616)					127,709,290
		Shares
Total Investments Before Security Lending Collateral for Securities Loaned – 96.6% (cost $1,068,222,121)					1,112,588,685
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.9%
Investment Companies – 0.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(g)(h)(i) (cost $9,973,544)			9,973,544		9,973,544
Total Investments – 97.5% (cost $1,078,195,665)					1,122,562,229
Other assets less liabilities – 2.5%					29,137,613
Net Assets – 100.0%				$	1,151,699,842

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Brent Crude Futures		131		April 2020	$	7,506,300	$	(194,927	)
Coffee Robusta Futures		230		March 2020		3,077,400		39,937
Coffee ‘C’ Futures		63		March 2020		2,491,256		39,439
Copper Futures		228		March 2020		15,087,900		329,378
Cotton No.2 Futures		73		March 2020		2,404,620		56,986
Gold 100 OZ Futures		113		December 2019		17,117,240		500,932
Lean Hogs Futures		67		June 2020		2,439,470		(10,018	)
Live Cattle Futures		24		December 2019		1,125,360		164,710
LME Nickel Futures		43		November 2019		4,306,278		10,740
LME Nickel Futures		19		January 2020		1,900,494		(19,316	)
Low SU Gasoil Futures		41		March 2020		2,284,725		(43,099	)
MSCI Emerging Markets Futures		34		December 2019		3,327,240		56,885
Natural Gas Futures		918		December 2019		25,079,760		222,170
Natural Gas Futures		504		February 2020		12,942,720		(208,113	)
Platinum Futures		70		January 2020		3,267,950		31,902

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    35

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
S&P 500E-Mini Futures		45		December 2019	$	6,830,550	$	105,782
Soybean Futures		80		January 2020		3,729,000		6,600
Soybean Meal Futures		41		December 2019		1,248,040		25,588
Soybean Meal Futures		303		March 2020		9,408,150		308,160
Soybean Oil Futures		500		March 2020		9,375,000		220,635
Sold Contracts
10 Yr Japan Bond (OSE) Futures		35		December 2019		49,895,824		396,003
Brent Crude Futures		60		November 2019		3,577,200		98,713
Cocoa Futures		61		December 2019		1,465,830		32,436
Corn Futures		189		December 2019		3,685,500		(46,544	)
LME Nickel Futures		43		November 2019		4,306,278		(84,086	)
LME Nickel Futures		61		January 2020		6,101,586		(134,417	)
MSCI Emerging Markets Futures		144		December 2019		7,498,080		(408,220	)
Natural Gas Futures		340		April 2020		7,894,800		(311,909	)
Soybean Oil Futures		62		January 2020		1,152,084		(3,011	)
Wheat Futures (CBT)		191		December 2019		4,858,562		(28,919	)
							$	1,154,417

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	NZD	6,545	USD	4,198		11/07/19	$	1,797
Australia and New Zealand Banking Group Ltd.	AUD	2,026	USD	1,374		11/08/19		(22,568	)
Australia and New Zealand Banking Group Ltd.	USD	13,261	AUD	19,335		11/08/19		68,995
Australia and New Zealand Banking Group Ltd.	JPY	9,769,170	USD	91,399		11/21/19		852,280
Australia and New Zealand Banking Group Ltd.	JPY	346,509	USD	3,201		11/21/19		(10,468	)
Australia and New Zealand Banking Group Ltd.	USD	80,955	JPY	8,653,563		11/21/19		(748,897	)
Australia and New Zealand Banking Group Ltd.	USD	1,364	CHF	1,348		1/10/20		10,737
Australia and New Zealand Banking Group Ltd.	USD	6,872	HKD	53,824		5/26/20		(2,838	)
Bank of America, NA	USD	4,926	JPY	530,294		11/08/19		(14,873	)
Bank of America, NA	RUB	118,969	USD	1,848		11/14/19		(4,398	)
Bank of America, NA	USD	8,743	RUB	564,104		11/14/19		42,926
Bank of America, NA	JPY	294,802	USD	2,735		11/21/19		2,563
Bank of America, NA	CAD	9,064	USD	6,824		11/22/19		(58,793	)
Bank of America, NA	TRY	19,554	USD	3,266		12/05/19		(123,174	)
Bank of America, NA	NOK	12,714	USD	1,383		1/08/20		(409	)
Bank of America, NA	USD	5,562	SEK	53,608		1/08/20		11,847
Barclays Bank PLC	BRL	9,640	USD	2,315		11/04/19		(88,887	)
Barclays Bank PLC	USD	2,408	BRL	9,640		11/04/19		(3,842	)
Barclays Bank PLC	NZD	11,508	USD	7,395		11/07/19		16,555

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Barclays Bank PLC	NZD	53,849	USD	33,782		11/07/19	$	(745,132	)
Barclays Bank PLC	USD	16,768	NZD	26,036		11/07/19		(74,686	)
Barclays Bank PLC	USD	6,863	AUD	10,156		11/08/19		138,710
Barclays Bank PLC	CLP	4,036,177	USD	5,568		11/14/19		124,721
Barclays Bank PLC	COP	9,803,520	USD	2,830		11/14/19		(69,442	)
Barclays Bank PLC	USD	2,732	RUB	176,009		11/14/19		8,947
Barclays Bank PLC	USD	1,369	RUB	87,817		11/14/19		(1,618	)
Barclays Bank PLC	IDR	20,736,587	USD	1,429		11/21/19		(40,599	)
Barclays Bank PLC	JPY	3,995,988	USD	37,325		11/21/19		287,863
Barclays Bank PLC	JPY	449,737	USD	4,146		11/21/19		(22,585	)
Barclays Bank PLC	USD	6,242	IDR	88,880,060		11/21/19		56,148
Barclays Bank PLC	USD	1,151	IDR	16,217,405		11/21/19		(1,556	)
Barclays Bank PLC	USD	42,461	JPY	4,560,763		11/21/19		(188,766	)
Barclays Bank PLC	CAD	9,571	USD	7,232		11/22/19		(34,946	)
Barclays Bank PLC	USD	23,340	CAD	30,897		11/22/19		119,707
Barclays Bank PLC	TWD	131,361	USD	4,324		11/27/19		2,535
Barclays Bank PLC	TWD	124,885	USD	4,096		11/27/19		(12,558	)
Barclays Bank PLC	USD	14,244	TWD	437,649		11/27/19		155,006
Barclays Bank PLC	USD	18,824	TRY	112,000		12/05/19		590,126
Barclays Bank PLC	PHP	279,473	USD	5,408		12/06/19		(90,115	)
Barclays Bank PLC	USD	5,849	PHP	297,301		12/06/19		(336	)
Barclays Bank PLC	USD	4,667	EUR	4,171		12/16/19		(1,306	)
Barclays Bank PLC	EUR	3,739	NOK	37,118		1/08/20		(151,800	)
Barclays Bank PLC	CHF	5,674	USD	5,791		1/10/20		8,154
Barclays Bank PLC	CHF	45,030	USD	45,728		1/10/20		(169,925	)
Barclays Bank PLC	USD	5,788	CHF	5,674		1/10/20		(5,259	)
Barclays Bank PLC	ILS	7,308	USD	2,077		1/15/20		(3,862	)
Barclays Bank PLC	EUR	4,974	USD	5,529		1/16/20		(47,538	)
Barclays Bank PLC	INR	101,503	USD	1,419		1/16/20		3,371
Barclays Bank PLC	INR	382,214	USD	5,306		1/16/20		(26,627	)
Barclays Bank PLC	USD	9,692	INR	698,218		1/16/20		48,642
Barclays Bank PLC	USD	2,631	INR	187,884		1/16/20		(9,552	)
Barclays Bank PLC	CNY	24,816	USD	3,516		2/13/20		2,365
Barclays Bank PLC	USD	15,086	CNY	107,354		2/13/20		115,173
Barclays Bank PLC	USD	2,771	MYR	11,583		2/13/20		4,816
BNP Paribas SA	NZD	32,343	USD	20,437		11/07/19		(300,797	)
BNP Paribas SA	USD	3,479	NZD	5,521		11/07/19		60,859
BNP Paribas SA	USD	12,490	NZD	19,415		11/07/19		(41,829	)
BNP Paribas SA	AUD	70,016	USD	47,916		11/08/19		(355,681	)
BNP Paribas SA	USD	36,234	AUD	53,254		11/08/19		480,388
BNP Paribas SA	PEN	12,405	USD	3,675		11/14/19		(32,789	)
BNP Paribas SA	USD	8,843	ZAR	130,557		11/21/19		(222,434	)
BNP Paribas SA	CAD	25,020	USD	18,782		11/22/19		(215,678	)
BNP Paribas SA	USD	8,232	CAD	10,893		11/22/19		38,902
BNP Paribas SA	JPY	2,603,404	USD	24,860		12/16/19		688,147
BNP Paribas SA	USD	70,378	NOK	631,662		1/08/20		(1,653,258	)
BNP Paribas SA	USD	12,046	SEK	117,712		1/08/20		193,215
BNP Paribas SA	USD	14,032	SEK	134,706		1/08/20		(24,861	)
BNP Paribas SA	USD	11,525	CHF	11,369		1/10/20		63,718
Citibank, NA	USD	5,107	NZD	8,097		11/07/19		84,460
Citibank, NA	USD	8,739	AUD	12,820		11/08/19		99,162
Citibank, NA	COP	4,541,966	USD	1,350		11/14/19		6,303

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    37

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Citibank, NA	COP	9,326,701	USD	2,714		11/14/19	$	(44,124	)
Citibank, NA	PEN	17,731	USD	5,259		11/14/19		(40,634	)
Citibank, NA	USD	1,342	CLP	971,164		11/14/19		(32,278	)
Citibank, NA	USD	1,524	COP	5,127,080		11/14/19		(7,115	)
Citibank, NA	IDR	218,936,934	USD	15,136		11/21/19		(379,143	)
Citibank, NA	USD	3,440	JPY	373,162		11/21/19		18,970
Citibank, NA	ZAR	39,789	USD	2,690		11/21/19		62,856
Citibank, NA	TRY	50,815	USD	8,592		12/05/19		(216,763	)
Citibank, NA	PHP	876,293	USD	16,818		12/06/19		(420,861	)
Citibank, NA	USD	4,740	PHP	246,048		12/06/19		100,039
Citibank, NA	USD	8,851	JPY	962,172		12/13/19		80,662
Citibank, NA	CNY	24,324	USD	3,441		12/19/19		(8,954	)
Citibank, NA	NOK	432,937	USD	48,506		1/08/20		1,402,733
Citibank, NA	USD	9,541	NOK	84,979		1/08/20		(295,126	)
Citibank, NA	USD	11,272	CZK	262,963		1/09/20		236,945
Citibank, NA	USD	1,222	PLN	4,659		1/09/20		(1,428	)
Citibank, NA	CHF	4,110	SEK	40,160		1/10/20		(12,903	)
Citibank, NA	CHF	10,078	USD	10,289		1/10/20		16,858
Citibank, NA	SEK	26,709	USD	2,769		1/10/20		(8,808	)
Citibank, NA	USD	3,062	CHF	2,999		1/10/20		(5,016	)
Citibank, NA	EUR	8,559	USD	9,438		1/16/20		(157,286	)
Citibank, NA	SGD	18,317	USD	13,453		1/16/20		(21,369	)
Citibank, NA	TRY	7,932	USD	1,320		1/21/20		(38,718	)
Citibank, NA	USD	2,018	TRY	12,073		1/21/20		50,031
Citibank, NA	KRW	2,399,769	USD	2,052		2/06/20		(2,838	)
Citibank, NA	USD	7,290	KRW	8,523,487		2/06/20		10,080
Credit Suisse International	BRL	43,578	USD	10,409		11/04/19		(457,054	)
Credit Suisse International	USD	10,883	BRL	43,578		11/04/19		(17,368	)
Credit Suisse International	CLP	20,690,103	USD	29,125		11/14/19		1,218,958
Credit Suisse International	TRY	32,782	USD	5,663		12/05/19		(19,048	)
Credit Suisse International	NOK	214,194	USD	23,617		1/08/20		312,745
Credit Suisse International	SEK	323,110	USD	33,125		1/08/20		(472,127	)
Credit Suisse International	USD	11,684	NOK	106,961		1/08/20		(47,084	)
Credit Suisse International	USD	20,686	SEK	202,198		1/08/20		338,739
Credit Suisse International	USD	13,117	SEK	125,992		1/08/20		(16,268	)
Credit Suisse International	CHF	6,792	SEK	66,905		1/10/20		34,115
Credit Suisse International	USD	23,474	CHF	23,123		1/10/20		95,153
Credit Suisse International	USD	6,794	EUR	6,123		1/16/20		70,188
Credit Suisse International	USD	2,646	TRY	15,990		1/21/20		93,291
Credit Suisse International	HKD	105,000	USD	13,380		5/26/20		(19,977	)
Deutsche Bank AG	USD	3,439	CHF	3,386		1/10/20		12,468
Goldman Sachs Bank USA	BRL	54,819	USD	13,763		11/04/19		94,375
Goldman Sachs Bank USA	BRL	16,649	USD	3,979		11/04/19		(172,622	)
Goldman Sachs Bank USA	USD	17,849	BRL	71,468		11/04/19		(28,483	)
Goldman Sachs Bank USA	USD	4,100	AUD	6,063		11/08/19		79,703
Goldman Sachs Bank USA	RUB	176,586	USD	2,757		11/14/19		6,447
Goldman Sachs Bank USA	RUB	618,076	USD	9,496		11/14/19		(129,757	)
Goldman Sachs Bank USA	USD	2,921	CLP	2,098,418		11/14/19		(90,328	)
Goldman Sachs Bank USA	USD	16,358	RUB	1,055,413		11/14/19		79,653
Goldman Sachs Bank USA	USD	2,063	RUB	132,168		11/14/19		(4,149	)
Goldman Sachs Bank USA	JPY	445,482	AUD	6,101		11/21/19		78,934

38    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Goldman Sachs Bank USA	JPY	5,125,316	USD	47,796		11/21/19	$	291,434
Goldman Sachs Bank USA	USD	31,776	IDR	456,088,713		11/21/19		545,586
Goldman Sachs Bank USA	USD	29,750	JPY	3,217,781		11/21/19		74,582
Goldman Sachs Bank USA	USD	14,459	JPY	1,544,871		11/21/19		(140,357	)
Goldman Sachs Bank USA	CAD	8,009	USD	6,087		11/22/19		5,654
Goldman Sachs Bank USA	CAD	25,658	USD	19,398		11/22/19		(84,039	)
Goldman Sachs Bank USA	USD	12,077	CAD	16,022		11/22/19		88,206
Goldman Sachs Bank USA	USD	4,092	TWD	124,375		11/27/19		428
Goldman Sachs Bank USA	BRL	11,024	USD	2,751		12/03/19		6,905
Goldman Sachs Bank USA	USD	13,741	BRL	54,819		12/03/19		(97,251	)
Goldman Sachs Bank USA	JPY	2,340,811	USD	22,094		12/16/19		360,581
Goldman Sachs Bank USA	MXN	65,627	USD	3,390		1/07/20		11,209
Goldman Sachs Bank USA	NOK	75,519	USD	8,203		1/08/20		(13,097	)
Goldman Sachs Bank USA	CZK	79,142	USD	3,400		1/09/20		(63,950	)
Goldman Sachs Bank USA	HUF	7,567,037	USD	25,137		1/09/20		(645,848	)
Goldman Sachs Bank USA	USD	2,452	CZK	55,967		1/09/20		(2,595	)
Goldman Sachs Bank USA	USD	3,261	HUF	976,840		1/09/20		67,169
Goldman Sachs Bank USA	SEK	40,543	CHF	4,109		1/10/20		(28,218	)
Goldman Sachs Bank USA	SEK	13,451	USD	1,371		1/10/20		(27,671	)
HSBC Bank USA	USD	1,375	NZD	2,176		11/07/19		19,846
HSBC Bank USA	AUD	4,028	USD	2,743		11/08/19		(33,896	)
HSBC Bank USA	USD	4,106	AUD	5,986		11/08/19		21,546
HSBC Bank USA	IDR	57,515,826	USD	3,889		11/21/19		(186,576	)
HSBC Bank USA	JPY	420,836	AUD	5,709		11/21/19		36,877
HSBC Bank USA	USD	2,699	ZAR	39,809		11/21/19		(70,109	)
HSBC Bank USA	TRY	7,677	USD	1,264		12/05/19		(66,310	)
HSBC Bank USA	CNY	19,239	USD	2,703		12/19/19		(25,096	)
HSBC Bank USA	HUF	814,520	EUR	2,476		1/09/20		(525	)
HSBC Bank USA	USD	2,764	HUF	814,520		1/09/20		11,303
HSBC Bank USA	USD	2,750	PLN	10,546		1/09/20		12,071
HSBC Bank USA	USD	6,941	CHF	6,824		1/10/20		14,318
HSBC Bank USA	USD	4,139	CHF	4,057		1/10/20		(4,103	)
HSBC Bank USA	NOK	25,225	EUR	2,462		1/16/20		15,144

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    39

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
HSBC Bank USA	USD	2,706	INR	194,330		1/16/20	$	5,275
JPMorgan Chase Bank, NA	BRL	42,215	USD	10,543		11/04/19		16,825
JPMorgan Chase Bank, NA	USD	10,144	BRL	42,215		11/04/19		382,507
JPMorgan Chase Bank, NA	USD	2,705	COP	9,281,632		11/14/19		39,982
JPMorgan Chase Bank, NA	AUD	12,203	JPY	885,646		11/21/19		(207,146	)
JPMorgan Chase Bank, NA	IDR	48,261,011	USD	3,383		11/21/19		(37,141	)
JPMorgan Chase Bank, NA	USD	1,355	IDR	19,238,175		11/21/19		7,869
JPMorgan Chase Bank, NA	USD	2,066	IDR	29,152,088		11/21/19		(304	)
JPMorgan Chase Bank, NA	TWD	168,546	USD	5,515		11/27/19		(30,631	)
JPMorgan Chase Bank, NA	TRY	7,266	USD	1,208		12/05/19		(51,152	)
JPMorgan Chase Bank, NA	USD	2,685	TRY	15,647		12/05/19		26,918
JPMorgan Chase Bank, NA	CNY	25,277	USD	3,533		12/16/19		(52,559	)
JPMorgan Chase Bank, NA	USD	3,546	CNY	25,277		12/16/19		38,783
Morgan Stanley & Co., Inc.	AUD	11,962	USD	8,093		11/08/19		(154,373	)
Morgan Stanley & Co., Inc.	CLP	977,925	USD	1,373		11/14/19		53,653
Morgan Stanley & Co., Inc.	PEN	25,253	USD	7,456		11/14/19		(92,149	)
Morgan Stanley & Co., Inc.	JPY	9,224,545	USD	85,250		11/18/19		(233,688	)
Morgan Stanley & Co., Inc.	JPY	660,705	USD	6,102		11/21/19		(21,736	)
Morgan Stanley & Co., Inc.	USD	1,360	IDR	19,168,654		11/21/19		(1,820	)
Morgan Stanley & Co., Inc.	USD	4,198	JPY	452,921		11/21/19		294
Morgan Stanley & Co., Inc.	USD	1,353	JPY	144,372		11/21/19		(15,352	)
Morgan Stanley & Co., Inc.	TWD	298,000	USD	9,583		11/27/19		(221,283	)
Morgan Stanley & Co., Inc.	USD	21,625	TWD	672,000		11/27/19		483,743
Morgan Stanley & Co., Inc.	EUR	1,230	TRY	7,917		12/05/19		(2,097	)
Morgan Stanley & Co., Inc.	USD	2,675	TRY	15,719		12/05/19		50,130
Morgan Stanley & Co., Inc.	JPY	556,537	USD	5,146		12/13/19		(20,242	)
Morgan Stanley & Co., Inc.	EUR	10,366	USD	11,626		12/16/19		31,309
Morgan Stanley & Co., Inc.	USD	3,460	GBP	2,666		1/10/20		1,474
Morgan Stanley & Co., Inc.	USD	1,354	TRY	7,905		1/21/20		(262	)
Natwest Markets PLC	BRL	12,604	USD	3,148		11/04/19		5,023
Natwest Markets PLC	USD	3,005	BRL	12,604		11/04/19		137,652
Natwest Markets PLC	CLP	3,478,640	USD	4,790		11/14/19		98,201
Natwest Markets PLC	COP	7,912,500	USD	2,342		11/14/19		1,412
Natwest Markets PLC	COP	4,631,982	USD	1,339		11/14/19		(30,878	)
Natwest Markets PLC	USD	9,133	CLP	6,533,790		11/14/19		(320,603	)
Natwest Markets PLC	USD	2,722	COP	9,219,016		11/14/19		4,397
Natwest Markets PLC	USD	2,775	TWD	85,373		11/27/19		33,797
Natwest Markets PLC	JPY	381,063	USD	3,522		12/13/19		(15,454	)
Natwest Markets PLC	NOK	25,156	USD	2,753		1/08/20		15,665
Natwest Markets PLC	USD	2,709	EUR	2,451		1/08/20		38,186

40    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Natwest Markets PLC	SEK	26,775	EUR	2,472		1/10/20	$	(13,579	)
Natwest Markets PLC	EUR	4,974	USD	5,483		1/16/20		(93,748	)
Standard Chartered Bank	USD	4,477	NZD	7,088		11/07/19		67,879
Standard Chartered Bank	AUD	7,182	USD	4,842		11/08/19		(109,160	)
Standard Chartered Bank	IDR	37,934,119	USD	2,609		11/21/19		(79,302	)
Standard Chartered Bank	GBP	7,266	USD	9,365		1/10/20		(68,682	)
Standard Chartered Bank	USD	5,540	EUR	4,974		1/16/20		36,571
State Street Bank & Trust Co.	NZD	13,607	USD	8,678		11/07/19		(46,760	)
State Street Bank & Trust Co.	USD	14,000	NZD	21,952		11/07/19		75,436
State Street Bank & Trust Co.	USD	265	AUD	392		11/21/19		5,930
State Street Bank & Trust Co.	USD	204	ZAR	3,012		11/21/19		(5,169	)
State Street Bank & Trust Co.	CAD	1,829	USD	1,377		11/22/19		(11,543	)
State Street Bank & Trust Co.	USD	355	TRY	2,038		12/05/19		(1,327	)
State Street Bank & Trust Co.	USD	6,961	EUR	6,195		12/16/19		(32,177	)
State Street Bank & Trust Co.	CNY	24,095	USD	3,404		12/19/19		(12,959	)
State Street Bank & Trust Co.	USD	3,118	CNY	22,069		12/19/19		11,869
State Street Bank & Trust Co.	USD	22,006	MXN	426,194		1/07/20		(61,011	)
State Street Bank & Trust Co.	SEK	12,711	USD	1,322		1/08/20		(205	)
State Street Bank & Trust Co.	CHF	4,451	USD	4,520		1/10/20		(17,347	)
State Street Bank & Trust Co.	USD	79	CHF	77		1/10/20		(99	)
State Street Bank & Trust Co.	EUR	1,493	USD	1,651		1/16/20		(22,621	)
State Street Bank & Trust Co.	THB	89,999	USD	2,982		1/16/20		(770	)
State Street Bank & Trust Co.	USD	8,635	EUR	7,816		1/16/20		127,535
UBS AG	BRL	69,867	USD	17,449		11/04/19		27,845
UBS AG	USD	17,533	BRL	69,867		11/04/19		(111,477	)
UBS AG	AUD	6,213	USD	4,199		11/08/19		(85,129	)
UBS AG	JPY	530,294	AUD	7,157		11/08/19		22,951
UBS AG	JPY	429,611	USD	4,029		11/21/19		46,803
UBS AG	BRL	69,867	USD	17,504		12/03/19		115,216
UBS AG	USD	3,248	NOK	29,668		1/08/20		(19,907	)
UBS AG	CHF	2,712	USD	2,766		1/10/20		1,738
UBS AG	CHF	2,719	USD	2,765		1/10/20		(6,329	)
UBS AG	GBP	11,686	USD	15,190		1/10/20		17,195
UBS AG	GBP	2,666	USD	3,441		1/10/20		(20,196	)
UBS AG	USD	26,920	EUR	24,309		1/16/20		332,668
							$	218,352

CURRENCY OPTIONS WRITTEN (see Note D)

Description/ Counterparty	Exercise Price		Expiration Month		Contracts		Notional Amount (000)		Premiums Received		U.S. $ Value
Put
RUB vs. USD/ Natwest Markets PLC(j)	RUB	68.325		12/2019		1,140,070,950	RUB	1,140,071	$	205,405	$	(26,883	)
RUB vs. USD/ Bank of America, NA(j)	RUB	66.600		01/2020		366,566,400	RUB	366,566		42,177		(41,657	)
TRY vs. USD/ Natwest Markets PLC(j)	TRY	8.200		11/2019		111,331,400	TRY	111,331		358,568		(19	)
									$	606,150	$	(68,559	)

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    41

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

INFLATION (CPI) SWAPS (see Note D)

					Rate Type
Swap Counterparty	Termination Date		Notional Amount (000)		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received		Unrealized Appreciation/ (Depreciation)
Deutsche Bank AG	USD	3/26/25		12,504		2.170	%	CPI#		Maturity	$	(328,497	)
Goldman Sachs International	USD	4/26/27		69,760		2.175	%	CPI#		Maturity		(1,303,053	)
JPMorgan Chase Bank, NA	USD	3/30/25		11,499		2.170	%	CPI#		Maturity		(300,390	)
JPMorgan Chase Bank, NA	USD	4/01/25		76,719		2.170	%	CPI#		Maturity		(2,010,650	)
JPMorgan Chase Bank, NA	USD	8/24/25		222,750		1.718	%	CPI#		Maturity		(429,751	)
JPMorgan Chase Bank, NA	USD	4/26/27		69,760		2.183	%	CPI#		Maturity		(1,328,951	)
											$	(5,701,292	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received			Payment Frequency		Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
Receive Total Return on Reference Obligation
Citibank, NA
Bloomberg Grains Subindex 3 Month Forward		0.15	%		Quarterly		USD	4,163		12/16/19	$	116,602
JPMorgan Chase Bank, NA
Bloomberg Industrial Metals Subindex 3 Month Forward		0.12	%		Quarterly		USD	56,698		12/16/19		(355,682	)
Bloomberg Petroleum Subindex 3 Month Forward		0.11	%		Quarterly		USD	71,912		12/16/19		(7,315,132	)
Bloomberg Precious Metals Subindex		0.08	%		Quarterly		USD	45,543		12/16/19		95,593
Bloomberg Softs Subindex 3 Month Forward		0.18	%		Quarterly		USD	21,382		12/16/19		161,216
Bloomberg Softs Subindex 3 Month Forward		0.18	%		Maturity		USD	1,776		12/16/19		56,434
JPMorgan JMABRF34 Index(1)		0.60	%		Quarterly		USD	38,898		12/16/19		(190,624	)
Morgan Stanley Capital Services LLC
Bloomberg Grains Subindex 3 Month Forward		0.14	%		Quarterly		USD	53,365		12/16/19		1,495,491
Bloomberg Livestock Subindex 3 Month Forward		0.16	%		Quarterly		USD	19,323		12/16/19		908,372
Pay Total Return on Reference Obligation
UBS AG
FTSE EPRA/NAREIT Developed Real Estate Index		3 Month LIBOR Plus 0.80	%		Quarterly		USD	8,878		4/15/20		(132,257	)

42    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Counterparty & Referenced Obligation	Rate Paid/ Received			Payment Frequency		Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
FTSE EPRA/NAREIT Developed Real Estate Index		3 Month LIBOR Plus 0.80	%		Quarterly		USD	17,786		4/15/20	$	(265,407	)
FTSE EPRA/NAREIT Developed Real Estate Index		3 Month LIBOR Plus 0.16	%		Quarterly		USD	89,452		4/15/20		(1,331,654	)
FTSE EPRA/NAREIT Developed Real Estate Index		3 Month LIBOR Plus 0.30	%		Quarterly		USD	13,849		8/17/20		(894,027	)
											$	(7,651,075	)

(a) Represents entire or partial securities out on loan. See Note E for securities lending information.

(b) Non-income producing security.

(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $9,730,083 or 0.8% of net assets.

(d) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(e) Illiquid security.

(f) Fair valued by the Adviser.

(g) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov. Additionally, shareholder reports for AB funds can be obtained by calling AB at (800)227-4618.

(h) Affiliated investments.

(i) The rate shown represents the7-day yield as of period end.

(j) One contract relates to 1 share.

Currency Abbreviations:   AUD – Australian Dollar BRL – Brazilian Real CAD – Canadian Dollar CHF – Swiss Franc CLP – Chilean Peso CNY – Chinese Yuan Renminbi COP – Colombian Peso CZK – Czech Koruna EUR – Euro GBP – Great British Pound HKD – Hong Kong Dollar HUF – Hungarian Forint IDR – Indonesian Rupiah ILS – Israeli Shekel INR – Indian Rupee JPY – Japanese Yen KRW – South Korean Won MXN – Mexican Peso MYR – Malaysian Ringgit NOK – Norwegian Krone NZD – New Zealand Dollar PEN – Peruvian Sol PHP – Philippine Peso PLN – Polish Zloty RUB – Russian Ruble SEK – Swedish Krona SGD – Singapore Dollar THB – Thailand Baht TRY – Turkish Lira TWD – New Taiwan Dollar USD – United States Dollar ZAR – South African Rand

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    43

CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Glossary:

ADR – American Depositary Receipt

CBT – Chicago Board of Trade

CPI – Consumer Price Index

EPRA – European Public Real Estate Association

ETF – Exchange Traded Fund

FTSE – Financial Times Stock Exchange

GDR – Global Depositary Receipt

KC HRW – Kansas City Hard Red Winter

LIBOR – London Interbank Offered Rates

LME – London Metal Exchange

MSCI – Morgan Stanley Capital International

NAREIT – National Association of Real Estate Investment Trusts

OSE – Osaka Securities Exchange

PJSC – Public Joint Stock Company

RBOB – Reformulated Gasoline Blend-Stock for Oxygen Blending (Unleaded Gas)

REIT – Real Estate Investment Trust

ULSD –Ultra-Low Sulfur Diesel

WTI – West Texas Intermediate

(1) The following table represents the largest (long/(short)) basket holdings underlying the total return swap with JPMorgan JMABRF34 Index as of October 31, 2019.

Security Description	Current Notional			Percent of Basket’s Value
LME Zinc Futures 1/20	$	(8,447,542	)		(21.7	)%
LME Zinc Futures 5/20		8,394,766			21.6	%
Cotton No. 2 Futures 5/20		8,364,955			21.5	%
Live Cattle Futures 12/19		(8,316,032	)		(21.4	)%
Soybean Oil Futures 5/20		8,293,657			21.3	%
Soybean Oil futures 1/20		(8,289,953	)		(21.3	)%
Cotton No. 2 Futures 12/19		(8,233,135	)		(21.2	)%
Gasoline RBOB Futures 1/20		(8,163,442	)		(21.0	)%
Live Cattle Futures 4/20		8,145,961			20.9	%
Natural Gas Futures 1/20		(8,102,393	)		(20.8	)%
Gasoline RBOB Futures 5/20		8,041,995			20.7	%
Copper Futures 12/19		(8,026,886	)		(20.6	)%
Copper Futures 5/20		8,021,450			20.6	%
WTI Crude Futures 5/20		7,998,293			20.6	%
Brent Crude Futures 1/20		(7,985,290	)		(20.5	)%
Wheat Futures (CBT) 12/19		(7,947,301	)		(20.4	)%
KC HRW Wheat Futures 12/19		(7,947,272	)		(20.4	)%
KC HRW Wheat Futures 5/20		7,936,607			20.4	%
Wheat Futures (CBT) 5/20		7,924,662			20.4	%
WTI Crude Futures 1/20		(7,899,064	)		(20.3	)%
LME PRI Aluminum Futures 1/20		(7,883,742	)		(20.3	)%
Brent Crude Futures 5/20		7,882,799			20.3	%
Natural Gas Futures 5/20		7,882,574			20.3	%
LME PRI Aluminum Futures 5/20		7,853,196			20.2	%
Soybean Futures 5/20		7,847,765			20.2	%
Coffee ‘C’ Futures 12/19		(7,837,195	)		(20.1	)%
Coffee ‘C’ Futures 5/20		7,812,887			20.1	%
NY Harbor ULSD Futures 1/20		(7,811,499	)		(20.1	)%
NY Harbor ULSD Futures 5/20		7,788,612			20.0	%
Soybean Futures 1/20		(7,778,270	)		(20.0	)%
Corn Futures 12/19		(7,741,448	)		(19.9	)%

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CONSOLIDATED PORTFOLIO OF INVESTMENTS(continued)

Security Description	Current Notional			Percent of Basket’s Value
Soybean Meal Futures 5/20	$	7,718,919			19.8	%
Soybean Meal Futures 1/20		(7,679,673	)		(19.7	)%
Corn Futures 5/20		7,666,488			19.7	%
Lean Hogs Futures 4/20		7,607,667			19.6	%
Sugar #11 (World) Futures 5/20		7,552,836			19.4	%
Sugar #11 (World) Futures 3/20		(7,549,115	)		(19.4	)%
LME Nickel Futures 5/20		7,546,041			19.4	%
LME Nickel Futures 1/20		(7,517,500	)		(19.3	)%
Lean Hogs Futures 12/19		(7,353,756	)		(18.9	)%

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    45

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,045,901,698)	$	1,090,268,262	(a)
Affiliated issuers (cost $32,293,967—including investment of cash collateral for securities loaned of $9,973,544)		32,293,967
Cash		954,710
Cash collateral due from broker		46,478,004
Foreign currencies, at value (cost $7,747,367)		7,782,817
Unrealized appreciation on forward currency exchange contracts		12,828,671
Receivable for investment securities sold		3,294,355
Unrealized appreciation on total return swaps		2,833,708
Unaffiliated dividends and interest receivable		1,636,576
Receivable for capital stock sold		854,040
Affiliated dividends receivable		69,851
Total assets		1,199,294,961
Liabilities
Options written, at value (premiums received $606,150)		68,559
Unrealized depreciation on forward currency exchange contracts		12,610,319
Unrealized depreciation on total return swaps		10,484,783
Payable for collateral received on securities loaned		9,973,544
Unrealized depreciation on inflation swaps		5,701,292
Payable for investment securities purchased and foreign currency transactions		4,910,934
Payable for variation margin on futures		1,350,867
Cash collateral due to broker		990,000
Advisory fee payable		715,517
Payable for capital stock redeemed		367,200
Distribution fee payable		131,136
Administrative fee payable		25,139
Transfer Agent fee payable		21,474
Directors’ fees payable		1,936
Accrued expenses and other liabilities		242,419
Total liabilities		47,595,119
Net Assets	$	1,151,699,842
Composition of Net Assets
Capital stock, at par	$	134,810
Additionalpaid-in capital		1,191,011,871
Accumulated loss		(39,446,839	)
	$	1,151,699,842

(a) Includes securities on loan with a value of $19,521,151 (see Note E).

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES(continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	10,633,853		1,228,548	$	8.66	*
C	$	753,605		87,284	$	8.63
Advisor	$	18,610,710		2,155,857	$	8.63
R	$	271,119		31,769	$	8.53
K	$	2,069,440		242,129	$	8.55
I	$	23,540,565		2,744,112	$	8.58
1	$	608,485,592		71,522,366	$	8.51
2	$	8,709		1,000	$	8.71
Z	$	487,326,249		56,797,104	$	8.58

* The maximum offering price per share for Class A shares was $9.04 which reflects a sales charge of 4.25%.

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    47

CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $1,322,537)	$	29,494,916
Affiliated issuers		2,743,353
Interest (net of foreign taxes withheld of $8,486)		2,183,821
Securities lending income		45,697		$	34,467,787
Expenses
Advisory fee (see Note B)		9,505,943
Distribution fee—Class A		27,124
Distribution fee—Class C		10,046
Distribution fee—Class R		1,328
Distribution fee—Class K		5,830
Distribution fee—Class 1		1,532,411
Transfer agency—Class A		25,942
Transfer agency—Class C		2,427
Transfer agency—Advisor Class		48,251
Transfer agency—Class R		633
Transfer agency—Class K		4,628
Transfer agency—Class I		3,927
Transfer agency—Class 1		99,874
Transfer agency—Class Z		125,836
Custodian		440,922
Audit and tax		134,565
Registration fees		98,423
Administrative		83,276
Legal		50,029
Printing		49,482
Directors’ fees		23,131
Miscellaneous		70,347
Total expenses before bank overdraft expense		12,344,375
Bank overdraft expense		102,432
Total expenses		12,446,807
Less: expenses waived and reimbursed by the Adviser (see Notes B & E)		(116,770	)
Net expenses					12,330,037
Net investment income					22,137,750

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENT OF OPERATIONS(continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	(27,176,087	)
Forward currency exchange contracts		5,370,654
Futures		(10,940,263	)
Options written		381,380
Swaps		(32,376,559	)
Foreign currency transactions		4,848,597
Net change in unrealized appreciation/depreciation of:
Investments		92,109,015
Forward currency exchange contracts		(3,333,931	)
Futures		(1,167,201	)
Options written		(1,937,327	)
Swaps		(11,258,370	)
Foreign currency denominated assets and liabilities		69,742
Net gain on investment and foreign currency transactions		14,589,650
Net Increase in Net Assets from Operations	$	36,727,400

(a) Net of foreign capital gains taxes of $10,142.

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	22,137,750		$	29,830,198
Net realized gain (loss) on investment and foreign currency transactions		(59,892,278	)		7,787,077
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		74,481,928			(110,625,061	)
Net increase (decrease) in net assets from operations		36,727,400			(73,007,786	)
Distributions to Shareholders
Class A		(155,536	)		(364,713	)
Class C		(4,520	)		(34,800	)
Advisor Class		(407,794	)		(929,574	)
Class R		(2,749	)		(9,053	)
Class K		(33,957	)		(75,813	)
Class I		(296,068	)		(431,253	)
Class 1		(10,161,406	)		(21,767,349	)
Class 2		(157	)		(317	)
Class Z		(13,581,524	)		(18,426,298	)
Capital Stock Transactions
Net increase (decrease)		(569,837,468	)		421,628,704
Total increase (decrease)		(557,753,779	)		306,581,748
Net Assets
Beginning of period		1,709,453,621			1,402,871,873
End of period	$	1,151,699,842		$	1,709,453,621

See notes to consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB All Market Real Return Portfolio (the “Fund”), a diversified portfolio. As part of the Fund’s investment strategy, the Fund seeks to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in awinding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary. As of October 31, 2019, consolidated net assets of the Fund were $1,151,699,842, of which $69,767,318, or 6%, represented the Fund’s ownership of all issued shares and voting rights of the Subsidiary. This report presents the consolidated financial statements of the Fund and the Subsidiary. All intercompany transactions and balances have been eliminated in consolidation. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, Class Z, and Class T shares. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. As of October 31, 2019, AllianceBernstein L.P. (the “Adviser”), was the sole shareholder of Class 2 shares. Class A shares are sold with afront-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, Class 1, and Class Z shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, and Class 2 shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the consolidated financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:	Level 1		Level 2		Level 3			Total
Assets:
Common Stocks:
Real Estate	$	286,316,814	$	168,496,122	$	– 0	–	$	454,812,936
Energy		52,026,858		75,235,234		– 0	–		127,262,092
Materials		24,312,950		34,570,765		0	(a)		58,883,715
Software & Services		22,639,586		757,114		– 0	–		23,396,700
Pharmaceuticals & Biotechnology		14,018,413		8,409,648		– 0	–		22,428,061
Food Beverage & Tobacco		10,469,238		4,789,103		– 0	–		15,258,341
Retailing		8,925,419		4,160,133		– 0	–		13,085,552
Utilities		5,816,643		6,834,502		– 0	–		12,651,145
Transportation		3,813,260		7,779,143		– 0	–		11,592,403
Consumer Durables & Apparel		7,496,637		3,814,496		0	(a)		11,311,133
Media & Entertainment		8,849,277		574,740		– 0	–		9,424,017
Banks		6,223,239		3,066,393		– 0	–		9,289,632
Diversified Financials		8,080,493		907,476		– 0	–		8,987,969
Health Care Equipment & Services		6,091,488		2,230,839		– 0	–		8,322,327
Food & Staples Retailing		3,838,168		3,907,239		– 0	–		7,745,407
Capital Goods		2,610,534		5,010,066		– 0	–		7,620,600
Insurance		4,349,636		2,554,932		– 0	–		6,904,568
Semiconductors & Semiconductor Equipment		5,876,951		931,954		– 0	–		6,808,905
Consumer Services		4,612,763		1,700,549		– 0	–		6,313,312

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Telecommunication Services

$

2,866,339

$

3,328,701

$

– 0

–

$

6,195,040

Commercial & Professional Services

3,137,733

2,197,713

– 0

–

5,335,446

Technology Hardware & Equipment

4,381,273

850,952

– 0

–

5,232,225

Household & Personal Products

2,203,766

2,645,691

– 0

–

4,849,457

Automobiles & Components

1,928,516

1,079,547

– 0

–

3,008,063

Inflation-Linked Securities

– 0

–

81,404,321

– 0

–

81,404,321

Investment Companies

56,756,028

– 0

–

– 0

–

56,756,028

Short-Term Investments:

Governments – Treasuries

– 0

–

85,393,617

– 0

–

85,393,617

Investment Companies

22,320,423

– 0

–

– 0

–

22,320,423

U.S. Treasury Bills

– 0

–

19,995,250

– 0

–

19,995,250

Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund

9,973,544

– 0

–

– 0

–

9,973,544

Total Investments in Securities

589,935,989

532,626,240

(b)

– 0

–

1,122,562,229

Other Financial Instruments(c):

Assets:

Futures

2,646,996

– 0

–

– 0

–

2,646,996

(d)

Forward Currency Exchange Contracts

– 0

–

12,828,671

– 0

–

12,828,671

Total Return Swaps

– 0

–

2,833,708

– 0

–

2,833,708

Liabilities:

Futures

(1,492,579

)

– 0

–

– 0

–

(1,492,579

)(d)

Forward Currency Exchange Contracts

– 0

–

(12,610,319

)

– 0

–

(12,610,319

)

Currency Options Written

– 0

–

(68,559

)

– 0

–

(68,559

)

Inflation (CPI) Swaps

– 0

–

(5,701,292

)

– 0

–

(5,701,292

)

Total Return Swaps

– 0

–

(10,484,783

)

– 0

–

(10,484,783

)

Total

$

591,090,406

$

519,423,666

$

– 0

–

$

1,110,514,072

(a) The Fund held securities with zero market value at period end.

(b) A significant portion of the Fund’s foreign equity investments are categorized as Level 2 investments since they are valued using fair value prices based on third party vendor modeling tools to the extent available, see Note A.1.

(c) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(d) Only variation margin receivable/(payable) at period end is reported within the consolidated statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

If, during a taxable year, the Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for Federal income tax purposes. Note that the loss from the Subsidiary’s contemplated activities also cannot be carried forward to reduce future Subsidiary’s income in subsequent years. However, if the Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Fund as income for Federal income tax purposes.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

and has concluded that no provision for income tax is required in the Fund’s consolidated financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the Fund’s average daily net assets. The Adviser agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the “Expense Caps”) to 1.30%, 2.05%, 1.05%, 1.55%, 1.30%, 1.05%, 1.30%, 1.05% and 1.05% of daily average net assets for Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2 and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2020. For the year ended October 31, 2019, such reimbursement amounted to $4,118.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

The Subsidiary has entered into a separate agreement with the Adviser for the management of the Subsidiary’s portfolio. The Adviser receives no compensation from the Subsidiary for its services under the agreement.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the reimbursement for such services amounted to $83,276.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $233,180 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales charges of $32 from the sale of Class A shares and received $0 and $5 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $108,602.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2019 is as follows:

Fund	Market Value 10/31/18 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	105,547	$	1,246,698	$	1,329,925	$	22,320	$	2,473
Government Money Market Portfolio*		17,530		397,400		404,956		9,974		270
Total							$	32,294	$	2,743

* Investments of cash collateral for securities lending transactions (see Note E).

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to AllianceBernstein Investments, Inc. (the “Distributor”) at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .25% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Plan in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $158,901, $16,297, $19,775 and $1,951,054 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	1,109,349,251	$	1,534,283,250
U.S. government securities		6,923,127		240,450,602

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,309,684,967
Gross unrealized appreciation	$	113,719,248
Gross unrealized depreciation		(274,470,320	)
Net unrealized depreciation	$	(160,751,072	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon fornon-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the consolidated statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the consolidated statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

During the year ended October 31, 2019, the Fund held futures for hedging andnon-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2019, the Fund held forward currency exchange contracts for hedging andnon-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges andover-the-counter markets. Among other things, the Fund may use options transactions fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

During the year ended October 31, 2019, the Fund held purchased options for hedging andnon-hedging purposes. During the year ended October 31, 2019, the Fund held written options for hedging andnon-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps fornon-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the consolidated statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the consolidated statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the consolidated statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the consolidated statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the consolidated statement of operations.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2019, the Fund held inflation (CPI) swaps for hedging andnon-hedging purposes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2019, the Fund held total return swaps for hedging andnon-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	396,003	*
Equity contracts	Receivable/Payable for variation margin on futures		162,667	*	Receivable/Payable for variation margin on futures	$	408,220	*
Commodity contracts	Receivable/Payable for variation margin on futures		2,088,326	*	Receivable/Payable for variation margin on futures		1,084,359	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		12,828,671		Unrealized depreciation on forward currency exchange contracts		12,610,319
Foreign exchange contracts					Options written, at value		68,559
Interest rate contracts					Unrealized depreciation on inflation swaps		5,701,292
Commodity contracts	Unrealized appreciation on total return swaps		2,833,708		Unrealized depreciation on total return swaps		7,861,438
Equity contracts					Unrealized depreciation on total return swaps		2,623,345
Total		$	18,309,375			$	30,357,532

* Only variation margin receivable/payable at period end is reported within the consolidated statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated Statement  of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	(8,914,791	)	$	545,527
Equity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		(3,964,523	)		(245,553	)
Commodity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		1,939,051			(1,467,175	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		5,370,654			(3,333,931	)
Foreign exchange contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(4,400,971	)		(718,853	)
Equity contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(2,581,322	)		(1,290,829	)
Foreign exchange contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		3,882,519			(717,978	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated Statement  of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written	$	(3,501,139	)	$	(1,219,349	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(5,042,533	)		(4,718,936	)
Commodity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(22,763,666	)		(3,916,089	)
Equity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(4,570,360	)		(2,623,345	)
Total		$	(44,547,081	)	$	(19,706,511	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	130,128,255
Average notional amount of sale contracts	$	178,774,620
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	880,478,726
Average principal amount of sale contracts	$	1,016,702,687
Purchased Options:
Average notional amount	$	185,456,524	(a)
Options Written:
Average notional amount	$	223,981,927
Inflation Swaps:
Average notional amount	$	408,057,385
Total Return Swaps:
Average notional amount	$	457,699,005

(a) Positions were open for eleven months during the year.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the consolidated statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

AB All Market Real Return Portfolio

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

Australia and New Zealand Banking Group Ltd.

$

933,809

$

(784,771

)

$

– 0

–

$

– 0

–

$

149,038

Bank of America, NA

57,336

(57,336

)

– 0

–

– 0

–

– 0

–

Barclays Bank PLC

1,682,839

(1,682,839

)

– 0

–

– 0

–

– 0

–

BNP Paribas SA

1,525,229

(1,525,229

)

– 0

–

– 0

–

– 0

–

Citibank, NA

2,169,099

(1,693,364

)

– 0

–

– 0

–

475,735

Credit Suisse International

2,163,189

(1,048,926

)

(700,000

)

– 0

–

414,263

Deutsche Bank AG

12,468

(12,468

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

1,790,866

(1,790,866

)

– 0

–

– 0

–

– 0

–

HSBC Bank USA

136,380

(136,380

)

– 0

–

– 0

–

– 0

–

JPMorgan Chase Bank, NA

474,101

(474,101

)

– 0

–

– 0

–

– 0

–

Morgan Stanley & Co., Inc

589,294

(589,294

)

– 0

–

– 0

–

– 0

–

Natwest Markets PLC

334,333

(334,333

)

– 0

–

– 0

–

– 0

–

Standard Chartered Bank

104,450

(104,450

)

– 0

–

– 0

–

– 0

–

State Street Bank & Trust Co.

220,770

(179,811

)

– 0

–

– 0

–

40,959

UBS AG

564,416

(564,416

)

– 0

–

– 0

–

– 0

–

Total

$

12,758,579

$

(10,978,584

)

$

(700,000

)

$

– 0

–

$

1,079,995

^

70    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Australia and New Zealand Banking Group Ltd.	$	784,771	$	(784,771	)	$	– 0	–	$	– 0	–	$	– 0	–
Bank of America, NA		243,304		(57,336	)		– 0	–		– 0	–		185,968
Barclays Bank PLC		1,789,631		(1,682,839	)		– 0	–		– 0	–		106,792
BNP Paribas SA		2,847,327		(1,525,229	)		– 0	–		– 0	–		1,322,098
Citibank, NA		1,693,364		(1,693,364	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		1,048,926		(1,048,926	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		328,497		(12,468	)		(316,029	)		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		2,831,418		(1,790,866	)		(1,040,552	)		– 0	–		– 0	–
HSBC Bank USA		386,615		(136,380	)		– 0	–		– 0	–		250,235
JPMorgan Chase Bank, NA		4,396,116		(474,101	)		(3,520,000	)		– 0	–		402,015
Morgan Stanley & Co., Inc.		763,002		(589,294	)		– 0	–		– 0	–		173,708
Natwest Markets PLC		501,164		(334,333	)		– 0	–		– 0	–		166,831
Standard Chartered Bank		257,144		(104,450	)		– 0	–		– 0	–		152,694
State Street Bank & Trust Co.		179,811		(179,811	)		– 0	–		– 0	–		– 0	–
UBS AG		2,866,383		(564,416	)		(2,301,967	)		– 0	–		– 0	–
Total	$	20,917,473	$	(10,978,584	)	$	(7,178,548	)	$	– 0	–	$	2,760,341	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

AllianceBernstein Cayman Inflation Strategy, Ltd.

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

Citibank, NA

$

116,602

$

– 0

–

$

– 0

–

$

– 0

–

$

116,602

JPMorgan Chase Bank, NA

352,026

(352,026

)

– 0

–

– 0

–

– 0

–

Morgan Stanley & Co., Inc./Morgan Stanley Capital Services LLC

2,435,172

– 0

–

– 0

–

– 0

–

2,435,172

Total

$

2,903,800

$

(352,026

)

$

��� 0

–

$

– 0

–

$

2,551,774

^

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    71

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Barclays Bank PLC	$	1,306	$	– 0	–	$	– 0	–	$	– 0	–	$	1,306
JPMorgan Chase Bank, NA		7,913,997		(352,026	)		(7,561,971	)		– 0	–		– 0	–
State Street Bank & Trust Co.		32,177		– 0	–		– 0	–		– 0	–		32,177
Total	$	7,947,480	$	(352,026	)	$	(7,561,971	)	$	– 0	–	$	33,483	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest innon-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

NOTE E

Securities Lending

The Fund may enter into securities lending transactions. Under the Fund’s securities lending program, all loans of securities will be collateralized continually by cash collateral and/ornon-cash collateral.Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge anynon-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

the Fund receivesnon-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any income or other distributions from the securities. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the consolidated statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the consolidated statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund’s share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund’s transactions surrounding securities lending for the year ended October 31, 2019 is as follows:

								Government Money Market Portfolio
Market Value of Securities on Loan*		Cash Collateral*		Market Value of Non-Cash Collateral*		Income from Borrowers		Income Earned		Advisory Fee Waived
$	19,521,151	$	9,973,544	$	10,560,523	$	45,697	$	270,097	$	4,050

* As of October 31, 2019.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

NOTE F

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		88,868			185,393		$	747,515		$	1,700,425
Shares issued in reinvestment of dividends		18,167			37,934			148,059			330,783
Shares converted from Class C		11,207			1,471			93,211			13,244
Shares redeemed		(235,310	)		(206,436	)		(1,954,142	)		(1,859,480	)
Net increase (decrease)		(117,068	)		18,362		$	(965,357	)	$	184,972
Class C
Shares sold		167			3,477		$	1,393		$	31,579
Shares issued in reinvestment of dividends		478			3,549			3,914			30,973
Shares converted to Class A		(11,204	)		(1,471	)		(93,211	)		(13,244	)
Shares redeemed		(46,500	)		(65,084	)		(390,586	)		(583,217	)
Net decrease		(57,059	)		(59,529	)	$	(478,490	)	$	(533,909	)
Advisor Class
Shares sold		440,752			314,220		$	3,703,318		$	2,817,286
Shares issued in reinvestment of dividends		41,667			83,713			337,917			726,628
Shares redeemed		(1,385,151	)		(452,667	)		(11,502,566	)		(4,056,076	)
Net decrease		(902,732	)		(54,734	)	$	(7,461,331	)	$	(512,162	)
Class R
Shares sold		6,000			12,047		$	49,723		$	106,908
Shares issued in reinvestment of dividends		341			1,051			2,749			9,053
Shares redeemed		(6,884	)		(8,026	)		(57,094	)		(69,814	)
Net increase (decrease)		(543	)		5,072		$	(4,622	)	$	46,147

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class K
Shares sold		42,717			96,940		$	354,929		$	855,707
Shares issued in reinvestment of dividends		4,218			8,805			33,957			75,813
Shares redeemed		(113,920	)		(53,920	)		(944,442	)		(474,140	)
Net increase (decrease)		(66,985	)		51,825		$	(555,556	)	$	457,380
Class I
Shares sold		1,387,415			86,550		$	11,593,309		$	767,698
Shares issued in reinvestment of dividends		36,824			50,087			296,068			431,253
Shares redeemed		(124,079	)		(589,045	)		(1,046,283	)		(5,253,410	)
Net increase (decrease)		1,300,160			(452,408	)	$	10,843,094		$	(4,054,459	)
Class 1
Shares sold		8,874,111			11,945,265		$	73,005,826		$	105,428,597
Shares issued in reinvestment of dividends		1,016,698			2,141,761			8,123,413			18,333,476
Shares redeemed		(14,897,881	)		(11,665,113	)		(122,185,527	)		(103,089,485	)
Net increase (decrease)		(5,007,072	)		2,421,913		$	(41,056,288	)	$	20,672,588
Class Z
Shares sold		315,577			103,611,910		$	2,604,947		$	952,574,384
Shares issued in reinvestment of dividends		1,687,146			2,140,104			13,581,524			18,426,298
Shares redeemed		(65,030,200	)		(64,369,383	)		(546,345,389	)		(565,632,535	)
Net increase (decrease)		(63,027,477	)		41,382,631		$	(530,158,918	)	$	405,368,147

There were no transactions in capital shares for Class 2 for the year ended October 31, 2019 and the year ended October 31, 2018.

At October 31, 2019, certain AB mutual funds owned approximately 35% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    75

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

NOTE G

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Commodity Risk—Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the consolidated statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options

76    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Foreign(Non-U.S.) Risk—Investments in securities ofnon-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Subsidiary Risk—By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

Real Estate Risk—The Fund’s investments in the real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in real estate investment trusts, or “REITs”, may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Non-Diversification Risk—The Fund may have more risk because it is“non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value, or NAV.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE H

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the consolidated statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

NOTE I

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	24,643,711	$	42,039,170
Total distributions paid	$	24,643,711	$	42,039,170

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	17,521,607
Accumulated capital and other losses		(73,587,186	)(a)
Unrealized appreciation/(depreciation)		(160,719,700	)(b)
Total accumulated earnings/(deficit)	$	(216,785,279	)(c)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $73,587,186. The Fund also had $6,012,702 of capital loss carryforwards expire during the fiscal year.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of earnings from the Subsidiary, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(continued)

Fund had a net short-term capital loss carryforward of $72,547,171 and a net long-term capital loss carryforward of $1,040,015, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to book/tax differences associated with the treatment of earnings from the Subsidiary and the expiration of capital loss carryforwards resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE J

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the consolidated financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the consolidated financial statements of the Fund.

NOTE K

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the consolidated financial statements through the date the consolidated financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s consolidated financial statements through this date.

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CONSOLIDATED FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.53			$  8.90			$  8.24			$  8.13			$  10.52
Income From Investment Operations
Net investment income(a)(b)		.12			.14			.09			.10			.06
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			(.23	)		.76			.11			(2.26	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.25			(.09	)		.85			.21			(2.20	)
Less: Dividends
Dividends from net investment income		(.12	)		(.28	)		(.19	)		(.10	)		(.19	)
Net asset value, end of period		$  8.66			$  8.53			$  8.90			$  8.24			$  8.13
Total Return
Total investment return based on net asset value(d)*		2.97	%		(1.11	)%		10.45	%		2.75	%		(21.16	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10,634			$11,478			$11,819			$13,682			$16,611
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.30	%		1.26	%		1.27	%		1.30	%		1.30	%
Expenses, before waivers/reimbursements(e)(f)‡		1.32	%		1.27	%		1.28	%		1.36	%		1.47	%
Net investment income(b)		1.42	%		1.52	%		1.05	%		1.23	%		.62	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.49			$  8.83			$  8.17			$  8.03			$  10.40
Income From Investment Operations
Net investment income (loss)(a)(b)		.06			.07			.02			.04			(.01	)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.11			(.23	)		.76			.12			(2.23	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.17			(.16	)		.78			.16			(2.24	)
Less: Dividends
Dividends from net investment income		(.03	)		(.18	)		(.12	)		(.02	)		(.13	)
Net asset value, end of period		$  8.63			$  8.49			$  8.83			$  8.17			$  8.03
Total Return
Total investment return based on net asset value(d)*		2.05	%††		(1.82	)%		9.73	%		2.07	%††		(21.75	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$754			$1,225			$1,801			$2,814			$4,202
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		2.05	%		2.01	%		2.02	%		2.03	%		2.00	%
Expenses, before waivers/reimbursements(e)(f)‡		2.07	%		2.02	%		2.03	%		2.11	%		2.16	%
Net investment income (loss)(b)		.66	%		.78	%		.27	%		.51	%		(.07	)%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.51			$  8.89			$  8.22			$  8.13			$  10.56
Income From Investment Operations
Net investment income(a)(b)		.14			.16			.11			.12			.09
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.12			(.24	)		.77			.11			(2.27	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.26			(.08	)		.88			.23			(2.18	)
Less: Dividends
Dividends from net investment income		(.14	)		(.30	)		(.21	)		(.14	)		(.25	)
Net asset value, end of period		$  8.63			$  8.51			$  8.89			$  8.22			$  8.13
Total Return
Total investment return based on net asset value(d)*		3.15	%		(.96	)%		10.87	%		3.00	%		(20.95	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$18,611			$26,030			$27,670			$25,307			$30,541
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.05	%		1.01	%		1.02	%		1.04	%		1.00	%
Expenses, before waivers/reimbursements(e)(f)‡		1.07	%		1.02	%		1.02	%		1.10	%		1.17	%
Net investment income(b)		1.66	%		1.77	%		1.31	%		1.51	%		.95	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.40			$  8.79			$  8.14			$  8.06			$  10.51
Income From Investment Operations
Net investment income(a)(b)		.10			.11			.07			.07			.04
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.11			(.23	)		.76			.11			(2.24	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.21			(.12	)		.83			.18			(2.20	)
Less: Dividends
Dividends from net investment income		(.08	)		(.27	)		(.18	)		(.10	)		(.25	)
Net asset value, end of period		$  8.53			$  8.40			$  8.79			$  8.14			$  8.06
Total Return
Total investment return based on net asset value(d)*		2.62	%		(1.47	)%		10.29	%		2.41	%††		(21.37	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$271			$271			$239			$201			$162
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.55	%		1.55	%		1.54	%		1.54	%		1.50	%
Expenses, before waivers/reimbursements(e)(f)‡		1.57	%		1.58	%		1.60	%		1.66	%		1.64	%
Net investment income(b)		1.16	%		1.24	%		.81	%		.91	%		.42	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.42			$  8.80			$  8.15			$  8.07			$  10.50
Income From Investment Operations
Net investment income(a)(b)		.12			.13			.09			.10			.06
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			(.23	)		.75			.11			(2.25	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.25			(.10	)		.84			.21			(2.19	)
Less: Dividends
Dividends from net investment income		(.12	)		(.28	)		(.19	)		(.13	)		(.24	)
Net asset value, end of period		$  8.55			$  8.42			$  8.80			$  8.15			$  8.07
Total Return
Total investment return based on net asset value(d)*		3.03	%		(1.20	)%		10.48	%		2.81	%		(21.19	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,069			$2,604			$2,265			$1,888			$1,668
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.27	%		1.26	%		1.28	%		1.29	%		1.25	%
Expenses, before waivers/reimbursements(e)(f)‡		1.28	%		1.27	%		1.29	%		1.35	%		1.34	%
Net investment income(b)		1.44	%		1.52	%		1.05	%		1.23	%		.67	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.46			$  8.83			$  8.17			$  8.11			$  10.54
Income From Investment Operations
Net investment income(a)		.15	(b)		.17	(b)		.12	(b)		.12	(b)		.09
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			(.22	)		.77			.11			(2.25	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.28			(.05	)		.89			.23			(2.16	)
Less: Dividends
Dividends from net investment income		(.16	)		(.32	)		(.23	)		(.17	)		(.27	)
Net asset value, end of period		$  8.58			$  8.46			$  8.83			$  8.17			$  8.11
Total Return
Total investment return based on net asset value(d)*		3.39	%		(.69	)%		10.98	%		3.03	%††		(20.97	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$23,541			$12,213			$16,753			$15,646			$14,508
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.85	%		.83	%		.85	%		.91	%		.96	%
Expenses, before waivers/reimbursements(e)(f)‡		.86	%		.84	%		.86	%		.92	%		.96	%
Net investment income		1.79	%(b)		1.96	%(b)		1.48	%(b)		1.61	%(b)		.99	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.39			$  8.76			$  8.11			$  8.05			$  10.46
Income From Investment Operations
Net investment income(a)		.13	(b)		.15	(b)		.10	(b)		.11	(b)		.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.12			(.22	)		.76			.10			(2.24	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.25			(.07	)		.86			.21			(2.17	)
Less: Dividends
Dividends from net investment income		(.13	)		(.30	)		(.21	)		(.15	)		(.24	)
Net asset value, end of period		$  8.51			$  8.39			$  8.76			$  8.11			$  8.05
Total Return
Total investment return based on net asset value(d)*		3.14	%		(.92	)%		10.69	%		2.82	%††		(21.12	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$608,485			$641,891			$649,421			$505,143			$474,631
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.09	%		1.08	%		1.09	%		1.15	%		1.16	%
Expenses, before waivers/reimbursements(e)(f)‡		1.10	%		1.08	%		1.10	%		1.16	%		1.16	%
Net investment income		1.62	%(b)		1.71	%(b)		1.24	%(b)		1.38	%(b)		.79	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.58			$  8.96			$  8.29			$  8.22			$  10.68
Income From Investment Operations
Net investment income(a)		.16	(b)		.18	(b)		.13	(b)		.13	(b)		.09
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			(.24	)		.77			.11			(2.28	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.29			(.06	)		.90			.24			(2.19	)
Less: Dividends
Dividends from net investment income		(.16	)		(.32	)		(.23	)		(.17	)		(.27	)
Net asset value, end of period		$  8.71			$  8.58			$  8.96			$  8.29			$  8.22
Total Return
Total investment return based on net asset value(d)*		3.46	%		(.77	)%		10.96	%		3.17	%		(20.85	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$9			$9			$9			$8			$8
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.81	%		.82	%		.82	%		.90	%		.92	%
Expenses, before waivers/reimbursements(e)(f)‡		.81	%		.82	%		.83	%		.90	%		.92	%
Net investment income		1.90	%(b)		1.95	%(b)		1.50	%(b)		1.60	%(b)		.92	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  8.46			$  8.83			$  8.17			$  8.11			$  10.55
Income From Investment Operations
Net investment income(a)		.16	(b)		.17	(b)		.13	(b)		.12	(b)		.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.12			(.22	)		.76			.11			(2.24	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		.28			(.05	)		.89			.23			(2.17	)
Less: Dividends
Dividends from net investment income		(.16	)		(.32	)		(.23	)		(.17	)		(.27	)
Net asset value, end of period		$  8.58			$  8.46			$  8.83			$  8.17			$  8.11
Total Return
Total investment return based on net asset value(d)*		3.37	%		(.68	)%		10.98	%		3.09	%		(20.94	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$487,326			$1,013,733			$692,895			$8,634			$3,166
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.84	%		.83	%		.82	%		.92	%		.96	%
Expenses, before waivers/reimbursements(e)(f)‡		.85	%		.84	%		.83	%		.92	%		.96	%
Net investment income		1.89	%(b)		1.86	%(b)		1.60	%(b)		1.56	%(b)		.92	%
Portfolio turnover rate		100	%		141	%		123	%		119	%		53	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.02	%		.03	%		.04	%		.02	%		.00	%

See footnote summary on pages 90-91.

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CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended October 31, 2019, October 31, 2018 and October 31, 2017, such waiver amounted to .01%, .01% and .01%, respectively.

(f) The expense ratios presented below exclude interest/bank overdraft expense:

	Year Ended October 31,
	2019			2018		2017		2016		2015
Class A
Net of waivers/reimbursements		1.29	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.32	%		N/A		N/A		N/A		N/A
Class C
Net of waivers/reimbursements		2.04	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		2.07	%		N/A		N/A		N/A		N/A
Advisor Class
Net of waivers/reimbursements		1.04	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.06	%		N/A		N/A		N/A		N/A
Class R
Net of waivers/reimbursements		1.54	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.57	%		N/A		N/A		N/A		N/A
Class K
Net of waivers/reimbursements		1.27	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.28	%		N/A		N/A		N/A		N/A
Class I
Net of waivers/reimbursements		.84	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		.85	%		N/A		N/A		N/A		N/A
Class 1
Net of waivers/reimbursements		1.09	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.09	%		N/A		N/A		N/A		N/A
Class 2
Net of waivers/reimbursements		.81	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		.81	%		N/A		N/A		N/A		N/A
Class Z
Net of waivers/reimbursements		.83	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		.84	%		N/A		N/A		N/A		N/A

90    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the year ended October 31, 2019 by .07%.

†† The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

See notes to consolidated financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB All Market Real Return Portfolio

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities of AB All Market Real Return Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the consolidated portfolio of investments, as of October 31, 2019, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 26, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable period ended October 31, 2019. For individual shareholders, the Fund designates 67.07% of dividends paid as qualified dividend income. For corporate shareholders, 18.36% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 10.28% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Vinod Chathlani⁽²⁾,Vice President Daniel J. Loewy⁽²⁾,Vice President Leon Zhu⁽²⁾,Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller Vincent S. Noto,Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s All Market Real Return Portfolio Team. Messrs. Chathlani, Loewy and Zhu are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Strategy are managed under the direction of the Board of Directors. Certain information concerning the Strategy’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,##Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007
Michael J. Downey,## 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Vinod Chathlani 37	Vice President	Vice President of the Adviser**, with which he has been associated since December 2014.
Daniel J. Loewy 45	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer and Head of Multi-Asset Solutions and Chief Investment Officer of Dynamic Asset Allocation.
Leon Zhu 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc, (“ABIS”)**, with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Strategy.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB All Market Real Return Portfolio (the “Fund”) at a meeting held onJuly 30-31, 2019 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits

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relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute transactions for their clients);12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1-,3- and5-year periods ended May 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, and their discussion with the Adviser of the reasons for the Fund’s underperformance in the periods reviewed, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to the Fund’s. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that

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the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases

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might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund’s asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

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TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

108    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

AB ALL MARKET REAL RETURN PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

AMRR-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB BOND INFLATION STRATEGY

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 10, 2019

This report provides management’s discussion of fund performance for AB Bond Inflation Strategy for the annual reporting period ended October 31, 2019.

The Fund’s investment objective is to maximize real return without assuming what the Adviser considers to be undue risk.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
AB BOND INFLATION STRATEGY
Class 1 Shares1		2.86%		7.18%
Class 2 Shares1		2.92%		7.19%
Class A Shares		2.82%		7.00%
Class C Shares		2.36%		6.18%
Advisor Class Shares2		2.87%		7.21%
Class R Shares2		2.63%		6.64%
Class K Shares2		2.70%		6.88%
Class I Shares2		2.93%		7.23%
Class Z Shares2		2.90%		7.26%
Bloomberg Barclays1-10 Year TIPS Index		3.00%		6.87%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for thesix- and12-month periods ended October 31, 2019.

During the12-month period, all share classes outperformed the benchmark, except Class C and R, which underperformed, before sales charges. Sector exposure to investment-grade corporate bonds, commercial mortgage-backed securities (“CMBS”) and high-yield bonds contributed, relative to the benchmark. The Fund’s long exposure to inflation breakevens detracted from returns. Currency returns also slightly detracted, primarily from positions in the Brazilian real and Polish zloty, which were partially offset by gains in the Indian rupee.

2    ^|    AB BOND INFLATION STRATEGY abfunds.com

During thesix-month period, all share classes underperformed the benchmark, before sales charges. The Fund’s long exposure to inflation breakevens detracted from returns. Sector exposure to investment-grade corporate bonds and CMBS added to performance. Currency exposures did not have a meaningful impact on results during the period.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were utilized in the corporate and CMBS sectors for hedging and investment purposes. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index (“CPI”) swaps were used to hedge inflation and for investment purposes, which had no material impact on returns. Variance swaps were used for hedging purposes to hedge againstflight-to-quality tail events and had an immaterial impact on returns.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the12-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times, reacting to slowing global growth, declining manufacturing output and faltering business confidence from the ongoingUS-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low, while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remained below target in most developed countries and was falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partialUS-China trade agreement and an increased likelihood of the UK leaving the European Union at the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

abfunds.com AB BOND INFLATION STRATEGY    ^|    3

INVESTMENT POLICIES

The Fund seeks real return. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing principally in inflation-indexed securities (such as TIPS or inflation-indexed securities from issuers other than the US Treasury) or by gaining inflation protection through derivatives transactions, such as inflation (CPI) swaps or total return swaps linked to TIPS. In deciding whether to purchase inflation-indexed securities or use inflation-linked derivatives transactions, the Adviser will consider the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Fund may also invest in other fixed-income investments, such as US andnon-US government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities.

Under normal circumstances, the Fund invests at least 80% of its net assets in fixed-income securities. While the Fund expects to invest principally in investment-grade securities, it may invest up to 15% of its total assets in fixed-income securities rated BB or B or the equivalent by at least one national rating agency (or deemed by the Adviser to be of comparable credit quality), which are not investment-grade (“junk bonds”).

Inflation-indexed securities are fixed-income securities structured to provide protection against inflation. Their principal value and/or the interest paid on them are adjusted to reflect official inflation measures. The inflation measure for TIPS is the CPI for Urban Consumers. The Fund may also invest in other inflation-indexed securities, issued by both US andnon-US issuers, and in derivative instruments linked to these securities.

The Fund may invest in derivatives, such as options, futures contracts, forwards or swaps. The Fund intends to use leverage for investment purposes. To do this, the Fund expects to enter into (i) reverse repurchase agreement transactions and use the cash made available from these transactions to make additional investments in fixed-income securities in accordance with the Fund’s investment policies and (ii) total return swaps. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the costs of such transactions. The Adviser will consider the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

(continued on next page)

4    ^|    AB BOND INFLATION STRATEGY abfunds.com

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risk and return characteristics as well as the securities’ impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may also invest in loan participations, structured securities, asset-backed securities, variable, floating, and inverse floating-rate instruments, and preferred stock, and may use other investment techniques. The Fund may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment-grade, the Fund will not be obligated to sell the security and may continue to hold it if, in the Adviser’s opinion, the investment is appropriate under the circumstances.

abfunds.com AB BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Fund invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

6    ^|    AB BOND INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS(continued)

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Foreign (Non-US) Risk: Investments in securities ofnon-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current

abfunds.com AB BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS(continued)

to the most recentmonth-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance”.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximumfront-end sales charge for Class A shares and a 1%1-year contingent deferred sales charge for Class C shares. Class 1 and Class 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

1/26/2010¹ TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB Bond Inflation Strategy Class A shares (from 1/26/2010¹ to 10/31/2019) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 1/26/2010.

abfunds.com AB BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						0.52%
1 Year		7.18%		7.18%
5 Years		2.36%		2.36%
Since Inception3		2.84%		2.84%
CLASS 2 SHARES2						0.62%
1 Year		7.19%		7.19%
5 Years		2.45%		2.45%
Since Inception3		2.92%		2.92%
CLASS A SHARES						0.18%
1 Year		7.00%		2.50%
5 Years		2.20%		1.31%
Since Inception3		2.64%		2.19%
CLASS C SHARES						-0.56%
1 Year		6.18%		5.18%
5 Years		1.43%		1.43%
Since Inception3		1.89%		1.89%
ADVISOR CLASS SHARES4						0.43%
1 Year		7.21%		7.21%
5 Years		2.46%		2.46%
Since Inception3		2.92%		2.92%
CLASS R SHARES4						-0.12%
1 Year		6.64%		6.64%
5 Years		1.95%		1.95%
Since Inception3		2.43%		2.43%
CLASS K SHARES4						0.19%
1 Year		6.88%		6.88%
5 Years		2.18%		2.18%
Since Inception3		2.66%		2.66%
CLASS I SHARES4						0.52%
1 Year		7.23%		7.23%
5 Years		2.48%		2.48%
Since Inception3		2.94%		2.94%
CLASS Z SHARES4						0.61%
1 Year		7.26%		7.26%
Since Inception3		2.74%		2.74%

(footnotes continued on next page)

10    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE(continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.28%, 1.17%, 1.56%, 2.29%, 1.31%, 1.90%, 1.65%, 1.34% and 1.21% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expenses (exclusive of extraordinary expenses, interest expense and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) to 0.60%, 0.50%, 0.75%, 1.50%, 0.50%, 1.00%, 0.75%, 0.50% and 0.50% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2020 and may be extended by the Adviser for additionalone-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the30-day period ended October 31, 2019.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements. These share classes do not carryfront-end sales charges; therefore their respective NAV and SEC returns are the same.

3 Inception dates: 1/26/2010 for all share classes except Class Z; 12/11/2014 for Class Z shares.

4 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB BOND INFLATION STRATEGY    ^|    11

HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		5.68%
5 Years		2.36%
Since Inception2		2.83%
CLASS 2 SHARES1
1 Year		5.70%
5 Years		2.44%
Since Inception2		2.92%
CLASS A SHARES
1 Year		0.97%
5 Years		1.30%
Since Inception2		2.18%
CLASS C SHARES
1 Year		3.70%
5 Years		1.44%
Since Inception2		1.90%
ADVISOR CLASS SHARES3
1 Year		5.74%
5 Years		2.46%
Since Inception2		2.92%
CLASS R SHARES3
1 Year		5.29%
5 Years		1.96%
Since Inception2		2.43%
CLASS K SHARES3
1 Year		5.44%
5 Years		2.21%
Since Inception2		2.66%
CLASS I SHARES3
1 Year		5.76%
5 Years		2.47%
Since Inception2		2.93%
CLASS Z SHARES3
1 Year		5.77%
Since Inception2		2.72%

(footnotes continued on next page)

12    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE(continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Inception dates: 1/26/2010 for all share classes except Class Z; 12/11/2014 for Class Z shares.

3 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB BOND INFLATION STRATEGY    ^|    13

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution(12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

14    ^|    AB BOND INFLATION STRATEGY abfunds.com

EXPENSE EXAMPLE(continued)

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,028.20	$	5.57		1.09	%	$	5.57		1.09	%
Hypothetical**	$	1,000	$	1,019.71	$	5.55		1.09	%	$	5.55		1.09	%
Class C
Actual	$	1,000	$	1,023.60	$	9.39		1.84	%	$	9.44		1.85	%
Hypothetical**	$	1,000	$	1,015.93	$	9.35		1.84	%	$	9.40		1.85	%
Advisor Class
Actual	$	1,000	$	1,028.70	$	4.30		0.84	%	$	4.30		0.84	%
Hypothetical**	$	1,000	$	1,020.97	$	4.28		0.84	%	$	4.28		0.84	%
Class R
Actual	$	1,000	$	1,026.30	$	6.84		1.34	%	$	6.84		1.34	%
Hypothetical**	$	1,000	$	1,018.45	$	6.82		1.34	%	$	6.82		1.34	%
Class K
Actual	$	1,000	$	1,027.00	$	5.57		1.09	%	$	5.57		1.09	%
Hypothetical**	$	1,000	$	1,019.71	$	5.55		1.09	%	$	5.55		1.09	%
Class I
Actual	$	1,000	$	1,029.30	$	4.30		0.84	%	$	4.30		0.84	%
Hypothetical**	$	1,000	$	1,020.97	$	4.28		0.84	%	$	4.28		0.84	%
Class 1
Actual	$	1,000	$	1,028.60	$	4.81		0.94	%	$	4.81		0.94	%
Hypothetical**	$	1,000	$	1,020.47	$	4.79		0.94	%	$	4.79		0.94	%
Class 2
Actual	$	1,000	$	1,029.20	$	4.30		0.84	%	$	4.30		0.84	%
Hypothetical**	$	1,000	$	1,020.97	$	4.28		0.84	%	$	4.28		0.84	%
Class Z
Actual	$	1,000	$	1,029.00	$	4.30		0.84	%	$	4.30		0.84	%
Hypothetical**	$	1,000	$	1,020.97	$	4.28		0.84	%	$	4.28		0.84	%

* Expenses are equal to each classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

** Assumes 5% annual return before expenses.

+ In connection with the Fund’s investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund’s total expenses are equal to the classes’ annualized expense ratio plus the Fund’s pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

abfunds.com AB BOND INFLATION STRATEGY    ^|    15

PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $642.1

Total Investments ($mil): $737.1

INFLATION PROTECTION BREAKDOWN¹

U.S. Inflation-Protected Exposure	108.3	%
Non-U.S. Inflation-Protected Exposure	0.7
Non-Inflation Exposure	(9.0	)
	100.0	%

SECTOR BREAKDOWN OF NET PORTFOLIO ASSETS, EXCLUDING TREASURY SECURITIES, TIPS, INTEREST RATE DERIVATIVES AND NET CASH EQUIVALENTS¹

Corporates–Investment Grade	16.4%
Commercial Mortgage-Backed Securities	9.6%
Collateralized Mortgage Obligations	6.0%
Asset-Backed Securities	3.9%
Corporates–Non-Investment Grade	2.1%
Quasi-Sovereigns	0.3%
Emerging Markets–Corporate Bonds	0.3%

SECTOR BREAKDOWN OF TOTAL PORTFOLIO INVESTMENTS, EXCLUDING DERIVATIVES²

Inflation-Linked Securities	66.8%
Corporates–Investment Grade	14.3%
Commercial Mortgage-Backed Securities	7.0%
Collateralized Mortgage Obligations	5.2%
Asset-Backed Securities	3.4%
Corporates–Non-Investment Grade	1.8%
Quasi-Sovereigns	0.3%
Emerging Markets–Corporate Bonds	0.3%
Governments–Treasuries	0.2%
Emerging Markets–Treasuries	0.2%
Short-Term	0.5%

1 All data are as of October 31, 2019. The Fund’s sector and inflation protection exposure breakdowns are expressed as an approximate percentage of the Fund’s total net assets (and may vary over time) inclusive of derivative exposure except as noted, based on the Adviser’s internal classification.

2 The Fund’s sector breakdown is expressed, based on the Adviser’s internal classification, as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions (not reflected in the table), which may be used for hedging or investment purposes or to adjust the risk profile or exposures of the Fund (see “Portfolio of Investments” section of the report for additional details). Derivative transactions may result in a form of leverage for the Fund. The Fund uses leverage for investment purposes by entering into reverse repurchase agreements. As a result, the Fund’s total investments will generally exceed its net assets.

16    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2019

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 76.7%
Japan – 0.7%
Japanese Government CPI Linked Bond Series 22 0.10%, 3/10/27	JPY		487,809	$	4,679,784
United States – 76.0%
U.S. Treasury Inflation Index 0.125%, 1/15/22-7/15/26 (TIPS)	U.S.$		67,729		67,601,944
0.125%, 7/15/22 (TIPS)(a)			14,371		14,344,411
0.125%, 7/15/24 (TIPS)(b)			31,936		31,970,973
0.375%, 7/15/23 (TIPS)(a)(b)			24,419		24,621,266
0.375%, 7/15/25 (TIPS)(a)			46,275		46,983,409
0.375%, 7/15/27 (TIPS)(b)			62,953		64,073,854
0.50%, 1/15/28 (TIPS)			10,120		10,378,021
0.625%, 1/15/24-1/15/26 (TIPS)			71,943		73,447,862
0.75%, 7/15/28 (TIPS)			42,345		44,561,259
1.75%, 1/15/28 (TIPS)			13,243		14,900,733
2.00%, 1/15/26 (TIPS)			11,552		12,817,135
2.375%, 1/15/25-1/15/27 (TIPS)			45,791		52,342,922
2.50%, 1/15/29 (TIPS)			14,901		18,014,095
3.875%, 4/15/29 (TIPS)			8,786		11,777,899
					487,835,783
Total Inflation-Linked Securities (cost $481,754,414)					492,515,567
CORPORATES – INVESTMENT GRADE – 16.4%
Industrial – 8.1%
Basic – 0.8%
Alpek SAB de CV 4.25%, 9/18/29(c)			232		236,350
Braskem Netherlands Finance BV 4.50%, 1/31/30(c)			1,160		1,149,084
Celulosa Arauco y Constitucion SA 4.20%, 1/29/30(c)			489		486,995
DuPont de Nemours, Inc. 4.205%, 11/15/23			915		980,816
4.493%, 11/15/25			915		1,014,076
Eastman Chemical Co. 3.80%, 3/15/25			227		237,624
Suzano Austria GmbH 6.00%, 1/15/29			937		1,033,511
					5,138,456

abfunds.com AB BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Capital Goods – 0.4%
Embraer Netherlands Finance BV 5.40%, 2/01/27	U.S.$		590	$	667,069
General Electric Co. 0.875%, 5/17/25	EUR		1,165		1,299,610
United Technologies Corp. 3.95%, 8/16/25	U.S.$		750		821,445
					2,788,124
Communications - Media – 0.1%
CBS Corp. 3.50%, 1/15/25			300		312,837
Cox Communications, Inc. 2.95%, 6/30/23(c)			163		167,029
Time Warner Cable LLC 4.50%, 9/15/42			235		234,575
5.00%, 2/01/20			35		35,225
					749,666
Communications - Telecommunications – 1.0%
AT&T, Inc. 3.40%, 5/15/25			1,382		1,448,820
4.125%, 2/17/26			431		467,613
4.55%, 3/09/49			715		769,719
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 3/20/25(c)			1,150		1,224,371
Verizon Communications, Inc. 4.862%, 8/21/46			574		712,259
Vodafone Group PLC 3.75%, 1/16/24			1,072		1,130,467
4.125%, 5/30/25			638		692,460
					6,445,709
Consumer Cyclical - Automotive – 0.2%
General Motors Financial Co., Inc. 5.10%, 1/17/24			1,166		1,258,755
Consumer Cyclical - Restaurants – 0.1%
Starbucks Corp. 4.50%, 11/15/48			437		506,212
Consumer Non-Cyclical – 2.1%
AbbVie, Inc. 4.875%, 11/14/48			337		372,324
AmerisourceBergen Corp. 4.30%, 12/15/47			475		489,126

18    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Anheuser-Busch InBev Worldwide, Inc. 5.55%, 1/23/49	U.S.$		1,080	$	1,424,682
BAT Capital Corp. 3.215%, 9/06/26			1,308		1,302,964
Baxalta, Inc. 3.60%, 6/23/22			209		213,508
Cigna Corp. 3.75%, 7/15/23			318		333,216
4.125%, 11/15/25			374		405,315
4.375%, 10/15/28			501		552,443
CVS Health Corp. 4.10%, 3/25/25			685		736,067
4.30%, 3/25/28			685		742,944
Gilead Sciences, Inc. 2.55%, 9/01/20			1,360		1,367,330
Kraft Heinz Foods Co. 3.75%, 4/01/30(c)			981		1,002,337
3.95%, 7/15/25			83		87,428
Mylan NV 3.95%, 6/15/26			623		647,123
Reynolds American, Inc. 6.875%, 5/01/20			570		583,099
Sigma Alimentos SA de CV 4.125%, 5/02/26(c)			209		217,948
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/23(c)			1,151		1,240,928
Tyson Foods, Inc. 3.95%, 8/15/24			650		697,768
4.00%, 3/01/26			145		158,507
Zimmer Biomet Holdings, Inc. 2.70%, 4/01/20			570		571,043
Zoetis, Inc. 3.45%, 11/13/20			509		515,393
					13,661,493
Energy – 2.0%
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc. 4.08%, 12/15/47			250		250,688
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc. 3.337%, 12/15/27			728		749,432
Cenovus Energy, Inc. 3.00%, 8/15/22			33		33,347
Energy Transfer Operating LP 4.50%, 4/15/24			336		358,956
5.20%, 2/01/22			510		537,219

abfunds.com AB BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Energy Transfer Partners LP/Regency Energy Finance Corp. 4.50%, 11/01/23	U.S.$		115	$	121,962
Eni SpA 4.25%, 5/09/29(c)			954		1,046,881
Enterprise Products Operating LLC 3.70%, 2/15/26			771		820,984
5.20%, 9/01/20			335		343,868
Hess Corp. 4.30%, 4/01/27			1,053		1,106,693
Kinder Morgan Energy Partners LP 4.15%, 3/01/22			104		108,533
5.00%, 10/01/21			1,200		1,254,480
Marathon Petroleum Corp. 5.125%, 3/01/21			280		291,460
Occidental Petroleum Corp. 2.90%, 8/15/24			1,100		1,111,880
3.20%, 8/15/26			173		174,979
Plains All American Pipeline LP/PAA Finance Corp. 3.60%, 11/01/24			621		635,724
Sabine Pass Liquefaction LLC 5.00%, 3/15/27			418		459,294
TransCanada PipeLines Ltd. 9.875%, 1/01/21			930		1,011,626
Western Midstream Operating LP 4.50%, 3/01/28			375		361,185
4.75%, 8/15/28			249		241,684
Williams Cos., Inc. (The) 3.90%, 1/15/25			1,250		1,312,863
4.125%, 11/15/20			300		304,722
					12,638,460
Other Industrial – 0.1%
Alfa SAB de CV 5.25%, 3/25/24(c)			600		647,250
Services – 0.3%
Expedia Group, Inc. 3.80%, 2/15/28			886		929,795
Global Payments, Inc. 4.00%, 6/01/23			496		524,217
S&P Global, Inc. 4.40%, 2/15/26			611		684,320
					2,138,332

20    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Technology – 0.8%
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.625%, 1/15/24	U.S.$		153	$	157,474
3.875%, 1/15/27			407		411,094
Broadcom, Inc. 3.625%, 10/15/24(c)			500		514,250
4.25%, 4/15/26(c)			560		584,422
Dell International LLC/EMC Corp. 4.42%, 6/15/21(c)			456		470,902
6.02%, 6/15/26(c)			974		1,112,366
KLA Corp. 4.65%, 11/01/24			639		705,635
Lam Research Corp. 2.80%, 6/15/21			250		253,405
Seagate HDD Cayman 4.75%, 1/01/25			195		204,902
Western Digital Corp. 4.75%, 2/15/26			480		490,205
					4,904,655
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 4/05/36(c)			241		256,063
5.875%, 7/05/34(c)			330		387,025
					643,088
Transportation - Services – 0.1%
Adani Ports & Special Economic Zone Ltd. 3.95%, 1/19/22(c)			565		578,772
					52,098,972
Financial Institutions – 7.9%
Banking – 7.1%
ABN AMRO Bank NV 4.75%, 7/28/25(c)			200		217,704
AIB Group PLC 4.263%, 4/10/25(c)			825		868,312
4.75%, 10/12/23(c)			425		453,900
American Express Co. Series C 4.90%, 3/15/20(d)			485		489,210
Australia & New Zealand Banking Group Ltd. 4.40%, 5/19/26(c)			600		642,582
Banco Santander SA 3.50%, 4/11/22			600		616,836
5.179%, 11/19/25			1,000		1,109,190
Bank of America Corp. 4.45%, 3/03/26			1,750		1,914,185

abfunds.com AB BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series DD 6.30%, 3/10/26(d)	U.S.$		295	$	335,447
Series L 3.95%, 4/21/25			2,182		2,322,783
Series Z 6.50%, 10/23/24(d)			458		517,041
Bank of Nova Scotia (The) 2.50%, 1/08/21			344		346,546
Banque Federative du Credit Mutuel SA 2.75%, 10/15/20(c)			555		559,279
Barclays Bank PLC 6.86%, 6/15/32(c)(d)			137		161,207
Barclays PLC 3.684%, 1/10/23			700		715,645
BB&T Corp. 2.625%, 6/29/20			480		481,920
BBVA USA 2.875%, 6/29/22			1,508		1,531,404
BNP Paribas SA 2.375%, 5/21/20			534		535,260
4.375%, 5/12/26(c)			600		641,844
BPCE SA 2.75%, 1/11/23(c)			478		486,982
5.70%, 10/22/23(c)			213		236,409
Capital One Financial Corp. 3.30%, 10/30/24			1,241		1,294,028
Citigroup, Inc. 3.875%, 3/26/25			1,293		1,367,994
Commonwealth Bank of Australia 4.50%, 12/09/25(c)			404		437,314
Cooperatieve Rabobank UA 4.375%, 8/04/25			396		430,179
Credit Agricole SA/London 2.75%, 6/10/20(c)			565		567,266
Credit Suisse Group Funding Guernsey Ltd. 3.80%, 6/09/23			1,285		1,345,883
4.55%, 4/17/26			891		985,793
Danske Bank A/S 3.244%, 12/20/25(c)			663		672,607
Discover Bank 4.682%, 8/09/28			327		342,653
Goldman Sachs Group, Inc. (The) 2.35%, 11/15/21			382		383,310
2.905%, 7/24/23			922		936,807
3.717% (LIBOR 3 Month + 1.60%), 11/29/23(e)			406		419,349
3.85%, 7/08/24			1,000		1,060,390

22    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
HSBC Bank USA NA 4.875%, 8/24/20	U.S.$		535	$	547,091
HSBC Holdings PLC 4.25%, 3/14/24			1,148		1,218,304
4.292%, 9/12/26			377		407,793
ING Bank NV 5.80%, 9/25/23(c)			1,359		1,514,402
JPMorgan Chase & Co. 2.295%, 8/15/21			322		322,757
3.22%, 3/01/25			1,180		1,224,781
4.25%, 10/15/20			55		56,212
Series FF 5.00%, 8/01/24(d)			876		905,512
KeyBank NA/Cleveland OH 2.25%, 3/16/20			833		833,950
Lloyds Banking Group PLC 4.582%, 12/10/25			1,191		1,280,170
Manufacturers & Traders Trust Co. 2.625%, 1/25/21			947		954,159
Morgan Stanley 3.737%, 4/24/24			1,196		1,253,312
5.00%, 11/24/25			300		337,884
Series G 4.35%, 9/08/26			929		1,012,824
5.50%, 7/28/21			456		482,521
National Australia Bank Ltd./New York Series G 2.625%, 7/23/20			400		402,116
Nationwide Building Society 4.00%, 9/14/26(c)			820		852,669
PNC Bank NA 2.60%, 7/21/20			250		251,213
3.80%, 7/25/23			940		991,728
Santander Holdings USA, Inc. 4.40%, 7/13/27			1,190		1,277,667
Santander UK PLC 5.00%, 11/07/23(c)			505		544,940
UBS AG/Stamford CT 7.625%, 8/17/22			465		523,567
UBS Group Funding Switzerland AG 4.125%, 9/24/25(c)			1,153		1,256,286
US Bancorp Series J 5.30%, 4/15/27(d)			427		461,519
Wells Fargo & Co. 3.069%, 1/24/23			759		773,504
3.75%, 1/24/24			489		517,181
					45,631,321

abfunds.com AB BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.3%
Synchrony Financial 4.50%, 7/23/25	U.S.$		1,875	$	2,020,650
Insurance – 0.4%
Guardian Life Insurance Co. of America (The) 4.85%, 1/24/77(c)			183		225,337
MetLife, Inc. 5.70%, 6/15/35			90		121,732
Nationwide Financial Services, Inc. 5.375%, 3/25/21(c)			360		374,497
Nationwide Mutual Insurance Co. 9.375%, 8/15/39(c)			125		214,000
New York Life Global Funding 1.95%, 2/11/20(c)			905		905,018
Voya Financial, Inc. 5.65%, 5/15/53			335		354,276
					2,194,860
REITS – 0.1%
Welltower, Inc. 4.00%, 6/01/25			708		765,362
					50,612,193
Utility – 0.4%
Electric – 0.4%
CMS Energy Corp. 5.05%, 3/15/22			144		152,646
Enel Chile SA 4.875%, 6/12/28			821		908,231
Exelon Generation Co. LLC 2.95%, 1/15/20			736		736,677
Israel Electric Corp., Ltd. Series 6 5.00%, 11/12/24(c)			620		683,744
					2,481,298
Total Corporates – Investment Grade (cost $100,011,898)					105,192,463
COMMERCIAL MORTGAGE-BACKED SECURITIES – 8.0%
Non-Agency Fixed Rate CMBS – 5.7%
CCUBS Commercial Mortgage Trust Series 2017-C1, Class A4 3.544%, 11/15/50			1,210		1,302,052
CFCRE Commercial Mortgage Trust Series 2016-C4, Class A4 3.283%, 5/10/58			730		767,622
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 3/13/35(c)			885		929,042

24    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 4/10/46	U.S.$		915	$	943,620
Series 2013-GC11, Class D 4.422%, 4/10/46(c)			191		198,920
Series 2015-GC27, Class A5 3.137%, 2/10/48			1,382		1,446,730
Series 2015-GC35, Class A4 3.818%, 11/10/48			450		488,477
Series 2016-C1, Class A4 3.209%, 5/10/49			775		815,982
Series 2016-GC36, Class A5 3.616%, 2/10/49			565		608,527
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 4/12/35(c)			179		178,440
Series 2015-CR24, Class A5 3.696%, 8/10/48			590		634,635
Series 2015-CR25, Class A4 3.759%, 8/10/48			1,155		1,245,818
Series 2015-DC1, Class A5 3.35%, 2/10/48			1,220		1,282,835
Series 2015-PC1, Class A5 3.902%, 7/10/50			745		803,722
CSAIL Commercial Mortgage Trust Series 2015-C2, Class A4 3.504%, 6/15/57			475		503,028
Series 2015-C3, Class A4 3.718%, 8/15/48			395		423,713
Series 2015-C4, Class A4 3.808%, 11/15/48			1,853		2,000,519
GS Mortgage Securities Corp. II Series 2013-KING, Class A 2.706%, 12/10/27(c)			648		648,028
GS Mortgage Securities Trust Series 2013-G1, Class A1 2.059%, 4/10/31(c)			301		299,417
Series 2014-GC18, Class D 4.99%, 1/10/47(c)			393		328,795
Series 2015-GC28, Class A5 3.396%, 2/10/48			1,300		1,374,760
Series 2018-GS9, Class A4 3.992%, 3/10/51			1,150		1,282,129
JP Morgan Chase Commercial Mortgage Securities Trust Series 2011-C5, Class D 5.395%, 8/15/46(c)			129		131,889

abfunds.com AB BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class A5 3.775%, 8/15/47	U.S.$		1,220	$	1,304,572
Series 2014-C22, Class XA 0.852%, 9/15/47(f)			21,378		719,654
Series 2015-C30, Class A5 3.822%, 7/15/48			585		633,371
Series 2015-C31, Class A3 3.801%, 8/15/48			990		1,071,773
Series 2015-C33, Class A4 3.77%, 12/15/48			1,150		1,246,182
JPMCC Commercial Mortgage Securities Trust Series 2017-JP7, Class XA 1.075%, 9/15/50(f)			8,966		547,481
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 9/15/39			139		81,149
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C25, Class XA 1.101%, 10/15/48(f)			10,948		535,367
Morgan Stanley Capital I Trust Series 2005-IQ9, Class D 5.00%, 7/15/56(g)(h)#			320		225,504
Series 2016-UB12, Class A4 3.596%, 12/15/49			870		937,620
UBS Commercial Mortgage Trust Series 2018-C10, Class A4 4.313%, 5/15/51			1,200		1,365,774
Series 2018-C8, Class A4 3.983%, 2/15/51			990		1,096,672
Series 2018-C9, Class A4 4.117%, 3/15/51			1,800		2,016,392
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class A5 2.85%, 12/10/45			2,309		2,352,103
Wells Fargo Commercial Mortgage Trust Series 2015-C27, Class A5 3.451%, 2/15/48			1,160		1,227,862
Series 2015-SG1, Class C 4.467%, 9/15/48			537		562,402
Series 2016-LC25, Class C 4.419%, 12/15/59			330		349,232
Series 2016-NXS6, Class A4 2.918%, 11/15/49			900		931,262
Series 2016-NXS6, Class C 4.313%, 11/15/49			525		564,200
					36,407,272

26    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Floating Rate CMBS – 2.3%
Ashford Hospitality Trust Series 2018-ASHF, Class A 2.814% (LIBOR 1 Month + 0.90%), 4/15/35(c)(e)	U.S.$		891	$	889,411
Series 2018-KEYS, Class A 2.914% (LIBOR 1 Month + 1.00%), 5/15/35(c)(e)			1,250		1,248,449
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 2.914% (LIBOR 1 Month + 1.00%), 11/15/33(c)(e)			1,755		1,756,075
BFLD Trust Series 2019-DPLO, Class D 3.754% (LIBOR 1 Month + 1.84%), 10/15/34(c)(e)			468		467,999
BHMS Series 2018-ATLS, Class A 3.164% (LIBOR 1 Month + 1.25%), 7/15/35(c)(e)			1,001		1,001,584
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 2.734% (LIBOR 1 Month + 0.82%), 6/15/35(c)(e)			1,000		994,977
BX Commercial Mortgage Trust Series 2019-IMC, Class A 2.921% (LIBOR 1 Month + 1.00%), 4/15/34(c)(e)			766		766,046
BX Trust Series 2018-EXCL, Class A 3.001% (LIBOR 1 Month + 1.09%), 9/15/37(c)(e)			1,130		1,126,844
DBWF Mortgage Trust Series 2018-GLKS, Class A 2.876% (LIBOR 1 Month + 1.03%), 11/19/35(c)(e)			1,042		1,043,483
Great Wolf Trust Series 2017-WOLF, Class A 2.764% (LIBOR 1 Month + 0.85%), 9/15/34(c)(e)			745		745,000
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 3.114% (LIBOR 1 Month + 1.20%), 6/15/38(c)(e)			1,368		1,369,407
Series 2019-SMP, Class A 3.064% (LIBOR 1 Month + 1.15%), 8/15/32(c)(e)			1,125		1,127,767

abfunds.com AB BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 3.864% (LIBOR 1 Month + 1.95%), 11/15/26(e)(i)	U.S.$		182	$	182,196
Natixis Commercial Mortgage Securities Trust Series 2018-850T, Class A 2.697% (LIBOR 1 Month + 0.78%), 7/15/33(c)(e)			1,200		1,199,295
Starwood Retail Property Trust Series 2014-STAR, Class A 3.134% (LIBOR 1 Month + 1.22%), 11/15/27(c)(e)			961		959,316
					14,877,849
Total Commercial Mortgage-Backed Securities (cost $49,820,297)					51,285,121
COLLATERALIZED MORTGAGE OBLIGATIONS – 6.0%
Risk Share Floating Rate – 5.0%
Bellemeade Re Ltd. Series 2018-2A, Class M1B 3.173% (LIBOR 1 Month + 1.35%), 8/25/28(c)(e)			364		364,436
Series 2018-3A, Class M1B 3.673% (LIBOR 1 Month + 1.85%), 10/25/28(c)(e)			755		754,999
Series 2019-2A, Class M1C 3.823% (LIBOR 1 Month + 2.00%), 4/25/29(c)(e)			707		705,864
Series 2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(c)(e)			660		660,469
Series 2019-3A, Class M1C 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(c)(e)			480		480,983
Series 2019-4A, Class M1B 3.914% (LIBOR 1 Month + 2.00%), 10/25/29(c)(e)			965		965,005
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 4.223% (LIBOR 1 Month + 2.40%), 4/25/31(c)(e)			711		716,184
Series 2019-R02, Class 1M2 4.123% (LIBOR 1 Month + 2.30%), 8/25/31(c)(e)			477		480,285
Series 2019-R03, Class 1M2 3.973% (LIBOR 1 Month + 2.15%), 9/25/31(c)(e)			231		231,590

28    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-R05, Class 1M2 3.823% (LIBOR 1 Month + 2.00%), 7/25/39(c)(e)	U.S.$		474	$	475,049
Series 2019-R06, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 9/25/39(c)(e)			702		703,269
Series 2019-R07, Class 1M2 3.923% (LIBOR 1 Month + 2.10%), 10/25/39(c)(e)			1,280		1,279,775
Eagle RE Ltd. Series 2018-1, Class M1 3.523% (LIBOR 1 Month + 1.70%), 11/25/28(c)(e)			278		278,214
Federal Home Loan Mortgage Corp. Series 2019-DNA4, Class M2 3.828% (LIBOR 1 Month + 1.95%), 10/25/49(c)(e)			955		954,997
Series 2019-FTR2, Class M2 3.973% (LIBOR 1 Month + 2.15%), 11/25/48(c)(e)			515		514,766
Series 2019-HQA3, Class M2 3.672% (LIBOR 1 Month + 1.85%), 9/25/49(c)(e)			640		638,533
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 6.073% (LIBOR 1 Month + 4.25%), 11/25/23(e)			1,400		1,510,038
Series 2014-DN3, Class M3 5.823% (LIBOR 1 Month + 4.00%), 8/25/24(e)			1,056		1,106,024
Series 2014-HQ3, Class M3 6.573% (LIBOR 1 Month + 4.75%), 10/25/24(e)			217		229,734
Series 2015-DNA2, Class M2 4.423% (LIBOR 1 Month + 2.60%), 12/25/27(e)			132		132,723
Series 2015-DNA2, Class M3 5.723% (LIBOR 1 Month + 3.90%), 12/25/27(e)			805		836,200
Series 2015-HQA1, Class M2 4.473% (LIBOR 1 Month + 2.65%), 3/25/28(e)			85		85,390
Series 2015-HQA2, Class M3 6.623% (LIBOR 1 Month + 4.80%), 5/25/28(e)			276		295,472

abfunds.com AB BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-DNA1, Class M3 7.373% (LIBOR 1 Month + 5.55%), 7/25/28(e)	U.S.$		324	$	356,717
Series 2016-DNA2, Class M3 6.473% (LIBOR 1 Month + 4.65%), 10/25/28(e)			1,085		1,163,152
Series 2017-DNA1, Class M2 5.073% (LIBOR 1 Month + 3.25%), 7/25/29(e)			850		891,019
Series 2017-DNA3, Class M2 4.323% (LIBOR 1 Month + 2.50%), 3/25/30(e)			900		918,017
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 7/25/24(e)			371		389,780
Series 2014-C04, Class 1M2 6.723% (LIBOR 1 Month + 4.90%), 11/25/24(e)			366		399,688
Series 2014-C04, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 11/25/24(e)			103		109,880
Series 2015-C01, Class 1M2 6.123% (LIBOR 1 Month + 4.30%), 2/25/25(e)			860		908,149
Series 2015-C01, Class 2M2 6.373% (LIBOR 1 Month + 4.55%), 2/25/25(e)			183		188,729
Series 2015-C02, Class 1M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(e)			326		343,576
Series 2015-C02, Class 2M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(e)			215		223,418
Series 2015-C03, Class 1M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(e)			424		457,736
Series 2015-C03, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(e)			375		398,169
Series 2015-C04, Class 1M2 7.523% (LIBOR 1 Month + 5.70%), 4/25/28(e)			826		902,883
Series 2015-C04, Class 2M2 7.373% (LIBOR 1 Month + 5.55%), 4/25/28(e)			373		397,502

30    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C01, Class 1M2 8.573% (LIBOR 1 Month + 6.75%), 8/25/28(e)	U.S.$		503	$	554,993
Series 2016-C01, Class 2M2 8.773% (LIBOR 1 Month + 6.95%), 8/25/28(e)			335		361,181
Series 2016-C02, Class 1M2 7.823% (LIBOR 1 Month + 6.00%), 9/25/28(e)			438		477,615
Series 2016-C03, Class 2M2 7.723% (LIBOR 1 Month + 5.90%), 10/25/28(e)			1,487		1,602,699
Series 2016-C05, Class 2M2 6.273% (LIBOR 1 Month + 4.45%), 1/25/29(e)			1,043		1,095,586
Series 2016-C07, Class 2M2 6.173% (LIBOR 1 Month + 4.35%), 5/25/29(e)			1,025		1,074,232
Series 2017-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 10/25/29(e)			580		603,586
Series 2019-R04, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 6/25/39(c)(e)			682		683,762
Home Re Ltd. Series 2018-1, Class M1 3.423% (LIBOR 1 Month + 1.60%), 10/25/28(c)(e)			454		458,216
Oaktown Re III Ltd. Series 2019-1A, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(c)(e)			452		452,172
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 4.054% (LIBOR 1 Month + 2.00%), 3/27/24(e)(i)			407		406,225
Series 2019-2R, Class A 4.804% (LIBOR 1 Month + 2.75%), 5/27/23(e)(i)			698		701,357
Series 2019-3R, Class A 4.164% (LIBOR 1 Month + 2.70%), 8/27/24(e)(i)			309		309,209
Radnor Re Ltd. Series 2019-1, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 2/25/29(c)(e)			418		418,215
Series 2019-2, Class M1B 3.573% (LIBOR 1 Month + 1.75%), 6/25/29(c)(e)			723		722,775

abfunds.com AB BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
STACR Trust Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(c)(e)	U.S.$		109	$	109,456
					32,479,693
Agency Floating Rate – 1.0%
Federal Home Loan Mortgage Corp. REMICs Series 3955, Class SD 4.679% (6.60% – LIBOR 1 Month), 11/15/41(e)(j)			4,279		730,628
Series 4693, Class SL 4.229% (6.15% – LIBOR 1 Month), 6/15/47(e)(j)			2,411		495,729
Series 4727, Class SA 4.279% (6.20% – LIBOR 1 Month), 11/15/47(e)(j)			2,759		526,888
Federal National Mortgage Association REMICs Series 2011-131, Class ST 4.717% (6.54% – LIBOR 1 Month), 12/25/41(e)(j)			1,205		257,509
Series 2014-17, Class SA 4.227% (6.05% – LIBOR 1 Month), 4/25/44(e)(j)			2,890		575,984
Series 2014-78, Class SE 4.277% (6.10% – LIBOR 1 Month), 12/25/44(e)(j)			2,073		386,208
Series 2014-92, Class SX 4.277% (6.10% – LIBOR 1 Month), 1/25/45(e)(j)			2,627		534,258
Series 2016-77, Class DS 4.177% (6.00% – LIBOR 1 Month), 10/25/46(e)(j)			2,371		437,187
Series 2017-62, Class AS 4.327% (6.15% – LIBOR 1 Month), 8/25/47(e)(j)			2,439		423,866
Series 2017-81, Class SA 4.377% (6.20% – LIBOR 1 Month), 10/25/47(e)(j)			2,564		524,034
Series 2017-97, Class LS 4.377% (6.20% – LIBOR 1 Month), 12/25/47(e)(j)			2,623		597,269
Government National Mortgage Association Series 2017-122, Class SA 4.354% (6.20% – LIBOR 1 Month), 8/20/47(e)(j)			1,795		358,850

32    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-134, Class MS 4.354% (6.20% – LIBOR 1 Month), 9/20/47(e)(j)	U.S.$		1,729	$	372,221
					6,220,631
Total Collateralized Mortgage Obligations (cost $37,845,963)					38,700,324
ASSET-BACKED SECURITIES – 3.9%
Autos - Fixed Rate – 2.1%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class A 3.70%, 9/20/24(c)			1,760		1,844,353
Series 2018-2A, Class A 4.00%, 3/20/25(c)			1,425		1,517,000
Exeter Automobile Receivables Trust Series 2016-1A, Class D 8.20%, 2/15/23(c)			250		260,736
Series 2017-3A, Class A 2.05%, 12/15/21(c)			22		21,858
First Investors Auto Owner Trust Series 2019-1A, Class B 3.02%, 3/17/25(c)			1,200		1,220,554
Flagship Credit Auto Trust Series 2016-2, Class D 8.56%, 11/15/23(c)			325		347,935
Series 2016-4, Class D 3.89%, 11/15/22(c)			330		338,022
Series 2017-4, Class A 2.07%, 4/15/22(c)			76		76,220
Series 2018-3, Class B 3.59%, 12/16/24(c)			1,200		1,223,155
Hertz Vehicle Financing II LP Series 2015-1A, Class A 2.73%, 3/25/21(c)			625		625,963
Series 2015-1A, Class B 3.52%, 3/25/21(c)			489		490,959
Series 2015-3A, Class A 2.67%, 9/25/21(c)			1,000		1,004,081
Series 2017-1A, Class A 2.96%, 10/25/21(c)			1,510		1,520,273
Series 2019-1A, Class A 3.71%, 3/25/23(c)			1,190		1,226,254
Series 2019-2A, Class A 3.42%, 5/25/25(c)			1,000		1,036,616
Westlake Automobile Receivables Trust Series 2016-3A, Class E 5.69%, 10/16/23(c)			875		881,013
					13,634,992

abfunds.com AB BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Other ABS - Fixed Rate – 1.0%
Consumer Loan Underlying Bond Credit Trust Series 2018-P1, Class A 3.39%, 7/15/25(c)(g)	U.S.$		238	$	239,428
Marlette Funding Trust Series 2017-3A, Class B 3.01%, 12/15/24(c)(g)			190		190,301
Series 2018-1A, Class A 2.61%, 3/15/28(c)(g)			17		16,552
Series 2018-3A, Class A 3.20%, 9/15/28(c)(g)			449		450,355
Series 2018-4A, Class A 3.71%, 12/15/28(c)(g)			645		651,297
Prosper Marketplace Issuance Trust Series 2019-3A, Class A 3.19%, 7/15/25(c)(g)			497		499,460
SBA Tower Trust Series 2015-1A,Class C 3.156%, 10/08/20(c)(g)			851		852,558
SoFi Consumer Loan Program LLC Series 2016-2, Class A 3.09%, 10/27/25(c)(g)			41		41,398
Series 2016-3, Class A 3.05%, 12/26/25(c)(g)			126		125,925
Series 2017-2, Class A 3.28%, 2/25/26(c)(g)			360		362,619
Series 2017-5, Class A2 2.78%, 9/25/26(c)(g)			723		724,789
Series 2017-6, Class A2 2.82%, 11/25/26(c)(g)			846		849,014
SoFi Consumer Loan Program Trust Series 2018-3, Class A2 3.67%, 8/25/27(c)(g)			1,166		1,181,888
					6,185,584
Credit Cards - Fixed Rate – 0.7%
World Financial Network Credit Card Master Trust Series 2018-A, Class A 3.07%, 12/16/24			1,675		1,695,465
Series 2018-B, Class A 3.46%, 7/15/25			850		872,766
Series 2018-B, Class M 3.81%, 7/15/25			935		960,829
Series 2019-B, Class M 3.04%, 4/15/26			1,070		1,079,078
					4,608,138

34    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Autos - Floating Rate – 0.1%
Ford Credit Floorplan Master Owner Trust A Series 2015-2, Class A2 2.484% (LIBOR 1 Month + 0.57%), 1/15/22(e)	U.S.$		692	$	692,494
Total Asset-Backed Securities (cost $24,644,767)					25,121,208
CORPORATES – NON-INVESTMENT GRADE – 2.1%
Financial Institutions – 1.1%
Banking – 0.9%
CIT Group, Inc. 5.25%, 3/07/25			579		637,537
Citigroup, Inc. 5.95%, 1/30/23(d)			257		271,749
Series O 5.875%, 3/27/20(d)			485		491,630
Series Q 5.95%, 8/15/20(d)			409		417,237
Credit Suisse Group AG 6.375%, 8/21/26(c)(d)			320		337,667
7.50%, 7/17/23(c)(d)			1,099		1,185,503
Goldman Sachs Group, Inc. (The) Series P 5.00%, 11/10/22(d)			286		283,812
Morgan Stanley Series J 5.55%, 7/15/20(d)			195		198,231
Royal Bank of Scotland Group PLC 8.625%, 8/15/21(d)			480		516,346
Series U 4.424% (LIBOR 3 Month + 2.32%), 9/30/27(d)(e)			600		583,752
Standard Chartered PLC 3.446% (LIBOR 3 Month + 1.51%), 1/30/27(c)(d)(e)			400		334,812
7.50%, 4/02/22(c)(d)			380		402,800
					5,661,076
Finance – 0.2%
Navient Corp. 6.125%, 3/25/24			722		756,086
6.625%, 7/26/21			415		439,414
7.25%, 1/25/22			54		58,569
					1,254,069
					6,915,145

abfunds.com AB BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Industrial – 0.9%
Capital Goods – 0.1%
TransDigm, Inc. 6.25%, 3/15/26(c)	U.S.$		512	$	548,465
Communications - Media – 0.3%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.00%, 3/01/23(c)			656		667,218
5.00%, 2/01/28(c)			702		734,348
CSC Holdings LLC 6.75%, 11/15/21			145		156,262
Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375%, 8/15/26(c)			407		425,559
					1,983,387
Consumer Cyclical - Automotive – 0.0%
Panther BF Aggregator 2 LP/Panther Finance Co., Inc. 4.375%, 5/15/26(c)	EUR		191		214,760
Consumer Cyclical - Other – 0.1%
International Game Technology PLC 6.25%, 2/15/22(c)	U.S.$		360		380,847
6.50%, 2/15/25(c)			460		512,477
					893,324
Energy – 0.3%
Sunoco LP/Sunoco Finance Corp. 4.875%, 1/15/23			618		634,260
5.875%, 3/15/28			640		672,909
Transocean Poseidon Ltd. 6.875%, 2/01/27(c)			388		391,678
					1,698,847
Technology – 0.1%
CommScope, Inc. 5.50%, 3/01/24(c)			302		306,434
6.00%, 3/01/26(c)			420		431,512
					737,946
					6,076,729
Utility – 0.1%
Electric – 0.1%
AES Corp./VA 4.00%, 3/15/21			562		572,020
Total Corporates – Non-Investment Grade (cost $13,139,174)					13,563,894

36    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
QUASI-SOVEREIGNS – 0.3%
Quasi-Sovereign Bonds – 0.3%
Indonesia – 0.2%
Pertamina Persero PT 6.45%, 5/30/44(c)	U.S.$		575	$	734,742
Perusahaan Listrik Negara PT 6.15%, 5/21/48(c)			305		383,151
					1,117,893
Mexico – 0.1%
Petroleos Mexicanos 6.75%, 9/21/47			529		526,537
6.84%, 1/23/30(c)			258		275,092
					801,629
Total Quasi-Sovereigns (cost $1,677,489)					1,919,522
EMERGING MARKETS – CORPORATE BONDS – 0.3%
Industrial – 0.3%
Capital Goods – 0.0%
Odebrecht Finance Ltd. 5.25%, 6/27/29(c)(k)(l)			426		30,486
Consumer Non-Cyclical – 0.2%
BRF GmbH 4.35%, 9/29/26(c)			328		326,873
BRF SA 3.95%, 5/22/23(c)			312		313,560
Minerva Luxembourg SA 6.50%, 9/20/26(c)			465		487,087
Virgolino de Oliveira Finance SA 10.50%, 1/28/18(i)(k)(m)			655		24,497
					1,152,017
Transportation - Services – 0.1%
Rumo Luxembourg SARL 5.875%, 1/18/25(c)			458		486,339
					1,668,842
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 3/01/26(i)			222		227,550
Total Emerging Markets - Corporate Bonds (cost $2,558,723)					1,896,392

abfunds.com AB BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 0.3%
Malaysia – 0.3%
Malaysia Government Bond Series 0117 3.882%, 3/10/22 (cost $1,610,619)	MYR		6,633	$	1,612,926
EMERGING MARKETS - TREASURIES – 0.2%
South Africa – 0.2%
Republic of South Africa Government Bond Series 2030 8.00%, 1/31/30 (cost $1,347,025)	ZAR		22,251		1,355,543
EMERGING MARKETS - SOVEREIGNS – 0.1%
Egypt – 0.1%
Egypt Government International Bond 6.125%, 1/31/22(c) (cost $255,000)	U.S.$		255		263,606
		Shares
COMMON STOCKS – 0.0%
Financials – 0.0%
Insurance – 0.0%
Mt Logan Re Ltd. (Preference Shares)(g)(k)(n) (cost $260,000)			260		245,834
SHORT-TERM INVESTMENTS – 0.5%
Investment Companies – 0.5%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(o)(p)(q) (cost $3,423,463)			3,423,463		3,423,463
Total Investments – 114.8% (cost $718,348,832)					737,095,863
Other assets less liabilities – (14.8)%					(94,974,173	)
Net Assets – 100.0%				$	642,121,690

38    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		32		December 2019	$	4,547,500	$	715
U.S. T-Note 2 Yr (CBT) Futures		405		December 2019		87,318,633		(144,981	)
Sold Contracts
10 Yr Japan Bond (OSE) Futures		4		December 2019		5,702,380		45,258
U.S. T-Note 5 Yr (CBT) Futures		359		December 2019		42,793,922		122,836
U.S. T-Note 10 Yr (CBT) Futures		356		December 2019		46,385,688		423,804
U.S. Ultra Bond (CBT) Futures		4		December 2019		759,000		(2,631	)
							$	445,001

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	USD	771	NZD	1,205		11/07/19	$	1,543
BNP Paribas SA	NZD	2,820	USD	1,770		11/07/19		(38,073	)
BNP Paribas SA	USD	1,545	NZD	2,414		11/07/19		2,750
Citibank, NA	BRL	7,316	USD	1,833		11/04/19		8,218
Citibank, NA	USD	872	BRL	3,658		11/04/19		40,391
Citibank, NA	USD	914	BRL	3,658		11/04/19		(1,458	)
Citibank, NA	USD	1,313	COP	4,417,278		11/14/19		(6,130	)
Citibank, NA	USD	1,708	JPY	183,281		11/21/19		(9,634	)
Citibank, NA	USD	4,125	CAD	5,460		11/22/19		21,141
Citibank, NA	USD	917	BRL	3,658		12/03/19		(6,939	)
Citibank, NA	USD	1,603	PLN	6,301		1/09/20		47,130
Deutsche Bank AG	JPY	517,727	USD	4,819		11/21/19		20,211
Goldman Sachs Bank USA	CAD	5,342	USD	4,026		11/22/19		(29,406	)
Morgan Stanley Capital Services, Inc.	NZD	2,576	USD	1,629		11/07/19		(23,350	)
Natwest Markets PLC	COP	4,414,409	USD	1,280		11/14/19		(25,467	)
Standard Chartered Bank	USD	549	GBP	426		1/10/20		4,025
State Street Bank & Trust Co.	NZD	1,762	USD	1,123		11/07/19		(6,054	)
State Street Bank & Trust Co.	ZAR	5,851	USD	395		11/21/19		8,892
State Street Bank & Trust Co.	EUR	2,535	USD	2,796		1/16/20		(46,540	)
State Street Bank & Trust Co.	MYR	6,876	USD	1,639		2/13/20		(9,524	)
							$	(48,274	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS(continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAIG Series 32, 5 Year Index, 6/20/24*		(1.00	)%		Quarterly		0.48	%	USD	8,750	$	(211,213	)	$	(148,318	)	$	(62,895	)

* Termination date

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	6,000		7/15/20		1.613%		CPI#		Maturity	$	7,180		$	—	$	7,180
USD	11,400		1/15/21		1.550%		CPI#		Maturity		4,071			—		4,071
USD	17,400		4/15/21		1.761%		CPI#		Maturity		(58,660	)		—		(58,660	)
USD	22,000		7/15/21		1.768%		CPI#		Maturity		(101,125	)		—		(101,125	)
USD	18,500		7/15/21		1.783%		CPI#		Maturity		(93,470	)		—		(93,470	)
USD	11,250		7/15/22		1.575%		CPI#		Maturity		(18,822	)		—		(18,822	)
USD	12,000		7/15/22		1.850%		CPI#		Maturity		(114,824	)		—		(114,824	)
USD	21,500		7/15/22		1.851%		CPI#		Maturity		(206,824	)		—		(206,824	)
USD	9,450		7/15/22		1.758%		CPI#		Maturity		(54,768	)		—		(54,768	)
USD	4,500		7/15/22		1.484%		CPI#		Maturity		4,711			—		4,711
USD	6,700		1/15/23		1.698%		CPI#		Maturity		(32,843	)		—		(32,843	)
USD	9,000		7/15/23		1.902%		CPI#		Maturity		(128,656	)		—		(128,656	)
USD	3,000		1/15/24		1.599%		CPI#		Maturity		(828	)		—		(828	)
										$	(794,858	)	$	—	$	(794,858	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
CAD	49,600		8/27/21	3 Month CDOR	1.623%	Semi-Annual/ Semi-Annual	$	(154,081	)	$	307	$	(154,388	)
SEK	217,650		8/30/24	3 Month STIBOR	(0.165)%	Quarterly/Annual		(389,638	)		—		(389,638	)
USD	1,160		6/09/25	2.488%	3 Month LIBOR	Semi-Annual/ Quarterly		(69,484	)		—		(69,484	)
USD	2,106		8/04/25	2.293%	3 Month LIBOR	Semi-Annual/ Quarterly		(92,656	)		—		(92,656	)
USD	5,400		10/04/26	1.487%	3 Month LIBOR	Semi-Annual/ Quarterly		16,124			—		16,124

40    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	1,080		11/08/26	1.657%	3 Month LIBOR	Semi-Annual/ Quarterly	$	(13,165	)	$	—	$	(13,165	)
USD	1,080		11/09/26	1.672%	3 Month LIBOR	Semi-Annual/ Quarterly		(14,477	)		—		(14,477	)
USD	7,030		4/04/27	2.436%	3 Month LIBOR	Semi-Annual/ Quarterly		(448,484	)		—		(448,484	)
USD	715		7/12/27	2.355%	3 Month LIBOR	Semi-Annual/ Quarterly		(46,852	)		—		(46,852	)
USD	5,395		6/04/29	2.150%	3 Month LIBOR	Semi-Annual/ Quarterly		(296,269	)		—		(296,269	)
USD	3,170		9/27/29	1.593%	3 Month LIBOR	Semi-Annual/ Quarterly		6,127			—		6,127
USD	1,490		11/10/35	2.631%	3 Month LIBOR	Semi-Annual/ Quarterly		(204,189	)		—		(204,189	)
							$	(1,707,044	)	$	307	$	(1,707,351	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)%		Monthly		0.29	%		USD	30	$	(356	)	$	367	$	(723	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	328		6,593			22,997		(16,404	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	346		6,955			23,727		(16,772	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	346		6,955			23,727		(16,772	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	683		13,728			54,776		(41,048	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	1,367		27,477			99,708		(72,231	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	1,367		27,476			103,223		(75,747	)
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	1,683		33,829			118,614		(84,785	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Credit Suisse International
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	) %		Monthly		0.29	%		USD	26	$	(309	)	$	230		$	(539	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	2,785		(33,134	)		33,793			(66,927	)
Deutsche Bank AG
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	354		(4,212	)		4,631			(8,843	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	1,041		(12,385	)		10,593			(22,978	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	3,469		(41,271	)		35,606			(76,877	)
Goldman Sachs International
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	226		(2,689	)		2,078			(4,767	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	387		(4,605	)		5,021			(9,626	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	418		(4,973	)		5,279			(10,252	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	836		(9,946	)		10,559			(20,505	)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	1,668		(256,585	)		(269,838	)		13,253
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	188		(28,920	)		(30,611	)		1,691
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	362		(55,686	)		(56,782	)		1,096
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	33		(5,081	)		(5,298	)		217
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	21		(3,231	)		(3,385	)		154
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	181		(27,893	)		(28,055	)		162

42    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	547	$	(46,559	)	$	(84,253	)	$	37,694
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,367		(116,468	)		(153,550	)		37,082
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,620		(138,024	)		(174,224	)		36,200
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	723		(61,539	)		(89,774	)		28,235
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	950		(80,940	)		(106,710	)		25,770
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	953		(81,195	)		(104,945	)		23,750
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	653		(55,690	)		(79,006	)		23,316
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,016		(86,563	)		(109,824	)		23,261
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	683		(58,192	)		(78,452	)		20,260
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	475		(40,470	)		(60,467	)		19,997
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	335		(28,543	)		(44,050	)		15,507
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	340		(28,968	)		(43,282	)		14,314
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	475		(40,470	)		(54,560	)		14,090
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	209		(17,789	)		(31,251	)		13,462
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	292		(24,878	)		(37,171	)		12,293
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	248		(21,109	)		(33,000	)		11,891
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	210		(17,874	)		(28,607	)		10,733

abfunds.com AB BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	376	$	(32,035	)	$	(40,592	)	$	8,557
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	195		(16,630	)		(23,593	)		6,963
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	69		(5,879	)		(8,916	)		3,037
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	100		(8,512	)		(10,205	)		1,693
CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	67		(5,703	)		(10,828	)		5,125
Credit Suisse International
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88			USD	1,145		4,796			(25,549	)		30,345
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	226		(19,236	)		(33,639	)		14,403
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	139		(11,843	)		(17,303	)		5,460
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	122		(10,385	)		(14,920	)		4,535
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	326		(27,748	)		(31,207	)		3,459
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	169		(14,385	)		(14,043	)		(342	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	130		(11,065	)		(10,577	)		(488	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	138		(11,746	)		(9,573	)		(2,173	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	471		(40,090	)		(30,571	)		(9,519	)
CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	5		(426	)		(627	)		201
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	218		(18,555	)		(25,009	)		6,454

44    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	217	$	(18,470	)	$	(24,904	)	$	6,434
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	150		(12,767	)		(18,964	)		6,197
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	247		(21,024	)		(26,698	)		5,674
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	130		(11,065	)		(16,436	)		5,371
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	30		(2,553	)		(3,528	)		975
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	464		(39,495	)		(38,293	)		(1,202	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	436		(37,111	)		(31,384	)		(5,727	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	662		(56,347	)		(46,551	)		(9,796	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	714		(60,773	)		(41,119	)		(19,654	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,000		(85,200	)		(132,831	)		47,631
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,300		(110,652	)		(154,064	)		43,412
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	598		(50,900	)		(92,231	)		41,331
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	710		(60,433	)		(82,024	)		21,591
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	322		(27,408	)		(43,969	)		16,561
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	166		(14,130	)		(17,745	)		3,615
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	59		(5,022	)		(6,391	)		1,369
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	27		(2,300	)		(3,474	)		1,174

abfunds.com AB BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	15	$	(1,277	)	$	(2,286	)	$	1,009
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	30		(2,553	)		(2,973	)		420
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	178		(15,150	)		(15,432	)		282
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	30		(2,553	)		(2,747	)		194
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	15		(1,277	)		(1,349	)		72
CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	517		(44,006	)		(86,002	)		41,996
CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	371		(31,579	)		(60,840	)		29,261
JPMorgan Securities LLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	691		(58,815	)		(85,024	)		26,209
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	241		(20,513	)		(29,916	)		9,403
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	118		(10,044	)		(15,108	)		5,064
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	122		(10,384	)		(11,909	)		1,525
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	30		(2,553	)		(2,937	)		384
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	28		(2,384	)		(2,741	)		357
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,100		(93,628	)		(163,107	)		69,479
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	191		(16,257	)		(13,513	)		(2,744	)
												$	(2,471,599	)	$	(2,735,808	)	$	264,209

* Termination date

46    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

INFLATION (CPI) SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Unrealized Appreciation/ (Depreciation)

Bank of America, NA

USD

17,640

7/15/21

1.765%

CPI#

Maturity

$

77,644

Barclays Bank PLC

USD

6,950

1/15/21

1.490%

CPI#

Maturity

73,250

Deutsche Bank AG

USD

5,190

7/15/21

2.152%

CPI#

Maturity

(61,148

)

JPMorgan Chase Bank, NA

USD

23,800

7/15/23

1.848%

CPI#

Maturity

(274,116

)

$

(184,370

)

INTEREST RATE SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
Morgan Stanley Capital Services LLC		USD	595		3/06/42	2.804%	3 Month LIBOR	Semi- Annual/ Quarterly	$	(117,486	)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2019
HSBC Bank USA†		1.90	%		—	$	10,451,527
HSBC Bank USA†		1.91	%		—		31,950,453
JPMorgan Chase Bank†		1.67	%		—		54,138,192
						$	96,540,172

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2019.

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

Overnight and Continuous

Up to 30 Days

31-90 Days

Greater than 90 Days

Total

Inflation-Linked Securities

$

96,540,172

$

– 0

–

$

– 0

–

$

– 0

–

$

96,540,172

# Fair valued by the Adviser.

(a) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(b) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $84,294,062 or 13.1% of net assets.

(d) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

abfunds.com AB BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS(continued)

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(f) IO – Interest Only.

(g) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(h) Illiquid security.

(i) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.29% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 3.864%, 11/15/26		11/16/15	$	181,876	$	182,196		0.03	%
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 4.054%, 3/27/24		3/21/19		407,234		406,225		0.06	%
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 4.804%, 5/27/23		6/07/19		697,661		701,357		0.11	%
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 4.164%, 8/27/24		10/11/12		309,204		309,209		0.05	%
Terraform Global Operating LLC 6.125%, 3/01/26		2/08/18		222,000		227,550		0.04	%
Virgolino de Oliveira Finance SA 10.50%, 1/28/18		1/27/14		363,153		24,497		0.00	%

(j) Inverse interest only security.

(k) Non-income producing security.

(l) Defaulted.

(m) Defaulted matured security.

(n) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		12/30/14	$	260,000	$	245,834		0.04	%

(o) Affiliated investments.

(p) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call ABat (800) 227-4618.

(q) The rate shown represents the 7-day yield as of period end.

Currency Abbreviations:

BRL – Brazilian Real

CAD – Canadian Dollar

COP – Colombian Peso

EUR – Euro

GBP – Great British Pound

JPY – Japanese Yen

MYR – Malaysian Ringgit

NZD – New Zealand Dollar

PLN – Polish Zloty

SEK – Swedish Krona

USD – United States Dollar

ZAR – South African Rand

48    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAIG – North American Investment Grade Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rates

OSE – Osaka Securities Exchange

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

STIBOR – Stockholm Interbank Offered Rate

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    49

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $714,925,369)		$	733,672,400
Affiliated issuers (cost $3,423,463)			3,423,463
Cash			9,412
Cash collateral due from broker			4,927,995
Foreign currencies, at value (cost $31,065)			31,179
Interest receivable			2,510,090
Receivable for capital stock sold			2,240,652
Unrealized appreciation on forward currency exchange contracts			154,301
Unrealized appreciation on inflation swaps			150,894
Market value on credit default swaps (net premiums paid $421,223)			127,809
Receivable for investment securities sold			118,487
Receivable for newly entered credit default swaps			27,929
Affiliated dividends receivable			5,657
Total assets			747,400,268
Liabilities
Payable for reverse repurchase agreements			96,540,172
Payable for investment securities purchased			3,321,103
Market value on credit default swaps (net premiums received $3,157,031)			2,599,408
Payable for capital stock redeemed			944,498
Payable for variation margin on centrally cleared swaps			338,987
Unrealized depreciation on inflation swaps			335,264
Payable for variation margin on futures			299,735
Unrealized depreciation on forward currency exchange contracts			202,575
Advisory fee payable			141,967
Unrealized depreciation on interest rate swaps			117,486
Cash collateral due to broker			85,000
Distribution fee payable			41,592
Administrative fee payable			24,583
Transfer Agent fee payable	��		14,404
Directors’ fees payable			1,936
Accrued expenses and other liabilities			269,868
Total liabilities			105,278,578
Net Assets		$	642,121,690
Composition of Net Assets
Capital stock, at par		$	59,285
Additionalpaid-in capital			644,495,972
Accumulated loss			(2,433,567	)
		$	642,121,690

See notes to financial statements.

50    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF ASSETS & LIABILITIES(continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	38,422,436		3,510,216	$	10.95	*
C	$	2,606,768		244,289	$	10.67
Advisor	$	168,439,307		15,372,917	$	10.96
R	$	6,992,450		639,691	$	10.93
K	$	5,051,471		462,543	$	10.92
I	$	9,892,906		912,877	$	10.84
1	$	319,281,028		29,654,689	$	10.77
2	$	58,828,925		5,467,353	$	10.76
Z	$	32,606,399		3,020,256	$	10.80

* The maximum offering price per share for Class A shares was $11.44 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    51

STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Interest	$	20,927,176
Dividends—Affiliated issuers		118,298
Other income		2,945		$	21,048,419
Expenses
Advisory fee (see Note B)		3,113,850
Distribution fee—Class A		98,519
Distribution fee—Class C		29,986
Distribution fee—Class R		33,425
Distribution fee—Class K		20,697
Distribution fee—Class 1		314,312
Transfer agency—Class A		60,039
Transfer agency—Class C		4,687
Transfer agency—Advisor Class		247,649
Transfer agency—Class R		16,490
Transfer agency—Class K		15,332
Transfer agency—Class I		10,188
Transfer agency—Class 1		40,098
Transfer agency—Class 2		6,787
Transfer agency—Class Z		5,942
Custodian		186,441
Registration fees		155,267
Audit and tax		115,205
Printing		85,322
Administrative		75,412
Legal		47,397
Directors’ fees		23,131
Miscellaneous		28,221
Total expenses before interest expense		4,734,397
Interest expense		2,929,588
Total expenses		7,663,985
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,128,657	)
Net expenses					6,535,328
Net investment income					14,513,091

See notes to financial statements.

52    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS(continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	(1,000,943	)
Forward currency exchange contracts		(785,083	)
Futures		(4,675,014	)
Swaps		116,599
Foreign currency transactions		(164,003	)
Net change in unrealized appreciation/depreciation of:
Investments(b)		39,267,154
Forward currency exchange contracts		156,115
Futures		(889,066	)
Swaps		(4,179,130	)
Foreign currency denominated assets and liabilities		(26,792	)
Net gain on investment and foreign currency transactions		27,819,837
Contributions from Affiliates (see Note B)		5,918
Net Increase in Net Assets from Operations	$	42,338,846

(a) Net of foreign capital gains taxes of $7,406.

(b) Net of increase in accrued foreign capital gains taxes of $17,433.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    53

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	14,513,091		$	15,511,591
Net realized loss on investment and foreign currency transactions		(6,508,444	)		(65,306	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		34,328,281			(20,415,263	)
Contributions from Affiliates (see Note B)		5,918			– 0	–
Net increase (decrease) in net assets from operations		42,338,846			(4,968,978	)
Distributions to Shareholders
Class A		(872,187	)		(1,203,796	)
Class C		(51,492	)		(65,894	)
Advisor Class		(4,083,274	)		(3,655,256	)
Class R		(132,330	)		(127,949	)
Class K		(152,387	)		(228,768	)
Class I		(225,817	)		(88,791	)
Class 1		(8,206,740	)		(7,965,505	)
Class 2		(1,472,842	)		(1,492,526	)
Class Z		(817,986	)		(630,748	)
Return of Capital
Class A		(20,252	)		—
Class C		(1,196	)		—
Advisor Class		(94,813	)		—
Class R		(3,073	)		—
Class K		(3,538	)		—
Class I		(5,243	)		—
Class 1		(190,560	)		—
Class 2		(34,199	)		—
Class Z		(18,994	)		—
Capital Stock Transactions
Net increase		3,088,080			141,207,431
Total increase		29,040,003			120,779,220
Net Assets
Beginning of period		613,081,687			492,302,467
End of period	$	642,121,690		$	613,081,687

See notes to financial statements.

54    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF CASH FLOWS

For the year ended October 31, 2019

Cash flows from operating activities
Net increase in net assets from operations				$	42,338,846
Reconciliation of net increase in net assets from operations to net increase in cash from operating activities
Purchases of long-term investments	$	(295,539,423	)
Purchases of short-term investments		(285,304,799	)
Proceeds from disposition of long-term investments		376,084,771
Proceeds from disposition of short-term investments		301,671,661
Net realized loss on investment transactions and foreign currency transactions		6,508,444
Net realized loss on forward currency exchange contracts		(785,083	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(34,328,281	)
Net accretion of bond discount and amortization of bond premium		1,387,911
Inflation index adjustment		(8,063,005	)
Decrease in receivable for investments sold		12,805,920
Decrease in interest receivable		83,386
Decrease in affiliated dividends receivable		1,395
Increase in cash collateral due from broker		(3,037,007	)
Increase in payable for investments purchased		578,861
Decrease in cash collateral due to broker		(325,000	)
Decrease in advisory fee payable		(3,848	)
Increase in administrative fee payable		2,384
Increase in Transfer Agent fee payable		1,059
Decrease in distribution fee payable		(4,295	)
Decrease in Directors’ fee payable		(135	)
Decrease in accrued expenses		(46,534	)
Proceeds on swaps, net		1,138,739
Payments for exchange-traded derivatives settlements, net		(9,133,328	)
Total adjustments					63,693,793
Net cash provided by (used in) operating activities					106,032,639

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    55

STATEMENT OF CASH FLOWS(continued)

Cash flows from financing activities
Redemptions of capital stock, net	$	(10,483,370	)
Cash dividends paid (net of dividend reinvestments)†		(3,346,816	)
Repayment of reverse repurchase agreements		(92,194,345	)
Net cash provided by (used in) financing activities				$	(106,024,531	)
Effect of exchange rate on cash					(190,795	)
Net decrease in cash					(182,687	)
Cash at beginning of year					223,278
Cash at end of year				$	40,591
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	13,040,107
Interest expense paid during the year	$	2,901,933

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in reverse repurchase agreements throughout the year.

See notes to financial statements.

56    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Bond Inflation Strategy Portfolio (the “Fund”), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class A shares are sold with afront-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, and Class 1 shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, Class 2 and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

abfunds.com AB BOND INFLATION STRATEGY    ^|    57

NOTES TO FINANCIAL STATEMENTS(continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by

58    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Inflation-Linked Securities	$	– 0	–	$	492,515,567	$	– 0	–	$	492,515,567
Corporates – Investment Grade		– 0	–		105,192,463		– 0	–		105,192,463

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Investments in Securities:

Level 1

Level 2

Level 3

Total

Commercial Mortgage-Backed Securities

$

– 0

–

$

51,059,617

$

225,504

$

51,285,121

Collateralized Mortgage Obligations

– 0

–

38,700,324

– 0

–

38,700,324

Asset-Backed Securities

– 0

–

18,935,624

6,185,584

25,121,208

Corporates –Non-Investment Grade

– 0

–

13,563,894

– 0

–

13,563,894

Quasi-Sovereigns

– 0

–

1,919,522

– 0

–

1,919,522

Emerging Markets – Corporate Bonds

– 0

–

1,896,392

– 0

–

1,896,392

Governments – Treasuries

– 0

–

1,612,926

– 0

–

1,612,926

Emerging Markets – Treasuries

– 0

–

1,355,543

– 0

–

1,355,543

Emerging Markets – Sovereigns

– 0

–

263,606

– 0

–

263,606

Common Stocks

– 0

–

– 0

–

245,834

245,834

Short-Term Investments

3,423,463

– 0

–

– 0

–

3,423,463

Total Investments in Securities

3,423,463

727,015,478

6,656,922

737,095,863

Other Financial Instruments(a):

Assets:

Futures

592,613

– 0

–

– 0

–

592,613

(b)

Forward Currency Exchange Contracts

– 0

–

154,301

– 0

–

154,301

Centrally Cleared Inflation (CPI) Swaps

– 0

–

15,962

– 0

–

15,962

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

22,251

– 0

–

22,251

(b)

Credit Default Swaps

– 0

–

127,809

– 0

–

127,809

Inflation (CPI) Swaps

– 0

–

150,894

– 0

–

150,894

Liabilities:

Futures

(147,612

)

– 0

–

– 0

–

(147,612

)(b)

Forward Currency Exchange Contracts

– 0

–

(202,575

)

– 0

–

(202,575

)

Centrally Cleared Credit Default Swaps

– 0

–

(211,213

)

– 0

–

(211,213

)(b)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(810,820

)

– 0

–

(810,820

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(1,729,295

)

– 0

–

(1,729,295

)(b)

Credit Default Swaps

– 0

–

(2,599,408

)

– 0

–

(2,599,408

)

Inflation (CPI) Swaps

– 0

–

(335,264

)

– 0

–

(335,264

)

Interest Rate Swaps

– 0

–

(117,486

)

– 0

–

(117,486

)

Reverse Repurchase Agreements

(96,540,172

)

– 0

–

– 0

–

(96,540,172

)

Total

$

(92,671,708

)

$

721,480,634

$

6,656,922

$

635,465,848

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

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The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Commercial Mortgage- Backed Securities			Asset- Backed Securities			Common Stocks
Balance as of 10/31/18	$	5,198,391		$	8,636,549		$	260,766
Accrued discounts/(premiums)		1,251			57			– 0	–
Realized gain (loss)		66,015			214			– 0	–
Change in unrealized appreciation/depreciation		(99,876	)		83,859			(14,932	)
Purchases/Payups		– 0	–		1,824,882			– 0	–
Sales/Paydowns		(869,137	)		(4,359,977	)		– 0	–
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		(4,071,140	)		– 0	–		– 0	–
Balance as of 10/31/19	$	225,504		$	6,185,584		$	245,834
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(a)	$	(71,894	)	$	81,833		$	(14,932	)
	Collateralized Mortgage Obligations			Emerging Markets - Corporate Bonds			Total
Balance as of 10/31/18	$	573,680		$	39,922		$	14,709,308
Accrued discounts/(premiums)		– 0	–		– 0	–		1,308
Realized gain (loss)		– 0	–		– 0	–		66,229
Change in unrealized appreciation/depreciation		– 0	–		– 0	–		(30,949	)
Purchases/Payups		– 0	–		– 0	–		1,824,882
Sales/Paydowns		– 0	–		– 0	–		(5,229,114	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		(573,680	)		(39,922	)		(4,684,742	)(b)
Balance as of 10/31/19	$	– 0	–	$	– 0	–	$	6,656,922
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(a)	$	– 0	–	$	– 0	–	$	(4,993	)

(a) The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

(b) There were de minimis transfers under 1% of net assets during the reporting period.

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The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at October 31, 2019. Securities priced by third party vendors, which approximates fair value, are excluded from the following table:

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 10/31/19		Valuation Technique	Unobservable Input	Input
Commercial Mortgage-Backed Securities	$	225,504	Discounted Cash Flow	Discount Rate on Future Cash Flows	9%
Common Stocks	$	245,834	Market Approach	NAV Equivalent	$945.52

Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in discount rates in isolation would be expected to result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in NAV Equivalent in isolation would be expected to result in a significantly higher (lower) fair value measurement.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in

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NOTES TO FINANCIAL STATEMENTS(continued)

which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating

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expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) on an annual basis (“Expense Caps”) to .75%, 1.50%, .50%, 1.00%, .75%, .50%, .60%, .50% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2020 and then may be extended for additionalone-year terms. For the year ended October 31, 2019, such reimbursement amounted to $1,123,609.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the reimbursement for such services amounted to $75,412.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $168,603 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales charges of $2,554 from the sale of Class A shares and received $0 and $136 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $5,048.

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A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2019 is as follows:

Fund	Market Value 10/31/18 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	245	$	254,300	$	251,122	$	3,423	$	118

During the year ended October 31, 2019, the Adviser reimbursed the Fund $5,918 for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable, and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the

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Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $250,090, $46,707, $49,544 and $1,583,128 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	82,420,586	$	57,319,526
U.S. government securities		213,118,837		308,017,604

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	718,896,341
Gross unrealized appreciation	$	21,905,521
Gross unrealized depreciation		(6,388,377	)
Net unrealized appreciation	$	15,517,144

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

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The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon fornon-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2019, the Fund held futures for hedging andnon-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and

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sale commitments denominated in foreign currencies and fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2019, the Fund held forward currency exchange contracts for hedging andnon-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps fornon-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on

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swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on aphased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less thannon-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

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In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2019, the Fund held interest rate swaps for hedging andnon-hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2019, the Fund held inflation (CPI) swaps for hedging andnon-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain

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circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2019, the Fund held credit default swaps for hedging andnon-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

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During the year ended October 31, 2019, the Fund held variance swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	592,613	*	Receivable/Payable for variation margin on futures	$	147,612	*
Credit contracts					Receivable/Payable for variation margin on centrally cleared swaps		62,895	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		38,213	*	Receivable/Payable for variation margin on centrally cleared swaps		2,540,422	*

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	Asset Derivatives			Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value		Statement of Assets and Liabilities Location	Fair Value
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts	$	154,301	Unrealized depreciation on forward currency exchange contracts	$	202,575
Interest rate contracts				Unrealized depreciation on interest rate swaps		117,486
Interest rate contracts	Unrealized appreciation on inflation swaps		150,894	Unrealized depreciation on inflation swaps		335,264
Credit contracts	Market value on credit default swaps		127,809	Market value on credit default swaps		2,599,408
Total		$	1,063,830		$	6,005,662

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	(4,675,014	)	$	(889,066	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(785,083	)		156,115
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(327,302	)		(5,015,139	)

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Foreign exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(17,248	)	$	3,286
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		461,149			832,723
Total		$	(5,343,498	)	$	(4,912,081	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	68,616,019
Average notional amount of sale contracts	$	87,631,066
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	22,430,444
Average principal amount of sale contracts	$	40,247,610
Interest Rate Swaps:
Average notional amount	$	595,000
Inflation Swaps:
Average notional amount	$	64,049,231
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	208,954,185
Centrally Cleared Inflation Swaps:
Average notional amount	$	107,336,364	(a)
Credit Default Swaps:
Average notional amount of buy contracts	$	16,307,385
Average notional amount of sale contracts	$	25,876,615
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	8,750,000
Variance Swaps:
Average notional amount	$	852,717	(b)

(a) Positions were open for eleven months during the year.

(b) Positions were open for four months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and

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liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Australia and New Zealand Banking Group Ltd.	$	1,543	$	– 0	–	$	– 0	–	$	– 0	–	$	1,543
Bank of America, NA		77,644		– 0	–		– 0	–		(77,644	)		– 0	–
Barclays Bank PLC		73,250		– 0	–		(73,250	)		– 0	–		– 0	–
BNP Paribas SA		2,750		(2,750	)		– 0	–		– 0	–		– 0	–
Citibank, NA		116,880		(24,161	)		– 0	–		– 0	–		92,719
Citigroup Global Markets, Inc.		123,013		(123,013	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		4,796		(4,796	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		20,211		(20,211	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank		4,025		– 0	–		– 0	–		– 0	–		4,025
State Street Bank & Trust Co.		8,892		(8,892	)		– 0	–		– 0	–		– 0	–
Total	$	433,004	$	(183,823	)	$	(73,250	)	$	(77,644	)	$	98,287	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
BNP Paribas SA	$	38,073	$	(2,750	)	$	– 0	–	$	– 0	–	$	35,323
Citibank, NA		24,161		(24,161	)		– 0	–		– 0	–		– 0	–
Citigroup Global Markets, Inc.		1,391,782		(123,013	)		– 0	–		(1,162,649	)		106,120
Credit Suisse International		180,367		(4,796	)		– 0	–		(175,571	)		– 0	–
Deutsche Bank AG		397,176		(20,211	)		– 0	–		(376,965	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		491,140		– 0	–		– 0	–		(460,381	)		30,759
JPMorgan Chase Bank, NA/JPMorgan Securities LLC		378,809		– 0	–		– 0	–		(233,522	)		145,287
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		265,640		– 0	–		– 0	–		– 0	–		265,640

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Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Natwest Markets PLC	$	25,467	$	– 0	–	$	– 0	–	$	– 0	–	$	25,467
State Street Bank & Trust Co.		62,118		(8,892	)		– 0	–		– 0	–		53,226
Total	$	3,254,733	$	(183,823	)	$	– 0	–	$	(2,409,088	)	$	661,822	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

See Note D.3 for additional disclosure of netting arrangements regarding reverse repurchase agreements.

2. Currency Transactions

The Fund may invest innon-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2019, the average amount of reverse

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repurchase agreements outstanding was $112,531,754 and the daily weighted average interest rate was 2.4%. At October 31, 2019, the Fund had reverse repurchase agreements outstanding in the amount of $96,540,172 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2019:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Bank USA	$	42,401,980	$	(42,381,384	)	$	20,596
JPMorgan Chase Bank		54,138,192		(54,138,192	)		– 0	–
Total	$	96,540,172	$	(96,519,576	)	$	20,596

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		1,335,847			3,937,249		$	14,431,686		$	42,317,254
Shares issued in reinvestment of dividends		62,261			94,816			668,363			1,013,624
Shares converted from Class C		12,244			4,933			134,636			53,025
Shares redeemed		(2,875,737	)		(1,621,029	)		(30,519,097	)		(17,277,656	)
Net increase (decrease)		(1,465,385	)		2,415,969		$	(15,284,412	)	$	26,106,247
Class C
Shares sold		35,201			80,988		$	369,805		$	848,738
Shares issued in reinvestment of dividends		3,952			5,012			41,489			52,474
Shares converted to Class A		(12,562	)		(5,044	)		(134,636	)		(53,025	)
Shares redeemed		(113,462	)		(91,679	)		(1,186,063	)		(961,260	)
Net decrease		(86,871	)		(10,723	)	$	(909,405	)	$	(113,073	)

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	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Advisor Class
Shares sold		8,127,810			9,863,291		$	87,174,658		$	105,972,950
Shares issued in reinvestment of dividends		321,349			277,838			3,475,201			2,975,198
Shares redeemed		(7,376,016	)		(5,759,401	)		(78,961,128	)		(61,748,685	)
Net increase		1,073,143			4,381,728		$	11,688,731		$	47,199,463
Class R
Shares sold		220,089			258,252		$	2,367,556		$	2,764,011
Shares issued in reinvestment of dividends		12,562			11,974			135,386			127,889
Shares redeemed		(200,399	)		(158,741	)		(2,150,725	)		(1,695,348	)
Net increase		32,252			111,485		$	352,217		$	1,196,552
Class K
Shares sold		209,936			1,089,667		$	2,243,823		$	11,674,948
Shares issued in reinvestment of dividends		14,611			21,460			155,925			228,648
Shares redeemed		(915,078	)		(226,656	)		(9,803,750	)		(2,422,983	)
Net increase (decrease)		(690,531	)		884,471		$	(7,404,002	)	$	9,480,613
Class I
Shares sold		665,974			711,766		$	6,999,802		$	7,537,555
Shares issued in reinvestment of dividends		21,589			8,398			231,059			88,790
Shares redeemed		(322,578	)		(232,023	)		(3,425,749	)		(2,446,093	)
Net increase		364,985			488,141		$	3,805,112		$	5,180,252
Class 1
Shares sold		5,037,568			8,378,092		$	53,163,034		$	88,717,978
Shares issued in reinvestment of dividends		588,041			588,191			6,246,030			6,207,060
Shares redeemed		(5,661,186	)		(4,938,558	)		(59,833,807	)		(52,179,735	)
Net increase (decrease)		(35,577	)		4,027,725		$	(424,743	)	$	42,745,303

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	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class 2
Shares sold		1,269,811			1,578,363		$	13,428,822		$	16,764,164
Shares issued in reinvestment of dividends		117,535			117,312			1,249,674			1,237,650
Shares redeemed		(832,324	)		(1,847,929	)		(8,662,540	)		(19,561,880	)
Net increase (decrease)		555,022			(152,254	)	$	6,015,956		$	(1,560,066	)
Class Z
Shares sold		1,121,518			1,555,861		$	11,902,841		$	16,532,064
Shares issued in reinvestment of dividends		78,469			59,669			836,980			630,748
Shares redeemed		(704,502	)		(585,517	)		(7,491,195	)		(6,190,672	)
Net increase		495,485			1,030,013		$	5,248,626		$	10,972,140

NOTE F

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Fund invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Foreign(Non-U.S.) Risk—Investments in securities ofnon-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk

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NOTES TO FINANCIAL STATEMENTS(continued)

restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”)

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NOTES TO FINANCIAL STATEMENTS(continued)

intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	16,015,055	$	15,459,233
Total taxable distributions paid	$	16,015,055	$	15,459,233
Return of Capital		371,868		– 0	–
Total distributions paid	$	16,386,923	$	15,459,233

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(17,522,444	)(a)
Unrealized appreciation/(depreciation)		15,471,810	(b)
Total accumulated earnings/(deficit)	$	(2,050,634	)(c)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $17,522,444.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of swaps, and the tax deferral of losses on wash sales.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax and the tax treatment of defaulted securities.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the Fund had a net short-term capital loss carryforward of $3,811,867 and a net long-term capital loss carryforward of $13,710,577, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to contributions from the Adviser resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables—Nonrefundable

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NOTES TO FINANCIAL STATEMENTS(continued)

Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.47			$  10.83			$  10.92			$  10.44			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.21			.28			.21			.18			.08
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.52			(.38	)		(.11	)		.51			(.31	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.73			(.10	)		.10			.69			(.23	)
Less: Dividends and Distributions
Dividends from net investment income		(0.24	)		(0.26	)		(0.19	)		(0.21	)		(0.10	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.25	)		(0.26	)		(0.19	)		(0.21	)		(0.10	)
Net asset value, end of period		$  10.95			$  10.47			$  10.83			$ 10.92			$ 10.44
Total Return
Total investment return based on net asset value(d)		7.00	%		(.99	)%		.91	%		6.63	%		(2.18	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$38,422			$52,116			$27,718			$16,712			$13,660
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.25	%		1.31	%		1.01	%		.98	%		.88	%
Expenses, before waivers/reimbursements(e)		1.51	%		1.56	%		1.34	%		1.42	%		1.36	%
Net investment income(b)		1.93	%		2.60	%		1.95	%		1.71	%		.75	%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.24			$  10.61			$  10.71			$ 10.27			$ 10.64
Income From Investment Operations
Net investment income(a)(b)		.13			.19			.13			.10			.00	(e)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.49			(.37	)		(.11	)		.50			(.31	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.62			(.18	)		.02			.60			(.31	)
Less: Dividends
Dividends from net investment income		(.19	)		(.19	)		(.12	)		(.16	)		(.06	)
Net asset value, end of period		$  10.67			$  10.24			$  10.61			$  10.71			$  10.27
Total Return
Total investment return based on net asset value(d)		6.18	%		(1.77	)%		.16	%		5.86	%		(2.93	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,607			$3,391			$3,627			$2,505			$2,679
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.99	%		2.03	%		1.76	%		1.72	%		1.58	%
Expenses, before waivers/reimbursements(e)		2.26	%		2.29	%		2.09	%		2.16	%		2.07	%
Net investment income(b)		1.28	%		1.77	%		1.26	%		.96	%		.06	%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.49			$  10.84			$  10.93			$  10.46			$  10.79
Income From Investment Operations
Net investment income(a)(b)		.27			.30			.25			.22			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.48			(.37	)		(.13	)		.49			(.33	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.75			(.07	)		.12			.71			(.20	)
Less: Dividends and Distributions
Dividends from net investment income		(0.27	)		(0.28	)		(0.21	)		(0.24	)		(0.13	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.28	)		(0.28	)		(0.21	)		(0.24	)		(0.13	)
Net asset value, end of period		$  10.96			$  10.49			$  10.84			$  10.93			$  10.46
Total Return
Total investment return based on net asset value(d)		7.21	%		(.68	)%		1.15	%		6.87	%		(1.90	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$168,440			$150,011			$107,545			$29,186			$18,343
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.97	%		1.05	%		.77	%		.73	%		.58	%
Expenses, before waivers/reimbursements(e)		1.24	%		1.31	%		1.10	%		1.16	%		1.06	%
Net investment income(b)		2.47	%		2.80	%		2.31	%		2.04	%		1.23	%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.46			$  10.82			$  10.89			$  10.44			$  10.78
Income From Investment Operations
Net investment income (loss)(a)(b)		.20			.24			.21			.29			(.08	)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.49			(.37	)		(.12	)		.37			(.19	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.69			(.13	)		.09			.66			(.27	)
Less: Dividends
Dividends from net investment income		(.22	)		(.23	)		(.16	)		(.21	)		(.07	)
Net asset value, end of period		$  10.93			$  10.46			$  10.82			$  10.89			$  10.44
Total Return
Total investment return based on net asset value(d)		6.64	%		(1.15	)%		.80	%(f)		6.41	%		(2.49	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,992			$6,354			$5,364			$408			$20
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.47	%		1.54	%		1.29	%		1.24	%		1.06	%
Expenses, before waivers/reimbursements(e)		1.83	%		1.90	%		1.67	%		1.71	%		1.50	%
Net investment income (loss)(b)		1.88	%		2.24	%		2.08	%		2.71	%		(.68	)%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2019			2018			2017			2016				2015
Net asset value, beginning of period		$  10.45			$  10.81			$  10.89			$  10.42				$  10.77
Income From Investment Operations
Net investment income(a)(b)		.17			.27			.21			.20				.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.54			(.38	)		(.11	)		.49				(.31	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–			– 0	–
Net increase (decrease) in net asset value from operations		.71			(.11	)		.10			.69				(.24	)
Less: Dividends and Distributions
Dividends from net investment income		(0.23	)		(0.25	)		(0.18	)		(0.22	)			(0.11	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–			– 0	–
Total dividends and distributions		(0.24	)		(0.25	)		(0.18	)		(0.22	)			(0.11	)
Net asset value, end of period		$  10.92			$  10.45			$  10.81			$  10.89				$  10.42
Total Return
Total investment return based on net asset value(d)		6.88	%		(1.01	)%		.96	%		6.66	%			(2.24	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,051			$12,055			$2,903			$2,409				$1,616
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.27	%		1.35	%		1.01	%		.98	%			.83	%
Expenses, before waivers/reimbursements(e)		1.57	%		1.65	%		1.37	%		1.36	%			1.17	%
Net investment income(b)		1.61	%		2.57	%		1.95	%		1.87	%	��		.70	%
Portfolio turnover rate		40	%		36	%		42	%		41	%			51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.38			$  10.74			$  10.84			$  10.38			$  10.73
Income From Investment Operations
Net investment income (loss)(a)(b)		.25			.28			.24			.22			(.06	)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.49			(.36	)		(.12	)		.50			(.14	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.74			(.08	)		.12			.72			(.20	)
Less: Dividends and Distributions
Dividends from net investment income		(0.27	)		(0.28	)		(0.22	)		(0.26	)		(0.15	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.28	)		(0.28	)		(0.22	)		(0.26	)		(0.15	)
Net asset value, end of period		$  10.84			$  10.38			$  10.74			$  10.84			$  10.38
Total Return
Total investment return based on net asset value(d)		7.23	%		(.73	)%		1.15	%		6.98	%		(1.88	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$9,893			$5,688			$642			$345			$265
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.94	%		1.11	%		.76	%		.72	%		.57	%
Expenses, before waivers/reimbursements(e)		1.18	%		1.34	%		.99	%		1.03	%		.76	%
Net investment income (loss)(b)		2.40	%		2.67	%		2.25	%		2.08	%		(.50	)%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.33			$  10.69			$  10.80			$  10.35			$  10.71
Income From Investment Operations
Net investment income(a)(b)		.24			.28			.22			.20			.10
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.48			(.36	)		(.11	)		.51			(.32	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.72			(.08	)		.11			.71			(.22	)
Less: Dividends and Distributions
Dividends from net investment income		(0.27	)		(0.28	)		(0.22	)		(0.26	)		(0.14	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.28	)		(0.28	)		(0.22	)		(0.26	)		(0.14	)
Net asset value, end of period		$  10.77			$  10.33			$  10.69			$  10.80			$  10.35
Total Return
Total investment return based on net asset value(d)		7.18	%		(.77	)%(‡)		1.01	%		6.89	%		(2.04	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$319,282			$306,620			$274,366			$226,408			$253,402
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.07	%		1.14	%		.86	%		.82	%		.68	%
Expenses, before waivers/reimbursements(e)		1.20	%		1.28	%		1.04	%		1.03	%		.87	%
Net investment income(b)		2.31	%		2.66	%		2.10	%		1.86	%		.98	%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.32			$  10.69			$  10.79			$  10.35			$  10.71
Income From Investment Operations
Net investment income(a)(b)		.26			.29			.24			.20			.11
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.48			(.37	)		(.11	)		.51			(.32	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.74			(.08	)		.13			.71			(.21	)
Less: Dividends and Distributions
Dividends from net investment income		(0.29	)		(0.29	)		(0.23	)		(0.27	)		(0.15	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.30	)		(0.29	)		(0.23	)		(0.27	)		(0.15	)
Net asset value, end of period		$  10.76			$  10.32			$  10.69			$  10.79			$  10.35
Total Return
Total investment return based on net asset value(d)		7.19	%		(.77	)%		1.21	%		6.92	%		(1.95	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$58,829			$50,705			$54,118			$37,207			$40,897
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.96	%		1.03	%		.76	%		.72	%		.58	%
Expenses, before waivers/reimbursements(e)		1.09	%		1.17	%		.94	%		.93	%		.77	%
Net investment income(b)		2.45	%		2.78	%		2.24	%		1.93	%		1.09	%
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

92    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,												December 11, 2014(f) to October 31, 2015
	2019			2018			2017			2016
Net asset value, beginning of period		$  10.35			$  10.72			$  10.82			$  10.38			$  10.62
Income From Investment Operations
Net investment income(a)(b)		.27			.28			.24			.25			.19
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.47			(.36	)		(.11	)		.46			(.28	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.74			(.08	)		.13			.71			(.09	)
Less: Dividends and Distributions
Dividends from net investment income		(0.28	)		(0.29	)		(0.23	)		(0.27	)		(0.15	)
Return of capital		(0.01	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(0.29	)		(0.29	)		(0.23	)		(0.27	)		(0.15	)
Net asset value, end of period		$  10.80			$  10.35			$  10.72			$  10.82			$  10.38
Total Return
Total investment return based on net asset value(d)		7.26	%		(.77	)%		1.19	%		6.89	%		(.86	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$32,606			$26,142			$16,019			$11,576			$3,821
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.96	%		1.06	%		.76	%		.73	%		.61	%^
Expenses, before waivers/reimbursements(e)		1.10	%		1.21	%		.94	%		.95	%		.84	%^
Net investment income(b)		2.50	%		2.69	%		2.22	%		2.40	%		2.09	%^
Portfolio turnover rate		40	%		36	%		42	%		41	%		51	%

See footnote summary on page 94.

abfunds.com AB BOND INFLATION STRATEGY    ^|    93

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(e) The expense ratios presented below exclude interest expense:

	Year Ended October 31,
	2019			2018			2017			2016			2015
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.76	%		.80	%
Before waivers/reimbursements		1.02	%		1.01	%		1.07	%		1.20	%		1.28	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.77	%		1.76	%		1.82	%		1.94	%		1.99	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.77	%		.76	%		.83	%		.93	%		.98	%
Class R
Net of waivers/reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Before waivers/reimbursements		1.36	%		1.36	%		1.38	%		1.47	%		1.44	%
Class K
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.04	%		1.05	%		1.10	%		1.13	%		1.09	%
Class I
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.73	%		.73	%		.72	%		.81	%		.69	%
Class 1
Net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.73	%		.74	%		.77	%		.81	%		.79	%
Class 2
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.63	%		.64	%		.67	%		.71	%		.69	%
Class Z(g)
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%^
Before waivers/reimbursements		.64	%		.65	%		.68	%		.72	%		.73	%^

(f) Commencement of distributions.

(g) Commenced distribution on December 11, 2014.

(‡) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

^ Annualized.

See notes to financial statements.

94    ^|    AB BOND INFLATION STRATEGY abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Bond Inflation Strategy Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

abfunds.com AB BOND INFLATION STRATEGY    ^|    95

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 26, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2019. For foreign shareholders, 95.17% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

abfunds.com AB BOND INFLATION STRATEGY    ^|    97

BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and
Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Michael Canter⁽²⁾,Vice President Shawn E. Keegan⁽²⁾,Vice President Janaki Rao⁽²⁾,Vice President Dimitri Silva⁽²⁾,Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller Vincent S. Noto,Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Multi-Sector Fixed-Income Team. Messrs. Canter, Keegan, Rao and Silva are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensivenon-profit board leadership experience, and currently serves on the boards of two education and science-relatednon-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007
Michael J. Downey,## 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company andnon-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

abfunds.com AB BOND INFLATION STRATEGY    ^|    103

MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of variousnon-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Michael Canter 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also the Director of US Multi-Sector and Securitized Assets.
Shawn E. Keegan 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Janaki Rao 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Dimitri Silva 37	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at(800)-227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

abfunds.com AB BOND INFLATION STRATEGY    ^|    105

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Bond Inflation Strategy (the “Fund”) at a meeting held onNovember 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment

106    ^|    AB BOND INFLATION STRATEGY abfunds.com

research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in 2016. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund in 2017 was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by

abfunds.com AB BOND INFLATION STRATEGY    ^|    107

the Adviser in which the Fund invests, including, but not limited to, benefits relating to12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s recent profitability to the Adviser would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1-,3- and5-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients pursuing a similar investment style to the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to anysub-advised funds pursuing a similar investment strategy as the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the

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directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also discussed these matters with their independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund andsub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore orsub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund andsub-advised fund clients as compared to the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with their independent fee consultant. The directors

abfunds.com AB BOND INFLATION STRATEGY    ^|    109

also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

110    ^|    AB BOND INFLATION STRATEGY abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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AB BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

BIS-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB INCOME FUND

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Income Fund (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB INCOME FUND    ^|    1

ANNUAL REPORT

December 17, 2019

This report provides management’s discussion of fund performance for AB Income Fund for the annual reporting period ended October 31, 2019.

The investment objective of the Fund is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
AB INCOME FUND
Class A Shares		5.39%		11.50%
Class C Shares		4.99%		10.65%
Advisor Class Shares1		5.52%		11.76%
Bloomberg Barclays US Aggregate Bond Index		5.71%		11.51%

1 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Aggregate Bond Index, for the six- and 12-month periods ended October 31, 2019.

During the 12-month period, Class A and C shares underperformed the benchmark, while Advisor Class shares outperformed, before sales charges. Security selection detracted, relative to the benchmark, as losses among US high yield, mortgage pass-through and asset-backed securities were greater than gains from commercial mortgage-backed securities. Currency decisions also detracted, mostly from overweights in the South Korean won and Brazilian real. Sector allocation was the primary contributor, mainly within high-yield corporates in the US and eurozone, as well as investment-grade bonds in the eurozone. Country and yield-curve positioning in off-benchmark exposure to the eurozone and Brazil also added to performance.

During the six-month period, all share classes underperformed the benchmark, before sales charges. Security selection was the primary detractor, due to selections in US high-yield bonds. Off-benchmark country exposure gains in the eurozone and emerging markets were more than offset by

2    ^|    AB INCOME FUND abfunds.com

yield-curve positioning in the US, resulting in modest overall losses. Currency exposures in several emerging markets marginally detracted. Sector exposure to US high-yield corporate bonds added to performance.

During both periods, the Fund utilized derivatives in the form of futures and interest rate swaptions to manage and hedge duration risk and/or take active yield-curve positioning. Currency forwards and currency options, both written and purchased, were used to hedge foreign currency exposure and to take active currency risk. Purchased and written exchange-traded fund options and index options—which contributed for the six-month period, and had no material impact on absolute returns for the 12-month period—were used in an effort to add alpha (a measure of how the Fund is performing on a risk-adjusted basis versus its benchmark) through different strategies, including but not limited to relative value, put spreads and call spreads. Written swaptions were used as hedging tools against other active equity-like risks in the Fund, as well as to take active risk through high-yield exposure. Credit default swaps, both single name and index, were used to create synthetic exposure in investment-grade and high-yield credit risk. Interest rate swaps were used to hedge duration risk. Total return swaps were used to create synthetic high-yield exposure in the Fund. Variance swaps were used to add alpha to the Fund by capturing risk premiums that are similar to high-yield exposure elsewhere in the Fund.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the 12-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times, reacting to slowing global growth, declining manufacturing output and faltering business confidence from the ongoing US-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low, while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remained below target in most developed countries and was falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partial US-China trade agreement and an increased likelihood of the UK leaving the European Union at

abfunds.com AB INCOME FUND    ^|    3

the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US and non-US issuers as well as corporate bonds, with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments, their agencies or instrumentalities and repurchase agreements relating to US government securities.

The Fund normally invests at least 65% of its total assets in US dollar-denominated securities. The Fund may also invest up to 35% of its total assets in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund may invest no more than 25% of its total assets in securities of issuers in any one country other than the US. The Fund’s investments in foreign securities may include investments in securities of emerging-market countries or of issuers in emerging markets.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings. The Fund may invest in fixed-income securities with any maturity or duration.

The Fund utilizes derivatives, such as options, futures contracts, forwards and swaps to a significant extent. The Fund may, for example, use credit default, interest rate and total return swaps to establish

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(continued on next page)

exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

abfunds.com AB INCOME FUND    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The index is not leveraged, whereas the Fund utilizes leverage. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (often referred to as “junk bonds”) are subject to higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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DISCLOSURES AND RISKS(continued)

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline, as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging-Market Risk: Investments in emerging-market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years, illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon

abfunds.com AB INCOME FUND    ^|    7

DISCLOSURES AND RISKS(continued)

reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

The Fund commenced operations on April 22, 2016. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., a closed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Fund has the same investment objective that the Predecessor Fund had and similar investment strategies and policies. In addition, the

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DISCLOSURES AND RISKS(continued)

Fund has higher expenses (including transfer agency and shareholder servicing fees), and a different advisory fee arrangement than the Predecessor Fund had.

Performance information prior to April 22, 2016 shown in this report reflects the historical performance of the Predecessor Fund based on its NAV. Such performance information may not be representative of performance the Fund would have achieved as an open-end fund under its current investment strategies and policies and expense levels.

abfunds.com AB INCOME FUND    ^|    9

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

10/31/2009 TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB Income Fund Advisor Class shares (from 10/31/2009 to 10/31/2019) as compared to the performance of the Fund’s benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

1 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						3.05%
1 Year		11.50%		6.79%
Since Inception2		4.72%		3.45%
CLASS C SHARES						2.44%
1 Year		10.65%		9.65%
Since Inception2		3.96%		3.96%
ADVISOR CLASS SHARES3						3.43%
1 Year		11.76%		11.76%
5 Years		4.47%		4.47%
10 Years		6.02%		6.02%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.16%, 1.92% and 0.91% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs to 0.77%, 1.52% and 0.52% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2020. Any fees waived and expense borne by the Adviser through April 22, 2018 under the expense limitations in effect prior to that date may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2019.

2 Inception date: 4/21/2016.

3 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

abfunds.com AB INCOME FUND    ^|    11

HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		5.49%
Since Inception1		3.45%
CLASS C SHARES
1 Year		8.38%
Since Inception1		3.99%
ADVISOR CLASS SHARES2
1 Year		10.48%
5 Years		4.60%
10 Years		6.13%

1 Inception date: 4/21/2016.

2 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution(12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,053.90	$	3.99		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class C
Actual	$	1,000	$	1,049.90	$	7.85		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	1,055.20	$	2.69		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $3,967.4

1 All data are as of October 31, 2019. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.7% or less in the following types: Common Stocks, Emerging Markets–Treasuries, Governments–Sovereign Bonds, Local Governments–Provincial Bonds, Local Governments–US Municipal Bonds, Preferred Stocks, Quasi-Sovereigns, Warrants and Whole Loan Trusts.

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PORTFOLIO SUMMARY(continued)

October 31, 2019(unaudited)

1 All data are as of October 31, 2019. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.5% or less in the following countries: Angola, Argentina, Australia, Bahamas, Bahrain, Chile, China, Colombia, Denmark, Dominican Republic, Ecuador, Egypt, El Salvador, Finland, Germany, Ghana, Honduras, Hong Kong, India, Ireland, Ivory Coast, Jamaica, Jersey (Channel Islands), Kazakhstan, Kenya, Lebanon, Luxembourg, Mauritius, Nigeria, Norway, Oman, Pakistan, Panama, Peru, Qatar, Senegal, Sri Lanka, Sweden, Switzerland, Trinidad & Tobago, Turkey, Virgin Islands (BVI) and Zambia.

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PORTFOLIO OF INVESTMENTS

October 31, 2019

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 48.1%
Indonesia – 2.0%
Indonesia Treasury Bond Series FR53 8.25%, 7/15/21	IDR		125,455,000	$	9,250,262
Series FR56 8.375%, 9/15/26			40,319,000		3,136,592
Series FR70 8.375%, 3/15/24			24,192,000		1,849,257
Series FR77 8.125%, 5/15/24			369,137,000		28,046,207
Series FR78 8.25%, 5/15/29			475,220,000		36,800,181
					79,082,499
Mexico – 0.9%
Mexican Bonos Series M 20 8.50%, 5/31/29	MXN		645,000		37,446,846
Russia – 1.1%
Russian Federal Bond – OFZ Series 6217 7.50%, 8/18/21	RUB		670,156		10,730,752
Series 6227 7.40%, 7/17/24			1,925,000		31,605,755
					42,336,507
United States – 44.1%
U.S. Treasury Bonds 4.50%, 2/15/36	U.S.$		17,631		24,154,470
5.50%, 8/15/28(a)			161,400		211,913,156
6.00%, 2/15/26			30,903		39,038,802
6.125%, 11/15/27(b)			469,196		627,476,873
6.25%, 5/15/30			1,061		1,524,635
6.375%, 8/15/27			45,300		60,957,351
6.50%, 11/15/26			24,326		32,231,950
6.625%, 2/15/27			1,822		2,447,340
6.75%, 8/15/26			58,640		78,009,525
6.875%, 8/15/25			18,100		23,388,594
7.50%, 11/15/24			20,000		25,746,875
U.S. Treasury Notes 1.625%, 8/15/22(b)			241,835		242,552,547
1.625%,10/31/23-8/15/29			51,000		51,122,187
2.00%, 1/15/21			25,154		25,275,739
2.125%, 7/31/24(b)			125,561		128,896,522
2.25%, 11/15/25(c)			16,500		17,126,484

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
2.375%, 5/15/29	U.S.$		33,319	$	35,338,964
2.625%, 2/15/29			9,944		10,751,950
2.875%, 9/30/23			65,000		68,331,250
3.125%, 11/15/28			39,000		43,740,938
					1,750,026,152
Total Governments – Treasuries (cost $1,840,720,845)					1,908,892,004
MORTGAGE PASS-THROUGHS – 17.8%
Agency Fixed Rate30-Year – 17.8%
Federal National Mortgage Association Series 1998 8.00%, 6/01/28			6		7,077
Series 1999 7.50%, 11/01/29			12		14,024
Series 2018 4.00%, 11/01/49, TBA			92,255		95,729,001
Series 2019 3.50%, 11/01/49, TBA			20,871		21,430,591
4.50%, 11/01/49, TBA			271,125		285,168,799
5.00%, 11/01/49, TBA			282,809		302,495,504
Total Mortgage Pass-Throughs (cost $705,838,996)					704,844,996
COLLATERALIZED MORTGAGE OBLIGATIONS – 11.6%
Risk Share Floating Rate – 10.3%
Bellemeade Re Ltd. Series2017-1, Class M1 3.523% (LIBOR 1 Month + 1.70%), 10/25/27(d)(e)			1,793		1,802,854
Series2018-2A, Class M1B 3.173% (LIBOR 1 Month + 1.35%), 8/25/28(d)(e)			4,545		4,553,820
Series2018-3A, Class M1B 3.673% (LIBOR 1 Month + 1.85%), 10/25/28(d)(e)			1,730		1,729,997
Series2019-1A, Class M2 4.523% (LIBOR 1 Month + 2.70%), 3/25/29(d)(e)			1,340		1,340,545
Series2019-2A, Class M1C 3.823% (LIBOR 1 Month + 2.00%), 4/25/29(d)(e)			9,029		9,013,058
Series2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(d)(e)			634		634,953

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2019-3A, Class M1C 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(d)(e)	U.S.$		15,567	$	15,598,881
Series2019-4A, Class M1C 4.414% (LIBOR 1 Month + 2.50%), 10/25/29(d)(e)			7,608		7,608,487
Connecticut Avenue Securities Trust Series2018-R07, Class 1M2 4.223% (LIBOR 1 Month + 2.40%), 4/25/31(d)(e)			3,351		3,376,077
Series2019-R01, Class 2M2 4.273% (LIBOR 1 Month + 2.45%), 7/25/31(d)(e)			17,523		17,660,554
Series2019-R02, Class 1M2 4.123% (LIBOR 1 Month + 2.30%), 8/25/31(d)(e)			13,672		13,756,091
Series2019-R03, Class 1M2 3.973% (LIBOR 1 Month + 2.15%), 9/25/31(d)(e)			5,746		5,764,661
Series2019-R05, Class 1M2 3.823% (LIBOR 1 Month + 2.00%), 7/25/39(d)(e)			5,328		5,340,407
Series2019-R06, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 9/25/39(d)(e)			9,468		9,490,156
Series2019-R07, Class 1M2 3.923% (LIBOR 1 Month + 2.10%), 10/25/39(d)(e)			13,769		13,766,575
Eagle RE Ltd. Series2018-1, Class M1 3.523% (LIBOR 1 Month + 1.70%), 11/25/28(d)(e)			1,228		1,229,730
Federal Home Loan Mortgage Corp. Series 2019-DNA1, Class M2 4.473% (LIBOR 1 Month + 2.65%), 1/25/49(d)(e)			241		244,482
Series 2019-DNA4, Class M2 3.828% (LIBOR 1 Month + 1.95%), 10/25/49(d)(e)			8,371		8,371,236
Series 2019-HQA1, Class M2 4.173% (LIBOR 1 Month + 2.35%), 2/25/49(d)(e)			4,012		4,042,769
Series 2019-HQA2, Class M2 3.873% (LIBOR 1 Month + 2.05%), 4/25/49(d)(e)			2,800		2,807,322

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series2013-DN1, Class M2 8.973% (LIBOR 1 Month + 7.15%), 7/25/23(d)	U.S.$		2,820	$	3,196,492
Series2013-DN2, Class M2 6.073% (LIBOR 1 Month + 4.25%), 11/25/23(d)			4,536		4,892,350
Series2014-DN1, Class M3 6.323% (LIBOR 1 Month + 4.50%), 2/25/24(d)			4,455		4,847,719
Series2014-DN3, Class M3 5.823% (LIBOR 1 Month + 4.00%), 8/25/24(d)			3,452		3,614,202
Series2014-HQ2, Class M3 5.573% (LIBOR 1 Month + 3.75%), 9/25/24(d)			1,010		1,100,841
Series2015-DN1, Class B 13.323% (LIBOR 1 Month + 11.50%), 1/25/25(d)			2,570		3,408,671
Series 2015-DNA2, Class B 9.373% (LIBOR 1 Month + 7.55%), 12/25/27(d)			1,490		1,780,008
Series 2015-DNA2, Class M2 4.423% (LIBOR 1 Month + 2.60%), 12/25/27(d)			614		616,251
Series 2015-DNA3, Class B 11.173% (LIBOR 1 Month + 9.35%), 4/25/28(d)			2,479		3,178,067
Series 2015-HQA1, Class B 10.623% (LIBOR 1 Month + 8.80%), 3/25/28(d)			1,576		1,935,840
Series 2016-DNA1, Class B 11.823% (LIBOR 1 Month + 10.00%), 7/25/28(d)			2,231		3,001,765
Series 2016-DNA2, Class M3 6.473% (LIBOR 1 Month + 4.65%), 10/25/28(d)			6,513		6,978,910
Series 2016-DNA4, Class M3 5.623% (LIBOR 1 Month + 3.80%), 3/25/29(d)			5,307		5,634,265
Series 2017-DNA1, Class M2 5.073% (LIBOR 1 Month + 3.25%), 7/25/29(d)			2,600		2,725,471
Series 2017-DNA2, Class B1 6.973% (LIBOR 1 Month + 5.15%), 10/25/29(d)			5,178		5,943,030

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-DNA2, Class M2 5.273% (LIBOR 1 Month + 3.45%), 10/25/29(d)	U.S.$		1,168	$	1,240,344
Series 2017-DNA3, Class B1 6.273% (LIBOR 1 Month + 4.45%), 3/25/30(d)			4,550		5,004,760
Series 2017-HQA2, Class B1 6.573% (LIBOR 1 Month + 4.75%), 12/25/29(d)			3,000		3,375,637
Series 2017-HQA3, Class B1 6.273% (LIBOR 1 Month + 4.45%), 4/25/30(d)			4,750		5,178,216
Series 2017-HQA3, Class M2 4.173% (LIBOR 1 Month + 2.35%), 4/25/30(d)			9,521		9,647,598
Series 2018-HQA1, Class B1 6.173% (LIBOR 1 Month + 4.35%), 9/25/30(d)			4,520		4,926,385
Series 2018-HQA1, Class M2 4.123% (LIBOR 1 Month + 2.30%), 9/25/30(d)			3,579		3,605,580
Federal National Mortgage Association Connecticut Avenue Securities Series2014-C01, Class M2 6.223% (LIBOR 1 Month + 4.40%), 1/25/24(d)			10,818		11,726,136
Series2014-C02, Class 1M2 4.423% (LIBOR 1 Month + 2.60%), 5/25/24(d)			3,768		3,917,091
Series2014-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 7/25/24(d)			10,805		11,345,318
Series2014-C04, Class 1M2 6.723% (LIBOR 1 Month + 4.90%), 11/25/24(d)			7,401		8,082,335
Series2014-C04, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 11/25/24(d)			1,337		1,424,397
Series2015-C01, Class 1M2 6.123% (LIBOR 1 Month + 4.30%), 2/25/25(d)			2,688		2,838,771
Series2015-C02, Class 1M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(d)			4,322		4,556,046
Series2015-C02, Class 2M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(d)			1,621		1,685,129

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2015-C03, Class 1M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(d)	U.S.$		3,754	$	4,050,261
Series2015-C03, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(d)			1,500		1,594,318
Series2015-C04, Class 1M2 7.523% (LIBOR 1 Month + 5.70%), 4/25/28(d)			1,968		2,150,623
Series2015-C04, Class 2M2 7.373% (LIBOR 1 Month + 5.55%), 4/25/28(d)			2,782		2,965,547
Series2016-C01, Class 2M2 8.773% (LIBOR 1 Month + 6.95%), 8/25/28(d)			1,475		1,590,449
Series2016-C02, Class 1M2 7.823% (LIBOR 1 Month + 6.00%), 9/25/28(d)			2,824		3,078,844
Series2016-C04, Class 1M2 6.073% (LIBOR 1 Month + 4.25%), 1/25/29(d)			666		703,710
Series2016-C05, Class 2B 12.768% (LIBOR 1 Month + 10.75%), 1/25/29(d)			2,744		3,660,921
Series2016-C05, Class 2M2 6.273% (LIBOR 1 Month + 4.45%), 1/25/29(d)			6,231		6,546,400
Series2016-C07, Class 2B 11.323% (LIBOR 1 Month + 9.50%), 5/25/29(d)			1,190		1,506,892
Series2017-C01, Class 1B1 7.573% (LIBOR 1 Month + 5.75%), 7/25/29(d)			16,800		19,710,094
Series2017-C02, Class 2B1 7.323% (LIBOR 1 Month + 5.50%), 9/25/29(d)			6,180		7,211,963
Series2017-C02, Class 2M2 5.473% (LIBOR 1 Month + 3.65%), 9/25/29(d)			709		743,311
Series2017-C03, Class 1B1 6.673% (LIBOR 1 Month + 4.85%), 10/25/29(d)			7,080		7,995,062
Series2017-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 10/25/29(d)			211		219,580
Series2017-C05, Class 1B1 5.423% (LIBOR 1 Month + 3.60%), 1/25/30(d)			7,280		7,658,360

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2017-C07, Class 1M2 4.223% (LIBOR 1 Month + 2.40%), 5/25/30(d)	U.S.$		1,150	$	1,167,202
Series2017-C07, Class 2M2 4.323% (LIBOR 1 Month + 2.50%), 5/25/30(d)			2,994		3,030,751
Series2018-C01, Class 1B1 5.373% (LIBOR 1 Month + 3.55%), 7/25/30(d)			8,575		8,905,219
Series2018-C01, Class 1M2 4.073% (LIBOR 1 Month + 2.25%), 7/25/30(d)			4,151		4,191,296
Series2018-C02, Class 2M2 4.023% (LIBOR 1 Month + 2.20%), 8/25/30(d)			4,516		4,550,859
Series2018-C03, Class 1B1 5.573% (LIBOR 1 Month + 3.75%), 10/25/30(d)			7,250		7,580,591
Series2018-C05, Class 1B1 6.073% (LIBOR 1 Month + 4.25%), 1/25/31(d)			6,873		7,435,039
Series2018-C06, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 3/25/31(d)			750		752,235
Home Re Ltd. Series2018-1, Class M1 3.423% (LIBOR 1 Month + 1.60%), 10/25/28(d)(e)			1,865		1,883,843
JP Morgan Madison Avenue Securities Trust Series2014-CH1, Class M2 6.073% (LIBOR 1 Month + 4.25%), 11/25/24(d)(f)			1,269		1,342,918
Series2015-CH1, Class M2 7.323% (LIBOR 1 Month + 5.50%), 10/25/25(d)(f)			2,189		2,396,470
Oaktown Re Ltd. Series2017-1A, Class M2 5.823% (LIBOR 1 Month + 4.00%), 4/25/27(d)(e)			1,045		1,060,339
PMT Credit Risk Transfer Trust Series2019-1R, Class A 4.054% (LIBOR 1 Month + 2.00%), 3/27/24(d)(f)			3,710		3,700,948
Series2019-2R, Class A 4.804% (LIBOR 1 Month + 2.75%), 5/27/23(d)(f)			4,670		4,694,591

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2019-3R, Class A 4.164% (LIBOR 1 Month + 2.70%), 8/27/24(d)(f)	U.S.$		2,541	$	2,540,767
Radnor Re Ltd. Series2019-1, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 2/25/29(d)(e)			4,187		4,187,939
Series2019-2, Class M1B 3.573% (LIBOR 1 Month + 1.75%), 6/25/29(d)(e)			9,100		9,099,614
STACR Trust Series 2018-DNA2, Class B1 5.523% (LIBOR 1 Month + 3.70%), 12/25/30(d)(e)			7,000		7,299,361
Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(d)(e)			1,635		1,637,391
Wells Fargo Credit Risk Transfer Securities Trust Series2015-WF1, Class 1M2 7.073% (LIBOR 1 Month + 5.25%), 11/25/25(d)(f)			743		837,085
					409,221,073
Agency Floating Rate – 1.2%
Federal Home Loan Mortgage Corp. REMICs Series 3119, Class PI 5.279% (7.20% – LIBOR 1 Month), 2/15/36(d)(g)			1,684		400,259
Series 3856, Class KS 4.629% (6.55% – LIBOR 1 Month), 5/15/41(d)(g)			12,056		2,050,505
Series 4248, Class SL 4.129% (6.05% – LIBOR 1 Month), 5/15/41(d)(g)			1,067		182,493
Series 4372, Class JS 4.179% (6.10% – LIBOR 1 Month), 8/15/44(d)(g)			6,413		1,173,774
Series 4570, Class ST 4.079% (6.00% – LIBOR 1 Month), 4/15/46(d)(g)			2,406		518,658
Series 4735, Class SA 4.279% (6.20% – LIBOR 1 Month), 12/15/47(d)(g)			11,543		2,620,790
Series 4763, Class SB 5.079% (7.00% – LIBOR 1 Month), 3/15/48(d)(g)			22,986		5,115,557

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 4774, Class BS 4.279% (6.20% – LIBOR 1 Month), 2/15/48(d)(g)	U.S.$		13,576	$	2,155,810
Series 4774, Class SL 4.279% (6.20% – LIBOR 1 Month), 4/15/48(d)(g)			17,517		2,799,650
Federal National Mortgage Association Series2019-25, Class SA 4.227% (6.05% – LIBOR 1 Month), 6/25/49(d)(g)			6,550		1,318,721
Series 4927, Class SJ 4.227% (6.05% – LIBOR 1 Month), 11/25/49(d)(g)(h)			7,464		1,296,862
Federal National Mortgage Association REMICs Series2013-4, Class ST 4.327% (6.15% – LIBOR 1 Month), 2/25/43(d)(g)			3,988		781,084
Series2014-88, Class BS 4.327% (6.15% – LIBOR 1 Month), 1/25/45(d)(g)			3,658		699,454
Series2015-90, Class SA 4.327% (6.15% – LIBOR 1 Month), 12/25/45(d)(g)			27,457		5,514,588
Series2016-69, Class DS 4.277% (6.10% – LIBOR 1 Month), 10/25/46(d)(g)			40,702		7,122,501
Series2017-49, Class SP 4.327% (6.15% – LIBOR 1 Month), 7/25/47(d)(g)			3,324		689,692
Series2018-32, Class SB 4.377% (6.20% – LIBOR 1 Month), 5/25/48(d)(g)			7,464		1,487,258
Series2018-45, Class SL 4.377% (6.20% – LIBOR 1 Month), 6/25/48(d)(g)			4,710		1,015,265
Series2018-57, Class SL 4.377% (6.20% – LIBOR 1 Month), 8/25/48(d)(g)			24,524		3,948,748
Series2018-58, Class SA 4.377% (6.20% – LIBOR 1 Month), 8/25/48(d)(g)			8,840		1,454,918
Series2018-59, Class HS 4.377% (6.20% – LIBOR 1 Month), 8/25/48(d)(g)			24,633		4,241,153
Series2019-60, Class SJ 4.227% (6.05% – LIBOR 1 Month), 10/25/49(d)(g)			6,701		1,363,037
					47,950,777

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Fixed Rate – 0.1%
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 8/25/36	U.S.$		1,265	$	1,035,452
CHL Mortgage Pass-Through Trust Series2007-3, Class A30 5.75%, 4/25/37			740		601,431
Series2007-HY4, Class 1A1 3.791%, 9/25/47			322		307,545
Citigroup Mortgage Loan Trust Series2007-AR4, Class 1A1A 4.583%, 3/25/37			209		210,946
CSMC Mortgage-Backed Trust Series2006-7, Class 3A12 6.25%, 8/25/36			526		416,408
Wells Fargo Mortgage Backed Securities Trust Series2007-AR7, Class A1 4.434%, 12/28/37			1,303		1,294,348
					3,866,130
Agency Fixed Rate – 0.0%
Federal National Mortgage Association REMICs Series2013-87, Class KI 3.00%, 12/25/37(i)			4,820		290,903
Non-Agency Floating Rate – 0.0%
First Horizon Alternative Mortgage Securities Trust Series2007-FA2, Class 1A10 2.073% (LIBOR 1 Month + 0.25%), 4/25/37(d)			451		190,176
Lehman XS Trust Series2007-10H, Class 2AIO 4.969% (7.00% – LIBOR 1 Month), 7/25/37(d)(g)			415		71,420
					261,596
Total Collateralized Mortgage Obligations (cost $453,340,176)					461,590,479
CORPORATES – INVESTMENT GRADE – 10.3%
Financial Institutions – 5.4%
Banking – 3.0%
AIB Group PLC 4.263%, 4/10/25(e)			7,005		7,372,762
4.75%, 10/12/23(e)			1,734		1,851,912

abfunds.com AB INCOME FUND    ^|    25

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Ally Financial, Inc. 8.00%, 11/01/31	U.S.$		75	$	104,602
American Express Co. Series C 4.90%, 3/15/20(j)			711		717,171
Australia & New Zealand Banking Group Ltd. 4.40%, 5/19/26(e)			200		214,194
4.50%, 3/19/24(e)			2,577		2,748,602
Banco Santander SA 5.179%, 11/19/25			1,000		1,109,190
Bank of America Corp. Series DD 6.30%, 3/10/26(j)			2,526		2,872,340
Series X 6.25%, 9/05/24(j)			6,520		7,219,987
Series Z 6.50%, 10/23/24(j)			2,072		2,339,102
Bank of New York Mellon Corp. (The) Series E 4.95%, 6/20/20(j)			844		854,727
Barclays Bank PLC 6.86%, 6/15/32(e)(j)			656		771,909
BNP Paribas SA 6.75%, 3/14/22(e)(j)			1,296		1,370,792
7.625%, 3/30/21(e)(j)			4,218		4,430,081
Commonwealth Bank of Australia 4.50%, 12/09/25(e)			6,462		6,994,857
Cooperatieve Rabobank UA 4.625%, 12/01/23			2,250		2,423,407
Credit Agricole SA 6.50%, 6/23/21(e)(j)	EUR		3,780		4,554,153
8.125%, 12/23/25(e)(j)	U.S.$		2,233		2,674,419
Danske Bank A/S 5.00%, 1/12/22(e)			478		503,678
5.375%, 1/12/24(e)			972		1,071,980
Discover Bank 3.45%, 7/27/26			500		518,685
HSBC Holdings PLC 4.75%, 7/04/29(e)(j)	EUR		6,930		8,236,824
ING Bank NV 5.80%, 9/25/23(e)	U.S.$		800		891,480
ING Groep NV 6.50%, 4/16/25(j)			6,341		6,745,683
6.875%, 4/16/22(e)(j)			515		543,474
Intesa Sanpaolo SpA 5.017%, 6/26/24(e)			999		1,041,228
6.50%, 2/24/21(e)			3,000		3,147,300

26    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
JPMorgan Chase & Co. Series FF 5.00%, 8/01/24(j)	U.S.$		2,837	$	2,932,579
Series S 6.75%, 2/01/24(j)			2,998		3,354,822
Series V 5.419% (LIBOR 3 Month + 3.32%), 1/01/20(d)(j)			37		37,231
Series Z 5.30%, 5/01/20(j)			119		120,618
Lloyds Banking Group PLC 4.50%, 11/04/24			4,360		4,658,529
Morgan Stanley Series G 4.35%, 9/08/26			3,000		3,270,690
Nationwide Building Society 4.363%, 8/01/24(e)			1,505		1,595,420
Nordea Bank Abp 6.625%, 3/26/26(e)(j)			8,725		9,522,465
Santander Holdings USA, Inc. 4.40%, 7/13/27			686		736,538
Santander UK PLC 5.00%, 11/07/23(e)			1,428		1,540,941
Societe Generale SA 4.75%, 11/24/25(e)			8,825		9,560,564
Swedbank AB 6.00%, 3/17/22(e)(j)			1,000		1,038,400
Series NC5 5.625%, 9/17/24(e)(j)			1,200		1,223,880
UBS Group AG 7.125%, 8/10/21(e)(j)			1,566		1,647,949
UBS Group Funding Switzerland AG 7.00%, 1/31/24(e)(j)			440		471,918
UniCredit SpA 4.875%, 2/20/29(e)	EUR		2,970		3,726,793
					118,763,876
Finance – 0.7%
Air Lease Corp. 4.25%, 2/01/24	U.S.$		3,166		3,390,533
GE Capital International Funding Co. Unlimited Co. 3.373%, 11/15/25			7,000		7,197,820
Huarong Finance II Co., Ltd. 5.00%, 11/19/25(e)			2,067		2,253,030
5.50%, 1/16/25(e)			4,215		4,633,866
Synchrony Financial 3.95%, 12/01/27			6,904		7,186,167
4.25%, 8/15/24			4,371		4,624,299
					29,285,715

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.9%
ACE Capital Trust II 9.70%, 4/01/30	U.S.$		750	$	1,118,655
Aegon NV 5.50%, 4/11/48			1,870		2,003,200
AIG Life Holdings, Inc. 8.125%, 3/15/46(e)			509		679,271
Assicurazioni Generali SpA 5.50%, 10/27/47(e)	EUR		6,630		8,901,053
Caisse Nationale de Reassurance Mutuelle Agricole Groupama 6.00%, 1/23/27			3,100		4,413,408
Fairfax Financial Holdings Ltd. 8.30%, 4/15/26	U.S.$		5,000		6,090,000
Hartford Financial Services Group, Inc. (The) Series ICON 4.283% (LIBOR 3 Month + 2.13%), 2/12/47(d)(e)			3,275		2,882,950
MetLife, Inc. 6.40%, 12/15/36			2,033		2,466,070
Prudential Financial, Inc. 5.20%, 3/15/44			4,029		4,287,339
5.625%, 6/15/43			2,868		3,110,719
					35,952,665
REITS – 0.8%
GLP Capital LP/GLP Financing II, Inc. 3.35%, 9/01/24			1,451		1,472,504
4.00%, 1/15/30			1,290		1,307,686
5.25%, 6/01/25			886		973,280
5.375%, 4/15/26			283		311,764
Kite Realty Group LP 4.00%, 10/01/26			515		511,591
MPT Operating Partnership LP/MPT Finance Corp. 4.625%, 8/01/29			1,047		1,090,827
5.00%, 10/15/27			75		79,311
Omega Healthcare Investors, Inc. 4.50%, 1/15/25			336		357,413
Regency Centers LP 3.60%, 2/01/27			1,700		1,798,294
Sabra Health Care LP/Sabra Capital Corp. 4.80%, 6/01/24			1,946		2,049,488
Senior Housing Properties Trust 6.75%,4/15/20-12/15/21			4,823		5,003,339
Service Properties Trust 4.25%, 2/15/21			3,700		3,752,688
4.35%, 10/01/24			2,425		2,480,678

28    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
4.50%, 3/15/25	U.S.$		1,695	$	1,729,069
4.75%, 10/01/26			1,210		1,242,367
Spirit Realty LP 3.20%, 1/15/27			2,453		2,470,809
3.40%, 1/15/30			1,800		1,817,712
4.45%, 9/15/26			1,010		1,085,174
STORE Capital Corp. 4.625%, 3/15/29			1,143		1,261,518
					30,795,512
					214,797,768
Industrial – 4.5%
Basic – 0.8%
Alpek SAB de CV 4.25%, 9/18/29(e)			407		414,631
Anglo American Capital PLC 4.875%, 5/14/25(e)			2,450		2,664,865
ArcelorMittal 4.55%, 3/11/26			2,450		2,579,458
7.00%, 10/15/39			1,180		1,444,202
Braskem Netherlands Finance BV 4.50%, 1/31/30(e)			3,103		3,073,801
Glencore Funding LLC 4.125%, 3/12/24(e)			7,218		7,583,303
Gold Fields Orogen Holdings BVI Ltd. 4.875%, 10/07/20(e)			2,230		2,267,631
5.125%, 5/15/24(e)			1,445		1,530,842
GTL Trade Finance, Inc. 7.25%, 4/16/44(e)			274		337,962
GTL Trade Finance, Inc./Gerdau Holdings, Inc. 5.893%, 4/29/24(e)			1,243		1,370,019
Minsur SA 6.25%, 2/07/24(e)			285		313,767
Nexa Resources SA 5.375%, 5/04/27(e)			1,300		1,376,375
Rohm & Haas Co. 7.85%, 7/15/29			3,000		4,024,440
Sasol Financing USA LLC 5.875%, 3/27/24			1,467		1,580,693
Suzano Austria GmbH 6.00%, 1/15/29			2,061		2,273,283
					32,835,272
Capital Goods – 0.1%
General Electric Co. Series D 5.00%, 1/21/21(j)			1,203		1,161,256

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Wabtec Corp. 4.40%, 3/15/24	U.S.$		1,451	$	1,547,898
					2,709,154
Communications - Media – 0.3%
CBS Corp. 4.00%, 1/15/26			3,500		3,749,445
Charter Communications Operating LLC/Charter Communications Operating Capital 4.908%, 7/23/25			3,650		4,024,344
Prosus NV 5.50%, 7/21/25(e)			683		760,691
Weibo Corp. 3.50%, 7/05/24			4,574		4,668,339
					13,202,819
Communications - Telecommunications – 0.4%
AT&T, Inc. 4.35%, 3/01/29			1,652		1,822,900
British Telecommunications PLC 9.625%, 12/15/30			3,600		5,525,316
Qwest Corp. 6.875%, 9/15/33			1,350		1,357,736
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 3/20/25(e)			1,990		2,118,693
5.152%, 3/20/28(e)			1,990		2,166,274
Vodafone Group PLC 3.75%, 1/16/24			428		451,343
4.125%, 5/30/25			609		660,984
					14,103,246
Consumer Cyclical - Automotive – 0.4%
Ford Motor Credit Co. LLC 4.063%, 11/01/24			3,012		3,026,608
5.596%, 1/07/22			530		557,332
General Motors Financial Co., Inc. 2.20%, 4/01/24(e)	EUR		1,571		1,834,837
5.10%, 1/17/24	U.S.$		5,068		5,471,159
Harley-Davidson Financial Services, Inc. 2.55%, 6/09/22(e)			130		129,893
ZF North America Capital, Inc. 4.75%, 4/29/25(e)			2,660		2,786,297
					13,806,126
Consumer Cyclical - Other – 0.0%
Lennar Corp. 4.75%, 11/29/27			75		81,041

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.6%
AbbVie, Inc. 3.20%, 5/14/26	U.S.$		4,000	$	4,098,200
Altria Group, Inc. 4.40%, 2/14/26			1,320		1,423,145
4.80%, 2/14/29			1,145		1,255,447
BAT Capital Corp. 3.215%, 9/06/26			5,837		5,814,528
HCA, Inc. 5.25%, 6/15/26			548		614,039
Kraft Heinz Foods Co. 3.75%, 4/01/30(e)			4,422		4,518,178
3.95%, 7/15/25			4,520		4,761,142
					22,484,679
Energy – 1.2%
Boardwalk Pipelines LP 4.95%, 12/15/24			1,500		1,626,090
Cenovus Energy, Inc. 3.80%, 9/15/23			2,500		2,587,400
Ecopetrol SA 5.875%, 9/18/23			281		312,472
Empresa Electrica Cochrane SpA 5.50%, 5/14/27(e)			1,038		1,068,683
Enable Midstream Partners LP 4.40%, 3/15/27			5,350		5,296,607
Energy Transfer Operating LP 4.75%, 1/15/26			2,295		2,488,446
5.50%, 6/01/27			7,425		8,345,551
Eni SpA 4.25%, 5/09/29(e)			1,969		2,160,702
Hess Corp. 7.30%, 8/15/31			8,898		11,163,520
MPLX LP 6.25%, 10/15/22(e)			591		599,079
Occidental Petroleum Corp. 2.90%, 8/15/24			4,990		5,043,892
3.20%, 8/15/26			771		779,820
ONEOK, Inc. 4.35%, 3/15/29			3,952		4,218,760
Western Midstream Operating LP 4.65%, 7/01/26			3,058		3,049,499
					48,740,521
Services – 0.0%
IHS Markit Ltd. 5.00%, 11/01/22(e)			675		721,987

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Technology – 0.7%
Autodesk, Inc. 3.50%, 6/15/27	U.S.$		1,517	$	1,572,886
Broadcom, Inc. 3.625%, 10/15/24(e)			2,560		2,632,960
4.25%, 4/15/26(e)			6,425		6,705,194
Dell International LLC/EMC Corp. 4.90%, 10/01/26(e)			4,940		5,358,764
Micron Technology, Inc. 4.185%, 2/15/27			5,761		6,011,143
4.64%, 2/06/24			1,257		1,345,367
4.975%, 2/06/26			1,185		1,283,805
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.875%, 6/18/26(e)			1,227		1,288,142
					26,198,261
Transportation - Railroads – 0.0%
Lima Metro Line 2 Finance Ltd. 4.35%, 4/05/36(e)			387		411,187
5.875%, 7/05/34(e)			632		740,508
					1,151,695
Transportation - Services – 0.0%
Aviation Capital Group LLC 4.125%, 8/01/25(e)			1,560		1,630,403
					177,665,204
Utility – 0.4%
Electric – 0.4%
ComEd Financing III 6.35%, 3/15/33			3,462		3,778,357
Duke Energy Corp. 4.875%, 9/16/24(j)			3,057		3,231,280
Empresas Publicas de Medellin ESP 4.25%, 7/18/29(e)			3,775		3,939,873
Enel Finance International NV 4.625%, 9/14/25(e)			5,060		5,537,866
LLPL Capital Pte Ltd. 6.875%, 2/04/39(e)			1,215		1,419,141
					17,906,517
Total Corporates – Investment Grade (cost $392,665,937)					410,369,489
CORPORATES –NON-INVESTMENT GRADE – 9.8%
Industrial – 7.1%
Basic – 1.0%
Advanced Drainage Systems, Inc. 5.00%, 9/30/27(e)			489		500,032

32    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Alcoa Nederland Holding BV 6.125%, 5/15/28(e)	U.S.$		510	$	549,775
CF Industries, Inc. 4.95%, 6/01/43			75		75,078
Constellium SE 4.25%, 2/15/26(e)	EUR		2,060		2,378,941
Eldorado Gold Corp. 9.50%, 6/01/24(e)	U.S.$		5,278		5,700,451
ERP Iron Ore, LLC 9.039%, 12/31/19(h)(k)(l)(m)(n)(o)			166		165,779
FMG Resources August 206 Pty Ltd. 4.50%, 9/15/27(e)			3,594		3,549,722
Freeport-McMoRan, Inc. 5.00%, 9/01/27			682		696,492
5.25%, 9/01/29			682		694,644
5.45%, 3/15/43			1,908		1,774,230
Graphic Packaging International LLC 4.75%, 7/15/27(e)			1,032		1,097,202
INEOS Group Holdings SA 5.375%, 8/01/24(e)(p)	EUR		3,215		3,664,717
Joseph T Ryerson & Son, Inc. 11.00%, 5/15/22(e)	U.S.$		2,275		2,405,471
Magnetation LLC/Mag Finance Corp. 11.00%, 5/15/18(f)(h)(m)(q)			1,407		14
OCI NV 5.25%, 11/01/24(e)			3,840		3,974,400
Olin Corp. 5.625%, 8/01/29			2,388		2,492,570
Peabody Energy Corp. 6.00%, 3/31/22(e)			2,380		2,201,786
Sealed Air Corp. 6.875%, 7/15/33(e)			2,246		2,626,562
SPCM SA 4.875%, 9/15/25(e)			913		944,508
Starfruit Finco BV/Starfruit US Holdco LLC 6.50%, 10/01/26(e)	EUR		2,515		2,833,029
8.00%, 10/01/26(e)	U.S.$		272		273,333
United States Steel Corp. 6.25%, 3/15/26			715		599,306
6.875%, 8/15/25(p)			915		825,998
					40,024,040
Capital Goods – 0.7%
BBA US Holdings, Inc. 4.00%, 3/01/28(e)			2,300		2,283,348
Bombardier, Inc. 7.875%, 4/15/27(e)			1,946		1,831,497

abfunds.com AB INCOME FUND    ^|    33

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Clean Harbors, Inc. 4.875%, 7/15/27(e)	U.S.$		2,962	$	3,092,950
5.125%, 7/15/29(e)			976		1,036,454
Cleaver-Brooks, Inc. 7.875%, 3/01/23(e)			551		523,704
Colfax Corp. 6.00%, 2/15/24(e)			338		359,608
6.375%, 2/15/26(e)			361		390,851
Crown European Holdings SA 2.875%, 2/01/26(e)	EUR		1,075		1,285,871
F-BrasileSpA/F-Brasile US LLC Series XR 7.375%, 8/15/26(e)	U.S.$		2,778		2,898,815
GFL Environmental, Inc. 5.375%, 3/01/23(e)			118		122,379
7.00%, 6/01/26(e)			720		766,519
OI European Group BV 3.125%, 11/15/24(e)	EUR		3,140		3,617,433
Terex Corp. 5.625%, 2/01/25(e)	U.S.$		677		678,632
TransDigm, Inc. 6.25%, 3/15/26(e)			1,033		1,106,570
6.375%, 6/15/26			847		886,174
6.50%, 7/15/24			1,489		1,537,467
Triumph Group, Inc. 6.25%, 9/15/24(e)			1,309		1,376,440
7.75%, 8/15/25			1,305		1,308,184
Trivium Packaging Finance BV 3.75%, 8/15/26(e)	EUR		100		116,003
5.50%, 8/15/26(e)	U.S.$		324		339,345
8.50%, 8/15/27(e)			328		349,254
					25,907,498
Communications - Media – 0.8%
Altice Financing SA 7.50%, 5/15/26(e)			2,600		2,767,440
Altice Luxembourg SA 10.50%, 5/15/27(e)			1,075		1,214,395
CCO Holdings LLC/CCO Holdings Capital Corp. 5.75%, 2/15/26(e)			75		79,326
Clear Channel Communications, Inc. Zero Coupon, 12/15/19(h)(k)(l)(m)			1,347		– 0	–
Clear Channel Worldwide Holdings, Inc. 5.125%, 8/15/27(e)			1,977		2,060,845
CSC Holdings LLC 6.50%, 2/01/29(e)			692		774,154
7.50%, 4/01/28(e)			1,631		1,840,649

34    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375%, 8/15/26(e)	U.S.$		668	$	698,461
6.625%, 8/15/27(e)			667		687,737
iHeartCommunications, Inc. 5.25%, 8/15/27(e)			1,439		1,485,998
6.375%, 5/01/26			81		87,516
8.375%, 5/01/27			147		158,174
LCPR Senior Secured Financing DAC 6.75%, 10/15/27(e)			1,940		1,988,830
Meredith Corp. 6.875%, 2/01/26			798		827,055
National CineMedia LLC 5.875%, 4/15/28(e)			2,267		2,380,713
Radiate Holdco LLC/Radiate Finance, Inc. 6.875%, 2/15/23(e)			1,031		1,051,702
Scripps Escrow, Inc. 5.875%, 7/15/27(e)			1,008		1,032,898
Sirius XM Radio, Inc. 4.625%, 7/15/24(e)			2,987		3,122,460
5.375%, 4/15/25(e)			75		78,078
TEGNA, Inc. 5.00%, 9/15/29(e)			2,408		2,442,290
Univision Communications, Inc. 5.125%,5/15/23-2/15/25(e)			406		400,848
Virgin Media Receivables Financing Notes I DAC 5.50%, 9/15/24(e)	GBP		3,270		4,341,690
Ziggo Bond Co. BV 6.00%, 1/15/27(e)	U.S.$		3,000		3,152,520
					32,673,779
Communications - Telecommunications – 0.4%
Altice France SA/France 7.375%, 5/01/26(e)			1,954		2,092,246
C&W Senior Financing DAC 6.875%, 9/15/27(e)			1,247		1,313,552
7.50%, 10/15/26(e)			893		962,368
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/26(e)			2,301		2,381,673
DKT Finance ApS 7.00%, 6/17/23(e)	EUR		1,424		1,679,508
Hughes Satellite Systems Corp. 6.625%, 8/01/26	U.S.$		810		879,733
Intelsat Jackson Holdings SA 5.50%, 8/01/23			1,485		1,387,941
8.50%, 10/15/24(e)			1,000		1,007,610

abfunds.com AB INCOME FUND    ^|    35

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Nexstar Broadcasting, Inc. 5.625%, 7/15/27(e)	U.S.$		1,729	$	1,825,962
Sprint Capital Corp. 6.875%, 11/15/28			490		533,600
Telecom Italia Capital SA 7.721%, 6/04/38			75		91,670
					14,155,863
Consumer Cyclical - Automotive – 0.4%
Allison Transmission, Inc. 5.875%, 6/01/29(e)			1,101		1,186,416
BCD Acquisition, Inc. 9.625%, 9/15/23(e)			1,714		1,765,506
Exide International Holdings LP 10.75%, 10/31/21(f)(h)(l)(r)			3,025		2,958,763
Exide Technologies 7.25%, 4/30/27(f)(h)(l)(o)(s)			1,812		706,611
11.00% (3.00% Cash and 8.00% PIK), 10/31/24(f)(h)(l)(o)			3,561		2,988,482
IHO Verwaltungs GmbH 3.875% (3.875% Cash or 4.625% PIK), 5/15/27(e)(o)	EUR		623		698,306
Panther BF Aggregator 2 LP/Panther Finance Co., Inc. 4.375%, 5/15/26(e)			360		404,784
6.25%, 5/15/26(e)	U.S.$		226		239,162
8.50%, 5/15/27(e)			1,237		1,246,240
Tenneco, Inc. 5.00%, 7/15/26			2,680		2,120,041
Titan International, Inc. 6.50%, 11/30/23			1,506		1,253,850
Truck Hero, Inc. 8.50%, 4/21/24(e)			933		928,391
					16,496,552
Consumer Cyclical - Entertainment – 0.0%
Cedar Fair LP 5.25%, 7/15/29(e)			996		1,064,933
VOC Escrow Ltd. 5.00%, 2/15/28(e)			75		78,103
					1,143,036
Consumer Cyclical - Other – 0.7%
Beazer Homes USA, Inc. 5.875%, 10/15/27			663		651,504
Brookfield Residential Properties, Inc./Brookfield Residential US Corp. 6.25%, 9/15/27(e)			3,475		3,548,218

36    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Forestar Group, Inc. 8.00%, 4/15/24(e)	U.S.$		1,470	$	1,590,805
Hilton Domestic Operating Co., Inc. 4.875%, 1/15/30			75		78,875
4.875%, 1/15/30(e)			75		79,701
IHO Verwaltungs GmbH 3.625% (3.625% Cash or 4.375% PIK), 5/15/25(e)(o)	EUR		560		638,319
Installed Building Products, Inc. 5.75%, 2/01/28(e)	U.S.$		846		888,275
International Game Technology PLC 6.25%, 1/15/27(e)			735		822,178
K. Hovnanian Enterprises, Inc. 10.00%, 7/15/22(e)			3,302		2,910,416
10.50%, 7/15/24(e)			304		240,868
Marriott Ownership Resorts, Inc./ILG LLC Series WI 6.50%, 9/15/26			2,111		2,284,588
MGM Resorts International 5.50%, 4/15/27			1,301		1,431,022
Shea Homes LP/Shea Homes Funding Corp. 6.125%, 4/01/25(e)			1,901		1,972,078
Stars Group Holdings BV/Stars Group USCo-Borrower LLC 7.00%, 7/15/26(e)			2,138		2,301,856
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 5/15/25(e)			688		681,037
Taylor Morrison Communities, Inc. 5.875%, 6/15/27(e)			2,845		3,179,316
Twin River Worldwide Holdings, Inc. 6.75%, 6/01/27(e)			1,720		1,809,320
Wyndham Hotels & Resorts, Inc. 5.375%, 4/15/26(e)			1,410		1,490,962
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.50%, 3/01/25(e)			75		79,893
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/29(e)			1,583		1,656,055
					28,335,286
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 1/15/28(e)			2,014		2,025,500
IRB Holding Corp. 6.75%, 2/15/26(e)			1,031		1,049,042
					3,074,542

abfunds.com AB INCOME FUND    ^|    37

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.2%
FirstCash, Inc. 5.375%, 6/01/24(e)	U.S.$		271	$	280,536
L Brands, Inc. 6.875%, 11/01/35			1,583		1,345,867
PetSmart, Inc. 7.125%, 3/15/23(e)			921		860,481
Staples, Inc. 7.50%, 4/15/26(e)			2,598		2,704,726
TPro Acquisition Corp. 11.00%, 10/15/24(e)			2,382		2,295,176
William Carter Co. (The) 5.625%, 3/15/27(e)			75		80,338
					7,567,124
Consumer Non-Cyclical – 0.6%
Air Medical Group Holdings, Inc. 6.375%, 5/15/23(e)			887		754,110
Aveta, Inc. 7.00%, 4/01/49(h)(k)(l)(m)			1,985		– 0	–
10.50%, 3/01/21(h)(k)(l)(m)			720		– 0	–
Bausch Health Americas, Inc. 8.50%, 1/31/27(e)			223		250,563
Bausch Health Cos., Inc. 4.50%, 5/15/23(e)	EUR		1,800		2,033,838
5.50%, 11/01/25(e)	U.S.$		75		78,262
6.125%, 4/15/25(e)			446		463,679
7.25%, 5/30/29(e)			223		245,994
CHS/Community Health Systems, Inc. 6.25%, 3/31/23			1,444		1,408,737
8.125%, 6/30/24(e)			162		123,992
Envision Healthcare Corp. 8.75%, 10/15/26(e)			3,093		1,776,743
Grifols SA 3.20%, 5/01/25(e)	EUR		5,083		5,803,539
Hadrian Merger Sub, Inc. 8.50%, 5/01/26(e)	U.S.$		1,361		1,340,762
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5.50%, 4/15/25(e)			548		182,029
5.625%, 10/15/23(e)			107		38,507
MEDNAX, Inc. 6.25%, 1/15/27(e)			75		74,258
Post Holdings, Inc. 5.50%, 12/15/29(e)			1,008		1,063,319
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/26(e)			2,540		2,788,006

38    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Spectrum Brands, Inc. 5.75%, 7/15/25	U.S.$		1,334	$	1,393,136
Sunshine Mid BV 6.50%, 5/15/26(e)	EUR		2,077		2,389,539
Tenet Healthcare Corp. 8.125%, 4/01/22	U.S.$		1,359		1,470,424
Vizient, Inc. 6.25%, 5/15/27(e)			561		605,538
					24,284,975
Energy – 1.0%
Antero Resources Corp. 5.125%, 12/01/22			1,908		1,431,744
Berry Petroleum Co. LLC 6.375%, 9/15/22(h)(k)(l)(m)			1,904		– 0	–
California Resources Corp. 8.00%, 12/15/22(e)			943		292,330
Carrizo Oil & Gas, Inc. 6.25%, 4/15/23(p)			1,252		1,176,342
Cheniere Energy Partners LP 4.50%, 10/01/29(e)			1,778		1,812,422
Chesapeake Energy Corp. 7.00%, 10/01/24			2,645		1,794,500
Denbury Resources, Inc. 7.75%, 2/15/24(e)			2,108		1,548,979
9.25%, 3/31/22(e)			871		722,068
Diamond Offshore Drilling, Inc. 7.875%, 8/15/25			2,642		2,108,210
EP Energy LLC/Everest Acquisition Finance, Inc. 7.75%, 9/01/22(m)(n)			492		1,230
9.375%, 5/01/24(e)(m)(n)			1,384		31,957
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 5/15/26			1,149		1,062,882
6.50%, 10/01/25			179		170,145
Gran Tierra Energy, Inc. 7.75%, 5/23/27(e)			1,084		1,035,675
Gulfport Energy Corp. 6.00%, 10/15/24			280		179,920
6.375%,5/15/25-1/15/26			2,469		1,484,925
Hess Infrastructure Partners LP/Hess Infrastructure Partners Finance Corp. 5.625%, 2/15/26(e)			2,739		2,865,049
HighPoint Operating Corp. 7.00%, 10/15/22			807		733,184
Indigo Natural Resources LLC 6.875%, 2/15/26(e)			2,570		2,348,440

abfunds.com AB INCOME FUND    ^|    39

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Nabors Industries, Inc. 5.50%, 1/15/23	U.S.$		845	$	711,084
NGL Energy Partners LP/NGL Energy Finance Corp. 7.50%, 11/01/23			596		594,641
Nine Energy Service, Inc. 8.75%, 11/01/23(e)			1,313		989,083
Noble Holding International Ltd. 7.75%, 1/15/24			279		167,400
Parkland Fuel Corp. 6.00%, 4/01/26(e)			2,841		3,005,608
PDC Energy, Inc. 5.75%, 5/15/26			1,075		992,945
QEP Resources, Inc. 5.25%, 5/01/23			581		553,333
5.625%, 3/01/26			1,571		1,412,345
Range Resources Corp. 5.00%,8/15/22-3/15/23			374		330,926
Rowan Cos., Inc. 5.85%, 1/15/44			436		188,321
SandRidge Energy, Inc. 7.50%, 2/15/23(h)(k)(l)(m)			1,259		– 0	–
SM Energy Co. 5.625%, 6/01/25			685		581,291
SRC Energy, Inc. 6.25%, 12/01/25			703		657,354
Sunoco LP/Sunoco Finance Corp. 5.50%, 2/15/26			992		1,026,869
5.875%, 3/15/28			1,164		1,223,853
6.00%, 4/15/27			87		92,467
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.50%, 7/15/27(e)			775		830,071
Transocean Phoenix 2 Ltd. 7.75%, 10/15/24(e)			560		579,981
Transocean, Inc. 7.50%, 1/15/26(e)			1,061		944,587
9.00%, 7/15/23(e)			1,262		1,281,839
Vantage Drilling International 7.125%, 4/01/23(h)(k)(l)(m)			3,068		– 0	–
Vine Oil & Gas LP/Vine Oil & Gas Finance Corp. 8.75%, 4/15/23(e)			3,507		1,343,497
Whiting Petroleum Corp. 5.75%, 3/15/21			316		297,008
6.25%, 4/01/23			732		529,492
6.625%, 1/15/26			87		53,849
					39,187,846

40    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Other Industrial – 0.3%
American Builders & Contractors Supply Co., Inc. 4.00%, 1/15/28(e)	U.S.$		1,133	$	1,130,451
IAA, Inc. 5.50%, 6/15/27(e)			869		932,081
KAR Auction Services, Inc. 5.125%, 6/01/25(e)			75		78,395
Laureate Education, Inc. 8.25%, 5/01/25(e)			992		1,076,806
Performance Food Group, Inc. 5.50%, 10/15/27(e)			909		963,449
Travis Perkins PLC 4.50%, 9/07/23(e)	GBP		5,457		7,369,147
					11,550,329
Services – 0.3%
Arena Luxembourg Finance SARL 2.875%, 11/01/24(e)	EUR		3,743		4,330,653
Carlson Travel, Inc. 6.75%, 12/15/23(e)	U.S.$		910		934,534
eDreams ODIGEO SA 5.50%, 9/01/23(e)	EUR		1,327		1,560,100
GWB-CR Security Corp. 9.50%, 11/01/27(e)	U.S.$		1,750		1,797,127
Harsco Corp. 5.75%, 7/31/27(e)			3,030		3,168,956
Monitronics International, Inc. Zero Coupon, 4/01/20(h)(k)(l)(m)			1,835		– 0	–
Prime Security Services Borrower LLC/Prime Finance, Inc. 5.25%, 4/15/24(e)			75		76,619
Refinitiv US Holdings, Inc. 8.25%, 11/15/26(e)			348		390,797
Team Health Holdings, Inc. 6.375%, 2/01/25(e)(p)			692		447,752
					12,706,538
Technology – 0.2%
APX Group, Inc. 7.875%, 12/01/22			922		920,645
Banff Merger Sub, Inc. 9.75%, 9/01/26(e)			2,054		1,917,388
CommScope, Inc. 5.50%, 3/01/24(e)			499		506,325
6.00%, 3/01/26(e)			589		605,145
8.25%, 3/01/27(e)			1,105		1,046,048

abfunds.com AB INCOME FUND    ^|    41

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
IQVIA, Inc. 3.25%, 3/15/25(e)	EUR		1,060	$	1,209,480
NCR Corp. 5.75%, 9/01/27(e)	U.S.$		473		483,784
6.125%, 9/01/29(e)			366		383,714
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 2/01/23(e)			1,257		1,234,487
Xerox Corp. 4.125%, 3/15/23			27		27,537
					8,334,553
Transportation - Services – 0.4%
Algeco Global Finance PLC 8.00%, 2/15/23(e)			2,258		2,229,030
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.25%, 3/15/25(e)			955		983,650
5.75%, 7/15/27(e)			787		809,123
Europcar Mobility Group 4.125%, 11/15/24(e)	EUR		1,936		2,038,671
Heathrow Finance PLC 3.875%, 3/01/27(e)	GBP		3,945		5,128,144
Herc Holdings, Inc. 5.50%, 7/15/27(e)	U.S.$		1,193		1,246,434
Hertz Corp. (The) 5.50%, 10/15/24(e)			1,478		1,469,428
United Rentals North America, Inc. 6.50%, 12/15/26			1,229		1,331,474
XPO Logistics, Inc. 6.75%, 8/15/24(e)			1,670		1,814,121
					17,050,075
					282,492,036
Financial Institutions – 2.5%
Banking – 1.6%
Banco Bilbao Vizcaya Argentaria SA 5.875%,5/24/22-9/24/23(e)(j)	EUR		6,400		7,528,407
Series 9 6.50%, 3/05/25(j)	U.S.$		1,800		1,856,610
Banco Santander SA 6.25%, 9/11/21(e)(j)	EUR		1,800		2,132,649
6.75%, 4/25/22(e)(j)			1,900		2,304,742
Barclays PLC 7.125%, 6/15/25(j)	GBP		333		472,106
7.25%, 3/15/23(e)(j)			1,350		1,875,505
8.00%, 12/15/20(j)	EUR		614		733,565

42    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Citigroup, Inc. 5.95%, 1/30/23(j)	U.S.$		2,055	$	2,172,936
Series O 5.875%, 3/27/20(j)			524		531,163
Series Q 5.95%, 8/15/20(j)			927		945,670
Series T 6.25%, 8/15/26(j)			1,388		1,571,702
Series U 5.00%, 9/12/24(j)			2,540		2,623,972
Citizens Financial Group, Inc. Series A 5.50%, 4/06/20(j)			222		224,220
Credit Suisse Group AG 6.25%, 12/18/24(e)(j)			640		682,400
6.375%, 8/21/26(e)(j)			3,961		4,179,687
7.50%,7/17/23-12/11/23(e)(j)			7,239		7,873,754
Danske Bank A/S 5.875%, 4/06/22(e)(j)	EUR		3,302		3,926,700
Goldman Sachs Group, Inc. (The) Series L 6.065% (LIBOR 3 Month + 3.88%), 12/02/19(d)(j)	U.S.$		54		54,201
Series M 5.375%, 5/10/20(j)			738		745,668
HSBC Finance Corp. 6.676%, 1/15/21			2,765		2,890,476
Morgan Stanley Series J 5.55%, 7/15/20(j)			847		861,035
Royal Bank of Scotland Group PLC 8.625%, 8/15/21(j)			3,800		4,087,736
Societe Generale SA 8.00%, 9/29/25(e)(j)			2,015		2,304,314
Standard Chartered PLC 3.446% (LIBOR 3 Month + 1.51%), 1/30/27(d)(e)(j)			7,800		6,528,834
7.50%, 4/02/22(e)(j)			1,278		1,354,680
7.75%, 4/02/23(e)(j)			265		288,900
UniCredit SpA 9.25%, 6/03/22(e)(j)	EUR		2,700		3,470,534
					64,222,166
Brokerage – 0.1%
LPL Holdings, Inc. 5.75%, 9/15/25(e)	U.S.$		1,169		1,218,846
NFP Corp. 6.875%, 7/15/25(e)			1,660		1,636,163
					2,855,009

abfunds.com AB INCOME FUND    ^|    43

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.1%
Compass Group Diversified Holdings LLC 8.00%, 5/01/26(e)	U.S.$		2,095	$	2,262,956
Enova International, Inc. 8.50%, 9/01/24(e)			1,418		1,325,958
goeasy Ltd. 7.875%, 11/01/22(e)			844		877,625
Jefferies Finance LLC/JFINCo-Issuer Corp. 6.25%, 6/03/26(e)			823		843,756
Lincoln Financing SARL 3.625%, 4/01/24(e)	EUR		759		864,306
					6,174,601
Insurance – 0.2%
Acrisure LLC/Acrisure Finance, Inc. 7.00%, 11/15/25(e)	U.S.$		1,414		1,299,310
10.125%, 8/01/26(e)			831		860,451
Alliant Holdings Intermediate LLC/Alliant HoldingsCo-Issuer 6.75%, 10/15/27(e)			1,620		1,683,860
ASR Nederland NV 4.625%, 10/19/27(e)(j)	EUR		1,040		1,206,308
Polaris Intermediate Corp. 8.50% (8.50% Cash or 9.25% PIK), 12/01/22(e)(o)	U.S.$		2,692		2,255,629
WellCare Health Plans, Inc. 5.375%, 8/15/26(e)			75		80,032
					7,385,590
Other Finance – 0.3%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 7/15/26(e)			454		484,554
9.75%, 7/15/27(e)			1,513		1,591,570
Intrum AB 2.75%, 7/15/22(e)	EUR		633		714,809
3.00%, 9/15/27(e)			1,490		1,610,946
3.50%, 7/15/26(e)			543		608,636
LHC3 PLC 4.125% (4.125% Cash or 4.875% PIK), 8/15/24(e)(o)			4,234		4,872,344
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. 6.75%, 6/01/25(e)	U.S.$		2,000		2,051,000
					11,933,859

44    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.2%
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 5.75%, 5/15/26(e)	U.S.$		2,479	$	2,588,274
Iron Mountain, Inc. 4.875%,9/15/27-9/15/29(e)			1,110		1,135,181
MGM Growth Properties Operating Partnership LP/MGP FinanceCo-Issuer, Inc. 5.75%, 2/01/27(e)			1,187		1,336,657
Realogy Group LLC/RealogyCo-Issuer Corp. 9.375%, 4/01/27(e)			2,479		2,435,990
					7,496,102
					100,067,327
Utility – 0.2%
Electric – 0.2%
Calpine Corp. 5.375%, 1/15/23			624		634,171
5.50%, 2/01/24			1,308		1,320,518
5.75%, 1/15/25			520		533,588
NRG Energy, Inc. 6.625%, 1/15/27			75		81,548
Talen Energy Supply LLC 6.50%, 6/01/25			394		295,933
7.25%, 5/15/27(e)			929		926,436
10.50%, 1/15/26(e)			1,681		1,426,429
Vistra Operations Co. LLC 5.625%, 2/15/27(e)			75		79,888
					5,298,511
Total Corporates –Non-Investment Grade (cost $400,289,499)					387,857,874
EMERGING MARKETS – SOVEREIGNS – 3.0%
Angola – 0.1%
Angolan Government International Bond 8.25%, 5/09/28(e)			460		480,412
9.50%, 11/12/25(e)			4,256		4,793,320
					5,273,732
Bahamas – 0.1%
Bahamas Government International Bond 6.00%, 11/21/28(e)			2,300		2,494,062
Bahrain – 0.1%
Bahrain Government International Bond 6.75%, 9/20/29(e)			1,709		1,943,987

abfunds.com AB INCOME FUND    ^|    45

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
7.00%, 10/12/28(e)	U.S.$		1,288	$	1,485,225
CBB International Sukuk Programme Co. SPC 4.50%, 3/30/27(e)			1,859		1,919,418
					5,348,630
Dominican Republic – 0.3%
Dominican Republic International Bond 6.875%, 1/29/26(e)			6,782		7,744,196
7.50%, 5/06/21(e)			3,333		3,478,334
					11,222,530
Ecuador – 0.2%
Ecuador Government International Bond 8.875%, 10/23/27(e)			1,350		1,266,047
9.65%, 12/13/26(e)			734		723,449
10.50%, 3/24/20(e)			262		265,602
10.75%,3/28/22-1/31/29(e)			6,753		7,150,483
					9,405,581
Egypt – 0.5%
Egypt Government International Bond 6.125%, 1/31/22(e)			5,970		6,171,487
6.20%, 3/01/24(e)			4,724		4,983,820
6.588%, 2/21/28(e)			1,217		1,238,298
7.50%, 1/31/27(e)			6,064		6,571,860
					18,965,465
El Salvador – 0.1%
El Salvador Government International Bond 7.125%, 1/20/50(e)			628		642,915
7.375%, 12/01/19(e)			1,427		1,431,013
					2,073,928
Ghana – 0.0%
Ghana Government International Bond 10.75%, 10/14/30(e)			693		876,645
Honduras – 0.2%
Honduras Government International Bond 6.25%, 1/19/27(e)			1,555		1,668,223
7.50%, 3/15/24(e)			3,298		3,642,229
8.75%, 12/16/20(e)			3,400		3,615,688
					8,926,140
Ivory Coast – 0.1%
Ivory Coast Government International Bond 6.375%, 3/03/28(e)			2,440		2,519,300

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Kenya – 0.2%
Kenya Government International Bond 6.875%, 6/24/24(e)	U.S.$		620	$	659,525
7.00%, 5/22/27(e)			1,680		1,757,700
7.25%, 2/28/28(e)			1,639		1,725,047
8.00%, 5/22/32(e)			3,420		3,646,575
					7,788,847
Lebanon – 0.1%
Lebanon Government International Bond 6.65%, 4/22/24(e)			507		288,990
6.85%, 3/23/27(e)			1,453		806,415
8.25%, 4/12/21(e)			1,410		979,950
Series G 6.20%, 2/26/25(e)			1,588		905,160
6.60%, 11/27/26(e)			1,284		712,620
					3,693,135
Nigeria – 0.2%
Nigeria Government International Bond 5.625%, 6/27/22			248		255,983
6.75%, 1/28/21(e)			2,136		2,211,427
7.625%, 11/21/25(e)			3,305		3,600,384
7.875%, 2/16/32(e)			426		439,313
					6,507,107
Oman – 0.3%
Oman Government International Bond 4.125%, 1/17/23(e)			5,200		5,219,500
4.875%, 2/01/25(e)			1,810		1,819,050
6.00%, 8/01/29(e)			4,272		4,272,000
					11,310,550
Pakistan – 0.0%
Pakistan Government International Bond 6.875%, 12/05/27(e)			245		244,694
Senegal – 0.1%
Senegal Government International Bond 6.25%, 5/23/33(e)			608		621,490
6.75%, 3/13/48(e)			3,730		3,662,394
8.75%, 5/13/21(e)			864		937,440
					5,221,324
Sri Lanka – 0.2%
Sri Lanka Government International Bond 6.125%, 6/03/25(e)			2,000		1,972,500
6.20%, 5/11/27(e)			685		656,530
6.85%, 3/14/24(e)			3,325		3,432,399
7.85%, 3/14/29(e)			2,144		2,208,320
					8,269,749

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Turkey – 0.2%
Turkey Government International Bond 3.25%, 3/23/23	U.S.$		3,685	$	3,500,750
4.875%, 10/09/26			265		248,520
7.375%, 2/05/25			1,341		1,439,899
7.50%, 11/07/19			2,881		2,880,100
					8,069,269
Zambia – 0.0%
Zambia Government International Bond 8.50%, 4/14/24(e)			1,217		859,506
Total Emerging Markets – Sovereigns (cost $117,852,532)					119,070,194
ASSET-BACKED SECURITIES – 2.4%
Other ABS - Fixed Rate – 1.3%
Atlas Ltd. Series2014-1, Class B 6.875%, 12/15/39(h)(k)(l)			1,080		1,037,221
CLUB Credit Trust Series2017-P2, Class C 4.91%, 1/15/24(e)(h)			2,191		2,229,610
Series2018-P3, Class C 5.54%, 1/15/26(e)(h)			2,200		2,271,944
Consumer Loan Underlying Bond Certificate Issuer Trust I Series2018-20, Class PT 9.064%, 11/16/43(e)(h)			3,352		3,319,346
Series2019-36, Class PT 15.13%, 10/17/44(e)(h)			2,191		2,151,265
Series2019-43, Class PT 7.995%, 11/15/44(e)(h)			1,867		1,849,974
Consumer Loan Underlying Bond Credit Trust Series2018-P1, Class C 5.21%, 7/15/25(e)(h)			4,255		4,353,925
Marlette Funding Trust Series2018-3A, Class C 4.63%, 9/15/28(e)(h)			4,539		4,669,266
Series2018-4A, Class C 4.91%, 12/15/28(e)(h)			558		577,535
Series2019-1A, Class C 4.42%, 4/16/29(e)(h)			4,409		4,500,230
Series2019-2A, Class C 4.11%, 7/16/29(e)(h)			2,692		2,731,027
Series2019-3A, Class C 3.79%, 9/17/29(e)(h)			4,413		4,448,476

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
SoFi Consumer Loan Program LLC Series2016-1, Class R Zero Coupon, 8/25/25(f)(h)(l)	U.S.$		4,340	$	1,174,911
Series2016-5, Class R Zero Coupon, 9/25/28(f)(h)(l)			24		316,525
Series2017-5, Class R1 Zero Coupon, 9/25/26(f)(h)(l)			17		633,562
SoFi Consumer Loan Program Trust Series2018-1, Class R1 Zero Coupon, 2/25/27(f)(h)(l)			37		2,066,499
Series2018-2, Class C 4.25%, 4/26/27(e)(h)			1,400		1,442,952
Series2018-3, Class C 4.67%, 8/25/27(e)(h)			4,611		4,834,256
Series2019-3, Class D 3.89%, 5/25/28(e)(h)			5,378		5,454,320
Series2019-4, Class D 3.48%, 8/25/28(e)(h)			3,000		3,026,215
					53,089,059
Autos - Fixed Rate – 1.1%
Avis Budget Rental Car Funding AESOP LLC Series2018-1A, Class C 4.73%, 9/20/24(e)			2,372		2,506,161
CPS Auto Receivables Trust Series2016-C, Class E 8.39%, 9/15/23(e)			2,500		2,623,296
Series2017-C, Class E 5.72%, 9/16/24(e)			1,400		1,443,323
Series2018-B, Class E 5.61%, 12/16/24(e)			1,187		1,255,286
CPS Auto Trust Series2016-D, Class E 6.86%, 4/15/24(e)			3,000		3,132,630
Series2017-A, Class E 7.07%, 4/15/24(e)			4,200		4,408,747
Exeter Automobile Receivables Trust Series2017-1A, Class D 6.20%, 11/15/23(e)			2,000		2,101,795
Series2017-3A, Class D 5.28%, 10/15/24(e)			4,370		4,554,609
Series2019-2A, Class E 4.68%, 5/15/26(e)			2,670		2,744,035
Series2019-3A, Class E 4.00%, 8/17/26(e)			6,855		6,940,321
First Investors Auto Owner Trust Series2017-1A, Class E 5.86%, 11/15/23(e)			450		465,522

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Flagship Credit Auto Trust Series2017-1, Class E 6.46%, 12/15/23(e)	U.S.$		1,000	$	1,055,573
Series2018-3, Class D 4.15%, 12/16/24(e)			670		698,870
Hertz Vehicle Financing II LP Series2019-1A, Class C 4.99%, 3/25/23(e)			1,984		2,061,498
Series2019-2A, Class C 4.26%, 5/25/25(e)			4,400		4,567,406
Westlake Automobile Receivables Trust Series2019-2A, Class E 4.02%, 4/15/25(e)			2,551		2,573,632
					43,132,704
Total Asset-Backed Securities (cost $98,114,593)					96,221,763
EMERGING MARKETS – CORPORATE BONDS – 1.8%
Industrial – 1.6%
Basic – 0.5%
Consolidated Energy Finance SA 6.875%, 6/15/25(e)			787		772,629
CSN Resources SA 7.625%,2/13/23-4/17/26(e)			4,976		5,119,195
First Quantum Minerals Ltd. 7.25%, 5/15/22(e)(p)			910		916,825
7.50%, 4/01/25(e)			410		410,513
HTA Group Ltd./Mauritius 9.125%, 3/08/22(e)			3,256		3,389,984
Klabin Austria GmbH 5.75%, 4/03/29(e)			3,736		3,960,160
Vedanta Resources Finance II PLC 8.00%, 4/23/23(e)			3,192		3,215,940
9.25%, 4/23/26(e)			1,040		1,036,100
Vedanta Resources Ltd. 6.375%, 7/30/22(e)			1,474		1,459,721
					20,281,067
Capital Goods – 0.0%
Odebrecht Finance Ltd. 4.375%, 4/25/25(e)(m)(n)			6,760		491,325
5.25%, 6/27/29(e)(m)(n)			2,103		150,496
					641,821
Communications - Telecommunications – 0.2%
Digicel Group One Ltd. 8.25%, 12/30/22(f)			1,338		783,864

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Digicel Group Two Ltd. 8.25%, 9/30/22(e)	U.S.$		1,456	$	364,000
Digicel Ltd. 6.00%, 4/15/21(e)			700		521,281
Millicom International Cellular SA 6.25%, 3/25/29(e)			1,505		1,631,484
6.625%, 10/15/26(e)			1,398		1,518,578
MTN Mauritius Investments Ltd. 5.373%, 2/13/22(e)			701		724,659
Network i2i Ltd. 5.65%, 1/15/25(e)(j)			3,450		3,238,860
					8,782,726
Consumer Cyclical - Other – 0.1%
Melco Resorts Finance Ltd. 5.625%, 7/17/27(e)			2,333		2,440,901
MGM China Holdings Ltd. 5.375%, 5/15/24(e)			569		596,561
5.875%, 5/15/26(e)			598		633,880
Servicios Corporativos Javer SAB de CV 9.875%, 4/06/21(e)			884		879,580
					4,550,922
ConsumerNon-Cyclical – 0.5%
BRF SA 4.875%, 1/24/30(e)			1,133		1,125,805
Central American Bottling Corp. 5.75%, 1/31/27(e)			718		755,246
Cosan Ltd. 5.50%, 9/20/29(e)			437		453,169
Inretail Pharma SA 5.375%, 5/02/23(e)			2,434		2,567,870
MARB BondCo PLC 6.875%, 1/19/25(e)			3,730		3,881,531
Marfrig Holdings Europe BV 8.00%, 6/08/23(e)			2,420		2,520,581
Minerva Luxembourg SA 5.875%, 1/19/28(e)			200		203,588
6.50%, 9/20/26(e)			3,300		3,456,750
Tonon Luxembourg SA 6.50%, 10/31/24(f)(h)(l)(o)			736		22,075
Turkiye Sise ve Cam Fabrikalari AS 6.95%, 3/14/26(e)			2,655		2,759,541
Virgolino de Oliveira Finance SA 10.50%, 1/28/18(f)(m)(q)			4,738		177,201
10.875%, 1/13/20(f)(m)(n)			750		134,438
11.75%, 2/09/22(f)(m)(n)			1,690		42,081
					18,099,876

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Energy – 0.1%
Medco Oak Tree Pte Ltd. 7.375%, 5/14/26(e)	U.S.$		1,600	$	1,623,082
Medco Platinum Road Pte Ltd. 6.75%, 1/30/25(e)			1,532		1,549,235
MV24 Capital BV 6.748%, 6/01/34(e)			1,792		1,872,640
					5,044,957
Other Industrial – 0.1%
KOC Holding AS 6.50%, 3/11/25(e)			1,808		1,883,710
Transportation - Airlines – 0.1%
Latam Finance Ltd. 7.00%, 3/01/26(e)			1,500		1,614,375
Transportation - Services – 0.0%
Rumo Luxembourg SARL 7.375%, 2/09/24(e)			1,250		1,339,125
					62,238,579
Utility – 0.1%
Electric – 0.1%
AES Gener SA 6.35%, 10/07/79(e)			1,816		1,824,789
Cemig Geracao e Transmissao SA 9.25%, 12/05/24(e)			1,219		1,421,278
Light Servicos de Eletricidade SA/Light Energia SA 7.25%, 5/03/23(e)			458		492,779
Star Energy Geothermal Wayang Windu Ltd. 6.75%, 4/24/33(e)			1,127		1,183,350
Terraform Global Operating LLC 6.125%, 3/01/26(f)			695		712,375
					5,634,571
Financial Institutions – 0.1%
Banking – 0.1%
Fidelity Bank PLC 10.50%, 10/16/22(e)			1,300		1,456,000
Finance – 0.0%
Unifin Financiera SAB de CV 7.00%, 1/15/25(e)			575		571,586
					2,027,586
Total Emerging Markets – Corporate Bonds (cost $83,925,144)					69,900,736

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
BANK LOANS – 1.6%
Industrial – 1.4%
Basic – 0.0%
Nouryon Finance B.V. (fka AkzoNobel) 5.19% (LIBOR 1 Month + 3.25%), 10/01/25(t)	U.S.$		170	$	165,272
Capital Goods – 0.2%
Brookfield WEC Holdings Inc. (fka Westinghouse Electric Company LLC) 5.286% (LIBOR 1 Month + 3.50%), 8/01/25(t)			756		751,115
BWay Holding Company 5.234% (LIBOR 3 Month + 3.25%), 4/03/24(t)			2,138		2,078,323
Granite Holdings US Acquisition Corporation 7.354% (LIBOR 3 Month + 5.25%), 9/30/26(h)(t)			3,634		3,434,130
Panther BF Aggregator 2 L P 5.30% (LIBOR 1 Month + 3.50%), 4/30/26(t)			410		404,022
					6,667,590
Communications - Media – 0.0%
Diamond Sports Group, LLC 5.08% (LIBOR 1 Month + 3.25%), 8/24/26(t)			361		361,929
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 6.032% (LIBOR 1 Month + 4.00%), 5/01/26(t)			281		281,403
Univision Communications Inc. 4.536% (LIBOR 1 Month + 2.75%), 3/15/24(t)			1,060		1,021,172
					1,664,504
Communications - Telecommunications – 0.0%
Intelsat Jackson Holdings S.A. 6.432% (LIBOR 6 Month + 4.50%), 1/02/24			150		151,500
6.625%, 1/02/24			252		257,114
					408,614
Consumer Cyclical - Automotive – 0.0%
Navistar, Inc. 5.42% (LIBOR 1 Month + 3.50%), 11/06/24(t)			649		641,597

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Entertainment – 0.1%
Merlin Entertainments PLC 10/16/26(u)	U.S.$		1,784	$	1,789,661
Consumer Cyclical - Other – 0.1%
Scientific Games International, Inc. 4.536% (LIBOR 1 Month + 2.75%), 8/14/24(t)			2,597		2,565,163
Stars Group Holdings B.V. 5.604% (LIBOR 3 Month + 3.50%), 7/10/25(t)			697		699,959
					3,265,122
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. (aka Arby’s / Buffalo Wild Wings) 5.193% (LIBOR 2 Month + 3.25%), 2/05/25(t)			1		1,426
5.216% (LIBOR 3 Month + 3.25%), 2/05/25(t)			565		560,548
Whatabrands LLC 5.516% (LIBOR 3 Month + 3.25%), 8/02/26(t)			608		609,126
					1,171,100
Consumer Cyclical - Retailers – 0.1%
Bass Pro Group, LLC 9/25/24(u)			1,007		970,273
PetSmart, Inc. 5.93% (LIBOR 1 Month + 4.00%), 3/11/22(t)			1,215		1,182,548
Specialty Building Products Holdings, LLC 7.536% (LIBOR 1 Month + 5.75%), 10/01/25(t)			1,016		1,007,586
					3,160,407
Consumer Non - Cyclical – 0.5%
Air Medical Group Holdings, Inc. 6.036% (LIBOR 1 Month + 4.25%), 3/14/25(t)			1,167		1,043,540
Aldevron, L.L.C. 6.232% (LIBOR 3 Month + 4.25%), 10/12/26(h)(t)			2,609		2,617,453
Alphabet Holding Company, Inc. (aka Nature’s Bounty) 9.536% (LIBOR 1 Month + 7.75%), 9/26/25(t)			3,524		3,000,089

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
athenahealth, Inc. 6.681% (LIBOR 3 Month + 4.50%), 2/11/26(t)	U.S.$		5,023	$	4,977,508
BI-LO, LLC 10.085% (LIBOR 3 Month + 8.00%), 5/31/24(t)			1,581		1,476,111
10.127% (LIBOR 3 Month + 8.00%), 5/31/24(t)			1,542		1,440,137
10.187% (LIBOR 3 Month + 8.00%), 5/31/24(t)			1,617		1,509,726
Regionalcare Hospital Partners Holdings, Inc. 6.304% (LIBOR 1 Month + 4.50%), 11/16/25(t)			1,331		1,326,870
U.S. Renal Care, Inc. 6.786% (LIBOR 1 Month + 5.00%), 6/26/26(t)			3,010		2,775,100
					20,166,534
Energy – 0.1%
CITGO Petroleum Corporation 7.104% (LIBOR 3 Month + 5.00%), 3/28/24(h)(t)			1,776		1,776,145
Other Industrial – 0.0%
American Tire Distributors, Inc. 8.150% (LIBOR 3 Month + 6.00%), 9/01/23(k)(t)			292		290,096
9.624% (LIBOR 3 Month + 7.50%), 9/02/24(k)(t)			741		662,429
KAR Auction Services, Inc. 4.125% (LIBOR 1 Month + 2.25%), 9/19/26(h)(t)			202		202,728
					1,155,253
Services – 0.1%
Allied Universal Holdco LLC (fka USAGM Holdco, LLC) 6.507% (LIBOR 3 Month + 4.25%), 7/10/26(t)			377		374,234
Garda World Security Corporation 10/30/26(u)			567		563,456
Parexel International Corporation 4.536% (LIBOR 1 Month + 2.75%), 9/27/24(t)			632		602,660
Team Health Holdings, Inc. 4.536% (LIBOR 1 Month + 2.75%), 2/06/24(t)			2,676		2,054,042

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Verscend Holding Corp. 6.286% (LIBOR 1 Month + 4.50%), 8/27/25(t)	U.S.$		1,975	$	1,974,901
					5,569,293
Technology – 0.2%
Avaya Inc. 6.164% (LIBOR 1 Month + 4.25%), 12/15/24(t)			1,739		1,654,992
6.171% (LIBOR 1 Month + 4.25%), 12/15/24(t)			1,037		987,306
Boxer Parent Company Inc. (aka BMC Software, Inc.) 6.036% (LIBOR 1 Month + 4.25%), 10/02/25(t)			2,680		2,475,902
Veritas US Inc. 6.286% (LIBOR 1 Month + 4.50%), 1/27/23(t)			1,159		1,074,009
6.604% (LIBOR 3 Month + 4.50%), 1/27/23(t)			226		209,752
					6,401,961
					54,003,053
Financial Institutions – 0.2%
Finance – 0.1%
Ellie Mae, Inc. 5.863% (LIBOR 2 Month + 4.00%), 4/17/26(u)			2,029		2,015,707
Jefferies Finance LLC 5.75% (LIBOR 1 Month + 3.75%), 6/03/26(h)(t)			559		548,126
					2,563,833
Insurance – 0.1%
Hub International Limited 4/25/25(u)			2,891		2,885,467
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 5.786% (LIBOR 1 Month + 4.00%), 9/03/26(u)			2,277		2,257,231
					5,142,698
					7,706,531
Total Bank Loans (cost $63,327,448)					61,709,584

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 1.5%
United States – 1.5%
U.S. Treasury Inflation Index 0.125%, 7/15/24 (TIPS) (cost $60,573,436)	U.S.$		60,643	$	60,708,829
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.5%
Non-Agency Fixed Rate CMBS – 1.1%
Banc of America Commercial Mortgage Trust Series 2016-UB10, Class C 4.91%, 7/15/49			372		405,959
CD Mortgage Trust Series2017-CD3, Class XA 1.026%, 2/10/50(i)			14,920		898,632
CFCRE Commercial Mortgage Trust Series2016-C4, Class XA 1.712%, 5/10/58(i)			14,476		1,258,266
Citigroup Commercial Mortgage Trust Series2016-C3, Class XA 1.172%, 11/15/49(i)			38,100		2,179,656
Commercial Mortgage Trust Series 2014-CR15, Class XA 0.943%, 2/10/47(i)			42,970		1,378,121
Series 2015-CR27, Class XA 1.105%, 10/10/48(i)			7,404		328,753
CSAIL Commercial Mortgage Trust Series2015-C1, Class D 3.774%, 4/15/50(e)			670		658,148
GS Mortgage Securities Trust Series2011-GC5, Class D 5.39%, 8/10/44(e)			6,264		6,240,030
Series 2014-GC22, Class D 4.691%, 6/10/47(e)			1,805		1,769,800
Series2016-GS3, Class XA 1.256%, 10/10/49(i)			35,403		2,292,773
JP Morgan Chase Commercial Mortgage Securities Trust Series2012-C8, Class E 4.652%, 10/15/45(e)			2,103		2,072,806
Series2012-CBX, Class E 5.132%, 6/15/45(e)			1,863		1,798,091
Series2016-JP2, Class XA 1.829%, 8/15/49(i)			16,793		1,665,012
JPMBB Commercial Mortgage Securities Trust Series2014-C21, Class D 4.658%, 8/15/47(e)			1,050		992,155

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
LB-UBS Commercial Mortgage Trust Series2006-C6, Class AJ 5.452%, 9/15/39	U.S.$		1,130	$	659,458
Madison Avenue Trust Series 2013-650M, Class E 4.034%, 10/12/32(e)			920		917,881
Morgan Stanley Bank of America Merrill Lynch Trust Series2013-C9, Class D 4.123%, 5/15/46(e)			680		696,372
Series2014-C18, Class C 4.52%, 10/15/47			4,349		4,608,332
Series2015-C22, Class XA 1.082%, 4/15/48(i)			12,881		570,771
UBS Commercial Mortgage Trust Series2012-C1, Class D 5.57%, 5/10/45(e)			2,000		2,008,512
Series2017-C1, Class XA 1.57%, 6/15/50(i)			9,074		814,013
UBS-Barclays Commercial Mortgage Trust Series2013-C5, Class C 4.075%, 3/10/46(e)			277		283,951
Wells Fargo Commercial Mortgage Trust Series 2015-LC20, Class XA 1.334%, 4/15/50(i)			8,984		425,558
Series2016-C36, Class XA 1.318%, 11/15/59(i)			51,351		3,497,269
Series 2016-LC24, Class XA 1.678%, 10/15/49(i)			32,037		2,812,080
Series 2016-LC25, Class XA 0.997%, 12/15/59(i)			20,248		977,620
WFRBS Commercial Mortgage Trust Series2011-C4, Class E 5.23%, 6/15/44(e)			489		490,030
Series 2014-LC14, Class C 4.344%, 3/15/47			134		139,000
					42,839,049
Non-Agency Floating Rate CMBS – 0.4%
BFLD Trust Series 2019-DPLO, Class E 4.154% (LIBOR 1 Month + 2.24%), 10/15/34(d)(e)			11,227		11,226,967
CLNS Trust Series 2017-IKPR, Class F 6.427% (LIBOR 1 Month + 4.50%), 6/11/32(d)(e)			1,480		1,491,715

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
DBWF Mortgage Trust Series 2018-GLKS, Class E 4.865% (LIBOR 1 Month + 3.02%), 11/19/35(d)(e)	U.S.$		1,994	$	2,005,107
Morgan Stanley Capital I Trust Series2019-BPR, Class D 5.921% (LIBOR 1 Month + 4.00%), 5/15/36(d)(e)			1,651		1,650,973
					16,374,762
Agency CMBS – 0.0%
Government National Mortgage Association Series2006-32, Class XM 0.034%, 11/16/45(i)			239		223
Total Commercial Mortgage-Backed Securities (cost $59,258,118)					59,214,034
COLLATERALIZED LOAN OBLIGATIONS – 1.4%
CLO - Floating Rate – 1.4%
Apidos CLO Series2017-26A, Class D 8.103% (LIBOR 3 Month + 6.10%), 7/18/29(d)(e)(h)			550		510,529
Black Diamond CLO Ltd. Series2016-1A, Class A2AR 3.686% (LIBOR 3 Month + 1.75%), 4/26/31(d)(e)(h)			5,300		5,190,073
BlueMountain Fuji US CLO II Ltd. Series2017-2A, Class D 8.116% (LIBOR 3 Month + 6.15%), 10/20/30(d)(e)(h)			3,300		2,948,771
CBAM Ltd. Series2017-3A, Class E1 8.502% (LIBOR 3 Month + 6.50%), 10/17/29(d)(e)(h)			1,604		1,544,066
Series2018-7A, Class B1 3.566% (LIBOR 3 Month + 1.60%), 7/20/31(d)(e)(h)			1,996		1,969,819
Dryden Senior Loan Fund Series2017-49A, Class E 8.303% (LIBOR 3 Month + 6.30%), 7/18/30(d)(e)(h)			605		561,636
GoldenTree Loan Opportunities IX Ltd. Series2014-9A, Class DR2 4.928% (LIBOR 3 Month + 3.00%), 10/29/29(d)(e)(h)			2,815		2,668,144

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Greywolf CLO VI Ltd. Series2018-1A, Class A2 3.566% (LIBOR 3 Month + 1.63%), 4/26/31(d)(e)(h)	U.S.$		5,300	$	5,239,760
Halcyon Loan Advisors Funding Ltd. Series2018-1A, Class A2 3.766% (LIBOR 3 Month + 1.80%), 7/21/31(d)(e)(h)			1,826		1,775,357
Series2018-1A, Class C 5.166% (LIBOR 3 Month + 3.20%), 7/21/31(d)(e)(h)			2,000		1,830,540
Marble Point CLO XI Ltd. Series2017-2A, Class A 3.183% (LIBOR 3 Month + 1.18%), 12/18/30(d)(e)(h)			2,400		2,392,986
Northwoods Capital Ltd. Series 2018-12BA, Class B 3.969% (LIBOR 3 Month + 1.85%), 6/15/31(d)(e)(h)			1,350		1,321,676
OZLM Ltd. Series2014-7RA, Class CR 5.002% (LIBOR 3 Month + 3.00%), 7/17/29(d)(e)(h)			1,000		899,997
Series2018-18A, Class B 3.536% (LIBOR 3 Month + 1.55%), 4/15/31(d)(e)(h)			5,450		5,286,811
Rockford Tower CLO Ltd. Series2017-2A, Class D 5.451% (LIBOR 3 Month + 3.45%), 10/15/29(d)(e)(h)			4,444		4,336,126
Series2017-3A, Class A 3.156% (LIBOR 3 Month + 1.19%), 10/20/30(d)(e)(h)			1,931		1,926,771
Romark CLO III Ltd. Series2019-3A, Class A2 4.229% (LIBOR 3 Month + 2.07%), 7/15/32(d)(e)(h)			4,450		4,437,068
Series2019-3A, Class B 4.959% (LIBOR 3 Month + 2.80%), 7/15/32(d)(e)(h)			600		600,506
Sound Point CLO XIX Ltd. Series2018-1A, Class A 3.001% (LIBOR 3 Month + 1.00%), 4/15/31(d)(e)(h)			7,931		7,816,040
TIAA CLO II Ltd. Series2017-1A, Class A 3.246% (LIBOR 3 Month + 1.28%), 4/20/29(d)(e)(h)			1,000		1,000,106

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Venture CLO Ltd. Series2017-27A, Class D 5.966% (LIBOR 3 Month + 4.00%), 7/20/30(d)(e)(h)	U.S.$		1,591	$	1,561,220
Total Collateralized Loan Obligations (cost $57,492,642)					55,818,002
AGENCIES – 1.2%
Agency Debentures – 1.2%
Federal Home Loan Banks 5.50%, 7/15/36			8,695		12,538,886
Federal Home Loan Mortgage Corp. 6.25%, 7/15/32			10,400		15,316,496
6.75%, 3/15/31			4,000		5,936,320
Series GDIF 6.75%, 9/15/29			4,606		6,602,480
Residual Funding Corp. Principal Strip Zero Coupon, 7/15/20			5,277		5,211,248
Total Agencies (cost $42,018,885)					45,605,430
LOCAL GOVERNMENTS – PROVINCIAL BONDS – 0.8%
Canada – 0.8%
Province of Alberta Canada 3.40%, 12/01/23	CAD		5,934		4,780,765
Province of British Columbia Canada Series T 9.00%, 8/23/24			3,539		3,562,968
Province of Quebec Canada 8.50%, 4/01/26			12,134		12,793,719
Province of Saskatchewan Canada 3.20%, 6/03/24			12,746		10,246,154
Total Local Governments – Provincial Bonds (cost $30,995,559)					31,383,606
EMERGING MARKETS – TREASURIES – 0.7%
Argentina – 0.0%
Argentine Bonos del Tesoro 15.50%, 10/17/26(k)	ARS		2		10
Brazil – 0.3%
Brazil Notas do Tesouro Nacional Series F 10.00%, 1/01/25	BRL		47,870		14,012,848

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Dominican Republic – 0.1%
Dominican Republic International Bond 16.95%, 2/04/22(e)	DOP		149,900	$	3,268,734
South Africa – 0.3%
Republic of South Africa Government Bond Series 2023 7.75%, 2/28/23	ZAR		110,304		7,344,993
Series 2030 8.00%, 1/31/30			72,982		4,446,179
					11,791,172
Total Emerging Markets – Treasuries (cost $30,871,928)					29,072,764
GOVERNMENTS – SOVEREIGN BONDS – 0.5%
Qatar – 0.2%
Qatar Government International Bond 3.375%, 3/14/24(e)	U.S.$		4,399		4,599,704
3.875%, 4/23/23(e)			861		909,216
					5,508,920
South Africa – 0.3%
Republic of South Africa Government International Bond 4.30%, 10/12/28			425		410,231
4.85%, 9/30/29			9,846		9,747,176
5.875%, 6/22/30			2,797		2,968,037
					13,125,444
Total Governments – Sovereign Bonds (cost $18,499,209)					18,634,364
QUASI-SOVEREIGNS – 0.4%
Quasi-Sovereign Bonds – 0.4%
Bahrain – 0.1%
Oil and Gas Holding Co. BSCC (The) 7.625%, 11/07/24(e)			668		758,389
8.375%, 11/07/28(e)			3,912		4,591,710
					5,350,099
Indonesia – 0.0%
Indonesia Asahan Aluminium Persero PT 5.71%, 11/15/23(e)			277		304,700
Kazakhstan – 0.1%
KazMunayGas National Co. JSC 4.75%, 4/24/25(e)			768		837,840
5.375%, 4/24/30(e)			1,940		2,237,669
					3,075,509

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PORTFOLIO OF INVESTMENTS(continued)

			Principal Amount (000)		U.S. $ Value
Mexico – 0.2%
Petroleos Mexicanos 6.49%, 1/23/27(e)		U.S.$		1,455	$	1,550,303
6.50%, 1/23/29				403		420,329
6.84%, 1/23/30(e)				2,180		2,324,425
7.69%, 1/23/50(e)				2,173		2,357,270
						6,652,327
Panama – 0.0%
Aeropuerto Internacional de Tocumen SA 6.00%, 11/18/48(e)				1,017		1,264,131
United States – 0.0%
Citgo Holding, Inc. 9.25%, 8/01/24(e)				737		771,093
Total Quasi-Sovereigns (cost $15,646,071)						17,417,859
			Shares
COMMON STOCKS – 0.2%
Energy – 0.1%
Oil, Gas & Consumable Fuels – 0.1%
Berry Petroleum Corp.				137,229		1,288,580
Golden Energy Offshore Services AS(k)(m)				1,497,659		765,429
Paragon Litigation – Class A(h)(k)				10,360		2,072
Paragon Litigation – Class B(h)(k)				15,538		233,070
Tervita Corp.(m)				245,313		1,303,767
Vantage Drilling International(h)(k)(m)				5,303		981,055
						4,573,973
Consumer Discretionary – 0.1%
Auto Components – 0.1%	��
ATD New Holdings, Inc.(h)(k)(m)				29,486		825,608
Media – 0.0%
Ion Media Networks, Inc. – Class A(h)(k)(l)(m)				2,512		735,413
						1,561,021
Information Technology – 0.0%
IT Services – 0.0%
Paysafe Group Ltd.(h)(k)(l)				3,109		539,380
Software – 0.0%
Avaya Holdings Corp.(m)				34,528		417,444
Monitronics International, Inc.(h)(k)(l)				34,245		237,318
Monitronics International, Inc.(m)				34,103		262,593
						917,355
						1,456,735

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PORTFOLIO OF INVESTMENTS(continued)

Company		Shares		U.S. $ Value
Consumer Staples – 0.0%
Food & Staples Retailing – 0.0%
Southeastern Grocers, Inc. Npv(h)(k)(l)(m)			16,421	$	533,683
Industrials – 0.0%
Consumer Cyclical - Automotive – 0.0%
Exide Technologies(h)(k)(l)(m)			156,302		146,923
Exide Technologies/Old(h)(k)(l)(m)			45,970		43,212
					190,135
Communication Services – 0.0%
Media – 0.0%
Clear Channel Outdoor Holdings, Inc.(m)			33,826		78,814
iHeartMedia, Inc. – Class A(k)(m)			1,690		24,235
					103,049
Total Common Stocks (cost $12,237,591)					8,418,596
		Principal Amount (000)
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 0.1%
United States – 0.1%
Texas Transportation Commission State Highway Fund Series 2010B 5.178%, 4/01/30 (cost $2,560,000)	U.S.$		2,560		3,129,702
		Shares
PREFERRED STOCKS – 0.0%
Financial Institutions – 0.0%
Banking – 0.0%
Paysafe Holdings UK Ltd. 0.00%(h)(k)(l)(m) (cost $834,450)			890,661		890,661
		Principal Amount (000)
WHOLE LOAN TRUSTS – 0.0%
Performing Asset – 0.0%
Sheridan Auto Loan Holdings I LLC 10.00%,12/31/20-9/30/21(h)(k)(l)	U.S.$		1,753		322,369

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Sheridan Consumer Finance Trust 10.00%, 3/01/21(h)(k)(l)	U.S.$		165	$	165,291
Total Whole Loan Trusts (cost $1,918,509)					487,660
		Shares
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/22(m)			2,936		3,230
Encore Automotive Acceptance, expiring 7/05/31(h)(k)(l)(m)			12		– 0	–
Flexpath Capital, Inc., expiring 4/15/31(h)(k)(l)(m)			17,195		– 0	–
iHeartMedia, Inc., expiring 5/01/39(k)(m)			12,695		172,969
SandRidge Energy, Inc.,A-CW22, expiring 10/04/22(k)(m)			2,475		10
SandRidge Energy, Inc.,B-CW22, expiring 10/04/22(k)(m)			1,042		1
Total Warrants (cost $203,120)					176,210
SHORT-TERM INVESTMENTS – 2.0%
Investment Companies – 1.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(v)(w)(x) (cost $51,923,844)			51,923,844		51,923,844
		Principal Amount (000)
U.S. Treasury Bills – 0.6%
U.S. Treasury Bill Zero Coupon, 12/12/19 (cost $23,709,149)	U.S.$		23,761		23,720,380
Governments – Treasuries – 0.1%
Nigeria – 0.1%
Nigeria Treasury Bills Zero Coupon4/09/20-9/03/20 (cost $3,832,002)	NGN		1,550,367		3,870,018
Total Short-Term Investments (cost $79,464,995)					79,514,242
Total Investments – 116.7% (cost $4,568,649,683)					4,630,929,078
Other assets less liabilities – (16.7)%					(663,547,301	)
Net Assets – 100.0%				$	3,967,381,777

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PORTFOLIO OF INVESTMENTS(continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		216		December 2019	$	30,695,625	$	(250,368	)
U.S.T-Note 10 Yr (CBT) Futures		5,462		December 2019		711,681,531		(5,838,147	)
Sold Contracts
Euro Buxl 30 Yr Bond Futures		73		December 2019		17,094,287		907,530
Euro-BOBL Futures		451		December 2019		67,713,881		1,045,752
Euro-Bund Futures		68		December 2019		13,026,343		285,878
Euro-Schatz Futures		843		December 2019		105,367,949		577,310
U.S.T-Note 2 Yr (CBT) Futures		600		December 2019		129,360,937		176,419
U.S.T-Note 5 Yr (CBT) Futures		918		December 2019		109,428,469		872,137
							$	(2,223,489	)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA	RUB	2,264,988	USD	35,104		11/14/19	$	(172,356	)
Bank of America, NA	ZAR	154,951	USD	10,480		11/21/19		248,349
Bank of America, NA	GBP	15,093	USD	19,460		1/10/20		(136,781	)
BNP Paribas SA	USD	8,960	MXN	173,859		1/07/20		(8,308	)
Citibank, NA	USD	2,365	ZAR	34,637		11/21/19		(77,965	)
Citibank, NA	USD	5,382	EUR	4,809		1/16/20		9,435
Citibank, NA	USD	317	INR	22,891		1/16/20		2,228
Deutsche Bank AG	BRL	26,395	USD	6,305		11/04/19		(276,156	)
Deutsche Bank AG	USD	6,592	BRL	26,395		11/04/19		(10,520	)
Goldman Sachs Bank USA	BRL	26,395	USD	6,592		11/04/19		10,520
Goldman Sachs Bank USA	USD	6,627	BRL	26,395		11/04/19		(45,441	)
Goldman Sachs Bank USA	CAD	77,266	USD	58,241		11/22/19		(425,358	)
Goldman Sachs Bank USA	BRL	26,395	USD	6,616		12/03/19		46,826
Goldman Sachs Bank USA	MXN	871,746	USD	45,037		1/07/20		151,692
HSBC Bank USA	IDR	334,266,682	USD	23,665		11/21/19		(23,349	)
JPMorgan Chase Bank, NA	IDR	794,322,429	USD	55,423		11/21/19		(867,701	)
JPMorgan Chase Bank, NA	USD	25,030	CAD	32,952		11/22/19		(10,338	)
Morgan Stanley Capital Services, Inc.	USD	713	GBP	550		1/10/20		1,144

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PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Morgan Stanley Capital Services, Inc.	EUR	8,108	USD	8,982		1/16/20	$	(107,067	)
Morgan Stanley Capital Services, Inc.	USD	11,544	EUR	10,303		1/16/20		7,320
Natwest Markets PLC	AUD	2,975	USD	2,012		11/08/19		(39,301	)
Natwest Markets PLC	EUR	89,015	USD	98,117		1/16/20		(1,677,669	)
State Street Bank & Trust Co.	NZD	723	USD	462		11/07/19		(1,483	)
State Street Bank & Trust Co.	NOK	19,594	USD	2,197		1/08/20		65,572
							$	(3,336,707	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
iTraxx-Australia Series 32, 5 Year Index 12/20/24*		(1.00	)%		Quarterly		0.59	%	USD		65,200	$	(1,366,312	)	$	(1,074,869	)	$	(291,443	)
Sale Contracts
CDX-NAHY Series 32, 5 Year Index, 6/20/24*		5.00			Quarterly		3.15		USD		9,368		761,628			557,470			204,158
CDX-NAHY Series 33, 5 Year Index, 12/20/24*		5.00			Quarterly		3.40		USD		200,877		15,403,244			11,801,223			3,602,021
CDX-NAIG Series 33, 5 Year Index, 12/20/24		1.00			Quarterly		0.55		USD		11,500		264,020			226,601			37,419
Federative Republic of Brazil, 4.25%, 1/07/25, 12/20/24*		1.00			Quarterly		1.21		USD		6,750		(62,161	)		(104,046	)		41,885
iTraxx-Australia Series 32, 5 Year Index 12/20/24*		1.00			Quarterly		0.59		USD		65,200		1,366,311			1,285,875			80,436
iTraxx-Xover Series 32, 5 Year Index, 12/20/24*		5.00			Quarterly		2.40		EUR		56,050		8,063,837			8,167,379			(103,542	)
Republic of Colombia, 10.375%, 1/28/33, 12/20/24*		1.00			Quarterly		0.82		USD		6,750		68,217			33,404			34,813

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PORTFOLIO OF INVESTMENTS(continued)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Republic of South Africa, 5.50%, 3/09/20, 12/20/24*		1.00	%		Quarterly		1.88	%	USD		6,750	$	(275,777	)	$	(255,044	)	$	(20,733	)
Republic of Turkey, 11.875%, 1/15/30, 12/20/24*		1.00			Quarterly		3.34		USD		9,142		(963,219	)		(1,141,441	)		178,222
Russian Federation, 7.50%, 3/31/30, 12/20/24*		1.00			Quarterly		0.76		USD		6,750		86,676			59,640			27,036
												$	23,346,464		$	19,556,192		$	3,790,272

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	109,350		4/20/23		2.850%		3 Month LIBOR	Semi-Annual/ Quarterly	$	(5,019,075	)	$	—	$	(5,019,075	)
USD	46,860		4/02/24		2.851%		3 Month LIBOR	Semi-Annual/ Quarterly		(2,754,739	)		—		(2,754,739	)
USD	30,755		2/10/25		2.034%		3 Month LIBOR	Semi-Annual/ Quarterly		(830,532	)		—		(830,532	)
USD	6,010		6/09/25		2.491%		3 Month LIBOR	Semi-Annual/ Quarterly		(361,482	)		—		(361,482	)
USD	10,000		1/11/27		2.285%		3 Month LIBOR	Semi-Annual/ Quarterly		(576,260	)		—		(576,260	)
USD	11,920		4/26/27		2.287%		3 Month LIBOR	Semi-Annual/ Quarterly		(639,110	)		—		(639,110	)
									$	(10,181,198	)	$	—	$	(10,181,198	)

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PORTFOLIO OF INVESTMENTS(continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 9, 9/17/58*		(3.00	)%		Monthly		3.40	%	USD		25,750	$	1,067,364		$	549,789		$	517,575
Sale Contracts
Barclays Bank PLC
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58		USD		5,000		(769,139	)		(125,256	)		(643,883	)
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58		USD		4,000		(615,867	)		(618,750	)		2,883
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		5,000		(425,584	)		(511,028	)		85,444
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		5,000		(425,583	)		(518,529	)		92,946
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		5,000		(425,583	)		(615,190	)		189,607
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		19,075		(1,625,190	)		(2,073,944	)		448,754
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		643		(54,784	)		(73,539	)		18,755
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		12,000		(1,022,400	)		(1,539,135	)		516,735
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		9,557		(813,459	)		(977,282	)		163,823
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		9,557		(813,460	)		(967,447	)		153,987
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		9,557		(813,460	)		(967,447	)		153,987
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		1,529		(130,144	)		(157,258	)		27,114
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		3,250		(276,629	)		(339,695	)		63,066
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		13,500		(1,149,075	)		(1,208,983	)		59,908
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		660		(56,232	)		(56,759	)		527
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		1,146		(97,544	)		(185,204	)		87,660
Credit Suisse International
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88		USD		6,500		27,228			(354,971	)		382,199

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PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00	%		Monthly		1.88	%	USD		2,839	$	11,892		$	(113,731	)	$	125,623
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88		USD		567		2,375			(22,714	)		25,089
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88		USD		1,136		4,759			(46,371	)		51,130
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88		USD		15,000		62,000			(428,422	)		490,422
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		9,220		(784,776	)		(1,127,523	)		342,747
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		763		(65,008	)		(87,378	)		22,370
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		17,343		(1,477,624	)		(2,173,240	)		695,616
Deutsche Bank AG
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88		USD		23,700		99,277			(1,049,920	)		1,149,197
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		20,000		(1,702,333	)		(2,921,753	)		1,219,420
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		10,000		(851,167	)		(1,602,709	)		751,542
Goldman Sachs International
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58		USD		16,500		(2,538,158	)		(3,770,810	)		1,232,652
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		32,853		(2,796,338	)		(4,630,032	)		1,833,694
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		14,291		(1,217,593	)		(1,681,129	)		463,536
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		11,909		(1,014,647	)		(1,398,262	)		383,615
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		13,000		(1,106,517	)		(1,333,543	)		227,026
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		6,323		(538,192	)		(1,036,898	)		498,706
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		8,827		(751,325	)		(1,468,354	)		717,029
JPMorgan Securities LLC
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58		USD		3,869		(595,697	)		(748,084	)		152,387
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58		USD		3,748		(577,067	)		(735,312	)		158,245
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		9,543		(812,269	)		(1,088,909	)		276,640

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PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00	%		Monthly		1.88	%	USD		293	$	1,227		$	(12,166	)	$	13,393
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42		USD		547		(46,605	)		(46,107	)		(498	)
												$	(25,113,327	)	$	(38,263,995	)	$	13,150,668

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Principal Amount (000)		Currency		Interest Rate			Maturity		U.S. $ Value at October 31, 2019
Barclays Capital, Inc.†		505		USD		(1.25	)%*		—	$	505,160
Barclays Capital, Inc.†		926		USD		1.00	%		—		927,301
Barclays Capital, Inc.†		1,227		USD		(0.75	)%*		—		1,226,960
Credit Suisse†		855		USD		(0.50	)%*		—		855,000
Credit Suisse Europe†		1,224		EUR		(1.25	)%*		—		1,365,127
JPMorgan Chase Bank†		939		EUR		(1.35	)%*		—		1,047,287
JPMorgan Chase Bank†		1,145		EUR		(1.35	)%*		—		1,277,436
										$	7,204,271

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2019.

* Interest payment due from counterparty.

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Corporates –Non-Investment Grade	$	6,276,970	$	—	$	—	$	—	$	6,276,970
Emerging Markets – Corporate Bonds		927,301		—		—		—		927,301
Total	$	7,204,271	$	—	$	—	$	—	$	7,204,271

(a) Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps.

(b) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(c) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts.

(d) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $1,014,795,863 or 25.6% of net assets.

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PORTFOLIO OF INVESTMENTS(continued)

(f) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.70% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Digicel Group One Ltd.
8.25%, 12/30/22		1/09/19	$	1,212,474	$	783,864		0.02	%
Exide International Holdings LP
10.75%, 10/31/21		6/18/19		2,765,783		2,958,763		0.07	%
Exide Technologies
7.25%, 4/30/27		6/01/19		2,837,207		706,611		0.07	%
Exide Technologies
11.00%, 10/31/24		6/21/19		2,868,669		2,988,482		0.02	%
JP Morgan Madison Avenue Securities Trust Series2014-CH1, Class M2
6.073%, 11/25/24		11/06/15		1,258,771		1,342,918		0.03	%
JP Morgan Madison Avenue Securities Trust Series2015-CH1, Class M2
7.323%, 10/25/25		9/18/15		2,176,399		2,396,470		0.06	%
Magnetation LLC/Mag Finance Corp.
11.00%, 5/15/18		2/19/15		861,787		14		0.00	%
PMT Credit Risk Transfer Trust Series2019-1R, Class A
4.054%, 3/27/24		3/21/19		3,710,140		3,700,948		0.09	%
PMT Credit Risk Transfer Trust Series2019-2R, Class A
4.804%, 5/27/23		6/07/19		4,669,847		4,694,591		0.12	%
PMT Credit Risk Transfer Trust Series2019-3R, Class A
4.164%, 8/27/24		10/11/19		2,540,727		2,540,767		0.06	%
SoFi Consumer Loan Program LLC Series2016-1, Class R
Zero Coupon, 8/25/25		7/28/17		1,399,724		1,174,911		0.03	%
SoFi Consumer Loan Program LLC Series2016-5, Class R
Zero Coupon, 9/25/28		6/23/17		1,275,923		316,525		0.01	%
SoFi Consumer Loan Program LLC Series2017-5, Class R1
Zero Coupon, 9/25/26		9/18/17		1,758,337		633,562		0.02	%
SoFi Consumer Loan Program Trust Series2018-1, Class R1
Zero Coupon, 2/25/27		2/01/18		3,677,431		2,066,499		0.05	%
Terraform Global Operating LLC
6.125%, 3/01/26		2/08/18		695,000		712,375		0.02	%
Tonon Luxembourg SA
6.50%, 10/31/24		7/24/15		2,067,245		22,075		0.00	%
Virgolino de Oliveira Finance SA
10.50%, 1/28/18		6/13/13		3,510,948		177,201		0.01	%
Virgolino de Oliveira Finance SA
10.875%, 1/13/20		6/09/14		745,965		134,438		0.0	%
Virgolino de Oliveira Finance SA
11.75%, 2/09/22		1/29/14		916,308		42,081		0.0	%
Wells Fargo Credit Risk Transfer Securities Trust Series2015-WF1, Class 1M2
7.073%, 11/25/25		9/06/16		750,986		837,085		0.02	%

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PORTFOLIO OF INVESTMENTS(continued)

(g) Inverse interest only security.

(h) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(i) IO – Interest Only.

(j) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(k) Illiquid security.

(l) Fair valued by the Adviser.

(m) Non-income producing security.

(n) Defaulted.

(o) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2019.

(p) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(q) Defaulted matured security.

(r) Pays 10.75% cash or up to 4.5% PIK and remaining in cash.

(s) Convertible security.

(t) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2019.

(u) This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

(v) Affiliated investments.

(w) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800)227-4618.

(x) The rate shown represents the7-day yield as of period end.

Currency Abbreviations:   ARS – Argentine Peso AUD – Australian Dollar BRL – Brazilian Real CAD – Canadian Dollar DOP – Dominican Peso EUR – Euro GBP – Great British Pound IDR – Indonesian Rupiah INR – Indian Rupee MXN – Mexican Peso NGN – Nigerian Naira NOK – Norwegian Krone NZD – New Zealand Dollar RUB – Russian Ruble USD – United States Dollar ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CDX-NAIG – North American Investment Grade Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

JSC – Joint Stock Company

LIBOR – London Interbank Offered Rates

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $4,516,725,839)	$	4,579,005,234
Affiliated issuers (cost $51,923,844)		51,923,844
Cash		4,813,984
Foreign currencies, at value (cost $4,762,170)		4,788,159
Receivable for investment securities sold and foreign currency transactions		89,129,413
Interest receivable		43,592,973
Receivable for capital stock sold		23,889,806
Receivable for variation margin on futures		3,278,235
Market value on credit default swaps (net premiums received $1,478,506)		1,276,122
Receivable for newly entered credit default swaps		717,679
Receivable for variation margin on centrally cleared swaps		557,924
Unrealized appreciation on forward currency exchange contracts		543,086
Receivable for terminated credit default swaps		534,257
Affiliated dividends receivable		71,352
Receivable for terminated centrally cleared credit default swaps		7,315
Other assets		19,327
Total assets		4,804,148,710
Liabilities
Payable for investment securities purchased and foreign currency transactions		784,789,819
Market value on credit default swaps (net premiums received $36,785,489)		26,389,449
Payable for capital stock repurchased		7,378,072
Payable for reverse repurchase agreements		7,204,271
Unrealized depreciation on forward currency exchange contracts		3,879,793
Payable for terminated centrally cleared credit default swaps		1,806,287
Dividends payable		1,449,771
Advisory fee payable		1,154,194
Payable for terminated credit default swaps		719,156
Payable for newly entered credit default swaps		536,914
Distribution fee payable		183,917
Transfer Agent fee payable		55,653
Administrative fee payable		24,551
Directors’ fees payable		1,933
Accrued expenses and other liabilities		1,193,153
Total liabilities		836,766,933
Net Assets	$	3,967,381,777
Composition of Net Assets
Capital stock, at par	$	496,293
Additionalpaid-in capital		4,000,357,392
Accumulated loss		(33,471,908	)
	$	3,967,381,777

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES(continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	240,567,011		30,128,223	$	7.98	*
C	$	164,412,647		20,564,684	$	7.99
Advisor	$	3,562,402,119		445,599,886	$	7.99

* The maximum offering price per share for Class A shares was $8.33 which reflects a sales charge of 4.25%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Interest (net of foreign taxes withheld of $84,950)	$	134,603,388
Dividends
Unaffiliated issuers		1,240,085
Affiliated issuers		698,631
Other income		30,500		$	136,572,604
Expenses
Advisory fee (see Note B)		12,719,572
Distribution fee—Class A		480,423
Distribution fee—Class C		1,071,054
Transfer agency—Class A		170,047
Transfer agency—Class C		93,497
Transfer agency—Advisor Class		2,242,766
Custodian		322,981
Printing		228,973
Registration fees		220,846
Audit and tax		148,509
Administrative		75,925
Legal		45,732
Directors’ fees		23,080
Miscellaneous		104,010
Total expenses before interest expense		17,947,415
Interest expense		118,018
Total expenses					18,065,433
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,516,597	)
Net expenses					16,548,836
Net investment income					120,023,768
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					(748,505	)
Forward currency exchange contracts					(13,468,915	)
Futures					61,013,963
Options written					3,734,099
Swaps					2,965,806
Swaptions written					344,492
Foreign currency transactions					(21,998,529	)
Net change in unrealized appreciation/depreciation of:
Investments(b)					153,109,341
Forward currency exchange contracts					(3,388,016	)
Futures					3,848,946
Options written					(189,419	)
Swaps					2,953,033
Swaptions written					50,118
Foreign currency denominated assets and liabilities					110,846
Net gain on investment and foreign currency transactions					188,337,260
Contributions from Affiliates (see Note B)					6,818
Net Increase in Net Assets from Operations				$	308,367,846

(a) Net of foreign capital gains taxes of $103,747.

(b) Net of increase in accrued foreign capital gains taxes of $192,769.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	120,023,768		$	101,153,138
Net realized gain (loss) on investment and foreign currency transactions		31,842,411			(75,046,815	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		156,494,849			(92,000,951	)
Contributions from Affiliates (see Note B)		6,818			28,261
Net increase (decrease) in net assets from operations		308,367,846			(65,866,367	)
Distributions to Shareholders
Class A		(7,312,426	)		(11,572,396	)
Class C		(3,340,007	)		(3,029,311	)
Advisor Class		(102,301,258	)		(105,142,843	)
Return of capital
Class A		(1,342,784	)		(1,019,139	)
Class C		(613,327	)		(266,781	)
Advisor Class		(18,785,630	)		(9,259,554	)
Capital Stock Transactions
Net increase		1,255,456,371			699,716,997
Total increase		1,430,128,785			503,560,606
Net Assets
Beginning of period		2,537,252,992			2,033,692,386
End of period	$	3,967,381,777		$	2,537,252,992

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Income Fund (the “Fund”), a diversified portfolio. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., aclosed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Predecessor Fund was the accounting survivor in the Reorganization and as such, the financial statements and the Advisor Class shares financial highlights reflect the financial information of the Predecessor Fund through April 21, 2016. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class K, Class R, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with afront-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily

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available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

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Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized

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modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss

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expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Governments – Treasuries	$	– 0	–	$	1,908,892,004	$	– 0	–	$	1,908,892,004
Mortgage Pass-Throughs		– 0	–		704,844,996		– 0	–		704,844,996
Collateralized Mortgage Obligations		– 0	–		460,293,617		1,296,862			461,590,479
Corporates – Investment Grade		– 0	–		410,369,489		– 0	–		410,369,489
Corporates –Non-Investment Grade		– 0	–		381,038,225		6,819,649	(a)		387,857,874
Emerging Markets – Sovereigns		– 0	–		119,070,194		– 0	–		119,070,194
Asset-Backed Securities		– 0	–		43,132,704		53,089,059			96,221,763
Emerging Markets – Corporate Bonds		– 0	–		69,878,661		22,075			69,900,736
Bank Loans		– 0	–		53,131,002		8,578,582			61,709,584
Inflation-Linked Securities		– 0	–		60,708,829		– 0	–		60,708,829
Commercial Mortgage-Backed Securities		– 0	–		59,214,034		– 0	–		59,214,034

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Investments in Securities:

Level 1

Level 2

Level 3

Total

Collateralized Loan Obligations

$

– 0

–

$

– 0

–

$

55,818,002

$

55,818,002

Agencies

– 0

–

45,605,430

– 0

–

45,605,430

Local Governments – Provincial Bonds

– 0

–

31,383,606

– 0

–

31,383,606

Emerging Markets – Treasuries

– 0

–

29,072,764

– 0

–

29,072,764

Governments – Sovereign Bonds

– 0

–

18,634,364

– 0

–

18,634,364

Quasi-Sovereigns

– 0

–

17,417,859

– 0

–

17,417,859

Common Stocks

3,375,433

765,429

4,277,734

8,418,596

Local Governments – US Municipal Bonds

– 0

–

3,129,702

– 0

–

3,129,702

Preferred Stocks

– 0

–

– 0

–

890,661

890,661

Whole Loan Trusts

– 0

–

– 0

–

487,660

487,660

Warrants

176,210

– 0

–

0

(a)

176,210

Short-Term Investments:

Investment Companies

51,923,844

– 0

–

– 0

–

51,923,844

U.S. Treasury Bills

– 0

–

23,720,380

– 0

–

23,720,380

Governments – Treasuries

– 0

–

3,870,018

– 0

–

3,870,018

Total Investments in Securities

55,475,487

4,444,173,307

131,280,284

4,630,929,078

Other Financial Instruments(b):

Assets:

Futures

3,865,026

– 0

–

– 0

–

3,865,026

(c)

Forward Currency Exchange Contracts

– 0

–

543,086

– 0

–

543,086

Centrally Cleared Credit Default Swaps

– 0

–

26,013,933

– 0

–

26,013,933

(c)

Credit Default Swaps

– 0

–

1,276,122

– 0

–

1,276,122

Liabilities:

Futures

(6,088,515

)

– 0

–

– 0

–

(6,088,515

)(c)

Forward Currency Exchange Contracts

– 0

–

(3,879,793

)

– 0

–

(3,879,793

)

Centrally Cleared Credit Default Swaps

– 0

–

(2,667,469

)

– 0

–

(2,667,469

)(c)

Centrally Cleared Interest Rate Swaps

– 0

–

(10,181,198

)

– 0

–

(10,181,198

)(c)

Credit Default Swaps

– 0

–

(26,389,449

)

– 0

–

(26,389,449

)

Reverse Repurchase Agreements

(7,204,271

)

– 0

–

– 0

–

(7,204,271

)

Total

$

46,047,727

$

4,428,888,539

$

131,280,284

$

4,606,216,550

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NOTES TO FINANCIAL STATEMENTS(continued)

(a) The Fund held securities with zero market value at period end.

(b) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(c) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Collateralized Mortgage Obligations			Corporates - Non-Investment Grade(a)			Asset-Backed Securities
Balance as of 10/31/18	$	2,358,544		$	5,130,445		$	45,113,715
Accrued discounts/(premiums)		– 0	–		113,394			4,925
Realized gain (loss)		– 0	–		(337,683	)		(3,980,321	)
Change in unrealized appreciation/depreciation		– 0	–		(1,093,828	)		(64,380	)
Purchases/Payups		1,296,862			8,897,441			26,828,744
Sales/Paydowns		– 0	–		(5,890,120	)		(14,813,624	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		(2,358,544	)		– 0	–		– 0	–
Balance as of 10/31/19	$	1,296,862		$	6,819,649		$	53,089,059
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	– 0	–	$	(1,817,804	)	$	(1,687,773	)
	Emerging Markets - Corporate Bonds			Bank Loans			Commercial Mortgage-Backed Securities
Balance as of 10/31/18	$	344,626		$	3,649,183		$	8,616,054
Accrued discounts/(premiums)		(202,720	)		4,966			2,208
Realized gain (loss)		– 0	–		(526,238	)		164,148
Change in unrealized appreciation/depreciation		168,950			189,102			(95,844	)
Purchases/Payups		2,268,758			8,653,097			– 0	–
Sales/Paydowns		(2,268,758	)		(3,236,278	)		(3,784,546	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		(288,781	)		(155,250	)		(4,902,020	)
Balance as of 10/31/19	$	22,075		$	8,578,582		$	– 0	–
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	(2,045,170	)	$	(69,761	)	$	– 0	–

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	Collateralized Loan Obligations			Common Stocks			Preferred Stocks
Balance as of 10/31/18	$	55,545,759		$	5,424,648		$	834,450
Accrued discounts/(premiums)		(4,313	)		– 0	–		– 0	–
Realized gain (loss)		94,466			493,790			– 0	–
Change in unrealized appreciation/depreciation		(1,708,985	)		(1,254,605	)		56,211
Purchases/Payups		6,049,700			965,106			– 0	–
Sales/Paydowns		(4,158,625	)		(1,351,205	)		– 0	–
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		– 0	–		– 0	–
Balance as of 10/31/19	$	55,818,002		$	4,277,734		$	890,661
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	(1,612,899	)	$	(782,258	)	$	56,211
	Whole Loan Trusts			Warrants(a)			Total
Balance as of 10/31/18	$	1,389,874		$	– 0	–	$	128,407,298
Accrued discounts/(premiums)		1,114			– 0	–		(80,426	)
Realized gain (loss)		(197,673	)		– 0	–		(4,289,511	)
Change in unrealized appreciation/depreciation		(85,907	)		– 0	–		(3,889,286	)
Purchases/Payups		– 0	–		– 0	–		54,959,708
Sales/Paydowns		(619,748	)		– 0	–		(36,122,904	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		– 0	–		(7,704,595	)(c)
Balance as of 10/31/19	$	487,660		$	– 0	–	$	131,280,284
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	(205,964	)	$	– 0	–	$	(8,165,418	)

(a) The Fund held securities with zero market value at period end.

(b) The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

(c) There were de minimis transfers under 1% of net assets during the reporting period.

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The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at October 31, 2019. Securities priced (i) by third party vendors, or (ii) by brokers are excluded from the following table:

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 10/31/19			Valuation Technique	Unobservable Input	Input
Corporates –Non-Investment Grade	$	2,958,763		Discounted Cash Flow	Discount Rate on Future Cash Flows	11.92%
	$	2,293,325		Discounted Cash Flow	Discount Rate on Future Cash Flows	14.53%
	$	695,157		Discounted Cash Flow	Discount Rate on Future Cash Flows	17.03%
	$	706,611		Discounted Cash Flow	Discount Rate on Future Cash Flows	20.00%
	$	– 0	–	Qualitative Assessment		$– 0 –
	$	165,779		Recovery Analysis	Collateral Value	$100.00
	$	6,819,635
Common Stocks	$	735,413		Market- Approach	EBITDA* Projection EBITDA* Multiples	$298.8mm 6.2X
	$	539,380		Market- Approach	EBITDA* Projection EBITDA* Multiples	$530mm 15.0X
	$	237,318		Market- Approach	10% Haircut to Last Traded Price	$6.93
	$	190,135		Market- Approach	Projected Enterprise Value	$911.1mm
	$	1,702,246

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	Fair Value at 10/31/19			Valuation Technique	Unobservable Input	Input
Preferred Stocks	$	890,661		Market- Approach	EBITDA* Projection EBITDA* Multiples	$530mm 15.0X
Whole Loan Trusts	$	76,263		Recovery Analysis	Cumulative Loss	32%
	$	246,106		Recovery Analysis	Cumulative Loss	28%
	$	165,291		Discounted Cash Flow	Cash Flow Yield	100%
	$	487,660
Warrants	$	– 0	–	Qualitative Assessment		$– 0 –

* Earnings before Interest, Taxes, Depreciation and Amortization.

Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in cumulative loss in isolation would be expected to result in a significantly lower (higher) fair value measurement. A significant increase (decrease) in collateral value, EBITDA projections/multiples, projected enterprise value, last traded price and cash flow yield in isolation would be expected to result in a significant higher (lower) fair value measurement. A significant increase (decrease) in discount rate on future cash flows in isolation would be expected to result in a significant lower (higher) fair value measurement.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of

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its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion of the Fund’s average daily net assets, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser

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has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the “Expense Caps”) to .77%, 1.52% and ..52% of daily average net assets for Class A, Class C, and Advisor Class shares, respectively. For the year ended October 31, 2019, such reimbursement/waivers amounted to $1,485,496. The Expense Caps may not be terminated by the Adviser before January 31, 2020. Any fees waived and expenses borne by the Adviser through April 22, 2018 are subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amounted to $990,111, $1,361,441 and $396,862 for the years ended October 31, 2016, October 31, 2017 and October 31, 2018, respectively. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the reimbursement for such services amounted to $75,925.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $717,890 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales charges of $74,379 from the sale of Class A shares and received $12,485 and $27,993 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in

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an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $31,101.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2019 is as follows:

Fund	Market Value 10/31/18 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	37,089	$	1,100,325	$	1,085,490	$	51,924	$	699

During the years ended October 31, 2019 and October 31, 2018, the Adviser reimbursed the Fund $6,818 and $28,261, respectively, for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

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NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $1,026,053 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	1,236,799,502	$	695,044,996
U.S. government securities		9,568,881,985		8,654,366,407

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	4,564,263,862
Gross unrealized appreciation	$	146,565,181
Gross unrealized depreciation		(90,831,837	)
Net unrealized appreciation	$	55,733,344

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

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The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon fornon-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2019, the Fund held futures for hedging andnon-hedging purposes.

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• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2019, the Fund held forward currency exchange contracts for hedging andnon-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges andover-the-counter markets. Among other things, the Fund may use options transactions fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

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When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2019, the Fund held purchased options for hedging andnon-hedging purposes. During the year ended October 31, 2019, the Fund held purchased swaptions for hedging andnon-hedging purposes.

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During the year ended October 31, 2019, the Fund held written options for hedging andnon-hedging purposes. During the year ended October 31, 2019, the Fund held written swaptions for hedging andnon-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps fornon-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on aphased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less thannon-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange

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of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

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Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2019, the Fund held credit default swaps fornon-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2019, the Fund held total return swaps fornon-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

During the year ended October 31, 2019, the Fund held variance swaps fornon-hedging purposes.

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The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	3,865,026	*	Receivable/Payable for variation margin on futures	$	6,088,515	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		4,205,990	*	Receivable/Payable for variation margin on centrally cleared swaps		415,718	*
Interest rate contracts					Receivable/Payable for variation margin on centrally cleared swaps		10,181,198	*

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	Asset Derivatives			Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value		Statement of Assets and Liabilities Location		Fair Value
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts	$	543,086		Unrealized depreciation on forward currency exchange contracts	$	3,879,793
Credit contracts	Market value on credit default swaps		1,276,122		Market value on credit default swaps		26,389,449
Total		$	9,890,224			$	46,954,673

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	59,377,082		$	4,422,403
Equity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		1,636,881			(573,457	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(13,468,915	)		(3,388,016	)

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	1,064,369	)	$	(128,698	)
Foreign exchange contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(2,722,281	)		(490,234	)
Credit contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(85,655	)		– 0	–
Equity contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(967,341	)		– 0	–
Foreign exchange contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		3,257,507			(189,419	)
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		476,592			– 0	–

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written	$	196,332		$	50,118
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		148,160			– 0	–
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(1,089,361	)		(15,795,269	)
Foreign exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(1,350,900	)		39,991
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		5,406,067			18,708,311
Total		$	49,749,799		$	2,655,730

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	931,386,364
Average notional amount of sale contracts	$	383,535,838
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	444,472,959
Average principal amount of sale contracts	$	851,904,137
Purchased Options:
Average notional amount	$	179,282,357	(a)
Purchased Swaptions:
Average notional amount	$	133,473,026	(a)

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Options Written:
Average notional amount	$	161,956,705	(b)
Swaptions Written:
Average notional amount	$	167,068,482	(c)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	224,571,601
Credit Default Swaps:
Average notional amount of buy contracts	$	46,442,308
Average notional amount of sale contracts	$	305,559,047
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	110,280,942
Average notional amount of sale contracts	$	150,707,795
Total Return Swaps:
Average notional amount	$	52,700,000	(d)
Variance Swaps:
Average notional amount	$	8,424,407	(e)

(a) Positions were open for four months during the year.

(b) Positions were open for eight months during the year.

(c) Positions were open for five months during the year.

(d) Positions were open for seven months during the year.

(e) Positions were open for six months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty

Derivative Assets Subject to a  MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

Bank of America, NA

$

248,349

$

(248,349

)

$

– 0

–

$

– 0

–

$

– 0

–

Citibank, NA

11,663

(11,663

)

– 0

–

– 0

–

– 0

–

Citigroup Global Markets, Inc.

1,067,364

(1,067,364

)

– 0

–

– 0

–

– 0

–

Credit Suisse International

108,254

(108,254

)

– 0

–

– 0

–

– 0

–

Deutsche Bank AG

99,277

(99,277

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

209,038

(209,038

)

– 0

–

– 0

–

– 0

–

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NOTES TO FINANCIAL STATEMENTS(continued)

Counterparty	Derivative Assets Subject to a  MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services, Inc.	$	9,691	$	(9,691	)	$	– 0	–	$	– 0	–	$	– 0	–
State Street Bank & Trust Co.		65,572		(1,483	)		– 0	–		– 0	–		64,089
Total	$	1,819,208	$	(1,755,119	)	$	– 0	–	$	– 0	–	$	64,089	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	309,137	$	(248,349	)	$	– 0	–	$	(60,788	)	$	– 0	–
Barclays Bank PLC		769,139		– 0	–		– 0	–		(769,139	)		– 0	–
BNP Paribas SA		8,308		– 0	–		– 0	–		– 0	–		8,308
Citibank, NA		77,965		(11,663	)		– 0	–		– 0	–		66,302
Citigroup Global Markets, Inc.		8,744,994		(1,067,364	)		– 0	–		(7,677,630	)		– 0	–
Credit Suisse International		2,327,408		(108,254	)		– 0	–		(2,219,154	)		– 0	–
Deutsche Bank AG		2,840,176		(99,277	)		– 0	–		(2,721,315	)		19,584
Goldman Sachs Bank USA/Goldman Sachs International		10,433,569		(209,038	)		– 0	–		(10,224,531	)		– 0	–
HSBC Bank USA		23,349		– 0	–		– 0	–		(23,349	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities LLC		2,863,072		– 0	–		– 0	–		(2,863,072	)		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services, Inc.		153,672		(9,691	)		– 0	–		(143,981	)		– 0	–
Natwest Markets PLC		1,716,970		– 0	–		– 0	–		– 0	–		1,716,970
State Street Bank & Trust Co.		1,483		(1,483	)		– 0	–		– 0	–		– 0	–
Total	$	30,269,242	$	(1,755,119	)	$	– 0	–	$	(26,702,959	)	$	1,811,164	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest innon-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund

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may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2019, the Fund earned drop income of $3,613,572 which is included in interest income in the accompanying statement of operations.

4. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/

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or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2019, the average amount of reverse repurchase agreements outstanding was $8,828,428 and the daily weighted average interest rate was .68%. At October 31, 2019, the Fund had reverse repurchase agreements outstanding in the amount of $7,204,271 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2019:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
Barclays Capital, Inc.	$	2,659,421	$	(2,586,059	)	$	73,362
Credit Suisse		2,220,127		(2,211,268	)		8,859
JPMorgan Chase Bank		2,324,723		(2,324,723	)		– 0	–
Total	$	7,204,271	$	(7,122,050	)	$	82,221

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

5. Loan Participations and Assignments

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”) or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). A loan is often administered by a bank or other financial institution (the “Lender”) that acts as agent for all holders. The agent administers the term of the loan as specified in the loan agreement. When investing in Participations, the Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. In addition, when investing in Participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender and only upon receipt of payments by the Lender from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the Lender. When the Fund purchases Assignments from Lenders, it will typically acquire direct rights against the borrower on the loan. These loans may include participations in “bridge loans”, which are loans taken out by borrowers for a short period (typically less than six months) pending arrangement of more permanent financing through, for

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example, the issuance of bonds, frequently high-yield bonds issued for the purpose of acquisitions. The Fund may also participate in unfunded loan commitments, which are contractual obligations for investing in future Participations, and may receive a commitment fee based on the amount of the commitment. Under these arrangements, the Fund may receive a fixed rate commitment fee and, if and to the extent the borrower borrows under the facility, the Fund may receive an additional funding fee.

Unfunded loan commitments and funded loans are marked to market daily.

As of October 31, 2019, the Fund had the following unfunded loan commitment which could be extended at the option of the borrower pursuant to the respective loan agreement. The unrealized appreciation on such loan commitment was $65.

Loan	Unfunded Loan Participation Commitments		Funded
Allied Universal Holdco LLC.
2019 Delayed Draw Term	$	37,346	$	– 0	–

As of October 31, 2019, the Fund had no bridge loan commitments outstanding.

During the year ended October 31, 2019, the Fund did not receive commitment fees or additional funding fees.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		19,499,931			32,114,424		$	151,947,171		$	252,914,475
Shares issued in reinvestment of dividends and distributions		691,103			1,146,597			5,360,840			8,920,450
Shares converted from Class C		292,725			11,741			2,325,762			89,977
Shares redeemed		(21,445,308	)		(22,604,798	)		(163,431,602	)		(174,654,492	)
Net increase (decrease)		(961,549	)		10,667,964		$	(3,797,829	)	$	87,270,410

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NOTES TO FINANCIAL STATEMENTS(continued)

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class C
Shares sold		12,928,047			6,215,383		$	101,302,295		$	48,710,990
Shares issued in reinvestment of dividends and distributions		331,542			282,813			2,584,334			2,202,886
Shares converted to Class A		(292,359	)		(11,726	)		(2,325,762	)		(89,977	)
Shares redeemed		(3,371,776	)		(3,182,470	)		(25,885,420	)		(24,535,511	)
Net increase		9,595,454			3,304,000		$	75,675,447		$	26,288,388
Advisor Class
Shares sold		243,748,977			185,948,197		$	1,904,501,801		$	1,457,082,069
Shares issued in reinvestment of dividends and distributions		9,782,125			9,334,370			76,229,658			72,616,877
Shares redeemed		(104,179,175	)		(121,941,646	)		(797,152,706	)		(943,540,747	)
Net increase		149,351,927			73,340,921		$	1,183,578,753		$	586,158,199

NOTE F

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating.

There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value

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of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign(Non-U.S.) Risk—Investments in securities ofnon-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions

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of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered bynon-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any

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securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	112,953,691	$	119,744,550
Total taxable distributions paid	$	112,953,691	$	119,744,550
Return of capital		20,741,741		10,545,474
Total distributions paid	$	133,695,432	$	130,290,024

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NOTES TO FINANCIAL STATEMENTS(continued)

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(82,260,748	)(a)
Unrealized appreciation/(depreciation)		55,324,791	(b)
Total accumulated earnings/(deficit)	$	(26,935,957	)(c)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $76,251,662. During the fiscal year, the Fund utilized $61,735,806 of capital loss carry forwards to offset current year net realized gains. As of October 31, 2019, the cumulative deferred loss on straddles was $6,009,086.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of swaps, the tax deferral of losses on wash sales, the tax treatment of partnership investments, and the tax treatment of grantor trusts.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the Fund had a net short-term capital loss carryforward of $9,151,496 and a net long-term capital loss carryforward of $67,100,166, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to contributions from the Adviser resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement

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(Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	October 31,									April 21, 2016(a) to October 31, 2016
	2019			2018			2017
Net asset value, beginning of period		$  7.49			$  8.09			$  8.08			$  7.99
Income From Investment Operations
Net investment income(b)(c)		.31			.29			.36			.17†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.53			(.50	)		.05			.08
Contributions from Affiliates		.00	(d)		.00	(d)		.00	(d)		– 0	–
Net increase (decrease) in net asset value from operations		.84			(.21	)		.41			.25
Less: Dividends and Distributions
Dividends from net investment income		(.30	)		(.36	)		(.40	)		(.16	)
Return of capital		(.05	)		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.35	)		(.39	)		(.40	)		(.16	)
Net asset value, end of period		$  7.98			$  7.49			$  8.09			$  8.08
Total Return
Total investment return based on net asset value(e)		11.50	%		(2.71	)%		5.17	%		3.14	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$240,567			$232,931			$165,294			$2,104
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.77	%		1.08	%		1.03	%		1.16	%^
Expenses, before waivers/reimbursements(f)		.83	%		1.16	%		1.11	%		1.37	%^
Net investment income(c)		4.02	%		3.73	%		4.42	%		4.06	%^†
Portfolio turnover rate**		270	%		105	%		42	%		14	%

See footnote summary on page 117.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	October 31,									April 21, 2016(a) to October 31, 2016
	2019			2018			2017
Net asset value, beginning of period		$  7.50			$  8.10			$  8.09			$  7.99
Income From Investment Operations
Net investment income(b)(c)		.25			.23			.30			.14†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.53			(.50	)		.05			.09
Contributions from Affiliates		.00	(d)		.00	(d)		.00	(d)		– 0	–
Net increase (decrease) in net asset value from operations		.78			(.27	)		.35			.23
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.30	)		(.34	)		(.13	)
Return of capital		(.04	)		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.29	)		(.33	)		(.34	)		(.13	)
Net asset value, end of period		$  7.99			$  7.50			$  8.10			$  8.09
Total Return
Total investment return based on net asset value(e)		10.65	%		(3.43	)%		4.37	%		2.85	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$164,413			$82,283			$62,121			$1,133
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.52	%		1.83	%		1.78	%		1.90	%^
Expenses, before waivers/reimbursements(f)		1.57	%		1.92	%		1.87	%		2.15	%^
Net investment income(c)		3.21	%		2.98	%		3.68	%		3.34	%^†
Portfolio turnover rate**		270	%		105	%		42	%		14	%

See footnote summary on page 117.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,									January 1, 2016 to October 31, 2016(g)			Year Ended December 31,
	2019			2018			2017						2015			2014
Net asset value, beginning of period		$  7.50			$  8.10			$  8.09			$  7.86			$  8.34			$  8.13
Income From Investment Operations
Net investment income(b)		.33	(c)		.31	(c)		.41	(c)		.29	(c)†		.38			.42
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.53			(.50	)		.02			.22			(.41	)		.19
Contributions from Affiliates		.00	(d)		.00	(d)		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.86			(.19	)		.43			.51			(.03	)		.61
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.38	)		(.42	)		(.28	)		(.46	)		(.45	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		– 0	–		(.05	)		– 0	–
Return of capital		(.06	)		(.03	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.37	)		(.41	)		(.42	)		(.28	)		(.51	)		(.45	)
Redemption fee		– 0	–		– 0	–		– 0	–		.00	(d)		– 0	–		– 0	–
Anti-Dilutive Effect of Share Repurchase Program		– 0	–		– 0	–		– 0	–		– 0	–		.06			.05
Net asset value, end of period		$  7.99			$  7.50			$  8.10			$  8.09			$  7.86			$  8.34
Market value, end of period		N/A			N/A			N/A			N/A			$  7.67			$  7.47
Discount, end of period		N/A			N/A			N/A			N/A			(2.42	)%		(10.43	)%
Total Return
Total investment return based on:
Market value		N/A			N/A			N/A			N/A			9.71	%(h)		11.28	%(h)
Net asset value		11.76	%(e)		(2.46	)%(e)		5.44	%(e)		6.66	%(e)†		.70	%(h)		8.96	%(h)
Ratios/Supplemental Data
Net assets, end of period (000,000’s omitted)		$3,562			$2,222			$1,806			$916			$1,696			$1,902
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.52	%		.83	%		.81	%		.88	%^		.75	%		.67	%
Expenses, before waivers/reimbursements(f)		.58	%		.91	%		.93	%		.96	%^		.75	%		.67	%
Net investment income		4.24	%(c)		3.98	%(c)		5.11	%(c)		4.29	%(c)^†		4.57	%		5.02	%
Portfolio turnover rate**		270	%		105	%		42	%		14	%		34	%		32	%

See footnote summary on page 117.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Inception date.

(b) Based on average shares outstanding.

(c) Net of expenses waived by the Adviser.

(d) Amount is less than $.005.

(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(f) The expense ratios, excluding interest expense are:

	Year Ended October 31,									January 1, 2016 to October 31, 2016(g)			Year Ended December 31,
	2019			2018			2017						2015			2014
Class A
Net of waivers/reimbursements		.77	%		.77	%		.77	%		.88	%^		N/A			N/A
Before waivers/reimbursements		.82	%		.85	%		.85	%		1.09	%^		N/A			N/A
Class C
Net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.63	%^		N/A			N/A
Before waivers/reimbursements		1.57	%		1.60	%		1.61	%		1.87	%^		N/A			N/A
Advisor Class
Net of waivers/reimbursements		.52	%		.52	%		.54	%		.61	%^		.61	%		.61	%
Before waivers/reimbursements		.57	%		.60	%		.65	%		.69	%^		.61	%		.61	%

(g) The Predecessor Fund’s fiscal year end was December 31 and the Fund’s fiscal year end is October 31.

(h) Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. Total investment return calculated for a period of less than one year is not annualized.

† For the year ended October 31, 2016, the amount includes a refund for overbilling of prior years’ custody out of pocket fees as follows:

Net Investment Income Per Share	Net Investment Income Ratio	Total Return
$.003	.04%	.03%

** The Fund accounts for dollar roll transactions as purchases and sales.

^ Annualized.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    117

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of AB Income Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Income Fund (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended, the period from January 1, 2016 to October 31, 2016, and each of the two years in the period ended December 31, 2015 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the three years in the period then ended, the period from January 1, 2016 to October 31, 2016, and each of the two years in the period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 27, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2019. For foreign shareholders, 71.11% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Paul J. DeNoon^(2),*,Vice President Scott A. DiMaggio⁽²⁾,Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Douglas J. Peebles⁽²⁾,Vice President Matthew S. Sheridan⁽²⁾,Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller
Vincent S. Noto,
Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by U.S. Investment Grade: Core Fixed Income Investment Team. Messrs. DeNoon, DiMaggio, Distenfeld, Peebles and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. DeNoon is expected to retire on or about January 1, 2020.

abfunds.com AB INCOME FUND    ^|    121

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007

abfunds.com AB INCOME FUND    ^|    123

MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Michael J. Downey,## 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None
Nancy P. Jacklin,## 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept.—Mututal Fund Legal,1345 Avenue of the Americas, New York, NY 10105

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund, as defined in the 1940 Act, due to this position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Paul J. DeNoon 57	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Scott A. DiMaggio 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 44	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also co-Head of Fixed Income.
Douglas J. Peebles 54	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer of Fixed Income.
Matthew S. Sheridan 44	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser**, since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Income Fund (the “Fund”) at a meeting held onNovember 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

abfunds.com AB INCOME FUND    ^|    129

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for the period ended December 31, 2016 and calendar 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

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Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1-year period ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive

abfunds.com AB INCOME FUND    ^|    131

orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts. The directors concluded, based on the Adviser’s explanation of how it may use ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund would be for services that would be in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels and that the Fund’s net assets were approximately at the level of the first breakpoint. The directors took into consideration presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with their independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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AB INCOME FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IF-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB TOTAL RETURN BOND PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Total Return Bond Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    1

ANNUAL REPORT

December 10, 2019

This report provides management’s discussion of fund performance for AB Total Return Bond Portfolio for the annual reporting period ended October 31, 2019.

On July 12, 2019, the Fund implemented its current investment policies (the change eliminated the guidelines for the average duration and maturity of the Fund and addressed certain related matters) and also changed its name from AB Intermediate Bond Portfolio to AB Total Return Bond Portfolio. Accordingly, the performance shown for periods prior to July 12, 2019 is based on the Fund’s prior investment strategies and may not be representative of the Fund’s performance under its current investment policies.

The Fund’s investment objective is to maximize long-term total return without assuming what the Adviser considers undue risk.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
AB TOTAL RETURN BOND PORTFOLIO
Class A Shares		4.87%		10.23%
Class B Shares1		4.38%		9.41%
Class C Shares		4.39%		9.33%
Advisor Class Shares2		4.91%		10.50%
Class R Shares2		4.65%		9.86%
Class K Shares2		4.77%		10.22%
Class I Shares2		4.91%		10.50%
Class Z Shares2		4.90%		10.48%
Bloomberg Barclays US Aggregate Bond Index		5.71%		11.51%

1 Class B shares are no longer available for purchase to new investors. Please see Note A for additional information.

2 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Aggregate Bond Index, for thesix- and12-month periods ended October 31, 2019.

During the12-month period, all share classes of the Fund underperformed the benchmark, before sales charges. The Fund’s short duration positioning detracted, relative to the benchmark, as intermediate- and longer-maturity

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yields fell in the period. Security selection contributed, largely because of beneficial selection within commercial mortgage-backed securities (“CMBS”) and investment-grade corporates. Country positioning (a result ofbottom-up security analysis combined with fundamental research), sector and currency decisions had no meaningful impact on performance.

During thesix-month period, all share classes of the Fund underperformed the benchmark, before sales charges. The Fund’s shorter-than-benchmark duration detracted, as yields fell during the period. Sector allocation also detracted, primarily fromoff-benchmark exposure to US inflation-linked securities. Security selection contributed as result of selection within CMBS, as well as investment-grade andnon-investment-grade corporates. Neither country positioning nor currency selection had a meaningful impact on performance.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were utilized in the corporate and CMBS sectors for hedging and investment purposes. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Variance swaps were used to hedge againstflight-to-quality tail events and had an immaterial impact on absolute returns.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the12-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times, reacting to slowing global growth, declining manufacturing output and faltering business confidence from the ongoingUS-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low, while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remained below target in most developed countries and was falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partialUS-China trade agreement and an increased likelihood of the UK leaving the European Union at the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    3

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term and relatively attractive yields that do not involve undue risk of loss of capital. The Fund may invest up to 25% of its net assets in below investment-grade bonds. The Fund may use leverage for investment purposes.

The Fund may invest without limit in US dollar-denominated foreign fixed-income securities and may invest up to 25% of its assets innon-US dollar-denominated foreign fixed-income securities. These investments may include, in each case, developed- and emerging-market debt securities.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risk and return characteristics as well as the securities’ impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may invest in mortgage-related and other asset-backed securities, loan participations, inflation-indexed securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements and dollar rolls. The Fund may invest, without limit, in derivatives, such as options, futures contracts, forwards or swaps.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and CMBS. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk:The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Interest-Rate Risk:Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Credit Risk:An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk:Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Duration Risk:Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    5

DISCLOSURES AND RISKS(continued)

Inflation Risk:This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Foreign(Non-US) Risk:Investments in securities ofnon-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging-Market Risk:Investments in emerging-market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Currency Risk:Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered bynon-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk:To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Derivatives Risk:Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Illiquid Investments Risk:Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the

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DISCLOSURES AND RISKS(continued)

value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk:The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recentmonth-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximumfront-end sales charge for Class A shares; the applicable contingent deferred sales charge for Class B shares (3% year 1, 2% year 2, 1% year 3) and a 1%1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    7

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

10/31/2009 TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB Total Return Bond Portfolio Class A shares (from 10/31/2009 to 10/31/2019) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						1.78%
1 Year		10.23%		5.57%
5 Years		3.23%		2.34%
10 Years		4.18%		3.73%
CLASS B SHARES						1.04%
1 Year		9.41%		6.41%
5 Years		2.47%		2.47%
10 Years2		3.75%		3.75%
CLASS C SHARES						1.10%
1 Year		9.33%		8.33%
5 Years		2.45%		2.45%
10 Years		3.44%		3.44%
ADVISOR CLASS SHARES3						2.11%
1 Year		10.50%		10.50%
5 Years		3.49%		3.49%
10 Years		4.47%		4.47%
CLASS R SHARES3						1.46%
1 Year		9.86%		9.86%
5 Years		2.96%		2.96%
10 Years		3.95%		3.95%
CLASS K SHARES3						1.77%
1 Year		10.22%		10.22%
5 Years		3.25%		3.25%
10 Years		4.21%		4.21%
CLASS I SHARES3						2.20%
1 Year		10.50%		10.50%
5 Years		3.49%		3.49%
10 Years		4.47%		4.47%
CLASS Z SHARES3						2.19%
1 Year		10.48%		10.48%
5 Years		3.49%		3.49%
Since Inception4		3.64%		3.64%

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.01%, 1.80%, 1.76%, 0.76%, 1.35%, 1.08%, 0.72% and 0.64% for Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of interest expense to 0.77%, 1.52%, 1.52%, 0.52%, 1.02%, 0.77%, 0.52% and 0.52% for Class A, Class B, Class C,

(footnotes continued on next page)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE(continued)

Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before July 12, 2020 and may be extended by the Adviser for additionalone-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the30-day period ended October 31, 2019.

2 Assumes conversion of Class B shares into Class A shares after six years.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 4/25/2014.

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HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		4.34%
5 Years		2.44%
10 Years		3.84%
CLASS B SHARES
1 Year		5.28%
5 Years		2.59%
10 Years1		3.86%
CLASS C SHARES
1 Year		7.31%
5 Years		2.58%
10 Years		3.55%
ADVISOR CLASS SHARES2
1 Year		9.36%
5 Years		3.60%
10 Years		4.59%
CLASS R SHARES2
1 Year		8.83%
5 Years		3.09%
10 Years		4.06%
CLASS K SHARES2
1 Year		9.09%
5 Years		3.34%
10 Years		4.32%
CLASS I SHARES2
1 Year		9.35%
5 Years		3.60%
10 Years		4.58%
CLASS Z SHARES2
1 Year		9.35%
5 Years		3.61%
Since Inception3		3.67%

1 Assumes conversion of Class B shares into Class A shares after six years.

2 Please note that these share classes are for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 4/25/2014.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

12    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

EXPENSE EXAMPLE(continued)

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,048.70	$	3.98		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class B
Actual	$	1,000	$	1,043.80	$	7.83		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Class C
Actual	$	1,000	$	1,043.90	$	7.83		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	1,049.10	$	2.69		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class R
Actual	$	1,000	$	1,046.50	$	5.26		1.02	%
Hypothetical**	$	1,000	$	1,020.06	$	5.19		1.02	%
Class K
Actual	$	1,000	$	1,047.70	$	3.97		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class I
Actual	$	1,000	$	1,049.10	$	2.69		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class Z
Actual	$	1,000	$	1,049.00	$	2.69		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    13

PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $359.8

TOP TEN SECTORS (including derivatives)¹

Governments – Treasuries2	25.8	%
Corporates – Investment Grade3	24.1
Mortgage Pass-Throughs	17.4
Commercial Mortgage-Backed Securities3	15.3
Collateralized Mortgage Obligations	11.0
Interest Rate Swaps4	9.2
Inflation-Linked Securities	7.4
Asset-Backed Securities	5.6
Corporates –Non-Investment Grade3	2.2
Emerging Markets – Corporate Bonds	0.5

SECTOR BREAKDOWN (excluding derivatives)⁵

Corporates – Investment Grade	25.3	%	Emerging Markets – Corporate Bonds	0.5	%
Mortgage Pass-Throughs	17.2		Local Governments – US Municipal Bonds	0.4
Governments – Treasuries	12.8		Quasi-Sovereigns	0.3
Commercial Mortgage-Backed Securities	12.2		Emerging Markets – Treasuries	0.2
Collateralized Mortgage Obligations	10.9		Common Stocks	0.2
Inflation-Linked Securities	7.3		Emerging Markets – Sovereigns	0.1
Asset-Backed Securities	5.5		Short-Term	4.9
Corporates –Non-Investment Grade	2.2			100.0	%

1 All data are as of October 31, 2019. The Fund’s sectors include derivative exposure and are expressed as approximate percentages of the Fund’s total net assets, based on the Adviser’s internal classification. The percentages will vary over time.

2 Includes Treasury Futures.

3 Includes Credit Default Swaps.

4 Represents the exposure of the Fund’s fixed-rate payments on the Interest Rate Swaps. Interest Rate Swaps involve the exchange by a fund with another party of payments calculated by reference to specified interest rates (e.g., an exchange of floating-rate payments for fixed-rate payments).

5 All data are as of October 31, 2019. The Fund’s sector breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details).

14    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2019

		Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 25.7%
Industrial – 13.5%
Basic – 1.2%
Alpek SAB de CV 4.25%, 9/18/29(a)	U.S.$		203	$	206,806
Braskem Netherlands Finance BV 4.50%, 1/31/30(a)			895		886,578
Celulosa Arauco y Constitucion SA 4.20%, 1/29/30(a)			332		330,639
DuPont de Nemours, Inc. 4.205%, 11/15/23			485		519,886
4.493%, 11/15/25			485		537,516
Eastman Chemical Co. 3.80%, 3/15/25			220		230,296
Glencore Funding LLC 4.125%, 5/30/23(a)			516		539,664
Orbia Advance Corp. SAB de CV 4.00%, 10/04/27(a)			350		354,266
4.875%, 9/19/22(a)			225		236,531
Suzano Austria GmbH 6.00%, 1/15/29			497		548,191
					4,390,373
Capital Goods – 0.6%
Embraer Netherlands Finance BV 5.40%, 2/01/27			540		610,538
General Electric Co. 0.875%, 5/17/25	EUR		815		909,169
United Technologies Corp. 3.95%, 8/16/25	U.S.$		600		657,156
					2,176,863
Communications - Media – 1.0%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.908%, 7/23/25			740		815,894
5.05%, 3/30/29			675		760,367
Comcast Corp. 4.15%, 10/15/28			725		818,460
Cox Communications, Inc. 2.95%, 6/30/23(a)			233		238,760
Time Warner Cable LLC 4.50%, 9/15/42			230		229,584
5.00%, 2/01/20			740		744,751
					3,607,816

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 1.9%
AT&T, Inc. 3.40%, 5/15/25	U.S.$		1,610	$	1,687,843
4.125%, 2/17/26			1,161		1,259,627
4.35%, 3/01/29			500		551,725
4.55%, 3/09/49			395		425,229
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 3/20/25(a)			740		787,856
Verizon Communications, Inc. 4.862%, 8/21/46			355		440,509
5.012%, 4/15/49			443		571,563
Vodafone Group PLC 3.75%, 1/16/24			668		704,433
4.125%, 5/30/25			398		431,973
					6,860,758
Consumer Cyclical - Automotive – 0.5%
Ford Motor Credit Co. LLC 4.063%, 11/01/24			360		361,746
5.875%, 8/02/21			295		309,246
General Motors Financial Co., Inc. 4.30%, 7/13/25			135		141,546
5.10%, 1/17/24			665		717,901
5.25%, 3/01/26			165		179,048
					1,709,487
Consumer Cyclical - Restaurants – 0.1%
Starbucks Corp. 4.50%, 11/15/48			242		280,328
ConsumerNon-Cyclical – 2.8%
AbbVie, Inc. 4.875%, 11/14/48			374		413,203
Anheuser-Busch InBev Worldwide, Inc. 5.55%, 1/23/49			945		1,246,597
BAT Capital Corp. 3.215%, 9/06/26			728		725,197
Becton Dickinson and Co. 3.734%, 12/15/24			180		192,278
Biogen, Inc. 4.05%, 9/15/25			683		748,677
Cigna Corp. 3.75%, 7/15/23			252		264,058
4.125%, 11/15/25			299		324,035
4.375%, 10/15/28			399		439,969

16    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
CVS Health Corp. 3.25%, 8/15/29	U.S.$		181	$	182,819
4.10%, 3/25/25			450		483,548
4.30%, 3/25/28			450		488,065
Gilead Sciences, Inc. 2.55%, 9/01/20			910		914,905
Kraft Heinz Foods Co. 3.75%, 4/01/30(a)			544		555,832
3.95%, 7/15/25			50		52,668
Mylan NV 3.95%, 6/15/26			690		716,717
Reynolds American, Inc. 6.875%, 5/01/20			345		352,928
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/23(a)			530		571,409
Tyson Foods, Inc. 3.95%, 8/15/24			541		580,758
4.00%, 3/01/26			81		88,545
Zimmer Biomet Holdings, Inc. 2.70%, 4/01/20			377		377,690
Zoetis, Inc. 3.45%, 11/13/20			334		338,195
					10,058,093
Energy – 3.7%
Baker Hughes a GE Co. LLC/Baker HughesCo-Obligor, Inc. 4.08%, 12/15/47			175		175,481
3.337%, 12/15/27			433		445,748
Cenovus Energy, Inc. 3.00%, 8/15/22			42		42,442
Energy Transfer Operating LP 4.50%, 4/15/24			78		83,329
4.75%, 1/15/26			1,138		1,233,922
Energy Transfer Partners LP/Regency Energy Finance Corp. 4.50%, 11/01/23			135		143,173
Eni SpA 4.25%, 5/09/29(a)			850		932,756
Enterprise Products Operating LLC 3.70%, 2/15/26			1,025		1,091,451
5.20%, 9/01/20			235		241,220
Hess Corp. 4.30%, 4/01/27			648		681,041
Kinder Morgan, Inc./DE 3.15%, 1/15/23			1,700		1,742,143
Marathon Oil Corp. 3.85%, 6/01/25			111		116,628
6.80%, 3/15/32			650		812,825

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Newfield Exploration Co. 5.625%, 7/01/24	U.S.$		325	$	356,171
Noble Energy, Inc. 3.90%, 11/15/24			580		610,514
Occidental Petroleum Corp. 2.90%, 8/15/24			600		606,480
3.20%, 8/15/26			96		97,098
ONEOK, Inc. 4.00%, 7/13/27			381		401,399
4.35%, 3/15/29			425		453,687
Plains All American Pipeline LP/PAA Finance Corp. 2.85%, 1/31/23			362		362,840
3.60%, 11/01/24			802		821,015
3.85%, 10/15/23			175		181,144
Sabine Pass Liquefaction LLC 5.00%, 3/15/27			482		529,617
5.625%, 3/01/25			396		444,395
Western Midstream Operating LP 4.50%, 3/01/28			200		192,632
4.75%, 8/15/28			130		126,181
Williams Cos., Inc. (The) 4.125%, 11/15/20			403		409,343
					13,334,675
Other Industrial – 0.2%
Alfa SAB de CV 5.25%, 3/25/24(a)			530		571,737
Services – 0.4%
Expedia Group, Inc. 3.80%, 2/15/28			636		667,437
Global Payments, Inc. 4.00%, 6/01/23			309		326,579
S&P Global, Inc. 4.40%, 2/15/26			584		654,080
					1,648,096
Technology – 0.9%
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.625%, 1/15/24			146		150,269
3.875%, 1/15/27			395		398,973
Broadcom, Inc. 3.625%, 10/15/24(a)			270		277,695
4.25%, 4/15/26(a)			311		324,563
Dell International LLC/EMC Corp. 6.02%, 6/15/26(a)			469		535,626

18    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
KLA Corp. 4.65%, 11/01/24	U.S.$		614	$	678,028
Lam Research Corp. 2.80%, 6/15/21			269		272,664
Seagate HDD Cayman 4.75%, 1/01/25			165		173,379
Western Digital Corp. 4.75%, 2/15/26			335		342,122
					3,153,319
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 4/05/36(a)			216		229,500
5.875%, 7/05/34(a)			193		225,762
					455,262
Transportation - Services – 0.1%
Adani Ports & Special Economic Zone Ltd. 3.95%, 1/19/22(a)			545		558,284
					48,805,091
Financial Institutions – 11.6%
Banking – 10.5%
ABN AMRO Bank NV 4.75%, 7/28/25(a)			200		217,704
AIB Group PLC 4.263%, 4/10/25(a)			500		526,250
4.75%, 10/12/23(a)			225		240,300
American Express Co. Series C 4.90%, 3/15/20(b)			461		465,001
Australia & New Zealand Banking Group Ltd. 4.40%, 5/19/26(a)			510		546,195
Banco Santander SA 3.50%, 4/11/22			400		411,224
5.179%, 11/19/25			1,000		1,109,190
Bank of America Corp. Series DD 6.30%, 3/10/26(b)			185		210,365
Series L 3.95%, 4/21/25			1,455		1,548,877
Series Z 6.50%, 10/23/24(b)			289		326,255
Banque Federative du Credit Mutuel SA 2.75%, 10/15/20(a)			565		569,356
Barclays Bank PLC 6.86%, 6/15/32(a)(b)			129		151,793
BB&T Corp. 2.625%, 6/29/20			319		320,276

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
BBVA USA 2.875%, 6/29/22	U.S.$		895	$	908,890
5.50%, 4/01/20			1,339		1,357,224
BNP Paribas SA 2.375%, 5/21/20			355		355,838
4.375%,9/28/25-5/12/26(a)			1,007		1,077,253
BPCE SA 2.75%, 1/11/23(a)			319		324,994
5.70%, 10/22/23(a)			230		255,277
Capital One Financial Corp. 3.30%, 10/30/24			901		939,500
Citigroup, Inc. 3.70%, 1/12/26			1,000		1,066,880
3.875%, 3/26/25			827		874,966
Citizens Bank NA/Providence RI 2.25%, 3/02/20			380		380,190
Commonwealth Bank of Australia 4.50%, 12/09/25(a)			505		546,642
Commonwealth Bank of Australia/New York NY Series G 2.30%, 3/12/20			250		250,355
Cooperatieve Rabobank UA 4.375%, 8/04/25			1,373		1,491,504
Credit Agricole SA/London 2.75%, 6/10/20(a)			378		379,516
3.25%, 10/04/24(a)			257		265,944
3.375%, 1/10/22(a)			355		363,548
Credit Suisse Group Funding Guernsey Ltd. 3.80%, 6/09/23			600		628,428
Danske Bank A/S 3.244%, 12/20/25(a)			492		499,129
Discover Bank 4.682%, 8/09/28			250		261,968
Goldman Sachs Group, Inc. (The) 3.75%, 5/22/25			254		269,293
3.85%, 7/08/24			905		959,653
Series D 6.00%, 6/15/20			1,282		1,312,794
HSBC Bank USA NA 4.875%, 8/24/20			360		368,136
HSBC Holdings PLC 4.25%, 3/14/24			1,170		1,241,651
4.292%, 9/12/26			536		579,780
ING Bank NV 5.80%, 9/25/23(a)			871		970,599
ING Groep NV 6.875%, 4/16/22(a)(b)			425		448,498

20    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Intesa Sanpaolo SpA 5.017%, 6/26/24(a)	U.S.$		288	$	300,174
JPMorgan Chase & Co. 3.22%, 3/01/25			890		923,776
3.54%, 5/01/28			790		838,482
Series FF 5.00%, 8/01/24(b)			488		504,441
Series Z 5.30%, 5/01/20(b)			200		202,720
KeyBank NA/Cleveland OH 2.25%, 3/16/20			629		629,717
Lloyds Banking Group PLC 4.582%, 12/10/25			729		783,580
Manufacturers & Traders Trust Co. 2.625%, 1/25/21			550		554,158
Morgan Stanley 5.00%, 11/24/25			640		720,819
Series G 4.35%, 9/08/26			1,030		1,122,937
National Australia Bank Ltd./New York Series G 2.625%, 7/23/20			300		301,587
Nationwide Building Society 4.00%, 9/14/26(a)			950		987,848
Santander Holdings USA, Inc. 4.40%, 7/13/27			890		955,566
Standard Chartered PLC 5.20%, 1/26/24(a)			350		379,264
UBS AG/Stamford CT 7.625%, 8/17/22			620		698,089
UBS Group Funding Switzerland AG 4.125%, 9/24/25(a)			436		475,057
7.00%, 1/31/24(a)(b)			335		359,301
US Bancorp Series J 5.30%, 4/15/27(b)			380		410,719
Wells Fargo & Co. 3.069%, 1/24/23			712		725,606
3.75%, 1/24/24			818		865,141
					37,760,218
Finance – 0.5%
GE Capital International Funding Co. Unlimited Co. 3.373%, 11/15/25			556		571,713
4.418%, 11/15/35			272		287,754

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Synchrony Financial 4.50%, 7/23/25	U.S.$		1,008	$	1,086,301
					1,945,768
Insurance – 0.6%
Guardian Life Insurance Co. of America (The) 4.85%, 1/24/77(a)			294		362,017
Hartford Financial Services Group, Inc. (The) 5.50%, 3/30/20			110		111,538
MetLife Capital Trust IV 7.875%, 12/15/37(a)			699		927,965
Nationwide Mutual Insurance Co. 9.375%, 8/15/39(a)			246		421,152
Voya Financial, Inc. 5.65%, 5/15/53			180		190,357
					2,013,029
					41,719,015
Utility – 0.6%
Electric – 0.6%
Enel Chile SA 4.875%, 6/12/28			514		568,612
Exelon Generation Co. LLC 2.95%, 1/15/20			453		453,417
Israel Electric Corp., Ltd. Series 6 5.00%, 11/12/24(a)			580		639,631
TECO Finance, Inc. 5.15%, 3/15/20			380		383,884
					2,045,544
Total Corporates – Investment Grade (cost $87,885,112)					92,569,650
MORTGAGE PASS-THROUGHS – 17.4%
Agency Fixed Rate30-Year – 16.2%
Federal Home Loan Mortgage Corp. Series 2019 3.50%, 9/01/49			1,697		1,775,828
Federal Home Loan Mortgage Corp. Gold Series 2005 5.50%, 1/01/35			169		188,873
Series 2007 5.50%, 7/01/35			24		27,216
Series 2016 4.00%, 2/01/46			1,258		1,345,161
Series 2017 4.00%, 7/01/44			979		1,047,208

22    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2018 4.00%,8/01/48-12/01/48	U.S.$		2,748	$	2,903,372
4.50%,3/01/48-11/01/48			3,633		3,886,894
5.00%, 11/01/48			711		769,136
Federal National Mortgage Association Series 2003 5.50%,4/01/33-7/01/33			160		178,168
Series 2004 5.50%,4/01/34-1/01/35			534		598,145
Series 2005 5.50%, 2/01/35			66		74,283
Series 2007 5.50%, 8/01/37			314		351,776
Series 2010 4.00%, 12/01/40			570		609,798
Series 2013 4.00%, 10/01/43			1,360		1,451,011
Series 2016 3.50%, 1/01/47			1,335		1,384,871
Series 2017 3.50%,9/01/47-1/01/48			10,924		11,299,813
Series 2018 3.50%,11/01/47-4/01/48			10,464		10,838,212
4.00%,8/01/48-12/01/48			3,496		3,692,385
4.50%, 9/01/48			3,611		3,859,419
Series 2019 3.50%,8/01/49-10/01/49			5,611		5,839,783
3.50%, 11/01/49, TBA			2,570		2,638,868
4.00%, 6/01/49			1,733		1,833,536
Government National Mortgage Association Series 1999 8.15%, 9/15/20			1		572
Series 2016 3.00%,4/20/46-5/20/46			951		984,285
Series 2019 3.00%, 11/01/49, TBA			600		617,531
					58,196,144
Agency Fixed Rate15-Year – 1.2%
Federal National Mortgage Association Series 2016 2.50%,8/01/31-1/01/32			3,388		3,435,333
Series 2017 2.50%, 2/01/32			973		986,816
					4,422,149

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		��	U.S. $ Value
Other Agency Fixed Rate Programs – 0.0%
Federal National Mortgage Association Series 2012 2.50%, 5/01/22	U.S.$		67		$	68,056
Agency ARMs – 0.0%
Federal Home Loan Mortgage Corp. Series 2006 4.897% (LIBOR 12 Month + 2.00%), 1/01/37(c)			25			25,801
Total Mortgage Pass-Throughs (cost $61,223,199)						62,712,150
GOVERNMENTS – TREASURIES – 13.0%
Malaysia – 0.3%
Malaysia Government Bond Series 0117 3.882%, 3/10/22	MYR		3,708			901,663
United States – 12.7%
U.S. Treasury Bonds 2.25%, 8/15/46	U.S.$		1,378			1,397,378
2.50%,2/15/45-5/15/46			4,460			4,748,085
2.875%,8/15/45-5/15/49			3,541			4,064,684
3.00%,5/15/45-2/15/49			4,956			5,809,333
3.125%, 8/15/44(d)			8,704			10,316,604
4.375%,2/15/38-11/15/39			5,613			7,777,446
4.50%, 2/15/36			856			1,172,446
5.375%, 2/15/31			1,179			1,619,467
U.S. Treasury Notes 1.50%, 9/30/21			2,804			2,801,371
1.625%, 8/15/29			2,610			2,594,503
2.125%, 12/31/22			1,010			1,028,270
2.25%, 4/30/21(d)			2,420			2,443,141
						45,772,728
Total Governments – Treasuries (cost $43,212,178)						46,674,391
COMMERCIAL MORTGAGE-BACKED SECURITIES – 12.4%
Non-Agency Fixed Rate CMBS – 9.5%
CFCRE Commercial Mortgage Trust Series2016-C4, Class A4 3.283%, 5/10/58			735			772,880
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 3/13/35(a)			1,305			1,369,943

24    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 4/10/46	U.S.$		500	$	515,639
Series 2013-GC17, Class D 5.11%, 11/10/46(a)			565		586,970
Series 2015-GC27, Class A5 3.137%, 2/10/48			1,223		1,279,465
Series 2015-GC35, Class A4 3.818%, 11/10/48			340		369,072
Series 2016-GC36, Class A5 3.616%, 2/10/49			425		457,742
Series2018-B2, Class A4 4.009%, 3/10/51			1,050		1,173,157
Commercial Mortgage Trust Series2013-SFS, Class A1 1.873%, 4/12/35(a)			258		257,028
Series 2015-CR24, Class A5 3.696%, 8/10/48			430		462,530
Series 2015-CR25, Class A4 3.759%, 8/10/48			1,045		1,127,169
Series2015-DC1, Class A5 3.35%, 2/10/48			765		804,401
Series2015-PC1, Class A5 3.902%, 7/10/50			685		738,993
CSAIL Commercial Mortgage Trust Series2015-C2, Class A4 3.504%, 6/15/57			332		351,736
Series2015-C3, Class A4 3.718%, 8/15/48			573		614,253
Series2015-C4, Class A4 3.808%, 11/15/48			1,450		1,565,858
GS Mortgage Securities Corp. II Series 2013-KING, Class A 2.706%, 12/10/27(a)			1,049		1,048,831
GS Mortgage Securities Trust Series2013-G1, Class A2 3.557%, 4/10/31(a)			766		785,020
Series2018-GS9, Class A4 3.992%, 3/10/51			1,125		1,254,257
JP Morgan Chase Commercial Mortgage Securities Trust Series2011-C5, Class D 5.395%, 8/15/46(a)			127		130,185
Series2012-C6, Class D 5.158%, 5/15/45			690		702,001
Series2012-C6, Class E 5.158%, 5/15/45(a)			389		373,945

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2012-C8, Class AS 3.424%, 10/15/45(a)	U.S.$		850	$	875,834
JPMBB Commercial Mortgage Securities Trust Series2014-C21, Class A5 3.775%, 8/15/47			735		785,951
Series2015-C30, Class A5 3.822%, 7/15/48			425		460,141
Series2015-C31, Class A3 3.801%, 8/15/48			1,009		1,092,370
Series2015-C33, Class A4 3.77%, 12/15/48			1,050		1,137,818
JPMCC Commercial Mortgage Securities Trust Series2017-JP7, Class XA 1.075%, 9/15/50(e)			4,737		289,275
LB-UBS Commercial Mortgage Trust Series2006-C6, Class AJ 5.452%, 9/15/39			137		80,148
LSTAR Commercial Mortgage Trust Series2016-4, Class A2 2.579%, 3/10/49(a)			615		616,614
Morgan Stanley Bank of America Merrill Lynch Trust Series2014-C16, Class A5 3.892%, 6/15/47			730		781,066
Morgan Stanley Capital I Trust Series2005-IQ9, Class D 5.00%, 7/15/56(f)(g)†			365		257,216
Series 2016-UB12, Class A4 3.596%, 12/15/49			660		711,298
UBS Commercial Mortgage Trust Series2018-C10, Class A4 4.313%, 5/15/51			750		853,609
Series2018-C8, Class A4 3.983%, 2/15/51			720		797,580
Series2018-C9, Class A4 4.117%, 3/15/51			1,300		1,456,283
UBS-Barclays Commercial Mortgage Trust Series2012-C4, Class A5 2.85%, 12/10/45			1,098		1,118,798
Wells Fargo Commercial Mortgage Trust Series2015-C27, Class A5 3.451%, 2/15/48			1,040		1,100,841
Series2015-SG1, Class A4 3.789%, 9/15/48			725		780,177
Series2015-SG1, Class C 4.467%, 9/15/48			516		540,614
Series2016-C35, Class XA 1.959%, 7/15/48(e)			3,844		385,534

26    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-LC24, Class XA 1.678%, 10/15/49(e)	U.S.$		8,982	$	788,431
Series 2016-LC25, Class C 4.419%, 12/15/59			545		576,761
Series 2016-NXS6, Class C 4.313%, 11/15/49			600		644,800
Series2018-C43, Class A4 4.012%, 3/15/51			900		998,281
WF-RBS Commercial Mortgage Trust Series2013-C11, Class XA 1.195%, 3/15/45(a)(e)			7,632		249,817
					34,120,332
Non-Agency Floating Rate CMBS – 2.9%
Ashford Hospitality Trust Series 2018-ASHF, Class A 2.814% (LIBOR 1 Month + 0.90%), 4/15/35(a)(c)			568		567,709
Series 2018-KEYS, Class A 2.914% (LIBOR 1 Month + 1.00%), 5/15/35(a)(c)			1,000		998,759
Atrium Hotel Portfolio Trust Series 2018-ATRM, Class A 2.864% (LIBOR 1 Month + 0.95%), 6/15/35(a)(c)			750		750,492
BAMLL Commercial Mortgage Securities Trust Series2017-SCH, Class AF 2.914% (LIBOR 1 Month + 1.00%), 11/15/33(a)(c)			1,330		1,330,815
BFLD Trust Series 2019-DPLO, Class D 3.754% (LIBOR 1 Month + 1.84%), 10/15/34(a)(c)			530		529,999
BHMS Series 2018-ATLS, Class A 3.164% (LIBOR 1 Month + 1.25%), 7/15/35(a)(c)			547		547,424
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 2.734% (LIBOR 1 Month + 0.82%), 6/15/35(a)(c)			700		696,484
BX Trust Series 2018-EXCL, Class A 3.001% (LIBOR 1 Month + 1.09%), 9/15/37(a)(c)			780		778,382
DBWF Mortgage Trust Series 2018-GLKS, Class A 2.876% (LIBOR 1 Month + 1.03%), 11/19/35(a)(c)			541		541,300

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Great Wolf Trust Series 2017-WOLF, Class A 2.764% (LIBOR 1 Month + 0.85%), 9/15/34(a)(c)	U.S.$		655	$	655,000
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 3.114% (LIBOR 1 Month + 1.20%), 6/15/38(a)(c)			725		725,502
Series2019-SMP, Class A 3.064% (LIBOR 1 Month + 1.15%), 8/15/32(a)(c)			700		701,722
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 3.864% (LIBOR 1 Month + 1.95%), 11/15/26(c)(h)			173		172,492
Series2019-BPR, Class C 4.971% (LIBOR 1 Month + 3.05%), 5/15/36(a)(c)			520		519,990
Starwood Retail Property Trust Series 2014-STAR, Class A 3.134% (LIBOR 1 Month + 1.22%), 11/15/27(a)(c)			1,045		1,043,295
					10,559,365
Agency CMBS – 0.0%
Government National Mortgage Association Series2006-39, Class IO 0.00%, 7/16/46(e)			782		8
Total Commercial Mortgage-Backed Securities (cost $43,508,688)					44,679,705
COLLATERALIZED MORTGAGE OBLIGATIONS – 11.0%
Risk Share Floating Rate – 9.2%
Bellemeade Re Ltd. Series2017-1, Class M1 3.523% (LIBOR 1 Month + 1.70%), 10/25/27(a)(c)			186		187,089
Series2018-2A, Class M1B 3.173% (LIBOR 1 Month + 1.35%), 8/25/28(a)(c)			505		505,997
Series2018-3A, Class M1B 3.673% (LIBOR 1 Month + 1.85%), 10/25/28(a)(c)			815		814,999
Series2018-3A, Class M2 4.573% (LIBOR 1 Month + 2.75%), 10/25/28(a)(c)			325		325,773

28    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2019-2A, Class M1C 3.823% (LIBOR 1 Month + 2.00%), 4/25/29(a)(c)	U.S.$		337	$	336,558
Series2019-2A, Class M2 4.923% (LIBOR 1 Month + 3.10%), 4/25/29(a)(c)			325		329,296
Series2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(a)(c)			359		359,380
Series2019-3A, Class M1C 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(a)(c)			263		263,539
Series2019-4A, Class M1B 3.914% (LIBOR 1 Month + 2.00%), 10/25/29(a)(c)			885		885,004
Connecticut Avenue Securities Trust Series2018-R07, Class 1M2 4.223% (LIBOR 1 Month + 2.40%), 4/25/31(a)(c)			378		380,636
Series2019-R01, Class 2M2 4.273% (LIBOR 1 Month + 2.45%), 7/25/31(a)(c)			845		851,650
Series2019-R02, Class 1M2 4.123% (LIBOR 1 Month + 2.30%), 8/25/31(a)(c)			335		337,072
Series2019-R03, Class 1M2 3.973% (LIBOR 1 Month + 2.15%), 9/25/31(a)(c)			670		672,206
Series2019-R05, Class 1M2 3.823% (LIBOR 1 Month + 2.00%), 7/25/39(a)(c)			890		892,042
Series2019-R06, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 9/25/39(a)(c)			890		892,108
Series2019-R07, Class 1M2 3.923% (LIBOR 1 Month + 2.10%), 10/25/39(a)(c)			895		894,842
Eagle Re Ltd. Series2018-1, Class M2 4.823% (LIBOR 1 Month + 3.00%), 11/25/28(a)(c)			325		325,440
Series2019-1, Class M2 5.123% (LIBOR 1 Month + 3.30%), 4/25/29(a)(c)			325		330,455
Federal Home Loan Mortgage Corp. Series 2019-DNA1, Class M2 4.473% (LIBOR 1 Month + 2.65%), 1/25/49(a)(c)			750		760,548

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-DNA4, Class M2 3.828% (LIBOR 1 Month + 1.95%), 10/25/49(a)(c)	U.S.$		885	$	884,997
Series 2019-FTR2, Class M2 3.973% (LIBOR 1 Month + 2.15%), 11/25/48(a)(c)			895		894,998
Series 2019-HQA1, Class M2 4.173% (LIBOR 1 Month + 2.35%), 2/25/49(a)(c)			800		806,058
Series 2019-HQA3, Class M2 3.672% (LIBOR 1 Month + 1.85%), 9/25/49(a)(c)			355		354,186
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series2014-DN3, Class M3 5.823% (LIBOR 1 Month + 4.00%), 8/25/24(c)			593		620,801
Series2014-HQ3, Class M3 6.573% (LIBOR 1 Month + 4.75%), 10/25/24(c)			551		583,226
Series 2015-DNA2, Class M2 4.423% (LIBOR 1 Month + 2.60%), 12/25/27(c)			129		129,079
Series 2015-HQA1, Class M2 4.473% (LIBOR 1 Month + 2.65%), 3/25/28(c)			81		81,509
Series 2015-HQA2, Class M3 6.623% (LIBOR 1 Month + 4.80%), 5/25/28(c)			500		535,592
Series 2016-DNA1, Class M3 7.373% (LIBOR 1 Month + 5.55%), 7/25/28(c)			330		363,162
Series 2016-DNA2, Class M3 6.473% (LIBOR 1 Month + 4.65%), 10/25/28(c)			641		687,317
Series 2017-DNA3, Class M2 4.323% (LIBOR 1 Month + 2.50%), 3/25/30(c)			250		255,005
Series 2017-HQA2, Class M2 4.473% (LIBOR 1 Month + 2.65%), 12/25/29(c)			250		256,608
Federal National Mortgage Association Connecticut Avenue Securities Series2014-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 7/25/24(c)			254		266,691

30    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2014-C04, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 11/25/24(c)	U.S.$		103	$	109,880
Series2015-C01, Class 1M2 6.123% (LIBOR 1 Month + 4.30%), 2/25/25(c)			191		201,495
Series2015-C01, Class 2M2 6.373% (LIBOR 1 Month + 4.55%), 2/25/25(c)			197		203,408
Series2015-C02, Class 1M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(c)			352		371,255
Series2015-C02, Class 2M2 5.823% (LIBOR 1 Month + 4.00%), 5/25/25(c)			208		215,887
Series2015-C03, Class 1M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(c)			433		466,685
Series2015-C03, Class 2M2 6.823% (LIBOR 1 Month + 5.00%), 7/25/25(c)			373		395,825
Series2015-C04, Class 1M2 7.523% (LIBOR 1 Month + 5.70%), 4/25/28(c)			602		658,218
Series2015-C04, Class 2M2 7.373% (LIBOR 1 Month + 5.55%), 4/25/28(c)			380		404,747
Series2016-C01, Class 1M2 8.573% (LIBOR 1 Month + 6.75%), 8/25/28(c)			841		927,538
Series2016-C01, Class 2M2 8.773% (LIBOR 1 Month + 6.95%), 8/25/28(c)			359		386,614
Series2016-C02, Class 1M2 7.823% (LIBOR 1 Month + 6.00%), 9/25/28(c)			971		1,058,320
Series2016-C03, Class 2M2 7.723% (LIBOR 1 Month + 5.90%), 10/25/28(c)			978		1,053,902
Series2016-C05, Class 2M2 6.273% (LIBOR 1 Month + 4.45%), 1/25/29(c)			1,092		1,147,309
Series2017-C01, Class 1M2 5.373% (LIBOR 1 Month + 3.55%), 7/25/29(c)			465		486,799
Series2017-C03, Class 1M2 4.823% (LIBOR 1 Month + 3.00%), 10/25/29(c)			485		504,723

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2017-C04, Class 2M2 4.673% (LIBOR 1 Month + 2.85%), 11/25/29(c)	U.S.$		320	$	329,097
Series2017-C05, Class 1M2 4.023% (LIBOR 1 Month + 2.20%), 1/25/30(c)			500		505,885
Series2017-C07, Class 2M2 4.323% (LIBOR 1 Month + 2.50%), 5/25/30(c)			300		303,667
Series2019-R04, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 6/25/39(a)(c)			900		902,677
Home Re Ltd. Series2018-1, Class M1 3.423% (LIBOR 1 Month + 1.60%), 10/25/28(a)(c)			518		523,169
JP Morgan Madison Avenue Securities Trust Series2014-CH1, Class M2 6.073% (LIBOR 1 Month + 4.25%), 11/25/24(c)(h)			71		75,251
Oaktown Re III Ltd. Series2019-1A, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(a)(c)			710		709,924
PMT Credit Risk Transfer Trust Series2019-1R, Class A 4.054% (LIBOR 1 Month + 2.00%), 3/27/24(c)(h)			473		471,368
Series2019-2R, Class A 4.804% (LIBOR 1 Month + 2.75%), 5/27/23(c)(h)			645		648,494
Series2019-3R, Class A 4.164% (LIBOR 1 Month + 2.70%), 8/27/24(c)(h)			555		555,009
Radnor Re Ltd. Series2019-1, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 2/25/29(a)(c)			835		835,255
Series2019-2, Class M1B 3.573% (LIBOR 1 Month + 1.75%), 6/25/29(a)(c)			351		351,365
STACR Trust Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(a)(c)			880		881,378

32    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Wells Fargo Credit Risk Transfer Securities Trust Series2015-WF1, Class 1M2 7.073% (LIBOR 1 Month + 5.25%), 11/25/25(c)(h)	U.S.$		313	$	352,403
Series2015-WF1, Class 2M2 7.323% (LIBOR 1 Month + 5.50%), 11/25/25(c)(h)			93		107,063
					33,208,473
Agency Floating Rate – 1.1%
Federal Home Loan Mortgage Corp. REMICs Series 4116, Class LS 4.279% (6.20% – LIBOR 1 Month), 10/15/42(c)(i)			1,289		287,079
Series 4719, Class JS 4.229% (6.15% – LIBOR 1 Month), 9/15/47(c)(i)			1,502		244,547
Federal National Mortgage Association REMICs Series2011-131, Class ST 4.717% (6.54% – LIBOR 1 Month), 12/25/41(c)(i)			904		193,132
Series2012-70, Class SA 4.727% (6.55% – LIBOR 1 Month), 7/25/42(c)(i)			1,634		374,237
Series2015-90, Class SL 4.327% (6.15% – LIBOR 1 Month), 12/25/45(c)(i)			1,778		366,297
Series2016-77, Class DS 4.177% (6.00% – LIBOR 1 Month), 10/25/46(c)(i)			1,772		326,740
Series2017-16, Class SG 4.227% (6.05% – LIBOR 1 Month), 3/25/47(c)(i)			1,856		349,925
Series2017-26, Class TS 4.127% (5.95% – LIBOR 1 Month), 4/25/47(c)(i)			1,729		360,247
Series2017-62, Class AS 4.327% (6.15% – LIBOR 1 Month), 8/25/47(c)(i)			1,831		318,227
Series2017-81, Class SA 4.377% (6.20% – LIBOR 1 Month), 10/25/47(c)(i)			1,865		381,116
Series2017-97, Class LS 4.377% (6.20% – LIBOR 1 Month), 12/25/47(c)(i)			1,620		368,902

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Government National Mortgage Association Series2017-65, Class ST 4.304% (6.15% – LIBOR 1 Month), 4/20/47(c)(i)	U.S.$		1,779	$	376,150
					3,946,599
Non-Agency Fixed Rate – 0.5%
Alternative Loan Trust Series 2006-24CB, Class A16 5.75%, 8/25/36			276		225,773
Series 2006-28CB, Class A14 6.25%, 10/25/36			201		165,649
Series2006-J1, Class 1A13 5.50%, 2/25/36			150		134,228
Countrywide Home Loan Mortgage Pass-Through Trust Series2006-13, Class 1A19 6.25%, 9/25/36			74		57,266
First Horizon Alternative Mortgage Securities Trust Series2006-FA3, Class A9 6.00%, 7/25/36			241		184,428
JP Morgan Alternative Loan Trust Series2006-A3, Class 2A1 4.235%, 7/25/36			666		593,365
Structured Asset Securities Corp. Mortgage Pass-Through Certificates Series2002-3, Class B3 6.50%, 3/25/32			452		253,000
					1,613,709
Non-Agency Floating Rate – 0.2%
DeutscheAlt-A Securities Mortgage Loan Trust Series2006-AR4, Class A2 2.013% (LIBOR 1 Month + 0.19%), 12/25/36(c)			598		319,831
HomeBanc Mortgage Trust Series2005-1, Class A1 2.073% (LIBOR 1 Month + 0.25%), 3/25/35(c)			173		156,725
Impac Secured Assets Corp. Series2005-2, Class A2D 2.253% (LIBOR 1 Month + 0.43%), 3/25/36(c)			296		259,264
Residential Accredit Loans, Inc. Trust Series2007-QS4, Class 2A4 2.163% (LIBOR 1 Month + 0.34%), 3/25/37(c)			637		141,309
					877,129

34    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Agency Fixed Rate – 0.0%
Federal National Mortgage Association Grantor Trust Series2004-T5, Class AB4 2.558%, 5/28/35(f)	U.S.$		65	$	62,884
Total Collateralized Mortgage Obligations (cost $39,509,624)					39,708,794
INFLATION-LINKED SECURITIES – 7.4%
Japan – 1.0%
Japanese Government CPI Linked Bond Series 22 0.10%, 3/10/27	JPY		378,739		3,633,428
United States – 6.4%
U.S. Treasury Inflation Index 0.125%,4/15/21-7/15/26 (TIPS)	U.S.$		17,898		17,833,608
0.375%, 7/15/25 (TIPS)			4,460		4,528,303
0.75%, 7/15/28 (TIPS)			675		709,882
					23,071,793
Total Inflation-Linked Securities (cost $26,373,282)					26,705,221
ASSET-BACKED SECURITIES – 5.6%
Autos - Fixed Rate – 3.2%
Avis Budget Rental Car Funding AESOP LLC Series2016-1A, Class A 2.99%, 6/20/22(a)			418		422,854
Series2018-1A, Class A 3.70%, 9/20/24(a)			920		964,094
Series2018-2A, Class A 4.00%, 3/20/25(a)			755		803,744
CPS Auto Receivables Trust Series2016-C, Class E 8.39%, 9/15/23(a)			600		629,591
CPS Auto Trust Series2017-A, Class E 7.07%, 4/15/24(a)			550		577,336
Exeter Automobile Receivables Trust Series2016-1A, Class D 8.20%, 2/15/23(a)			270		281,595
Series2016-3A, Class D 6.40%, 7/17/23(a)			350		365,051
Series2017-1A, Class D 6.20%, 11/15/23(a)			525		551,721
Series2017-3A, Class A 2.05%, 12/15/21(a)			20		19,683

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2017-3A, Class C 3.68%, 7/17/23(a)	U.S.$		385	$	392,108
Flagship Credit Auto Trust Series2016-2, Class D 8.56%, 11/15/23(a)			350		374,699
Series2016-4, Class E 6.44%, 1/16/24(a)			565		596,388
Series2017-3, Class A 1.88%, 10/15/21(a)			57		56,649
Series2017-4, Class A 2.07%, 4/15/22(a)			93		93,396
Series2018-3, Class B 3.59%, 12/16/24(a)			675		688,025
Ford Credit Floorplan Master Owner Trust Series2017-1, Class A1 2.07%, 5/15/22			710		710,216
Hertz Vehicle Financing II LP Series2015-1A, Class B 3.52%, 3/25/21(a)			386		387,547
Series2015-3A, Class A 2.67%, 9/25/21(a)			180		180,735
Series2017-1A, Class A 2.96%, 10/25/21(a)			950		956,463
Series2019-1A, Class A 3.71%, 3/25/23(a)			680		700,716
Series2019-2A, Class A 3.42%, 5/25/25(a)			500		518,308
Hertz Vehicle Financing LLC Series2018-2A, Class A 3.65%, 6/27/22(a)			1,035		1,056,170
Wheels SPV 2 LLC Series2016-1A, Class A3 1.87%, 5/20/25(a)			196		195,916
					11,523,005
Other ABS - Fixed Rate – 1.7%
CLUB Credit Trust Series2017-P2, Class A 2.61%, 1/15/24(a)(f)			49		48,832
Consumer Loan Underlying Bond Credit Trust Series2017-P1, Class B 3.56%, 9/15/23(a)(f)			162		161,730
Series2018-P1, Class A 3.39%, 7/15/25(a)(f)			173		173,432
Marlette Funding Trust Series2017-1A, Class C 6.658%, 3/15/24(a)(f)			750		755,610

36    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2017-3A, Class B 3.01%, 12/15/24(a)(f)	U.S.$		348	$	347,924
Series2018-3A, Class A 3.20%, 9/15/28(a)(f)			253		253,700
Series2018-4A, Class A 3.71%, 12/15/28(a)(f)			229		230,668
Series2019-3A, Class A 2.69%, 9/17/29(a)(f)			590		591,904
Prosper Marketplace Issuance Trust Series2019-3A, Class A 3.19%, 7/15/25(a)(f)			326		327,646
SBA Tower Trust Series2015-1A,Class C 3.156%, 10/08/20(a)(f)			688		689,259
SoFi Consumer Loan Program LLC Series2016-2, Class A 3.09%, 10/27/25(a)(f)			81		81,719
Series2016-3, Class A 3.05%, 12/26/25(a)(f)			108		107,793
Series2017-1, Class A 3.28%, 1/26/26(a)(f)			104		105,238
Series2017-2, Class A 3.28%, 2/25/26(a)f)			151		152,682
Series2017-3, Class A 2.77%, 5/25/26(a)(f)			137		137,979
Series2017-4, Class B 3.59%, 5/26/26(a)(f)			870		883,275
Series2017-6, Class A2 2.82%, 11/25/26(a)(f)			619		621,753
SoFi Consumer Loan Program Trust Series2018-1, Class A1 2.55%, 2/25/27(a)(f)			31		30,594
Series2018-3, Class A2 3.67%, 8/25/27(a)(f)			341		345,646
					6,047,384
Credit Cards - Fixed Rate – 0.7%
World Financial Network Credit Card Master Trust Series2018-B, Class A 3.46%, 7/15/25			330		338,839
Series2018-B, Class M 3.81%, 7/15/25			825		847,790
Series2019-A, Class M 3.61%, 12/15/25			780		801,150
Series2019-B, Class M 3.04%, 4/15/26			600		605,091
					2,592,870

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Home Equity Loans - Fixed Rate – 0.0%
Credit-Based Asset Servicing & Securitization LLC Series2003-CB1, Class AF 3.95%, 1/25/33(f)	U.S.$		56	$	57,893
Home Equity Loans - Floating Rate – 0.0%
ABFC Trust Series2003-WF1, Class A2 2.948% (LIBOR 1 Month + 1.13%), 12/25/32(c)(f)			25		25,102
Total Asset-Backed Securities (cost $19,795,660)					20,246,254
CORPORATES –NON-INVESTMENT GRADE – 2.2%
Financial Institutions – 1.5%
Banking – 1.3%
CIT Group, Inc. 5.25%, 3/07/25			383		421,721
Citigroup, Inc. 5.95%, 1/30/23(b)			216		228,396
Series Q 5.95%, 8/15/20(b)			575		586,581
Credit Suisse Group AG 7.50%, 7/17/23(a)(b)			1,020		1,100,284
Goldman Sachs Group, Inc. (The) Series M 5.375%, 5/10/20(b)			482		487,008
Series P 5.00%, 11/10/22(b)			152		150,837
Morgan Stanley Series J 5.55%, 7/15/20(b)			110		111,823
Royal Bank of Scotland Group PLC 8.625%, 8/15/21(b)			320		344,230
Series U 4.424% (LIBOR 3 Month + 2.32%), 9/30/27(b)(c)			700		681,044
Standard Chartered PLC 3.446% (LIBOR 3 Month + 1.51%), 1/30/27(a)(b)(c)			400		334,812
7.50%, 4/02/22(a)(b)			363		384,780
					4,831,516

38    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.2%
Navient Corp. 6.625%, 7/26/21	U.S.$		440	$	465,885
7.25%, 1/25/22			99		107,377
					573,262
					5,404,778
Industrial – 0.7%
Capital Goods – 0.1%
TransDigm, Inc. 6.25%, 3/15/26(a)			362		387,782
Communications - Media – 0.1%
CSC Holdings LLC 6.75%, 11/15/21			120		129,320
Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375%, 8/15/26(a)			226		236,306
					365,626
Consumer Cyclical - Automotive – 0.0%
Panther BF Aggregator 2 LP/Panther Finance Co., Inc. 4.375%, 5/15/26(a)	EUR		130		146,172
ConsumerNon-Cyclical – 0.2%
Spectrum Brands, Inc. 5.75%, 7/15/25	U.S.$		512		534,697
Energy – 0.2%
Sunoco LP/Sunoco Finance Corp. 4.875%, 1/15/23			459		471,076
Transocean Poseidon Ltd. 6.875%, 2/01/27(a)			225		227,133
					698,209
Technology – 0.1%
CommScope, Inc. 5.50%, 3/01/24(a)			172		174,525
6.00%, 3/01/26(a)			235		241,441
					415,966
					2,548,452
Total Corporates –Non-Investment Grade (cost $7,856,094)					7,953,230

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS – CORPORATE BONDS – 0.5%
Industrial – 0.5%
Capital Goods – 0.0%
Odebrecht Finance Ltd. 5.25%, 6/27/29(a)(j)(k)	U.S.$		341	$	24,403
7.125%, 6/26/42(a)(j)(k)			394		25,979
					50,382
ConsumerNon-Cyclical – 0.4%
BRF GmbH 4.35%, 9/29/26(a)			350		348,797
BRF SA 3.95%, 5/22/23(a)			203		204,015
Minerva Luxembourg SA 6.50%, 9/20/26(a)			700		733,250
Virgolino de Oliveira Finance SA 10.50%, 1/28/18(h)(j)(l)			660		24,684
					1,310,746
Transportation - Services – 0.1%
Rumo Luxembourg SARL 5.875%, 1/18/25(a)			315		334,491
					1,695,619
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 3/01/26(h)			153		156,825
Total Emerging Markets – Corporate Bonds (cost $2,575,578)					1,852,444
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 0.4%
United States – 0.4%
State of California Series 2010 7.625%, 3/01/40 (cost $1,392,357)			970		1,579,820
QUASI-SOVEREIGNS – 0.4%
Quasi-Sovereign Bonds – 0.4%
Indonesia – 0.2%
Pertamina Persero PT 6.45%, 5/30/44(a)			570		728,353
Mexico – 0.2%
Petroleos Mexicanos 6.75%, 9/21/47			392		390,175

40    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
6.84%, 1/23/30(a)	U.S.$		143	$	152,474
					542,649
Total Quasi-Sovereigns (cost $1,145,946)					1,271,002
EMERGING MARKETS – TREASURIES – 0.2%
South Africa – 0.2%
Republic of South Africa Government Bond Series 2030 8.00%, 1/31/30 (cost $750,747)	ZAR		12,401		755,471
		Shares
COMMON STOCKS – 0.2%
Financials – 0.2%
Insurance – 0.2%
Mt Logan Re Ltd. (Preference Shares)(f)(m)† (cost $626,000)			626		591,893
		Principal Amount (000)
EMERGING MARKETS – SOVEREIGNS – 0.1%
Egypt – 0.1%
Egypt Government International Bond 6.125%, 1/31/22(a) (cost $235,000)	U.S.$		235		242,931
		Shares
SHORT-TERM INVESTMENTS – 5.1%
Investment Companies – 3.1%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(n)(o)(p) (cost $10,999,798)			10,999,798		10,999,798
		Principal Amount (000)
Governments – Treasuries – 2.0%
Japan – 2.0%
Japan Treasury Discount Bill Series 850 Zero Coupon, 11/11/19	JPY		177,000		1,639,075

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 854 Zero Coupon, 12/02/19	JPY		586,000	$	5,427,078
Total Governments – Treasuries (cost $7,094,895)					7,066,153
Total Short-Term Investments (cost $18,094,693)					18,065,951
Total Investments – 101.6% (cost $354,184,158)					365,608,907
Other assets less liabilities – (1.6)%					(5,845,287	)
Net Assets – 100.0%				$	359,763,620

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		33		December 2019	$	4,689,609	$	14,798
U.S.T-Note 2 Yr (CBT) Futures		169		December 2019		36,436,664		(38,911	)
U.S. Ultra Bond (CBT) Futures		20		December 2019		3,795,000		(72,030	)
Sold Contracts
10 Yr Japan Bond (OSE) Futures		3		December 2019		4,276,785		33,943
U.S.T-Note 5 Yr (CBT) Futures		16		December 2019		1,907,250		(3,645	)
							$	(65,845	)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	USD	423	NZD	661		11/07/19	$	847
BNP Paribas SA	NZD	1,557	USD	978		11/07/19		(21,027	)
BNP Paribas SA	USD	848	NZD	1,325		11/07/19		1,509
Citibank, NA	BRL	4,108	USD	1,029		11/04/19		4,613
Citibank, NA	USD	489	BRL	2,054		11/04/19		22,673
Citibank, NA	USD	513	BRL	2,054		11/04/19		(818	)
Citibank, NA	USD	736	COP	2,478,167		11/14/19		(3,439	)
Citibank, NA	USD	944	JPY	101,276		11/21/19		(5,323	)
Citibank, NA	USD	2,313	CAD	3,062		11/22/19		12,033
Citibank, NA	USD	515	BRL	2,054		12/03/19		(3,895	)
Citibank, NA	USD	889	PLN	3,495		1/09/20		26,145
Deutsche Bank AG	JPY	403,097	USD	3,752		11/21/19		15,736
Goldman Sachs Bank USA	CAD	2,995	USD	2,258		11/22/19		(16,489	)

42    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
HSBC Bank USA	JPY	737,933	USD	6,811		11/25/19	$	(30,529	)
Morgan Stanley & Co., Inc.	NZD	1,413	USD	893		11/07/19		(12,804	)
Natwest Markets PLC	COP	2,476,557	USD	718		11/14/19		(14,287	)
State Street Bank & Trust Co.	NZD	991	USD	632		11/07/19		(3,406	)
State Street Bank & Trust Co.	JPY	25,355	USD	236		11/21/19		976
State Street Bank & Trust Co.	ZAR	3,246	USD	219		11/21/19		4,933
State Street Bank & Trust Co.	USD	372	GBP	289		1/10/20		2,600
State Street Bank & Trust Co.	EUR	1,629	USD	1,797		1/16/20		(29,907	)
State Street Bank & Trust Co.	MYR	3,844	USD	916		2/13/20		(5,324	)
							$	(55,183	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAIG Series 32, 5 Year Index, 6/20/24*		(1.00	)%		Quarterly		0.48	%		USD	5,620	$	(135,660	)	$	(95,263	)	$	(40,397	)

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
CAD	27,650		8/27/21	3 Month CDOR	1.623%	Semi-Annual/Semi-Annual	$	(85,894	)	$	171	$	(86,065	)
SEK	121,200		8/30/24	3 Month STIBOR	(0.165)%	Quarterly/Annual		(216,973	)		—		(216,973	)
							$	(302,867	)	$	171	$	(303,038	)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS(continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)%		Monthly		0.29	%		USD	57	$	(679	)	$	696	$	(1,375	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	362		7,276			29,032		(21,756	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	723		14,532			54,594		(40,062	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	723		14,532			52,735		(38,203	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	892		17,929			62,866		(44,937	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	180		3,618			12,343		(8,725	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	179		3,598			12,275		(8,677	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	171		3,437			11,989		(8,552	)
Credit Suisse International
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	2,085		(24,805	)		25,300		(50,105	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	20		(238	)		177		(415	)
Deutsche Bank AG
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	695		(8,269	)		9,092		(17,361	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	2,592		(30,838	)		26,604		(57,442	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	777		(9,244	)		7,907		(17,151	)
Goldman Sachs International
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	762		(9,066	)		9,887		(18,953	)
CDX-CMBX.NA.AAA Series 9, 9/17/58*		(0.50	)		Monthly		0.29			USD	169		(2,011	)		1,554		(3,565	)
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)		Monthly		3.40			USD	1,650		33,027			103,391		(70,364	)

44    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00	%		Monthly		11.58	%		USD	16	$	(2,462	)	$	(2,579	)	$	117
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	144		(22,151	)		(23,447	)		1,296
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	152		(23,424	)		(23,560	)		136
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	304		(46,764	)		(47,684	)		920
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	26		(4,003	)		(4,174	)		171
CDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	1,284		(197,515	)		(207,717	)		10,202
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	201		(17,108	)		(26,746	)		9,638
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly	��	6.42			USD	85		(7,235	)		(11,579	)		4,344
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	252		(21,471	)		(28,946	)		7,475
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	362		(30,843	)		(41,581	)		10,738
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	504		(42,941	)		(56,613	)		13,672
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	723		(61,599	)		(81,212	)		19,613
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	504		(42,941	)		(55,501	)		12,560
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	857		(73,016	)		(92,167	)		19,151
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	540		(46,008	)		(58,371	)		12,363
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	200		(17,040	)		(21,591	)		4,551
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	180		(15,336	)		(22,914	)		7,578
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	153		(13,036	)		(19,477	)		6,441

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	252	$	(21,470	)	$	(32,079	)	$	10,609
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	178		(15,165	)		(23,405	)		8,240
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	297		(25,279	)		(45,746	)		20,467
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	41		(3,490	)		(6,626	)		3,136
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	269		(22,897	)		(40,223	)		17,326
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	351		(29,934	)		(42,467	)		12,533
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	105		(8,955	)		(12,704	)		3,749
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	107		(9,107	)		(10,919	)		1,812
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	36		(3,068	)		(4,652	)		1,584
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	509		(43,324	)		(33,037	)		(10,287	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	155		(13,193	)		(10,752	)		(2,441	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,882		(160,174	)		(77,196	)		(82,978	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	2,150		(183,000	)		(124,840	)		(58,160	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	291		(24,768	)		(43,314	)		18,546
Deutsche Bank AG
CDX-CMBX.NA.A Series 6, 5/11/63*		2.00			Monthly		1.88			USD	850		3,561			(16,683	)		20,244
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	745		(63,412	)		(52,387	)		(11,025	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	46		(3,915	)		(2,649	)		(1,266	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	531		(45,197	)		(43,822	)		(1,375	)

46    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	179	$	(15,236	)	$	(20,543	)	$	5,307
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	181		(15,406	)		(20,764	)		5,358
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	530		(45,111	)		(57,287	)		12,176
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	52		(4,426	)		(6,116	)		1,690
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	322		(27,407	)		(40,710	)		13,303
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	760		(64,688	)		(60,705	)		(3,983	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,125		(95,757	)		(86,291	)		(9,466	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	260		(22,131	)		(35,503	)		13,372
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	574		(48,857	)		(76,354	)		27,497
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	356		(30,302	)		(38,055	)		7,753
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	219		(18,640	)		(14,567	)		(4,073	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	311		(26,471	)		(26,963	)		492
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	26		(2,213	)		(2,338	)		125
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	52		(4,426	)		(4,762	)		336
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	52		(4,426	)		(5,153	)		727
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	104		(8,852	)		(11,265	)		2,413
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	90		(7,667	)		(11,580	)		3,913
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	325		(27,662	)		(50,125	)		22,463
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	224		(19,066	)		(36,733	)		17,667

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PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	313	$	(26,642	)	$	(52,067	)	$	25,425
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	20		(1,703	)		(3,048	)		1,345
JPMorgan Securities LLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	61		(5,192	)		(7,810	)		2,618
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,550		(132,060	)		(216,094	)		84,034
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	374		(31,834	)		(46,019	)		14,185
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	130		(11,065	)		(16,137	)		5,072
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	131		(11,150	)		(12,788	)		1,638
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	30		(2,553	)		(2,936	)		383
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	32		(2,724	)		(3,133	)		409
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	800		(68,093	)		(118,623	)		50,530
												$	(2,126,641	)	$	(2,113,387	)	$	(13,254	)

* Termination date

† Fair valued by the Adviser.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $77,657,473 or 21.6% of net assets.

(b) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(d) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(e) IO – Interest Only.

(f) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(g) Illiquid security.

48    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

(h) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.71% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
JP Morgan Madison Avenue Securities Trust Series2014-CH1, Class M2 6.073%, 11/25/24		11/06/15	$	70,536	$	75,251		0.02	%
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 3.864%, 11/15/26		11/16/15		172,189		172,492		0.05	%
PMT Credit Risk Transfer Trust Series2019-1R, Class A 4.054%, 3/27/24		3/21/19		472,539		471,368		0.13	%
PMT Credit Risk Transfer Trust Series2019-2R, Class A 4.804%, 5/27/23		6/07/19		645,076		648,494		0.18	%
PMT Credit Risk Transfer Trust Series2019-3R, Class A 4.164%, 8/27/24		10/11/19		555,000		555,009		0.15	%
Terraform Global Operating LLC 6.125%, 3/01/26		2/08/18		153,000		156,825		0.04	%
Virgolino de Oliveira Finance SA 10.50%, 1/28/18		1/24/14		365,927		24,684		0.01	%
Wells Fargo Credit Risk Transfer Securities Trust Series2015-WF1, Class 1M2 7.073%, 11/25/25		9/28/15		312,999		352,403		0.10	%
Wells Fargo Credit Risk Transfer Securities Trust Series2015-WF1, Class 2M2 7.323%, 11/25/25		9/28/15		92,545		107,063		0.03	%

(i) Inverse interest only security.

(j) Non-income producing security.

(k) Defaulted.

(l) Defaulted matured security.

(m) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		12/30/14	$	626,000	$	591,893		0.16	%

(n) Affiliated investments.

(o) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800)227-4618.

(p) The rate shown represents the7-day yield as of period end.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS(continued)

Currency Abbreviations:

BRL – Brazilian Real

CAD – Canadian Dollar

COP – Colombian Peso

EUR – Euro

GBP – Great British Pound

JPY – Japanese Yen

MYR – Malaysian Ringgit

NZD – New Zealand Dollar

PLN – Polish Zloty

SEK – Swedish Krona

USD – United States Dollar

ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

ARMs – Adjustable Rate Mortgages

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAIG – North American Investment Grade Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rates

OSE – Osaka Securities Exchange

REMICs – Real Estate Mortgage Investment Conduits

STIBOR – Stockholm Interbank Offered Rate

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

50    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $343,184,360)	$	354,609,109
Affiliated issuers (cost $10,999,798)		10,999,798
Cash		4,209
Cash collateral due from broker		710,145
Foreign currencies, at value (cost $17,366)		17,297
Receivable for investment securities sold		3,585,951
Interest receivable		1,892,766
Receivable for capital stock sold		568,158
Receivable for variation margin on futures		109,224
Market value on credit default swaps (net premiums paid $322,542)		101,510
Unrealized appreciation on forward currency exchange contracts		92,065
Receivable for variation margin on centrally cleared swaps		35,497
Receivable due from Adviser		29,329
Receivable for newly entered credit default swaps		23,454
Affiliated dividends receivable		8,946
Total assets		372,787,458
Liabilities
Payable for investment securities purchased		9,431,569
Market value on credit default swaps (net premiums received $2,435,929)		2,228,151
Payable for capital stock redeemed		690,686
Dividends payable		165,275
Unrealized depreciation on forward currency exchange contracts		147,248
Distribution fee payable		59,284
Administrative fee payable		25,106
Transfer Agent fee payable		21,632
Directors’ fees payable		1,936
Accrued expenses and other liabilities		252,951
Total liabilities		13,023,838
Net Assets	$	359,763,620
Composition of Net Assets
Capital stock, at par	$	31,699
Additionalpaid-in capital		352,826,712
Distributable earnings		6,905,209
	$	359,763,620

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES(continued)

Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	221,032,848		19,478,525	$	11.35	*
B	$	408,965		36,028	$	11.35
C	$	10,563,871		932,985	$	11.32
Advisor	$	104,849,853		9,234,899	$	11.35
R	$	3,298,146		290,730	$	11.34
K	$	7,443,819		655,334	$	11.36
I	$	4,106,797		361,421	$	11.36
Z	$	8,059,321		708,752	$	11.37

* The maximum offering price per share for Class A shares was $11.85 which reflects a sales charge of 4.25%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Interest	$	12,720,139
Dividends—Affiliated issuers		131,381		$	12,851,520
Expenses
Advisory fee (see Note B)		1,544,405
Distribution fee—Class A		555,012
Distribution fee—Class B		4,661
Distribution fee—Class C		110,086
Distribution fee—Class R		15,698
Distribution fee—Class K		20,136
Transfer agency—Class A		300,409
Transfer agency—Class B		887
Transfer agency—Class C		15,250
Transfer agency—Advisor Class		117,631
Transfer agency—Class R		8,163
Transfer agency—Class K		16,108
Transfer agency—Class I		3,321
Transfer agency—Class Z		1,517
Custodian		167,876
Registration fees		134,828
Audit and tax		105,815
Legal		93,018
Printing		84,486
Administrative		73,860
Directors’ fees		23,131
Miscellaneous		24,285
Total expenses		3,420,583
Less: expenses waived and reimbursed by the Adviser (see Note B)		(933,756	)
Net expenses					2,486,827
Net investment income					10,364,693
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					2,192,089
Forward currency exchange contracts					(425,342	)
Futures					1,138,182
Swaps					580,421
Foreign currency transactions					44,958
Net change in unrealized appreciation/depreciation of:
Investments(b)					19,143,484
Forward currency exchange contracts					87,959
Futures					343,178
Swaps					123,456
Foreign currency denominated assets and liabilities					(26,170	)
Net gain on investment and foreign currency transactions					23,202,215
Contributions from Affiliates (see Note B)					3,028
Net Increase in Net Assets from Operations				$	33,569,936

(a) Net of foreign capital gains taxes of $12,727.

(b) Net of increase in accrued foreign capital gains taxes of $3,569.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	10,364,693		$	8,438,575
Net realized gain (loss) on investment and foreign currency transactions		3,530,308			(4,788,075	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		19,671,907			(9,618,651	)
Contributions from Affiliates (see Note B)		3,028			– 0	–
Net increase (decrease) in net assets from operations		33,569,936			(5,968,151	)
Distributions to Shareholders
Class A		(7,511,236	)		(5,639,033	)
Class B		(12,399	)		(10,588	)
Class C		(292,422	)		(230,790	)
Advisor Class		(3,142,500	)		(2,116,445	)
Class R		(97,619	)		(58,255	)
Class K		(272,681	)		(154,794	)
Class I		(127,077	)		(74,462	)
Class Z		(273,970	)		(691,696	)
Capital Stock Transactions
Net increase (decrease)		11,877,351			(19,128,300	)
Total increase (decrease)		33,717,383			(34,072,514	)
Net Assets
Beginning of period		326,046,237			360,118,751
End of period	$	359,763,620		$	326,046,237

See notes to financial statements.

54    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Total Return Bond Portfolio (the “Fund”) (formerly AB Intermediate Bond Portfolio), a diversified portfolio. The Fund offers Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class T and Class Z shares. Class T shares have been authorized but currently are not offered. Class A shares are sold with afront-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Effective August 2, 2019, sales of Class B shares were suspended. On November 7, 2019, all remaining outstanding Class B shares of the Fund were converted to Class A shares. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS(continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by

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NOTES TO FINANCIAL STATEMENTS(continued)

contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows

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which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Corporates – Investment Grade	$	– 0	–	$	92,569,650	$	– 0	–	$	92,569,650
Mortgage Pass-Throughs		– 0	–		62,712,150		– 0	–		62,712,150
Governments – Treasuries		– 0	–		46,674,391		– 0	–		46,674,391
Commercial Mortgage-Backed Securities		– 0	–		44,422,489		257,216			44,679,705
Collateralized Mortgage Obligations		– 0	–		39,645,910		62,884			39,708,794
Inflation-Linked Securities		– 0	–		26,705,221		– 0	–		26,705,221
Asset-Backed Securities		– 0	–		14,115,875		6,130,379			20,246,254
Corporates –Non-Investment Grade		– 0	–		7,953,230		– 0	–		7,953,230
Emerging Markets – Corporate Bonds		– 0	–		1,852,444		– 0	–		1,852,444
Local Governments – US Municipal Bonds		– 0	–		1,579,820		– 0	–		1,579,820
Quasi-Sovereigns		– 0	–		1,271,002		– 0	–		1,271,002
Emerging Markets – Treasuries		– 0	–		755,471		– 0	–		755,471

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Investments in Securities:

Level 1

Level 2

Level 3

Total

Common Stocks

$

– 0

–

$

– 0

–

$

591,893

$

591,893

Emerging Markets – Sovereigns

– 0

–

242,931

– 0

–

242,931

Short-Term Investments:

Investment Companies

10,999,798

– 0

–

– 0

–

10,999,798

Governments – Treasuries

– 0

–

7,066,153

– 0

–

7,066,153

Total Investments in Securities

10,999,798

347,566,737

7,042,372

365,608,907

Other Financial Instruments(a):

Assets:

Futures

48,741

– 0

–

– 0

–

48,741

(b)

Forward Currency Exchange Contracts

– 0

–

92,065

– 0

–

92,065

Credit Default Swaps

– 0

–

101,510

– 0

–

101,510

Liabilities:

Futures

(114,586

)

– 0

–

– 0

–

(114,586

)(b)

Forward Currency Exchange Contracts

– 0

–

(147,248

)

– 0

–

(147,248

)

Centrally Cleared Credit Default Swaps

– 0

–

(135,660

)

– 0

–

(135,660

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(302,867

)

– 0

–

(302,867

)(b)

Credit Default Swaps

– 0

–

(2,228,151

)

– 0

–

(2,228,151

)

Total

$

10,933,953

$

344,946,386

$

7,042,372

$

362,922,711

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.    

	Commercial Mortgage- Backed Securities			Collateralized Mortgage Obligations			Asset- Backed Securities
Balance as of 10/31/18	$	6,195,563		$	716,264		$	8,563,828
Accrued discounts/(premiums)		1,298			– 0	–		253
Realized gain (loss)		65,432			– 0	–		480
Change in unrealized appreciation/depreciation		(110,218	)		1,620			71,367
Purchases/Payups		– 0	–		– 0	–		1,534,894
Sales/Paydowns		(1,124,330	)		– 0	–		(4,040,443	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		(4,770,529	)		(655,000	)		– 0	–
Balance as of 10/31/19	$	257,216		$	62,884		$	6,130,379
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(a)	$	(82,003	)	$	1,620		$	70,387

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NOTES TO FINANCIAL STATEMENTS(continued)

	Common Stocks			Emerging Markets - Corporate Bonds			Total
Balance as of 10/31/18	$	627,844		$	40,227		$	16,143,726
Accrued discounts/(premiums)		– 0	–		– 0	–		1,551
Realized gain (loss)		– 0	–		– 0	–		65,912
Change in unrealized appreciation/depreciation		(35,951	)		– 0	–		(73,182	)
Purchases/Payups		– 0	–		– 0	–		1,534,894
Sales/Paydowns		– 0	–		– 0	–		(5,164,773	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		(40,227	)		(5,465,756	)(b)
Balance as of 10/31/19	$	591,893		$	– 0	–	$	7,042,372
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(a)	$	(35,951	)	$	– 0	–	$	(45,947	)

(a) The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

(b) Amounts of $4,770,529, $655,000 and $40,227 for Commercial Mortgage-Backed Securities, Collateralized Mortgage Obligations and Emerging Markets – Corporate Bonds, respectively, were transfered out of Level 3 and into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability of such inputs during the reporting period.

The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at October 31, 2019. Securities priced by third party vendors are excluded from the following table:

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 10/31/19		Valuation Technique	Unobservable Input	Input
Commercial Mortgage-Backed Securities	$	257,216	Discounted Cash Flow	Discount Rate on Future Cash Flows	9%
Common Stocks	$	591,893	Market Approach	NAV Equivalent	$  945.52

Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in discount rates in isolation would be expected to result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in NAV Equivalent in isolation would be expected to result in a significantly higher (lower) fair value measurement.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

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Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and

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losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the next $2.5 billion up to $5 billion, .35% of the excess over $5 billion up to $8 billion and .30% in excess of $8 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding interest expense) on an annual basis (the “Expense Caps”) to .77%, 1.52%, 1.52%, .52%, 1.02%, .77%, .52%, and .52% of the daily average net assets for the Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, and Class Z shares, respectively. This waiver extends through January 31, 2020 and then may be extended by the Adviser for additional one year terms. For the year ended October 31, 2019, such reimbursements/waivers amounted to $928,028.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the reimbursement for such services amounted to $73,860.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $184,521 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales

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charges of $4,093 from the sale of Class A shares and received $782, $344 and $493 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $5,728.

Fund	Market Value 10/31/18 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	2,051	$	151,837	$	142,888	$	11,000	$	131

During the year ended October 31, 2019, the Adviser reimbursed the Fund $3,028 for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable, and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

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The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to both Class B and Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. Effective June 1, 2015, payments under the Agreement in respect of Class A shares are limited to an annual rate of .25% of Class A shares’ average daily net assets. There are no distribution and servicing fees on the Advisor Class, Class I and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $0, $1,204,925, $142,686 and $60,751 for Class B, Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	67,410,064	$	48,810,553
U.S. government securities		222,774,042		200,658,679

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	354,241,431
Gross unrealized appreciation	$	14,479,813
Gross unrealized depreciation		(3,370,238	)
Net unrealized appreciation	$	11,109,575

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon fornon-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are

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known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2019, the Fund held futures for hedging andnon-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2019, the Fund held forward currency exchange contracts for hedging andnon-hedging purposes.

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• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps fornon-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission

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merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on aphased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less thannon-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

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During the year ended October 31, 2019, the Fund held interest rate swaps for hedging andnon-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling

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protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2019, the Fund held credit default swaps for hedging andnon-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

During the year ended October 31, 2019, the Fund held variance swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

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During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	48,741	*	Receivable/Payable for variation margin on futures	$	114,586	*
Credit contracts					Receivable/Payable for variation margin on centrally cleared swaps		40,397	*
Interest rate contracts					Receivable/Payable for variation margin on centrally cleared swaps		303,038	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		92,065		Unrealized depreciation on forward currency exchange contracts		147,248
Credit contracts	Market value on credit default swaps		101,510		Market value on credit default swaps		2,228,151
Total		$	242,316			$	2,833,420

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	1,138,182		$	343,178
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(425,342	)		87,959

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	199,594		$	(691,338	)
Foreign exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(12,681	)		2,412
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		393,508			812,382
Total		$	1,293,261		$	554,593

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	42,355,061
Average notional amount of sale contracts	$	10,439,331
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	11,577,196
Average principal amount of sale contracts	$	29,049,640
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	99,715,169
Credit Default Swaps:
Average notional amount of buy contracts	$	12,787,769
Average notional amount of sale contracts	$	22,227,199
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	5,620,000
Variance Swaps:
Average notional amount	$	629,420	(a)

(a) Positions were open for four months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/

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pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Australia and New Zealand Banking Group Ltd.	$	847	$	– 0	–	$	– 0	–	$	– 0	–	$	847
BNP Paribas SA		1,509		(1,509	)		– 0	–		– 0	–		– 0	–
Citibank, NA		65,464		(13,475	)		– 0	–		– 0	–		51,989
Citigroup Global Markets, Inc.		64,922		(64,922	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		19,297		(19,297	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		33,027		(33,027	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		8,509		(8,509	)		– 0	–		– 0	–		– 0	–
Total	$	193,575	$	(140,739	)	$	– 0	–	$	– 0	–	$	52,836	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
BNP Paribas SA	$	21,027	$	(1,509	)	$	– 0	–	$	– 0	–	$	19,518
Citibank, NA		13,475		(13,475	)		– 0	–		– 0	–		– 0	–
Citigroup Global Markets, Inc.		824,937		(64,922	)		– 0	–		(603,437	)		156,578
Credit Suisse International		449,502		– 0	–		– 0	–		(449,502	)		– 0	–
Deutsche Bank AG		268,461		(19,297	)		– 0	–		(249,164	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		437,069		(33,027	)		– 0	–		(404,042	)		– 0	–
HSBC Bank USA		30,529		– 0	–		– 0	–		– 0	–		30,529
JPMorgan Securities LLC		196,578		– 0	–		– 0	–		(196,578	)		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley & Co., Inc.		80,897		– 0	–		– 0	–		– 0	–		80,897
Natwest Markets PLC		14,287		– 0	–		– 0	–		– 0	–		14,287
State Street Bank & Trust Co.		38,637		(8,509	)		– 0	–		– 0	–		30,128
Total	$	2,375,399	$	(140,739	)	$	– 0	–	$	(1,902,723	)	$	331,937	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

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2. Currency Transactions

The Fund may invest innon-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2019, the Fund earned drop income of $35,778 which is included in interest income in the accompanying statement of operations.

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NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		1,757,218			1,900,750		$	19,196,029		$	20,786,544
Shares issued in reinvestment of dividends and distributions		524,378			392,243			5,781,216			4,268,076
Shares converted from Class B		11,654			19,162			128,277			208,829
Shares converted from Class C		161,067			95,759			1,793,569			1,042,120
Shares redeemed		(3,348,527	)		(3,680,073	)		(36,976,828	)		(40,132,053	)
Net decrease		(894,210	)		(1,272,159	)	$	(10,077,737	)	$	(13,826,484	)
Class B
Shares sold		3,175			8,240		$	34,706		$	90,220
Shares issued in reinvestment of dividends and distributions		1,076			913			11,835			9,944
Shares converted to Class A		(11,651	)		(19,161	)		(128,277	)		(208,829	)
Shares redeemed		(4,565	)		(8,863	)		(50,676	)		(97,281	)
Net decrease		(11,965	)		(18,871	)	$	(132,412	)	$	(205,946	)
Class C
Shares sold		233,063			196,263		$	2,560,907		$	2,149,441
Shares issued in reinvestment of dividends and distributions		18,800			15,167			206,427			164,703
Shares converted to Class A		(161,416	)		(95,980	)		(1,793,569	)		(1,042,120	)
Shares redeemed		(224,164	)		(463,399	)		(2,453,077	)		(5,051,190	)
Net decrease		(133,717	)		(347,949	)	$	(1,479,312	)	$	(3,779,166	)
Advisor Class
Shares sold		5,806,792			4,494,203		$	63,820,451		$	49,172,690
Shares issued in reinvestment of dividends and distributions		165,044			103,975			1,825,673			1,131,720
Shares redeemed		(3,908,822	)		(3,488,497	)		(42,732,896	)		(37,974,997	)
Net increase		2,063,014			1,109,681		$	22,913,228		$	12,329,413

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	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class R
Shares sold		60,008			83,027		$	659,712		$	902,891
Shares issued in reinvestment of dividends and distributions		8,836			5,353			97,491			58,173
Shares redeemed		(42,410	)		(67,197	)		(471,877	)		(736,750	)
Net increase		26,434			21,183		$	285,326		$	224,314
Class K
Shares sold		332,303			343,565		$	3,617,130		$	3,718,375
Shares issued in reinvestment of dividends and distributions		24,713			14,176			272,598			154,252
Shares redeemed		(439,474	)		(148,580	)		(4,827,553	)		(1,621,568	)
Net increase (decrease)		(82,458	)		209,161		$	(937,825	)	$	2,251,059
Class I
Shares sold		169,670			109,622		$	1,880,717		$	1,187,631
Shares issued in reinvestment of dividends and distributions		10,943			6,777			121,108			73,786
Shares redeemed		(90,545	)		(90,384	)		(1,008,280	)		(988,521	)
Net increase		90,068			26,015		$	993,545		$	272,896
Class Z
Shares sold		372,346			2,375,250		$	4,155,412		$	26,160,476
Shares issued in reinvestment of dividends and distributions		24,733			56,077			273,479			613,861
Shares redeemed		(369,959	)		(3,964,619	)		(4,116,353	)		(43,168,723	)
Net increase (decrease)		27,120			(1,533,292	)	$	312,538		$	(16,394,386	)

NOTE F

Risks Involved in Investing in the Fund

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Foreign(Non-U.S.) Risk—Investments in securities ofnon-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be

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particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered bynon-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly

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exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

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NOTE G

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	11,729,904	$	8,976,063
Total taxable distributions paid	$	11,729,904	$	8,976,063

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	249,796
Accumulated capital and other losses		(3,806,814	)(a)
Unrealized appreciation/(depreciation)		11,082,995	(b)
Total accumulated earnings/(deficit)	$	7,525,977	(c)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $3,757,123. During the fiscal year, the Fund utilized $4,206,090 of capital loss carry forwards to offset current year net realized gains. As of October 31, 2019, the cumulative deferred loss on straddles was $49,691.

(b) The differences betweenbook-basis andtax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of swaps, the tax deferral of losses on wash sales, and corporate restructuring.

(c) The differences betweenbook-basis andtax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as eithershort-term or long-term capital losses. As of October 31, 2019, the Fund had a netshort-term capital loss carryforward of $740,497 and a net long-term capital loss carryforward of $3,016,626, which may be carried forward for an indefinite period.

80    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

During the current fiscal year, permanent differences primarily due to contributions from the Adviser resulted in a net increase in distributable earnings and a net decrease in additionalpaid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    81

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.65			$  11.11			$  11.23			$  11.06			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.33			.25			.24†			.26			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.44	)		(.06	)		.27			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.07			(.19	)		.18			.53			.16
Less: Dividends and Distributions
Dividends from net investment income		(.37	)		(.27	)		(.23	)		(.36	)		(.34	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.37	)		(.27	)		(.30	)		(.36	)		(.34	)
Net asset value, end of period		$  11.35			$  10.65			$  11.11			$  11.23			$  11.06
Total Return
Total investment return based on net asset value(d)		10.23	%		(1.75	)%		1.68	%†		4.93	%		1.45	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$221,033			$216,950			$240,386			$245,683			$252,965
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.79	%		.85	%		.88	%
Expenses, before waivers/reimbursements		1.04	%		1.01	%		1.03	%		1.03	%		1.06	%
Net investment income(b)		2.98	%		2.29	%		2.16	%†		2.35	%		2.51	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

82    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class B
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.65			$  11.11			$  11.23			$  11.06			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.25			.17			.15†			.18			.20
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.44	)		(.05	)		.27			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.99			(.27	)		.10			.45			.08
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.19	)		(.16	)		(.28	)		(.26	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.02	)		– 0	–		– 0	–
Total dividends and distributions		(.29	)		(.19	)		(.22	)		(.28	)		(.26	)
Net asset value, end of period		$  11.35			$  10.65			$  11.11			$  11.23			$  11.06
Total Return
Total investment return based on net asset value(d)		9.41	%		(2.48	)%		.92	%†		4.15	%		.72	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$409			$511			$743			$1,106			$1,692
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%		1.52	%		1.54	%		1.60	%		1.60	%
Expenses, before waivers/reimbursements		1.84	%		1.80	%		1.81	%		1.81	%		1.80	%
Net investment income(b)		2.24	%		1.53	%		1.38	%†		1.59	%		1.77	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    83

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.63			$  11.08			$  11.21			$  11.04			$  11.22
Income From Investment Operations
Net investment income(a)(b)		.25			.17			.15†			.18			.20
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.73			(.43	)		(.06	)		.27			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.98			(.26	)		.09			.45			.08
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.19	)		(.16	)		(.28	)		(.26	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.02	)		– 0	–		– 0	–
Total dividends and distributions		(.29	)		(.19	)		(.22	)		(.28	)		(.26	)
Net asset value, end of period		$  11.32			$  10.63			$  11.08			$  11.21			$  11.04
Total Return
Total investment return based on net asset value(d)		9.33	%		(2.40	)%		.83	%†		4.16	%		.73	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10,564			$11,334			$15,676			$41,886			$40,928
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%		1.52	%		1.55	%		1.60	%		1.60	%
Expenses, before waivers/reimbursements		1.79	%		1.76	%		1.78	%		1.78	%		1.78	%
Net investment income(b)		2.24	%		1.54	%		1.38	%†		1.60	%		1.79	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

84    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.65			$  11.11			$  11.24			$  11.06			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.35			.28			.27†			.29			.31
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.75			(.44	)		(.07	)		.28			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.10			(.16	)		.20			.57			.19
Less: Dividends and Distributions
Dividends from net investment income		(.40	)		(.30	)		(.25	)		(.39	)		(.37	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Total dividends and distributions		(.40	)		(.30	)		(.33	)		(.39	)		(.37	)
Net asset value, end of period		$  11.35			$  10.65			$  11.11			$  11.24			$  11.06
Total Return
Total investment return based on net asset value(d)		10.50	%		(1.50	)%		1.84	%†		5.29	%		1.73	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$104,850			$76,406			$67,357			$56,068			$22,705
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.54	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.79	%		.76	%		.78	%		.78	%		.77	%
Net investment income(b)		3.21	%		2.55	%		2.41	%†		2.60	%		2.78	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    85

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.65			$  11.10			$  11.23			$  11.06			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.30			.23			.21†			.23			.26
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.44	)		(.06	)		.28			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.04			(.21	)		.15			.51			.14
Less: Dividends and Distributions
Dividends from net investment income		(.35	)		(.24	)		(.21	)		(.34	)		(.32	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.35	)		(.24	)		(.28	)		(.34	)		(.32	)
Net asset value, end of period		$  11.34			$  10.65			$  11.10			$  11.23			$  11.06
Total Return
Total investment return based on net asset value(d)		9.86	%		(1.90	)%		1.34	%†		4.67	%		1.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$3,298			$2,814			$2,699			$3,023			$2,936
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.02	%		1.02	%		1.04	%		1.10	%		1.10	%
Expenses, before waivers/reimbursements		1.42	%		1.35	%		1.39	%		1.38	%		1.38	%
Net investment income(b)		2.73	%		2.07	%		1.91	%†		2.10	%		2.29	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

86    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.66			$  11.11			$  11.24			$  11.07			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.33			.25			.24†			.26			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.43	)		(.07	)		.27			(.10	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.07			(.18	)		.17			.53			.18
Less: Dividends and Distributions
Dividends from net investment income		(.37	)		(.27	)		(.23	)		(.36	)		(.35	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.37	)		(.27	)		(.30	)		(.36	)		(.35	)
Net asset value, end of period		$  11.36			$  10.66			$  11.11			$  11.24			$  11.07
Total Return
Total investment return based on net asset value(d)		10.22	%		(1.66	)%		1.59	%†		4.93	%		1.57	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$7,444			$7,863			$5,876			$5,706			$3,922
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.79	%		.85	%		.85	%
Expenses, before waivers/reimbursements		1.10	%		1.08	%		1.09	%		1.09	%		1.08	%
Net investment income(b)		2.98	%		2.32	%		2.15	%†		2.34	%		2.53	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    87

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.66			$  11.12			$  11.24			$  11.07			$  11.25
Income From Investment Operations
Net investment income(a)(b)		.36			.28			.27†			.28			.31
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.44	)		(.06	)		.28			(.12	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.10			(.16	)		.21			.56			.19
Less: Dividends and Distributions
Dividends from net investment income		(.40	)		(.30	)		(.25	)		(.39	)		(.37	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Total dividends and distributions		(.40	)		(.30	)		(.33	)		(.39	)		(.37	)
Net asset value, end of period		$  11.36			$  10.66			$  11.12			$  11.24			$  11.07
Total Return
Total investment return based on net asset value(d)		10.50	%		(1.50	)%		1.93	%†		5.20	%		1.73	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$4,107			$2,894			$2,729			$2,613			$511
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.54	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.75	%		.72	%		.75	%		.76	%		.75	%
Net investment income(b)		3.22	%		2.57	%		2.41	%†		2.56	%		2.74	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

88    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.67			$  11.13			$  11.26			$  11.08			$  11.26
Income From Investment Operations
Net investment income(a)(b)		.36			.27			.27†			.28			.32
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.74			(.43	)		(.07	)		.29			(.13	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		1.10			(.16	)		.20			.57			.19
Less: Dividends and Distributions
Dividends from net investment income		(.40	)		(.30	)		(.25	)		(.39	)		(.37	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		(.04	)		– 0	–		– 0	–
Total dividends and distributions		(.40	)		(.30	)		(.33	)		(.39	)		(.37	)
Net asset value, end of period		$  11.37			$  10.67			$  11.13			$  11.26			$  11.08
Total Return
Total investment return based on net asset value(d)		10.48	%		(1.49	)%		1.84	%†		5.28	%		1.72	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$8,059			$7,274			$24,653			$18,134			$4,851
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.54	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.68	%		.64	%		.66	%		.66	%		.71	%
Net investment income(b)		3.22	%		2.48	%		2.42	%		2.52	%		2.91	%
Portfolio turnover rate**		74	%		195	%		209	%		128	%		198	%

See footnote summary on page 90.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    89

FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of fees and expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

† For the year ended October 31, 2017, the amount includes a refund for overbilling of prior years’ custody out of pocket fees as follows:

Net Investment Income Per Share	Net Investment Income Ratio	Total Return
$.002	.02%	.02%

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

90    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

of AB Total Return Bond Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Total Return Bond Portfolio, formerly known as AB Intermediate Bond Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 27, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2019. For foreign shareholders, 86.65% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Michael Canter⁽²⁾, VicePresident Shawn E. Keegan⁽²⁾, Vice President Douglas J. Peebles⁽²⁾, Vice President Janaki Rao⁽²⁾, Vice President Dimitri Silva⁽²⁾, Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller Vincent S. Noto,Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The management of, and investment decisions for, the Fund’s portfolio are made by an Investment Policy Team. The Investment Policy Team relies heavily on the fundamental analysis and research of the Adviser’s large internal research staff. No one person is principally responsible for coordinating the Fund’s investments.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,+ 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,# Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Michael J. Downey,# 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None
Nancy P. Jacklin,# 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,# 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016 and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,# 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee and as Chairman of the Audit Committees of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,# 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department-Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

+ Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

# Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Michael Canter 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Director of US Multi-Sector and Securitized Assets.
Shawn E. Keegan 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Douglas J. Peebles 54	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer of Fixed Income.
Janaki Rao 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Dimitri Silva 37	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at(800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Intermediate Bond Portfolio (the “Fund”) at a meeting held onNovember 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits

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relating to12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1-,3-,5- and10-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients pursuing a similar investment style to the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to anysub-advised funds pursuing a similar investment strategy as the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also discussed these

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matters with their independent fee consultant. The directors also compared the advisory fee rate for the Fund with that for another AB Fund with a similar investment style.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund andsub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore orsub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund andsub-advised fund clients as compared to the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with their independent fee consultant. The directors

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also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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AB TOTAL RETURN BOND PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TRB-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB MUNICIPAL BOND INFLATION STRATEGY

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Municipal Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 16, 2019

This report provides management’s discussion of fund performance for AB Municipal Bond Inflation Strategy for the annual period ended October 31, 2019.

The Fund’s investment objective is to maximize realafter-tax return for investors subject to federal income taxes, without undue risk to principal.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
AB MUNICIPAL BOND INFLATION STRATEGY
Class 1 Shares1		0.84%		4.72%
Class 2 Shares1		0.79%		4.73%
Class A Shares		0.73%		4.58%
Class C Shares		0.25%		3.63%
Advisor Class Shares2		0.86%		4.76%
Bloomberg Barclays1-10 Year TIPS Index		3.00%		6.87%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for thesix- and12-month periods ended October 31, 2019.

All share classes of the Fund underperformed the benchmark for both periods, before sales charges. The Fund invests primarily in municipal bonds and usestax-efficient hedges for inflation protection. Over both periods, the Fund’s lower-than-benchmark interest-rate risk detracted, relative to the benchmark, as rates fell. The Fund’s overweight to municipals contributed astax-exempt bonds rallied more than Treasuries. An overweight to credit also contributed. Yield-curve positioning in the seven- to10-year and over10-year duration municipals detracted. Overweights to the state general obligation bond and miscellaneous revenue sectors contributed. Consumer price index (“CPI”) hedges in the Fund detracted on an absolute basis as inflation expectations fell. Relative to the benchmark, CPI hedges detracted over thesix-month period and were close to neutral over the12-month period.

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The Fund utilized derivatives in the form of interest rate swaps for hedging purposes and credit default swaps for investment purposes, which had no material impact on absolute performance for either period. CPI Swaps were utilized for hedging purposes, which added to absolute performance for the six-month period and had no material impact for the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

Falling interest rates and a flattening of the yield curve were prominent themes throughout the12-month period ended October 31, 2019. The yield for the10-year US Treasury fell almost 1.5% over the period and the US Federal Reserve (“the Fed”) cut interest rates three times in 2019, taking the target for the Federal Funds rate down by 0.75% this year. The newly imposed limit on state and local tax deductions resulted in increased demand for municipals and municipal supply continues to be light. Lipper reported that municipal mutual funds had $75 billion of inflows through October 30, while the Fed reported that the outstanding volume of municipal bonds shrunk by $17 billion through the second quarter of 2019.

Long-maturity and high-yield municipal bonds were the best performers during the12-month period, reflective of investors’ demand for additional income in the recentlow-yield environment. The Fund maintained a slightly defensive interest-rate stance as the historically flat yield curve did not adequately compensate investor risk for taking additional long exposure. Given the fundamental strength of municipalities, the Fund maintained an overweight tomid-grade municipals.

The Fund’s Senior Investment Management Team (the “Team”) continues to focus on realafter-tax return by investing in municipal bonds that generate income exempt from federal income taxes. In seeking to manage volatility and interest-rate risk, the Team focuses on intermediate-term bonds and seeks to provide inflation protection by entering inflation swap agreements or investing in other inflation-protected instruments.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have beenpre-refunded or escrowed to maturity were 4.48% and 0.06%, respectively.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    3

INVESTMENT POLICIES

The Fund seeks realafter-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing principally in high-quality, predominantly investment-grade, municipal securities that pay interest exempt from federal taxation. As a fundamental policy, the Fund will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax for some taxpayers.

The Fund will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more national rating agencies or deemed to be of comparable credit quality by the Adviser. In deciding whether to take direct or indirect exposure, the Fund may invest up to 20% of its total assets in fixed-income securities rated BB or B or the equivalent by one or more national rating agencies (or deemed to be of comparable credit quality by the Adviser), which are not investment grade (“junk bonds”). If the rating of a fixed-income security falls below investment-grade, the Fund will not be obligated to sell the security and may continue to hold it if, in the Adviser’s opinion, the investment is appropriate under the circumstances.

The Fund may invest in fixed-income securities with any maturity and duration.

To provide inflation protection, the Fund will typically enter into inflation swaps. The Fund may use other inflation-indexed instruments. Payments to the Fund pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal income taxation. It is expected that the Fund’s primary use of derivatives will be for the purpose of inflation protection.

The Fund may also invest in forward commitments;zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities; certain types of mortgage-related securities; and derivatives, such as options, futures contracts, forwards and swaps.

The Fund may utilize leverage for investment purposes through the use of tender option bond transactions (“TOBs”). The Adviser will consider the impact of TOBs, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

Recent tax law changes could have a material impact on the value of municipal securities. In addition, Congress has previously considered making changes to the municipal securities provisions of the Internal

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS(continued)

Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk: When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions

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DISCLOSURES AND RISKS(continued)

of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recentmonth-end by visiting www.abfunds.com. For Class 1 shares visit www.bernstein.com, click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance”.

All fees and expenses related to the operation of the Fund have been deducted. Net asset value (“NAV”) returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 3.00% maximumfront-end sales charge for Class A shares and a 1%1-year contingent deferred sales charge for Class C shares. Class 1 and 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    7

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

1/26/2010¹ TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB Municipal Bond Inflation Strategy Class A shares (from 1/26/2010¹ to 10/31/2019) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 1/26/2010.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						1.13%
1 Year		4.72%		4.72%
5 Years		1.63%		1.63%
Since Inception3		2.09%		2.09%
CLASS 2 SHARES2						1.23%
1 Year		4.73%		4.73%
5 Years		1.71%		1.71%
Since Inception3		2.18%		2.18%
CLASS A SHARES						0.93%
1 Year		4.58%		1.44%
5 Years		1.47%		0.86%
Since Inception3		1.92%		1.60%
CLASS C SHARES						0.21%
1 Year		3.63%		2.63%
5 Years		0.69%		0.69%
Since Inception3		1.17%		1.17%
ADVISOR CLASS SHARES4						1.20%
1 Year		4.76%		4.76%
5 Years		1.73%		1.73%
Since Inception3		2.19%		2.19%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.67%, 0.57%, 0.86%, 1.61% and 0.61% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest to 0.60%, 0.50%, 0.75%, 1.50% and 0.50% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2020 and may be extended by the Adviser for additionalone-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the30-day period ended October 31, 2019.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

3 Inception date: 1/26/2010.

4 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		3.27%
5 Years		1.56%
Since Inception2		2.09%
CLASS 2 SHARES1
1 Year		3.27%
5 Years		1.66%
Since Inception2		2.18%
CLASS A SHARES
1 Year		0.08%
5 Years		0.80%
Since Inception2		1.59%
CLASS C SHARES
1 Year		1.20%
5 Years		0.64%
Since Inception2		1.17%
ADVISOR CLASS SHARES3
1 Year		3.31%
5 Years		1.67%
Since Inception2		2.19%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Inception date: 1/26/2010.

3 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution(12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    11

EXPENSE EXAMPLE(continued)

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,007.30	$	3.79		0.75	%
Hypothetical**	$	1,000	$	1,021.42	$	3.82		0.75	%
Class C
Actual	$	1,000	$	1,002.50	$	7.57		1.50	%
Hypothetical**	$	1,000	$	1,017.64	$	7.63		1.50	%
Advisor Class
Actual	$	1,000	$	1,008.60	$	2.53		0.50	%
Hypothetical**	$	1,000	$	1,022.68	$	2.55		0.50	%
Class 1
Actual	$	1,000	$	1,008.40	$	3.04		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%
Class 2
Actual	$	1,000	$	1,007.90	$	2.53		0.50	%
Hypothetical**	$	1,000	$	1,022.68	$	2.55		0.50	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,004.7

1 All data are as of October 31, 2019. The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment grade by the Adviser. If applicable, Not Applicable (N/A) includes non credit worthy investments; such as, equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    13

PORTFOLIO OF INVESTMENTS

October 31, 2019

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 101.9%
Long-Term Municipal Bonds – 101.9%
Alabama – 2.1%
Alabama Special Care Facilities Financing Authority-Birmingham AL (Children’s Hospital of Alabama Obligated Group (The)) Series 2015 5.00%, 6/01/28	$	3,905	$	4,591,460
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016A 5.00%, 2/01/25		2,110		2,421,900
Special Care Facilities Financing Authority of the City of Pell City Alabama (Noland Obligated Group) Series 2016A 5.00%, 12/01/31		11,235		11,978,532
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019A 4.50%, 5/01/32(a)		1,810		1,993,516
				20,985,408
American Samoa – 0.3%
American Samoa Economic Development Authority (Territory of American Samoa) 6.50%, 9/01/28(a)		295		329,217
7.125%, 9/01/38(a)		820		921,032
Series 2015A 6.625%, 9/01/35		1,335		1,428,370
				2,678,619
Arizona – 2.4%
Arizona State University (Arizona State University COP) Series 2013A 5.00%,9/01/21-9/01/22		7,260		7,875,984
City of Phoenix Civic Improvement Corp. Series 2011 5.00%, 7/01/26		3,330		3,535,361
County of Pima AZ Sewer System Revenue AGM Series 2010 5.00%, 7/01/21(Pre-refunded/ETM)		630		645,473
5.00%, 7/01/21		1,135		1,163,943

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Salt River Project Agricultural Improvement & Power District Series 2011A 5.00%, 12/01/24	$	3,140	$	3,387,934
State of Arizona Lottery Revenue 5.00%, 7/01/28		5,000		6,421,850
Tempe Industrial Development Authority (Mirabella at ASU, Inc.) Series 2017B 4.00%, 10/01/23(a)		1,200		1,211,616
				24,242,161
California – 1.2%
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) 7.50%, 12/01/40(a)		250		260,145
Golden State Tobacco Securitization Corp. Series 2018A 3.50%, 6/01/36		1,775		1,811,689
State of California Series 2011 5.00%, 10/01/20		5,000		5,176,650
Series 2014 5.00%,8/01/22-5/01/25		4,250		4,881,031
				12,129,515
Colorado – 5.4%
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/29(a)		1,510		1,630,513
City & County of Denver CO Airport System Revenue (Denver Intl Airport) Series 2010A 5.00%, 11/15/23		375		389,906
Series 2012A 5.00%,11/15/24-11/15/25(b)		13,395		14,798,528
Series 2018A 5.00%,12/01/28-12/01/29		16,555		20,681,778
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019A 5.00%,8/01/32-8/01/33		2,860		3,485,931
Denver City & County School District No. 1 Series 2014B 5.00%, 12/01/23(b)		4,730		5,446,642
Denver Urban Renewal Authority (Stapleton Development Corp.) Series 2013A 5.00%,12/01/19-12/01/22		5,655		5,849,277

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Plaza Metropolitan District No. 1 Series 2013 5.00%, 12/01/20(a)	$	1,310	$	1,352,706
Regional Transportation District (Denver Transit Partners LLC) Series 2010 5.25%, 7/15/24		440		448,972
				54,084,253
Connecticut – 3.0%
City of New Haven CT Series 2018A 5.50%, 8/01/35		1,920		2,310,048
State of Connecticut Series 2013A 5.00%, 10/15/24		5,035		5,719,206
Series 2014A 5.00%, 3/01/28		2,230		2,540,527
Series 2014F 5.00%, 11/15/26		1,275		1,485,171
Series 2015B 5.00%,6/15/25-6/15/28		7,170		8,445,330
Series 2016A 5.00%, 3/15/32		2,160		2,543,076
Series 2018B 5.00%, 4/15/28		1,440		1,798,733
State of Connecticut Clean Water Fund – State Revolving Fund Series 2013A 5.00%, 3/01/24		4,360		4,904,826
				29,746,917
District of Columbia – 1.0%
Metropolitan Washington Airports Authority Series 2018A 5.00%,10/01/25-10/01/26		8,565		10,325,325
Florida – 7.3%
Citizens Property Insurance Corp. Series 2012A 5.00%, 6/01/22		7,315		8,009,559
City of Jacksonville FL (City of Jacksonville FL Sales Tax) Series 2011 5.00%, 10/01/20		1,720		1,777,586
City of Jacksonville FL (City of Jacksonville FL Transit Sales Tax) Series 2012A 5.00%,10/01/23-10/01/26		10,190		11,233,703

16    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 8/15/25	$	4,500	$	5,377,455
City of Tampa FL Water & Wastewater System Revenue Series 2011 5.00%, 10/01/26		1,565		1,676,005
County of Miami-Dade FL (County of Miami-Dade FLNon-Ad Valorem) Series 2015A 5.00%,6/01/23-6/01/27		18,500		21,480,546
County of Miami-Dade FL (County of Miami-Dade FL Spl Tax) Series 2012A 5.00%, 10/01/23		1,500		1,656,960
Florida Department of Environmental Protection Series 2011B 5.00%, 7/01/20		3,775		3,868,960
Florida Development Finance Corp. (Virgin Trains USA Florida LLC) 6.375%, 1/01/49(a)		2,980		2,816,100
Florida Development Finance Corp. (Waste Pro USA, Inc.) 5.00%, 5/01/29(a)		455		501,214
Florida Municipal Power Agency Series 2011B 5.00%, 10/01/23		2,890		3,084,786
Series 2015B 5.00%, 10/01/23		1,500		1,714,080
Greater Orlando Aviation Authority Series 2017A 5.00%, 10/01/33(b)		4,000		4,814,840
JEA Water & Sewer System Revenue NATL Series 2006B 2.791% (CPI + 0.98%), 10/01/20(c)		2,695		2,714,727
Martin County Industrial Development Authority (Indiantown Cogeneration LP) Series 2013 4.20%, 12/15/25(a)		1,900		1,924,719

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Mid-Bay Bridge Authority Series 2015A 5.00%, 10/01/28	$	1,000	$	1,161,540
				73,812,780
Georgia – 3.0%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%,7/01/34-7/01/35		9,555		11,232,994
Cherokee County Board of Education Series 2014B 5.00%, 8/01/20		1,000		1,028,480
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018A 4.00%, 4/01/48		9,370		10,129,438
Series 2018C 4.00%, 8/01/48		6,850		7,432,319
				29,823,231
Guam – 0.5%
Territory of Guam 5.00%, 11/15/31		165		193,089
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015D 5.00%,11/15/23-11/15/31		3,970		4,485,513
				4,678,602
Illinois – 7.7%
Chicago Board of Education Series 2010 6.319%, 11/01/29		2,050		2,289,666
Series 2018A 5.00%, 12/01/27		1,200		1,393,200
Series 2019A 5.00%,12/01/29-12/01/30		525		620,795
Series 2019B 5.00%,12/01/30-12/01/33		500		586,920
Chicago Housing Authority Series 2018A 5.00%,1/01/34-1/01/38		8,760		10,410,194
Chicago O’Hare International Airport Series 2015B 5.00%, 1/01/29		5,000		5,823,250
Series 2016C 5.00%, 1/01/33		5,000		5,887,350
Series 2017B 5.00%, 1/01/35		1,475		1,761,784

18    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Chicago O’Hare International Airport (Chicago O’Hare International Airport Customer Facility Charge) Series 2013 5.25%, 1/01/23	$	2,500	$	2,784,375
5.50%, 1/01/25		2,250		2,538,833
Illinois Finance Authority (Ascension Health Credit Group) Series 2016C 5.00%,2/15/20-2/15/24		6,355		6,651,901
Sangamon County Water Reclamation District Series 2011A 5.00%, 1/01/21(Pre-refunded/ETM)		2,170		2,262,746
State of Illinois Series 2013 5.00%, 7/01/23		1,670		1,827,097
Series 2013A 5.00%, 4/01/20		4,080		4,129,776
Series 2014 5.00%, 5/01/30		4,180		4,561,258
Series 2017B 5.00%, 12/01/24		5,050		5,645,849
Series 2017D 5.00%,11/01/21-11/01/24		12,420		13,598,257
Series 2018A 5.00%, 10/01/23		2,785		3,063,723
Series 2018B 5.00%, 10/01/23		1,730		1,903,138
				77,740,112
Indiana – 0.7%
Indiana Finance Authority (RES Polyflow Indiana LLC) 7.00%, 3/01/39(a)		2,380		2,400,730
Indiana Municipal Power Agency Series 2011A 5.00%, 1/01/20		2,860		2,877,074
5.00%, 1/01/23(Pre-refunded/ETM)		2,105		2,238,794
				7,516,598
Iowa – 0.2%
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2013B 5.25%, 12/01/50		2,250		2,436,368
Kentucky – 2.8%
Kentucky Municipal Power Agency NATL Series 2015A 5.00%,9/01/22-9/01/23		4,875		5,393,633

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Public Energy Authority (Morgan Stanley) Series 2018C 2.85% (CPI + 1.05%), 12/01/49(c)	$	20,000	$	20,697,600
Kentucky Turnpike Authority Series 2012A 5.00%, 7/01/25(Pre-refunded/ETM)		2,275		2,502,363
				28,593,596
Louisiana – 4.3%
Jefferson Sales Tax District AGM Series 2017B 5.00%, 12/01/34		1,800		2,194,704
State of Louisiana Series 2017B 5.00%,10/01/31-10/01/32		25,210		31,058,502
State of Louisiana Gasoline & Fuels Tax Revenue Series 2012A 5.00%, 5/01/27		6,225		6,787,989
5.00%, 5/01/27(Pre-refunded/ETM)		2,860		3,128,211
				43,169,406
Maryland – 0.7%
State of Maryland Series 2017B 5.00%, 8/01/24(b)		5,790		6,801,223
Massachusetts – 3.5%
Commonwealth of Massachusetts AGM Series 2006C 2.63% (CPI + 0.88%), 11/01/19(c)		9,575		9,575,000
Commonwealth of Massachusetts (Commonwealth of Massachusetts Fuel Tax) AGM Series 2005A 3.686% (CPI + 1.67%), 6/01/20(c)		3,450		3,484,707
Massachusetts Bay Transportation Authority (Massachusetts Bay Transportation Authority Sales Tax) Series 2004B 5.25%, 7/01/21		3,330		3,554,708
Series 2004C 1.744% (CPI + 0.79%), 7/01/20(c)		2,650		2,664,442
Massachusetts Clean Water Trust (The) (Massachusetts Water Pollution Abatement Trust (The) SRF) Series 2006 3.88% (CPI + 0.99%), 8/01/22(c)		3,240		3,300,102
3.90% (CPI + 0.99%), 8/01/23(c)		2,275		2,323,071

20    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Massachusetts Development Finance Agency (Broad Institute, Inc. (The)) Series 2017 5.00%, 4/01/28	$	1,655	$	2,091,821
Massachusetts School Building Authority (Massachusetts School Building Authority Sales Tax) Series 2012A 5.00%, 8/15/23		2,475		2,734,479
Metropolitan Boston Transit Parking Corp. Series 2011 5.00%,7/01/22-7/01/25		5,025		5,337,115
				35,065,445
Michigan – 3.9%
City of Detroit MI 5.00%,4/01/35-4/01/36		1,055		1,176,332
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012A 5.00%, 7/01/21		3,750		3,976,200
Michigan Finance Authority (City of Detroit MI) Series 2016C 5.00%,4/01/26-4/01/27		2,735		3,263,894
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) AGM Series 2014D2 5.00%, 7/01/24		10,545		12,314,662
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 5.00%, 11/15/31		1,785		2,144,802
Michigan Strategic Fund (Michigan Strategic Fund – I 75 Improvement Project) Series 2018 5.00%,12/31/28-6/30/29		9,090		11,272,365
University of Michigan Series 2017A 5.00%, 4/01/24		4,000		4,658,160
				38,806,415

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Minnesota – 0.0%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL 2.65%, 8/01/28(d)	$	50	$	50,000
Mississippi – 0.2%
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016A 5.00%, 9/01/36		1,500		1,721,085
Missouri – 0.2%
Howard Bend Levee District XLCA 5.75%,3/01/25-3/01/27		255		303,003
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2016A 5.00%, 8/15/36		1,675		1,852,935
				2,155,938
Montana – 0.4%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%,2/15/31-2/15/33		3,275		3,871,895
Nebraska – 1.7%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2018 5.00%, 3/01/50		15,000		16,710,000
Nevada – 0.7%
County of Clark Department of Aviation (Las Vegas-McCarran International Airport) Series 2010D 5.00%,7/01/21-7/01/22		775		779,846
Las Vegas Valley Water District Series 2015A 5.00%, 6/01/20		1,500		1,533,255
Series 2015B 5.00%, 12/01/20		4,250		4,425,695
				6,738,796

22    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
New Jersey – 7.5%
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2014P 5.00%, 6/15/29	$	1,150	$	1,284,124
Series 2017B 5.00%, 11/01/20		1,000		1,034,420
New Jersey Economic Development Authority (Port Newark Container Terminal LLC) Series 2017 5.00%,10/01/26-10/01/27		3,810		4,552,176
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 6/15/29		4,390		5,148,724
Series 2018A 5.00%,6/15/28-6/15/29		21,670		25,436,118
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2012A 5.00%, 6/15/21		10,000		10,557,500
Series 2014C 5.25%, 6/15/32		2,960		3,364,010
New Jersey Turnpike Authority Series 2013A 5.00%, 1/01/23		200		223,382
5.00%, 1/01/23(Pre-refunded/ETM)		1,600		1,791,552
Series 2014A 5.00%, 1/01/28		4,785		5,536,341
Series 2014C 5.00%, 1/01/23		1,590		1,775,887
Series 2017A 5.00%, 1/01/33		7,300		8,829,788
Tobacco Settlement Financing Corp. Series 2018A 5.00%, 6/01/30		4,750		5,794,857
				75,328,879
New Mexico – 0.2%
City of Farmington NM (Southern California Edison Co.) 1.875%, 4/01/29		2,455		2,456,768

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
New York – 11.7%
City of New York NY Series 2011A 5.00%, 8/01/23	$	4,250	$	4,533,602
Series 2014J 5.00%, 8/01/21		6,100		6,502,600
Metropolitan Transportation Authority Series 2012C 5.00%, 11/15/24(Pre-refunded/ETM)		4,065		4,553,044
5.00%, 11/15/25(Pre-refunded/ETM)		5,000		5,600,300
Series 2012F 5.00%, 11/15/26		3,635		4,010,714
Series 2013A 5.00%, 11/15/26(Pre-refunded/ETM)		2,300		2,620,068
Series 2013E 5.00%, 11/15/25(Pre-refunded/ETM)		8,510		9,858,750
New York City Municipal Water Finance Authority Series 2011HH 5.00%, 6/15/26		3,875		4,110,174
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2012B 5.00%, 11/01/26(b)		6,830		7,583,486
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2011C 5.00%, 3/15/25		3,000		3,158,130
Series 2012A 5.00%, 12/15/22(b)		14,610		16,333,249
Series 2014A 5.00%, 2/15/28		6,565		7,576,995
New York State Environmental Facilities Corp. (New York City Municipal Water Finance Authority) Series 2011 5.00%, 6/15/25		3,000		3,186,540
New York State Thruway Authority (New York State Thruway Authority Ded Tax) Series 2012A 5.00%, 4/01/21		17,025		17,935,497
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 5.00%,1/01/27-1/01/29		9,255		11,201,711

24    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Triborough Bridge & Tunnel Authority Series 2012B 5.00%, 11/15/19	$	4,360	$	4,365,276
Series 2013B 5.00%, 11/15/20		4,100		4,267,731
				117,397,867
North Carolina – 1.5%
North Carolina Eastern Municipal Power Agency Series 2012B 5.00%, 1/01/21(Pre-refunded/ETM)		6,700		6,994,264
State of North Carolina (State of North Carolina Fed Hwy Grant) Series 2015 5.00%, 3/01/26		6,710		7,949,538
				14,943,802
North Dakota – 0.1%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2018 5.375%, 9/15/38(a)		1,000		969,330
Ohio – 3.2%
American Municipal Power, Inc. Series 2016A 5.00%, 2/15/36		5,000		5,824,250
City of Chillicothe/OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/37		3,385		4,055,264
City of Cleveland OH Airport System Revenue AGM Series 2016B 5.00%,1/01/23-1/01/24		2,585		2,915,977
City of Cleveland OH Income Tax Revenue Series2017B-1 5.00%,10/01/27-10/01/30		7,585		9,494,573
Series2017B-2 5.00%, 10/01/29		1,485		1,860,750
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 2/15/37		5,600		6,383,048
Ohio Air Quality Development Authority (FirstEnergy Nuclear Generation LLC) Series 2009A 4.375%, 6/01/33		235		252,037

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Ohio Water Development Authority Water Pollution Control Loan Fund (FirstEnergy Nuclear Generation LLC) Series 2016A 4.375%, 6/01/33	$	420	$	450,450
Series 2016B 4.375%, 6/01/33		825		884,812
				32,121,161
Oregon – 0.8%
Deschutes County Hospital Facilities Authority (St. Charles Health System, Inc.) Series 2016A 4.00%, 1/01/33		1,000		1,086,920
Tri-County Metropolitan Transportation District of Oregon Series 2011A 5.00%, 10/01/25(Pre-refunded/ETM)		4,605		4,936,836
Series 2018A 5.00%, 10/01/29		1,910		2,384,826
				8,408,582
Pennsylvania – 5.3%
City of Philadelphia PA Series 2017 5.00%, 8/01/28		12,990		16,117,213
City of Philadelphia PA Water & Wastewater Revenue Series 2017A 5.00%,10/01/32-10/01/33		2,135		2,612,334
Montgomery County Higher Education & Health Authority (Thomas Jefferson University Obligated Group) Series 2018 5.00%, 9/01/34		1,500		1,814,865
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.125%, 7/01/25		2,060		2,219,423
Pennsylvania Turnpike Commission Series 2017B 5.00%,6/01/34-6/01/36		7,580		9,041,414
Series 2017S 5.00%,12/01/28-12/01/29		3,005		3,714,360
Series 2019 5.00%, 12/01/23		4,250		4,868,332

26    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
School District of Philadelphia (The) Series 2011E 5.25%, 9/01/22	$	1,800	$	1,859,634
Series 2016F 5.00%, 9/01/34		5,000		5,875,050
State Public School Building Authority Series 2012 5.00%, 4/01/23(Pre-refunded/ETM)		2,400		2,614,632
5.00%, 4/01/26(Pre-refunded/ETM)		2,750		2,995,933
				53,733,190
Puerto Rico – 0.6%
Puerto Rico Electric Power Authority AGM Series 2007V 5.25%, 7/01/31		970		1,084,906
NATL Series 2007V 5.25%,7/01/29-7/01/35		320		342,311
Puerto Rico Highway & Transportation Authority AGC Series 2005L 5.25%, 7/01/41		790		879,942
AGC Series 2007N 5.25%,7/01/34-7/01/36		2,105		2,359,506
AGM Series 2007C 5.25%, 7/01/36		100		111,975
NATL Series 2007N 5.25%, 7/01/32		205		218,721
Puerto Rico Public Buildings Authority (Commonwealth of Puerto Rico) NATL Series 2007 6.00%, 7/01/25		100		110,027
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018A Zero Coupon, 7/01/24		1,144		1,002,453
				6,109,841
South Carolina – 1.3%
Renewable Water Resources 5.00%, 1/01/24		2,570		2,782,001
South Carolina Public Service Authority Series 2016A 5.00%,12/01/34-12/01/36		2,535		2,979,689
Series 2016B 5.00%, 12/01/37		5,040		5,956,625

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Series 2016C 5.00%, 12/01/35	$	930	$	1,105,138
				12,823,453
Tennessee – 0.4%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016A 5.00%, 12/01/35(a)		1,410		1,455,712
Metropolitan Government of Nashville & Davidson County TN Series 2012 5.00%, 7/01/23		1,930		2,122,691
5.00%, 7/01/23(Pre-refunded/ETM)		455		500,473
				4,078,876
Texas – 6.6%
Birdville Independent School District Series 2015B 5.00%, 2/15/22		3,825		4,156,015
Central Texas Regional Mobility Authority Series 2015B 5.00%, 1/01/45		2,085		2,132,038
City of Corpus Christi TX Utility System Revenue Series 2012 5.00%, 7/15/21		5,675		6,034,171
City of Garland TX Series 2010 5.00%, 2/15/26		500		505,225
City of Houston TX Airport System Revenue (United Airlines, Inc.) Series 2014 5.00%, 7/01/29		2,150		2,401,722
City of Houston TX Combined Utility System Revenue Series 2011D 5.00%, 11/15/27(Pre-refunded/ETM)		2,735		2,944,583
Series 2014C 5.00%, 5/15/24		1,100		1,280,422
Conroe Independent School District Series 2011 5.00%,2/15/24-2/15/26		4,955		5,009,010
5.00%, 2/15/24(Pre-refunded/ETM)		255		257,670
5.00%, 2/15/26(Pre-refunded/ETM)		1,030		1,040,784

28    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Harris County-Houston Sports Authority Series 2014A 5.00%, 11/15/21	$	4,220	$	4,526,836
New Hope Cultural Education Facilities Finance Corp. (Westminster Manor) Series 2016 5.00%, 11/01/31		1,000		1,129,290
North Texas Tollway Authority Series 2011D 5.25%, 9/01/26(Pre-refunded/ETM)		3,625		3,887,812
North Texas Tollway Authority (North Texas Tollway System) Series 2017A 5.00%, 1/01/38		3,000		3,304,890
San Antonio Independent School District/TX Series 2011 5.00%, 8/15/26		1,710		1,793,294
Spring Branch Independent School District Series 2014B 5.00%, 2/01/21		3,485		3,649,875
Tarrant County Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.) Series 2015I 5.25%, 11/15/35(e)(f)(g)		900		630,000
Tarrant County Cultural Education Facilities Finance Corp. (Buckner Senior Living, Inc.) Series2017B-3 3.875%, 11/15/22		750		750,428
Tarrant County Cultural Education Facilities Finance Corp. (CHRISTUS Health Obligated Group) Series 2018A 5.00%,7/01/30-7/01/31		13,405		16,659,332
Texas Transportation Commission State Highway Fund Series 2016A 5.00%, 10/01/25		2,865		3,461,894
University of Texas System (The) Series 2010A 5.00%, 8/15/22(Pre-refunded/ETM)		1,070		1,081,663
				66,636,954

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Virginia – 1.0%
Fairfax County Economic Development Authority Series 2011 5.00%, 4/01/25(Pre-refunded/ETM)	$	2,000	$	2,031,740
5.00%, 4/01/26(Pre-refunded/ETM)		4,000		4,063,480
Fairfax County Economic Development Authority (County of Fairfax VA Lease) 5.00%,8/01/22-8/01/34(h)		3,040		3,772,317
				9,867,537
Washington – 5.0%
Central Puget Sound Regional Transit Authority Series 2012P 5.00%,2/01/23-2/01/25		7,815		8,481,975
Chelan County Public Utility District No. 1 Series 2011B 5.50%, 7/01/25		3,305		3,523,427
City of Seattle WA Water System Revenue Series 2017 5.00%, 8/01/23		4,020		4,582,880
City of Tacoma WA Electric System Revenue Series 2013A 5.00%, 1/01/20(Pre-refunded/ETM)		1,280		1,287,667
5.00%, 1/01/20		1,220		1,227,344
Port of Seattle WA 5.00%,4/01/33-4/01/34		3,000		3,714,020
Series 2013 5.00%, 7/01/24		4,820		5,423,223
State of Washington Series 20092010B 5.00%, 1/01/22		710		714,367
Series 2015R 5.00%, 7/01/26		13,325		15,767,872
Series 2017D 5.00%, 2/01/21		4,985		5,222,137
				49,944,912
West Virginia – 1.9%
State of West Virginia Series 2018B 5.00%, 12/01/30		14,815		18,749,420
Wisconsin – 1.6%
Wisconsin Department of Transportation Series 20131 5.00%,7/01/23-7/01/24		9,520		10,814,527

30    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 7/01/24(Pre-refunded/ETM)	$	2,480	$	2,813,411
Wisconsin Public Finance Authority (Maryland Proton Treatment Center LLC) Series2018A-1 6.25%, 1/01/38(a)		2,550		2,687,546
				16,315,484
Total Municipal Obligations (cost $972,567,042)				1,023,769,744
GOVERNMENTS – TREASURIES – 2.0%
United States – 2.0%
U.S. Treasury Notes 2.50%, 5/31/20(b)		15,000		15,077,344
2.625%, 2/15/29(b)		5,000		5,406,250
Total Governments – Treasuries (cost $19,991,002)				20,483,594
	Shares
SHORT-TERM INVESTMENTS – 0.4%
Investment Companies – 0.4%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(i)(j)(k) (cost $3,713,969)		3,713,969		3,713,969
Total Investments – 104.3% (cost $996,272,013)				1,047,967,307
Other assets less liabilities – (4.3)%				(43,230,749	)
Net Assets – 100.0%			$	1,004,736,558

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
USD	38,420		6/17/24	1.760%	CPI#	Maturity	$	(300,169	)
USD	4,970		8/09/24	1.690%	CPI#	Maturity		(24,807	)
USD	17,840		1/15/25	1.671%	CPI#	Maturity		(45,806	)
USD	12,000		8/29/29	1.748%	CPI#	Maturity		33,482
							$	(337,300	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS(continued)

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund			Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
USD	45,150		6/17/21		3 Month LIBOR		1.907	%	Quarterly/Semi-Annual	$	409,837
USD	16,360		8/09/22		3 Month LIBOR		1.486	%	Quarterly/Semi-Annual		(43,444	)
USD	32,000		9/10/24		3 Month LIBOR		1.341	%	Quarterly/Semi-Annual		(263,139	)
USD	11,180		1/15/25		3 Month LIBOR		1.566	%	Quarterly/Semi-Annual		37,458
USD	8,235		10/09/29		3 Month LIBOR		1.470	%	Quarterly/Semi-Annual		(102,136	)
USD	8,235		10/09/29		3 Month LIBOR		1.473	%	Quarterly/Semi-Annual		(99,824	)
										$	(61,248	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	598	$	(50,950	)	$	(77,269	)	$	26,319
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	69		(5,879	)		(6,911	)		1,032
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,216		(103,603	)		(151,366	)		47,763
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	708		(60,322	)		(69,811	)		9,489
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	471		(40,089	)		(47,666	)		7,577
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	40		(3,408	)		(5,012	)		1,604
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	38		(3,238	)		(3,841	)		603
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	231		(19,681	)		(29,723	)		10,042
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	614		(52,313	)		(58,764	)		6,451
												$	(339,483	)	$	(450,363	)	$	110,880

* Termination date

32    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
Bank of America, NA		USD	25,000		9/02/20		1.548	%	CPI#	Maturity	$	248,412
Bank of America, NA		USD	25,000		2/02/32		2.403	%	CPI#	Maturity		(2,223,765	)
Barclays Bank PLC		USD	4,000		6/15/20		2.480	%	CPI#	Maturity		(353,722	)
Barclays Bank PLC		USD	35,000		7/02/20		2.256	%	CPI#	Maturity		(1,872,789	)
Barclays Bank PLC		USD	1,500		8/04/20		2.308	%	CPI#	Maturity		(97,166	)
Barclays Bank PLC		USD	25,256		9/20/20		2.263	%	CPI#	Maturity		(335,208	)
Barclays Bank PLC		USD	24,320		10/15/20		2.208	%	CPI#	Maturity		(290,196	)
Barclays Bank PLC		USD	12,934		10/15/20		2.210	%	CPI#	Maturity		(154,986	)
Barclays Bank PLC		USD	2,000		11/10/20		2.500	%	CPI#	Maturity		(171,610	)
Barclays Bank PLC		USD	1,000		5/04/21		2.845	%	CPI#	Maturity		(140,818	)
Barclays Bank PLC		USD	3,000		5/12/21		2.815	%	CPI#	Maturity		(416,183	)
Barclays Bank PLC		USD	14,000		4/03/22		2.663	%	CPI#	Maturity		(1,809,013	)
Barclays Bank PLC		USD	16,700		10/05/22		2.765	%	CPI#	Maturity		(2,297,267	)
Barclays Bank PLC		USD	25,000		8/07/24		2.573	%	CPI#	Maturity		(2,940,979	)
Barclays Bank PLC		USD	19,000		5/05/25		2.125	%	CPI#	Maturity		(773,025	)
Barclays Bank PLC		USD	5,400		3/06/27		2.695	%	CPI#	Maturity		(1,047,149	)
Barclays Bank PLC		USD	20,000		6/06/32		2.145	%	CPI#	Maturity		(895,235	)
Barclays Bank PLC		USD	14,000		9/01/32		2.128	%	CPI#	Maturity		(550,722	)
Barclays Bank PLC		USD	22,000		8/29/33		2.368	%	CPI#	Maturity		(1,961,666	)
Citibank, NA		USD	17,690		10/17/20		2.220	%	CPI#	Maturity		(214,269	)
Citibank, NA		USD	15,600		12/14/20		1.548	%	CPI#	Maturity		247,422
Citibank, NA		USD	35,000		7/03/21		2.283	%	CPI#	Maturity		(672,483	)
Citibank, NA		USD	9,000		6/29/22		2.398	%	CPI#	Maturity		(915,460	)
Citibank, NA		USD	5,400		7/19/22		2.400	%	CPI#	Maturity		(539,575	)
Citibank, NA		USD	4,000		8/10/22		2.550	%	CPI#	Maturity		(462,029	)
Citibank, NA		USD	15,500		12/07/22		2.748	%	CPI#	Maturity		(2,215,102	)
Citibank, NA		USD	47,000		5/24/23		2.533	%	CPI#	Maturity		(5,428,414	)
Citibank, NA		USD	30,000		10/29/23		2.524	%	CPI#	Maturity		(3,300,681	)
Citibank, NA		USD	30,000		9/19/24		2.070	%	CPI#	Maturity		(586,423	)
Citibank, NA		USD	25,000		7/03/25		2.351	%	CPI#	Maturity		(1,228,114	)
Citibank, NA		USD	15,800		2/08/28		2.940	%	CPI#	Maturity		(3,765,026	)
Citibank, NA		USD	12,000		11/05/33		2.273	%	CPI#	Maturity		(858,691	)
Deutsche Bank AG		USD	11,000		6/20/21		2.655	%	CPI#	Maturity		(1,376,599	)
Deutsche Bank AG		USD	9,800		9/07/21		2.400	%	CPI#	Maturity		(941,000	)
Deutsche Bank AG		USD	25,000		9/02/25		1.880	%	CPI#	Maturity		(469,387	)
JPMorgan Chase Bank, NA		USD	1,000		7/29/20		2.305	%	CPI#	Maturity		(64,867	)
JPMorgan Chase Bank, NA		USD	22,064		8/30/20		2.210	%	CPI#	Maturity		(275,791	)
JPMorgan Chase Bank, NA		USD	19,000		8/17/22		2.523	%	CPI#	Maturity		(2,117,093	)
JPMorgan Chase Bank, NA		USD	26,550		7/15/24		2.165	%	CPI#	Maturity		(548,400	)
JPMorgan Chase Bank, NA		USD	1,400		6/30/26		2.890	%	CPI#	Maturity		(331,110	)
JPMorgan Chase Bank, NA		USD	3,300		7/21/26		2.935	%	CPI#	Maturity		(817,336	)
JPMorgan Chase Bank, NA		USD	2,400		10/03/26		2.485	%	CPI#	Maturity		(372,961	)

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS(continued)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA		USD	5,400		11/14/26		2.488	%	CPI#	Maturity	$	(849,294	)
JPMorgan Chase Bank, NA		USD	4,850		12/23/26		2.484	%	CPI#	Maturity		(749,642	)
JPMorgan Chase Bank, NA		USD	13,000		3/01/27		2.279	%	CPI#	Maturity		(698,695	)
JPMorgan Chase Bank, NA		USD	21,350		2/20/28		2.899	%	CPI#	Maturity		(4,896,210	)
JPMorgan Chase Bank, NA		USD	12,000		3/26/28		2.880	%	CPI#	Maturity		(2,689,757	)
JPMorgan Chase Bank, NA		USD	10,000		7/03/28		2.356	%	CPI#	Maturity		(638,300	)
JPMorgan Chase Bank, NA		USD	25,000		11/05/28		2.234	%	CPI#	Maturity		(1,256,341	)
JPMorgan Chase Bank, NA		USD	18,000		4/17/30		2.378	%	CPI#	Maturity		(1,374,118	)
JPMorgan Chase Bank, NA		USD	24,000		11/17/32		2.183	%	CPI#	Maturity		(1,225,246	)
Morgan Stanley Capital Services LLC		USD	2,000		10/14/20		2.370	%	CPI#	Maturity		(139,738	)
Morgan Stanley Capital Services LLC		USD	13,000		5/23/21		2.680	%	CPI#	Maturity		(1,612,071	)
Morgan Stanley Capital Services LLC		USD	10,000		4/16/23		2.690	%	CPI#	Maturity		(1,330,135	)
Morgan Stanley Capital Services LLC		USD	5,000		8/15/26		2.885	%	CPI#	Maturity		(1,183,518	)
											$	(63,979,541	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

INTEREST RATE SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Unrealized Appreciation/ (Depreciation)

Citibank, NA

USD

11,075

10/09/29

1.125

%

SIFMA*

Quarterly

$

70,830

Citibank, NA

USD

11,075

10/09/29

1.120

%

SIFMA*

Quarterly

76,539

$

147,369

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $20,454,097 or 2.0% of net assets.

34    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

(b) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(d) An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of October 31, 2019 and the aggregate market value of this security amounted to $50,000 or 0.01% of net assets.

(e) Defaulted.

(f) Non-income producing security.

(g) Illiquid security.

(h) When-Issued or delayed delivery security.

(i) Affiliated investments.

(j) The rate shown represents the7-day yield as of period end.

(k) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at(800) 227-4618.

As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have beenpre-refunded or escrowed to maturity are 4.5% and 0.1%, respectively.

Glossary:

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

BMA – Bond Market Association

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rates

NATL – National Interstate Corporation

SRF – State Revolving Fund

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    35

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $992,558,044)	$	1,044,253,338
Affiliated issuers (cost $3,713,969)		3,713,969
Cash		36,369
Cash collateral due from broker		10,413,852
Interest receivable		13,274,761
Receivable for capital stock sold		1,316,431
Receivable for investment securities sold		805,000
Unrealized appreciation on inflation swaps		495,834
Receivable for variation margin on centrally cleared swaps		369,648
Unrealized appreciation on interest rate swaps		147,369
Affiliated dividends receivable		3,761
Total assets		1,074,830,332
Liabilities
Unrealized depreciation on inflation swaps		64,475,375
Payable for investment securities purchased		3,788,774
Payable for capital stock redeemed		896,402
Advisory fee payable		340,748
Market value on credit default swaps (net premiums received $450,363)		339,483
Distribution fee payable		60,501
Administrative fee payable		24,754
Transfer Agent fee payable		11,564
Directors’ fees payable		1,936
Accrued expenses		154,237
Total liabilities		70,093,774
Net Assets	$	1,004,736,558
Composition of Net Assets
Capital stock, at par	$	98,492
Additionalpaid-in capital		1,032,592,354
Accumulated loss		(27,954,288	)
	$	1,004,736,558

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	54,316,185		5,306,524	$	10.24	*
C	$	7,717,471		754,816	$	10.22
Advisor	$	205,540,600		20,072,325	$	10.24
1	$	498,856,238		48,976,632	$	10.19
2	$	238,306,064		23,381,935	$	10.19

* The maximum offering price per share for Class A shares was $10.56 which reflects a sales charge of 3.00%.

See notes to financial statements.

36    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Interest	$	30,851,218
Dividends—Affiliated issuers		141,475		$	30,992,693
Expenses
Advisory fee (see Note B)		5,044,656
Distribution fee—Class A		138,929
Distribution fee—Class C		92,520
Distribution fee—Class 1		498,809
Transfer agency—Class A		27,625
Transfer agency—Class C		4,739
Transfer agency—Advisor Class		102,776
Transfer agency—Class 1		24,548
Transfer agency—Class 2		11,789
Custodian		181,926
Registration fees		123,218
Audit and tax		89,640
Administrative		74,366
Legal		47,065
Printing		44,160
Directors’ fees		23,131
Miscellaneous		47,069
Total expenses		6,576,966
Less: expenses waived and reimbursed by the Adviser (see Note B)		(791,984	)
Net expenses					5,784,982
Net investment income					25,207,711
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized loss on:
Investment transactions					(1,270,461	)
Swaps					(1,236,554	)
Net change in unrealized appreciation/depreciation of:
Investments					54,507,661
Swaps					(31,500,227	)
Net gain on investment transactions					20,500,419
Net Increase in Net Assets from Operations				$	45,708,130

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    37

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	25,207,711		$	22,108,425
Net realized loss on investment transactions		(2,507,015	)		(4,365,995	)
Net change in unrealized appreciation/depreciation of investments		23,007,434			(20,995,942	)
Net increase (decrease) in net assets from operations		45,708,130			(3,253,512	)
Distributions to Shareholders
Class A		(1,289,741	)		(1,468,127	)
Class C		(137,912	)		(160,562	)
Advisor Class		(5,312,312	)		(5,042,775	)
Class 1		(12,623,500	)		(10,641,296	)
Class 2		(6,307,648	)		(5,309,014	)
Capital Stock Transactions
Net increase (decrease)		(43,748,072	)		145,553,515
Total increase (decrease)		(23,711,055	)		119,678,229
Net Assets
Beginning of period		1,028,447,613			908,769,384
End of period	$	1,004,736,558		$	1,028,447,613

See notes to financial statements.

38    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Municipal Bond Inflation Strategy (the “Fund”), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class 1 and Class 2 shares. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class B, Class R, Class K, Class I and Class T shares have been authorized but currently are not offered. Class A shares are sold with afront-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class and Class 2 shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. Class 1 shares are sold without an initial or contingent deferred sales charge, but are subject to ongoing distribution expenses. All ten classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS(continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

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determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rates, coupon rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security

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features in order to estimate the relevant cash flows which is then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

1,023,769,744

$

– 0

–

$

1,023,769,744

Governments – Treasuries

– 0

–

20,483,594

– 0

–

20,483,594

Short-Term Investments

3,713,969

– 0

–

– 0

–

3,713,969

Total Investments in Securities

3,713,969

1,044,253,338

– 0

–

1,047,967,307

Other Financial Instruments(a):

Assets:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

33,482

– 0

–

33,482

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

447,295

– 0

–

447,295

(b)

Inflation (CPI) Swaps

– 0

–

495,834

– 0

–

495,834

Interest Rate Swaps

– 0

–

147,369

– 0

–

147,369

Liabilities:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(370,782

)

– 0

–

(370,782

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(508,543

)

– 0

–

(508,543

)(b)

Credit Default Swaps

– 0

–

(339,483

)

– 0

–

(339,483

)

Inflation (CPI) Swaps

– 0

–

(64,475,375

)

– 0

–

(64,475,375

)

Total

$

3,713,969

$

979,683,135

$

– 0

–

$

983,397,104

+

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

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+ An amount of $28,064,921 for Long-Term Municipal Bonds was transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

4. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes original issue and market discounts as adjustments to interest income.

5. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

6. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

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NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) on an annual basis (the “Expense Caps”) to .75%, 1.50%, .50%, .60% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class 1 and Class 2 shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2020 and then may be extended by the Adviser for additionalone-year terms. For the year ended October 31, 2019, such reimbursements/waivers amounted to $785,652.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the reimbursement for such services amounted to $74,366.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $62,367 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales charges of $0 from the sale of Class A shares and received $12,231 and $447 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the

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Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $6,332.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2019 is as follows:

Fund	Market Value 10/31/18 (000)			Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	– 0	–	$	226,463	$	222,749	$	3,714	$	141

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable, and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

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NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class and Class 2 shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $421,543 and $1,798,457 for Class C and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	121,628,961	$	171,850,578
U.S. government securities		4,999,023		4,976,367

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	996,272,013
Gross unrealized appreciation	$	53,288,050
Gross unrealized depreciation		(65,951,954	)
Net unrealized depreciation	$	(12,663,904	)

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1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal type of derivative utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on aphased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less thannon-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on

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a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2019, the Fund held inflation (CPI) swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

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Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2019, the Fund held credit default swaps fornon-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to

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terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	480,777	*	Receivable/Payable for variation margin on centrally cleared swaps	$	879,325	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		147,369
Interest rate contracts	Unrealized appreciation on inflation swaps		495,834		Unrealized depreciation on inflation swaps		64,475,375
Credit contracts					Market value on credit default swaps		339,483
Total		$	1,123,980			$	65,694,183

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(1,368,105	)	$	(31,702,791	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		131,551			202,564
Total		$	(1,236,554	)	$	(31,500,227	)

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The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Interest Rate Swaps:
Average notional amount	$	22,150,000	(a)
Inflation Swaps:
Average notional amount	$	856,994,615
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	73,296,000	(b)
Centrally Cleared Inflation Swaps:
Average notional amount	$	52,170,000	(b)
Credit Default Swaps:
Average notional amount of sale contracts	$	3,985,000

(a) Positions were open for one month during the year.

(b) Positions were open for five months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Bank of America, NA	$	248,412	$	(248,412	)	$	– 0	–	$	– 0	–	$	– 0	–
Citibank, NA		394,791		(394,791	)		– 0	–		– 0	–		– 0	–
Total	$	643,203	$	(643,203	)	$	– 0	–	$	– 0	–	$	– 0	–
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	2,223,765	$	(248,412	)	$	(690,000	)	$	(1,080,766	)	$	204,587
Barclays Bank PLC		16,107,734		– 0	–		– 0	–		(16,107,734	)		– 0	–
Citibank, NA		20,186,267		(394,791	)		– 0	–		(19,791,476	)		– 0	–
Citigroup Global Markets, Inc.		56,829		– 0	–		– 0	–		– 0	–		56,829

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NOTES TO FINANCIAL STATEMENTS(continued)

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Credit Suisse International	$	210,660	$	– 0	–	$	– 0	–	$	(210,660	)	$	– 0	–
Deutsche Bank AG		2,786,986		– 0	–		(1,084,000	)		(1,640,364	)		62,622
Goldman Sachs International		71,994		– 0	–		– 0	–		– 0	–		71,994
JPMorgan Chase Bank, NA		18,905,161		– 0	–		(4,726,000	)		(13,690,717	)		488,444
Morgan Stanley Capital Services LLC		4,265,462		– 0	–		(877,000	)		(3,388,462	)		– 0	–
Total	$	64,814,858	$	(643,203	)	$	(7,377,000	)	$	(55,910,179	)	$	884,476	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for Class A, Class C, Advisor Class, Class 1 and Class 2 were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		1,771,451			3,546,849		$	18,033,736		$	36,220,307
Shares issued in reinvestment of dividends		86,462			105,427			879,985			1,076,579
Shares converted from Class C		133,994			3,304			1,380,472			33,609
Shares redeemed		(4,179,787	)		(1,827,174	)		(42,207,147	)		(18,606,245	)
Net increase (decrease)		(2,187,880	)		1,828,406		$	(21,912,954	)	$	18,724,250

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NOTES TO FINANCIAL STATEMENTS(continued)

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class C
Shares sold		177,607			244,709		$	1,807,733		$	2,490,307
Shares issued in reinvestment of dividends		10,536			11,513			107,230			117,437
Shares converted to Class A		(134,210	)		(3,309	)		(1,380,472	)		(33,609	)
Shares redeemed		(366,478	)		(422,304	)		(3,715,959	)		(4,302,036	)
Net decrease		(312,545	)		(169,391	)	$	(3,181,468	)	$	(1,727,901	)
Advisor Class
Shares sold		9,621,301			10,492,451		$	98,239,600		$	107,067,984
Shares issued in reinvestment of dividends		371,721			341,322			3,789,340			3,487,216
Shares redeemed		(12,466,466	)		(7,688,911	)		(126,710,398	)		(78,417,257	)
Net increase (decrease)		(2,473,444	)		3,144,862		$	(24,681,458	)	$	32,137,943
Class 1
Shares sold		7,527,585			13,032,916		$	76,245,783		$	132,399,166
Shares issued in reinvestment of dividends		996,866			841,883			10,112,533			8,565,451
Shares redeemed		(8,166,935	)		(6,661,275	)		(82,786,584	)		(67,633,874	)
Net increase		357,516			7,213,524		$	3,571,732		$	73,330,743
Class 2
Shares sold		3,121,484			4,141,669		$	31,553,791		$	42,068,510
Shares issued in reinvestment of dividends		483,312			391,427			4,906,067			3,983,832
Shares redeemed		(3,357,173	)		(2,257,711	)		(34,003,782	)		(22,963,862	)
Net increase		247,623			2,275,385		$	2,456,076		$	23,088,480

NOTE F

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments

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NOTES TO FINANCIAL STATEMENTS(continued)

in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

Recent tax law changes could have a material impact on the value of municipal securities. In addition, Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult

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NOTES TO FINANCIAL STATEMENTS(continued)

to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market

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NOTES TO FINANCIAL STATEMENTS(continued)

for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	927,242	$	619,937
Total taxable distributions		927,242		619,937
Tax-exempt distributions		24,743,871		22,001,837
Total distributions paid	$	25,671,113	$	22,621,774

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NOTES TO FINANCIAL STATEMENTS(continued)

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(15,290,384	)(a)
Unrealized appreciation/(depreciation)		(12,663,904	)(b)
Total accumulated earnings/(deficit)	$	(27,954,288	)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $15,290,384.

(b) The difference between book-basis andtax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax treatment of swaps.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the Fund had a net short-term capital loss carryforward of $2,798,319 and a net long-term capital loss carryforward of $12,492,065, which may be carried forward for an indefinite period.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and

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NOTES TO FINANCIAL STATEMENTS(continued)

elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.02			$  10.28			$  10.29			$  10.14			$  10.48
Income From Investment Operations
Net investment income(a)(b)		.24			.22			.19			.18			.15
Net realized and unrealized gain (loss) on investment transactions		.21			(.26	)		(.01	)		.16			(.34	)
Net increase (decrease) in net asset value from operations		.45			(.04	)		.18			.34			(.19	)
Less: Dividends
Dividends from net investment income		(.23	)		(.22	)		(.19	)		(.19	)		(.15	)
Net asset value, end of period		$  10.24			$  10.02			$  10.28			$  10.29			$  10.14
Total Return
Total investment return based on net asset value(c)		4.58	%		(.42	)%		1.75	%		3.38	%		(1.83	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$54,316			$75,127			$58,270			$37,345			$41,122
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.76	%
Expenses, before waivers/reimbursements		.86	%		.86	%		.86	%		.86	%		.87	%
Net investment income(b)		2.32	%		2.13	%		1.90	%		1.78	%		1.49	%
Portfolio turnover rate		12	%		15	%		9	%		9	%		17	%

See footnote summary on page 64.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.01			$  10.26			$  10.27			$  10.12			$  10.46
Income From Investment Operations
Net investment income(a)(b)		.16			.14			.12			.10			.08
Net realized and unrealized gain (loss) on investment transactions		.20			(.25	)		(.02	)		.16			(.35	)
Net increase (decrease) in net asset value from operations		.36			(.11	)		.10			.26			(.27	)
Less: Dividends
Dividends from net investment income		(.15	)		(.14	)		(.11	)		(.11	)		(.07	)
Net asset value, end of period		$  10.22			$  10.01			$  10.26			$  10.27			$  10.12
Total Return
Total investment return based on net asset value(c)		3.63	%		(1.09	)%		.99	%		2.61	%		(2.56	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$7,717			$10,681			$12,693			$10,805			$13,154
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, before waivers/reimbursements		1.61	%		1.61	%		1.61	%		1.61	%		1.61	%
Net investment income(b)		1.57	%		1.37	%		1.15	%		1.03	%		.75	%
Portfolio turnover rate		12	%		15	%		9	%		9	%		17	%

See footnote summary on page 64.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.03			$  10.29			$  10.30			$  10.14			$  10.48
Income From Investment Operations
Net investment income(a)(b)		.26			.24			.22			.21			.18
Net realized and unrealized gain (loss) on investment transactions		.21			(.26	)		(.02	)		.17			(.34	)
Net increase (decrease) in net asset value from operations		.47			(.02	)		.20			.38			(.16	)
Less: Dividends
Dividends from net investment income		(.26	)		(.24	)		(.21	)		(.22	)		(.18	)
Net asset value, end of period		$  10.24			$  10.03			$  10.29			$  10.30			$  10.14
Total Return
Total investment return based on net asset value(c)		4.76	%		(.17	)%		2.00	%		3.74	%		(1.56	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$205,541			$226,145			$199,635			$152,275			$171,789
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.61	%		.61	%		.61	%		.61	%		.61	%
Net investment income(b)		2.57	%		2.37	%		2.15	%		2.03	%		1.76	%
Portfolio turnover rate		12	%		15	%		9	%		9	%		17	%

See footnote summary on page 64.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  9.98			$  10.25			$  10.26			$  10.11			$  10.45
Income From Investment Operations
Net investment income(a)(b)		.25			.23			.21			.20			.17
Net realized and unrealized gain (loss) on investment transactions		.22			(.26	)		(.01	)		.16			(.34	)
Net increase (decrease) in net asset value from operations		.47			(.03	)		.20			.36			(.17	)
Less: Dividends
Dividends from net investment income		(.26	)		(.24	)		(.21	)		(.21	)		(.17	)
Net asset value, end of period		$  10.19			$  9.98			$  10.25			$  10.26			$  10.11
Total Return
Total investment return based on net asset value(c)		4.72	%		(.32	)%		1.94	%		3.58	%		(1.62	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$498,857			$485,386			$424,291			$333,311			$386,448
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.67	%		.67	%		.67	%		.68	%		.67	%
Net investment income(b)		2.47	%		2.27	%		2.05	%		1.93	%		1.66	%
Portfolio turnover rate		12	%		15	%		9	%		9	%		17	%

See footnote summary on page 64.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  9.99			$  10.25			$  10.26			$  10.12			$  10.46
Income From Investment Operations
Net investment income(a)(b)		.26			.24			.22			.21			.18
Net realized and unrealized gain (loss) on investment transactions		.21			(.25	)		(.01	)		.15			(.34	)
Net increase (decrease) in net asset value from operations		.47			(.01	)		.21			.36			(.16	)
Less: Dividends
Dividends from net investment income		(.27	)		(.25	)		(.22	)		(.22	)		(.18	)
Net asset value, end of period		$  10.19			$  9.99			$  10.25			$  10.26			$  10.12
Total Return
Total investment return based on net asset value(c)		4.73	%		(.12	)%		2.04	%		3.58	%		(1.52	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$238,306			$231,109			$213,880			$170,155			$176,066
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.57	%		.57	%		.57	%		.58	%		.57	%
Net investment income(b)		2.57	%		2.37	%		2.14	%		2.03	%		1.76	%
Portfolio turnover rate.		12	%		15	%		9	%		9	%		17	%

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Municipal Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Municipal Bond Inflation Strategy (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 26, 2019

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Robert B. (“Guy”) Davidson III⁽²⁾, Vice President Terrance T. Hults⁽²⁾,Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽²⁾, Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller Vincent S. Noto,Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Municipal Bond Investment Team. Messrs. Davidson, Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensivenon-profit board leadership experience, and currently serves on the boards of two education and science-relatednon-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007
Michael J. Downey,## 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company andnon-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of variousnon-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act,” due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Robert B. “Guy” Davidson III 58	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer—Municipal Business.
Terrance T. Hults 53	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Co-Head—Municipal Portfolio Management.
Matthew J. Norton 36	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Co-Head—Municipal Portfolio Management.
Andrew D. Potter 34	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at(800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Municipal Bond Inflation Strategy (the “Fund”) at a meeting held onNovember 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits

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relating to12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1-,3- and5-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were

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lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with their independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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AB MUNICIPAL BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MBIS-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB SHORT DURATION INCOME PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Short Duration Income Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    1

ANNUAL REPORT

December 17, 2019

This report provides management’s discussion of fund performance for AB Short Duration Income Portfolio for the annual reporting period ended October 31, 2019.

The Fund’s investment objective is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		Since Inception1
AB SHORT DURATION INCOME PORTFOLIO
Class A Shares		3.52%		7.09%
Class C Shares		3.00%		6.23%
Advisor Class Shares2		3.61%		7.25%
Bloomberg Barclays1-5 Year US Government/Credit Index		2.97%		5.73%

1 Inception date: 12/12/2018.

2 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays1-5 Year US Government/Credit Index, for thesix-month period ended October 31, 2019, and the period since the Fund’s inception on December 12, 2018, through October 31, 2019.

During the period since inception, all share classes of the Fund outperformed the benchmark, before sales charges. Sector and industry selections in commercial mortgage-backed securities and agency risk-sharing transactions were the primary contributors, relative to the benchmark, which more than offset losses in investment-grade corporates. Country allocation also added to returns, the result ofoff-benchmark allocations to the eurozone and a number of countries, including Brazil and Indonesia, while yield-curve positioning in the US, eurozone and Brazil added to returns. At the security level, an underweight to US investment-grade corporate bonds modestly added to returns. Currency exposures detracted from performance, asoff-benchmark gains in the Swiss franc and the yen were more than offset by losses in the Mexican peso, South Korean won and Brazilian real.

During thesix-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Country allocation and yield-curve

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positioning were the primary contributors due tooff-benchmark allocations to the eurozone and a number of countries, including Brazil and Indonesia, as well as yield-curve positioning in the US, eurozone and Brazil. Sector and industry selection in commercial mortgage-backed securities also added to returns. At the security level, an underweight to US investment-grade corporate bonds modestly added to returns. Currency exposures detracted from performance because ofoff-benchmark losses in the Mexican peso, Australian dollar and Brazilian real.

During both periods, the Fund utilized derivatives in the form of futures, interest rate swaps and interest rate swaptions to manage and hedge duration risk and take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used both to take active exposure and to hedge investment-grade and high-yield credit risk. Total return swaps were used to create synthetic high-yield exposure in the Fund.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the12-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times, reacting to slowing global growth, declining manufacturing output and faltering business confidence from the ongoingUS-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low, while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remained below target in most developed countries and was falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partialUS-China trade agreement and an increased likelihood of the UK leaving the European Union at the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US andnon-US issuers as well as corporate bonds,

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    3

with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, primarily in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments and their agencies and instrumentalities (including mortgage-backed securities), derivatives related to such securities, and repurchase agreements relating to US government securities. Under normal circumstances, the Fund will maintain a dollar-weighted average duration of less than three years, although it may invest in securities of any duration or maturity.

The Fund may invest innon-government fixed-income securities, including corporate debt securities,non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund’s investments in foreign securities may include both government and corporate securities, and securities of emerging-market countries or of issuers in emerging markets.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may utilize derivatives, such as options, futures contracts, forwards and swaps. The Fund may, for example, use interest rate futures contracts and swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

The Adviser may hedge the foreign currency exposure resulting from the Fund’s security positions, and may take long or short positions in currencies, through the use of currency-related derivatives. The Fund is“non-diversified”.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays1-5 Year US Government/Credit Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays1-5 Year US Government/Credit Index is a broad-based benchmark that measures thenon-securitized component of the Bloomberg Barclays US Aggregate Index. It includes investment grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities that have a remaining maturity of greater than or equal to one year and less than five years. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, negative perceptions of the junk bond market generally and less secondary market liquidity.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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DISCLOSURES AND RISKS(continued)

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Foreign(Non-US) Risk: Investments in securities ofnon-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging-Market Risk: Investments in emerging-market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years illiquid investments risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk: The Fund may have more risk because it is“non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

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DISCLOSURES AND RISKS(continued)

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered bynon-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recentmonth-end by visiting www.abfunds.com. The Fund has been in operation only for a short period of time, and therefore has a very limited historical performance period. This limited performance period is unlikely to be representative of the performance the Portfolio will achieve over a longer period.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximumfront-end sales charge for Class A shares and a 1%1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

12/12/2018¹ TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in AB Short Duration Income Portfolio Class A shares (from 12/12/2018¹ to 10/31/2019) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/12/2018.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						0.69%
Since Inception2		7.09%		2.57%
CLASS C SHARES						-0.19%
Since Inception2		6.23%		5.23%
ADVISOR CLASS SHARES3						0.92%
Since Inception2		7.25%		7.25%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.25%, 2.05% and 1.05% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs to 0.65%, 1.45% and 0.45% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before November 15, 2019. Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total operating expenses to exceed the applicable expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the30-day period ended October 31, 2019.

2 Inception date: 12/12/2018.

3 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
Since Inception1		2.09%
CLASS C SHARES
Since Inception1		4.91%
ADVISOR CLASS SHARES2
Since Inception1		6.74%

1 Inception date: 12/12/2018.

2 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution(12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,035.20	$	3.69		0.72	%
Hypothetical**	$	1,000	$	1,021.58	$	3.67		0.72	%
Class C
Actual	$	1,000	$	1,030.00	$	7.78		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	1,036.10	$	2.72		0.53	%
Hypothetical**	$	1,000	$	1,022.53	$	2.70		0.53	%

* Expenses are equal to the Fund’s annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $15.5

SECURITY TYPE BREAKDOWN¹

	Long			Short
Governments – Treasuries		29.5	%		-3.9	%
Collateralized Mortgage Obligations		21.1			—
Mortgage Pass-Throughs		14.9			—
Commercial Mortgage-Backed Securities		9.8			—
Inflation-Linked Securities		7.8			—
Repurchase Agreements		3.9			—
U.S. Treasury Bills		3.9			—
Asset-Backed Securities		3.3			—
Governments – Sovereign Agencies		2.8			—
Emerging Markets – Treasuries		2.7			—
Corporates – Non-Investment Grade		1.5			—
Corporates – Investment Grade		1.3			—
Bank Loans		0.5			—
Emerging Markets – Sovereigns		0.3			—
Quasi-Sovereigns		0.3			—
Short-Term		0.3			—

1 All data are as of October 31, 2019. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details).

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PORTFOLIO OF INVESTMENTS

October 31, 2019

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 38.1%
Indonesia – 2.6%
Indonesia Treasury Bond
Series FR53 8.25%, 7/15/21	IDR		1,625,000	$	119,817
Series FR56 8.375%, 9/15/26			227,000		17,659
Series FR70 8.375%, 3/15/24			137,000		10,473
Series FR77 8.125%, 5/15/24			2,414,000		183,410
Series FR78 8.25%, 5/15/29			916,000		70,934
					402,293
Ireland – 2.0%
Ireland Government Bond 3.40%, 3/18/24(a)	EUR		235		306,122
Italy – 2.9%
Italy Buoni Poliennali Del Tesoro 4.50%, 3/01/24			338		445,644
Mexico – 1.2%
Mexican Bonos Series M 20 7.50%, 6/03/27	MXN		3,550		192,509
Peru – 1.1%
Peru Government Bond 5.70%, 8/12/24	PEN		500		165,590
United States – 28.3%
U.S. Treasury Bonds 6.125%, 11/15/27(b)	U.S.$		2,453		3,280,504
U.S. Treasury Notes 1.625%, 8/15/29			558		554,588
2.875%, 8/15/28(b)			435		477,339
3.125%, 11/15/28			76		84,902
					4,397,333
Total Governments – Treasuries (cost $5,613,016)					5,909,491
COLLATERALIZED MORTGAGE OBLIGATIONS – 27.3%
Risk Share Floating Rate – 25.6%
Bellemeade Re Ltd. Series2019-1A, Class M2 4.523% (LIBOR 1 Month + 2.70%), 3/25/29(a)(c)			152		152,012

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    13

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(a)(c)	U.S.$		150	$	150,149
Connecticut Avenue Securities Trust Series2019-R01, Class 2M2 4.273% (LIBOR 1 Month + 2.45%), 7/25/31(a)(c)			19		19,150
Series2019-R02, Class 1M2 4.123% (LIBOR 1 Month + 2.30%), 8/25/31(a)(c)			30		30,186
Series2019-R03, Class 1M2 3.973% (LIBOR 1 Month + 2.15%), 9/25/31(a)(c)			43		42,968
Series2019-R05, Class 1M2 3.823% (LIBOR 1 Month + 2.00%), 7/25/39(a)(c)			35		35,036
Series2019-R06, Class 2M2 3.923% (LIBOR 1 Month + 2.10%), 9/25/39(a)(c)			50		50,118
Series2019-R07, Class 1M2 3.923% (LIBOR 1 Month + 2.10%), 10/25/39(a)(c)			55		54,990
Federal Home Loan Mortgage Corp. Series 2019-DNA4, Class M2 3.828% (LIBOR 1 Month + 1.95%), 10/25/49(a)(c)			34		33,932
Series 2019-HQA1, Class M2 4.173% (LIBOR 1 Month + 2.35%), 2/25/49(a)(c)			20		19,716
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series2014-DN4, Class M3 6.373% (LIBOR 1 Month + 4.55%), 10/25/24(c)			251		269,519
Series 2017-DNA2, Class M2 5.273% (LIBOR 1 Month + 3.45%), 10/25/29(c)			400		424,745
Series 2018-DNA1, Class M2 3.623% (LIBOR 1 Month + 1.80%), 7/25/30(c)			88		87,962
Federal National Mortgage Association Connecticut Avenue Securities Series2014-C04, Class 1M2 6.723% (LIBOR 1 Month + 4.90%), 11/25/24(c)			277		302,794
Series2016-C04, Class 1M2 6.073% (LIBOR 1 Month + 4.25%), 1/25/29(c)			400		422,670
Series2016-C05, Class 2M2 6.273% (LIBOR 1 Month + 4.45%), 1/25/29(c)			358		376,167

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series2017-C02, Class 2B1 7.323% (LIBOR 1 Month + 5.50%), 9/25/29(c)	U.S.$		24	$	28,008
Series2017-C02, Class 2M2 5.473% (LIBOR 1 Month + 3.65%), 9/25/29(c)			471		493,609
Series2017-C04, Class 2M2 4.673% (LIBOR 1 Month + 2.85%), 11/25/29(c)			73		75,075
Series2017-C05, Class 1M2 4.023% (LIBOR 1 Month + 2.20%), 1/25/30(c)			75		75,883
Series2017-C07, Class 2M2 4.323% (LIBOR 1 Month + 2.50%), 5/25/30(c)			175		177,139
Home Re Ltd. Series2018-1, Class M1 3.423% (LIBOR 1 Month + 1.60%), 10/25/28(a)(c)			119		119,810
Oaktown Re II Ltd. Series2018-1A, Class M1 3.373% (LIBOR 1 Month + 1.55%), 7/25/28(a)(c)			113		113,060
Oaktown Re III Ltd. Series2019-1A, Class M1B 3.773% (LIBOR 1 Month + 1.95%), 7/25/29(a)(c)			150		149,984
PMT Credit Risk Transfer Trust Series2019-3R, Class A 4.164% (LIBOR 1 Month + 2.70%), 8/27/24(c)(d)			100		100,002
Radnor Re Ltd. Series2019-2, Class M1B 3.573% (LIBOR 1 Month + 1.75%), 6/25/29(a)(c)			155		155,000
STACR Trust Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(a)(c)			16		16,087
					3,975,771
Agency Floating Rate – 1.2%
Federal Home Loan Mortgage Corp. REMICs Series 4372, Class JS 4.179% (6.10% – LIBOR 1 Month), 8/15/44(c)(e)			214		39,191
Series 4906, Class SA 4.129% (6.05% – LIBOR 1 Month), 9/25/49(c)(e)			205		37,672

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Federal National Mortgage Association Series2019-25, Class SA 4.227% (6.05% – LIBOR 1 Month), 6/25/49(c)(e)	U.S.$		95	$	19,112
Federal National Mortgage Association REMICs Series2010-129, Class PS 4.877% (6.70% – LIBOR 1 Month), 11/25/38(c)(e)			429		14,823
Series2012-17, Class ES 4.727% (6.55% – LIBOR 1 Month), 3/25/41(c)(e)			193		26,853
Series2012-17, Class SE 4.127% (5.95% – LIBOR 1 Month), 3/25/42(c)(e)			105		25,027
Series2019-42, Class SQ 4.227% (6.05% – LIBOR 1 Month), 8/25/49(c)(e)			127		20,127
					182,805
Agency Fixed Rate – 0.5%
Federal Home Loan Mortgage Corp. REMICs Series 4913, Class IO 6.00%, 4/15/41(f)			153		36,505
Federal National Mortgage Association REMICs Series2012-120, Class CI 3.50%, 12/25/31(f)			532		37,927
Series2016-64, Class BI 5.00%, 9/25/46(f)			57		10,715
					85,147
Total Collateralized Mortgage Obligations (cost $4,273,098)					4,243,723
MORTGAGE PASS-THROUGHS – 19.4%
Agency Fixed Rate30-Year – 19.4%
Federal National Mortgage Association Series 2019 3.50%, 11/01/49, TBA			1,865		1,915,146
4.50%, 11/01/49, TBA			681		715,900
5.00%, 11/01/49, TBA			349		373,073
Total Mortgage Pass-Throughs (cost $3,007,716)					3,004,119
COMMERCIAL MORTGAGE-BACKED SECURITIES – 12.7%
Non-Agency Fixed Rate CMBS – 11.3%
CFCRE Commercial Mortgage Trust Series2016-C4, Class XA 1.712%, 5/10/58(f)			96		8,361

16    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Citigroup Commercial Mortgage Trust Series2016-P3, Class XA 1.688%, 4/15/49(f)	U.S.$		1,194	$	92,203
Series2017-P7, Class XA 1.127%, 4/14/50(f)			990		63,887
Commercial Mortgage Trust Series 2014-CR16, Class D 4.928%, 4/10/47(a)			100		98,799
Series 2015-CR27, Class XA 1.105%, 10/10/48(f)			1,485		65,917
Series2016-DC2, Class XA 1.015%, 2/10/49(f)			1,951		98,263
CSAIL Commercial Mortgage Trust Series2015-C1, Class D 3.774%, 4/15/50(a)			100		98,231
GS Mortgage Securities Trust Series 2013-GC13, Class C 4.083%, 7/10/46(a)			100		103,413
Series 2013-GC13, Class D 4.083%, 7/10/46(a)			100		99,088
Series 2014-GC22, Class D 4.691%, 6/10/47(a)			40		39,220
Series2016-GS3, Class XA 1.256%, 10/10/49(f)			1,525		98,792
Series2017-GS5, Class XA 0.816%, 3/10/50(f)			1,588		82,230
JP Morgan Chase Commercial Mortgage Securities Trust Series2012-C8, Class E 4.652%, 10/15/45(a)			100		98,564
JPMBB Commercial Mortgage Securities Trust Series2013-C14, Class D 4.702%, 8/15/46(a)			75		73,860
Series2014-C26, Class C 4.382%, 1/15/48			74		78,625
Morgan Stanley Bank of America Merrill Lynch Trust Series2014-C18, Class C 4.52%, 10/15/47			59		62,371
UBS Commercial Mortgage Trust Series2012-C1, Class D 5.57%, 5/10/45(a)			125		125,532
Series2017-C1, Class XA 1.57%, 6/15/50(f)			1,386		124,344
UBS-Barclays Commercial Mortgage Trust Series2013-C6, Class D 4.31%, 4/10/46(a)			81		78,665
Wells Fargo Commercial Mortgage Trust Series2016-C32, Class XA 1.302%, 1/15/59(f)			961		59,048

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-LC24, Class XA 1.678%, 10/15/49(f)	U.S.$		946	$	82,993
WFRBS Commercial Mortgage Trust Series2011-C4, Class E 5.23%, 6/15/44(a)			25		25,040
					1,757,446
Non-Agency Floating Rate CMBS – 1.4%
BFLD Trust Series 2019-DPLO, Class E 4.154% (LIBOR 1 Month + 2.24%), 10/15/34(a)(c)			10		10,000
Morgan Stanley Capital I Trust Series2019-BPR, Class D 5.921% (LIBOR 1 Month + 4.00%), 5/15/36(a)(c)			13		13,000
Natixis Commercial Mortgage Securities Trust Series 2018-850T, Class D 3.367% (LIBOR 1 Month + 1.45%), 7/15/33(a)(c)			100		99,843
Starwood Retail Property Trust Series 2014-STAR, Class A 3.134% (LIBOR 1 Month + 1.22%), 11/15/27(a)(c)			89		88,475
					211,318
Total Commercial Mortgage-Backed Securities (cost $1,959,557)					1,968,764
INFLATION-LINKED SECURITIES – 10.1%
United States – 10.1%
U.S. Treasury Inflation Index 0.125%,1/15/22-7/15/24 (cost $1,570,387)			1,578		1,574,052
ASSET-BACKED SECURITIES – 4.3%
Autos - Fixed Rate – 2.2%
Exeter Automobile Receivables Trust Series2018-4A, Class E 5.38%, 7/15/25(a)			115		120,031
Series2019-1A, Class E 5.20%, 1/15/26(a)			40		41,864
Series2019-2A, Class E 4.68%, 5/15/26(a)			15		15,416
First Investors Auto Owner Trust Series2019-1A, Class E 4.53%, 6/16/25(a)			150		154,589
Westlake Automobile Receivables Trust Series2019-2A, Class E 4.02%, 4/15/25(a)			14		14,124
					346,024

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Other ABS - Fixed Rate – 2.1%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series2019-43, Class PT 7.995%, 11/15/44(a)(g)	U.S.$		16	$	15,515
Consumer Loan Underlying Bond CLUB Credit Trust Series2019-P2, Class B 2.83%, 10/15/26(a)(g)			100		99,922
Marlette Funding Trust Series2018-3A, Class C 4.63%, 9/15/28(a)(g)			100		102,870
Series2019-1A, Class C 4.42%, 4/16/29(a)(g)			100		102,069
					320,376
Total Asset-Backed Securities (cost $655,647)					666,400
GOVERNMENTS – SOVEREIGN AGENCIES – 3.6%
Canada – 3.6%
Canada Housing Trust No. 1 2.65%, 12/15/28(a) (cost $564,538)	CAD		690		559,932
EMERGING MARKETS – TREASURIES – 3.5%
Brazil – 0.9%
Brazil Notas do Tesouro Nacional Series NTNF 10.00%, 1/01/23	BRL		487		137,459
South Africa – 2.6%
Republic of South Africa Government Bond Series 2023 7.75%, 2/28/23	ZAR		6,000		399,532
Series 2030 8.00%, 1/31/30			235		14,326
					413,858
Total Emerging Markets – Treasuries (cost $568,871)					551,317
CORPORATES –NON-INVESTMENT GRADE – 1.9%
Industrial – 1.4%
Basic – 0.1%
Eldorado Gold Corp. 9.50%, 6/01/24(a)	U.S.$		8		8,640

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Graphic Packaging International LLC 4.75%, 7/15/27(a)	U.S.$		6	$	6,379
					15,019
Capital Goods – 0.2%
Bombardier, Inc. 7.50%, 3/15/25(a)			8		7,651
GFL Environmental, Inc. 7.00%, 6/01/26(a)			8		8,517
Triumph Group, Inc. 5.25%, 6/01/22			8		7,892
					24,060
Communications - Media – 0.1%
DISH DBS Corp. 5.00%, 3/15/23			8		8,057
Univision Communications, Inc. 5.125%,5/15/23-2/15/25(a)			6		5,924
					13,981
Communications - Telecommunications – 0.1%
Intelsat Jackson Holdings SA 8.50%, 10/15/24(a)			8		8,061
Consumer Cyclical - Automotive – 0.1%
Panther BF Aggregator 2 LP/Panther Finance Co., Inc. 6.25%, 5/15/26(a)			3		3,175
8.50%, 5/15/27(a)			8		8,060
Truck Hero, Inc. 8.50%, 4/21/24(a)			5		4,975
					16,210
Consumer Cyclical - Other – 0.1%
Taylor Morrison Communities, Inc. 5.875%, 6/15/27(a)			15		16,763
Consumer Cyclical - Retailers – 0.1%
Staples, Inc. 7.50%, 4/15/26(a)			15		15,616
ConsumerNon-Cyclical – 0.3%
CHS/Community Health Systems, Inc. 6.25%, 3/31/23			8		7,805
Eagle Holding Co. II LLC 7.625% (7.625% Cash or 8.375% PIK), 5/15/22(a)(h)			8		8,098
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/26(a)			7		7,683

20    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Tenet Healthcare Corp. 4.875%, 1/01/26(a)	U.S.$		9	$	9,323
8.125%, 4/01/22			7		7,574
					40,483
Energy – 0.0%
Rowan Cos., Inc. 4.875%, 6/01/22			8		5,360
Other Industrial – 0.0%
IAA, Inc. 5.50%, 6/15/27(a)			5		5,363
Services – 0.1%
Harsco Corp. 5.75%, 7/31/27(a)			15		15,688
Technology – 0.1%
CommScope, Inc. 5.50%, 3/01/24(a)			20		20,294
Transportation - Services – 0.1%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.75%, 7/15/27(a)			2		2,056
XPO Logistics, Inc. 6.75%, 8/15/24(a)			10		10,863
					12,919
					209,817
Financial Institutions – 0.5%
Banking – 0.4%
HSBC Finance Corp. 6.676%, 1/15/21			61		63,768
Insurance – 0.0%
Polaris Intermediate Corp. 8.50% (8.50% Cash or 9.25% PIK), 12/01/22(a)(h)			9		7,542
Other Finance – 0.1%
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. 6.75%, 6/01/25(a)			8		8,204
					79,514
Utility – 0.0%
Electric – 0.0%
Talen Energy Supply LLC 7.25%, 5/15/27(a)			5		4,986
Total Corporates –Non-Investment Grade (cost $289,213)					294,317

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 1.7%
Industrial – 1.2%
Consumer Cyclical - Automotive – 0.4%
General Motors Financial Co., Inc. 5.10%, 1/17/24	U.S.$		53	$	57,216
ConsumerNon-Cyclical – 0.2%
BAT Capital Corp. 3.215%, 9/06/26			30		29,884
Technology – 0.6%
Broadcom, Inc. 4.25%, 4/15/26(a)			62		64,704
Micron Technology, Inc. 4.185%, 2/15/27			28		29,216
4.975%, 2/06/26			8		8,667
					102,587
					189,687
Financial Institutions – 0.5%
REITS – 0.5%
Sabra Health Care LP/Sabra Capital Corp. 4.80%, 6/01/24			11		11,585
Service Properties Trust 4.35%, 10/01/24			37		37,850
4.75%, 10/01/26			18		18,481
					67,916
Total Corporates – Investment Grade (cost $247,187)					257,603
BANK LOANS – 0.7%
Industrial – 0.6%
Communications - Media – 0.1%
Univision Communications Inc. 4.536% (LIBOR 1 Month + 2.75%), 3/15/24(i)			10		9,634
ConsumerNon-Cyclical – 0.3%
athenahealth, Inc. 6.681% (LIBOR 3 Month + 4.50%), 2/11/26(i)			19		18,824
U.S. Renal Care, Inc. 6.786% (LIBOR 1 Month + 5.00%), 6/26/26(i)			20		18,439
					37,263
Services – 0.1%
Parexel International Corporation 4.536% (LIBOR 1 Month + 2.75%), 9/27/24(i)			5		4,335

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PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
Team Health Holdings, Inc. 4.536% (LIBOR 1 Month + 2.75%), 2/06/24(i)	U.S.$		20	$	15,272
					19,607
Technology – 0.1%
Avaya Inc. 6.164% (LIBOR 1 Month + 4.25%), 12/15/24(i)			7		7,077
6.171% (LIBOR 1 Month + 4.25%), 12/15/24(i)			12		11,864
					18,941
					85,445
Financial Institutions – 0.1%
Finance – 0.0%
Ellie Mae, Inc. 5.863% (LIBOR 2 Month + 4.00%), 4/17/26(i)			9		8,648
Insurance – 0.1%
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 5.786% (LIBOR 1 Month + 4.00%), 9/03/26(i)(j)			11		10,858
					19,506
Total Bank Loans (cost $110,160)					104,951
QUASI-SOVEREIGNS – 0.4%
Quasi-Sovereign Bonds – 0.4%
Mexico – 0.4%
Petroleos Mexicanos 4.625%, 9/21/23			40		41,840
6.49%, 1/23/27(a)			22		23,441
Total Quasi-Sovereigns (cost $63,053)					65,281
EMERGING MARKETS – SOVEREIGNS – 0.3%
Lebanon – 0.1%
Lebanon Government International Bond 6.10%, 10/04/22(a)			16		9,600
Nigeria – 0.2%
Nigeria Government International Bond 5.625%, 6/27/22			40		41,287
Total Emerging Markets – Sovereigns (cost $53,804)					50,887

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)		U.S. $ Value
SHORT-TERM INVESTMENTS – 10.8%
U.S. Treasury Bills – 5.1%
U.S. Treasury Bill Zero Coupon, 12/26/19 (cost $792,841)	U.S.$		795	$	793,130
Repurchase Agreements – 5.1%
HSBC Bank USA 1.75%, dated 10/31/19 due 11/03/19 in the amount of $785,098 (collateralized by $784,000, U.S. Treasury Note, 1.50% due 8/31/21, value $783,142) (cost $784,980)			785		784,980
		Shares
Investment Companies – 0.4%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(k)(l)(m) (cost $56,606)			56,606		56,606
		Principal Amount (000)
Governments – Treasuries – 0.2%
Egypt – 0.2%
Egypt Treasury Bills Series 273D Zero Coupon, 4/21/20	EGP		450		25,990
Series 364D Zero Coupon, 1/21/20			50		2,996
Total Governments – Treasuries (cost $28,790)					28,986
Total Short-Term Investments (cost $1,663,217)					1,663,702
Total Investments Before Securities Sold Short – 134.8% (cost $20,639,464)					20,914,539

24    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

		Principal Amount (000)			U.S. $ Value
SECURITIES SOLD SHORT – (5.1)%
GOVERNMENTS – TREASURIES – (5.1)%
Treasuries – (5.1)%
U.S. Treasury Notes 1.50%, 8/31/21 (proceeds $783,220)	U.S.$		(784	)	$	(782,843	)
Total Investments – 129.7% (cost $19,856,244)						20,131,696
Other assets less liabilities – (29.7)%						(4,613,616	)
Net Assets – 100.0%					$	15,518,080

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Sold Contracts
10 Yr Canadian Bond Futures		5	December 2019	$	539,215	$	12,938
Euro-Bund Futures		1	December 2019		191,564		(904	)
Euro-Schatz Futures		5	December 2019		624,958		3,425
U.S. 10 Yr Ultra Futures		1	December 2019		142,110		(2,205	)
U.S.T-Note 2 Yr (CBT) Futures		7	December 2019		1,509,211		2,069
U.S.T-Note 5 Yr (CBT) Futures		10	December 2019		1,192,031		(2,458	)
						$	12,865

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation/ (Depreciation)
Citibank, NA	USD	77		RUB	4,949			11/14/19	$	365
Citibank, NA	USD	2		INR	116			1/16/20		11
Deutsche Bank AG	BRL	419		USD	100			11/04/19		(4,388	)
Deutsche Bank AG	USD	105		BRL	419			11/04/19		(167	)
Goldman Sachs Bank USA	CAD	763		USD	575			11/22/19		(4,201	)
JPMorgan Chase Bank, NA	RUB	2,416		USD	37			11/14/19		(406	)
JPMorgan Chase Bank, NA	IDR	5,748,503		USD	401			11/21/19		(6,280	)
State Street Bank & Trust Co.	ZAR	6,001		USD	405			11/21/19		9,120
State Street Bank & Trust Co.	MXN	3,699		USD	191			1/07/20		275
State Street Bank & Trust Co.	GBP	0	**	USD	0	**		1/10/20		(2	)
State Street Bank & Trust Co.	EUR	402		USD	451			1/16/20		49
State Street Bank & Trust Co.	EUR	267		USD	294			1/16/20		(4,897	)
State Street Bank & Trust Co.	USD	7		EUR	6			1/16/20		70
UBS AG	BRL	419		USD	105			11/04/19		167
UBS AG	USD	105		BRL	419			11/04/19		(669	)
UBS AG	BRL	419		USD	105			12/03/19		691
									$	(10,262	)

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PORTFOLIO OF INVESTMENTS(continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAHY Series 33, 5 Year Index, 12/20/24*		(5.00	)%		Quarterly		3.40	%	USD		580	$	(44,509	)	$	(41,099	)	$	(3,410	)
Sale Contracts
CDX-NAHY Series 32, 5 Year Index, 6/20/24*		5.00			Quarterly		3.15		USD		149		12,154			8,303			3,851
CDX-NAHY Series 33, 5 Year Index, 12/20/24*		5.00			Quarterly		3.40		USD		1,339		102,675			77,703			24,972
Federative Republic of Brazil, 4.25%, 1/07/25, 12/20/24*		1.00			Quarterly		1.21		USD		110		(1,013	)		(1,696	)		683
Ford Motor Company, 4.346%, 12/08/26, 6/20/24*		5.00			Quarterly		1.77		USD		40		5,769			5,214			555
iTraxx-Xover Series 32, 5 Year Index, 12/20/24*		5.00			Quarterly		2.40		EUR		80		11,509			11,659			(150	)
Republic of Indonesia, 5.875%, 3/13/20, 12/20/24*		1.00			Quarterly		0.76		USD		80		1,020			466			554
Republic of South Africa, 5.50%, 3/09/20, 12/20/24*		1.00			Quarterly		1.88		USD		80		(3,269	)		(3,023	)		(246	)
Republic of Turkey, 11.875%, 1/15/30, 12/20/24*		1.00			Quarterly		3.34		USD		116		(12,221	)		(14,483	)		2,262
												$	72,115		$	43,044		$	29,071

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	670		5/24/21	2.288%	3 Month LIBOR	Semi-Annual/ Quarterly	$	(11,063	)	$	—	$	(11,063	)
CAD	680		5/22/24	3 Month CDOR	1.985%	Semi-Annual/Semi-Annual		4,866			—		4,866

26    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	260		5/24/24	2.206%	3 Month LIBOR	Semi-Annual/ Quarterly	$	(9,710	)	$	—	$	(9,710	)
							$	(15,907	)	$	—	$	(15,907	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Credit Suisse InternationalCDX-CMBX.NA.A Series 6, 5/11/63*		2.00	%		Monthly		1.88	%		USD	360	$	1,508		$	(11,675	)	$	13,183
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	555		(47,240	)		(78,255	)		31,015
JPMorgan Securities, LLCCDX-CMBX.NA.BB Series 6, 5/11/63*		5.00			Monthly		11.58			USD	196		(30,150	)		(39,203	)		9,053
												$	(75,882	)	$	(129,133	)	$	53,251

* Termination date

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received		Payment Frequency		Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
Receive Total Return on Reference Obligation
Goldman Sachs International Markit iBoxx USD Contingent Convertible Liquid Developed Markets AT1 Index TRI		3 Month LIBOR		Maturity		USD	152		12/20/19	$	1,813

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2019
HSBC Bank USA†		1.91	%		—	$	471,215
HSBC Bank USA†		1.89	%		—		761,134
JPMorgan Chase Bank†		1.67	%		—		509,364
						$	1,741,713

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2019.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS(continued)

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

Overnight and Continuous

Up to 30 Days

31-90 Days

Greater than 90 Days

Total

Governments – Treasuries

$

1,741,713

$

– 0

–

$

– 0

–

$

– 0 –

$

1,741,713

** Contracts less than 500.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $4,017,988 or 25.9% of net assets.

(b) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(d) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.64% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
PMT Credit Risk Transfer Trust Series2019-3R, Class A
4.164%, 8/27/24		10/11/19	$	100,000	$	100,002		0.64	%

(e) Inverse interest only security.

(f) IO – Interest Only.

(g) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(h) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2019.

(i) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2019.

(j) This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

(k) Affiliated investments.

(l) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at(800) 227-4618.

(m) The rate shown represents the7-day yield as of period end.

28    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

Currency Abbreviations:

BRL – Brazilian Real

CAD – Canadian Dollar

EGP – Egyptian Pound

EUR – Euro

GBP – Great British Pound

IDR – Indonesian Rupiah

INR – Indian Rupee

MXN – Mexican Peso

PEN – Peruvian Sol

RUB – Russian Ruble

USD – United States Dollar

ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rates

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

TBA – To Be Announced

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    29

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value
Unaffiliated issuers (cost $20,582,858)	$	20,857,933
Affiliated issuers (cost $56,606)		56,606
Cash collateral due from broker		193,006
Foreign currencies, at value (cost $31,593)		31,908
Receivable for investment securities sold		1,675,855
Unaffiliated interest and dividends receivable		152,728
Receivable for newly entered credit default swaps		44,483
Receivable due from Adviser		27,565
Unrealized appreciation on forward currency exchange contracts		10,748
Deferred offering expense		7,032
Unrealized appreciation on total return swaps		1,813
Market value on credit default swaps (net premiums received $11,675)		1,508
Affiliated dividends receivable		29
Receivable for newly entered total return swaps		9
Total assets		23,061,223
Liabilities
Due to custodian		439
Payable for investment securities purchased		4,751,967
Payable for reverse repurchase agreements		1,741,713
Payable for securities sold short, at value (proceeds received $783,220)		782,843
Market value on credit default swaps (net premiums received $117,458)		77,390
Dividends payable		44,194
Payable for variation margin on centrally cleared swaps		22,679
Unrealized depreciation on forward currency exchange contracts		21,010
Payable for variation margin on futures		13,005
Directors’ fees payable		2,871
Transfer Agent fee payable		1,295
Payable for terminated total return swaps		219
Distribution fee payable		11
Accrued expenses and other liabilities		83,507
Total liabilities		7,543,143
Net Assets	$	15,518,080
Composition of Net Assets
Capital stock, at par	$	1,500
Additionalpaid-in capital		14,989,430
Distributable earnings		527,150
	$	15,518,080

See notes to financial statements.

30    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES(continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	10,345		1,000	$	10.35	*
C	$	10,344		1,000	$	10.34
Advisor	$	15,497,391		1,498,000	$	10.35

* The maximum offering price per share for Class A shares was $10.81 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    31

STATEMENT OF OPERATIONS

For the Period of December 12, 2018^(a)to October 31, 2019

Investment Income
Interest (net of foreign taxes withheld of $5,644)	$	513,274
Dividends—Affiliated issuers		2,463		$	515,737
Expenses
Advisory fee (see Note B)		47,426
Distribution fee—Class A		18
Distribution fee—Class C		90
Transfer agency—Class A		10
Transfer agency—Class C		15
Transfer agency—Advisor Class		15,770
Custodian		87,204
Administrative		72,558
Amortization of offering expenses		54,090
Audit and tax		46,003
Legal		37,974
Directors’ fees		18,990
Printing		15,000
Registration fees		647
Miscellaneous		3,587
Total expenses before interest expense		399,382
Interest expense		6,120
Total expenses		405,502
Less: expenses waived and reimbursed by the Adviser (see Note B)		(338,398	)
Net expenses					67,104
Net investment income					448,633
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(b)					265,967
Forward currency exchange contracts					(37,477	)
Futures					21,537
Swaps					137,206
Swaptions written					(108,890	)
Foreign currency transactions					(7,158	)
Net change in unrealized appreciation/depreciation of:
Investments(c)					273,784
Securities sold short					377
Forward currency exchange contracts					(10,262	)
Futures					12,865
Swaps					68,228
Foreign currency denominated assets and liabilities					312
Net gain on investment and foreign currency transactions					616,489
Net Increase in Net Assets from Operations				$	1,065,122

(a) Commencement of operations.

(b) Net of foreign capital gains taxes of $1,142.

(c) Net of increase in accrued foreign capital gains taxes of $1,291.

See notes to financial statements.

32    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	December 12, 2018(a) to October 31, 2019
Increase in Net Assets from Operations
Net investment income	$	448,633
Net realized gain on investment and foreign currency transactions		271,185
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		345,304
Net increase in net assets from operations		1,065,122
Distributions to Shareholders
Class A		(349	)
Class C		(277	)
Advisor Class		(546,416	)
Capital Stock Transactions
Net increase		15,000,000
Total increase		15,518,080
Net Assets
Beginning of period		– 0	–
End of period	$	15,518,080

(a) Commencement of operations.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    33

NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as anopen-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Short Duration Income Portfolio (the “Fund”), anon-diversified portfolio. The Fund commenced operations on December 12, 2018. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. As of October 31, 2019, AllianceBernstein L.P. (the “Adviser”) was the sole shareholder of Class A shares, Class C shares and Advisor Class shares. Class A shares are sold with afront-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

34    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    35

NOTES TO FINANCIAL STATEMENTS(continued)

or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded innon-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, andover-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

36    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    37

NOTES TO FINANCIAL STATEMENTS(continued)

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, includingnon-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments – Treasuries

$

– 0

–

$

5,909,491

$

– 0

–

$

5,909,491

Collateralized Mortgage Obligations

– 0

–

4,243,723

– 0

–

4,243,723

Mortgage Pass-Throughs

– 0

–

3,004,119

– 0

–

3,004,119

Commercial Mortgage-Backed Securities

– 0

–

1,968,764

– 0

–

1,968,764

Inflation-Linked Securities

– 0

–

1,574,052

– 0

–

1,574,052

Asset-Backed Securities

– 0

–

346,024

320,376

666,400

Governments – Sovereign Agencies

– 0

–

559,932

– 0

–

559,932

Emerging Markets – Treasuries

– 0

–

551,317

– 0

–

551,317

Corporates –Non-Investment Grade

– 0

–

294,317

– 0

–

294,317

Corporates – Investment Grade

– 0

–

257,603

– 0

–

257,603

Bank Loans

– 0

–

104,951

– 0

–

104,951

Quasi-Sovereigns

– 0

–

65,281

– 0

–

65,281

Emerging Markets – Sovereigns

– 0

–

50,887

– 0

–

50,887

Short-Term Investments:

U.S. Treasury Bills

– 0

–

793,130

– 0

–

793,130

Repurchase Agreements

784,980

– 0

–

– 0

–

784,980

Investment Companies

56,606

– 0

–

– 0

–

56,606

Governments – Treasuries

– 0

–

28,986

– 0

–

28,986

Liabilities:

Governments – Treasuries

– 0

–

(782,843

)

– 0

–

(782,843

)

Total Investments in Securities

841,586

18,969,734

320,376

20,131,696

38    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Other Financial Instruments(a):

Assets:

Futures

$

18,432

$

– 0

–

$

– 0

–

$

18,432

(b)

Forward Currency Exchange Contracts

– 0

–

10,748

– 0

–

10,748

Centrally Cleared Credit Default Swaps

– 0

–

133,127

– 0

–

133,127

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

4,866

– 0

–

4,866

(b)

Credit Default Swaps

– 0

–

1,508

– 0

–

1,508

Total Return Swaps

– 0

–

1,813

– 0

–

1,813

Liabilities:

Futures

(5,567

)

– 0

–

– 0

–

(5,567

)(b)

Forward Currency Exchange Contracts

– 0

–

(21,010

)

– 0

–

(21,010

)

Centrally Cleared Credit Default Swaps

– 0

–

(61,012

)

– 0

–

(61,012

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(20,773

)

– 0

–

(20,773

)(b)

Credit Default Swaps

– 0

–

(77,390

)

– 0

–

(77,390

)

Reverse Repurchase Agreements

(1,741,713

)

– 0

–

– 0

–

(1,741,713

)

Total

$

(887,262

)

$

18,941,611

$

320,376

$

18,374,725

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Asset-Backed Securities			Total
Balance as of 12/12/18(a)	$	– 0	–	$	– 0	–
Accrued discounts/(premiums)		(157	)		(157	)
Realized gain (loss)		– 0	–		– 0	–
Change in unrealized appreciation/depreciation		1,909			1,909
Purchases/Payups		318,624			318,624
Sales/Paydowns		– 0	–		– 0	–
Transfers in to Level 3		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		– 0	–
Balance as of 10/31/19	$	320,376		$	320,376
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	1,909		$	1,909

(a) Commencement of operations.

(b) The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    39

NOTES TO FINANCIAL STATEMENTS(continued)

As of October 31, 2019, all Level 3 securities were priced by third party vendors.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for the current tax year and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on theex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified

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cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on apro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on theex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

8. Repurchase Agreements

It is the Fund’s policy that its custodian or designated subcustodian take control of securities as collateral under repurchase agreements and to determine on a daily basis that the value of such securities are sufficient to cover the value of the repurchase agreements. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of collateral by the Fund may be delayed or limited.

9. Offering Expenses

Offering expenses of $61,122 were deferred and amortized on a straight line basis over a one year period starting from December 12, 2018 (commencement of operations).

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .35% of the first $2.5 billion of the Fund’s average daily net assets and .30% of the excess over $2.5 billion of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of

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any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .65%, 1.45% and .45% of daily average net assets for Class A, Class C, and Advisor Class shares, respectively. For the period ended October 31, 2019, such reimbursement/waivers amounted to $265,740. The Expense Caps may not be terminated by the Adviser before November 15, 2019. Any fees waived and expenses borne by the Adviser until one year after the date that shares of the Fund are first offered to the public are subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amounted to $265,740 for the period ended October 31, 2019. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the period ended October 31, 2019, the Adviser voluntarily agreed to waive such fees in the amount of $72,558.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services,sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $14,056 for the period ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retainedfront-end sales charges of $0 from the sale of Class A shares and received $0 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the period ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee

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of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the period ended October 31, 2019, such waiver amounted to $100.

A summary of the Fund’s transactions in AB mutual funds for the period ended October 31, 2019 is as follows:

Fund	Market  Value 12/12/18(a) (000)			Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	– 0	–	$	9,870	$	9,813	$	57	$	2

(a) Commencement of operations

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

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NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .20% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $0 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal period for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the period ended October 31, 2019 were as follows:

	Purchases		Sales		Securities Sold Short			Covers on Securities Sold Short
Investment securities (excluding U.S. government securities)	$	9,170,550	$	2,201,587	$	– 0	–	$	– 0	–
U.S. government securities		40,148,396		28,150,954		783,180			– 0	–

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

	Gross Unrealized						Net Unrealized Appreciation on Securities Sold Short			Net Unrealized Appreciation
Cost of Investments	Appreciation on Investments		Depreciation on Investments		Net Unrealized Appreciation on Investments
$  20,639,464	$	497,083	$	(220,414)	$	276,669	$	377	(a)	$	277,046

(a) Gross unrealized appreciation was $377 and gross unrealized depreciation was $(0), resulting in net unrealized appreciation of $377.

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1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon fornon-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

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During the period ended October 31, 2019, the Fund held futures for hedging andnon-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the period ended October 31, 2019, the Fund held forward currency exchange contracts for hedging andnon-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges andover-the-counter markets. Among other things, the Fund may use options transactions fornon-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

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When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the period ended October 31, 2019, the Fund held purchased swaptions for hedging andnon-hedging purposes. During the period ended October 31, 2019, the Fund held written swaptions for hedging andnon-hedging purposes.

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• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps fornon-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions

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in futures contracts. Centralized clearing will be required for additional categories of swaps on aphased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less thannon-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

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During the period ended October 31, 2019, the Fund held interest rate swaps for hedging andnon-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent

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a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the period ended October 31, 2019, the Fund held credit default swaps for hedging andnon-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the period ended October 31, 2019, the Fund held total return swaps for hedging andnon-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment(close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

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During the period ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	18,432	*	Receivable/Payable for variation margin on futures	$	5,567	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		32,877	*	Receivable/Payable for variation margin on centrally cleared swaps		3,806	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		4,866	*	Receivable/Payable for variation margin on centrally cleared swaps		20,773	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		10,748		Unrealized depreciation on forward currency exchange contracts		21,010
Credit contracts	Market value on credit default swaps		1,508		Market value on credit default swaps		77,390
Credit contracts	Unrealized appreciation on total return swaps		1,813
Total		$	70,244			$	128,546

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	21,537		$	12,865
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(37,477	)		(10,262	)

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	96,380		$	– 0	–
Credit contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(555	)		– 0	–
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		(109,850	)		– 0	–
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		960			– 0	–
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		8,245			(15,907	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		128,961			84,135
Total		$	108,201		$	70,831

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The following table represents the average monthly volume of the Fund’s derivative transactions during the period ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	424,766	(a)
Average notional amount of sale contracts	$	2,571,191	(b)
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	1,613,419	(c)
Average principal amount of sale contracts	$	2,878,883	(c)
Purchased Swaptions:
Average notional amount	$	1,270,000	(d)
Swaptions Written:
Average notional amount	$	560,000	(d)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	1,442,982	(e)
Credit Default Swaps:
Average notional amount of sale contracts	$	1,212,182	(c)
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	405,980	(a)
Average notional amount of sale contracts	$	1,854,671	(c)
Total Return Swaps:
Average notional amount	$	358,183	(f)

(a) Positions were open for four months during the period.

(b) Positions were open for ten months during the period.

(c) Positions were open for eleven months during the period.

(d) Positions were open for two months during the period.

(e) Positions were open for six months during the period.

(f) Positions were open for seven months during the period.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citibank, NA	$	376	$	– 0	–	$	– 0	–	$	– 0	–	$	376
Credit Suisse International		1,508		(1,508	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		1,813		(1,813	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		9,514		(4,899	)		– 0	–		– 0	–		4,615
UBS AG		858		(669	)		– 0	–		– 0	–		189
Total	$	14,069	$	(8,889	)	$	– 0	–	$	– 0	–	$	5,180	^

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NOTES TO FINANCIAL STATEMENTS(continued)

Counterparty

Derivative Liabilities Subject to a MA

Derivatives Available for Offset

Cash Collateral Pledged*

Security Collateral Pledged*

Net Amount  of Derivative Liabilities

Credit Suisse International

$

47,240

$

(1,508

)

$

– 0

–

$

– 0

–

$

45,732

Deutsche Bank AG

4,555

– 0

–

– 0

–

– 0

–

4,555

Goldman Sachs Bank USA/Goldman Sachs International

4,201

(1,813

)

– 0

–

– 0

–

2,388

JPMorgan Chase Bank, NA/JPMorgan Securities, LLC

36,836

– 0

–

– 0

–

– 0

–

36,836

State Street Bank & Trust Co.

4,899

(4,899

)

– 0

–

– 0

–

– 0

–

UBS AG

669

(669

)

– 0

–

– 0

–

– 0

–

Total

$

98,400

$

(8,889

)

$

– 0

–

$

– 0

–

$

89,511

^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest innon-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. Short Sales

The Fund may sell securities short. A short sale is a transaction in which the Fund sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Fund is obligated to replace the borrowed securities at their market price at the time of settlement. The Fund’s obligation to replace the securities borrowed in connection with a short sale will be fully secured by collateral deposited with the broker. The Fund is liable to the buyer for any dividends/interest payable on securities while those securities are in a short position. These dividends/interest are recorded as an expense of the Fund. Short sales by the Fund involve certain risks and special considerations. Possible losses from

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NOTES TO FINANCIAL STATEMENTS(continued)

short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.

4. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the period ended October 31, 2019, the Fund earned drop income of $587 which is included in interest income in the accompanying statement of operations.

5. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as

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NOTES TO FINANCIAL STATEMENTS(continued)

such the return of such excess collateral may be delayed or denied. For the period ended October 31, 2019, the average amount of reverse repurchase agreements outstanding was $228,705 and the daily weighted average interest rate was 2.13%. At October 31, 2019, the Fund had reverse repurchase agreements outstanding in the amount of $1,741,713 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2019:

Counterparty	RVP Liabilities Subject to a  MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Bank USA	$	1,232,349	$	(1,220,593	)	$	11,756
JPMorgan Chase Bank		509,364		(509,364	)		– 0	–
Total	$	1,741,713	$	(1,729,957	)	$	11,756

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

6. Loan Participations and Assignments

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”) or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). A loan is often administered by a bank or other financial institution (the “Lender”) that acts as agent for all holders. The agent administers the term of the loan as specified in the loan agreement. When investing in Participations, the Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. In addition, when investing in Participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender and only upon receipt of payments by the Lender from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the Lender. When the Fund purchases Assignments from Lenders, it will typically acquire direct rights against the borrower on the loan. These loans may include participations in “bridge loans”, which are loans taken out by borrowers for a short period (typically less than six months) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high-yield bonds issued for the purpose of acquisitions. The Fund may also participate in unfunded loan commitments, which are contractual obligations for investing in future Participations, and may receive a commitment fee based on the amount of the commitment. Under these arrangements, the Fund may receive a fixed

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NOTES TO FINANCIAL STATEMENTS(continued)

rate commitment fee and, if and to the extent the borrower borrows under the facility, the Fund may receive an additional funding fee.

Unfunded loan commitments and funded loans are marked to market daily.

During the period ended October 31, 2019, the Fund had no commitments outstanding and did not receive commitment fees.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares		Amount
	December 12, 2018(a) October 31, 2019		December 12, 2018(a) October 31, 2019
Class A
Shares sold		1,000	$	10,000
Net increase		1,000	$	10,000
Class C
Shares sold		1,000	$	10,000
Net increase		1,000	$	10,000
Advisor Class
Shares sold		1,498,000	$	14,980,000
Net increase		1,498,000	$	14,980,000

(a) Commencement of operations.

NOTE F

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, negative perceptions of the junk bond market generally and less secondary market liquidity.

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NOTES TO FINANCIAL STATEMENTS(continued)

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign(Non-U.S.) Risk—Investments in securities ofnon-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade or dispose of due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in

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NOTES TO FINANCIAL STATEMENTS(continued)

higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Liquidity Risk—Liquidity risk occurs when certain investments become difficult to purchase or sell. Difficulty in selling less liquid securities may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of liquidity risk may include low trading volumes, large positions and heavy redemptions of fund shares. Over recent years, liquidity risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Liquidity risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk—The Fund may have more risk because it is“non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value, or NAV.

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered bynon-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working

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NOTES TO FINANCIAL STATEMENTS(continued)

groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number ofopen-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the period ended October 31, 2019.

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NOTES TO FINANCIAL STATEMENTS(continued)

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the period ended October 31, 2019 was as follows:

	2019
Distributions paid from:
Ordinary income	$	547,042
Total taxable distributions paid	$	547,042

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	294,461
Undistributed capital gains		14,030
Other losses		(12,072	)(a)
Unrealized appreciation/(depreciation)		276,067	(b)
Total accumulated earnings/(deficit)	$	572,486	(c)

(a) As of October 31, 2019, the cumulative deferred loss on straddles was $12,072.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments and the tax treatment of swaps.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the Fund did not have any capital loss carryforwards.

During the current fiscal period, permanent differences primarily due to the tax treatment of offering costs resulted in a net increase in distributable earnings and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU2017-08 is effective for fiscal years, and interim

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NOTES TO FINANCIAL STATEMENTS(continued)

periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    63

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.00
Income From Investment Operations
Net investment income(b)(c)		.28
Net realized and unrealized gain on investment and foreign currency transactions		.42
Net increase in net asset value from operations		.70
Less: Dividends
Dividends from net investment income		(.35	)
Net asset value, end of period		$  10.35
Total Return
Total investment return based on net asset value(d)		7.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)^		.70	%
Expenses, before waivers/reimbursements(e)^		3.18	%
Net investment income(c)^		3.14	%
Portfolio turnover rate**		178	%
Portfolio turnover rate (including securities sold short)**		181	%

See footnote summary on page 66.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.00
Income From Investment Operations
Net investment income(b)(c)		.21
Net realized and unrealized gain on investment and foreign currency transactions		.41
Net increase in net asset value from operations		.62
Less: Dividends
Dividends from net investment income		(.28	)
Net asset value, end of period		$  10.34
Total Return
Total investment return based on net asset value(d)		6.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)^		1.49	%
Expenses, before waivers/reimbursements(e)^		4.02	%
Net investment income(c)^		2.34	%
Portfolio turnover rate**		178	%
Portfolio turnover rate (including securities sold short)**		181	%

See footnote summary on page 66.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.00
Income From Investment Operations
Net investment income(b)(c)		.30
Net realized and unrealized gain on investment and foreign currency transactions		.41
Net increase in net asset value from operations		.71
Less: Dividends
Dividends from net investment income		(.36	)
Net asset value, end of period		$  10.35
Total Return
Total investment return based on net asset value(d)		7.25	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$15,498
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)^		.49	%
Expenses, before waivers/reimbursements(e)^		2.99	%
Net investment income(c)^		3.31	%
Portfolio turnover rate**		178	%
Portfolio turnover rate (including securities sold short)**		181	%

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Net of expenses waived by the Adviser.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(e) The expense ratios presented below exclude interest expense:

	December 12, 2018(a) to October 31, 2019
Class A
Net of waivers/reimbursements		.65	%
Before waivers/reimbursements		3.13	%
Class C
Net of waivers/reimbursements		1.45	%
Before waivers/reimbursements		3.97	%
Advisor Class
Net of waivers/reimbursements		.45	%
Before waivers/reimbursements		2.95	%

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of

AB Short Duration Income Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Short Duration Income Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statements of operations and changes in net assets and the financial highlights for the period from December 12, 2018 (commencement of operations) through October 31, 2019 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations, the changes in its net assets and its financial highlights for the period from December 12, 2018 (commencement of operations) through October 31, 2019, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM(continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 27, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable period ended October 31, 2019. For foreign shareholders, 62.31% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    69

BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾,Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Douglas J. Peebles⁽²⁾,Vice President Matthew S. Sheridan⁽²⁾,Vice President Emilie D. Wrapp,Secretary Michael B. Reyes,Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller
Vincent S. Noto,
Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Short Duration Income investment team. Messrs. DiMaggio, Distenfeld, Peebles and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,+ 59 (2018)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.# Chairman of the Board 78 (2018)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007
Michael J. Downey,# 75 (2018)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,# 71 (2018)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,# 64 (2018)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company andnon-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,# 67 (2018)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,# 80 (2018)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of variousnon-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept.—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

+ Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

# Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is alsoco-Head of Fixed-Income.
Gershon M. Distenfeld 43	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is alsoco-Head of Fixed-Income.
Douglas J. Peebles 54	Senior Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer of Fixed Income.
Matthew S. Sheridan 44	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser**, since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement and New Advisory Agreements

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the Company’s Advisory Agreement with the Adviser in respect of AB Short Duration Income Portfolio (the “Fund”) for an initialtwo-year period at a meeting held on July31-August 2, 2018 (the “Meeting”), as well as new Advisory Agreements with the same terms (together with the Advisory Agreement, the “Advisory Agreements”) in connection with the plans of AXA S.A. to sell its remaining interest in AXA Equitable Holdings, Inc. (the indirect holder of a majority of the partnership interests in the Adviser and the indirect parent of AllianceBernstein Corporation, the general partner of the Adviser), subject to market conditions, in one or more transactions that may be deemed to involve an “assignment” of one or more advisory agreements between the Adviser and the Company in respect of the Fund.

Prior to approval of the Advisory Agreements, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed Advisory Agreements with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed approval in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services to be provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the AB Funds.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the proposed advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the

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overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreements, including the proposed advisory fee, were fair and reasonable in light of the services to be performed, expenses to be incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services to be Provided

The directors considered the scope and quality of services to be provided by the Adviser under the Advisory Agreements, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the AB Funds. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreements provide that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements will be subject to the directors’ approval on a quarterly basis and, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreements. The directors noted that the methodology to be used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Company’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services to be provided to the Fund under the Advisory Agreements.

Costs of Services to be Provided and Profitability

Because the Fund had not yet commenced operations, the directors were unable to consider historical information about the profitability of the Fund. However, the Adviser agreed to provide the directors with profitability information in connection with future proposed continuances of the Advisory Agreements. They also considered the costs to be borne by the Adviser in providing services to the Fund and that the Fund was unlikely to be profitable to the Adviser unless it achieves a material level of net assets.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their proposed relationships with the Fund, including, but not limited to, benefits relating to12b-1 fees and sales charges to be received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees to be paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s future profitability

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would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

Since the Fund had not yet commenced operations, no performance or other historical information for the Fund was available. Based on the Adviser’s written and oral presentations regarding the proposed management of the Fund and their general knowledge and confidence in the Adviser’s expertise in managing mutual funds, the directors concluded that they were satisfied that the Adviser was capable of providing high quality Fund management services to the Fund.

Advisory Fees and Other Expenses

The directors considered the proposed advisory fee rate payable by the Fund to the Adviser and information prepared by an independent service provider (the “15(c) service provider”), concerning advisory fee rates payable by other funds in the same category as the Fund, based on the Fund’s projected net assets of $250 million. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The directors considered the Fund’s proposed contractual effective advisory fee rate against a peer group median.

The directors recognized that the Adviser’s total compensation from the Fund pursuant to the Advisory Agreements would be increased by amounts paid pursuant to the expense reimbursement provision in the Advisory Agreements, and that the impact of such expense reimbursement would depend on the size of the Fund and the extent to which the Adviser requests reimbursements pursuant to this provision.

The directors also considered the Adviser’s fee schedule for other clients pursuing a similar investment style. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s proposed fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also discussed these matters with their independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it will provide to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management,

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research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts. The directors concluded, based on the Adviser’s explanation of how it may use ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the proposed advisory fee would be for services in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

The directors also considered the projected total expense ratio of the Class A shares of the Fund in comparison to a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”) selected by the 15(c) service provider. The directors also considered the Adviser’s proposed expense cap for the Fund for a one year period. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view the projected expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s projected expense ratio was acceptable.

Economies of Scale

The directors noted that the proposed advisory fee schedule for the Fund contains a breakpoint that reduces the fee rate on assets above a specified level. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received

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from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed the breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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AB SHORT DURATION INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SDI-0151-1019                

OCT    ^10.31.19

ANNUAL REPORT

AB TAX-AWARE FIXED INCOME PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured• May Lose Value• Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Tax-Aware Fixed Income Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

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Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    1

ANNUAL REPORT

December 12, 2019

This report provides management’s discussion of fund performance for ABTax-Aware Fixed Income Portfolio for the annual reporting period ended October 31, 2019.

The investment objective of the Fund is to seek to maximizeafter-tax return and income.

NAV RETURNS AS OF OCTOBER 31, 2019(unaudited)

	6 Months		12 Months
ABTAX-AWARE FIXED INCOME PORTFOLIO
Class A Shares		3.19%		9.15%
Class C Shares		2.80%		8.33%
Advisor Class Shares1		3.32%		9.42%
Bloomberg Barclays Municipal Bond Index		3.54%		9.42%

1 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays Municipal Bond Index, for thesix- and12-month periods ended October 31, 2019.

For the12-month period, all share classes except Advisor Class underperformed the benchmark; during thesix-month period, all share classes underperformed the benchmark, before sales charges. For both periods, being modestly short-duration detracted, relative to the benchmark, as interest rates fell and being overweight taxable duration (through interest-rate swaps and individual bonds) detracted as well. Exposure to consumer price index (“CPI”) swaps contributed as interest rates fell more than breakeven inflation rates over the 12-month period. Security selection within the state general obligation bond sector contributed, as did an overweight to commercial mortgage-backed securities. During the12-month period, yield-curve positioning insix- to seven-year duration municipals detracted. For thesix-month period, yield-curve positioning in over10-year duration municipals detracted.

The Fund utilized derivatives in the form of CPI swaps for hedging purposes, which added to absolute performance for the 12-month period and had no material impact for the six-month period. Interest rate swaps were utilized for hedging purposes and had no material impact on either period. Credit default swaps were utilized for hedging and investment purposes and added to performance over both periods.

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MARKET REVIEW AND INVESTMENT STRATEGY

Falling interest rates and a flattening of the yield curve were prominent themes throughout the12-month period ended October 31, 2019. The yield for the10-year US Treasury fell almost 1.5% over the period and the US Federal Reserve (“the Fed”) cut interest rates three times in 2019, taking the target for the Federal Funds rate down by 0.75% this year. The newly imposed limit on state and local tax deductions resulted in increased demand for municipals and municipal supply continues to be light. Lipper reported that municipal mutual funds had $75 billion of inflows through October 30, while the Fed reported that the outstanding volume of municipal bonds shrunk by $17 billion through the second quarter of 2019.

Long-maturity and high-yield municipal bonds were the best performers during the12-month period, reflective of investors’ demand for additional income in the recentlow-yield environment. The Fund maintained a slightly defensive interest-rate stance as the historically flat yield curve did not adequately compensate investor risk for taking additional long exposure. Given the fundamental strength of municipalities, the Fund maintained an overweight tomid-grade municipals.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek investments in attractiveafter-tax returns such as municipal and taxable fixed-income and selective below-investment-grade bonds. The Team seeks to manage interest-rate exposure by focusing on lower-rated municipal and corporate bonds.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have beenpre-refunded or escrowed to maturity were 2.54% and 0.00%, respectively.

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INVESTMENT POLICIES

The Fund pursues its objective by investing principally in a national portfolio of both municipal and taxable fixed-income securities. The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund also invests, under normal circumstances, at least 65% of its total assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers. The income earned and distributed to shareholders onnon-municipal securities would not be exempt from federal income tax. The Fund may invest in fixed-income securities rated below investment-grade (commonly known as “junk bonds”), although such securities are not expected to be the Fund’s primary focus.

The Adviser selects securities for the Fund based on a variety of factors, including credit quality, maturity, diversification benefits, and the relative expectedafter-tax returns of taxable and municipal securities (considering federal tax rates and without regard to state and local income taxes). As the objective is to increase theafter-tax return of the Fund, an investor in the Fund may incur a tax liability that will generally be greater than the same investor would have in a fund investing exclusively in municipal securities, and that will be higher if the investor is in a higher tax bracket. In addition, the tax implications of the Fund’s trading activity, such as realizing taxable gains, are considered in making purchase and sale decisions for the Fund. The Fund may invest in fixed-income securities of any maturity from short- to long-term.

The Fund may also invest in forward commitments,zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities.

The Fund may use derivatives, such as swaps, options, futures contracts and forwards, to achieve its investment strategies. For example, the Fund may enter into tender option bonds and credit default and interest rate swaps relating to municipal and taxable fixed-income securities or securities indices. Derivatives may provide more efficient and economical exposure to fixed-income securities markets than direct investments.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays Municipal Bond Index represents the performance of the long-termtax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

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DISCLOSURES AND RISKS(continued)

The Fund may invest in the municipal securities of Puerto Rico or other US territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other US issuers of municipal securities. Like many US states and municipalities, Puerto Rico experienced a significant downturn during the recent recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. Municipal securities issued by many Puerto Rico issuers have extremely low credit ratings and are on “negative watch” by credit rating organizations. Several Puerto Rico issuers are in default on principal and interest payments. These defaults cast doubts on the ability of Puerto Rico and its government agencies to make future payments. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility. In addition, Puerto Rico’s difficulties have resulted in increased volatility in portions of the broader municipal securities market from time to time, and this may recur in the future.

Tax Risk: From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value (“NAV”) could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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DISCLOSURES AND RISKS(continued)

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

Leverage Risk: To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives may also be subject to counterparty risk to a greater degree than more traditional investments.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These and other risks are more fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recentmonth-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be

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DISCLOSURES AND RISKS(continued)

lower. SEC returns and the Fund’s returns shown in the line graphs reflect the applicable sales charges for each share class: a 3% maximumfront-end sales charge for Class A shares and a 1%1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to their different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND(unaudited)

12/11/2013¹ TO 10/31/2019

This chart illustrates the total value of an assumed $10,000 investment in ABTax-Aware Fixed Income Portfolio Class A shares (from 12/11/2013¹ to 10/31/2019) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/11/2013.

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HISTORICAL PERFORMANCE(continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019(unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		9.15%		5.91%
5 Years		3.35%		2.71%
Since Inception1		3.93%		3.40%
CLASS C SHARES
1 Year		8.33%		7.33%
5 Years		2.56%		2.56%
Since Inception1		3.17%		3.17%
ADVISOR CLASS SHARES2
1 Year		9.42%		9.42%
5 Years		3.59%		3.59%
Since Inception1		4.21%		4.21%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.27%, 2.02% and 1.02% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs to 0.75%, 1.50% and 0.50% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2020 and may be extended by the Adviser for additionalone-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 Inception date: 12/11/2013.

2 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

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HISTORICAL PERFORMANCE(continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDARQUARTER-END

SEPTEMBER 30, 2019(unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		4.87%
5 Years		2.81%
Since Inception1		3.44%
CLASS C SHARES
1 Year		6.34%
5 Years		2.66%
Since Inception1		3.22%
ADVISOR CLASS SHARES2
1 Year		8.41%
5 Years		3.69%
Since Inception1		4.26%

1 Inception date: 12/11/2013.

2 Please note that this share class is for investors purchasing shares through accounts established under certainfee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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EXPENSE EXAMPLE(continued)

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,031.90	$	3.89		0.76	%
Hypothetical**	$	1,000	$	1,021.37	$	3.87		0.76	%
Class C
Actual	$	1,000	$	1,028.00	$	7.72		1.51	%
Hypothetical**	$	1,000	$	1,017.59	$	7.68		1.51	%
Advisor Class
Actual	$	1,000	$	1,033.20	$	2.61		0.51	%
Hypothetical**	$	1,000	$	1,022.63	$	2.60		0.51	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019(unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $80.6

1 All data are as of October 31, 2019. The Fund’s quality rating and state breakdowns are expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, thePre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includesnon-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness ofnon-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

2 “Other” represents less than 1.9% in 21 different states, American Samoa, District of Columbia and Guam.

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PORTFOLIO OF INVESTMENTS

October 31, 2019

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 87.7%
Long-Term Municipal Bonds – 87.7%
Alabama – 2.0%
County of Jefferson AL Sewer Revenue Series 2013D 6.00%, 10/01/42	$	110	$	130,403
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019A 5.25%, 5/01/44(a)		595		684,702
Water Works Board of the City of Birmingham (The) Series 2016B 5.00%, 1/01/33		680		817,455
				1,632,560
American Samoa – 0.2%
American Samoa Economic Development Authority (Territory of American Samoa) 7.125%, 9/01/38(a)		135		151,633
Arizona – 3.7%
Arizona Industrial Development Authority Series 20192 – Class A 3.625%, 5/20/33		305		337,275
City of Phoenix Civic Improvement Corp. (Phoenix Sky Harbor International Airport) Series 2018 5.00%, 7/01/48		2,000		2,386,620
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona) Series 2014 5.00%, 7/01/44		100		108,116
Salt Verde Financial Corp. (Citigroup, Inc.) Series 2007 5.00%, 12/01/37		100		134,454
				2,966,465
California – 9.5%
Alameda Corridor Transportation Authority Series 2016B 5.00%, 10/01/37		175		204,145
California Health Facilities Financing Authority (Sutter Health Obligated Group) Series 2018A 5.00%, 11/15/38		850		1,042,542

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
California Municipal Finance Authority (CHF-Riverside II LLC) 5.00%, 5/15/40	$	250	$	303,705
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/45(a)		250		266,377
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2018A 5.50%, 12/01/58(a)		250		293,155
Golden State Tobacco Securitization Corp. Series 2018A 5.00%, 6/01/47		1,305		1,341,423
M-S-R Energy Authority (Citigroup, Inc.) Series 2009B 6.50%, 11/01/39		1,000		1,565,370
San Francisco City & County Airport Comm (San Francisco Intl Airport) Series 2017D 5.00%, 5/01/25		2,250		2,666,160
				7,682,877
Colorado – 1.6%
City & County of Denver CO (United Airlines, Inc.) Series 2017 5.00%, 10/01/32		615		672,595
Colorado Health Facilities Authority Series 2013 5.25%, 1/01/40 (Pre-refunded/ETM)		170		190,822
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019A 5.00%, 8/01/44		175		206,883
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015B 5.00%, 9/01/30		200		232,850
				1,303,150
Connecticut – 2.5%
City of New Haven CT Series 2018A 5.50%, 8/01/38		615		733,431

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
State of Connecticut Series 2015F 5.00%, 11/15/26	$	1,000	$	1,189,110
Series 2018A 3.75%, 9/15/20		100		101,533
				2,024,074
District of Columbia – 1.1%
District of Columbia (Freedom Forum, Inc. (The)) NATL 5.00%, 8/01/38(b)		375		375,000
5.15%, 8/01/38(b)		375		375,000
District of Columbia (Friendship Public Charter School, Inc.) Series 2016A 5.00%, 6/01/41		100		112,986
				862,986
Florida – 6.1%
Bexley Community Development District Series 2016 4.875%, 5/01/47		100		103,915
Brevard County School District (Brevard County School District COP) Series 2015B 5.00%, 7/01/25		290		347,029
Capital Trust Agency, Inc. (Provision Cares Proton Therapy Center – Orlando) Series 2018A 7.50%, 6/01/48(a)		110		120,149
Citizens Property Insurance Corp. Series 2015A 5.00%, 6/01/20-6/01/22		560		584,579
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015A 5.00%, 6/01/28		780		920,306
County of Miami-Dade FL Aviation Revenue Series 2015A 5.00%, 10/01/31		265		308,672
Florida Development Finance Corp. (Virgin Trains USA Florida LLC) 6.375%, 1/01/49(a)		495		467,775
North Broward Hospital District Series 2017B 5.00%, 1/01/37-1/01/48		270		306,481

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Pinellas County Industrial Development Authority 5.00%, 7/01/39	$	505	$	585,911
School District of Broward County/FL Series 2015 5.00%, 7/01/25		365		438,540
Town of Davie FL (Nova Southeastern University, Inc.) Series 2018 5.00%, 4/01/48		655		762,355
				4,945,712
Georgia – 1.6%
City of Atlanta GA Department of Aviation (Hartsfield Jackson Atlanta Intl Airport) Series 2012A 5.00%, 1/01/31		310		333,979
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018A 4.00%, 4/01/48		760		821,598
Municipal Electric Authority of Georgia 5.00%, 1/01/38		100		118,482
				1,274,059
Guam – 0.1%
Territory of Guam 5.00%, 11/15/31		95		111,173
Illinois – 7.3%
Chicago Board of Education Series 2010 6.319%, 11/01/29		325		362,996
Series 2012A 5.00%, 12/01/42		240		252,852
Series 2019A 5.00%, 12/01/29-12/01/30		200		236,430
Series 2019B 5.00%, 12/01/33		100		116,685
Chicago O’Hare International Airport Series 2015C 5.00%, 1/01/34		335		381,206
Series 2017B 5.00%, 1/01/35		725		865,962
Illinois Finance Authority (Park Place of Elmhurst Obligated Group) Series 2016A 6.33%, 5/15/48		85		75,036
Series 2016C 2.00%, 5/15/55(c)(d)(e)		15		453

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (Plymouth Place, Inc.) Series 2015 5.25%, 5/15/50	$	100	$	106,503
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015C 5.00%, 8/15/35		250		283,892
Illinois Municipal Electric Agency Series 2015A 5.00%, 2/01/22		465		502,312
Metropolitan Pier & Exposition Authority Series 2015B 5.00%, 12/15/45		600		652,404
State of Illinois Series 2013 5.50%, 7/01/25		270		298,185
Series 2016 5.00%, 2/01/24		375		412,725
Series 2017D 5.00%, 11/01/26		130		147,727
Series 2018A 5.00%, 10/01/27		1,000		1,152,870
				5,848,238
Indiana – 1.0%
Indiana Finance Authority (Bethany Circle of King’s Daughters’ of Madison Indiana, Inc. (The)) Series 2010 5.50%, 8/15/40		160		164,632
Indiana Finance Authority (Marquette Manor) Series 2015A 5.00%, 3/01/30		190		210,723
Indiana Finance Authority (Ohio River Bridges) Series 2013A 5.00%, 7/01/40		100		109,153
Indiana Finance Authority (RES Polyflow Indiana LLC) 7.00%, 3/01/39(a)		350		353,049
				837,557
Iowa – 0.4%
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018A 5.00%, 5/15/48		325		361,790

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Kentucky – 1.3%
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017B 5.00%, 8/15/37	$	175	$	203,536
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/42		65		67,998
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017A 5.00%, 6/01/37		425		487,356
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/33		225		266,096
				1,024,986
Louisiana – 3.4%
City of New Orleans LA Water System Revenue Series 2014 5.00%, 12/01/34		100		113,474
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/36		675		809,352
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014A 7.50%, 7/01/23(d)(f)		250		2
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) 5.00%, 7/01/59		1,335		1,550,189
New Orleans Aviation Board Series 2017B 5.00%, 1/01/43		215		247,848
				2,720,865

20    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Maine – 0.4%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 1/01/25(a)	$	100	$	113,021
Maine Health & Higher Educational Facilities Authority (MaineGeneral Health Obligated Group) Series 2011 7.50%, 7/01/32		165		180,038
				293,059
Maryland – 1.2%
City of Baltimore MD (Baltimore Hotel Corp.) Series 2017 5.00%, 9/01/34		120		139,147
City of Baltimore MD (East Baltimore Research Park Project) Series 2017A 5.00%, 9/01/38		150		166,035
Maryland Economic Development Corp. (Air Cargo Obligated Group) 4.00%, 7/01/44		600		653,964
				959,146
Massachusetts – 1.4%
Massachusetts Development Finance Agency (Merrimack College) Series 2014 5.125%, 7/01/44		620		680,419
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017 8.00%, 12/01/22(g)		325		288,012
Series 2017A 7.75%, 12/01/44(a)		140		138,612
				1,107,043
Michigan – 0.6%
City of Detroit MI 5.00%, 4/01/38		75		83,017
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012A 5.00%, 7/01/22		115		125,532

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Michigan Finance Authority (Trinity Health Corp.) Series 2015 5.00%, 12/01/32	$	235	$	254,817
				463,366
Minnesota – 0.3%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL 2.65%, 8/01/28(b)		150		150,000
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) 5.00%, 8/01/49		105		115,496
				265,496
Missouri – 0.2%
Kansas City Industrial Development Authority 5.00%, 7/01/40(a)		190		192,814
Nebraska – 0.1%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2012 5.00%, 9/01/42		100		108,571
Nevada – 1.8%
Clark County School District Series 2017C 5.00%, 6/15/36		1,300		1,426,464
New Hampshire – 0.2%
New Hampshire Health and Education Facilities Authority Act (Southern New Hampshire University) Series 2012 5.00%, 1/01/42		115		122,403
New Jersey – 5.4%
New Jersey Economic Development Authority Series 2013NN 5.00%, 3/01/20 (Pre-refunded/ETM)		30		30,374
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2013 5.00%, 3/01/20		260		262,941

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Series 2014P 5.00%, 6/15/29	$	200	$	223,326
New Jersey Economic Development Authority (United Airlines, Inc.) Series 1999 5.25%, 9/15/29		85		92,889
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017A 5.00%, 7/01/36		280		336,272
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 6/15/29		550		645,056
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2011B 5.00%, 6/15/20		240		245,124
Series 2018A 5.00%, 12/15/35		340		395,604
New Jersey Turnpike Authority Series 2013A 5.00%, 1/01/32 (Pre-refunded/ETM)		315		346,919
Series 2017B 5.00%, 1/01/32		540		667,472
Tobacco Settlement Financing Corp. Series 2018B 5.00%, 6/01/46		1,045		1,150,461
				4,396,438
New Mexico – 0.2%
City of Farmington NM (Southern California Edison Co.) 1.875%, 4/01/29		145		145,104
New York – 4.0%
Metropolitan Transportation Authority Series 2013A 5.00%, 11/15/29 (Pre-refunded/ETM)		315		358,835
New York City Transitional Finance Authority Building Aid Revenue (New York City Transitional Finance Authority Building Aid Revenue State Lease) Series 2018S 5.00%, 7/15/32		865		1,086,007

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
New York State Dormitory Authority (Orange Regional Medical Center Obligated Group) Series 2017 5.00%, 12/01/34(a)	$	200	$	235,354
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014A 5.00%, 2/15/28		425		490,514
New York State Dormitory Authority (Trustees of Columbia University IN the City of New York (The)) Series 2016A 5.00%, 10/01/46		250		383,828
Series 2018A 5.00%, 10/01/48		100		155,755
New York State Thruway Authority (New York State Thruway Authority Ded Tax) Series 2012A 5.00%, 4/01/26		365		398,489
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 9/15/37		120		122,575
				3,231,357
North Carolina – 0.7%
North Carolina Turnpike Authority Series 2017 5.00%, 1/01/32		500		596,740
North Dakota – 0.1%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2018 5.375%, 9/15/38(a)		100		96,933
Ohio – 3.8%
Buckeye Tobacco Settlement Financing Authority Zero Coupon, 6/01/52		1,000		43,230
Series 2007A-2 5.875%, 6/01/47		235		236,509
City of Akron OH (City of Akron OH Income Tax) Series 2012A 5.00%, 12/01/31		445		484,525

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
City of Chillicothe/OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/47	$	175	$	206,061
County of Cuyahoga/OH (County of Cuyahoga OH Lease) Series 2014 5.00%, 12/01/28		365		414,863
County of Cuyahoga/OH (MetroHealth System (The)) Series 2017 5.00%, 2/15/42		205		231,738
Dayton-Montgomery County Port Authority (StoryPoint Troy Project) Series 20151 7.00%, 1/15/40		100		102,074
Ohio Air Quality Development Authority (FirstEnergy Generation LLC) Series 2009C 5.625%, 6/01/19(c)(h)		100		103,000
Series 2009D 4.25%, 8/01/29		145		155,512
Ohio Air Quality Development Authority (FirstEnergy Nuclear Generation LLC) Series 2009A 4.375%, 6/01/33		100		107,250
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) 3.25%, 9/01/29		580		597,005
Ohio Air Quality Development Authority (Pratt Paper OH, Inc.) Series 2017 4.25%, 1/15/38(a)		185		199,456
Ohio Water Development Authority Water Pollution Control Loan Fund (FirstEnergy Nuclear Generation LLC) Series 2016A 4.375%, 6/01/33		140		150,150
				3,031,373
Pennsylvania – 8.1%
Beaver County Industrial Development Authority (FirstEnergy Nuclear Generation LLC) Series 2016A 4.375%, 1/01/35		130		139,425
City of Philadelphia PA Series 2017 5.00%, 8/01/31		1,000		1,218,180

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Commonwealth of Pennsylvania Series 2017 5.00%, 1/01/26	$	2,000	$	2,413,320
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 7/01/35		100		108,672
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019A 3.25%, 8/01/39(a)		510		507,037
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/38		100		113,895
Pennsylvania Turnpike Commission Series 2017B 5.00%, 6/01/36		200		237,686
Philadelphia Authority for Industrial Development (Evangelical Services for the Aging Obligated Group) Series 2017A 5.00%, 7/01/37		150		167,880
School District of Philadelphia (The) Series 2019A 5.00%, 9/01/44(i)		1,350		1,613,155
				6,519,250
Puerto Rico – 5.6%
Commonwealth of Puerto Rico Series 2006A 5.25%, 7/01/23		30		23,025
Series 2008A 5.00%, 7/01/23		10		7,638
Series 2011A 5.75%, 7/01/41(c)(d)		55		39,738
Series 2012A 5.75%, 7/01/28(c)(d)		100		67,000
Series 2014A 8.00%, 7/01/35(c)(d)		255		154,275
GDB Debt Recovery Authority of Puerto Rico Series 2018 7.50%, 8/20/40		149		116,038

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series 2008A 6.00%, 7/01/38-7/01/44	$	175	$	176,969
6.125%, 7/01/24		145		156,419
Series 2012A 5.00%, 7/01/33		80		83,300
5.125%, 7/01/37		25		26,094
5.25%, 7/01/29-7/01/42		200		209,500
5.50%, 7/01/28		75		79,406
5.75%, 7/01/37		50		53,063
6.00%, 7/01/47		50		53,188
Puerto Rico Electric Power Authority Series 2007T 5.00%, 7/01/37(c)(d)		245		183,750
Series 2010A 5.25%, 7/01/30		15		11,400
Series 2010C 5.00%, 7/01/24(c)(d)		25		18,750
Series 2010D 5.00%, 7/01/21(c)(d)		15		11,250
Series 2010X 5.25%, 7/01/40		150		114,000
Series 2010Z 5.25%, 7/01/24		40		30,400
Series 2012A 5.00%, 7/01/29		50		37,500
5.00%, 7/01/42(c)(d)		10		7,500
AGM Series 2007V 5.25%, 7/01/31		375		419,422
NATL Series 2007V 5.25%, 7/01/35		100		106,500
Puerto Rico Highway & Transportation Authority AGC Series 2005L 5.25%, 7/01/41		125		139,231
AGC Series 2007N 5.25%, 7/01/36		110		123,170
NATL Series 2007N 5.25%, 7/01/32		100		106,693
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) Series 2000 6.625%, 6/01/26		390		399,262

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018A Zero Coupon, 7/01/24-7/01/46	$	654	$	193,032
Series 2019A 4.329%, 7/01/40		260		263,897
5.00%, 7/01/58		1,027		1,078,145
				4,489,555
South Carolina – 1.1%
South Carolina Public Service Authority Series 2014A 5.00%, 12/01/49		220		244,909
Series 2014C 5.00%, 12/01/46		325		366,174
Series 2016A 5.00%, 12/01/36		265		310,951
				922,034
Tennessee – 2.2%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016A 5.00%, 12/01/35(a)		370		381,995
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health) Series 2019A 4.00%, 8/01/37-8/01/38		130		141,971
5.00%, 8/01/44-8/01/49		740		874,001
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group) Series 2018A 6.25%, 4/01/49(a)		135		150,980
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2016 5.00%, 7/01/35		215		252,769
				1,801,716
Texas – 5.9%
Austin Convention Enterprises, Inc. Series 2017A 5.00%, 1/01/34		500		580,760

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Central Texas Regional Mobility Authority Series 2013 5.00%, 1/01/42	$	100	$	108,179
City of Houston TX (City of Houston TX Hotel Occupancy Tax) Series 2014 5.00%, 9/01/31		260		296,564
Series 2015 5.00%, 9/01/31		160		182,501
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2014A 5.00%, 12/01/25		580		684,412
Dallas County Flood Control District No. 1 Series 2015 5.00%, 4/01/28(a)		100		106,952
Love Field Airport Modernization Corp. (Dallas Love Field) Series 2015 5.00%, 11/01/32		500		582,015
Mission Economic Development Corp. (Natgasoline LLC) Series 2018 4.625%, 10/01/31(a)		450		487,732
New Hope Cultural Education Facilities Finance Corp. (Wesleyan Homes, Inc.) Series 2014 5.50%, 1/01/49		100		107,744
North Texas Tollway Authority (North Texas Tollway System) Series 2015B 5.00%, 1/01/34		250		288,975
Tarrant County Cultural Education Facilities Finance Corp. (CC Young Memorial Home Obligated Group) Series 2017A 6.375%, 2/15/48		150		166,890
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way) Series 2009A 8.25%, 11/15/44(e)		100		95,000
Tarrant County Cultural Education Facilities Finance Corp. (Trinity Terrace Project) Series 2014A-1 5.00%, 10/01/44		100		108,454

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC) 5.00%, 6/30/58	$	235	$	273,709
Travis County Health Facilities Development Corp. Series 2012A 7.125%, 1/01/46 (Pre-refunded/ETM)		55		58,716
Trinity River Authority Series 2015 5.00%, 2/01/21		335		350,638
Trinity River Authority Central Regional Wastewater System Revenue Series 2014 5.00%, 8/01/22		230		253,460
				4,732,701
Virginia – 0.2%
Tobacco Settlement Financing Corp./VA Series 2007B1 5.00%, 6/01/47		165		165,447
Washington – 1.7%
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 1/01/44		280		322,963
Port of Seattle WA Series 2015C 5.00%, 4/01/33		510		581,007
Washington Health Care Facilities Authority (CommonSpirit Health) Series 2019A 5.00%, 8/01/44		205		242,349
Washington State Housing Finance Commission (Mirabella) Series 2012A 6.75%, 10/01/47(a)		100		107,333
Washington State Housing Finance Commission (Rockwood Retirement Communities) Series 2014A 7.375%, 1/01/44(a)		100		114,203
				1,367,855
West Virginia – 0.2%
West Virginia Economic Development Authority (Morgantown Energy Associates) Series 2016 2.875%, 12/15/26		125		126,299

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin – 0.5%
Wisconsin Public Finance Authority (Celanese US Holdings LLC) Series 2016C 4.30%, 11/01/30	$	100	$	109,095
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.) Series 2017A 5.25%, 5/15/42(a)		130		145,519
Wisconsin Public Finance Authority (Maryland Proton Treatment Center LLC) Series 2018A-1 6.375%, 1/01/48(a)		125		131,894
				386,508
Total Municipal Obligations (cost $66,971,011)				70,695,797
GOVERNMENTS – TREASURIES – 6.2%
United States – 6.2%
U.S. Treasury Notes 1.25%, 8/31/24		1,000		987,813
1.50%, 9/15/22		2,500		2,499,609
1.625%, 9/30/26		1,500		1,501,641
Total Governments – Treasuries (cost $4,975,831)				4,989,063
COLLATERALIZED MORTGAGE OBLIGATIONS – 2.0%
Risk Share Floating Rate – 2.0%
Bellemeade Re Ltd. Series 2018-2A, Class M1B 3.173% (LIBOR 1 Month + 1.35%), 8/25/28(a)(j)		200		200,395
Series 2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(a)(j)		252		251,749
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 6.223% (LIBOR 1 Month + 4.40%), 1/25/24(j)		490		530,802
Series 2016-C01, Class 1M2 8.573% (LIBOR 1 Month + 6.75%), 8/25/28(j)		120		132,277

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Series 2016-C02, Class 1M2 7.823% (LIBOR 1 Month + 6.00%), 9/25/28(j)	$	434	$	472,886
STACR Trust Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(a)(j)		55		55,086
Total Collateralized Mortgage Obligations (cost $1,679,707)				1,643,195
CORPORATES – INVESTMENT GRADE – 1.7%
Industrial – 1.7%
Basic – 0.1%
Glencore Funding LLC 3.00%, 10/27/22(a)		100		101,182
Capital Goods – 0.7%
Boeing Co. (The) 3.10%, 5/01/26		300		313,725
General Electric Co. 3.375%, 3/11/24		250		258,137
				571,862
Communications - Telecommunications – 0.2%
AT&T, Inc. 3.312% (LIBOR 3 Month + 1.18%), 6/12/24(j)		165		167,812
Consumer Cyclical - Automotive – 0.3%
Ford Motor Credit Co. LLC 2.425%, 6/12/20		200		199,804
Consumer Non-Cyclical – 0.4%
CVS Health Corp. 3.35%, 3/09/21		133		135,437
Cigna Corp. 3.40%, 9/17/21		165		169,054
				304,491
Total Corporates – Investment Grade (cost $1,316,334)				1,345,151

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.8%
Non-Agency Fixed Rate CMBS – 0.1%
Citigroup Commercial Mortgage Trust Series 2015-GC29, Class A2 2.674%, 4/10/48	$	87	$	87,226
Non-Agency Floating Rate CMBS – 0.7%
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 2.914% (LIBOR 1 Month + 1.00%), 11/15/33(a)(j)		250		250,153
DBWF Mortgage Trust Series 2018-GLKS, Class A 2.876% (LIBOR 1 Month + 1.03%), 11/19/35(a)(j)		275		275,176
				525,329
Total Commercial Mortgage-Backed Securities (cost $611,441)				612,555
ASSET-BACKED SECURITIES – 0.6%
Credit Cards - Fixed Rate – 0.4%
World Financial Network Credit Card Master Trust Series 2018-B, Class A 3.46%, 7/15/25		335		343,972
Other ABS - Fixed Rate – 0.2%
SoFi Consumer Loan Program Trust Series 2018-3, Class A2 3.67%, 8/25/27(a)(k)		172		174,344
Total Asset-Backed Securities (cost $506,905)				518,316
CORPORATES – NON-INVESTMENT GRADE – 0.6%
Financial Institutions – 0.3%
Insurance – 0.3%
Polaris Intermediate Corp. 8.50% (8.50% Cash or 9.25% PIK), 12/01/22(a)(l)		300		251,385
Industrial – 0.3%
Communications - Media – 0.2%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.00%, 3/01/23(a)		130		132,223

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PORTFOLIO OF INVESTMENTS(continued)

	Principal Amount (000)		U.S. $ Value
Energy – 0.1%
California Resources Corp. 8.00%, 12/15/22(a)	$	350	$	108,500
				240,723
Total Corporates – Non-Investment Grade (cost $706,241)				492,108
COLLATERALIZED LOAN OBLIGATIONS – 0.3%
CLO - Floating Rate – 0.3%
THL Credit Wind River CLO Ltd. Series 2014-2A, Class AR 3.141% (LIBOR 3 Month + 1.14%), 1/15/31(a)(j)(k) (cost $250,000)		250		248,011
Total Investments – 99.9% (cost $77,017,470)				80,544,196
Other assets less liabilities – 0.1%				102,357
Net Assets – 100.0%			$	80,646,553

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency	Implied Credit Spread at October 31, 2019			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAHY Series 33, 5 Year Index, 12/20/24*		(5.00	)%	Quarterly		3.40	%		USD   4,505	$	(345,647	)	$	(302,058	)	$	(43,589	)

* Termination date

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	7,330		1/15/25		1.671	%	CPI#	Maturity	$	(18,821	)	$	—	$	(18,821	)
USD	2,210		6/17/24		1.760	%	CPI#	Maturity		(17,266	)		—		(17,266	)
USD	3,950		8/09/24		1.690	%	CPI#	Maturity		(19,716	)		—		(19,716	)
									$	(55,803	)	$	—	$	(55,803	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

34    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	8,270		12/11/21		3 Month LIBOR		2.868%	Quarterly/Semi-Annual	$	291,452		$	—	$	291,452
USD	3,350		1/07/22		3 Month LIBOR		2.488%	Quarterly/Semi-Annual		88,292			—		88,292
USD	7,720		4/01/22		3 Month LIBOR		1.863%	Quarterly/Semi-Annual		54,950			—		54,950
USD	4,590		1/15/25		3 Month LIBOR		1.566%	Quarterly/Semi-Annual		15,515			—		15,515
USD	1,650		10/09/29		3 Month LIBOR		1.473%	Quarterly/Semi-Annual		(19,959	)		—		(19,959	)
USD	650		10/09/29		3 Month LIBOR		1.470%	Quarterly/ Semi-Annual		(8,045	)		—		(8,045	)
USD	5,500		4/01/44		3 Month LIBOR		2.013%	Quarterly/ Semi-Annual		250,355			—		250,355
USD	5,500		4/01/54		1.583%		3 Month LIBOR	Semi-Annual/ Quarterly		313,269			—		313,269
									$	985,829		$	—	$	985,829

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	17	$	(1,449	)	$	(1,703	)	$	254
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	515		(43,835	)		(61,672	)		17,837
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,000		(85,200	)		(131,554	)		46,354
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	171		(14,569	)		(16,861	)		2,292
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	9		(767	)		(910	)		143
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	114		(9,703	)		(11,537	)		1,834
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,000		(85,200	)		(133,846	)		48,646

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS(continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42	%		USD	750	$	(63,837	)	$	(72,735	)	$	8,898
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	149		(12,695	)		(14,260	)		1,565
												$	(317,255	)	$	(445,078	)	$	127,823

* Termination date

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
Barclays Bank PLC		USD	1,737		10/15/20		2.208	%	CPI#	Maturity	$	(20,727	)
Citibank, NA		USD	1,260		10/17/20		2.220	%	CPI#	Maturity		(15,262	)
Citibank, NA		USD	5,000		10/29/21		2.125	%	CPI#	Maturity		(83,592	)
JPMorgan Chase Bank, NA		USD	2,500		7/15/22		1.775	%	CPI#	Maturity		(14,133	)
JPMorgan Chase Bank, NA		USD	1,170		7/15/24		2.165	%	CPI#	Maturity		(24,167	)
JPMorgan Chase Bank, NA		USD	2,000		7/15/25		2.087	%	CPI#	Maturity		(55,690	)
											$	(213,571	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

INTEREST RATE SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Unrealized Appreciation/ (Depreciation)

Citibank, NA

USD

2,220

10/09/29

1.120

%

SIFMA*

Quarterly

$

15,308

Citibank, NA

USD

2,220

10/09/29

1.125

%

SIFMA*

Quarterly

14,163

$

29,471

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $7,494,879 or 9.3% of net assets.

36    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS(continued)

(b) An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of October 31, 2019 and the aggregate market value of these securities amounted to $900,000 or 1.12% of net assets.

(c) Non-income producing security.

(d) Defaulted.

(e) Illiquid security.

(f) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014A 7.50%, 7/01/23		7/31/14	$	173,773	$	2		0.00	%

(g) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.36% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017 8.00%, 12/01/22		12/07/17	$	286,646	$	288,012		0.36	%

(h) Defaulted matured security.

(i) When-Issued or delayed delivery security.

(j) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(k) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(l) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2019.

As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 2.5% and 0.0%, respectively.

Glossary:

ABS – Asset-Backed Securities

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

CMBS – Commercial Mortgage-Backed Securities

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

COP – Certificate of Participation

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rates

NATL – National Interstate Corporation

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    37

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019

Assets
Investments in securities, at value (cost $77,017,470)	$	80,544,196
Cash collateral due from broker		1,410,075
Unaffiliated interest and dividends receivable		1,024,338
Receivable for capital stock sold		261,036
Receivable for variation margin on centrally cleared swaps		54,764
Unrealized appreciation on interest rate swaps		29,471
Receivable due from Adviser		6,465
Receivable for investment securities sold		5,000
Affiliated dividends receivable		566
Total assets		83,335,911
Liabilities
Due to custodian		266,549
Payable for investment securities purchased		1,616,558
Market value on credit default swaps (net premiums received $445,078)		317,255
Unrealized depreciation on inflation swaps		213,571
Payable for capital stock redeemed		151,123
Distribution fee payable		3,640
Directors’ fees payable		1,936
Dividends payable		1,758
Transfer Agent fee payable		1,470
Accrued expenses and other liabilities		115,498
Total liabilities		2,689,358
Net Assets	$	80,646,553
Composition of Net Assets
Capital stock, at par	$	7,272
Additional paid-in capital		77,270,112
Distributable earnings		3,369,169
	$	80,646,553

Net Asset Value Per Share—21 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	11,931,690		1,076,021	$	11.09	*
C	$	1,595,709		143,878	$	11.09
Advisor	$	67,119,154		6,052,170	$	11.09

* The maximum offering price per share for Class A shares was $11.43 which reflects a sales charge of 3.00%.

See notes to financial statements.

38    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2019

Investment Income
Interest	$	2,348,939
Dividends
Unaffiliated issuers		26,673
Affiliated issuers		30,917		$	2,406,529
Expenses
Advisory fee (see Note B)		304,679
Distribution fee—Class A		19,168
Distribution fee—Class C		11,331
Transfer agency—Class A		3,653
Transfer agency—Class C		568
Transfer agency—Advisor Class		28,304
Custodian		95,700
Audit and tax		61,404
Administrative		59,250
Registration fees		57,662
Legal		41,715
Directors’ fees		23,131
Printing		16,923
Miscellaneous		8,146
Total expenses before bank overdraft expense		731,634
Bank overdraft expense		9,922
Total expenses		741,556
Less: expenses waived and reimbursed by the Adviser (see Note B)		(363,940	)
Net expenses					377,616
Net investment income					2,028,913
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					133,941
Swaps					(614,846	)
Net change in unrealized appreciation/depreciation of:
Investments(a)					3,822,707
Swaps					382,287
Net gain on investment transactions					3,724,089
Net Increase in Net Assets from Operations				$	5,753,002

(a) Net of increase in accrued foreign capital gains taxes of $4,129.

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    39

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2019			Year Ended October 31, 2018
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,028,913		$	1,728,466
Net realized loss on investment transactions		(480,905	)		(283,143	)
Net change in unrealized appreciation/depreciation of investments		4,204,994			(1,731,446	)
Net increase (decrease) in net assets from operations		5,753,002			(286,123	)
Distributions to Shareholders
Class A		(220,518	)		(153,312	)
Class C		(24,277	)		(14,560	)
Advisor Class		(1,854,885	)		(1,621,088	)
Capital Stock Transactions
Net increase (decrease)		13,126,054			(2,960,722	)
Total increase (decrease)		16,779,376			(5,035,805	)
Net Assets
Beginning of period		63,867,177			68,902,982
End of period	$	80,646,553		$	63,867,177

See notes to financial statements.

40    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Tax-Aware Fixed Income Portfolio (the “Fund”), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class T, Class 1 and Class 2 shares. Class B, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    41

NOTES TO FINANCIAL STATEMENTS(continued)

the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m.,

42    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

abfunds.com AB TAX-AWARE FIXED INCOME PORTFOLIO    ^|    43

NOTES TO FINANCIAL STATEMENTS(continued)

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

70,695,797

$

– 0

–

$

70,695,797

Governments – Treasuries

– 0

–

4,989,063

– 0

–

4,989,063

Collateralized Mortgage Obligations

– 0

–

1,643,195

– 0

–

1,643,195

Corporates – Investment Grade

– 0

–

1,345,151

– 0

–

1,345,151

Commercial Mortgage-Backed Securities

– 0

–

612,555

– 0

–

612,555

Asset-Backed Securities

– 0

–

343,972

174,344

518,316

Corporates – Non-Investment Grade

– 0

–

492,108

– 0

–

492,108

Collateralized Loan Obligations

– 0

–

– 0

–

248,011

248,011

Total Investments in Securities

– 0

–

80,121,841

422,355

80,544,196

Other Financial Instruments(a):

Assets:

Centrally Cleared Interest Rate Swaps

– 0

–

1,013,833

– 0

–

1,013,833

(b)

Interest Rate Swaps

– 0

–

29,471

– 0

–

29,471

Liabilities:

Centrally Cleared Credit Default Swaps

– 0

–

(345,647

)

– 0

–

(345,647

)(b)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(55,803

)

– 0

–

(55,803

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(28,004

)

– 0

–

(28,004

)(b)

Credit Default Swaps

– 0

–

(317,255

)

– 0

–

(317,255

)

Inflation (CPI) Swaps

– 0

–

(213,571

)

– 0

–

(213,571

)

Total

$

– 0

–

$

80,204,865

$

422,355

$

80,627,220

+

44    ^|    AB TAX-AWARE FIXED INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS(continued)

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

+ Amounts of $4,135,335 and $252,822 for Long-Term Municipal Bonds and Commercial Mortgage-Backed Securities, respectively, were transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and

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NOTES TO FINANCIAL STATEMENTS(continued)

has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .75%, 1.50% and .50%, of average daily net assets for Class A, Class C and Advisor Class shares, respectively. For the year ended October 31, 2019, such reimbursements/waivers amounted to $303,353. The Expense Caps may not be terminated before January 31, 2020.

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Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2019, the Adviser voluntarily agreed to waive such fees in the amount of $59,250.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $17,995 for the year ended October 31, 2019.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $79 from the sale of Class A shares and received $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class C shares, for the year ended October 31, 2019.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2019, such waiver amounted to $1,337.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2019 is as follows:

Fund	Market Value 10/31/18 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)			Dividend Income (000)
Government Money Market Portfolio	$	1,732	$	42,481	$	44,213	$	– 0	–	$	31

The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers, or common directors. For the year ended October 31, 2019, the purchase and sale transactions with an affiliated

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fund in compliance with Rule 17a-7 under the 1940 Act were $403 and $1,078, respectively, with realized gain of $634.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to 0.30% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. The fees are accrued daily and paid monthly. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional

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activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $14,540 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	39,144,511	$	31,888,196
U.S. government securities		8,761,355		2,598,861

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	77,033,573
Gross unrealized appreciation	$	5,191,876
Gross unrealized depreciation		(1,022,045	)
Net unrealized appreciation	$	4,169,831

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by

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one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the

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statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in

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the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2019, the Fund held inflation (CPI) swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the

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payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2019, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

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During the year ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Credit contracts					Receivable/ Payable for variation margin on centrally cleared swaps	$	43,589	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	1,013,833	*	Receivable/Payable for variation margin on centrally cleared swaps		83,807	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		29,471
Interest rate contracts					Unrealized depreciation on inflation swaps		213,571
Credit contracts					Market value on credit default swaps		317,255
Total		$	1,043,304			$	658,222

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(742,274	)	$	268,258
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		127,428			114,029
Total		$	(614,846	)	$	382,287

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The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2019:

Interest Rate Swaps:
Average notional amount	$	4,440,000	(a)
Inflation Swaps:
Average notional amount	$	16,742,385
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	23,458,846
Centrally Cleared Inflation Swaps:
Average notional amount	$	6,046,000	(b)
Credit Default Swaps:
Average notional amount of buy contracts	$	1,265,000	(c)
Average notional amount of sale contracts	$	3,517,308
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	4,017,222	(d)
Average notional amount of sale contracts	$	2,452,067	(e)

(a) Positions were open for one month during the year.

(b) Positions were open for five months during the year.

(c) Positions were open for two months during the year.

(d) Positions were open for nine months during the year.

(e) Positions were open for three months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citibank, NA	$	29,471	$	(29,471	)	$	– 0	–	$	– 0	–	$	– 0	–
Total	$	29,471	$	(29,471	)	$	– 0	–	$	– 0	–	$	– 0	–
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Barclays Bank PLC	$	20,727	$	– 0	–	$	– 0	–	$	– 0	–	$	20,727
Citibank, NA		98,854		(29,471	)		(69,383	)		– 0	–		– 0	–
Citigroup Global Markets, Inc.		130,484		– 0	–		– 0	–		– 0	–		130,484

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Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Credit Suisse International	$	110,239	$	– 0	–	$	(110,239	)	$	– 0	–	$	– 0	–
Goldman Sachs International		76,532		– 0	–		– 0	–		– 0	–		76,532
JPMorgan Chase Bank, NA		93,990		– 0	–		– 0	–		– 0	–		93,990
Total	$	530,826	$	(29,471	)	$	(179,622	)	$	– 0	–	$	321,733	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Class A
Shares sold		640,376			105,320		$	7,042,277		$	1,124,788
Shares issued in reinvestment of dividends		8,294			4,541			90,705			48,227
Shares converted from Class C		0	(a)		– 0	–		1			– 0	–
Shares redeemed		(114,410	)		(317,112	)		(1,235,112	)		(3,364,356	)
Net increase (decrease)		534,260			(207,251	)	$	5,897,871		$	(2,191,341	)
Class C
Shares sold		70,443			10,739		$	764,808		$	114,475
Shares issued in reinvestment of dividends		1,618			976			17,669			10,368
Shares converted to Class A		0	(a)		– 0	–		(1	)		– 0	–
Shares redeemed		(1,705	)		(36,269	)		(18,666	)		(386,481	)
Net increase (decrease)		70,356			(24,554	)	$	763,810		$	(261,638	)

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	Shares						Amount
	Year Ended October 31, 2019			Year Ended October 31, 2018			Year Ended October 31, 2019			Year Ended October 31, 2018
Advisor Class
Shares sold		4,278,940			2,355,130		$	46,722,768		$	25,187,837
Shares issued in reinvestment of dividends		68,832			70,796			750,101			752,252
Shares redeemed		(3,786,542	)		(2,486,447	)		(41,008,496	)		(26,447,832)
Net increase (decrease)		561,230			(60,521	)	$	6,464,373		$	(507,743	)

(a) Amount is less than one share.

NOTE F

Risks Involved in Investing in the Fund

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade or dispose of than other types of securities.

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or

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facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

The Fund may invest in the municipal securities of Puerto Rico or other U.S. territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other U.S. issuers of municipal securities. Like many U.S. states and municipalities, Puerto Rico experienced a significant downturn during the recent recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. Municipal securities issued by many Puerto Rico issuers have extremely low credit ratings and are on “negative watch” by credit rating organizations. Several Puerto Rico issuers are in default on principal and interest payments. These defaults cast doubts on the ability of Puerto Rico and its government agencies to make future payments. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility. In addition, Puerto Rico’s difficulties have resulted in increased volatility in portions of the broader municipal securities market from time to time, and this may recur in the future.

Tax Risk—From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s NAV could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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NOTES TO FINANCIAL STATEMENTS(continued)

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the

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NOTES TO FINANCIAL STATEMENTS(continued)

use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2019.

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NOTES TO FINANCIAL STATEMENTS(continued)

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2019 and October 31, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	563,591	$	251,841
Total taxable distributions		563,591		251,841
Tax-exempt distributions		1,536,089		1,537,119
Total distributions paid	$	2,099,680	$	1,788,960

As of October 31, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	120,828
Accumulated capital and other losses		(915,603	)(a)
Unrealized appreciation/(depreciation)		4,165,702	(b)
Total accumulated earnings/(deficit)	$	3,370,927	(c)

(a) As of October 31, 2019, the Fund had a net capital loss carryforward of $915,603.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax treatment of swaps and the tax deferral of losses on wash sales.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) is attributable primarily to dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2019, the Fund had a net short-term capital loss carryforward of $915,603, which may be carried forward for an indefinite period.

During the current fiscal year, there were no permanent differences that resulted in adjustments to distributable earnings or additional paid-in capital.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

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NOTES TO FINANCIAL STATEMENTS(continued)

In August 2018, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement which removes, modifies and adds disclosures to Topic 820. The amendments in this ASU 2018-13 (“ASU”) apply to all entities that are required, under existing U.S. GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of the amendments and elected to early adopt the ASU. The adoption of this ASU did not have a material impact on the disclosure and presentation of the financial statements of the Fund.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.46			$  10.77			$  10.87			$  10.59			$  10.51
Income From Investment Operations
Net investment income(a)(b)		.30			.24			.21			.22			.18
Net realized and unrealized gain (loss) on investment transactions		.65			(.30	)		(.10	)†		.28			.09
Net increase (decrease) in net asset value from operations		.95			(.06	)		.11			.50			.27
Less: Dividends and Distributions
Dividends from net investment income		(.32	)		(.25	)		(.21	)		(.22	)		(.18	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)
Total dividends and distributions		(.32	)		(.25	)		(.21	)		(.22	)		(.19	)
Net asset value, end of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Total Return
Total investment return based on net asset value(c)		9.15	%		(.55	)%		1.09	%		4.69	%		2.64	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11,932			$5,666			$8,065			$6,385			$4,783
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(d)(e)		.76	%		.75	%		.75	%		.80	%		.81	%
Expenses, before waivers/reimbursements(d)(e)		1.30	%		1.27	%		1.40	%		1.72	%		2.19	%
Net investment income(b)		2.78	%		2.26	%		2.01	%		1.98	%		1.75	%
Portfolio turnover rate		52	%		68	%		34	%		36	%		35	%

See footnote summary on page 66.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.46			$  10.77			$  10.87			$  10.59			$  10.52
Income From Investment Operations
Net investment income(a)(b)		.22			.16			.13			.13			.10
Net realized and unrealized gain (loss) on investment transactions		.65			(.30	)		(.10	)†		.28			.09
Net increase (decrease) in net asset value from operations		.87			(.14	)		.03			.41			.19
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.17	)		(.13	)		(.13	)		(.11	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)
Total dividends and distributions		(.24	)		(.17	)		(.13	)		(.13	)		(.12	)
Net asset value, end of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Total Return
Total investment return based on net asset value(c)		8.33	%		(1.29	)%		.33	%		3.91	%		1.78	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,596			$769			$1,056		��	$2,022			$1,518
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(d)(e)		1.51	%		1.50	%		1.50	%		1.55	%		1.55	%
Expenses, before waivers/reimbursements(d)(e)		2.06	%		2.02	%		2.18	%		2.47	%		2.85	%
Net investment income(b)		2.05	%		1.52	%		1.25	%		1.23	%		.99	%
Portfolio turnover rate		52	%		68	%		34	%		36	%		35	%

See footnote summary on page 66.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2019			2018			2017			2016			2015
Net asset value, beginning of period		$  10.46			$  10.77			$  10.87			$  10.59			$  10.52
Income From Investment Operations
Net investment income(a)(b)		.33			.27			.24			.24			.21
Net realized and unrealized gain (loss) on investment transactions		.64			(.30	)		(.10	)†		.28			.08
Net increase (decrease) in net asset value from operations		.97			(.03	)		.14			.52			.29
Less: Dividends and Distributions
Dividends from net investment income		(.34	)		(.28	)		(.24	)		(.24	)		(.21	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)
Total dividends and distributions		(.34	)		(.28	)		(.24	)		(.24	)		(.22	)
Net asset value, end of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Total Return
Total investment return based on net asset value(c)		9.42	%		(.30	)%		1.34	%		4.96	%		2.81	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$67,119			$57,432			$59,782			$33,667			$26,333
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(d)(e)		.51	%		.50	%		.50	%		.55	%		.55	%
Expenses, before waivers/reimbursements(d)(e)		1.05	%		1.02	%		1.15	%		1.47	%		1.92	%
Net investment income(b)		3.04	%		2.52	%		2.26	%		2.24	%		1.99	%
Portfolio turnover rate		52	%		68	%		34	%		36	%		35	%

See footnote summary on page 66.

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FINANCIAL HIGHLIGHTS(continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(d) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the year ended October 31, 2017, such waiver amounted to .01%.

(e) The expense ratios presented below exclude interest/bank overdraft expense:

	Year Ended October 31,
	2019			2018		2017		2016		2015
Class A
Net of waivers/reimbursements		.75	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.29	%		N/A		N/A		N/A		N/A
Class C
Net of waivers/reimbursements		1.50	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		2.04	%		N/A		N/A		N/A		N/A
Advisor Class
Net of waivers/reimbursements		.50	%		N/A		N/A		N/A		N/A
Before waivers/reimbursements		1.04	%		N/A		N/A		N/A		N/A

† Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Tax-Aware Fixed Income Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Tax-Aware Fixed Income Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2019, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

of securities owned as of October 31, 2019, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 27, 2019

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2019 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2019. For foreign shareholders, 39.31% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2020.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith,President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Robert B. “Guy” Davidson III⁽²⁾,Vice President Terrance T. Hults⁽²⁾,Vice President Shawn E. Keegan⁽²⁾,Vice President Matthew J. Norton⁽²⁾,Vice President Andrew D. Potter⁽²⁾,Vice President Emilie D. Wrapp,Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo,Treasurer and Chief Financial Officer Phyllis J. Clarke,Controller Vincent S. Noto,Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210   Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund are made by its Tax-Aware Investment Team. Messrs. Davidson, Hults, Keegan, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 59 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 78 (2005)	Private Investor since prior to 2014. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He has extensive operating leadership, and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensivenon-profit board leadership experience, and currently serves on the boards of two education and science-relatednon-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		91	Xilinx, Inc. (programmable logic semi-conductors) since 2007
Michael J. Downey,## 75 (2005)	Private Investor since prior to 2014. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2014 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 71 (2006)	Private Investor since prior to 2014. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 64 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company andnon-profit boards, and as a director or trustee of the AB Funds since June 2016.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 67 (2008)	Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		91	None

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MANAGEMENT OF THE FUND(continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 80 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of variousnon-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		91	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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MANAGEMENT OF THE FUND(continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 59	President and Chief Executive Officer	See biography above.
Robert B. “Guy” Davidson, III 58	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Chief Investment Officer – Municipal Business.
Terrance T. Hults 53	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Co-Head – Municipal Portfolio Management.
Shawn E. Keegan 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014.
Matthew Norton 36	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2014. He is also Co-Head –Municipal Portfolio Management.
Andrew D. Potter 34	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Emilie D. Wrapp 64	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2014.
Michael B. Reyes 43	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2014.
Joseph J. Mantineo 60	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2014.
Phyllis J. Clarke 58	Controller	Vice President of ABIS**, with which she has been associated since prior to 2014.
Vincent S. Noto 55	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus of SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of ABTax-Aware Fixed Income Portfolio (the “Fund”) at a meeting held onNovember 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that wasall-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. The Adviser did not request any reimbursements from the Fund in the Fund’s latest fiscal year. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors

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recognized that the Fund’s unprofitability to the Adviser would be exacerbated without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the1- and3-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts. The directors concluded, based on the Adviser’s explanation of how it may use ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund would be for services that would be in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund

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in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with their independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY(continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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AB TAX-AWARE FIXED INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TAFI-0151-1019                

ITEM 2. CODE OF ETHICS.

(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 12(a)(1).

(b) During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors has determined that independent directors Garry L. Moody and Marshall C. Turner, Jr. qualify as audit committee financial experts.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) - (c) The following table sets forth the aggregate fees billed by the independent registered public accounting firm Ernst & Young LLP, for the Fund’s last two fiscal years for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues and quarterly press release review (for those Funds which issue press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

	Audit Fees				Audit-Related Fees		Tax Fees
AB Total Return Bond Portfolio		2018	$	75,281	$	(1)	$	31,075
		2019	$	84,906	$	—	$	19,659
AB Bond Inflation Strategy		2018	$	86,472	$	2	$	30,776
		2019	$	96,097	$	—	$	18,878
AB Municipal Bond Inflation Strategy		2018	$	66,207	$	1	$	29,516
		2019	$	69,532	$	—	$	19,707
AB All Market Real Return		2018	$	82,106	$	4,429	$	58,757
		2019	$	87,794	$	—	$	46,285
AB Short Duration Income		2018	$	—	$	—	$	—
		2019	$	30,961	$	—	$	11,484
AB Tax Aware Fixed Income		2018	$	36,060	$	—	$	39,168
		2019	$	36,060	$	—	$	24,944
AB Income		2018	$	114,685	$	52	$	38,825
		2019	$	121,160	$	—	$	26,671

(d) Not applicable.

(e) (1) Beginning with audit andnon-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require thepre-approval of all audit andnon-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also requirepre-approval of all audit andnon-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for servicespre-approved by the Fund’s Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregatenon-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund:

	All Fees for Non-Audit Services Provided to the Portfolio, the Adviser and Service Affiliates				Total Amount of Foregoing Column Pre- approved by the  Audit Committee (Portion Comprised of Audit Related Fees) (Portion Comprised of Tax Fees)
AB Total Return Bond Portfolio		2018	$	588,653	$	31,074
					$	1
					$	(31,075	)
		2019	$	757,414	$	19,659
					$	—
					$	(19,659	)
AB Bond Inflation Strategy		2018	$	588,357	$	30,778
					$	(2	)
					$	(30,776	)
		2019	$	756,633	$	18,878
					$	—
					$	(18,878	)
AB Municipal Bond Inflation Strategy		2018	$	528,064	$	29,516
					$	(1	)
					$	(29,515	)
		2019	$	718,048	$	(19,707	)
					$	—
					$	19,707
AB All Market Real Return		2018	$	620,765	$	63,186
					$	(4,429	)
					$	(58,757	)
		2019	$	784,040	$	46,285
					$	—
					$	(46,285	)
AB Short Duration Income		2018	$	—	$	—
					$	—
					$	—
		2019	$	749,239	$	11,484
					$	—
					$	(11,484	)
AB Tax Aware Fixed Income		2018	$	596,747	$	39,168
					$	—
					$	(39,168	)
		2019	$	762,699	$	24,944
					$	—
					$	(24,944	)
AB Income		2018	$	596,456	$	38,877
					$	(52	)
					$	(38,825	)
		2019	$	764,426	$	26,671
					$	—
					$	(26,671	)

(h) The Audit Committee of the Fund has considered whether the provision of anynon-audit services notpre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. SCHEDULE OF INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this FormN-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BYCLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule30a-3 (c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

The following exhibits are attached to this FormN-CSR:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
12 (a) (1)	Code of Ethics that is subject to the disclosure of Item 2 hereof
12 (b) (1)	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2)	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (c)	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of theSarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AB Bond Fund, Inc.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President

Date: December 30, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President

Date: December 30, 2019

By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer

Date: December 30, 2019