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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-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, 2023

Date of reporting period: April 30, 2023

ITEM 1. REPORTS TO STOCKHOLDERS.

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB ALL MARKET REAL RETURN PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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SEMI-ANNUAL REPORT

June 8, 2023

This report provides management’s discussion of fund performance for the AB All Market Real Return Portfolio for the semi-annual reporting period ended April 30, 2023.

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

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB ALL MARKET REAL RETURN PORTFOLIO
Class 1 Shares1		3.73%		-7.63%
Class 2 Shares1		3.91%		-7.37%
Class A Shares		3.72%		-7.69%
Class C Shares		3.38%		-8.33%
Advisor Class Shares2		3.73%		-7.50%
Class R Shares2		3.51%		-8.04%
Class K Shares2		3.63%		-7.82%
Class I Shares2		3.84%		-7.44%
Class Z Shares2		3.84%		-7.43%
MSCI AC World Commodity Producers Index (net)		5.60%		6.36%

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 Please note that these share classes are 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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Morgan Stanley Capital International All Country (“MSCI AC”) World Commodity Producers Index (net), for the six- and 12-month periods ended April 30, 2023.

All share classes of the Fund underperformed the benchmark for both periods, before sales charges. During the six-month period, the strategic allocation detracted overall, relative to the benchmark, as commodity futures underperformed commodity producers notably. Security selection within commodity equities was additive, as was positive selection within real estate. With respect to tactical shifts, the Fund’s underweight allocation to real estate investment trusts (“REITs”) detracted.

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For the 12-month period, the strategic allocation detracted overall, as commodity futures, REITs and inflation-sensitive equities underperformed commodity producers. Security selection within commodity futures and REITs was positive, while selection within inflation-sensitive equities was negative. The Fund’s tactical underweight to REITs contributed, while a tactical underweight to commodity producers detracted.

The Fund used derivatives for hedging and investment purposes in the form of futures and inflation swaps, which detracted from absolute returns for both periods, while currency forwards and total return swaps detracted for the six-month period and added for the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

US, international and emerging-market stocks rose during the six-month period ended April 30, 2023, despite bouts of volatility, as central banks—led by the US Federal Reserve (the “Fed”)—continued to fight inflation by rapidly tightening monetary policy. Equity markets rallied amid some early signs of easing inflationary pressures, but strong global economic data created uncertainty around the depth of the disinflationary process and prompted concern over the Fed’s higher-for-longer messaging. China’s rapid rollback of its zero-COVID restrictions in December and its pro-growth policy pivot benefited global stocks—especially emerging-market stocks. At the end of the period, the collapse of several banks and the potential for broader financial contagion drove stocks lower. Stocks recovered some losses after the banking crisis was contained and US inflation data came in softer than expected, raising speculation that the Fed might be near the end of its rate-hike cycle. Within large-cap markets, both growth- and value-oriented stocks rose for the period. Growth stocks outperformed value stocks significantly on a relative basis as technology stocks continued to rebound on positive first-quarter 2023 earnings reports and speculation that the Fed might soon pivot. Large-cap stocks rose in absolute terms and outperformed small-cap stocks, which declined.

Inflation assets were mixed over the six- and 12-month periods ended April 30, 2023. Commodities fell meaningfully over both periods as the asset classes faced headwinds related to concerns regarding a slowdown in growth amid restrictive monetary policy. Energy, and in particular natural gas, was under significant selling pressure in the recent period as a result of mild winter weather in Europe and a subsequent reduction in demand. Amid a rising interest rate environment, REITs posted significantly negative returns over the 12-month period. However, REITs posted positive returns over the six-month period as concerns regarding rising interest rates began to abate. Elsewhere, inflation swaps were modestly negative over both periods, while infrastructure was modestly negative over the 12-month period, but notably positive over the six-month period.

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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 seeks inflation protection from investments around the globe, both in developed- and emerging-market countries. In selecting securities for purchase and sale, the Adviser utilizes 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.

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

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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 REITs and other real estate-related securities.

The Fund invests in both US and non-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 enter into derivatives, such as options, futures contracts, forwards, swaps or structured notes, to a significant extent, subject to the limits of applicable law. 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 considers factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser considers 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 use of 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 is subject to the risks associated with the commodities, derivatives and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Fund limits its investment in the

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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 of non-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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end

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DISCLOSURES AND RISKS (continued)

of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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.

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 are or 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.

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DISCLOSURES AND RISKS (continued)

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 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 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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

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DISCLOSURES AND RISKS (continued)

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. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund 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”, found in the footer, then “Mutual Fund 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% 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.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-7.63%		-7.63%
5 Years		4.19%		4.19%
10 Years		1.07%		1.07%
CLASS 2 SHARES1
1 Year		-7.37%		-7.37%
5 Years		4.47%		4.47%
10 Years		1.33%		1.33%
CLASS A SHARES
1 Year		-7.69%		-11.65%
5 Years		3.99%		3.10%
10 Years		0.91%		0.47%
CLASS C SHARES
1 Year		-8.33%		-9.19%
5 Years		3.25%		3.25%
10 Years2		0.17%		0.17%
ADVISOR CLASS SHARES3
1 Year		-7.50%		-7.50%
5 Years		4.27%		4.27%
10 Years		1.17%		1.17%
CLASS R SHARES3
1 Year		-8.04%		-8.04%
5 Years		3.70%		3.70%
10 Years		0.64%		0.64%
CLASS K SHARES3
1 Year		-7.82%		-7.82%
5 Years		3.99%		3.99%
10 Years		0.91%		0.91%
CLASS I SHARES3
1 Year		-7.44%		-7.44%
5 Years		4.42%		4.42%
10 Years		1.30%		1.30%
CLASS Z SHARES3
1 Year		-7.43%		-7.43%
5 Years		4.44%		4.44%
Since Inception4		1.90%		1.90%

(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 1.13%, 0.86%, 1.21%, 1.99%, 0.96%, 1.62%, 1.31%, 0.91% and 0.88% 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 reduced the Fund’s total annual operating expense ratio (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) to 1.55% and 1.30% for Class R and Class K shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2024, and may be extended by the Adviser for additional one-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. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

2 Assumes conversion of Class C shares into Class A shares after eight 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 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.

4 Inception date: 1/31/2014.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-10.48%
5 Years		4.71%
10 Years		0.96%
CLASS 2 SHARES1
1 Year		-10.26%
5 Years		4.98%
10 Years		1.22%
CLASS A SHARES
1 Year		-14.39%
5 Years		3.62%
10 Years		0.36%
CLASS C SHARES
1 Year		-12.04%
5 Years		3.76%
10 Years2		0.07%
ADVISOR CLASS SHARES3
1 Year		-10.31%
5 Years		4.81%
10 Years		1.07%
CLASS R SHARES3
1 Year		-10.89%
5 Years		4.21%
10 Years		0.54%
CLASS K SHARES3
1 Year		-10.64%
5 Years		4.51%
10 Years		0.81%
CLASS I SHARES3
1 Year		-10.28%
5 Years		4.96%
10 Years		1.19%
CLASS Z SHARES3
1 Year		-10.17%
5 Years		4.98%
Since Inception4		1.85%

(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 Assumes conversion of Class C shares into Class A shares after eight years.

3 Please note that these share classes are 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.

4 Inception date: 1/31/2014.

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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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,037.20	$	6.01		1.19	%	$	6.16		1.22	%
Hypothetical**	$	1,000	$	1,018.89	$	5.96		1.19	%	$	6.11		1.22	%
Class C
Actual	$	1,000	$	1,033.80	$	9.78		1.94	%	$	9.93		1.97	%
Hypothetical**	$	1,000	$	1,015.17	$	9.69		1.94	%	$	9.84		1.97	%
Advisor Class
Actual	$	1,000	$	1,037.30	$	4.75		0.94	%	$	4.90		0.97	%
Hypothetical**	$	1,000	$	1,020.13	$	4.71		0.94	%	$	4.86		0.97	%
Class R
Actual	$	1,000	$	1,035.10	$	7.72		1.53	%	$	7.87		1.56	%
Hypothetical**	$	1,000	$	1,017.21	$	7.65		1.53	%	$	7.80		1.56	%
Class K
Actual	$	1,000	$	1,036.30	$	6.41		1.27	%	$	6.56		1.30	%
Hypothetical**	$	1,000	$	1,018.50	$	6.36		1.27	%	$	6.51		1.30	%
Class I
Actual	$	1,000	$	1,038.40	$	4.25		0.84	%	$	4.40		0.87	%
Hypothetical**	$	1,000	$	1,020.63	$	4.21		0.84	%	$	4.36		0.87	%
Class 1
Actual	$	1,000	$	1,037.30	$	5.51		1.09	%	$	5.66		1.12	%
Hypothetical**	$	1,000	$	1,019.39	$	5.46		1.09	%	$	5.61		1.12	%
Class 2
Actual	$	1,000	$	1,039.10	$	3.89		0.77	%	$	4.04		0.80	%
Hypothetical**	$	1,000	$	1,020.98	$	3.86		0.77	%	$	4.01		0.80	%
Class Z
Actual	$	1,000	$	1,038.40	$	4.25		0.84	%	$	4.40		0.87	%
Hypothetical**	$	1,000	$	1,020.63	$	4.21		0.84	%	$	4.36		0.87	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-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 181/365 (to reflect the one-half year period).

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

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $912.7

1 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 “Consolidated Portfolio of Investments” section of the report for additional details).

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    17

PORTFOLIO SUMMARY (continued)

April 30, 2023 (unaudited)

TEN LARGEST HOLDINGS²

Company	U.S. $ Value		Percent of Net Assets
Prologis, Inc.	$	18,679,910		2.0	%
Exxon Mobil Corp.		14,335,471		1.6
Shell PLC		14,295,106		1.6
Equinix, Inc.		11,397,019		1.2
Public Storage		9,521,830		1.0
VanEck Gold Miners ETF/USA		8,275,791		0.9
Mitsui Fudosan Co., Ltd.		7,249,632		0.8
Apple, Inc.		7,210,721		0.8
Ventas, Inc.		6,075,922		0.7
EOG Resources, Inc.		6,006,713		0.7
	$	103,048,115		11.3	%

1 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 0.6% or less in the following: Austria, Belgium, Brazil, Chile, Denmark, Finland, India, Ireland, Israel, Luxembourg, Mexico, New Zealand, Norway, Philippines, Russia, South Africa, South Korea, Sweden, Switzerland, Thailand, United Arab Emirates and Zambia.

2 Long-term investments.

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

Company	Shares		U.S. $ Value
COMMON STOCKS – 65.1%
Equity Real Estate Investment Trusts (REITs) – 21.5%
Data Center REITs – 1.5%
Digital Realty Trust, Inc.		25,870	$	2,565,011
Equinix, Inc.		15,740		11,397,019
				13,962,030
Diversified REITs – 1.6%
Alexander & Baldwin, Inc.		74,700		1,436,481
Armada Hoffler Properties, Inc.		213,830		2,506,088
Charter Hall Long Wale REIT		500,110		1,447,709
Essential Properties Realty Trust, Inc.		122,400		3,029,400
Growthpoint Properties Ltd.		1,670,022		1,162,191
ICADE		41,270		1,938,283
Merlin Properties Socimi SA		215,200		1,902,755
United Urban Investment Corp.		1,311		1,455,628
				14,878,535
Health Care REITs – 1.6%
Cofinimmo SA(a)(b)		10,030		958,213
Medical Properties Trust, Inc.		280,590		2,460,774
Physicians Realty Trust		56,900		820,498
Ventas, Inc.		126,450		6,075,922
Welltower, Inc.		51,780		4,102,012
				14,417,419
Hotel & Resort REITs – 0.5%
CapitaLand Ascott Trust		22,577		18,330
Invincible Investment Corp.		5,056		2,182,966	��
Park Hotels & Resorts, Inc.		155,060		1,868,473
RLJ Lodging Trust		83,480		843,148
				4,912,917
Industrial REITs – 4.6%
CapitaLand Ascendas REIT		617,700		1,329,243
Centuria Industrial REIT(a)		767,900		1,596,929
Dream Industrial Real Estate Investment Trust		216,884		2,375,583
GLP J-Reit		1,812		2,070,346
Mapletree Logistics Trust		1,414,918		1,851,659
Mitsui Fudosan Logistics Park, Inc.		530		1,991,513
Plymouth Industrial REIT, Inc.		54,566		1,104,416
Prologis, Inc.		149,141		18,679,910
Rexford Industrial Realty, Inc.		53,920		3,007,118
Segro PLC		425,862		4,483,443
STAG Industrial, Inc.		100,740		3,412,064
				41,902,224
Multi-Family Residential REITs – 2.4%
Equity Residential		94,340		5,967,005
Essex Property Trust, Inc.		22,530		4,950,517

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    19

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Kenedix Residential Next Investment Corp.		1,441	$	2,260,727
Killam Apartment Real Estate Investment Trust		221,460		2,750,985
UDR, Inc.		97,450		4,027,608
UNITE Group PLC (The)		163,120		1,968,251
				21,925,093
Office REITs – 1.0%
Alexandria Real Estate Equities, Inc.		7,540		936,317
City Office REIT, Inc.		268,600		1,563,252
Cousins Properties, Inc.		129,185		2,817,525
Daiwa Office Investment Corp.		275		1,195,374
Derwent London PLC		48,990		1,479,012
Kenedix Office Investment Corp.(a)		534		1,180,582
				9,172,062
Other Specialized REITs – 0.8%
Iron Mountain, Inc.		23,413		1,293,334
VICI Properties, Inc.		176,160		5,978,870
				7,272,204
Retail REITs – 4.0%
AEON REIT Investment Corp.		926		1,061,612
Brixmor Property Group, Inc.		143,990		3,071,307
CapitaLand Integrated Commercial Trust		1,948,560		2,975,331
Crombie Real Estate Investment Trust		104,210		1,186,049
Frasers Centrepoint Trust		370,700		615,981
Japan Metropolitan Fund Invest		1,784		1,306,272
Kite Realty Group Trust		122,370		2,535,506
Link REIT(a)		746,160		4,880,548
Mercialys SA		75,428		758,457
NETSTREIT Corp.		131,666		2,398,954
Phillips Edison & Co., Inc.		84,040		2,650,622
Realty Income Corp.		31,000		1,948,040
Region Re Ltd.		534,710		875,031
Simon Property Group, Inc.		28,743		3,257,157
SITE Centers Corp.		270,720		3,340,685
Spirit Realty Capital, Inc.		81,580		3,137,567
Waypoint REIT Ltd.		316,250		549,253
				36,548,372
Self-Storage REITs – 1.8%
Extra Space Storage, Inc.		23,790		3,617,032
National Storage Affiliates Trust		27,150		1,046,632
Public Storage		32,296		9,521,830
Safestore Holdings PLC		157,460		1,962,790
				16,148,284
Single-Family Residential REITs – 1.5%
American Homes 4 Rent – Class A		114,750		3,816,585
Equity LifeStyle Properties, Inc.		36,560		2,518,984
Invitation Homes, Inc.		73,210		2,443,018

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Sun Communities, Inc.		33,857	$	4,703,753
				13,482,340
Timber REITs – 0.2%
Weyerhaeuser Co.		43,048		1,287,566
				195,909,046
Energy – 8.4%
Coal & Consumable Fuels – 0.1%
Cameco Corp.		19,456		534,845
Integrated Oil & Gas – 5.9%
BP PLC		829,864		5,567,553
Cenovus Energy, Inc.		9,907		166,280
Chevron Corp.		30,541		5,148,602
Equinor ASA		110,397		3,178,442
Exxon Mobil Corp.		121,138		14,335,471
Gazprom PJSC(c)(d)		818,956		– 0	–
LUKOIL PJSC(c)(d)		20,541		– 0	–
Repsol SA		333,667		4,901,468
Shell PLC		465,212		14,295,106
Suncor Energy, Inc.		29,990		938,979
TotalEnergies SE		88,162		5,633,544
				54,165,445
Oil & Gas Drilling – 0.1%
China Oilfield Services Ltd. – Class H		1,188,000		1,397,354
Oil & Gas Equipment & Services – 0.1%
Halliburton Co.		23,008		753,512
Oil & Gas Exploration & Production – 1.9%
ConocoPhillips		47,457		4,882,851
Coterra Energy, Inc.		42,937		1,099,187
EOG Resources, Inc.		50,278		6,006,713
Hess Corp.		23,106		3,351,756
Texas Pacific Land Corp.		296		437,384
Woodside Energy Group Ltd.		65,919		1,495,724
				17,273,615
Oil & Gas Refining & Marketing – 0.3%
HF Sinclair Corp.		862		38,023
Marathon Petroleum Corp.		10,720		1,307,840
Neste Oyj		10,159		492,350
Valero Energy Corp.		10,115		1,159,887
				2,998,100
				77,122,871
Materials – 6.4%
Aluminum – 0.1%
Alcoa Corp.		14,995		556,914

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    21

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Norsk Hydro ASA		75,374	$	554,682
				1,111,596
Commodity Chemicals – 0.6%
Beijing Haixin Energy Technology Co., Ltd. – Class A		1,643,085		860,046
Corteva, Inc.		30,242		1,848,391
Ecopro Co., Ltd.		3,325		1,826,170
LG Chem Ltd.		1,101		611,587
Mitsubishi Chemical Group Corp.		53,400		313,279
W-Scope Corp.(a)(b)		50,000		415,337
				5,874,810
Construction Materials – 0.2%
GCC SAB de CV		178,867		1,422,619
Copper – 0.3%
Antofagasta PLC		29,910		550,135
Capstone Mining Corp.(b)		187,740		882,683
First Quantum Minerals Ltd.		62,380		1,515,703
				2,948,521
Diversified Chemicals – 0.1%
Sumitomo Chemical Co., Ltd.(a)		347,800		1,175,293
Diversified Metals & Mining – 1.6%
Anglo American PLC		58,737		1,809,932
BHP Group Ltd.		101,782		3,020,633
CMOC Group Ltd. – Class H(a)		933,000		571,950
Glencore PLC		570,576		3,367,902
Mineral Resources Ltd.(a)		5,889		290,508
MMC Norilsk Nickel PJSC (ADR)(b)(c)(d)		66,074		– 0	–
Rio Tinto PLC		46,606		2,962,853
Teck Resources Ltd. – Class B		44,342		2,066,259
Zhejiang Huayou Cobalt Co., Ltd. – Class A		65,770		495,504
				14,585,541
Fertilizers & Agricultural Chemicals – 0.4%
CF Industries Holdings, Inc.		29,427		2,106,385
OCI NV(a)		42,067		1,108,479
				3,214,864
Forest Products – 0.0%
Interfor Corp.(b)		20,471		321,226
Gold – 0.8%
Agnico Eagle Mines Ltd.		39,157		2,221,358
Barrick Gold Corp.		114,476		2,179,623
Endeavour Mining PLC		98,025		2,534,933
Regis Resources Ltd.(b)		504,296		713,546
				7,649,460

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Industrial Gases – 0.2%
Air Liquide SA		3,570	$	642,208
Air Products and Chemicals, Inc.		2,023		595,490
Linde PLC		1,646		608,115
				1,845,813
Paper Products – 0.1%
Suzano SA		76,300		608,834
Specialty Chemicals – 1.0%
Albemarle Corp.		3,067		568,806
Covestro AG(b)(e)		26,042		1,142,474
Danimer Scientific, Inc.(a)(b)		317,399		1,002,981
Ecolab, Inc.		3,069		515,101
Evonik Industries AG		42,743		932,929
Ganfeng Lithium Group Co., Ltd – Class A		62,180		585,164
IMCD NV		3,351		504,457
Johnson Matthey PLC		28,979		715,888
Livent Corp.(b)		30,483		666,054
Shanghai Putailai New Energy Technology Co., Ltd. – Class A		76,220		576,184
Sika AG (REG)		1,643		453,834
Umicore SA(a)		18,709		614,133
Wacker Chemie AG		4,565		705,984
				8,983,989
Steel – 1.0%
APERAM SA		31,138		1,154,515
ArcelorMittal SA		104,872		2,979,376
Cleveland-Cliffs, Inc.(b)		16,648		256,046
Commercial Metals Co.		13,744		641,707
Fortescue Metals Group Ltd.		32,506		454,812
JFE Holdings, Inc.		50,800		600,979
Nippon Steel Corp.(a)		20,800		444,234
Steel Dynamics, Inc.		9,861		1,025,051
Vale SA (Sponsored ADR)		100,293		1,445,222
				9,001,942
				58,744,508
Capital Goods – 5.3%
Aerospace & Defense – 0.4%
BAE Systems PLC		110,072		1,402,315
Hexcel Corp.		9,815		707,465
Huntington Ingalls Industries, Inc.		4,752		958,289
Kongsberg Gruppen ASA		7,667		344,369
Rheinmetall AG		1,855		543,316
				3,955,754
Building Products – 0.7%
A O Smith Corp.		9,345		638,170
Carrier Global Corp.		15,181		634,869
Cie de Saint-Gobain		18,167		1,051,773

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    23

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Kingspan Group PLC		9,842	$	682,048
Lennox International, Inc.		2,110		594,830
Nibe Industrier AB – Class B		42,067		471,019
Owens Corning		19,404		2,072,542
Zurn Elkay Water Solutions Corp.		29,311		631,652
				6,776,903
Construction & Engineering – 0.3%
ACS Actividades de Construccion y Servicios SA		41,384		1,422,881
Arcosa, Inc.		16,060		1,084,692
				2,507,573
Construction Machinery & Heavy Transportation Equipment – 0.2%
Caterpillar, Inc.		861		188,387
Cummins, Inc.		4,991		1,173,084
PACCAR, Inc.		7,991		596,848
				1,958,319
Electrical Components & Equipment – 1.4%
ABB Ltd. (REG)		11,761		424,262
Acuity Brands, Inc.		7,208		1,134,395
Advent Technologies Holdings, Inc.(b)		352,284		267,736
Ballard Power Systems, Inc.(b)		103,664		458,314
Beijing Easpring Material Technology Co., Ltd. – Class A		74,769		579,684
Blink Charging Co.(a)(b)		36,628		261,158
Camel Group Co., Ltd. – Class A		597,100		823,403
Contemporary Amperex Technology Co., Ltd. – Class A		17,460		584,257
EnerSys		9,284		770,293
First Solar, Inc.(b)		3,948		720,826
FuelCell Energy, Inc.(a)(b)		162,083		304,716
Gotion High-tech Co., Ltd. – Class A		141,900		564,710
Hubbell, Inc.		2,725		733,897
Legrand SA		7,247		685,957
nVent Electric PLC		17,182		720,441
Plug Power, Inc.(b)		41,317		373,093
Prysmian SpA		19,262		788,310
Signify NV(e)		30,099		1,005,199
SunPower Corp.(a)(b)		40,749		538,702
Sunrun, Inc.(b)		39,570		832,553
				12,571,906
Heavy Electrical Equipment – 0.6%
Bloom Energy Corp. – Class A(a)(b)		22,740		378,621
CS Wind Corp.		10,715		606,620
ITM Power PLC(a)(b)		469,795		462,348
Ming Yang Smart Energy Group Ltd. – Class A		188,896		564,988

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
NARI Technology Co., Ltd. – Class A		159,009	$	601,055
NEL ASA(a)(b)		264,586		363,604
Nordex SE(b)		40,545		488,290
Siemens Energy AG(b)		47,906		1,175,810
TPI Composites, Inc.(b)		47,576		588,039
Vestas Wind Systems A/S(b)		21,874		605,266
				5,834,641
Industrial Conglomerates – 0.1%
General Electric Co.		9,306		921,015
Industrial Machinery & Supplies & Components – 1.0%
Chart Industries, Inc.(b)		5,427		722,334
Energy Recovery, Inc.(b)		21,189		477,388
Illinois Tool Works, Inc.		6,145		1,486,721
John Bean Technologies Corp.		6,433		699,332
McPhy Energy SA(b)		27,992		379,760
Mueller Industries, Inc.		9,856		708,154
NGK Insulators Ltd.		63,000		790,765
Pentair PLC		14,374		834,842
Snap-on, Inc.		5,266		1,366,053
SPX Technologies, Inc.(b)		10,000		636,800
Watts Water Technologies, Inc. – Class A		3,495		565,246
Xylem, Inc./NY		5,179		537,787
				9,205,182
Machinery – 0.3%
AGCO Corp.		6,649		824,077
Deere & Co.		1,629		615,795
Lindsay Corp.		4,123		497,811
Toro Co. (The)		4,913		512,229
				2,449,912
Trading Companies & Distributors – 0.3%
United Rentals, Inc.		3,032		1,094,885
WW Grainger, Inc.		1,966		1,367,491
				2,462,376
				48,643,581
Real Estate Management & Development – 4.4%
Diversified Real Estate Activities – 1.8%
Ayala Land, Inc.		3,195,600		1,544,437
City Developments Ltd.		117,000		612,061
Daito Trust Construction Co., Ltd.		12,100		1,146,810
Mitsui Fudosan Co., Ltd.		365,000		7,249,632
Sun Hung Kai Properties Ltd.		405,000		5,638,929
				16,191,869
Real Estate Development – 1.1%
China Overseas Land & Investment Ltd.		800,000		2,028,914
China Resources Land Ltd.		940,000		4,377,350

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    25

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
CK Asset Holdings Ltd.		173,000	$	1,022,970
Emaar Properties PJSC		927,700		1,504,044
Instone Real Estate Group SE(e)		66,119		529,013
Megaworld Corp.		20,741,000		750,593
				10,212,884
Real Estate Operating Companies – 1.4%
Azrieli Group Ltd.		16,810		980,295
CA Immobilien Anlagen AG(b)		51,889		1,505,386
Capitaland Investment Ltd./Singapore(a)		396,000		1,108,493
Central Pattana PCL		351,300		702,019
CTP NV(a)(e)		179,379		2,353,541
Shurgard Self Storage Ltd.		28,490		1,473,123
TAG Immobilien AG		73,430		628,775
Vonovia SE		50,524		1,095,791
Wihlborgs Fastigheter AB		351,570		2,841,719
				12,689,142
Real Estate Services – 0.1%
Unibail-Rodamco-Westfield(b)		17,310		928,266
				40,022,161
Utilities – 3.0%
Electric Utilities – 0.9%
Avangrid, Inc.		25,296		1,018,417
Constellation Energy Corp.		1		77
Enel SpA		520,664		3,557,236
Exelon Corp.		15,976		678,021
Iberdrola SA		54,540		706,735
NextEra Energy, Inc.		5,766		441,849
NRG Energy, Inc.		22,088		754,747
Orsted AS(e)		5,438		488,061
SSE PLC		30,514		704,054
				8,349,197
Gas Utilities – 0.3%
APA Group		242,300		1,654,286
Naturgy Energy Group SA		15,009		467,325
UGI Corp.		32,348		1,095,950
				3,217,561
Independent Power and Renewable Electricity Producers – 0.9%
Atlantica Sustainable Infrastructure PLC		24,600		654,852
Azure Power Global Ltd.(a)(b)		142,825		308,502
Boralex, Inc. – Class A		20,590		600,292
Brookfield Renewable Corp. – Class A		22,949		766,802
China Longyuan Power Group Corp. Ltd. – Class H		407,000		427,132
Clearway Energy, Inc. – Class A		17,205		498,601
EDP Renovaveis SA(b)		32,479		721,933
Innergex Renewable Energy, Inc.		60,590		621,619

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
NextEra Energy Partners LP		9,777	$	562,275
Northland Power, Inc.		24,890		611,021
Ormat Technologies, Inc.		5,995		514,431
Solaria Energia y Medio Ambiente SA(b)		32,222		508,357
TransAlta Renewables, Inc.(a)		81,080		757,030
Xinyi Energy Holdings Ltd.(a)(d)		1,572,000		439,849
				7,992,696
Independent Power Producers & Energy Traders – 0.4%
AES Corp. (The)		20,918		494,920
Drax Group PLC		104,310		825,353
ERG SpA		24,043		726,055
Guangxi Guiguan Electric Power Co., Ltd. – Class A		701,400		561,602
RWE AG(b)		15,760		738,927
				3,346,857
Multi-Utilities – 0.2%
Algonquin Power & Utilities Corp.		108,749		924,670
E.ON SE		57,033		754,418
				1,679,088
Water Utilities – 0.3%
American States Water Co.		4,080		362,100
American Water Works Co., Inc.		3,375		500,344
Beijing Enterprises Water Group Ltd.		2,668,000		677,501
California Water Service Group		9,620		539,489
Middlesex Water Co.		4,411		321,915
SJW Group		8,192		621,937
				3,023,286
				27,608,685
Software & Services – 1.8%
Application Software – 0.5%
Autodesk, Inc.(b)		1,694		329,974
Cadence Design Systems, Inc.(b)		6,901		1,445,415
Dropbox, Inc. – Class A(b)		56,193		1,142,966
Roper Technologies, Inc.		2,026		921,384
Salesforce, Inc.(b)		2,779		551,270
Zoom Video Communications, Inc. – Class A(b)		2,729		167,643
				4,558,652
Internet Services & Infrastructure – 0.2%
VeriSign, Inc.(b)		6,025		1,336,345
IT Consulting & Other Services – 0.1%
CGI, Inc.(b)		7,681		779,580
Systems Software – 1.0%
Check Point Software Technologies Ltd.(b)		649		82,657
CyberArk Software Ltd.(b)		708		88,217

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Fortinet, Inc.(b)		19,702	$	1,242,211
Microsoft Corp.		18,883		5,801,990
Palo Alto Networks, Inc.(b)		7,351		1,341,263
ServiceNow, Inc.(b)		1,885		866,007
				9,422,345
				16,096,922
Pharmaceuticals & Biotechnology – 1.7%
Biotechnology – 0.3%
AbbVie, Inc.		8,197		1,238,731
Amgen, Inc.		3,840		920,601
				2,159,332
Life Sciences Tools & Services – 0.5%
Danaher Corp.		2,886		683,722
Eurofins Scientific SE		11,005		768,697
Mettler-Toledo International, Inc.(b)		886		1,321,469
Waters Corp.(b)		5,932		1,781,736
WuXi AppTec Co., Ltd. Class H(a)(e)		26,000		228,668
				4,784,292
Pharmaceuticals – 0.9%
Bayer AG (REG)		15,558		1,026,770
Elanco Animal Health, Inc.(b)		92,099		872,178
Eli Lilly & Co.		5,843		2,313,010
Novo Nordisk A/S – Class B		12,429		2,067,618
Pfizer, Inc.		35,779		1,391,445
Zoetis, Inc.		3,533		621,031
				8,292,052
				15,235,676
Food Beverage & Tobacco – 1.7%
Agricultural Products & Services – 0.3%
Archer-Daniels-Midland Co.		16,021		1,250,919
Bunge Ltd.		12,245		1,146,132
Darling Ingredients, Inc.(b)		11,703		697,148
				3,094,199
Brewers – 0.2%
Heineken Holding NV		14,236		1,366,388
Packaged Foods & Meats – 1.0%
Danone SA		12,486		826,369
Hershey Co. (The)		3,357		916,662
Hormel Foods Corp.		11,929		482,409
JBS SA		230,100		825,773
Lamb Weston Holdings, Inc.		12,577		1,406,234
Maple Leaf Foods, Inc.		35,697		731,409
Marfrig Global Foods SA		783,900		1,023,134
Mowi ASA		40,981		781,888
Pilgrim’s Pride Corp.(b)		31,149		710,509

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Sao Martinho SA		129,600	$	815,879
Tyson Foods, Inc. – Class A		14,991		936,788
				9,457,054
Tobacco – 0.2%
Imperial Brands PLC		51,630		1,278,053
				15,195,694
Technology Hardware & Equipment – 1.4%
Communications Equipment – 0.0%
F5, Inc.(b)		2,277		305,938
Electronic Components – 0.1%
Samsung SDI Co., Ltd.		957		496,656
Electronic Equipment & Instruments – 0.2%
Itron, Inc.(b)		10,451		558,084
Landis+Gyr Group AG(b)		11,141		923,010
				1,481,094
Technology Distributors – 0.1%
Arrow Electronics, Inc.(b)		1,449		165,809
CDW Corp./DE		7,100		1,204,089
				1,369,898
Technology Hardware, Storage & Peripherals – 1.0%
Apple, Inc.		42,496		7,210,721
NetApp, Inc.		10,571		664,810
Ricoh Co., Ltd.		167,200		1,384,370
				9,259,901
				12,913,487
Banks – 1.0%
Diversified Banks – 0.9%
Banco Bilbao Vizcaya Argentaria SA		196,467		1,438,332
Banco Santander SA(a)		275,922		969,335
Barclays PLC		176,227		354,994
Commerzbank AG(b)		97,159		1,079,738
FinecoBank Banca Fineco SpA		43,763		663,346
JPMorgan Chase & Co.		3,232		446,792
NatWest Group PLC		98,495		324,452
Oversea-Chinese Banking Corp., Ltd.		59,800		565,761
Skandinaviska Enskilda Banken AB – Class A		52,824		600,650
Standard Chartered PLC		154,415		1,223,450
Swedbank AB – Class A		16,710		290,360
UniCredit SpA		26,734		529,747
				8,486,957

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Regional Banks – 0.1%
Resona Holdings, Inc.		138,100	$	688,285
				9,175,242
Semiconductors & Semiconductor Equipment – 0.9%
Semiconductor Materials & Equipment – 0.6%
Applied Materials, Inc.		13,054		1,475,494
ASML Holding NV		1,357		861,169
Enphase Energy, Inc.(b)		2,438		400,319
KLA Corp.		2,887		1,115,941
SolarEdge Technologies, Inc.(b)		1,782		508,993
Xinyi Solar Holdings Ltd.		494,000		531,098
				4,893,014
Semiconductors – 0.3%
Canadian Solar, Inc.(b)		17,868		668,620
LONGi Green Energy Technology Co., Ltd. – Class A		95,632		483,077
NVIDIA Corp.		4,110		1,140,484
QUALCOMM, Inc.		2,876		335,917
STMicroelectronics NV		1,326		56,722
Wolfspeed, Inc.(a)(b)		6,852		318,961
				3,003,781
				7,896,795
Insurance – 0.8%
Life & Health Insurance – 0.5%
iA Financial Corp., Inc.		10,302		691,261
Japan Post Holdings Co., Ltd.		60,900		501,324
Japan Post Insurance Co., Ltd.		59,300		962,977
Manulife Financial Corp.		75,303		1,486,774
Principal Financial Group, Inc.		15,056		1,124,533
				4,766,869
Multi-line Insurance – 0.1%
American International Group, Inc.		22,054		1,169,744
Property & Casualty Insurance – 0.0%
Fidelity National Financial, Inc.		9,495		336,977
Reinsurance – 0.2%
Everest Re Group Ltd.		3,630		1,372,140
				7,645,730
Consumer Durables & Apparel – 0.8%
Apparel, Accessories & Luxury Goods – 0.1%
Pandora A/S		9,149		846,848
Swatch Group AG (The)		941		322,822
				1,169,670

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Consumer Electronics – 0.1%
Panasonic Holdings Corp.(a)		85,700	$	807,189
Homebuilding – 0.5%
Desarrolladora Homex SAB de CV(b)		1,590		2
Ez Tec Empreendimentos e Participacoes SA		275,500		802,561
Installed Building Products, Inc.		4,706		584,814
Open House Group Co., Ltd.		6,200		247,831
PulteGroup, Inc.		23,140		1,553,851
Sekisui House Ltd.		77,500		1,593,295
Urbi Desarrollos Urbanos SAB de CV(b)		9		3
				4,782,357
Leisure Products – 0.1%
BRP, Inc.		4,064		303,619
				7,062,835
Consumer Discretionary Distribution & Retail – 0.8%
Broadline Retail – 0.4%
Amazon.com, Inc.(b)		24,109		2,542,294
Cie Financiere Richemont SA (REG)		7,041		1,163,883
Next PLC		1,695		143,815
				3,849,992
Home Improvement Retail – 0.2%
Home Depot, Inc. (The)		5,769		1,733,816
Other Specialty Retail – 0.2%
Ulta Beauty, Inc.(b)		2,484		1,369,752
				6,953,560
Consumer Services – 0.7%
Casinos & Gaming – 0.0%
La Francaise des Jeux SAEM(e)		2,509		107,239
Hotels, Resorts & Cruise Lines – 0.4%
Booking Holdings, Inc.(b)		594		1,595,668
Hyatt Hotels Corp. – Class A(b)		10,400		1,188,720
Marriott International, Inc./MD – Class A		7,545		1,277,671
				4,062,059
Restaurants – 0.2%
Sodexo SA		13,099		1,403,794
Specialized Consumer Services – 0.1%
WW International, Inc.(b)		159,411		1,331,082
				6,904,174

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    31

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Financial Services – 0.7%
Asset Management & Custody Banks – 0.1%
Ameriprise Financial, Inc.		3,995	$	1,218,954
Franklin Resources, Inc.		2,837		76,259
				1,295,213
Investment Banking & Brokerage – 0.2%
Goldman Sachs Group, Inc. (The)		3,957		1,358,992
Mortgage REITs – 0.0%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a)		15,481		439,351
Transaction & Payment Processing Services – 0.4%
Mastercard, Inc. – Class A		5,718		2,173,012
Visa, Inc. – Class A		5,658		1,316,786
				3,489,798
				6,583,354
Health Care Equipment & Services – 0.7%
Health Care Distributors – 0.1%
Cardinal Health, Inc.		5,343		438,660
McKesson Corp.		1,716		625,036
				1,063,696
Health Care Equipment – 0.5%
Dexcom, Inc.(b)		8,429		1,022,775
GE Healthcare, Inc.(b)		12,834		1,043,918
Hologic, Inc.(b)		8,604		740,030
IDEXX Laboratories, Inc.(b)		2,764		1,360,330
				4,167,053
Health Care Services – 0.0%
Abiomed, Inc.(b)(c)(d)		1,321		– 0	–
Health Care Supplies – 0.0%
Coloplast A/S – Class B		1,754		252,718
Managed Health Care – 0.1%
Humana, Inc.		337		178,775
Molina Healthcare, Inc.(b)		2,125		633,016
				811,791
				6,295,258
Media & Entertainment – 0.6%
Advertising – 0.1%
Dentsu Group, Inc.		4,200		151,346
Omnicom Group, Inc.		5,051		457,469
				608,815

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Interactive Home Entertainment – 0.1%
Electronic Arts, Inc.		10,699	$	1,361,769
Interactive Media & Services – 0.4%
Alphabet, Inc. – Class A(b)		15,560		1,670,210
Alphabet, Inc. – Class C(b)		14,228		1,539,754
Tencent Holdings Ltd.		6,000		266,497
				3,476,461
Movies & Entertainment – 0.0%
Live Nation Entertainment, Inc.(b)		5,761		390,481
				5,837,526
Transportation – 0.6%
Air Freight & Logistics – 0.1%
Expeditors International of Washington, Inc.		4,827		549,506
Cargo Ground Transportation – 0.1%
TFI International, Inc.		9,286		1,000,806
Highways & Railtracks – 0.3%
Transurban Group		291,338		2,905,600
Passenger Airlines – 0.1%
Deutsche Lufthansa AG (REG)(b)		123,413		1,326,680
				5,782,592
Telecommunication Services – 0.6%
Integrated Telecommunication Services – 0.5%
Cellnex Telecom SA(b)(e)		23,070		971,339
Infrastrutture Wireless Italiane SpA(e)		89,600		1,243,605
Spark New Zealand Ltd.		383,034		1,241,088
Telstra Group Ltd.		453,058		1,314,418
				4,770,450
Wireless Telecommunication Services – 0.1%
SoftBank Corp.		35,900		404,192
				5,174,642
Commercial & Professional Services – 0.5%
Diversified Support Services – 0.0%
Brambles Ltd.		24,155		228,816
Environmental & Facilities Services – 0.4%
Aker Carbon Capture ASA(b)		318,682		326,960
Casella Waste Systems, Inc. – Class A(b)		7,299		649,611
Clean Harbors, Inc.(b)		5,996		870,379
Republic Services, Inc.		5,974		863,960
Tetra Tech, Inc.		4,893		677,044

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Waste Management, Inc.		4,015	$	666,691
				4,054,645
Human Resource & Employment Services – 0.0%
Automatic Data Processing, Inc.		377		82,940
Research & Consulting Services – 0.1%
Booz Allen Hamilton Holding Corp.		768		73,513
Thomson Reuters Corp.		3,798		499,429
				572,942
				4,939,343
Automobiles & Components – 0.4%
Automobile Manufacturers – 0.1%
Tesla, Inc.(b)		6,947		1,141,461
Automotive Parts & Equipment – 0.3%
Aisin Corp.		32,200		945,117
BorgWarner, Inc.		26,852		1,292,387
				2,237,504
				3,378,965
Consumer Staples Distribution & Retail – 0.2%
Food Distributors – 0.1%
Sysco Corp.		11,657		894,558
Food Retail – 0.1%
Alimentation Couche-Tard, Inc.		14,503		723,839
George Weston Ltd.		1,259		169,050
Kroger Co. (The)		7,823		380,432
				1,273,321
				2,167,879
Household & Personal Products – 0.2%
Household Products – 0.2%
Colgate-Palmolive Co.		18,728		1,494,494
Total Common Stocks (cost $576,700,559)				594,785,020
INVESTMENT COMPANIES – 1.3%
Funds and Investment Trusts – 1.3%(f)
VanEck Agribusiness ETF		41,269		3,524,372
VanEck Gold Miners ETF/USA		246,450		8,275,791
Total Investment Companies (cost $9,825,314)				11,800,163

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
RIGHTS – 0.0%
Xinyi Energy Holdings Ltd., expiring 05/23/2023(b)(c) (cost $0)		174,800	$	– 0	–
SHORT-TERM INVESTMENTS – 31.0%
Investment Companies – 31.0%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(f)(g)(h) (cost $282,639,205)		282,639,205		282,639,205
Total Investments Before Security Lending Collateral for Securities Loaned – 97.4% (cost $869,165,078)				889,224,388
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.7%
Investment Companies – 0.7%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(f)(g)(h) (cost $6,149,135)		6,149,135		6,149,135
Total Investments – 98.1% (cost $875,314,213)				895,373,523
Other assets less liabilities – 1.9%				17,373,443
Net Assets – 100.0%			$	912,746,966

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
Brent Crude Futures		215		September 2023	$	16,883,950	$	294,649
Coffee Robusta Futures		94		July 2023		2,264,460		23,225
Coffee ‘C’ Futures		111		September 2023		7,625,700		(1,490	)
Copper Futures		134		September 2023		13,056,625		36,961
Corn Futures		384		December 2023		10,132,800		(93,204	)
Cotton No.2 Futures		109		December 2023		4,419,950		9,414
Gasoline RBOB Futures		55		August 2023		5,539,842		17,998
Gold 100 OZ Futures		231		June 2023		46,179,210		(6,043	)
KC HRW Wheat Futures		131		December 2023		5,089,350		73,038
Lean Hogs Futures		150		August 2023		5,680,500		18,553
Live Cattle Futures		93		October 2023		6,235,650		2,742
LME Lead Futures		58		May 2023		3,124,750		33,911
LME Lead Futures		32		September 2023		1,720,800		8,296

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)
LME Nickel Futures		51		May 2023	$	7,416,369	$	(283,041	)
LME Nickel Futures		34		September 2023		4,960,056		71,697
LME Primary Aluminum Futures		248		May 2023		14,706,400		(180,502	)
LME Primary Aluminum Futures		180		September 2023		10,707,750		114,163
LME Zinc Futures		112		May 2023		7,408,100		(1,221,817	)
LME Zinc Futures		76		September 2023		5,037,850		(61,048	)
Low SU Gasoil Futures		87		September 2023		6,083,475		87,567
Natural Gas Futures		372		August 2023		9,768,720		(363,945	)
NY Harbor ULSD Futures		50		August 2023		5,044,410		30,582
Platinum Futures		33		July 2023		1,798,665		161,080
Silver Futures		80		July 2023		10,090,400		(311,464	)
Soybean Futures		176		November 2023		11,118,800		81,385
Soybean Meal Futures		150		December 2023		6,078,000		24,691
Soybean Oil Futures		198		December 2023		5,972,076		87,362
Sugar 11 (World) Futures		238		September 2023		6,933,226		2,136,152
Wheat (CBT) Futures		201		December 2023		6,658,125		48,480
WTI Crude Futures		238		August 2023		18,021,360		359,983
Sold Contracts
Bloomberg Commodity Index Futures		674		June 2023		7,030,494		(126,423	)
Euro STOXX 50 Index Futures		31		June 2023		1,475,665		(69,219	)
FTSE 100 Index Futures		5		June 2023		494,060		(14,742	)
LME Lead Futures		58		May 2023		3,124,750		(29,735	)
LME Nickel Futures		51		May 2023		7,416,369		(112,241	)
LME Primary Aluminum Futures		248		May 2023		14,706,400		(225,573	)
LME Zinc Futures		112		May 2023		7,408,100		45,373
S&P 500 E-Mini Futures		22		June 2023		4,607,350		(324,562	)
S&P/TSX 60 Index Futures		2		June 2023		368,602		(17,052	)
SPI 200 Futures		3		June 2023		363,174		(14,763	)
TOPIX Index Futures		2		June 2023		302,103		(6,713	)
							$	303,725

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	EUR	8,531	USD	9,347		05/11/2023	$	(58,286	)
Bank of America, NA	USD	22,745	EUR	21,365		05/11/2023		809,293
Bank of America, NA	CLP	8,274,269	USD	10,181		05/17/2023		(49,360	)
Bank of America, NA	PEN	98,088	USD	25,752		05/17/2023		(689,599	)
Bank of America, NA	CHF	3,454	USD	3,814		05/24/2023		(59,255	)
Bank of America, NA	GBP	9,694	USD	12,008		05/24/2023		(180,454	)
Bank of America, NA	USD	1,753	CHF	1,615		05/24/2023		58,013
Bank of America, NA	USD	3,130	CHF	2,778		05/24/2023		(14,427	)

36    ^|    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)
Bank of America, NA	USD	17,070	GBP	13,940		05/24/2023	$	457,854
Bank of America, NA	CAD	4,407	USD	3,271		06/09/2023		15,647
Bank of America, NA	CAD	2,077	USD	1,530		06/09/2023		(4,047	)
Bank of America, NA	TWD	65,892	USD	2,150		06/15/2023		318
Bank of America, NA	USD	19,335	JPY	2,569,803		06/15/2023		(347,963	)
Bank of America, NA	USD	5,948	TWD	180,138		06/15/2023		(71,561	)
Bank of America, NA	DKK	13,713	USD	2,035		06/21/2023		1,269
Bank of America, NA	SEK	23,709	USD	2,309		06/21/2023		(9,268	)
Bank of America, NA	NZD	1,664	USD	1,033		06/22/2023		4,494
Bank of America, NA	USD	4,356	NZD	7,014		06/22/2023		(18,944	)
Bank of America, NA	CZK	202,144	USD	9,476		07/20/2023		43,084
Bank of America, NA	USD	13,484	HUF	4,695,253		07/20/2023		69,201
Bank of America, NA	KRW	9,613,712	USD	7,266		07/27/2023		42,666
Bank of America, NA	USD	1,298	KRW	1,733,264		07/27/2023		4,227
Bank of America, NA	USD	2,704	PHP	150,931		07/27/2023		18,377
Bank of New York (The)	GBP	665	USD	820		05/24/2023		(16,629	)
Barclays Bank PLC	EUR	8,710	USD	9,384		05/11/2023		(218,607	)
Barclays Bank PLC	USD	3,202	PEN	12,082		05/17/2023		54,931
Barclays Bank PLC	CHF	25,640	USD	27,712		05/24/2023		(1,042,362	)
Barclays Bank PLC	GBP	2,603	USD	3,224		05/24/2023		(49,065	)
Barclays Bank PLC	USD	10,001	CHF	9,143		05/24/2023		252,776
Barclays Bank PLC	USD	2,533	CAD	3,391		06/09/2023		(28,380	)
Barclays Bank PLC	AUD	12,754	USD	8,554		06/15/2023		98,365
Barclays Bank PLC	USD	4,892	AUD	7,359		06/15/2023		(13,117	)
Barclays Bank PLC	MYR	13,090	USD	2,977		06/22/2023		24,287
Barclays Bank PLC	MYR	17,907	USD	3,980		06/22/2023		(59,549	)
Barclays Bank PLC	USD	9,225	INR	761,100		06/22/2023		63,485
Barclays Bank PLC	USD	1,190	MYR	5,276		06/22/2023		358
Barclays Bank PLC	USD	1,548	NZD	2,519		06/23/2023		9,018
Barclays Bank PLC	PLN	28,597	USD	6,845		07/20/2023		4,258
BNP Paribas SA	USD	1,043	PHP	58,054		07/27/2023		4,379
Citibank, NA	EUR	7,987	USD	8,505		05/11/2023		(300,631	)
Citibank, NA	USD	792	MXN	15,022		05/25/2023		39,219
Citibank, NA	CAD	2,432	USD	1,799		06/09/2023		2,387
Citibank, NA	SEK	6,765	USD	662		06/21/2023		560
Citibank, NA	USD	729	SEK	7,484		06/21/2023		2,955
Deutsche Bank AG	EUR	1,145	USD	1,248		05/11/2023		(13,822	)
Deutsche Bank AG	COP	22,747,299	USD	4,866		05/17/2023		40,005
Deutsche Bank AG	USD	10,197	COP	49,363,134		05/17/2023		274,878
Deutsche Bank AG	USD	6,290	GBP	5,066		05/24/2023		80,121
Deutsche Bank AG	MXN	74,078	USD	4,018		05/25/2023		(83,054	)
Deutsche Bank AG	USD	19,262	MXN	364,066		05/25/2023		893,893
Deutsche Bank AG	USD	3,515	ZAR	64,534		06/22/2023		(3,331	)
Deutsche Bank AG	PHP	477,816	USD	8,653		07/27/2023		35,598
Goldman Sachs Bank USA	EUR	2,636	USD	2,886		05/11/2023		(20,295	)
Goldman Sachs Bank USA	USD	2,145	GBP	1,753		05/24/2023		58,950
Goldman Sachs Bank USA	USD	1,621	BRL	8,175		06/02/2023		8,043
Goldman Sachs Bank USA	CAD	2,292	USD	1,683		06/09/2023		(9,819	)
Goldman Sachs Bank USA	USD	21,899	CAD	29,867		06/09/2023		162,280
Goldman Sachs Bank USA	USD	9,238	INR	762,971		06/22/2023		72,823
Goldman Sachs Bank USA	USD	1,027	NZD	1,652		06/22/2023		(5,118	)

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)
Goldman Sachs Bank USA	USD	2,100	CNH	14,497		07/07/2023	$	3,138
JPMorgan Chase Bank, NA	EUR	1,111	USD	1,226		05/11/2023		916
JPMorgan Chase Bank, NA	USD	1,441	EUR	1,303		05/11/2023		(4,935	)
JPMorgan Chase Bank, NA	SGD	1,090	USD	811		05/15/2023		(6,568	)
JPMorgan Chase Bank, NA	CHF	635	USD	718		05/24/2023		5,545
JPMorgan Chase Bank, NA	TWD	114,246	USD	3,778		06/15/2023		51,339
JPMorgan Chase Bank, NA	USD	1,016	JPY	134,700		06/15/2023		(20,655	)
JPMorgan Chase Bank, NA	USD	3,585	INR	296,729		06/22/2023		35,832
Morgan Stanley Capital Services, Inc.	USD	864	EUR	800		05/11/2023		17,610
Morgan Stanley Capital Services, Inc.	USD	2,566	PEN	9,646		05/17/2023		34,404
Morgan Stanley Capital Services, Inc.	USD	1,835	CHF	1,705		05/24/2023		77,484
Morgan Stanley Capital Services, Inc.	USD	3,243	MXN	58,920		05/25/2023		18,574
Morgan Stanley Capital Services, Inc.	USD	9,562	AUD	14,331		06/15/2023		(61,405	)
Morgan Stanley Capital Services, Inc.	NOK	119,084	USD	11,322		06/21/2023		120,588
Morgan Stanley Capital Services, Inc.	SEK	55,323	USD	5,387		06/21/2023		(21,731	)
Morgan Stanley Capital Services, Inc.	INR	221,227	USD	2,690		06/22/2023		(9,846	)
Morgan Stanley Capital Services, Inc.	MYR	25,838	USD	5,811		06/22/2023		(16,996	)
Morgan Stanley Capital Services, Inc.	CNH	119,317	USD	17,446		07/07/2023		134,598
Morgan Stanley Capital Services, Inc.	CNH	25,395	USD	3,678		07/07/2023		(6,728	)
Morgan Stanley Capital Services, Inc.	USD	690	CNH	4,716		07/07/2023		(5,320	)
Morgan Stanley Capital Services, Inc.	IDR	18,000,518	USD	1,221		07/12/2023		(5,286	)
Morgan Stanley Capital Services, Inc.	USD	20,130	IDR	303,159,850		07/12/2023		515,159
Natwest Markets PLC	USD	1,061	EUR	985		05/11/2023		25,266
Natwest Markets PLC	USD	815	SGD	1,090		05/15/2023		2,066
Standard Chartered Bank	USD	1,231	CLP	1,005,321		05/17/2023		12,055
State Street Bank & Trust Co.	USD	2,150	EUR	1,989		05/11/2023		42,976
State Street Bank & Trust Co.	GBP	238	USD	295		05/24/2023		(4,718	)
State Street Bank & Trust Co.	CAD	160	USD	118		06/09/2023		153
State Street Bank & Trust Co.	CAD	69	USD	51		06/09/2023		(137	)
State Street Bank & Trust Co.	USD	976	CAD	1,331		06/09/2023		6,764
State Street Bank & Trust Co.	AUD	196	USD	131		06/15/2023		840
State Street Bank & Trust Co.	USD	158	JPY	20,972		06/15/2023		(2,881	)
State Street Bank & Trust Co.	NOK	10,198	USD	970		06/21/2023		10,783
State Street Bank & Trust Co.	USD	916	SEK	9,430		06/21/2023		5,912
State Street Bank & Trust Co.	IDR	36,833,815	USD	2,500		07/12/2023		(8,646	)
State Street Bank & Trust Co.	USD	811	HKD	6,310		07/12/2023		(4,934	)
State Street Bank & Trust Co.	THB	624,269	USD	18,392		07/13/2023		(17,934	)

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)
State Street Bank & Trust Co.	USD	2,800	THB	94,990		07/13/2023	$	1,698
State Street Bank & Trust Co.	USD	2,240	THB	75,848		07/13/2023		(3,266	)
UBS AG	USD	703	EUR	636		05/11/2023		(2,213	)
UBS AG	COP	5,997,603	USD	1,332		05/17/2023		59,539
UBS AG	USD	585	JPY	77,404		06/15/2023		(12,711	)
							$	1,307,398

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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

Citibank, NA

USD

30,950

03/18/2031

2.378

%

CPI

#

Maturity

$

225,520

$

– 0

–

$

225,520

Goldman Sachs International

USD

110,190

04/25/2030

1.900

%

CPI

#

Maturity

3,155,524

– 0

–

3,155,524

Goldman Sachs International

USD

58,060

03/16/2031

2.289

%

CPI

#

Maturity

648,741

– 0

–

648,741

$

4,029,785

$

– 0

–

$

4,029,785

# 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
Bank of America, NA
MLABGLIN	SOFR plus 0.25%	Quarterly		USD	30,650		04/15/2024	$	4,603
Merrill Lynch International
Bloomberg Commodity Index	0.00%	Maturity		USD	45,331		06/15/2023		(170,292	)
Pay Total Return on Reference Obligation
UBS AG
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR plus 0.32%	Quarterly		USD	40,258		09/15/2023		(911,498	)
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR plus 0.25%	Quarterly		USD	2,460		02/15/2024		137,267
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR plus 0.24%	Quarterly		USD	1,843		02/15/2024		103,127
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR plus 0.25%	Quarterly		USD	1,626		02/15/2024		90,721
								$	(746,072	)

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

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

(b) Non-income producing security.

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

(d) Fair valued by the Adviser.

(e) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $8,069,139 or 0.9% of net assets.

(f) 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.

(g) Affiliated investments.

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

Currency Abbreviations:

AUD – Australian Dollar BRL – Brazilian Real CAD – Canadian Dollar CHF – Swiss Franc CLP – Chilean Peso CNH – Chinese Yuan Renminbi (Offshore) COP – Colombian Peso CZK – Czech Koruna DKK – Danish Krone EUR – Euro GBP – Great British Pound HKD – Hong Kong Dollar HUF – Hungarian Forint IDR – Indonesian Rupiah 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 SEK – Swedish Krona SGD – Singapore Dollar THB – Thailand Baht TWD – New Taiwan Dollar USD – United States Dollar ZAR – South African Rand

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

KC HRW – Kansas City Hard Red Winter

LME – London Metal Exchange

NAREIT – National Association of Real Estate Investment Trusts

OBFR – Overnight Bank Funding Rate

PJSC – Public Joint Stock Company

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

REG – Registered Shares

REIT – Real Estate Investment Trust

SOFR – Secured Overnight Financing Rate

SPI – Share Price Index

TOPIX – Tokyo Price Index

TSX – Toronto Stock Exchange

ULSD – Ultra-Low Sulfur Diesel

WTI – West Texas Intermediate

See notes to consolidated financial statements.

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

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $586,525,873)	$	606,585,183	(a)
Affiliated issuers (cost $288,788,340—including investment of cash collateral for securities loaned of $6,149,135)		288,788,340
Cash		263
Cash collateral due from broker		18,753,836
Foreign currencies, at value (cost $4,011,568)		3,982,291
Unrealized appreciation on forward currency exchange contracts		4,891,251
Unrealized appreciation on inflation swaps		4,029,785
Receivable for variation margin on futures		2,313,688
Unaffiliated dividends receivable		1,634,116
Affiliated dividends receivable		1,128,071
Receivable for capital stock sold		651,129
Unrealized appreciation on total return swaps		335,718
Receivable for investment securities sold		209,984
Foreign witholding tax reclaims		149,387
Total assets		933,453,042
Liabilities
Cash collateral due to broker		6,270,000
Payable for collateral received on securities loaned		5,867,601
Unrealized depreciation on forward currency exchange contracts		3,583,853
Payable for investment securities purchased and foreign currency transactions		2,354,444
Unrealized depreciation on total return swaps		1,081,790
Advisory fee payable		551,235
Collateral due to securities lending agent		281,534
Distribution fee payable		123,005
Payable for capital stock redeemed		114,372
Foreign capital gains tax payable		36,389
Administrative fee payable		30,292
Transfer Agent fee payable		26,966
Directors’ fees payable		3,546
Accrued expenses		381,049
Total liabilities		20,706,076
Net Assets	$	912,746,966
Composition of Net Assets
Capital stock, at par	$	106,187
Additional paid-in capital		1,126,965,821
Accumulated loss		(214,325,042	)
Net Assets	$	912,746,966

(a) Includes securities on loan with a value of $17,161,638 (see Note E).

See notes to consolidated financial statements.

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

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	$	6,817,285		777,417	$	8.77	*
C	$	491,637		54,907	$	8.95
Advisor	$	27,869,107		3,184,131	$	8.75
R	$	70,504		7,992	$	8.82
K	$	1,048,061		121,148	$	8.65
I	$	25,412,602		2,940,386	$	8.64
1	$	646,887,332		75,498,197	$	8.57
2	$	8,817		1,000	$	8.82
Z	$	204,141,621		23,601,880	$	8.65

* The maximum offering price per share for Class A shares was $9.16 which reflects a sales charge of 4.25%.

See notes to consolidated financial statements.

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

CONSOLIDATED STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $553,500)	$	11,333,794
Affiliated issuers		5,725,786
Interest (net of foreign taxes withheld of $5)		269,148
Securities lending income		189,654
Foreign withholding tax reclaims (see Note A.4)		149,387		$	17,667,769
Expenses
Advisory fee (see Note B)		3,836,974
Distribution fee—Class A		8,772
Distribution fee—Class C		2,807
Distribution fee—Class R		174
Distribution fee—Class K		1,352
Distribution fee—Class 1		787,226
Transfer agency—Class A		4,427
Transfer agency—Class C		359
Transfer agency—Advisor Class		18,603
Transfer agency—Class R		90
Transfer agency—Class K		1,087
Transfer agency—Class I		4,003
Transfer agency—Class 1		75,114
Transfer agency—Class Z		41,887
Custody and accounting		158,845
Registration fees		78,087
Audit and tax		60,848
Administrative		45,259
Legal		28,249
Printing		21,140
Directors’ fees		16,156
Miscellaneous		23,799
Total expenses before bank overdraft expense		5,215,258
Bank overdraft expense		34,255
Total expenses		5,249,513
Less: expenses waived and reimbursed by the Adviser (see Notes B & E)		(138,236	)
Net expenses					5,111,277
Net investment income					12,556,492

See notes to consolidated financial statements.

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

CONSOLIDATED STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	(9,891,687	)
Forward currency exchange contracts		(2,197,799	)
Futures		(30,133,924	)
Swaps		6,428,424
Foreign currency transactions		509,499
Net change in unrealized appreciation (depreciation) of:
Investments(b)		59,200,564
Forward currency exchange contracts		1,123,952
Futures		9,855,579
Swaps		(8,157,089	)
Foreign currency denominated assets and liabilities		79,207
Net gain on investment and foreign currency transactions		26,816,726
Net Increase in Net Assets from Operations	$	39,373,218

(a) Net of foreign realized capital gains taxes of $1,203.

(b) Net of increase in accrued foreign capital gains taxes on unrealized gains of $22,063.

See notes to consolidated financial statements.

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

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	12,556,492		$	19,868,486
Net realized gain (loss) on investment and foreign currency transactions		(35,285,487	)		118,941,683
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		62,102,213			(227,760,785	)
Contributions from Affiliates (see Note B)		– 0	–		1,612
Net increase (decrease) in net assets from operations		39,373,218			(88,949,004	)
Distributions to Shareholders
Class A		(527,694	)		(464,964	)
Class C		(41,047	)		(12,613	)
Advisor Class		(2,418,666	)		(1,665,845	)
Class R		(4,679	)		(5,635	)
Class K		(80,877	)		(108,197	)
Class I		(2,013,871	)		(2,495,051	)
Class 1		(50,008,810	)		(61,937,570	)
Class 2		(737	)		(981	)
Class Z		(26,372,386	)		(54,143,835	)
Capital Stock Transactions
Net decrease		(74,837,617	)		(92,876,275	)
Total decrease		(116,933,166	)		(302,659,970	)
Net Assets
Beginning of period		1,029,680,132			1,332,340,102
End of period	$	912,746,966		$	1,029,680,132

See notes to consolidated financial statements.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 non-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 a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary. As of April 30, 2023, consolidated net assets of the Fund were $912,746,966, of which $100,420,405, or 11%, 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 April 30, 2023, AllianceBernstein L.P. (the “Adviser”), was the sole shareholder of Class 2 shares. Class A shares are sold with a front-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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 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 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, the Adviser serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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. 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., 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

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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.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 April 30, 2023:

Investments in Securities:	Level 1			Level 2			Level 3			Total
Assets:
Common Stocks:
Equity Real Estate Investment Trusts (REITs)	$	149,612,808		$	46,296,238		$	– 0	–	$	195,909,046
Energy		40,161,330			36,961,541			0	(a)		77,122,871
Materials		23,054,568			35,689,940			0	(a)		58,744,508
Capital Goods		31,231,572			17,412,009			– 0	–		48,643,581
Real Estate Management & Development		1,473,123			38,549,038			– 0	–		40,022,161
Utilities		14,475,214			13,133,471			– 0	–		27,608,685
Software & Services		16,096,922			– 0	–		– 0	–		16,096,922
Pharmaceuticals & Biotechnology		11,143,923			4,091,753			– 0	–		15,235,676
Food Beverage & Tobacco		10,942,996			4,252,698			– 0	–		15,195,694
Technology Hardware & Equipment		10,109,451			2,804,036			– 0	–		12,913,487
Banks		446,792			8,728,450			– 0	–		9,175,242
Semiconductors & Semiconductor Equipment		5,964,729			1,932,066			– 0	–		7,896,795
Insurance		6,181,429			1,464,301			– 0	–		7,645,730
Consumer Durables & Apparel		3,244,850			3,817,985			– 0	–		7,062,835
Consumer Discretionary Distribution & Retail		5,645,862			1,307,698			– 0	–		6,953,560
Consumer Services		5,393,141			1,511,033			– 0	–		6,904,174
Financial Services		6,583,354			– 0	–		– 0	–		6,583,354
Health Care Equipment & Services		6,042,540			252,718			0	(a)		6,295,258
Media & Entertainment		5,419,683			417,843			– 0	–		5,837,526
Transportation		1,550,312			4,232,280			– 0	–		5,782,592
Telecommunication Services		– 0	–		5,174,642			– 0	–		5,174,642

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Commercial & Professional Services

$

4,383,567

$

555,776

$

– 0

–

$

4,939,343

Automobiles & Components

2,433,848

945,117

– 0

–

3,378,965

Consumer Staples Distribution & Retail

2,167,879

– 0

–

– 0

–

2,167,879

Household & Personal Products

1,494,494

– 0

–

– 0

–

1,494,494

Investment Companies

11,800,163

– 0

–

– 0

–

11,800,163

Rights

– 0

–

– 0

–

0

(a)

– 0

–

Short-Term Investments

282,639,205

– 0

–

– 0

–

282,639,205

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

6,149,135

– 0

–

– 0

–

6,149,135

Total Investments in Securities

665,842,890

229,530,633

0

(a)

895,373,523

Other Financial Instruments(b):

Assets:

Futures

3,767,302

– 0

–

– 0

–

3,767,302

(c)

Forward Currency Exchange Contracts

– 0

–

4,891,251

– 0

–

4,891,251

Inflation (CPI) Swaps

– 0

–

4,029,785

– 0

–

4,029,785

Total Return Swaps

– 0

–

335,718

– 0

–

335,718

Liabilities:

Futures

(3,463,577

)

– 0

–

– 0

–

(3,463,577

)(c)

Forward Currency Exchange Contracts

– 0

–

(3,583,853

)

– 0

–

(3,583,853

)

Total Return Swaps

– 0

–

(1,081,790

)

– 0

–

(1,081,790

)

Total

$

666,146,615

$

234,121,744

$

0

(a)

$

900,268,359

(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, written options and written swaptions which are valued at market value.

(c) 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.

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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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. The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on, among other things, a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention.

In consideration of recent decisions rendered by the European courts, the Fund received reclaims filed to recover taxes withheld on dividends earned from certain European Union countries during calendar years 2018 through 2020. These filings are subject to various administrative and judicial proceedings within these countries. For the six months ended April 30, 2023, the Fund successfully recovered taxes withheld by France which is reflected in the statement of operations. No other amounts for additional tax reclaims are disclosed in the financial statements due to the uncertainty as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment.

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.

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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 consolidated 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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 .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 extraordinary expenses, interest expense, and acquired fund

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 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, 2024. For the six months ended April 30, 2023, such reimbursement amounted to $17.

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 six months ended April 30, 2023, the reimbursement for such services amounted to $45,259.

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 $88,288 for the six months ended April 30, 2023.

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 $594 from the sale of Class A shares and received $2 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $137,104.

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A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	284,520	$	368,998	$	370,879	$	282,639	$	5,726
Government Money Market Portfolio*		5,936		62,476		62,263		6,149		53
Total							$	288,788	$	5,779

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

During the year ended October 31, 2022, the Adviser reimbursed the Fund $1,612 for trading losses incurred due to a trade entry error.

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 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 $160,477, $17,034, $19,742 and $1,943,739 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	211,770,458		$	363,590,194
U.S. government securities		– 0	–		– 0	–

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	75,683,880
Gross unrealized depreciation		(50,729,734	)
Net unrealized appreciation	$	24,954,146

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 for non-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

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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.

During the six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-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 six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging and non-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 for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as

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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 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 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.

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.

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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 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 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.

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 six months ended April 30, 2023, the Fund held inflation (CPI) swaps for hedging and non-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 six months ended April 30, 2023, the Fund held total return swaps for hedging and non-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 six months ended April 30, 2023, 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
Equity contracts					Payable for variation margin on futures	$	447,051	*
Commodity contracts	Receivable for variation margin on futures	$	3,767,302	*	Payable for variation margin on futures		3,016,526	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		4,891,251		Unrealized depreciation on forward currency exchange contracts		3,583,853
Interest rate contracts	Unrealized appreciation on inflation swaps		4,029,785

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	Asset Derivatives			Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value		Consolidated Statement of Assets and Liabilities Location	Fair Value
Commodity contracts				Unrealized depreciation on total return swaps	$	170,292
Equity contracts	Unrealized appreciation on total return swaps	$	335,718	Unrealized depreciation on total return swaps		911,498
Total		$	13,024,056		$	8,129,220

* 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.

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 futures; Net change in unrealized appreciation (depreciation) of futures	$	(842,529	)	$	(668,432	)
Commodity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures		(29,291,395	)		10,524,011
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		(2,197,799	)		1,123,952
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		2,277,000			(3,874,276	)

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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)
Commodity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps	$	– 0	–	$	(170,292	)
Equity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		4,151,424			(4,112,521	)
Total		$	(25,903,299	)	$	2,822,442

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Futures:
Average notional amount of buy contracts	$	318,394,917
Average notional amount of sale contracts	$	30,343,888
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	287,487,938
Average principal amount of sale contracts	$	287,618,107
Inflation Swaps:
Average notional amount	$	237,592,857
Total Return Swaps:
Average notional amount	$	65,246,584

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 April 30, 2023. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

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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
Bank of America, NA	$	1,529,046	$	(1,503,164	)	$	– 0	–	$	– 0	–	$	25,882
Barclays Bank PLC		507,478		(507,478	)		– 0	–		– 0	–		– 0	–
BNP Paribas SA		4,379		– 0	–		– 0	–		– 0	–		4,379
Citibank, NA		270,641		(270,641	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		1,324,495		(100,207	)		(660,000	)		– 0	–		564,288
Goldman Sachs Bank USA/Goldman Sachs International		4,109,499		(35,232	)		(3,880,000	)		– 0	–		194,267
JPMorgan Chase Bank, NA		93,632		(32,158	)		– 0	–		– 0	–		61,474
Morgan Stanley Capital Services, Inc.		918,417		(127,312	)		(450,000	)		– 0	–		341,105
Natwest Markets PLC		27,332		– 0	–		– 0	–		– 0	–		27,332
Standard Chartered Bank		12,055		– 0	–		– 0	–		– 0	–		12,055
State Street Bank & Trust Co.		69,126		(42,516	)		– 0	–		– 0	–		26,610
UBS AG		390,654		(390,654	)		– 0	–		– 0	–		– 0	–
Total	$	9,256,754	$	(3,009,362	)	$	(4,990,000	)	$	– 0	–	$	1,257,392	^
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	$	1,503,164	$	(1,503,164	)	$	– 0	–	$	– 0	–	$	– 0	–
Bank of New York (The)		16,629		– 0	–		– 0	–		– 0	–		16,629
Barclays Bank PLC		1,411,080		(507,478	)		– 0	–		– 0	–		903,602
Citibank, NA		300,631		(270,641	)		(29,990	)		– 0	–		– 0	–
Deutsche Bank AG		100,207		(100,207	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		35,232		(35,232	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA		32,158		(32,158	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services, Inc.		127,312		(127,312	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		42,516		(42,516	)		– 0	–		– 0	–		– 0	–
UBS AG		926,422		(390,654	)		– 0	–		– 0	–		535,768
Total	$	4,495,351	$	(3,009,362	)	$	(29,990	)	$	– 0	–	$	1,455,999	^

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

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^ 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 Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Merrill Lynch International	$	170,292	$	– 0	–	$	(170,292	)	$	– 0	–	$	– 0	–
Total	$	170,292	$	– 0	–	$	(170,292	)	$	– 0	–	$	0	^

* 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 in non-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/or non-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 any non-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 the Fund receives non-cash collateral, the Fund will receive a fee from the

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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 dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. 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 six months ended April 30, 2023 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
$	17,161,638	$	6,149,135	$	12,195,993	$	136,503	$	53,151	$	1,115

* As of April 30, 2023.

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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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		88,750			349,177		$	788,148		$	3,423,280
Shares issued in reinvestment of dividends		56,810			45,750			497,656			433,245
Shares converted from Class C		59			10,676			520			109,344
Shares redeemed		(99,939	)		(164,526	)		(890,646	)		(1,613,537	)
Net increase		45,680			241,077		$	395,678		$	2,352,332
Class C
Shares sold		25			55,339		$	233		$	550,702
Shares issued in reinvestment of dividends		4,357			1,299			39,079			12,612
Shares converted to Class A		(57	)		(10,463	)		(520	)		(109,344	)
Shares redeemed		(11,062	)		(2,901	)		(99,093	)		(28,381	)
Net increase (decrease)		(6,737	)		43,274		$	(60,301	)	$	425,589
Advisor Class
Shares sold		533,114			2,640,030		$	4,670,881		$	26,830,283
Shares issued in reinvestment of dividends		189,886			135,873			1,657,704			1,282,638
Shares redeemed		(1,009,308	)		(982,915	)		(8,879,223	)		(9,652,710	)
Net increase (decrease)		(286,308	)		1,792,988		$	(2,550,638	)	$	18,460,211
Class R
Shares sold		886			926		$	7,991		$	9,244
Shares issued in reinvestment of dividends		530			591			4,678			5,634
Shares redeemed		(1,059	)		(26	)		(9,821	)		(262	)
Net increase		357			1,491		$	2,848		$	14,616

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	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class K
Shares sold		28,387			123,524		$	245,763		$	1,212,120
Shares issued in reinvestment of dividends		9,361			11,559			80,877			108,197
Shares redeemed		(34,040	)		(125,956	)		(296,049	)		(1,234,185	)
Net increase		3,708			9,127		$	30,591		$	86,132
Class I
Shares sold		96,101			541,727		$	841,917		$	5,327,187
Shares issued in reinvestment of dividends		233,628			267,422			2,013,871			2,495,050
Shares redeemed		(407,709	)		(315,402	)		(3,786,084	)		(3,078,805	)
Net increase (decrease)		(77,980	)		493,747		$	(930,296	)	$	4,743,432
Class 1
Shares sold		7,601,148			14,122,033		$	65,343,932		$	137,649,533
Shares issued in reinvestment of dividends		3,020,774			5,191,186			25,827,622			48,122,290
Shares redeemed		(6,451,888	)		(11,984,056	)		(56,382,483	)		(117,086,783	)
Net increase		4,170,034			7,329,163		$	34,789,071		$	68,685,040
Class Z
Shares sold		9,338			14,904,457		$	82,133		$	150,963,872
Shares issued in reinvestment of dividends		3,055,896			5,796,984			26,372,384			54,143,834
Shares redeemed		(15,324,634	)		(41,035,392	)		(132,969,087	)		(392,751,333	)
Net decrease		(12,259,400	)		(20,333,951	)	$	(106,514,570	)	$	(187,643,627)

There were no transactions in capital shares for Class 2 for the six months ended April 30, 2023 and the year ended October 31, 2022.

At April 30, 2023, certain AB mutual funds owned approximately 22% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

NOTE G

Risks Involved in Investing in the Fund

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

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of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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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.

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 are or 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-U.S.) Risk—Investments in securities of non-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 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 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.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE H

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE I

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	120,834,691	$	34,109,559
Total distributions paid	$	120,834,691	$	34,109,559

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	77,586,580
Accumulated capital and other losses		(18,244,552	)(a)
Unrealized appreciation (depreciation)		(366,906,504	)(b)
Total accumulated earnings (deficit)	$	(307,564,476	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $18,244,552. During the fiscal year, the Fund utilized $43,146,571 of capital loss carry forwards to offset current year net realized gains.

(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, and the tax deferral of losses on wash sales.

(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, 2022, the Fund had a net short-term capital loss carryforward of $18,244,552, which may be carried forward for an indefinite period.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE J

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.14			$  10.81			$  7.65			$  8.66			$  8.53			$  8.90
Income From Investment Operations
Net investment income(a)(b)		.10			.14			.27			.09			.12			.14
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(.86	)		3.14			(.96	)		.13			(.23	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.34			(.72	)		3.41			(.87	)		.25			(.09	)
Less: Dividends
Dividends from net investment income		(.71	)		(.95	)		(.25	)		(.14	)		(.12	)		(.28	)
Net asset value, end of period		$  8.77			$  9.14			$  10.81			$  7.65			$  8.66			$  8.53
Total Return
Total investment return based on net asset value(d)*		3.72	%		(7.01	)%		45.48	%+		(10.11	)%		2.97	%		(1.11	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,817			$6,690			$5,306			$6,926			$10,634			$11,478
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.19	%^		1.16	%		1.29	%		1.29	%		1.30	%		1.26	%
Expenses, before waivers/reimbursements(e)(f)‡		1.22	%^		1.18	%		1.39	%		1.40	%		1.32	%		1.27	%
Net investment income(b)		2.26	%^		1.46	%		2.86	%		1.10	%		1.42	%		1.52	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.31			$  10.86			$  7.66			$  8.63			$  8.49			$  8.83
Income From Investment Operations
Net investment income (loss)(a)(b)		.07			.07			(.49	)		.03			.06			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(.89	)		3.86			(.95	)		.11			(.23	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.31			(.82	)		3.37			(.92	)		.17			(.16	)
Less: Dividends
Dividends from net investment income		(.67	)		(.73	)		(.17	)		(.05	)		(.03	)		(.18	)
Net asset value, end of period		$  8.95			$  9.31			$  10.86			$  7.66			$  8.63			$  8.49
Total Return
Total investment return based on net asset value(d)*		3.38	%		(7.71	)%		44.41	%		(10.74	)%+		2.05	%+		(1.82	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$492			$574			$199			$508			$754			$1,225
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.94	%^		1.94	%		2.04	%		2.04	%		2.05	%		2.01	%
Expenses, before waivers/reimbursements(e)(f)‡		1.97	%^		1.96	%		2.19	%		2.15	%		2.07	%		2.02	%
Net investment income (loss)(b)		1.50	%^		.72	%		(5.20	)%		.34	%		.66	%		.78	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.14			$  10.79			$  7.63			$  8.63			$  8.51			$  8.89
Income From Investment Operations
Net investment income(a)(b)		.11			.17			.16			.11			.14			.16
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			(.87	)		3.27			(.95	)		.12			(.24	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.34			(.70	)		3.43			(.84	)		.26			(.08	)
Less: Dividends
Dividends from net investment income		(.73	)		(.95	)		(.27	)		(.16	)		(.14	)		(.30	)
Net asset value, end of period		$  8.75			$  9.14			$  10.79			$  7.63			$  8.63			$  8.51
Total Return
Total investment return based on net asset value(d)*		3.73	%		(6.64	)%		45.82	%+		(9.79	)%		3.15	%		(.96	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$27,869			$31,703			$18,096			$11,761			$18,611			$26,030
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.94	%^		.91	%		1.04	%		1.04	%		1.05	%		1.01	%
Expenses, before waivers/reimbursements(e)(f)‡		.97	%^		.93	%		1.17	%		1.14	%		1.07	%		1.02	%
Net investment income(b)		2.51	%^		1.75	%		1.60	%		1.33	%		1.66	%		1.77	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class R
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.16			$  10.83			$  7.53			$  8.53			$  8.40			$  8.79
Income From Investment Operations
Net investment income (loss)(a)(b)		.09			.11			(.02	)		.07			.10			.11
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			(.88	)		3.41			(.95	)		.11			(.23	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.32			(.77	)		3.39			(.88	)		.21			(.12	)
Less: Dividends
Dividends from net investment income		(.66	)		(.90	)		(.09	)		(.12	)		(.08	)		(.27	)
Net asset value, end of period		$  8.82			$  9.16			$  10.83			$  7.53			$  8.53			$  8.40
Total Return
Total investment return based on net asset value(d)*		3.51	%		(7.32	)%		45.23	%+		(10.32	)%		2.62	%		(1.47	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$71			$70			$67			$54			$271			$271
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.53	%^		1.53	%		1.54	%		1.54	%		1.55	%		1.55	%
Expenses, before waivers/reimbursements(e)(f)‡		1.60	%^		1.59	%		1.57	%		1.60	%		1.57	%		1.58	%
Net investment income (loss)(b)		1.92	%^		1.06	%		(.19	)%		.92	%		1.16	%		1.24	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class K
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.02			$  10.68			$  7.55			$  8.55			$  8.42			$  8.80
Income From Investment Operations
Net investment income (loss)(a)(b)		.10			.13			(.02	)		.08			.12			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			(.85	)		3.39			(.94	)		.13			(.23	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.33			(.72	)		3.37			(.86	)		.25			(.10	)
Less: Dividends
Dividends from net investment income		(.70	)		(.94	)		(.24	)		(.14	)		(.12	)		(.28	)
Net asset value, end of period		$  8.65			$  9.02			$  10.68			$  7.55			$  8.55			$  8.42
Total Return
Total investment return based on net asset value(d)*		3.63	%		(7.08	)%		45.60	%+		(10.10	)%		3.03	%		(1.20	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,048			$1,059			$1,157			$1,453			$2,069			$2,604
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.27	%^		1.26	%		1.26	%		1.28	%		1.27	%		1.26	%
Expenses, before waivers/reimbursements(e)(f)‡		1.29	%^		1.28	%		1.28	%		1.29	%		1.28	%		1.27	%
Net investment income (loss)(b)		2.21	%^		1.33	%		(.18	)%		1.08	%		1.44	%		1.52	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class I
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.03			$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Income From Investment Operations
Net investment income(a)(b)		.11			.17			.09			.12			.15			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			(.86	)		3.32			(.94	)		.13			(.22	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.34			(.69	)		3.41			(.82	)		.28			(.05	)
Less: Dividends
Dividends from net investment income		(.73	)		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  8.64			$  9.03			$  10.70			$  7.58			$  8.58			$  8.46
Total Return
Total investment return based on net asset value(d)*		3.84	%		(6.75	)%		46.03	%+		(9.76	)%		3.39	%		(.69	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$25,413			$27,260			$27,013			$21,817			$23,541			$12,213
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.84	%^		.86	%		.84	%		.86	%		.85	%		.83	%
Expenses, before waivers/reimbursements(e)(f)‡		.87	%^		.88	%		.85	%		.87	%		.86	%		.84	%
Net investment income(b)		2.61	%^		1.74	%		.88	%		1.49	%		1.79	%		1.96	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class 1
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  8.95			$  10.61			$  7.52			$  8.51			$  8.39			$  8.76
Income From Investment Operations
Net investment income(a)(b)		.10			.15			.13			.10			.13			.15
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			(.85	)		3.23			(.93	)		.12			(.22	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.33			(.70	)		3.36			(.83	)		.25			(.07	)
Less: Dividends
Dividends from net investment income		(.71	)		(.96	)		(.27	)		(.16	)		(.13	)		(.30	)
Net asset value, end of period		$  8.57			$  8.95			$  10.61			$  7.52			$  8.51			$  8.39
Total Return
Total investment return based on net asset value(d)*		3.73	%		(6.85	)%		45.63	%		(9.94	)%		3.14	%		(.92	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$646,886			$638,229			$678,946			$470,635			$608,485			$641,891
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.09	%^		1.08	%		1.08	%		1.10	%		1.09	%		1.08	%
Expenses, before waivers/reimbursements(e)(f)‡		1.12	%^		1.10	%		1.10	%		1.11	%		1.10	%		1.08	%
Net investment income(b)		2.37	%^		1.50	%		1.33	%		1.26	%		1.62	%		1.71	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class 2
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.20			$  10.88			$  7.70			$  8.71			$  8.58			$  8.96
Income From Investment Operations
Net investment income(a)(b)		.12			.18			.14			.12			.16			.18
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(.88	)		3.33			(.95	)		.13			(.24	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.36			(.70	)		3.47			(.83	)		.29			(.06	)
Less: Dividends
Dividends from net investment income		(.74	)		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  8.82			$  9.20			$  10.88			$  7.70			$  8.71			$  8.58
Total Return
Total investment return based on net asset value(d)*		3.91	%		(6.63	)%		46.10	%		(9.70	)%		3.46	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$9			$9			$11			$8			$9			$9
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.77	%^		.81	%		.83	%		.82	%		.81	%		.82	%
Expenses, before waivers/reimbursements(e)(f)‡		.79	%^		.83	%		.84	%		.84	%		.81	%		.82	%
Net investment income(b)		2.66	%^		1.78	%		1.45	%		1.53	%		1.90	%		1.95	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

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

	Class Z
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.04			$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Income From Investment Operations
Net investment income(a)(b)		.11			.17			.14			.12			.16			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(.85	)		3.27			(.94	)		.12			(.22	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.35			(.68	)		3.41			(.82	)		.28			(.05	)
Less: Dividends
Dividends from net investment income		(.74	)		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  8.65			$  9.04			$  10.70			$  7.58			$  8.58			$  8.46
Total Return
Total investment return based on net asset value(d)*		3.84	%		(6.64	)%		46.17	%		(9.75	)%		3.37	%		(.68	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$204,142			$324,086			$601,545			$415,967			$487,326			$1,013,733
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.84	%^		.83	%		.84	%		.85	%		.84	%		.83	%
Expenses, before waivers/reimbursements(e)(f)‡		.87	%^		.85	%		.85	%		.86	%		.85	%		.84	%
Net investment income(b)		2.61	%^		1.76	%		1.44	%		1.51	%		1.89	%		1.86	%
Portfolio turnover rate		30	%		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%^		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 83.

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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 six months ended April 30, 2023 and the years ended October 31, 2022, October 31, 2021, October 31, 2020, October 31, 2019 and October 31, 2018, such waiver amounted to .03% (annualized), .02%, .01%, .01%, .01% and .01%, respectively.

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

	Six Months Ended April 30, 2023 (unaudited)	Year Ended October 31,
		2022	2021			2020	2019	2018
Class A
Net of waivers/reimbursements	1.18%^	1.16%		1.29	%	1.29%	1.29%	1.26%
Before waivers/reimbursements	1.21%^	1.18%		1.39	%	1.40%	1.32%	1.27%
Class C
Net of waivers/reimbursements	1.94%^	1.94%		2.04	%	2.04%	2.04%	2.01%
Before waivers/reimbursements	1.96%^	1.96%		2.19	%	2.15%	2.07%	2.02%
Advisor Class
Net of waivers/reimbursements	.93%^	.91%		1.04	%	1.04%	1.04%	1.01%
Before waivers/reimbursements	.96%^	.93%		1.17	%	1.14%	1.07%	1.02%
Class R
Net of waivers/reimbursements	1.52%^	1.53%		1.54	%	1.54%	1.54%	1.55%
Before waivers/reimbursements	1.60%^	1.59%		1.57	%	1.60%	1.57%	1.58%
Class K
Net of waivers/reimbursements	1.26%^	1.26%		1.26	%	1.28%	1.27%	1.26%
Before waivers/reimbursements	1.29%^	1.28%		1.28	%	1.29%	1.28%	1.27%
Class I
Net of waivers/reimbursements	.84%^	.86%		.84	%	.86%	.84%	.83%
Before waivers/reimbursements	.86%^	.88%		.85	%	.87%	.85%	.84%
Class 1
Net of waivers/reimbursements	1.08%^	1.08%		1.08	%	1.10%	1.09%	1.08%
Before waivers/reimbursements	1.11%^	1.10%		1.10	%	1.11%	1.09%	1.08%
Class 2
Net of waivers/reimbursements	.77%^	.81%		.83	%	.82%	.81%	.82%
Before waivers/reimbursements	.79%^	.82%		.84	%	.84%	.81%	.82%
Class Z
Net of waivers/reimbursements	.83%^	.83%		.84	%	.85%	.83%	.83%
Before waivers/reimbursements	.86%^	.85%		.85	%	.86%	.84%	.84%

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended October 31, 2020 and October 31, 2019 by .02% and .07%, respectively.

+ 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 consolidated financial statements.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Vinod Chathlani⁽²⁾, Vice President Daniel J. Loewy⁽²⁾, Vice President Leon Zhu⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 in-person on August 2-3, 2022 (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 Vice President 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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.

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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 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 at the request of the directors. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits 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 the 1-, 3-, 5-, and 10-year periods ended May 31, 2022 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 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.

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The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President 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 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 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.

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. The information provided included a pro forma expense ratio to reflect changes to the Fund’s transfer agent out-of-pocket expense allocation effective November 1, 2021. The Adviser had agreed to cap the Fund’s expenses, but the directors noted that the Fund’s pro forma expense ratio was currently below the level of the Adviser’s cap. 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 pro forma expense ratio was acceptable.

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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 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

CORE

Core Opportunities Fund

Select US Equity Portfolio

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GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

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VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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

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Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

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Minnesota Portfolio

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New York Portfolio

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TAXABLE

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Income Fund

Intermediate Duration Portfolio

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Short Duration Income Portfolio

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ALTERNATIVES

All Market Real Return Portfolio

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Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

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CLOSED-END FUNDS

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EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

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AB ALL MARKET REAL RETURN PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

AMRR-0152-0423        

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB BOND INFLATION STRATEGY

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB BOND INFLATION STRATEGY    ^|    1

SEMI-ANNUAL REPORT

June 7, 2023

This report provides management’s discussion of fund performance for the AB Bond Inflation Strategy for the semi-annual reporting period ended April 30, 2023.

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

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB BOND INFLATION STRATEGY
Class 1 Shares1		4.40%		-2.35%
Class 2 Shares1		4.55%		-2.18%
Class A Shares		4.37%		-2.44%
Class C Shares		3.89%		-3.21%
Advisor Class Shares2		4.47%		-2.23%
Class R Shares2		4.19%		-2.66%
Class K Shares2		4.35%		-2.40%
Class I Shares2		4.46%		-2.23%
Class Z Shares2		4.42%		-2.18%
Bloomberg 1-10 Year TIPS Index		3.70%		-1.82%

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 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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Bloomberg 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended April 30, 2023.

During the six-month period, all share classes outperformed the benchmark, before sales charges. Sector allocation was the largest contributor, relative to the benchmark, from allocations to investment-grade corporate bonds, agency risk-sharing securities, US Treasury futures and collateralized loan obligations that outweighed losses from allocations to Consumer Price Index (“CPI”) swaps, high-yield corporate bonds and mortgage pass-through securities. Yield-curve positioning on the two- and five-year parts of the curve contributed more than losses from positioning on the 10-year

2    ^|    AB BOND INFLATION  STRATEGY abfunds.com

part of the curve. Overall positioning in US TIPS was a minor contributor to performance. Currency decisions were a minor detractor.

In the 12-month period, all share classes underperformed the benchmark, before sales charges. Sector allocation to high-yield corporate bonds, CPI swaps, US Treasury futures and interest rate swaps detracted more than gains from allocations to investment-grade corporate bonds and agency risk-sharing securities. Yield-curve positioning also detracted, mostly from positioning on the 10-year part of the curve that lost more than a gain from positioning on the two-year part of the curve. Overall positioning in TIPS contributed, as positioning in six-month and five-year TIPS contributed more than a loss from positioning in two-year TIPS. A currency position in the offshore Chinese renminbi was a minor contributor to performance.

The Fund’s heightened turnover rate of 101% was a result of the Fund shifting into more attractive government-related bonds. However, the Fund incurred lower turnover rate in non-government securities, which generally have higher transaction costs than government-related transactions.

During both periods, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were used to manage duration, country exposure and yield-curve positioning. CPI swaps were used to hedge inflation and for investment purposes. Credit default swaps were used in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. Developed-market government bonds rose the most in the US, Australia and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

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 considers 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 and non-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 nationally recognized statistical rating organization (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 and non-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 considers factors such as the relative risks and returns expected of potential investments and the costs of such transactions. The Adviser considers 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)

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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 and assignments; structured securities; mortgage-backed and other 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 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 1-10 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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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. 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: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 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.

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 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.

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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS (continued)

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or 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. 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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund 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 2.25% maximum front-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.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						2.03%
1 Year		-2.35%		-2.35%
5 Years		3.28%		3.28%
10 Years		1.82%		1.82%
CLASS 2 SHARES2						2.13%
1 Year		-2.18%		-2.18%
5 Years		3.40%		3.40%
10 Years		1.93%		1.93%
CLASS A SHARES						1.68%
1 Year		-2.44%		-4.61%
5 Years		3.13%		2.66%
10 Years		1.66%		1.43%
CLASS C SHARES						0.97%
1 Year		-3.21%		-4.13%
5 Years		2.37%		2.37%
10 Years3		0.91%		0.91%
ADVISOR CLASS SHARES4						1.97%
1 Year		-2.23%		-2.23%
5 Years		3.40%		3.40%
10 Years		1.93%		1.93%
CLASS R SHARES4						1.39%
1 Year		-2.66%		-2.66%
5 Years		2.88%		2.88%
10 Years		1.43%		1.43%
CLASS K SHARES4						1.70%
1 Year		-2.40%		-2.40%
5 Years		3.12%		3.12%
10 Years		1.67%		1.67%
CLASS I SHARES4						2.04%
1 Year		-2.23%		-2.23%
5 Years		3.39%		3.39%
10 Years		1.93%		1.93%
CLASS Z SHARES4						2.12%
1 Year		-2.18%		-2.18%
5 Years		3.40%		3.40%
Since Inception5		2.87%		2.87%

(footnotes continued on next page)

abfunds.com AB BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 0.78%, 0.67%, 1.04%, 1.78%, 0.78%, 1.43%, 1.10%, 0.78% and 0.68% 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 limited the Fund’s total annual 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) 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, 2024, and may be extended by the Adviser for additional one-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 the 30-day period ended April 30, 2023.

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 carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

3 Assumes conversion of Class C shares into Class A shares after eight years.

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 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.

5 Inception date: 12/11/2014.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-3.67%
5 Years		3.24%
10 Years		1.84%
CLASS 2 SHARES1
1 Year		-3.50%
5 Years		3.36%
10 Years		1.95%
CLASS A SHARES
1 Year		-5.99%
5 Years		2.61%
10 Years		1.45%
CLASS C SHARES
1 Year		-5.43%
5 Years		2.32%
10 Years2		0.93%
ADVISOR CLASS SHARES3
1 Year		-3.52%
5 Years		3.36%
10 Years		1.95%
CLASS R SHARES3
1 Year		-4.02%
5 Years		2.83%
10 Years		1.45%
CLASS K SHARES3
1 Year		-3.78%
5 Years		3.10%
10 Years		1.69%
CLASS I SHARES3
1 Year		-3.53%
5 Years		3.35%
10 Years		1.95%
CLASS Z SHARES3
1 Year		-3.50%
5 Years		3.36%
Since Inception4		2.89%

(footnotes continued on next page)

abfunds.com AB BOND INFLATION STRATEGY    ^|    11

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 Assumes conversion of Class C shares into Class A shares after eight years.

3 Please note that these share classes are 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.

4 Inception date: 12/11/2014.

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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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    13

EXPENSE EXAMPLE (continued)

	Beginning Account Value November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,043.70	$	4.66		0.92	%
Hypothetical**	$	1,000	$	1,020.23	$	4.61		0.92	%
Class C
Actual	$	1,000	$	1,038.90	$	8.44		1.67	%
Hypothetical**	$	1,000	$	1,016.51	$	8.35		1.67	%
Advisor Class
Actual	$	1,000	$	1,044.70	$	3.40		0.67	%
Hypothetical**	$	1,000	$	1,021.47	$	3.36		0.67	%
Class R
Actual	$	1,000	$	1,041.90	$	5.92		1.17	%
Hypothetical**	$	1,000	$	1,018.99	$	5.86		1.17	%
Class K
Actual	$	1,000	$	1,043.50	$	4.66		0.92	%
Hypothetical**	$	1,000	$	1,020.23	$	4.61		0.92	%
Class I
Actual	$	1,000	$	1,044.60	$	3.40		0.67	%
Hypothetical**	$	1,000	$	1,021.47	$	3.36		0.67	%
Class 1
Actual	$	1,000	$	1,044.00	$	3.90		0.77	%
Hypothetical**	$	1,000	$	1,020.98	$	3.86		0.77	%
Class 2
Actual	$	1,000	$	1,045.50	$	3.40		0.67	%
Hypothetical**	$	1,000	$	1,021.47	$	3.36		0.67	%
Class Z
Actual	$	1,000	$	1,044.20	$	3.45		0.68	%
Hypothetical**	$	1,000	$	1,021.42	$	3.41		0.68	%

* Expenses are equal to each classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $845.8

Total Investments ($mil): $856.1

INFLATION PROTECTION BREAKDOWN¹

U.S. Inflation-Protected Exposure	73.8	%
Non-Inflation Exposure	26.2
	100.0	%

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

Corporates–Investment Grade	11.5%
Asset-Backed Securities	5.7%
Collateralized Mortgage Obligations	4.9%
Collateralized Loan Obligations	2.7%
Commercial Mortgage-Backed Securities	1.1%
Mortgage Pass-Throughs	1.1%
Corporates–Non-Investment Grade	1.0%
Local Governments–US Municipal Bonds	0.3%
Quasi-Sovereigns	0.3%
Emerging Markets–Corporate Bonds	0.3%
Emerging Markets–Sovereigns	0.1%
Common Stocks	0.1%

SECTOR BREAKDOWN OF TOTAL PORTFOLIO INVESTMENTS, EXCLUDING DERIVATIVES²

Inflation-Linked Securities	70.9%
Corporates–Investment Grade	11.4%
Asset-Backed Securities	5.7%
Collateralized Mortgage Obligations	4.8%
Collateralized Loan Obligations	2.7%
Commercial Mortgage-Backed Securities	1.1%
Mortgage Pass-Throughs	1.1%
Corporates–Non-Investment Grade	1.0%
Local Governments–US Municipal Bonds	0.3%
Quasi-Sovereigns	0.3%
Emerging Markets–Corporate Bonds	0.3%
Emerging Markets–Sovereigns	0.1%
Common Stocks	0.1%
Short-Term Investments	0.2%

1 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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 71.8%
United States – 71.8%
U.S. Treasury Inflation Index 0.125%, 07/15/2024 (TIPS)	U.S.$		71,616	$	69,792,366
0.125%, 07/15/2026 (TIPS)			136,748		131,320,920
0.125%, 07/15/2030 (TIPS)(a)(b)			279,696		258,500,044
0.375%, 07/15/2027 (TIPS)			25,437		24,491,006
2.50%, 01/15/2029 (TIPS)(b)			115,699		123,074,526
Total Inflation-Linked Securities (cost $605,188,989)					607,178,862
CORPORATES - INVESTMENT GRADE – 11.5%
Financial Institutions – 5.8%
Banking – 4.5%
AIB Group PLC 7.583%, 10/14/2026(c)			2,155		2,224,994
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(c)			958		878,845
Banco Santander SA 4.175%, 03/24/2028			600		569,976
Bank of Ireland Group PLC 6.253%, 09/16/2026(c)			456		455,138
BNP Paribas SA 2.591%, 01/20/2028(c)			593		537,952
4.625%, 02/25/2031(d)			1,255		895,693
Capital One Financial Corp. 5.468%, 02/01/2029			353		347,197
Citigroup, Inc. 9.341% (LIBOR 3 Month + 4.07%), 07/30/2023(d)(e)			103		102,581
Series W 4.00%, 12/10/2025(d)			504		439,871
Series Y 4.15%, 11/15/2026(d)			480		396,586
Credit Suisse Group AG 4.194%, 04/01/2031(c)			614		544,213
6.373%, 07/15/2026(c)			1,025		999,816
Danske Bank A/S 4.298%, 04/01/2028(c)			746		707,872
6.466%, 01/09/2026(c)			604		606,060
Deutsche Bank AG/New York NY 2.129%, 11/24/2026			296		262,730
3.961%, 11/26/2025			405		386,520
6.119%, 07/14/2026			846		836,609

16    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Discover Bank 4.682%, 08/09/2028	U.S.$		327	$	303,178
Federation des Caisses Desjardins du Quebec 4.55%, 08/23/2027(c)			1,174		1,153,866
Goldman Sachs Group, Inc. (The) Series V 4.125%, 11/10/2026(d)			775		650,682
HSBC Holdings PLC 4.762%, 03/29/2033			373		343,969
7.336%, 11/03/2026			1,794		1,882,606
8.113%, 11/03/2033			1,738		1,963,262
Intesa Sanpaolo SpA 7.00%, 11/21/2025(c)			283		289,039
JPMorgan Chase & Co. 4.565%, 06/14/2030			426		415,354
KBC Group NV 5.796%, 01/19/2029(c)			461		467,352
Lloyds Banking Group PLC 5.871%, 03/06/2029			722		738,447
8.00%, 09/27/2029(d)			1,011		923,559
Mitsubishi UFJ Financial Group, Inc. 5.475%, 02/22/2031			274		278,162
Mizuho Financial Group, Inc. 5.414%, 09/13/2028			1,151		1,162,660
Morgan Stanley 0.406%, 10/29/2027	EUR		1,030		994,109
4.21%, 04/20/2028	U.S.$		799		774,630
6.296%, 10/18/2028			1,224		1,286,081
Nationwide Building Society 2.972%, 02/16/2028(c)			982		897,302
NatWest Group PLC 4.269%, 03/22/2025			648		638,805
7.472%, 11/10/2026			548		572,463
PNC Financial Services Group, Inc. (The) 5.068%, 01/24/2034			276		271,755
Santander Holdings USA, Inc. 2.49%, 01/06/2028			497		436,078
6.499%, 03/09/2029			492		494,411
Santander UK Group Holdings PLC 6.833%, 11/21/2026			1,572		1,599,919
Societe Generale SA 2.797%, 01/19/2028(c)			1,764		1,578,833
Standard Chartered PLC 3.971%, 03/30/2026(c)			657		633,959
6.00%, 07/26/2025(c)(d)			1,267		1,209,706
6.783% (LIBOR 3 Month + 1.51%), 01/30/2027(c)(d)(e)			400		352,000

abfunds.com AB BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
7.776%, 11/16/2025(c)	U.S.$		1,104	$	1,136,226
Svenska Handelsbanken AB 4.75%, 03/01/2031(d)			1,400		1,101,002
UBS Group AG 4.488%, 05/12/2026(c)			648		628,813
UniCredit SpA 1.982%, 06/03/2027(c)			204		180,693
2.569%, 09/22/2026(c)			1,071		973,882
3.127%, 06/03/2032(c)			368		295,140
US Bancorp Series J 5.30%, 04/15/2027(d)			427		358,911
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(d)			418		364,065
					38,543,572
Brokerage – 0.2%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(d)			253		241,633
Series I 4.00%, 06/01/2026(d)			1,366		1,143,957
Voya Financial, Inc. 5.65%, 05/15/2053			335		334,822
					1,720,412
Finance – 0.7%
Air Lease Corp. 2.875%, 01/15/2026			111		103,672
Aircastle Ltd. 2.85%, 01/26/2028(c)			1,329		1,156,097
4.125%, 05/01/2024			232		227,051
5.25%, 08/11/2025(c)			585		573,657
Aviation Capital Group LLC 1.95%, 01/30/2026(c)			751		672,528
1.95%, 09/20/2026(c)			346		302,016
3.50%, 11/01/2027(c)			211		190,691
4.125%, 08/01/2025(c)			7		6,686
4.375%, 01/30/2024(c)			194		190,690
4.875%, 10/01/2025(c)			246		238,266
5.50%, 12/15/2024(c)			550		542,564
Synchrony Financial 2.875%, 10/28/2031			791		583,497
3.95%, 12/01/2027			429		378,631
4.50%, 07/23/2025			244		228,421
4.875%, 06/13/2025			414		390,783
					5,785,250

18    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.1%
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(c)	U.S.$		183	$	160,917
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049			1,000		956,030
					1,116,947
REITs – 0.3%
American Tower Corp. 3.65%, 03/15/2027			635		607,422
GLP Capital LP/GLP Financing II, Inc. 3.25%, 01/15/2032			1,373		1,131,681
Vornado Realty LP 3.40%, 06/01/2031			718	��	508,287
					2,247,390
					49,413,571
Industrial – 5.4%
Basic – 0.3%
Celanese US Holdings LLC 5.90%, 07/05/2024			2,365		2,367,625
Freeport Indonesia PT 4.763%, 04/14/2027(c)			415		409,112
					2,776,737
Capital Goods – 0.7%
CNH Industrial Capital LLC 3.95%, 05/23/2025			1,889		1,845,610
Flowserve Corp. 2.80%, 01/15/2032			545		440,910
Parker-Hannifin Corp. 4.50%, 09/15/2029			1,430		1,417,216
Regal Rexnord Corp. 6.05%, 02/15/2026(c)			2,018		2,046,575
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			180		171,612
					5,921,923
Communications - Media – 0.3%
Discovery Communications LLC 5.30%, 05/15/2049			83		67,817
Prosus NV 3.257%, 01/19/2027(c)			593		540,297
4.027%, 08/03/2050(c)			487		311,680
Tencent Holdings Ltd. 3.24%, 06/03/2050(c)			655		436,107
Warnermedia Holdings, Inc. 4.279%, 03/15/2032(c)			1,595		1,417,684
					2,773,585

abfunds.com AB BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.4%
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(c)	U.S.$		1,942	$	1,756,364
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(c)			1,378		1,260,071
					3,016,435
Consumer Cyclical - Other – 0.1%
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			92		93,201
MDC Holdings, Inc. 6.00%, 01/15/2043			731		645,751
					738,952
Consumer Cyclical - Retailers – 0.1%
Ross Stores, Inc. 4.70%, 04/15/2027			1,083		1,076,924
Consumer Non-Cyclical – 0.9%
Altria Group, Inc. 3.40%, 05/06/2030			950		848,103
BAT Capital Corp. 2.259%, 03/25/2028			1,727		1,499,640
4.906%, 04/02/2030			593		571,865
Cargill, Inc. 5.125%, 10/11/2032(c)			632		654,841
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			1,190		895,320
Philip Morris International, Inc. 4.875%, 02/13/2026			1,395		1,402,868
5.375%, 02/15/2033			1,242		1,265,275
5.625%, 11/17/2029			284		296,593
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/2023			384		381,738
					7,816,243
Energy – 0.5%
Continental Resources, Inc./OK 2.875%, 04/01/2032(c)			1,496		1,175,392
5.75%, 01/15/2031(c)			1,113		1,084,697
Oleoducto Central SA 4.00%, 07/14/2027(c)			453		398,442
ONEOK Partners LP 6.125%, 02/01/2041			105		104,251
Var Energi ASA 7.50%, 01/15/2028(c)			867		916,566

20    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
8.00%, 11/15/2032(c)	U.S.$		680	$	738,324
					4,417,672
Services – 0.2%
Alibaba Group Holding Ltd. 2.125%, 02/09/2031			1,075		888,186
Expedia Group, Inc. 6.25%, 05/01/2025(c)			34		34,404
S&P Global, Inc. 4.25%, 05/01/2029			295		291,785
4.75%, 08/01/2028			59		60,161
					1,274,536
Technology – 1.6%
Entegris Escrow Corp. 4.75%, 04/15/2029(c)			1,896		1,763,735
Honeywell International, Inc. 4.125%, 11/02/2034	EUR		1,853		2,088,048
Infor, Inc. 1.75%, 07/15/2025(c)	U.S.$		450		412,173
International Business Machines Corp. 4.50%, 02/06/2026			981		982,295
4.90%, 07/27/2052			1,186		1,108,602
Kyndryl Holdings, Inc. 2.05%, 10/15/2026			1,428		1,250,400
Lenovo Group Ltd. 5.831%, 01/27/2028			1,193		1,201,798
6.536%, 07/27/2032			1,139		1,142,061
NXP BV/NXP Funding LLC 5.55%, 12/01/2028			711		725,796
SK Hynix, Inc. 2.375%, 01/19/2031(c)			382		287,049
TSMC Arizona Corp. 3.875%, 04/22/2027			1,009		989,955
Western Digital Corp. 2.85%, 02/01/2029			426		336,817
3.10%, 02/01/2032			1,182		855,898
					13,144,627
Transportation - Airlines – 0.1%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(c)			440		431,575
4.75%, 10/20/2028(c)			614		595,911
					1,027,486
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(c)			217		192,021
5.875%, 07/05/2034			275		265,005
					457,026

abfunds.com AB BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Services – 0.1%
ENA Master Trust 4.00%, 05/19/2048(c)	U.S.$		303	$	224,410
ERAC USA Finance LLC 4.599%, 05/01/2028(c)			407		406,011
4.90%, 05/01/2033(c)			493		492,980
					1,123,401
					45,565,547
Utility – 0.3%
Electric – 0.3%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(c)			358		308,779
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(c)			661		492,362
Duke Energy Carolinas NC Storm Funding LLC Series A-2 2.617%, 07/01/2041			1,183		914,660
Engie Energia Chile SA 3.40%, 01/28/2030			751		615,257
					2,331,058
Total Corporates - Investment Grade (cost $103,702,381)					97,310,176
ASSET-BACKED SECURITIES – 5.8%
Autos - Fixed Rate – 3.1%
ACM Auto Trust Series 2023-1A, Class A 6.61%, 01/22/2030(c)			1,568		1,565,283
American Credit Acceptance Receivables Trust Series 2022-3, Class A 4.12%, 02/13/2026(c)			565		562,310
Avis Budget Rental Car Funding AESOP LLC Series 2023-3A, Class A 5.44%, 02/22/2028(c)			1,294		1,303,940
Carvana Auto Receivables Trust Series 2021-N3, Class C 1.02%, 06/12/2028			416		394,746
Series 2021-N4, Class D 2.30%, 09/11/2028			916		853,905
Series 2021-P4, Class D 2.61%, 09/11/2028			1,206		999,301
CPS Auto Receivables Trust Series 2021-C, Class D 1.69%, 06/15/2027(c)			1,080		1,002,844

22    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2022-A, Class C 2.17%, 04/16/2029(c)	U.S.$		1,765	$	1,669,465
FHF Trust Series 2021-2A, Class A 0.83%, 12/15/2026(c)			351		334,208
Ford Credit Auto Owner Trust Series 2021-1, Class D 2.31%, 10/17/2033(c)			1,000		884,872
Hertz Vehicle Financing III LLC Series 2022-1A, Class C 2.63%, 06/25/2026(c)			1,660		1,526,637
LAD Auto Receivables Trust Series 2021-1A, Class A 1.30%, 08/17/2026(c)			589		573,630
Series 2022-1A, Class A 5.21%, 06/15/2027(c)			1,582		1,570,660
Octane Receivables Trust Series 2021-2A, Class B 2.02%, 09/20/2028(c)			1,508		1,376,514
Prestige Auto Receivables Trust Series 2022-1A, Class A2 5.90%, 07/15/2025(c)			1,302		1,300,813
Research-Driven Pagaya Motor Asset Trust VII Series 2022-3A, Class A 5.38%, 11/25/2030(c)			1,972		1,933,098
Santander Bank Auto Credit-Linked Notes Series 2022-A, Class B 5.281%, 05/15/2032(c)			1,650		1,611,884
Series 2022-B, Class B 5.721%, 08/16/2032(c)			1,630		1,621,527
Santander Bank NA - SBCLN Series 2021-1A, Class B 1.833%, 12/15/2031(c)			558		535,513
United Auto Credit Securitization Trust Series 2022-2, Class A 4.39%, 04/10/2025(c)			944		940,711
Series 2023-1, Class A 5.57%, 07/10/2025(c)			1,391		1,388,421
Westlake Automobile Receivables Trust Series 2023-2A, Class A2A 5.87%, 07/15/2026(c)			2,063		2,063,365
					26,013,647
Other ABS - Fixed Rate – 2.3%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(c)			1,457		1,217,341

abfunds.com AB BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Affirm Asset Securitization Trust Series 2021-Z1, Class A 1.07%, 08/15/2025(c)	U.S.$		159	$	154,671
Series 2021-Z2, Class A 1.17%, 11/16/2026(c)			279		268,258
Series 2022-X1, Class A 1.75%, 02/15/2027(c)			608		592,005
Amur Equipment Finance Receivables XI LLC Series 2022-2A, Class A2 5.30%, 06/21/2028(c)			908		903,186
Atalaya Equipment Leasing Trust Series 2021-1A, Class B 2.08%, 02/15/2027(c)			482		453,304
BHG Securitization Trust Series 2022-A, Class D 3.56%, 02/20/2035(c)			1,350		1,084,018
Cajun Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(c)			455		392,961
College Ave Student Loans LLC Series 2021-C, Class B 2.72%, 07/26/2055(c)			603		508,518
Dext ABS LLC Series 2021-1, Class B 1.76%, 02/15/2028(c)			197		181,091
Series 2023-1, Class A2 5.99%, 03/15/2032(c)			2,148		2,147,787
Diamond Issuer Series 2021-1A, Class A 2.305%, 11/20/2051(c)			2,152		1,877,612
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(c)			765		661,200
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(c)			479		414,903
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(c)			495		465,177
Series 2020-1A, Class A2 3.981%, 12/20/2050(c)			327		284,077
MVW LLC Series 2021-2A, Class B 1.83%, 05/20/2039(c)			807		723,589
Neighborly Issuer Series 2022-1A, Class A2 3.695%, 01/30/2052(c)			1,648		1,371,785

24    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2023-1A, Class A2 7.308%, 01/30/2053(c)	U.S.$		1,965	$	1,940,381
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(c)			516		436,460
Nelnet Student Loan Trust Series 2021-CA, Class B 2.53%, 04/20/2062(c)			758		615,352
Series 2021-DA, Class B 2.90%, 04/20/2062(c)			793		667,178
NMEF Funding LLC Series 2022-B, Class A2 6.07%, 06/15/2029(c)			968		972,945
Upstart Securitization Trust Series 2021-3, Class B 1.66%, 07/20/2031(c)			1,090		1,040,157
					19,373,956
Credit Cards - Fixed Rate – 0.4%
Brex Commercial Charge Card Master Trust Series 2022-1, Class A 4.63%, 07/15/2025(c)			2,894		2,823,661
Mission Lane Credit Card Master Trust Series 2021-A, Class B 2.24%, 09/15/2026(c)			352		337,531
					3,161,192
Total Asset-Backed Securities (cost $51,664,281)					48,548,795
COLLATERALIZED MORTGAGE OBLIGATIONS – 4.9%
Risk Share Floating Rate – 4.7%
Bellemeade Re Ltd. Series 2019-3A, Class M1C 6.97% (LIBOR 1 Month + 1.95%), 07/25/2029(c)(e)			431		430,315
Series 2021-1A, Class M1C 7.765% (SOFR + 2.95%), 03/25/2031(c)(e)			728		728,730
Series 2021-2A, Class M1B 6.315% (SOFR + 1.50%), 06/25/2031(c)(e)			1,425		1,402,208
Series 2021-3A, Class A2 5.815% (SOFR + 1.00%), 09/25/2031(c)(e)			1,699		1,654,433
Series 2022-1, Class M1B 6.965% (SOFR + 2.15%), 01/26/2032(c)(e)			1,255		1,230,130
Series 2022-2, Class M1A 8.824% (SOFR + 4.00%), 09/27/2032(c)(e)			2,594		2,634,107

abfunds.com AB BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 7.42% (LIBOR 1 Month + 2.40%), 04/25/2031(c)(e)	U.S.$		32	$	32,150
Series 2019-R02, Class 1M2 7.32% (LIBOR 1 Month + 2.30%), 08/25/2031(c)(e)			8		8,091
Series 2019-R03, Class 1M2 7.17% (LIBOR 1 Month + 2.15%), 09/25/2031(c)(e)			6		5,567
Series 2019-R07, Class 1M2 7.12% (LIBOR 1 Month + 2.10%), 10/25/2039(c)(e)			56		55,553
Series 2020-R01, Class 1M2 7.07% (LIBOR 1 Month + 2.05%), 01/25/2040(c)(e)			344		344,593
Series 2020-R02, Class 2M2 7.02% (LIBOR 1 Month + 2.00%), 01/25/2040(c)(e)			174		174,046
Series 2022-R01, Class 1M2 6.715% (SOFR + 1.90%), 12/25/2041(c)(e)			2,899		2,807,440
Series 2022-R02, Class 2M1 6.015% (SOFR + 1.20%), 01/25/2042(c)(e)			1,634		1,621,827
Series 2022-R03, Class 1M2 8.315% (SOFR + 3.50%), 03/25/2042(c)(e)			2,283		2,324,215
Series 2022-R04, Class 1M2 7.915% (SOFR + 3.10%), 03/25/2042(c)(e)			573		578,828
Series 2023-R02, Class 1M1 7.124% (SOFR + 2.30%), 01/25/2043(c)(e)			1,067		1,071,314
Eagle Re Ltd. Series 2021-2, Class M1B 6.865% (SOFR + 2.05%), 04/25/2034(c)(e)			675		671,037
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 9.82% (LIBOR 1 Month + 4.80%), 05/25/2028(e)			88		91,251
Series 2019-DNA4, Class M2 6.97% (LIBOR 1 Month + 1.95%), 10/25/2049(c)(e)			46		46,011
Series 2020-DNA1, Class M2 6.72% (LIBOR 1 Month + 1.70%), 01/25/2050(c)(e)			155		154,358
Series 2020-DNA5, Class M2 7.615% (SOFR + 2.80%), 10/25/2050(c)(e)			338		343,630
Series 2021-DNA5, Class M2 6.465% (SOFR + 1.65%), 01/25/2034(c)(e)			450		446,938

26    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2021-DNA6, Class M2 6.315% (SOFR + 1.50%), 10/25/2041(c)(e)	U.S.$		2,561	$	2,466,927
Series 2021-HQA3, Class M1 5.665% (SOFR + 0.85%), 09/25/2041(c)(e)			1,025		995,141
Series 2021-HQA4, Class M2 7.165% (SOFR + 2.35%), 12/25/2041(c)(e)			1,765		1,650,840
Series 2022-DNA1, Class M1B 6.665% (SOFR + 1.85%), 01/25/2042(c)(e)			1,542		1,493,086
Series 2022-DNA2, Class M1B 7.215% (SOFR + 2.40%), 02/25/2042(c)(e)			2,468		2,430,898
Series 2022-DNA3, Class M1B 7.715% (SOFR + 2.90%), 04/25/2042(c)(e)			1,069		1,065,881
Series 2022-DNA4, Class M1B 8.165% (SOFR + 3.35%), 05/25/2042(c)(e)			2,051		2,082,125
Series 2022-DNA5, Class M1B 9.315% (SOFR + 4.50%), 06/25/2042(c)(e)			3,681		3,900,429
Series 2022-DNA6, Class M1A 6.965% (SOFR + 2.15%), 09/25/2042(c)(e)			1,051		1,056,139
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 9.92% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			108		113,546
Series 2015-C02, Class 1M2 9.02% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			94		97,877
Series 2015-C03, Class 1M2 10.02% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			90		95,772
Series 2015-C04, Class 1M2 10.72% (LIBOR 1 Month + 5.70%), 04/25/2028(e)			363		387,257
Series 2021-R02, Class 2M2 6.815% (SOFR + 2.00%), 11/25/2041(c)(e)			1,221		1,167,893
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 7.768% (LIBOR 1 Month + 2.75%), 05/27/2023(c)(e)			489		479,802
Series 2019-3R, Class A 8.718% (LIBOR 1 Month + 3.70%), 11/27/2031(c)(e)			43		42,217
Series 2020-1R, Class A 8.368% (LIBOR 1 Month + 3.35%), 02/27/2023(c)(e)(f)			162		156,165
Radnor Re Ltd. Series 2019-1, Class M1B 6.97% (LIBOR 1 Month + 1.95%), 02/25/2029(c)(e)			586		586,008

abfunds.com AB BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Triangle Re Ltd. Series 2021-3, Class M1A 6.715% (SOFR + 1.90%), 02/25/2034(c)(e)	U.S.$		727	$	726,004
					39,850,779
Agency Floating Rate – 0.2%
Federal Home Loan Mortgage Corp. REMICs Series 3955, Class SD 1.652% (6.60% - LIBOR 1 Month), 11/15/2041(e)(g)			1,811		172,233
Series 4693, Class SL 1.202% (6.15% - LIBOR 1 Month), 06/15/2047(e)(g)			1,103		129,261
Series 4954, Class SL 1.03% (6.05% - LIBOR 1 Month), 02/25/2050(e)(g)			1,376		161,358
Series 4981, Class HS 1.08% (6.10% - LIBOR 1 Month), 06/25/2050(e)(g)			2,741		325,700
Federal National Mortgage Association REMICs Series 2014-78, Class SE 1.08% (6.10% - LIBOR 1 Month), 12/25/2044(e)(g)			791		88,089
Series 2016-77, Class DS 0.98% (6.00% - LIBOR 1 Month), 10/25/2046(e)(g)			876		95,798
Series 2017-62, Class AS 1.13% (6.15% - LIBOR 1 Month), 08/25/2047(e)(g)			940		117,797
Series 2017-97, Class LS 1.18% (6.20% - LIBOR 1 Month), 12/25/2047(e)(g)			1,339		170,893
Government National Mortgage Association Series 2017-122, Class SA 1.247% (6.20% - LIBOR 1 Month), 08/20/2047(e)(g)			727		89,070
Series 2017-134, Class MS 1.247% (6.20% - LIBOR 1 Month), 09/20/2047(e)(g)			817		104,420
					1,454,619
Non-Agency Floating Rate – 0.0%
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 7.12% (LIBOR 1 Month + 2.10%), 04/25/2047(c)(e)			136		128,342
Total Collateralized Mortgage Obligations (cost $41,328,066)					41,433,740

28    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED LOAN OBLIGATIONS – 2.7%
CLO - Floating Rate – 2.7%
AGL CLO 10 Ltd. Series 2021-10A, Class A 6.39% (LIBOR 3 Month + 1.13%), 04/15/2034(c)(e)	U.S.$		250	$	244,457
AGL CLO 12 Ltd. Series 2021-12A, Class D 8.10% (LIBOR 3 Month + 2.85%), 07/20/2034(c)(e)			948		863,796
AGL CLO 16 Ltd. Series 2021-16A, Class D 8.35% (LIBOR 3 Month + 3.10%), 01/20/2035(c)(e)			650		610,655
Balboa Bay Loan Funding Ltd. Series 2020-1A, Class DR 8.40% (LIBOR 3 Month + 3.15%), 01/20/2032(c)(e)			415		373,944
Series 2021-1A, Class A 6.45% (LIBOR 3 Month + 1.20%), 07/20/2034(c)(e)			1,111		1,087,648
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 8.36% (LIBOR 3 Month + 3.10%), 04/15/2034(c)(e)			1,000		909,295
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 8.15% (LIBOR 3 Month + 2.90%), 07/20/2034(c)(e)			660		593,188
Crown Point CLO 11 Ltd. Series 2021-11A, Class D 8.86% (LIBOR 3 Month + 3.60%), 01/17/2034(c)(e)			400		373,750
Dryden 78 CLO Ltd. Series 2020-78A, Class C 7.21% (LIBOR 3 Month + 1.95%), 04/17/2033(c)(e)			880		831,721
Series 2020-78A, Class D 8.26% (LIBOR 3 Month + 3.00%), 04/17/2033(c)(e)			460		427,811
Dryden 98 CLO Ltd. Series 2022-98A, Class D 8.149% (SOFR + 3.10%), 04/20/2035(c)(e)			500		441,107
Elevation CLO Ltd. Series 2020-11A, Class C 7.46% (LIBOR 3 Month + 2.20%), 04/15/2033(c)(e)			780		739,888

abfunds.com AB BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Elmwood CLO IX Ltd. Series 2021-2A, Class D 8.20% (LIBOR 3 Month + 2.95%), 07/20/2034(c)(e)	U.S.$		1,065	$	1,017,171
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 8.165% (LIBOR 3 Month + 2.90%), 07/19/2034(c)(e)			1,120		1,034,741
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 6.32% (LIBOR 3 Month + 1.07%), 04/20/2034(c)(e)			1,077		1,058,638
Magnetite XXVI Ltd. Series 2020-26A, Class A1R 6.375% (LIBOR 3 Month + 1.12%), 07/25/2034(c)(e)			2,348		2,308,618
Neuberger Berman Loan Advisers CLO 42 Ltd Series 2021-42A, Class A 6.36% (LIBOR 3 Month + 1.10%), 07/16/2035(c)(e)			903		885,776
Neuberger Berman Loan Advisers CLO 42 Ltd. Series 2021-42A, Class D 8.06% (LIBOR 3 Month + 2.80%), 07/16/2035(c)(e)			1,295		1,215,732
Neuberger Berman Loan Advisers CLO 43 Ltd. Series 2021-43A, Class A 6.39% (LIBOR 3 Month + 1.13%), 07/17/2035(c)(e)			1,354		1,328,539
New Mountain CLO 3 Ltd. Series CLO-3A, Class A 6.43% (LIBOR 3 Month + 1.18%), 10/20/2034(c)(e)			500		487,833
OCP CLO Ltd. Series 2020-18A, Class AR 6.34% (LIBOR 3 Month + 1.09%), 07/20/2032(c)(e)			1,424		1,401,555
Pikes Peak CLO 8 Series 2021-8A, Class A 6.42% (LIBOR 3 Month + 1.17%), 07/20/2034(c)(e)			1,450		1,423,711
Rad CLO 7 Ltd. Series 2020-7A, Class C 7.26% (LIBOR 3 Month + 2.00%), 04/17/2033(c)(e)			400		381,253
Rad CLO 14 Ltd Series 2021-14A, Class A 6.43% (LIBOR 3 Month + 1.17%), 01/15/2035(c)(e)			291		284,516

30    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Regatta XX Funding Ltd. Series 2021-2A, Class D 8.36% (LIBOR 3 Month + 3.10%), 10/15/2034(c)(e)	U.S.$		1,425	$	1,332,092
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 8.35% (LIBOR 3 Month + 3.10%), 01/20/2035(c)(e)			500		454,333
Sixth Street CLO XVII Ltd. Series 2021-17A, Class A 6.49% (LIBOR 3 Month + 1.24%), 01/20/2034(c)(e)			381		376,062
Voya CLO Ltd. Series 2019-1A, Class DR 8.11% (LIBOR 3 Month + 2.85%), 04/15/2031(c)(e)			340		300,108
Total Collateralized Loan Obligations (cost $23,882,127)					22,787,938
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.1%
Non-Agency Fixed Rate CMBS – 0.6%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.652%, 03/10/2037(c)			520		436,592
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class D 4.00%, 04/10/2046(c)			79		79,246
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.298%, 08/10/2044(c)			19		7,016
Series 2014-GC18, Class D 5.223%, 01/10/2047(c)			158		51,428
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(c)(f)(h)			572		540,348
Series 2021-1, Class A2 2.435%, 08/15/2026(c)(f)(h)			1,421		1,356,538
Series 2021-1, Class AS 2.638%, 08/15/2026(c)(f)(h)			40		36,198
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035(c)(e)(f)			1,070		1,018,165
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047			314		286,033

abfunds.com AB BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2014-C22, Class XA 0.948%, 09/15/2047(i)	U.S.$		17,508	$	119,010
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			78		32,674
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C25, Class XA 1.188%, 10/15/2048(i)			9,318		159,198
Wells Fargo Commercial Mortgage Trust Series 2016-LC25, Class C 4.488%, 12/15/2059			330		287,475
Series 2016-NXS6, Class C 4.533%, 11/15/2049			525		460,421
					4,870,342
Non-Agency Floating Rate CMBS – 0.5%
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 5.948% (LIBOR 1 Month + 1.00%), 11/15/2033(c)(e)			1,755		1,673,020
BBCMS Mortgage Trust Series 2020-BID, Class A 7.088% (LIBOR 1 Month + 2.14%), 10/15/2037(c)(e)			1,383		1,336,777
BX Commercial Mortgage Trust Series 2019-IMC, Class D 6.848% (LIBOR 1 Month + 1.90%), 04/15/2034(c)(e)			185		178,438
Series 2019-IMC, Class E 7.098% (LIBOR 1 Month + 2.15%), 04/15/2034(c)(e)			895		858,448
Federal Home Loan Mortgage Corp. Series 2021-MN1, Class M1 6.56% (SOFR + 2.00%), 01/25/2051(c)(e)			111		104,861
Natixis Commercial Mortgage Securities Trust Series 2019-MILE, Class A 6.469% (SOFR + 1.58%), 07/15/2036(c)(e)			461		430,228
					4,581,772
Total Commercial Mortgage-Backed Securities (cost $10,211,339)					9,452,114
MORTGAGE PASS-THROUGHS – 1.1%
Agency Fixed Rate 30-Year – 1.1%
Federal National Mortgage Association Series 2022 2.50%, 03/01/2052			3,671		3,186,969

32    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
3.00%, 02/01/2052	U.S.$		6,505	$	5,877,869
Total Mortgage Pass-Throughs (cost $10,183,165)					9,064,838
CORPORATES - NON-INVESTMENT GRADE – 1.0%
Industrial – 0.9%
Capital Goods – 0.0%
TK Elevator Midco GmbH 4.375%, 07/15/2027	EUR		401		394,088
Communications - Media – 0.4%
Altice Financing SA 3.00%, 01/15/2028			642		547,755
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(c)	U.S.$		104		87,718
4.50%, 06/01/2033(c)			368		293,414
4.75%, 02/01/2032(c)			2,261		1,871,113
DISH DBS Corp. 5.75%, 12/01/2028(c)			1,067		760,525
VZ Vendor Financing II BV 2.875%, 01/15/2029	EUR		561		484,902
					4,045,427
Communications - Telecommunications – 0.1%
Altice France SA/France 3.375%, 01/15/2028			307		258,607
Lorca Telecom Bondco SA 4.00%, 09/18/2027			642		650,289
					908,896
Consumer Cyclical - Automotive – 0.1%
Ford Motor Credit Co. LLC 7.35%, 11/04/2027	U.S.$		501		516,040
Consumer Cyclical - Entertainment – 0.1%
Carnival Corp. 4.00%, 08/01/2028(c)			1,235		1,070,807
Consumer Non-Cyclical – 0.1%
Organon & Co./Organon Foreign Debt Co-Issuer BV 2.875%, 04/30/2028	EUR		550		524,805

abfunds.com AB BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Services – 0.1%
APCOA Parking Holdings GmbH 4.625%, 01/15/2027	EUR		642	$	608,438
					8,068,501
Utility – 0.1%
Electric – 0.1%
Vistra Corp. 7.00%, 12/15/2026(c)(d)	U.S.$		751		674,736
Total Corporates - Non-Investment Grade (cost $10,480,290)					8,743,237
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.3%
United States – 0.3%
City of New York Series 2021-D 1.923%, 08/01/2031			775		639,535
Port Authority of New York & New Jersey Series 2020-A 1.086%, 07/01/2023			660		655,324
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035			396		396,248
University of California Series 2021-B 3.071%, 05/15/2051			1,465		1,059,283
Total Local Governments - US Municipal Bonds (cost $3,286,877)					2,750,390
QUASI-SOVEREIGNS – 0.3%
Quasi-Sovereign Bonds – 0.3%
Hungary – 0.1%
Magyar Export-Import Bank Zrt 6.125%, 12/04/2027(c)			1,197		1,204,313
Mexico – 0.2%
Comision Federal de Electricidad 3.348%, 02/09/2031(c)			675		537,806
4.688%, 05/15/2029(c)			1,016		914,591
					1,452,397
Total Quasi-Sovereigns (cost $2,883,511)					2,656,710

34    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS - CORPORATE BONDS – 0.3%
Industrial – 0.3%
Basic – 0.0%
Volcan Cia Minera SAA 4.375%, 02/11/2026(c)	U.S.$		125	$	94,437
Capital Goods – 0.1%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			590		567,875
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(c)			270		866
					568,741
Communications - Media – 0.0%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(c)			427		343,014
Consumer Cyclical - Other – 0.1%
Wynn Macau Ltd. 5.625%, 08/26/2028(c)			483		419,908
Consumer Non-Cyclical – 0.1%
Natura & Co. Luxembourg Holdings SARL 6.00%, 04/19/2029(c)			592		524,660
Natura Cosmeticos SA 4.125%, 05/03/2028(c)			583		483,088
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(c)(f)(h)(j)(k)			655		66
					1,007,814
					2,433,914
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LP 6.125%, 03/01/2026(c)(f)			89		85,322
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(c)(l)(m)			257		8,926
Total Emerging Markets - Corporate Bonds (cost $3,732,216)					2,528,162

abfunds.com AB BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS - SOVEREIGNS – 0.1%
Dominican Republic – 0.1%
Dominican Republic International Bond 4.875%, 09/23/2032(c) (cost $1,213,000)	U.S.$		1,213	$	1,042,649
		Shares
COMMON STOCKS – 0.1%
Financials – 0.1%
Insurance – 0.1%
Mt Logan Re Ltd. (Special Investment)(h)(j)(n) (cost $493,491)			556		522,137
		Principal Amount (000)
GOVERNMENTS - SOVEREIGN BONDS – 0.0%
Colombia – 0.0%
Colombia Government International Bond 3.125%, 04/15/2031 (cost $247,311)	U.S.$		248		183,567
		Shares
SHORT-TERM INVESTMENTS – 0.2%
Investment Companies – 0.2%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(o)(p)(q) (cost $1,928,945)			1,928,945		1,928,945
Total Investments – 101.2% (cost $870,425,989)					856,132,260
Other assets less liabilities – (1.2)%					(10,353,752	)
Net Assets – 100.0%				$	845,778,508

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		496		June 2023	$	60,240,750	$	1,642,623
U.S. T-Note 2 Yr (CBT) Futures		526		June 2023		108,442,297		848,395
U.S. T-Note 5 Yr (CBT) Futures		293		June 2023		32,154,461		67,145

36    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Sold Contracts
10 Yr Japan Bond (OSE) Futures		27		June 2023	$	29,448,420	$	(631,305	)
U.S. Ultra Bond (CBT) Futures		26		June 2023		3,676,563		(158,103	)
							$	1,768,755

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	EUR	5,893	USD	6,272		05/11/2023	$	(224,376	)
State Street Bank & Trust Co.	JPY	1,314	USD	10		06/15/2023		223
							$	(224,153	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		(5.00	)%		Quarterly		4.65	%		USD	10,100	$	(198,991	)	$	(21,848	)	$	(177,143	)

* 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	9,000		07/15/2023		1.902%		CPI#	Maturity	$	1,011,570		$	– 0	–	$	1,011,570
USD	3,000		01/15/2024		1.599%		CPI#	Maturity		399,085			– 0	–		399,085
USD	64,600		02/26/2025		1.589%		CPI#	Maturity		8,116,131			– 0	–		8,116,131
USD	38,550		02/28/2025		1.527%		CPI#	Maturity		4,959,314			– 0	–		4,959,314
USD	61,010		05/13/2027		3.263%		CPI#	Maturity		(547,329	)		– 0	–		(547,329	)
USD	29,760		07/08/2027		2.778%		CPI#	Maturity		182,609			– 0	–		182,609
USD	29,760		07/08/2027		2.770%		CPI#	Maturity		193,409			– 0	–		193,409
USD	20,700		07/15/2024		3.440%		CPI#	Maturity		1,385			– 0	–		1,385
									$	14,316,174		$	– 0	–	$	14,316,174

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

abfunds.com AB BOND INFLATION STRATEGY    ^|    37

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	1,160		06/09/2025		2.000%	1 Day SOFR	Annual	$	51,337		$	66,428		$	(15,091	)
USD	2,106		08/04/2025		1.970%	1 Day SOFR	Annual		97,000			127,800			(30,800	)
USD	5,400		10/04/2026		1.170%	1 Day SOFR	Annual		441,176			545,891			(104,715	)
USD	1,080		11/08/2026		1.451%	1 Day SOFR	Annual		79,295			100,847			(21,552	)
USD	1,080		11/09/2026		1.470%	1 Day SOFR	Annual		78,589			100,850			(22,261	)
USD	7,030		04/04/2027		2.235%	1 Day SOFR	Annual		328,781			510,145			(181,364	)
USD	20,920		06/05/2027		0.345%	1 Day SOFR	Annual		2,590,330			3,012,281			(421,951	)
USD	715		07/12/2027		2.000%	1 Day SOFR	Annual		42,359			58,962			(16,603	)
USD	5,395		06/04/2029		1.985%	1 Day SOFR	Annual		399,367			559,674			(160,307	)
USD	3,170		09/27/2029		1.300%	1 Day SOFR	Annual		369,836			460,573			(90,737	)
USD	40,300		05/21/2031		1.394%	1 Day SOFR	Annual		5,320,677			6,532,321			(1,211,644	)
USD	1,490		11/10/2035		2.410%	1 Day SOFR	Annual		122,905			179,916			(57,011	)
USD	595		03/06/2042		3.500%	1 Day SOFR	Annual		(27,113	)		– 0	–		(27,113	)
								$	9,894,539		$	12,255,688		$	(2,361,149	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	5	$	(1,063	)	$	(765	)	$	(298	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	5		(1,063	)		(612	)		(451	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	7		(1,536	)		(698	)		(838	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	15		(3,189	)		(2,124	)		(1,065	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	15		(3,189	)		(1,935	)		(1,254	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	14		(2,953	)		(1,591	)		(1,362	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,370	)		(2,478	)		(1,892	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	25		(5,079	)		(2,974	)		(2,105	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	25		(5,079	)		(2,880	)		(2,199	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	29		(5,906	)		(2,895	)		(3,011	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	34		(7,087	)		(4,018	)		(3,069	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	53		(10,866	)		(6,009	)		(4,857	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	50		(10,276	)		(5,257	)		(5,019	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	3		(591	)		(330	)		(261	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	70		(14,410	)		(7,848	)		(6,562	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	74		(15,355	)		(5,564	)		(9,791	)

38    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	97	$	(19,961	)	$	(7,387	)	$	(12,574	)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	17		(3,543	)		(1,856	)		(1,687	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	74		(15,355	)		(8,646	)		(6,709	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	86		(17,717	)		(9,976	)		(7,741	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	124		(25,631	)		(13,101	)		(12,530	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	125		(25,749	)		(13,156	)		(12,593	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	409		(84,334	)		(21,631	)		(62,703	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	9		(1,771	)		(1,202	)		(569	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	9		(1,771	)		(709	)		(1,062	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	17		(3,543	)		(1,564	)		(1,979	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	17		(3,543	)		(1,445	)		(2,098	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	34		(6,969	)		(3,362	)		(3,607	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	95		(19,607	)		(9,335	)		(10,272	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	102		(21,024	)		(8,118	)		(12,906	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50	%		USD	109		(22,560	)		(7,109	)		(15,451	)
												$	(365,090	)	$	(156,575	)	$	(208,515	)

* 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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

JPMorgan Chase Bank, NA

USD 23,800

07/15/2023

1.848%

CPI#

Maturity

$

2,743,487

$

– 0

–

$

2,743,487

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

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at April 30, 2023
JPMorgan Chase Bank†		4.87	%		—	$	5,895,222

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on April 30, 2023.

abfunds.com AB BOND INFLATION STRATEGY    ^|    39

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

Inflation-Linked Securities

$

5,895,222

$

– 0

–

$

– 0

–

$

– 0

–

$

5,895,222

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

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

(c) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $166,380,836 or 19.7% 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.

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

(f) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.37% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
GSF Series 2021-1, Class A1 1.433%, 08/15/2026		02/25/2021	$	556,039	$	540,348		0.06	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		1,452,432		1,356,538		0.16	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		40,741		36,198		0.00	%
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		1,137,092		1,018,165		0.12	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 8.368%, 02/27/2023		02/11/2000		161,644		156,165		0.02	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018		89,000		85,322		0.01	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		363,153		66		0.00	%

(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) Fair valued by the Adviser.

(k) Defaulted matured security.

(l) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

(m) 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 April 30, 2023.

(n) Non-income producing security.

40    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(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 AB at (800) 227-4618.

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

Currency Abbreviations:

EUR – Euro

JPY – Japanese Yen

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rate

OSE – Osaka Securities Exchange

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    41

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $868,497,044)	$	854,203,315
Affiliated issuers (cost $1,928,945)		1,928,945
Cash		59,889
Cash collateral due from broker		12,302,462
Unaffiliated interest and dividends receivable		2,832,816
Unrealized appreciation on inflation swaps		2,743,487
Receivable for investment securities sold		1,040,012
Receivable for capital stock sold		931,178
Receivable for variation margin on futures		406,624
Affiliated dividends receivable		79,286
Unrealized appreciation on forward currency exchange contracts		223
Total assets		876,528,237
Liabilities
Payable for investment securities purchased		19,592,043
Payable for reverse repurchase agreements		5,895,222
Cash collateral due to broker		2,770,000
Payable for capital stock redeemed		972,815
Market value on credit default swaps (net premiums received $156,575)		365,090
Payable for variation margin on centrally cleared swaps		282,856
Unrealized depreciation on forward currency exchange contracts		224,376
Advisory fee payable		191,227
Distribution fee payable		49,899
Administrative fee payable		33,270
Transfer Agent fee payable		26,539
Foreign capital gains tax payable		14,365
Directors’ fees payable		3,386
Accrued expenses		328,641
Total liabilities		30,749,729
Net Assets	$	845,778,508
Composition of Net Assets
Capital stock, at par	$	81,082
Additional paid-in capital		954,625,790
Accumulated loss		(108,928,364	)
Net Assets	$	845,778,508

See notes to financial statements.

42    ^|    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	$	57,859,996		5,482,680	$	10.55	*
C	$	11,308,344		1,108,381	$	10.20
Advisor	$	334,220,474		31,619,820	$	10.57
R	$	2,430,587		229,501	$	10.59
K	$	4,592,878		435,405	$	10.55
I	$	5,370,945		514,883	$	10.43
1	$	373,130,280		36,180,141	$	10.31
2	$	45,918,378		4,453,979	$	10.31
Z	$	10,946,626		1,057,371	$	10.35

* The maximum offering price per share for Class A shares was $10.79 which reflects a sales charge of 2.25%.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    43

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	20,677,470
Dividends—Affiliated issuers		324,209		$	21,001,679
Expenses
Advisory fee (see Note B)		2,375,496
Distribution fee—Class A		74,743
Distribution fee—Class C		64,613
Distribution fee—Class R		6,029
Distribution fee—Class K		5,532
Distribution fee—Class 1		187,360
Transfer agency—Class A		45,441
Transfer agency—Class C		9,766
Transfer agency—Advisor Class		324,235
Transfer agency—Class R		3,135
Transfer agency—Class K		4,426
Transfer agency—Class I		2,694
Transfer agency—Class 1		28,134
Transfer agency—Class 2		3,604
Transfer agency—Class Z		1,256
Registration fees		140,631
Custody and accounting		97,895
Audit and tax		57,772
Administrative		52,545
Printing		46,663
Legal		23,913
Directors’ fees		15,943
Miscellaneous		18,073
Total expenses before interest expense		3,589,899
Interest expense		831,581
Total expenses		4,421,480
Less: expenses waived and reimbursed by the Adviser (see Note B)		(883,480	)
Net expenses					3,538,000
Net investment income					17,463,679

See notes to financial statements.

44    ^|    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	$	(93,597,831	)
Forward currency exchange contracts		(172,841	)
Futures		1,040,314
Swaps		11,086,197
Foreign currency transactions		(925,289	)
Net change in unrealized appreciation (depreciation) of:
Investments		122,303,898
Forward currency exchange contracts		(119,359	)
Futures		2,089,067
Swaps		(16,898,510	)
Foreign currency denominated assets and liabilities		29,002
Net gain on investment and foreign currency transactions		24,834,648
Net Increase in Net Assets from Operations	$	42,298,327

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    45

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	17,463,679		$	68,607,369
Net realized loss on investment and foreign currency transactions		(82,569,450	)		(30,103,162	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		107,404,098			(147,233,438	)
Net increase (decrease) in net assets from operations		42,298,327			(108,729,231	)
Distributions to Shareholders
Class A		(1,030,926	)		(4,072,663	)
Class C		(187,452	)		(935,082	)
Advisor Class		(7,736,381	)		(35,350,604	)
Class R		(38,101	)		(134,438	)
Class K		(74,971	)		(306,142	)
Class I		(105,103	)		(438,474	)
Class 1		(7,001,795	)		(25,583,456	)
Class 2		(905,031	)		(4,260,551	)
Class Z		(202,367	)		(1,252,299	)
Capital Stock Transactions
Net increase (decrease)		(237,744,062	)		215,890,499
Total increase (decrease)		(212,727,862	)		34,827,559
Net Assets
Beginning of period		1,058,506,370			1,023,678,811
End of period	$	845,778,508		$	1,058,506,370

See notes to financial statements.

46    ^|    AB BOND INFLATION  STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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. Effective March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25% and purchases in amounts of $500,000 or more, or by certain group retirement plans, may be subject to a 1%, 18-month contingent deferred sales charge, which may be subject to waiver in certain circumstances. Prior to March 7, 2022, purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may have been subject to a 1%, 1-year contingent deferred sales charge, which may have been subject to waiver in certain circumstances. 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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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 11 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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

1. Security Valuation

Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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

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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., 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)

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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.

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, 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

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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 April 30, 2023:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Inflation-Linked Securities

$

– 0

–

$

607,178,862

$

– 0

–

$

607,178,862

Corporates – Investment Grade

– 0

–

97,310,176

– 0

–

97,310,176

Asset-Backed Securities

– 0

–

48,548,795

– 0

–

48,548,795

Collateralized Mortgage Obligations

– 0

–

41,433,740

– 0

–

41,433,740

Collateralized Loan Obligations

– 0

–

22,787,938

– 0

–

22,787,938

Commercial Mortgage-Backed Securities

– 0

–

7,519,030

1,933,084

9,452,114

Mortgage Pass-Throughs

– 0

–

9,064,838

– 0

–

9,064,838

Corporates – Non-Investment Grade

– 0

–

8,743,237

– 0

–

8,743,237

Local Governments – US Municipal Bonds

– 0

–

2,750,390

– 0

–

2,750,390

Quasi-Sovereigns

– 0

–

2,656,710

– 0

–

2,656,710

Emerging Markets – Corporate Bonds

– 0

–

2,528,096

66

2,528,162

Emerging Markets – Sovereigns

– 0

–

1,042,649

– 0

–

1,042,649

Common Stocks

– 0

–

– 0

–

522,137

522,137

Governments – Sovereign Bonds

– 0

–

183,567

– 0

–

183,567

Short-Term Investments

1,928,945

– 0

–

– 0

–

1,928,945

Total Investments in Securities

1,928,945

851,748,028

2,455,287

856,132,260

Other Financial Instruments(a):

Assets:

Futures

2,558,163

– 0

–

– 0

–

2,558,163

(b)

Forward Currency Exchange Contracts

– 0

–

223

– 0

–

223

Centrally Cleared Inflation (CPI) Swaps

– 0

–

14,863,503

– 0

–

14,863,503

(b)

Centrally Cleared Interest Rate Swap

– 0

–

9,921,652

– 0

–

9,921,652

(b)

Inflation (CPI) Swaps

– 0

–

2,743,487

– 0

–

2,743,487

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Futures	$	(789,408	)	$	– 0	–	$	– 0	–	$	(789,408	)(b)
Forward Currency Exchange Contracts		– 0	–		(224,376	)		– 0	–		(224,376	)
Centrally Cleared Credit Default Swaps		– 0	–		(198,991	)		– 0	–		(198,991	)(b)
Centrally Cleared Inflation (CPI) Swaps		– 0	–		(547,329	)		– 0	–		(547,329	)(b)
Centrally Cleared Interest Rate Swap		– 0	–		(27,113	)		– 0	–		(27,113	)(b)
Credit Default Swaps		– 0	–		(365,090	)		– 0	–		(365,090	)
Reverse Repurchase Agreements		(5,895,222	)		– 0	–		– 0	–		(5,895,222	)
Total	$	(2,197,522	)	$	877,913,994		$	2,455,287		$	878,171,759

(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, written options and written swaptions 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.

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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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

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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 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, 2024 and then may be extended for additional one-year terms. For the six months ended April 30, 2023, such reimbursement amounted to $876,126.

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 six months ended April 30, 2023, the reimbursement for such services amounted to $52,545.

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 $107,202 for the six months ended April 30, 2023.

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 $1,873 from the sale of Class A shares and received $1,611 and $2,060 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual

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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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $7,354.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	43,764	$	396,515	$	438,350	$	1,929	$	324

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 .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 $299,524, $61,521, $60,357 and $1,583,264 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

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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 six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	50,445,720	$	79,608,624
U.S. government securities		938,693,936		1,155,520,879

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	27,615,282
Gross unrealized depreciation		(26,051,555	)
Net unrealized appreciation	$	1,563,727

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 for non-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

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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 six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-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.

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During the six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging and non-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 for non-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 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

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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 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 the 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

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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 six months ended April 30, 2023, the Fund held interest rate swaps for hedging and non-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 the 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 six months ended April 30, 2023, the Fund held inflation (CPI) swaps for hedging and non-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 the Fund had invested in the referenced obligation directly. Credit default swaps are

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NOTES TO FINANCIAL STATEMENTS (continued)

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 six months ended April 30, 2023, the Fund held credit default swaps for hedging and 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

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NOTES TO FINANCIAL STATEMENTS (continued)

derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the six months ended April 30, 2023, 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 for variation margin on futures	$	2,558,163	*	Payable for variation margin on futures	$	789,408	*
Credit contracts					Payable for variation margin on centrally cleared swaps		177,143	*
Interest rate contracts	Receivable for variation margin on centrally cleared swaps		14,863,503	*	Payable for variation margin on centrally cleared swaps		2,908,478	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		223		Unrealized depreciation on forward currency exchange contracts		224,376
Interest rate contracts	Unrealized appreciation on inflation swaps		2,743,487
Credit contracts					Market value on credit default swaps		365,090
Total		$	20,165,376			$	4,464,495

* 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.

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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 futures; Net change in unrealized appreciation (depreciation) of futures	$	1,040,314		$	2,089,067
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		(172,841	)		(119,359	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		12,181,079			(17,663,228	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(1,094,882	)		764,718
Total		$	11,953,670		$	(14,928,802	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Futures:
Average notional amount of buy contracts	$	150,629,926
Average notional amount of sale contracts	$	62,214,844
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	797,386	(a)
Average principal amount of sale contracts	$	7,775,284
Interest Rate Swaps:
Average notional amount	$	595,000	(b)
Inflation Swaps:
Average notional amount	$	23,800,000
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	90,016,000
Centrally Cleared Inflation Swaps:
Average notional amount	$	292,862,857
Credit Default Swaps:
Average notional amount of sale contracts	$	4,329,535
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	10,100,000

(a) Positions were open for one month during the period.

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

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NOTES TO 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 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 April 30, 2023. 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
JPMorgan Chase Bank, NA	$	2,743,487	$	– 0	–	$	(2,743,487	)	$	– 0	–	$	– 0	–
State Street Bank & Trust Co.		223		– 0	–		– 0	–		– 0	–		223
Total	$	2,743,710	$	– 0	–	$	(2,743,487	)	$	– 0	–	$	223	^

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

$

224,376

$

– 0

–

$

– 0

–

$

– 0

–

$

224,376

Citigroup Global Markets, Inc.

61,656

– 0

–

– 0

–

– 0

–

61,656

Credit Suisse International

50,317

– 0

–

(50,317

)

– 0

–

– 0

–

Deutsche Bank AG

172,329

– 0

–

– 0

–

(158,504

)

13,825

Goldman Sachs International

58,228

– 0

–

– 0

–

(58,228

)

– 0

–

Morgan Stanley Capital Services LLC

22,560

– 0

–

– 0

–

– 0

–

22,560

Total

$

589,466

$

– 0

–

$

(50,317

)

$

(216,732

)

$

322,417

^

* 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.

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2. Currency Transactions

The Fund may invest in non-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 six months ended April 30, 2023, the Fund earned drop income of $7,795 which is included in interest income in the accompanying statement of operations.

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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/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 six months ended April 30, 2023, the average amount of reverse repurchase agreements outstanding was $35,404,242 and the daily weighted average interest rate was 4.68%. At April 30, 2023, the Fund had reverse repurchase agreements outstanding in the amount of $5,895,222 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 April 30, 2023:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
JPMorgan Chase Bank.	$	5,895,222	$	(5,895,222	)	$	– 0	–

† Including accrued interest.

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

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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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		760,656			3,408,664		$	7,933,074		$	39,211,778
Shares issued in reinvestment of dividends and distributions		75,133			255,057			787,722			2,866,214
Shares converted from Class C		14,520			26,159			150,134			297,352
Shares redeemed		(1,583,470	)		(2,041,123	)		(16,473,461	)		(22,492,315	)
Net increase (decrease)		(733,161	)		1,648,757		$	(7,602,531	)	$	19,883,029
Class C
Shares sold		94,757			957,369		$	950,655		$	10,835,221
Shares issued in reinvestment of dividends and distributions		15,481			73,644			157,104			802,273
Shares converted to Class A		(15,003	)		(26,969	)		(150,134	)		(297,352	)
Shares redeemed		(541,574	)		(560,082	)		(5,457,455	)		(6,068,964	)
Net increase (decrease)		(446,339	)		443,962		$	(4,499,830	)	$	5,271,178
Advisor Class
Shares sold		5,564,792			40,616,333		$	57,991,112		$	468,051,394
Shares issued in reinvestment of dividends and distributions		525,464			2,345,667			5,504,021			26,434,513
Shares redeemed		(23,599,215	)		(33,515,631	)		(247,410,154	)		(375,042,679	)
Net increase (decrease)		(17,508,959	)		9,446,369		$	(183,915,021	)	$	119,443,228
Class R
Shares sold		29,965			141,704		$	314,107		$	1,603,993
Shares issued in reinvestment of dividends and distributions		3,619			11,932			38,101			134,438
Shares redeemed		(59,265	)		(95,894	)		(618,875	)		(1,097,267	)
Net increase (decrease)		(25,681	)		57,742		$	(266,667	)	$	641,164

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class K
Shares sold		27,271			112,908		$	284,949		$	1,294,450
Shares issued in reinvestment of dividends and distributions		7,155			27,068			74,971			306,141
Shares redeemed		(24,447	)		(335,148	)		(255,090	)		(3,896,262	)
Net increase (decrease)		9,979			(195,172	)	$	104,830		$	(2,295,671	)
Class I
Shares sold		82,960			423,106		$	850,891		$	4,824,045
Shares issued in reinvestment of dividends and distributions		10,146			39,405			105,103			438,474
Shares redeemed		(208,918	)		(346,343	)		(2,151,445	)		(3,852,368	)
Net increase (decrease)		(115,812	)		116,168		$	(1,195,451	)	$	1,410,151
Class 1
Shares sold		3,814,537			11,062,605		$	39,001,896		$	125,319,297
Shares issued in reinvestment of dividends and distributions		511,601			1,752,879			5,239,274			19,320,268
Shares redeemed		(6,915,508	)		(6,204,606	)		(70,461,113	)		(68,561,063	)
Net increase (decrease)		(2,589,370	)		6,610,878		$	(26,219,943	)	$	76,078,502
Class 2
Shares sold		321,409			3,439,902		$	3,290,089		$	39,531,686
Share issued in reinvestment of dividends and distributions		74,705			347,497			764,684			3,835,645
Shares redeemed		(1,835,244	)		(3,552,396	)		(18,568,956	)		(40,218,571	)
Net increase (decrease)		(1,439,130	)		235,003		$	(14,514,183	)	$	3,148,760
Class Z
Shares sold		130,523			660,539		$	1,341,289		$	7,478,978
Share issued in reinvestment of dividends and distributions		19,652			113,031			201,989			1,250,674
Shares redeemed		(114,835	)		(1,528,362	)		(1,178,544	)		(16,419,494	)
Net increase (decrease)		35,340			(754,792	)	$	364,734		$	(7,689,842	)

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NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Foreign (Non-U.S.) Risk—Investments in securities of non-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 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.

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 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.

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 are or become difficult to purchase or sell. Difficulty in selling

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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. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

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NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	68,537,505	$	27,901,153
Net long-term capital gains		3,796,204		3,495,951
Total taxable distributions paid	$	72,333,709	$	31,397,104

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	3,129,746
Accumulated capital and other losses		(21,564,655	)(a)
Unrealized appreciation (depreciation)		(115,209,506	)(b)
Total accumulated earnings (deficit)	$	(133,644,415	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $21,564,655.

(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 callable bonds, 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, 2022, the Fund had a net short-term capital loss carryforward of $9,889,007 and a net long-term capital loss carryforward of $11,665,648, which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

abfunds.com AB BOND INFLATION STRATEGY    ^|    73

NOTES TO FINANCIAL STATEMENTS (continued)

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.

74    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS

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

	Class A
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.29			$  11.97			$  11.56			$  10.95			$  10.47			$  10.83
Income From Investment Operations
Net investment income(a)(b)		.18			.64			.51			.25			.21			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.26			(1.66	)		.35			.59			.52			(.38	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.44			(1.02	)		.86			.84			.73			(.10	)
Less: Dividends and Distributions
Dividends from net investment income		(.18	)		(.62	)		(.45	)		(.23	)		(.24	)		(.26	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.18	)		(.66	)		(.45	)		(.23	)		(.25	)		(.26	)
Net asset value, end of period		$  10.55			$  10.29			$  11.97			$  11.56			$  10.95			$  10.47
Total Return
Total investment return based on net asset value(d)		4.37	%		(8.93	)%		7.63	%		7.64	%		7.00	%		(.99	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$57,860			$63,936			$54,687			$31,248			$38,422			$52,116
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.92	%^		.84	%		.78	%		.91	%		1.25	%		1.31	%
Expenses, before waivers/reimbursements(e)		1.17	%^		1.04	%		1.00	%		1.18	%		1.51	%		1.56	%
Net investment income(b)		3.57	%^		5.69	%		4.29	%		2.26	%		1.93	%		2.60	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

abfunds.com AB BOND INFLATION STRATEGY    ^|    75

FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.96			$  11.63			$  11.25			$  10.67			$  10.24			$  10.61
Income From Investment Operations
Net investment income(a)(b)		.14			.54			.44			.18			.13			.19
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.25			(1.62	)		.31			.56			.49			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.39			(1.08	)		.75			.74			.62			(.18	)
Less: Dividends and Distributions
Dividends from net investment income		(.15	)		(.55	)		(.37	)		(.16	)		(.19	)		(.19	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.15	)		(.59	)		(.37	)		(.16	)		(.19	)		(.19	)
Net asset value, end of period		$  10.20			$  9.96			$  11.63			$  11.25			$  10.67			$  10.24
Total Return
Total investment return based on net asset value(d)		3.89	%		(9.58	)%		6.87	%		6.92	%		6.18	%		(1.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11,308			$15,480			$12,915			$3,823			$2,607			$3,391
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.67	%^		1.59	%		1.53	%		1.64	%		1.99	%		2.03	%
Expenses, before waivers/reimbursements(e)		1.92	%^		1.78	%		1.75	%		1.91	%		2.26	%		2.29	%
Net investment income(b)		2.76	%^		4.91	%		3.79	%		1.62	%		1.28	%		1.77	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

76    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.30			$  11.99			$  11.57			$  10.96			$  10.49			$  10.84
Income From Investment Operations
Net investment income(a)(b)		.19			.67			.57			.27			.27			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.27			(1.67	)		.33			.60			.48			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.46			(1.00	)		.90			.87			.75			(.07	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.65	)		(.48	)		(.26	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.19	)		(.69	)		(.48	)		(.26	)		(.28	)		(.28	)
Net asset value, end of period		$  10.57			$  10.30			$  11.99			$  11.57			$  10.96			$  10.49
Total Return
Total investment return based on net asset value(d)		4.47	%		(8.72	)%		7.98	%		7.93	%		7.21	%		(.68	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$334,220			$506,033			$475,604			$135,677			$168,440			$150,011
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.67	%^		.59	%		.53	%		.66	%		.97	%		1.05	%
Expenses, before waivers/reimbursements(e)		.92	%^		.78	%		.74	%		.92	%		1.24	%		1.31	%
Net investment income(b)		3.67	%^		5.95	%		4.76	%		2.44	%		2.47	%		2.80	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

abfunds.com AB BOND INFLATION STRATEGY    ^|    77

FINANCIAL HIGHLIGHTS (continued)

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

	Class R
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.32			$  12.00			$  11.57			$  10.93			$  10.46			$  10.82
Income From Investment Operations
Net investment income(a)(b)		.17			.61			.45			.21			.20			.24
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.26			(1.67	)		.38			.62			.49			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.43			(1.06	)		.83			.83			.69			(.13	)
Less: Dividends and Distributions
Dividends from net investment income		(.16	)		(.58	)		(.40	)		(.19	)		(.22	)		(.23	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.16	)		(.62	)		(.40	)		(.19	)		(.22	)		(.23	)
Net asset value, end of period		$  10.59			$  10.32			$  12.00			$  11.57			$  10.93			$  10.46
Total Return
Total investment return based on net asset value(d)		4.19	%		(9.15	)%		7.44	%		7.61	%(f)		6.64	%		(1.15	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,431			$2,633			$2,369			$3,066			$6,992			$6,354
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.17	%^		1.09	%		1.04	%		1.21	%		1.47	%		1.54	%
Expenses, before waivers/reimbursements(e)		1.53	%^		1.43	%		1.40	%		1.58	%		1.83	%		1.90	%
Net investment income(b)		3.36	%^		5.36	%		3.74	%		1.88	%		1.88	%		2.24	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

78    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Class K
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.28			$  11.96			$  11.54			$  10.92			$  10.45			$  10.81
Income From Investment Operations
Net investment income(a)(b)		.19			.61			.52			.27			.17			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.26			(1.64	)		.34			.58			.54			(.38	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.45			(1.03	)		.86			.85			.71			(.11	)
Less: Dividends and Distributions
Dividends from net investment income		(.18	)		(.61	)		(.44	)		(.23	)		(.23	)		(.25	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.18	)		(.65	)		(.44	)		(.23	)		(.24	)		(.25	)
Net asset value, end of period		$  10.55			$  10.28			$  11.96			$  11.54			$  10.92			$  10.45
Total Return
Total investment return based on net asset value(d)		4.35	%		(8.94	)%		7.64	%		7.74	%		6.88	%		(1.01	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$4,593			$4,373			$7,420			$6,790			$5,051			$12,055
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.92	%^		.82	%		.78	%		.89	%		1.27	%		1.35	%
Expenses, before waivers/reimbursements(e)		1.22	%^		1.10	%		1.09	%		1.21	%		1.57	%		1.65	%
Net investment income(b)		3.64	%^		5.33	%		4.34	%		2.40	%		1.61	%		2.57	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

abfunds.com AB BOND INFLATION STRATEGY    ^|    79

FINANCIAL HIGHLIGHTS (continued)

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

	Class I
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.17			$  11.84			$  11.44			$  10.84			$  10.38			$  10.74
Income From Investment Operations
Net investment income(a)(b)		.20			.66			.51			.27			.25			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.25			(1.64	)		.37			.59			.49			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.45			(.98	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.65	)		(.48	)		(.26	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.19	)		(.69	)		(.48	)		(.26	)		(.28	)		(.28	)
Net asset value, end of period		$  10.43			$  10.17			$  11.84			$  11.44			$  10.84			$  10.38
Total Return
Total investment return based on net asset value(d)		4.46	%		(8.67	)%		7.88	%		7.97	%		7.23	%		(.73	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,371			$6,414			$6,093			$8,297			$9,893			$5,688
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.67	%^		.59	%		.53	%		.65	%		.94	%		1.11	%
Expenses, before waivers/reimbursements(e)		.87	%^		.78	%		.74	%		.88	%		1.18	%		1.34	%
Net investment income(b)		3.90	%^		5.92	%		4.31	%		2.42	%		2.40	%		2.67	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

80    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Class 1
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.06			$  11.73			$  11.35			$  10.77			$  10.33			$  10.69
Income From Investment Operations
Net investment income(a)(b)		.19			.64			.52			.26			.24			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.25			(1.62	)		.34			.59			.48			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.44			(.98	)		.86			.85			.72			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.65	)		(.48	)		(.27	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.19	)		(.69	)		(.48	)		(.27	)		(.28	)		(.28	)
Net asset value, end of period		$  10.31			$  10.06			$  11.73			$  11.35			$  10.77			$  10.33
Total Return
Total investment return based on net asset value(d)		4.40	%		(8.75	)%		7.77	%		7.84	%		7.18	%		(.77	)%(f)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$373,131			$390,055			$377,333			$312,381			$319,282			$306,620
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.77	%^		.69	%		.63	%		.75	%		1.07	%		1.14	%
Expenses, before waivers/reimbursements(e)		.89	%^		.78	%		.75	%		.88	%		1.20	%		1.28	%
Net investment income(b)		3.71	%^		5.76	%		4.44	%		2.42	%		2.31	%		2.66	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

abfunds.com AB BOND INFLATION STRATEGY    ^|    81

FINANCIAL HIGHLIGHTS (continued)

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

	Class 2
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.06			$  11.73			$  11.34			$  10.76			$  10.32			$  10.69
Income From Investment Operations
Net investment income(a)(b)		.19			.64			.53			.28			.26			.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.25			(1.61	)		.35			.58			.48			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.44			(.97	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.66	)		(.49	)		(.28	)		(.29	)		(.29	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.19	)		(.70	)		(.49	)		(.28	)		(.30	)		(.29	)
Net asset value, end of period		$  10.31			$  10.06			$  11.73			$  11.34			$  10.76			$  10.32
Total Return
Total investment return based on net asset value(d)		4.55	%		(8.77	)%		7.98	%		7.96	%		7.19	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$45,918			$59,262			$66,348			$60,289			$58,829			$50,705
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.67	%^		.58	%		.53	%		.65	%		.96	%		1.03	%
Expenses, before waivers/reimbursements(e)		.79	%^		.67	%		.65	%		.78	%		1.09	%		1.17	%
Net investment income(b)		3.73	%^		5.75	%		4.51	%		2.53	%		2.45	%		2.78	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

82    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Class Z
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.10			$  11.77			$  11.38			$  10.80			$  10.35			$  10.72
Income From Investment Operations
Net investment income(a)(b)		.20			.67			.56			.24			.27			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(1.65	)		.32			.62			.47			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.44			(.98	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.65	)		(.49	)		(.28	)		(.28	)		(.29	)
Distributions from net realized gain on investment transactions		– 0	–		(.04	)		– 0	–		– 0	–		�� 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.19	)		(.69	)		(.49	)		(.28	)		(.29	)		(.29	)
Net asset value, end of period		$  10.35			$  10.10			$  11.77			$  11.38			$  10.80			$  10.35
Total Return
Total investment return based on net asset value(d)		4.42	%		(8.65	)%		7.94	%		7.92	%		7.26	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10,947			$10,320			$20,910			$11,016			$32,606			$26,142
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.68	%^		.58	%		.53	%		.67	%		.96	%		1.06	%
Expenses, before waivers/reimbursements(e)		.80	%^		.68	%		.65	%		.81	%		1.10	%		1.21	%
Net investment income(b)		3.88	%^		6.02	%		4.81	%		2.16	%		2.50	%		2.69	%
Portfolio turnover rate		101	%		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 84.

abfunds.com AB BOND INFLATION STRATEGY    ^|    83

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/bank overdraft expense:

	Six Months Ended April 30, 2023			Year Ended October 31,
	(unaudited)			2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.75	%^		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.00	%^		.95	%		.97	%		1.01	%		1.02	%		1.01	%
Class C
Net of waivers/reimbursements		1.50	%^		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.75	%^		1.69	%		1.72	%		1.77	%		1.77	%		1.76	%
Advisor Class
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.74	%^		.69	%		.72	%		.77	%		.77	%		.76	%
Class R
Net of waivers/reimbursements		1.00	%^		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Before waivers/reimbursements		1.36	%^		1.34	%		1.36	%		1.37	%		1.36	%		1.36	%
Class K
Net of waivers/reimbursements		.75	%^		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.05	%^		1.02	%		1.05	%		1.07	%		1.04	%		1.05	%
Class I
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.69	%^		.69	%		.71	%		.73	%		.73	%		.73	%
Class 1
Net of waivers/reimbursements		.60	%^		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.71	%^		.69	%		.72	%		.73	%		.73	%		.74	%
Class 2
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.61	%^		.59	%		.62	%		.63	%		.63	%		.64	%
Class Z
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.62	%^		.60	%		.62	%		.63	%		.64	%		.65	%

(f) 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.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Michael Rosborough⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1,
Boston, MA 02114-2016   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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 and Rosborough are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB BOND INFLATION STRATEGY    ^|    87

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 in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 at the request of the directors. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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

abfunds.com AB BOND INFLATION STRATEGY    ^|    89

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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; 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 the 1-, 3-, 5- and 10-year periods ended July 31, 2022 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 discussed with the Adviser the reasons it was above the median. The directors also took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President 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 any sub-advised funds utilizing investment strategies similar to those of 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 Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-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 and sub-advised fund 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.

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. The directors noted that the Fund’s expense ratio was in line with the medians.

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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 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 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

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

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Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

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FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

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Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

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TAXABLE

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ALTERNATIVES

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Select US Long/Short Portfolio

MULTI-ASSET

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CLOSED-END FUNDS

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EXCHANGE-TRADED FUNDS

Disruptors ETF

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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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    93

NOTES

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NOTES

abfunds.com AB BOND INFLATION STRATEGY    ^|    95

NOTES

96    ^|    AB BOND INFLATION  STRATEGY abfunds.com

AB BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

BIS-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB HIGH YIELD PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the AB High Yield Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    1

SEMI-ANNUAL REPORT

June 7, 2023

This report provides management’s discussion of fund performance for the AB High Yield Portfolio for the semi-annual reporting period ended April 30, 2023.

At meetings held on January 31–February 1, 2023, the Board of Directors of the AB Bond Fund, Inc. (the “Board”) approved the reorganization of the Fund into a newly created exchange-traded fund (“ETF”) (the “Conversion”), to be managed by the Adviser. Pursuant to an Agreement and Plan of Acquisition and Termination (the “Plan”), the Fund was converted into an ETF (the “Acquiring Portfolio”), a newly created series of AB Active ETFs, Inc., with an identical investment objective, and identical fundamental investment policies and investment strategies as the Fund. The closing date of the Conversion was May 15, 2023. In connection with the Conversion, the assets and liabilities of the Fund were transferred to the Acquiring Portfolio, and stockholders of the Fund received shares of the Acquiring Portfolio, equal in aggregate net asset value (“NAV”) to the NAV of their shares of the Fund (less cash corresponding to any fractional share amount). Also in connection with the Conversion, Class A and Class Z shares of the Fund were automatically converted into Advisor Class shares on April 14, 2023. The Adviser believes that the Conversion will provide multiple benefits for investors of the Fund, including lower net expenses, additional share trading flexibility, increased transparency of portfolio holdings and enhanced tax efficiency.

The Fund’s investment objective is to seek to maximize total return consistent with prudent investment management.

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB HIGH YIELD PORTFOLIO
Advisor Class Shares		6.20%		0.02%
Primary Benchmark: Bloomberg US Corporate HY 2% Issuer Capped Index		6.21%		1.21%
Markit iBoxx USD Liquid High Yield Index		5.64%		1.50%

INVESTMENT RESULTS

The preceding table shows the Fund’s performance compared with its primary benchmark, the Bloomberg US Corporate High Yield (“HY”) 2% Issuer Capped Index, for the six- and 12-month periods ended April 30, 2023. The table also includes the Markit iBoxx USD Liquid High Yield Index.

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During both periods, the Fund underperformed the primary benchmark. In the six-month period, industry allocation was the largest detractor, relative to the benchmark, mainly from an overweight to banking, an underweight to consumer cyclical–other, along with off-benchmark exposure to US Treasuries and high-yield credit default swaps. Yield-curve positioning was a minor detractor. Security selection contributed to performance, as selection within telecommunications, automotive, retail, consumer cyclical–other, consumer noncyclical, basic, capital goods and transportation services added more to performance than losses within banking, finance and technology. Currency decisions were a minor contributor to performance during the period.

During the 12-month period, industry allocation was the primary detractor, mostly from an underweight to energy, an overweight to banking, the utilization of high-yield credit default swaps and total return swaps, and exposure to US Treasuries that lost more than gains from underweights to technology and real estate investment trusts, as well as exposure to investment-grade corporate credit default swaps. Security selection contributed, as gains from selection within telecommunications, basic industry, capital goods, retailers, consumer noncyclical and energy were partially offset by losses among technology, finance and banking. Yield-curve positioning contributed, mainly from an underweight on the six-month part of the curve and an overweight on the 10-year part of the curve that added more to performance than a loss from an overweight to the five-year part of the curve. Currency decisions added modestly to performance.

During both periods, the Fund used derivatives in the form of futures to hedge duration and interest-rate risk, and interest rate swaps to hedge duration risk. 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 to take active exposure as well as to hedge investment-grade and high-yield credit risk taken through cash bonds. Total return swaps were used to create synthetic high-yield exposure. Credit options were used to generate income over the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. Developed-market government bonds rose the most in the US, Australia

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    3

and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek to maximize total return, utilizing a high-yield strategy with a global, multi-sector approach. The Team invests in corporate bonds from US and non-US issuers, and government bonds from developed and emerging markets, primarily focusing on lower-rated bonds (“junk bonds”), although it may also invest in investment-grade bonds.

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities rated Ba1 or lower by Moody’s Investors Service, or BB+ or lower by S&P Global Ratings or Fitch Ratings, or the equivalent by any nationally recognized statistical rating organization (commonly known as “junk bonds”); unrated securities considered by the Adviser to be of comparable quality; and related derivatives.

The Fund may invest in fixed-income securities with a range of maturities from short- to long-term. The Fund may also invest in equity securities.

In selecting securities for purchase or sale by the Fund, the Adviser attempts to take advantage of inefficiencies that it believes exist in the global debt markets. These inefficiencies arise from investor behavior, market complexity, and the investment limitations to which investors are subject. The Adviser combines quantitative analysis with fundamental credit and economic research in seeking to exploit these inefficiencies.

The Fund invests most often in securities of US issuers, but may also purchase fixed-income securities of foreign issuers, including securities denominated in foreign currencies and securities of emerging-market issuers. The Adviser may or may not hedge any foreign currency exposure through the use of currency-related derivatives.

The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps, to a significant extent. Derivatives may

(continued on next page)

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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, for example, use credit default and interest rate swaps to gain exposure to the fixed-income markets or particular fixed-income securities and, as noted above, may use currency-related derivatives. The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure substantially in excess of the Fund’s net assets.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Corporate HY 2% Issuer Capped Index and the Markit iBoxx USD Liquid High Yield Index are unmanaged and do not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Corporate HY 2% Issuer Capped Index is the 2% Issuer Capped component of the US Corporate High Yield Index, which represents the performance of fixed-income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million and at least one year to maturity. The Markit iBoxx USD Liquid High Yield Index consists of USD high-yield bond issues with more than $400 million outstanding, selected to provide a balanced representation of the broad USD high-yield liquid corporate bond universe. 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 or stock market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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DISCLOSURES AND RISKS (continued)

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 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 for fixed-income securities with longer maturities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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.

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 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 are subject to increased economic, political, regulatory or other uncertainties.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or 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. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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.

Performance information prior to July 26, 2016, shown reflects the historical performance of the AB High-Yield Portfolio, a series of The AB Pooling Portfolios (the “Accounting Survivor”). Upon completion of a reorganization of the Accounting Survivor into the Fund on July 26, 2016 (the “Reorganization”), Class Z shares of the Fund assumed the performance and financial history of the Accounting Survivor. Because the Fund has higher expenses than the Accounting Survivor had, the Accounting Survivor’s performance would have been lower than that shown had it operated with the Fund’s current expense levels. At the time of the Reorganization, the Accounting Survivor and the Fund had substantially similar investment objectives and strategies.

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DISCLOSURES AND RISKS (continued)

From February 26, 2018, through April 29, 2021, the Fund had a performance-based, or fulcrum, advisory fee. Accordingly, performance information shown during this period reflects performance fee adjustments and would have been different if the Fund had been managed under the current advisory fee arrangement. Class A and Class Z shares of the Fund were not in operation during this period.

Effective April 14, 2023, Class A and Class Z shares were converted to Advisor Class shares.

All fees and expenses related to the operation of the Fund have been deducted. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
ADVISOR CLASS SHARES2						7.13%
1 Year		0.02%		0.02%
5 Years		3.53%		3.53%
10 Years		4.16%		4.16%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratio as 1.35% for Advisor Class shares, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limited the Fund’s total annual operating expense ratio (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) to 0.60% for Advisor Class shares. These waivers/reimbursements may not be terminated before January 31, 2024, and may be extended by the Adviser for additional one-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 ratio shown above may differ from the expense ratio 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 April 30, 2023.

2 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
ADVISOR CLASS SHARES
1 Year		-4.27%
5 Years		3.50%
10 Years		4.28%

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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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Advisor Class
Actual	$	1,000	$	1,062.00	$	3.07		0.60	%	$	3.12		0.61	%
Hypothetical**	$	1,000	$	1,021.82	$	3.01		0.60	%	$	3.06		0.61	%

* Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365, (to reflect the one-half year period).

+ 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 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $69.3

1 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

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
CORPORATES - NON-INVESTMENT GRADE – 67.1%
Industrial – 60.8%
Basic – 3.4%
Arconic Corp. 6.125%, 02/15/2028(a)	U.S.$		11	$	10,854
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(a)			170		140,091
7.50%, 09/30/2029(a)			17		12,297
Big River Steel LLC/BRS Finance Corp. 6.625%, 01/31/2029(a)			16		15,897
Cleveland-Cliffs, Inc. 4.625%, 03/01/2029(a)			6		5,430
Crown Americas LLC/Crown Americas Capital Corp. VI 4.75%, 02/01/2026			7		6,855
CVR Partners LP/CVR Nitrogen Finance Corp. 6.125%, 06/15/2028(a)			137		123,921
Element Solutions, Inc. 3.875%, 09/01/2028(a)			110		97,197
ERP Iron Ore LLC 9.039%, 12/31/2019(b)(c)(d)(e)(f)			5		3,332
FMG Resources (August 2006) Pty Ltd. 4.375%, 04/01/2031(a)			258		223,912
6.125%, 04/15/2032(a)			180		174,081
Graham Packaging Co., Inc. 7.125%, 08/15/2028(a)			119		104,140
Graphic Packaging International LLC 3.50%, 03/15/2028(a)			12		10,969
3.75%, 02/01/2030(a)			23		20,566
4.75%, 07/15/2027(a)			28		27,081
INEOS Styrolution Group GmbH 2.25%, 01/16/2027(a)	EUR		100		95,580
Ingevity Corp. 3.875%, 11/01/2028(a)	U.S.$		30		26,405
Intelligent Packaging Holdco Issuer LP 9.00% (9.00% Cash or 9.75% PIK), 01/15/2026(a)(f)			39		28,089
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC 6.00%, 09/15/2028(a)			98		81,534
Kobe US Midco 2, Inc. 9.25% (9.25% Cash or 10.00% PIK), 11/01/2026(a)(f)			97		67,978
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(b)(c)(d)(e)(g)			60		– 0	–

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Mercer International, Inc. 5.125%, 02/01/2029	U.S.$		131	$	109,451
Roller Bearing Co. of America, Inc. 4.375%, 10/15/2029(a)			12		10,898
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(a)			431		396,736
Sealed Air Corp. 5.50%, 09/15/2025(a)			33		33,069
6.875%, 07/15/2033(a)			99		105,122
Sealed Air Corp./Sealed Air Corp. US 6.125%, 02/01/2028(a)			53		53,823
WR Grace Holdings LLC 4.875%, 06/15/2027(a)			158		150,300
5.625%, 08/15/2029(a)			261		225,230
					2,360,838
Capital Goods – 5.1%
ARD Finance SA 5.00% (5.00% Cash or 5.75% PIK), 06/30/2027(a)(f)	EUR		120		101,221
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 4.00%, 09/01/2029(a)	U.S.$		200		162,334
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a)			200		188,592
5.25%, 08/15/2027(a)			200		170,179
Ball Corp. 2.875%, 08/15/2030			265		222,268
Bombardier, Inc. 6.00%, 02/15/2028(a)			3		2,845
7.875%, 04/15/2027(a)			173		172,572
Chart Industries, Inc. 7.50%, 01/01/2030(a)			41		42,289
Clean Harbors, Inc. 4.875%, 07/15/2027(a)			16		15,489
5.125%, 07/15/2029(a)			11		10,561
6.375%, 02/01/2031(a)			68		69,420
Crown Americas LLC 5.25%, 04/01/2030			31		30,092
Crown Cork & Seal Co., Inc. 7.375%, 12/15/2026			20		21,029
Eco Material Technologies, Inc. 7.875%, 01/31/2027(a)			218		209,114
EnerSys 4.375%, 12/15/2027(a)			80		74,919

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)	U.S.$		34	$	33,660
GFL Environmental, Inc. 3.50%, 09/01/2028(a)			28		25,499
Griffon Corp. 5.75%, 03/01/2028			39		35,822
Harsco Corp. 5.75%, 07/31/2027(a)			151		127,581
JELD-WEN, Inc. 4.625%, 12/15/2025(a)			6		5,787
LSB Industries, Inc. 6.25%, 10/15/2028(a)(h)			197		173,988
Madison IAQ LLC 5.875%, 06/30/2029(a)			263		205,922
Mueller Water Products, Inc. 4.00%, 06/15/2029(a)			13		11,803
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		107,754
Stericycle, Inc. 3.875%, 01/15/2029(a)	U.S.$		55		49,622
TK Elevator US Newco, Inc. 5.25%, 07/15/2027(a)			200		186,935
TransDigm, Inc. 4.625%, 01/15/2029			150		135,805
4.875%, 05/01/2029			84		76,314
6.25%, 03/15/2026(a)			243		244,165
6.375%, 06/15/2026			79		78,950
6.75%, 08/15/2028(a)			176		178,678
Triumph Group, Inc. 7.75%, 08/15/2025			23		21,384
9.00%, 03/15/2028(a)			245		248,522
WESCO Distribution, Inc. 7.125%, 06/15/2025(a)			14		14,234
7.25%, 06/15/2028(a)			107		109,970
					3,565,319
Communications - Media – 10.1%
Advantage Sales & Marketing, Inc. 6.50%, 11/15/2028(a)			106		81,607
Altice Financing SA 5.00%, 01/15/2028(a)			228		184,972
5.75%, 08/15/2029(a)			200		158,696
AMC Networks, Inc. 4.25%, 02/15/2029			298		206,538
Arches Buyer, Inc. 6.125%, 12/01/2028(a)			100		86,706

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 02/01/2031(a)	U.S.$		50	$	41,144
4.25%, 01/15/2034(a)			482		369,013
4.50%, 08/15/2030(a)			235		198,209
4.50%, 06/01/2033(a)			53		42,258
4.75%, 03/01/2030(a)			40		34,432
5.00%, 02/01/2028(a)			193		178,845
5.125%, 05/01/2027(a)			295		278,963
6.375%, 09/01/2029(a)			66		62,742
7.375%, 03/01/2031(a)			169		165,620
Clear Channel Outdoor Holdings, Inc. 5.125%, 08/15/2027(a)			239		215,886
CSC Holdings LLC 3.375%, 02/15/2031(a)			208		143,191
4.50%, 11/15/2031(a)			200		140,053
7.50%, 04/01/2028(a)			200		125,454
11.25%, 05/15/2028(a)			209		208,276
DISH DBS Corp. 5.25%, 12/01/2026(a)			270		206,080
5.75%, 12/01/2028(a)			263		187,458
5.875%, 11/15/2024			86		71,266
7.375%, 07/01/2028			71		35,468
7.75%, 07/01/2026			101		58,315
DISH Network Corp. 3.375%, 08/15/2026(i)			27		12,848
Gray Escrow II, Inc. 5.375%, 11/15/2031(a)			338		216,899
iHeartCommunications, Inc. 4.75%, 01/15/2028(a)			118		91,813
5.25%, 08/15/2027(a)			37		29,233
6.375%, 05/01/2026			5		4,394
8.375%, 05/01/2027			40		26,358
Lamar Media Corp. 4.875%, 01/15/2029			8		7,620
LCPR Senior Secured Financing DAC 5.125%, 07/15/2029(a)			200		171,173
6.75%, 10/15/2027(a)			200		190,555
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(a)			349		309,988
National CineMedia LLC 5.75%, 08/15/2026(c)(j)			21		671
5.875%, 04/15/2028(a)(c)(j)			60		21,433
Outfront Media Capital LLC/Outfront Media Capital Corp. 4.25%, 01/15/2029(a)			101		86,269
4.625%, 03/15/2030(a)			11		9,307

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Radiate Holdco LLC/Radiate Finance, Inc. 4.50%, 09/15/2026(a)	U.S.$		214	$	167,488
Scripps Escrow II, Inc. 3.875%, 01/15/2029(a)			246		191,740
Sinclair Television Group, Inc. 4.125%, 12/01/2030(a)			130		102,500
5.125%, 02/15/2027(a)			9		7,751
5.50%, 03/01/2030(a)			344		265,717
Sirius XM Radio, Inc. 3.875%, 09/01/2031(a)			338		255,400
4.00%, 07/15/2028(a)			97		81,980
4.125%, 07/01/2030(a)			111		88,999
5.00%, 08/01/2027(a)			41		37,719
5.50%, 07/01/2029(a)			24		21,404
Summer BidCo BV 9.00% (9.00% Cash or 9.75% PIK), 11/15/2025(a)(f)	EUR		157		144,811
TEGNA, Inc. 5.00%, 09/15/2029	U.S.$		61		53,607
Univision Communications, Inc. 4.50%, 05/01/2029(a)			254		218,994
7.375%, 06/30/2030(a)			150		143,883
Urban One, Inc. 7.375%, 02/01/2028(a)			54		49,081
Virgin Media Finance PLC 5.00%, 07/15/2030(a)			400		336,626
Ziggo Bond Co. BV 5.125%, 02/28/2030(a)			200		162,451
					6,989,904
Communications - Telecommunications – 2.4%
Altice France SA/France 3.375%, 01/15/2028(a)	EUR		100		84,236
5.50%, 01/15/2028(a)	U.S.$		200		157,018
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(a)			200		190,648
Consolidated Communications, Inc. 6.50%, 10/01/2028(a)			161		125,431
Embarq Corp. 7.995%, 06/01/2036			123		52,850
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			43		34,608
8.75%, 05/15/2030(a)			69		68,253
Hughes Satellite Systems Corp. 6.625%, 08/01/2026			163		153,930

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(b)(c)(e)	U.S.$		158	$	– 0	–
8.50%, 10/15/2024(b)(c)(e)(g)			47		– 0	–
Level 3 Financing, Inc. 3.75%, 07/15/2029(a)			180		101,218
3.875%, 11/15/2029(a)			86		62,791
4.25%, 07/01/2028(a)			134		78,009
Lorca Telecom Bondco SA 4.00%, 09/18/2027(a)	EUR		142		143,833
Telecom Italia Capital SA 6.375%, 11/15/2033	U.S.$		90		80,846
7.20%, 07/18/2036			175		158,879
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(a)			200		170,285
					1,662,835
Consumer Cyclical - Automotive – 4.6%
Allison Transmission, Inc. 5.875%, 06/01/2029(a)			108		106,413
Clarios Global LP/Clarios US Finance Co. 8.50%, 05/15/2027(a)			59		59,422
Dana, Inc. 4.25%, 09/01/2030			20		16,254
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(a)			255		236,396
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(b)(c)(e)(g)			32		– 0	–
(First Lien) 11.00%, 10/31/2024(b)(c)(e)(g)			13		– 0	–
Ford Motor Co. 3.25%, 02/12/2032			162		125,258
4.75%, 01/15/2043			105		78,965
6.10%, 08/19/2032			307		292,745
Ford Motor Credit Co. LLC 2.70%, 08/10/2026			200		177,408
4.00%, 11/13/2030			200		171,440
4.95%, 05/28/2027			200		189,335
5.113%, 05/03/2029			200		186,335
7.35%, 11/04/2027			206		212,184
Goodyear Tire & Rubber Co. (The) 5.00%, 07/15/2029			153		135,474
IHO Verwaltungs GmbH 6.00% (6.00% Cash or 6.75% PIK), 05/15/2027(a)(f)			200		184,776
Jaguar Land Rover Automotive PLC 4.50%, 10/01/2027(a)			200		168,409
5.875%, 01/15/2028(a)			200		173,498

20    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Mclaren Finance PLC 7.50%, 08/01/2026(a)	U.S.$		200	$	164,187
PM General Purchaser LLC 9.50%, 10/01/2028(a)			90		85,295
Real Hero Merger Sub 2, Inc. 6.25%, 02/01/2029(a)			130		97,847
Titan International, Inc. 7.00%, 04/30/2028			19		17,011
ZF North America Capital, Inc. 4.75%, 04/29/2025(a)			150		146,547
7.125%, 04/14/2030(a)			158		163,161
					3,188,360
Consumer Cyclical - Entertainment – 3.9%
Boyne USA, Inc. 4.75%, 05/15/2029(a)			26		23,574
Carnival Corp. 4.00%, 08/01/2028(a)			220		190,208
5.75%, 03/01/2027(a)			195		159,894
9.875%, 08/01/2027(a)			78		79,267
10.50%, 02/01/2026(a)			260		269,750
Cedar Fair LP 5.25%, 07/15/2029			15		13,931
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.375%, 04/15/2027			128		122,601
5.50%, 05/01/2025(a)			63		62,838
Cinemark USA, Inc. 5.25%, 07/15/2028(a)			151		135,103
Lindblad Expeditions LLC 6.75%, 02/15/2027(a)			41		38,796
NCL Corp., Ltd. 3.625%, 12/15/2024(a)			79		74,291
5.875%, 03/15/2026(a)			24		20,637
8.375%, 02/01/2028(a)			90		90,758
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(a)			91		80,535
5.50%, 08/31/2026(a)			49		44,713
5.50%, 04/01/2028(a)			173		152,621
7.25%, 01/15/2030(a)			30		30,006
9.25%, 01/15/2029(a)			82		86,715
11.50%, 06/01/2025(a)			74		78,532
SeaWorld Parks & Entertainment, Inc. 5.25%, 08/15/2029(a)			121		108,829
8.75%, 05/01/2025(a)			33		33,495

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Six Flags Entertainment Corp. 4.875%, 07/31/2024(a)	U.S.$		117	$	117,010
Vail Resorts, Inc. 6.25%, 05/15/2025(a)			28		28,199
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			141		120,941
7.00%, 02/15/2029(a)			148		125,620
13.00%, 05/15/2025(a)			148		155,834
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			29		24,705
VOC Escrow Ltd. 5.00%, 02/15/2028(a)			241		214,650
					2,684,053
Consumer Cyclical - Other – 4.0%
Adams Homes, Inc. 7.50%, 02/15/2025(a)			41		38,550
Beazer Homes USA, Inc. 6.75%, 03/15/2025			28		27,886
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(a)			151		138,351
Builders FirstSource, Inc. 6.375%, 06/15/2032(a)			115		114,794
Caesars Entertainment, Inc. 6.25%, 07/01/2025(a)			239		239,329
7.00%, 02/15/2030(a)			65		65,628
Churchill Downs, Inc. 4.75%, 01/15/2028(a)			105		99,087
CP Atlas Buyer, Inc. 7.00%, 12/01/2028(a)			26		19,670
Everi Holdings, Inc. 5.00%, 07/15/2029(a)			21		18,717
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			223		202,882
Forestar Group, Inc. 3.85%, 05/15/2026(a)			41		37,907
Hilton Domestic Operating Co., Inc. 3.625%, 02/15/2032(a)			320		273,062
4.875%, 01/15/2030			17		16,163
5.75%, 05/01/2028(a)			11		10,974
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)			241		211,005
5.00%, 06/01/2029(a)			49		44,343

22    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Installed Building Products, Inc. 5.75%, 02/01/2028(a)	U.S.$		40	$	37,911
Mattamy Group Corp. 4.625%, 03/01/2030(a)			232		203,300
MGM Resorts International 4.75%, 10/15/2028			138		128,254
6.75%, 05/01/2025			90		90,800
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. 5.625%, 09/01/2029(a)			20		14,494
Scientific Games International, Inc. 7.00%, 05/15/2028(a)			9		9,007
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 04/01/2029			20		17,826
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(a)			16		15,548
Taylor Morrison Communities, Inc. 5.125%, 08/01/2030(a)			61		57,386
5.875%, 06/15/2027(a)			17		16,961
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc. 5.625%, 03/01/2024(a)			17		16,954
Travel + Leisure Co. 4.50%, 12/01/2029(a)			52		45,365
4.625%, 03/01/2030(a)			12		10,376
6.625%, 07/31/2026(a)			249		248,577
Wyndham Hotels & Resorts, Inc. 4.375%, 08/15/2028(a)			70		65,105
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a)			184		176,797
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/2029(a)			86		79,249
					2,792,258
Consumer Cyclical - Restaurants – 0.7%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(a)			146		131,451
5.75%, 04/15/2025(a)			124		124,403
IRB Holding Corp. 7.00%, 06/15/2025(a)			5		5,052
Papa John’s International, Inc. 3.875%, 09/15/2029(a)			22		18,987
Stonegate Pub Co. Financing 2019 PLC 8.25%, 07/31/2025(a)	GBP		113		130,420

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Yum! Brands, Inc. 4.625%, 01/31/2032	U.S.$		96	$	89,604
					499,917
Consumer Cyclical - Retailers – 3.9%
Arko Corp. 5.125%, 11/15/2029(a)			99		80,182
Asbury Automotive Group, Inc. 4.625%, 11/15/2029(a)			99		88,197
5.00%, 02/15/2032(a)			26		22,411
Bath & Body Works, Inc. 6.625%, 10/01/2030(a)			117		112,341
6.75%, 07/01/2036			160		142,344
6.875%, 11/01/2035			128		115,261
7.50%, 06/15/2029			17		17,305
BCPE Ulysses Intermediate, Inc. 7.75% (7.75% Cash or 8.50% PIK), 04/01/2027(a)(f)			28		22,285
Carvana Co. 5.50%, 04/15/2027(a)			39		16,781
5.875%, 10/01/2028(a)			114		47,313
FirstCash, Inc. 5.625%, 01/01/2030(a)			11		10,217
Foundation Building Materials, Inc. 6.00%, 03/01/2029(a)			29		23,248
Group 1 Automotive, Inc. 4.00%, 08/15/2028(a)			9		7,984
Kontoor Brands, Inc. 4.125%, 11/15/2029(a)			72		61,168
Levi Strauss & Co. 3.50%, 03/01/2031(a)			86		72,752
Michaels Cos, Inc. (The) 7.875%, 05/01/2029(a)			58		38,825
NMG Holding Co., Inc./Neiman Marcus Group LLC 7.125%, 04/01/2026(a)			309		287,351
Penske Automotive Group, Inc. 3.75%, 06/15/2029			80		69,505
PetSmart, Inc./PetSmart Finance Corp. 7.75%, 02/15/2029(a)			250		246,394
Rite Aid Corp. 7.50%, 07/01/2025(a)			17		11,690
8.00%, 11/15/2026(a)			263		142,140
Sonic Automotive, Inc. 4.625%, 11/15/2029(a)			115		96,620
4.875%, 11/15/2031(a)			238		192,119

24    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a)	U.S.$		406	$	368,408
SRS Distribution, Inc. 6.125%, 07/01/2029(a)			19		15,715
Staples, Inc. 7.50%, 04/15/2026(a)			206		174,017
10.75%, 04/15/2027(a)			61		40,994
TPro Acquisition Corp. 11.00%, 10/15/2024(a)			33		32,949
White Cap Buyer LLC 6.875%, 10/15/2028(a)			19		16,616
William Carter Co. (The) 5.625%, 03/15/2027(a)			37		36,497
Wolverine World Wide, Inc. 4.00%, 08/15/2029(a)			68		56,492
					2,666,121
Consumer Non-Cyclical – 9.2%
AdaptHealth LLC 4.625%, 08/01/2029(a)			206		168,149
AHP Health Partners, Inc. 5.75%, 07/15/2029(a)			10		8,545
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(a)			346		306,733
4.875%, 02/15/2030(a)			100		93,570
6.50%, 02/15/2028(a)			31		31,505
Bausch Health Americas, Inc. 8.50%, 01/31/2027(a)			59		30,322
Bausch Health Cos., Inc. 4.875%, 06/01/2028(a)			196		129,585
5.00%, 02/15/2029(a)			20		9,281
6.25%, 02/15/2029(a)			31		14,236
Catalent Pharma Solutions, Inc. 3.125%, 02/15/2029(a)			14		11,784
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(a)			78		68,647
CHS/Community Health Systems, Inc. 4.75%, 02/15/2031(a)			20		16,129
5.25%, 05/15/2030(a)			498		414,533
5.625%, 03/15/2027(a)			17		15,698
6.00%, 01/15/2029(a)			14		12,408
6.875%, 04/01/2028(a)			138		102,143
6.875%, 04/15/2029(a)			126		93,236
8.00%, 03/15/2026(a)			44		43,697

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
DaVita, Inc. 3.75%, 02/15/2031(a)	U.S.$		154	$	123,434
4.625%, 06/01/2030(a)			212		184,756
Elanco Animal Health, Inc. 6.65%, 08/28/2028(h)			249		242,294
Embecta Corp. 5.00%, 02/15/2030(a)			275		237,202
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)			122		64,641
Garden Spinco Corp. 8.625%, 07/20/2030(a)			82		88,431
Grifols Escrow Issuer SA 4.75%, 10/15/2028(a)			200		160,723
Kronos Acquisition Holdings, Inc./KIK Custom Products, Inc. 7.00%, 12/31/2027(a)			150		131,846
Lamb Weston Holdings, Inc. 4.125%, 01/31/2030(a)			99		90,657
4.875%, 05/15/2028(a)			17		16,680
Legacy LifePoint Health LLC 4.375%, 02/15/2027(a)			107		91,085
6.75%, 04/15/2025(a)			102		98,127
LifePoint Health, Inc. 5.375%, 01/15/2029(a)			424		265,462
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 10.00%, 06/15/2029(a)			3		1,392
Medline Borrower LP 3.875%, 04/01/2029(a)			259		226,571
5.25%, 10/01/2029(a)			425		367,577
ModivCare, Inc. 5.875%, 11/15/2025(a)			24		22,937
Newell Brands, Inc. 4.70%, 04/01/2026(h)			125		119,367
6.00%, 04/01/2046(h)			27		21,036
6.375%, 09/15/2027			29		28,529
Organon & Co./Organon Foreign Debt Co-Issuer BV 4.125%, 04/30/2028(a)			200		184,032
Performance Food Group, Inc. 4.25%, 08/01/2029(a)			75		68,189
Perrigo Finance Unlimited Co. 4.40%, 06/15/2030(h)			219		197,648
Post Holdings, Inc. 4.50%, 09/15/2031(a)			125		109,383
4.625%, 04/15/2030(a)			58		52,363
5.50%, 12/15/2029(a)			100		95,144

26    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.75%, 03/01/2027(a)	U.S.$		14	$	13,901
Primo Water Holdings, Inc. 4.375%, 04/30/2029(a)			103		90,973
Radiology Partners, Inc. 9.25%, 02/01/2028(a)			6		2,709
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			24		19,969
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			316		221,550
Spectrum Brands, Inc. 3.875%, 03/15/2031(a)			193		158,339
5.75%, 07/15/2025			3		2,980
Tenet Healthcare Corp. 4.375%, 01/15/2030			153		140,779
6.125%, 10/01/2028			131		127,079
6.125%, 06/15/2030(a)			149		147,998
6.25%, 02/01/2027			51		50,747
Triton Water Holdings, Inc. 6.25%, 04/01/2029(a)			222		186,442
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			342		306,419
US Renal Care, Inc. 10.625%, 07/15/2027(a)			80		14,768
					6,344,360
Energy – 3.0%
Berry Petroleum Co. LLC 7.00%, 02/15/2026(a)			63		59,850
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			23		23,235
Callon Petroleum Co. 7.50%, 06/15/2030(a)			79		75,198
8.25%, 07/15/2025			8		7,978
Citgo Holding, Inc. 9.25%, 08/01/2024(a)			72		72,465
CITGO Petroleum Corp. 6.375%, 06/15/2026(a)			16		15,578
7.00%, 06/15/2025(a)			50		49,746
Civitas Resources, Inc. 5.00%, 10/15/2026(a)			58		54,781
CNX Resources Corp. 6.00%, 01/15/2029(a)			37		34,231
Comstock Resources, Inc. 6.75%, 03/01/2029(a)			58		52,499

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Crescent Energy Finance LLC 7.25%, 05/01/2026(a)	U.S.$		89	$	85,186
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(a)			86		76,612
EnLink Midstream Partners LP Series C 8.976% (LIBOR 3 Month + 4.11%), 05/30/2023(k)(l)			102		86,500
EQM Midstream Partners LP 4.50%, 01/15/2029(a)			65		55,366
4.75%, 01/15/2031(a)			119		98,010
5.50%, 07/15/2028			18		16,383
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026			7		6,737
6.50%, 10/01/2025			24		23,547
7.75%, 02/01/2028			28		27,592
8.00%, 01/15/2027			56		55,895
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			96		89,447
7.00%, 08/01/2027			21		20,282
Gulfport Energy Corp. 6.00%, 10/15/2024(c)			128		81
6.375%, 05/15/2025(c)			24		15
6.375%, 01/15/2026(c)			30		19
6.625%, 05/01/2023(c)			4		3
8.00%, 05/17/2026(a)			29		29,032
Hess Midstream Operations LP 4.25%, 02/15/2030(a)			17		15,105
5.625%, 02/15/2026(a)			130		128,157
Hilcorp Energy I LP/Hilcorp Finance Co. 5.75%, 02/01/2029(a)			5		4,670
ITT Holdings LLC 6.50%, 08/01/2029(a)			227		188,430
Moss Creek Resources Holdings, Inc. 10.50%, 05/15/2027(a)			48		46,760
Murphy Oil Corp. 6.125%, 12/01/2042(h)			20		17,138
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			27		25,464
7.50%, 01/15/2028(a)			37		33,752
Nabors Industries, Inc. 7.375%, 05/15/2027(a)			47		45,592
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			77		73,483

28    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)	U.S.$		64	$	61,609
NuStar Logistics LP 6.375%, 10/01/2030			17		16,376
PDC Energy, Inc. 5.75%, 05/15/2026			51		49,616
Southwestern Energy Co. 5.70%, 01/23/2025(h)			32		32,007
8.375%, 09/15/2028			10		10,464
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			150		144,657
Sunoco LP/Sunoco Finance Corp. 5.875%, 03/15/2028			16		15,701
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. 6.00%, 12/31/2030(a)			14		12,458
6.00%, 09/01/2031(a)			7		6,252
Venture Global Calcasieu Pass LLC 4.125%, 08/15/2031(a)			69		61,142
Weatherford International Ltd. 11.00%, 12/01/2024(a)			2		2,061
					2,107,162
Other Industrial – 0.4%
American Builders & Contractors Supply Co., Inc. 4.00%, 01/15/2028(a)			42		38,511
Belden, Inc. 3.375%, 07/15/2031(a)	EUR		153		141,748
Ritchie Bros Holdings, Inc. 6.75%, 03/15/2028(a)	U.S.$		64		66,225
7.75%, 03/15/2031(a)			52		55,249
					301,733
Services – 5.4%
ADT Security Corp. (The) 4.125%, 08/01/2029(a)			156		136,299
Allied Universal Holdco LLC/Allied Universal Finance Corp. 9.75%, 07/15/2027(a)			51		47,418
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL 4.625%, 06/01/2028(a)			400		347,335
4.875%, 06/01/2028(a)	GBP		100		101,526
ANGI Group LLC 3.875%, 08/15/2028(a)	U.S.$		194		151,597

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Aptim Corp. 7.75%, 06/15/2025(a)	U.S.$		34	$	27,061
APX Group, Inc. 5.75%, 07/15/2029(a)			44		39,335
6.75%, 02/15/2027(a)			241		241,306
Aramark Services, Inc. 5.00%, 02/01/2028(a)			172		163,607
Block, Inc. 2.75%, 06/01/2026			118		106,690
3.50%, 06/01/2031			100		81,460
Elior Group SA 3.75%, 07/15/2026(a)	EUR		100		95,937
Garda World Security Corp. 4.625%, 02/15/2027(a)	U.S.$		151		138,770
9.50%, 11/01/2027(a)			71		68,054
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			134		90,589
Monitronics International, Inc. 0.00%, 04/01/2020(b)(c)(d)(e)			14		– 0	–
MPH Acquisition Holdings LLC 5.50%, 09/01/2028(a)			193		147,640
5.75%, 11/01/2028(a)			312		196,567
Neptune Bidco US, Inc. 9.29%, 04/15/2029(a)			242		227,782
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)			105		94,117
6.25%, 01/15/2028(a)			311		291,416
Q-Park Holding I BV 2.00%, 03/01/2027(a)	EUR		236		221,815
Sabre GLBL, Inc. 7.375%, 09/01/2025(a)	U.S.$		101		89,738
9.25%, 04/15/2025(a)			65		59,954
11.25%, 12/15/2027(a)			110		96,521
Service Corp. International/US 3.375%, 08/15/2030			22		18,746
TripAdvisor, Inc. 7.00%, 07/15/2025(a)			27		27,177
Verscend Escrow Corp. 9.75%, 08/15/2026(a)			137		138,125
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			17		15,956
ZipRecruiter, Inc. 5.00%, 01/15/2030(a)			305		265,933
					3,728,471

30    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Technology – 2.7%
Ahead DB Holdings LLC 6.625%, 05/01/2028(a)	U.S.$		37	$	30,901
AthenaHealth Group, Inc. 6.50%, 02/15/2030(a)			42		34,450
Boxer Parent Co., Inc. 7.125%, 10/02/2025(a)			44		43,887
CommScope, Inc. 4.75%, 09/01/2029(a)			28		22,592
8.25%, 03/01/2027(a)			29		22,469
Elastic NV 4.125%, 07/15/2029(a)			17		14,663
Entegris Escrow Corp. 5.95%, 06/15/2030(a)			164		155,803
Gen Digital, Inc. 6.75%, 09/30/2027(a)			194		195,523
GoTo Group, Inc. 5.50%, 09/01/2027(a)			148		83,147
Imola Merger Corp. 4.75%, 05/15/2029(a)			40		34,641
NCR Corp. 5.00%, 10/01/2028(a)			86		75,038
5.125%, 04/15/2029(a)			209		180,808
5.75%, 09/01/2027(a)			27		26,426
Playtika Holding Corp. 4.25%, 03/15/2029(a)			90		77,115
Presidio Holdings, Inc. 4.875%, 02/01/2027(a)			125		118,386
8.25%, 02/01/2028(a)			200		188,439
Rackspace Technology Global, Inc. 3.50%, 02/15/2028(a)			341		141,400
5.375%, 12/01/2028(a)			109		25,620
Science Applications International Corp. 4.875%, 04/01/2028(a)			15		14,166
Seagate HDD Cayman 4.091%, 06/01/2029			117		101,523
Sensata Technologies, Inc. 3.75%, 02/15/2031(a)			102		88,623
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			190		143,800
Virtusa Corp. 7.125%, 12/15/2028(a)			37		29,826
					1,849,246
Transportation - Airlines – 0.8%
Air Canada 3.875%, 08/15/2026(a)			25		23,139

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Allegiant Travel Co. 7.25%, 08/15/2027(a)	U.S.$		38	$	37,646
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)			183		179,579
5.75%, 04/20/2029(a)			161		152,885
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			162		163,408
United Airlines, Inc. 4.625%, 04/15/2029(a)			22		19,910
					576,567
Transportation - Services – 1.2%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 4.75%, 04/01/2028(a)			151		135,567
5.375%, 03/01/2029(a)			157		142,372
5.75%, 07/15/2027(a)			22		20,957
Hertz Corp. (The) 4.625%, 12/01/2026(a)			183		164,779
5.00%, 12/01/2029(a)			196		160,285
Mundys SpA 1.875%, 02/12/2028(a)	EUR		153		141,195
PROG Holdings, Inc. 6.00%, 11/15/2029(a)	U.S.$		32		28,802
					793,957
					42,111,101
Financial Institutions – 5.4%
Banking – 0.4%
Ally Financial, Inc. Series B 4.70%, 05/15/2026(l)			164		120,950
Series C 4.70%, 05/15/2028(l)			28		19,670
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(a)			103		92,187
7.00%, 01/15/2026(a)			22		18,540
Societe Generale SA 8.00%, 09/29/2025(a)(l)			3		2,805
					254,152
Brokerage – 0.2%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			87		86,866
AG Issuer LLC 6.25%, 03/01/2028(a)			36		33,545

32    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Hightower Holding LLC 6.75%, 04/15/2029(a)	U.S.$		11	$	9,540
NFP Corp. 4.875%, 08/15/2028(a)			24		21,862
7.50%, 10/01/2030(a)			10		9,828
					161,641
Finance – 2.3%
Aircastle Ltd. 5.25%, 06/15/2026(a)(l)			31		20,889
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			98		86,983
CNG Holdings, Inc. 12.50%, 06/15/2024(a)			32		26,800
Compass Group Diversified Holdings LLC 5.25%, 04/15/2029(a)			55		49,620
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			214		85,087
Enova International, Inc. 8.50%, 09/01/2024(a)			13		12,914
8.50%, 09/15/2025(a)			131		126,367
goeasy Ltd. 5.375%, 12/01/2024(a)			176		167,104
Jefferies Finance LLC/JFIN Co-Issuer Corp. 5.00%, 08/15/2028(a)			400		337,597
Navient Corp. 4.875%, 03/15/2028			80		68,830
5.625%, 08/01/2033			151		113,770
6.125%, 03/25/2024			115		113,994
7.25%, 09/25/2023			35		35,081
SLM Corp. 3.125%, 11/02/2026			89		77,824
4.20%, 10/29/2025			190		175,567
Synchrony Financial 7.25%, 02/02/2033			117		107,429
					1,605,856
Insurance – 0.1%
Acrisure LLC/Acrisure Finance, Inc. 4.25%, 02/15/2029(a)			12		10,075
6.00%, 08/01/2029(a)			19		15,830
10.125%, 08/01/2026(a)			40		40,656
					66,561
Other Finance – 0.6%
Armor Holdco, Inc. 8.50%, 11/15/2029(a)			151		124,955

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Coinbase Global, Inc. 3.375%, 10/01/2028(a)	U.S.$		54	$	32,625
3.625%, 10/01/2031(a)			78		43,457
Intrum AB 3.50%, 07/15/2026(a)	EUR		100		90,231
Motion Finco SARL 7.00%, 05/15/2025(a)			132		147,237
					438,505
REITs – 1.8%
Aedas Homes Opco SLU 4.00%, 08/15/2026			111		107,703
Agps Bondco PLC 5.50%, 11/13/2026(a)(h)			100		42,461
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(a)	U.S.$		137		113,283
5.75%, 05/15/2026(a)			2		1,812
Iron Mountain, Inc. 4.50%, 02/15/2031(a)			198		172,391
4.875%, 09/15/2029(a)			69		63,066
5.25%, 07/15/2030(a)			25		23,046
MPT Operating Partnership LP/MPT Finance Corp. 3.50%, 03/15/2031			314		215,442
4.625%, 08/01/2029			21		15,901
5.00%, 10/15/2027			122		102,655
Office Properties Income Trust 3.45%, 10/15/2031			45		23,171
Service Properties Trust 7.50%, 09/15/2025			247		242,121
Vivion Investments SARL 3.00%, 08/08/2024(a)	EUR		100		80,419
					1,203,471
					3,730,186
Utility – 0.9%
Electric – 0.9%
Calpine Corp. 4.50%, 02/15/2028(a)	U.S.$		100		93,148
5.125%, 03/15/2028(a)			96		88,942
NRG Energy, Inc. 3.875%, 02/15/2032(a)			205		165,485
10.25%, 03/15/2028(a)(l)			47		46,351
Vistra Corp. 7.00%, 12/15/2026(a)(l)			28		25,157
8.00%, 10/15/2026(a)(l)			29		27,358

34    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Vistra Operations Co. LLC 4.375%, 05/01/2029(a)	U.S.$		103	$	92,175
5.50%, 09/01/2026(a)			78		76,561
					615,177
Natural Gas – 0.0%
AmeriGas Partners LP/AmeriGas Finance Corp. 5.75%, 05/20/2027			14		13,295
5.875%, 08/20/2026			11		10,617
					23,912
					639,089
Total Corporates - Non-Investment Grade (cost $50,985,202)					46,480,376
CORPORATES - INVESTMENT GRADE – 16.4%
Industrial – 8.4%
Basic – 0.5%
ArcelorMittal SA 7.00%, 10/15/2039(h)			25		26,405
Arconic Corp. 6.00%, 05/15/2025(a)			20		19,987
Celanese US Holdings LLC 6.05%, 03/15/2025			43		43,170
Freeport-McMoRan, Inc. 5.40%, 11/14/2034			99		97,444
Olin Corp. 5.625%, 08/01/2029			135		131,612
					318,618
Capital Goods – 0.1%
General Electric Co. Series D 8.196% (LIBOR 3 Month + 3.33%), 06/15/2023(k)(l)			19		19,127
Howmet Aerospace, Inc. 5.90%, 02/01/2027			4		4,094
Regal Rexnord Corp. 6.30%, 02/15/2030(a)			27		27,458
6.40%, 04/15/2033(a)			32		32,602
					83,281
Communications - Media – 0.6%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(a)			314		275,565

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Discovery Communications LLC 4.125%, 05/15/2029	U.S.$		12	$	11,105
Warnermedia Holdings, Inc. 3.755%, 03/15/2027(a)			47		44,319
4.279%, 03/15/2032(a)			65		57,774
					388,763
Communications - Telecommunications – 0.8%
Hughes Satellite Systems Corp. 5.25%, 08/01/2026			21		20,066
Sprint Capital Corp. 8.75%, 03/15/2032			357		436,681
Sprint LLC 7.875%, 09/15/2023			73		73,555
					530,302
Consumer Cyclical - Automotive – 1.1%
General Motors Financial Co., Inc. 5.85%, 04/06/2030			170		169,858
Harley-Davidson Financial Services, Inc. 6.50%, 03/10/2028(a)			275		278,382
Nissan Motor Acceptance Co. LLC 1.85%, 09/16/2026(a)			14		11,964
2.75%, 03/09/2028(a)			183		152,228
Nissan Motor Co., Ltd. 4.81%, 09/17/2030(a)			200		175,222
					787,654
Consumer Cyclical - Entertainment – 0.2%
Mattel, Inc. 3.375%, 04/01/2026(a)			78		73,764
5.875%, 12/15/2027(a)			66		66,080
					139,844
Consumer Cyclical - Other – 0.9%
International Game Technology PLC 4.125%, 04/15/2026(a)			200		192,680
Las Vegas Sands Corp. 3.50%, 08/18/2026			10		9,390
MDC Holdings, Inc. 6.00%, 01/15/2043			86		75,971
Resorts World Las Vegas LLC/RWLV Capital, Inc. 4.625%, 04/16/2029(a)			300		241,928
Toll Brothers Finance Corp. 4.875%, 03/15/2027			93		91,073
					611,042

36    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.3%
Macy’s Retail Holdings LLC 4.50%, 12/15/2034	U.S.$		225	$	160,893
5.875%, 03/15/2030(a)			45		39,926
6.125%, 03/15/2032(a)			37		32,386
					233,205
Consumer Non-Cyclical – 0.7%
BAT Capital Corp. 7.75%, 10/19/2032			70		77,542
BAT International Finance PLC 4.448%, 03/16/2028			116		111,310
Charles River Laboratories International, Inc. 3.75%, 03/15/2029(a)			42		37,019
4.25%, 05/01/2028(a)			20		18,282
Pilgrim’s Pride Corp. 3.50%, 03/01/2032			148		119,307
5.875%, 09/30/2027(a)			136		135,291
					498,751
Energy – 2.4%
Antero Resources Corp. 7.625%, 02/01/2029(a)			3		3,072
Apache Corp. 5.10%, 09/01/2040			326		279,239
Cenovus Energy, Inc. 5.40%, 06/15/2047			2		1,861
Continental Resources, Inc./OK 4.90%, 06/01/2044			16		12,441
5.75%, 01/15/2031(a)			28		27,288
EnLink Midstream Partners LP 5.60%, 04/01/2044			14		11,642
EQT Corp. 3.90%, 10/01/2027			118		111,597
Hess Corp. 7.30%, 08/15/2031			36		40,472
Marathon Oil Corp. 6.80%, 03/15/2032			34		36,176
Occidental Petroleum Corp. 5.50%, 12/01/2025			28		28,081
5.55%, 03/15/2026			272		274,255
6.125%, 01/01/2031			46		48,151
6.20%, 03/15/2040			69		70,968
8.50%, 07/15/2027			42		46,240
8.875%, 07/15/2030			42		49,329
Var Energi ASA 7.50%, 01/15/2028(a)			200		211,073
8.00%, 11/15/2032(a)			200		216,853

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Western Midstream Operating LP 3.95%, 06/01/2025	U.S.$		26	$	25,058
4.30%, 02/01/2030(h)			49		44,868
4.65%, 07/01/2026			41		39,917
4.75%, 08/15/2028			12		11,550
5.45%, 04/01/2044			26		22,611
5.50%, 02/01/2050(h)			84		71,410
					1,684,152
Technology – 0.2%
HP, Inc. 5.50%, 01/15/2033			91		90,279
MSCI, Inc. 4.00%, 11/15/2029(a)			25		22,535
Western Digital Corp. 2.85%, 02/01/2029			14		11,069
					123,883
Transportation - Airlines – 0.3%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a)			45		43,537
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. 6.50%, 06/20/2027(a)			199		198,838
					242,375
Transportation - Services – 0.3%
AerCap Global Aviation Trust 6.50%, 06/15/2045(a)			200		188,100
					5,829,970
Financial Institutions – 7.6%
Banking – 6.6%
AIB Group PLC 7.583%, 10/14/2026(a)			200		206,274
Ally Financial, Inc. 6.70%, 02/14/2033			66		59,417
8.00%, 11/01/2031			44		46,438
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			200		199,592
Barclays PLC 6.125%, 12/15/2025(l)			200		172,310
BNP Paribas SA 4.625%, 02/25/2031(a)(l)			200		142,685
Citigroup, Inc. Series W 4.00%, 12/10/2025(l)			18		15,710
Series Y 4.15%, 11/15/2026(l)			46		38,006

38    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Credit Suisse Group AG 6.373%, 07/15/2026(a)	U.S.$		250	$	243,774
Deutsche Bank AG/New York NY 6.72%, 01/18/2029			160		162,535
7.079%, 02/10/2034			200		186,393
Discover Financial Services 6.70%, 11/29/2032			58		61,359
First-Citizens Bank & Trust Co. 3.929%, 06/19/2024			37		36,482
Goldman Sachs Group, Inc. (The) 3.102%, 02/24/2033			15		12,914
Series P 7.733% (LIBOR 3 Month + 2.87%), 05/30/2023(k)(l)			40		38,748
HSBC Holdings PLC 4.762%, 03/29/2033			203		186,665
7.336%, 11/03/2026			200		209,741
8.113%, 11/03/2033			200		225,028
Intesa Sanpaolo SpA 7.00%, 11/21/2025(a)			350		357,476
JPMorgan Chase & Co. 4.912%, 07/25/2033			24		23,897
Lloyds Banking Group PLC 6.00%, 06/07/2032(l)	GBP		8		9,256
7.50%, 06/27/2024(l)	U.S.$		201		192,984
7.953%, 11/15/2033			200		222,978
NatWest Group PLC 7.472%, 11/10/2026			205		213,805
Santander Holdings USA, Inc. 6.499%, 03/09/2029			184		184,902
Santander UK Group Holdings PLC 6.833%, 11/21/2026			353		359,510
Standard Chartered PLC 7.776%, 11/16/2025(a)			273		280,840
State Street Corp. 4.821%, 01/26/2034			20		19,936
Truist Financial Corp. 1.95%, 06/05/2030			18		14,501
5.122%, 01/26/2034			85		82,405
UniCredit SpA 1.982%, 06/03/2027(a)			230		203,623
US Bancorp 4.839%, 02/01/2034			55		52,626
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(l)			111		96,678
					4,559,488

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Brokerage – 0.0%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(l)	U.S.$		20	$	19,101
LPL Holdings, Inc. 4.00%, 03/15/2029(a)			12		10,775
					29,876
Finance – 0.6%
Air Lease Corp. Series B 4.65%, 06/15/2026(l)			50		41,576
Aircastle Ltd. 2.85%, 01/26/2028(a)			2		1,740
5.25%, 08/11/2025(a)			148		145,130
Aviation Capital Group LLC 1.95%, 01/30/2026(a)			2		1,791
1.95%, 09/20/2026(a)			147		128,314
3.50%, 11/01/2027(a)			18		16,268
4.125%, 08/01/2025(a)			16		15,281
4.375%, 01/30/2024(a)			36		35,386
4.875%, 10/01/2025(a)			6		5,811
					391,297
Insurance – 0.2%
ACE Capital Trust II 9.70%, 04/01/2030			20		23,896
Liberty Mutual Group, Inc. 7.80%, 03/15/2037(a)			55		57,721
Prudential Financial, Inc. 5.20%, 03/15/2044			20		19,173
5.625%, 06/15/2043			49		48,914
					149,704
REITs – 0.2%
VICI Properties LP/VICI Note Co., Inc. 5.625%, 05/01/2024(a)			93		92,519
5.75%, 02/01/2027(a)			59		58,569
					151,088
					5,281,453
Utility – 0.4%
Electric – 0.4%
Enel Finance International NV 7.50%, 10/14/2032(a)			200		223,799
NRG Energy, Inc. 7.00%, 03/15/2033(a)			55		57,064
					280,863
Total Corporates - Investment Grade (cost $11,342,505)					11,392,286

40    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 4.1%
United States – 4.1%
U.S. Treasury Notes 2.625%, 05/31/2027	U.S.$		1,526	$	1,467,344
3.875%, 09/30/2029			1,380		1,405,977
Total Governments - Treasuries (cost $2,836,375)					2,873,321
EMERGING MARKETS - CORPORATE BONDS – 2.0%
Industrial – 2.0%
Basic – 0.1%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			91		84,630
Communications - Telecommunications – 0.3%
Sable International Finance Ltd. 5.75%, 09/07/2027(a)			180		169,562
Consumer Cyclical - Other – 1.0%
Allwyn Entertainment Financing UK PLC 6.779% (EURIBOR 3 Month + 4.12%), 02/15/2028(k)	EUR		113		123,761
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(a)	U.S.$		236		195,261
MGM China Holdings Ltd. 4.75%, 02/01/2027(a)			221		199,908
Studio City Co., Ltd. 7.00%, 02/15/2027(a)			200		189,600
					708,530
Consumer Cyclical - Retailers – 0.0%
K201640219 South Africa Ltd. Zero Coupon, 06/25/2023(b)(c)(e)	ZAR		1		– 0	–
K2016470219 South Africa Ltd. 3.00%, 12/31/2023(e)(g)	U.S.$		1		– 0	–
					– 0	–
Consumer Non-Cyclical – 0.3%
Teva Pharmaceutical Finance Netherlands III BV 7.875%, 09/15/2029			200		209,450
Tonon Luxembourg SA 6.50%, 10/31/2024(c)(e)(g)(j)			2		– 0	–
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(b)(c)(d)(e)(g)			96		10
					209,460

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Technology – 0.3%
CA Magnum Holdings 5.375%, 10/31/2026(a)	U.S.$		200		$	175,350
						1,347,532
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LP 6.125%, 03/01/2026(g)			28			26,843
Total Emerging Markets - Corporate Bonds (cost $1,548,684)						1,374,375
BANK LOANS – 1.5%
Industrial – 1.3%
Capital Goods – 0.2%
ACProducts Holdings, Inc. 9.409% (LIBOR 3 Month + 4.25%), 05/17/2028(m)			97			76,864
Apex Tool Group, LLC 10.240% (SOFR 1 Month + 5.25%), 02/08/2029(m)			45			39,044
						115,908
Communications - Media – 0.1%
Advantage Sales & Marketing, Inc. 9.719% (LIBOR 3 Month + 4.50%), 10/28/2027(m)			37			31,591
Clear Channel Outdoor Holdings, Inc. 8.597% (SOFR 1 Month + 3.50%), 08/21/2026(c)(m)			0	**		28
8.750% (SOFR 3 Month + 3.50%), 08/21/2026(m)			12			10,867
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 8.025% (LIBOR 1 Month + 3.00%), 05/01/2026(m)			18			15,280
						57,766
Communications - Telecommunications – 0.3%
Crown Subsea Communications Holding, Inc. 9.668% (SOFR 1 Month + 4.75%), 04/27/2027(b)(m)			56			55,535
DIRECTV Financing, LLC 10.025% (LIBOR 1 Month + 5.00%), 08/02/2027(m)			52			49,743

42    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Proofpoint, Inc. 11.275% (LIBOR 1 Month + 6.25%), 08/31/2029(m)	U.S.$		120	$	113,750
					219,028
Consumer Non-Cyclical – 0.2%
Gainwell Acquisition Corp. 8.998% (SOFR 3 Month + 4.00%), 10/01/2027(m)			39		37,610
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 9.023% (LIBOR 3 Month + 3.75%), 11/16/2025(m)			27		25,677
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 10.332% (SOFR 1 Month + 5.25%), 12/15/2027(m)			88		81,262
					144,549
Other Industrial – 0.1%
American Tire Distributors, Inc. 11.488% (SOFR 3 Month + 6.25%), 10/20/2028(m)			82		68,943
FCG Acquisitions, Inc. 11.909% (LIBOR 3 Month + 6.75%), 03/30/2029(m)			30		28,150
					97,093
Services – 0.0%
Verscend Holding Corp. 9.025% (LIBOR 1 Month + 4.00%), 08/27/2025(m)			26		25,670
Technology – 0.4%
Ascend Learning, LLC 10.832% (SOFR 1 Month + 5.75%), 12/10/2029(m)			50		43,313
Banff Guarantor, Inc. 10.525% (LIBOR 1 Month + 5.50%), 02/27/2026(m)			50		48,229
Boxer Parent Company, Inc. 8.775% (LIBOR 1 Month + 3.75%), 10/02/2025(m)			57		56,192
FINThrive Software Intermediate Holdings, Inc. 11.775% (LIBOR 1 Month + 6.75%), 12/17/2029(m)			50		35,063

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Loyalty Ventures, Inc. 11.500% (PRIME 3 Month + 3.50%), 11/03/2027(c)(j)(m)	U.S.$		122	$	11,498
Veritas US, Inc. 10.025% (LIBOR 1 Month + 5.00%), 09/01/2025(m)			82		63,193
					257,488
					917,502
Financial Institutions – 0.2%
Insurance – 0.2%
Asurion, LLC 9.332% (SOFR 1 Month + 4.25%), 08/19/2028(m)			160		148,480
Total Bank Loans (cost $1,272,337)					1,065,982
		Shares
COMMON STOCKS – 0.5%
Energy – 0.2%
Energy Equipment & Services – 0.0%
BIS Industries Holdings Ltd.(b)(c)(e)			21,027		– 0	–
CHC Group LLC(c)			468		1
Diamond Offshore Drilling, Inc.(c)			1,142		13,121
					13,122
Oil, Gas & Consumable Fuels – 0.2%
Berry Corp.			2,975		22,729
Civitas Resources, Inc.			523		36,113
Denbury, Inc.(c)			339		31,656
Edcon Ltd.(b)(c)(e)			8,218		– 0	–
Global Partners LP/MA			1,004		30,923
SandRidge Energy, Inc.(c)			5		71
					121,492
					134,614
Consumer Staples – 0.1%
Household Products – 0.1%
Southeastern Grocers, Inc.(b)(c)(e)			3,584		81,984
Consumer Discretionary – 0.1%
Broadline Retail – 0.1%
ATD New Holdings, Inc.(b)(c)			1,009		54,486
K201640219 South Africa Ltd. A Shares(b)(c)(e)			191,574		– 0	–
K201640219 South Africa Ltd. B Shares(b)(c)(e)			30,276		– 0	–
					54,486

44    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Diversified Consumer Services – 0.0%
Monitronics International, Inc.(c)		262	$	13
Hotels, Restaurants & Leisure – 0.0%
Caesars Entertainment, Inc.(c)		151		6,839
				61,338
Communication Services – 0.1%
Diversified Telecommunication Services – 0.1%
Intelsat Emergence SA(b)(c)		1,932		47,939
Intelsat Jackson Holdings SA(b)(c)(e)		402		– 0	–
				47,939
Media – 0.0%
DISH Network Corp. – Class A(c)		100		751
iHeartMedia, Inc. – Class A(c)		1,045		3,626
				4,377
				52,316
Industrials – 0.0%
Electrical Equipment – 0.0%
Exide Corp.(b)(c)(e)		7		2,800
Health Care – 0.0%
Pharmaceuticals – 0.0%
Mallinckrodt PLC(c)		91		531
Materials – 0.0%
Containers & Packaging – 0.0%
Westrock Co.		6		180
Total Common Stocks (cost $546,387)				333,763
PREFERRED STOCKS – 0.2%
Industrial – 0.1%
Consumer Cyclical - Automotive – 0.1%
Exide International Holdings LP 0.00%(b)(e)(g)		39		32,175
Energy – 0.0%
Gulfport Energy Corp. 10.00%(b)		4		24,000
Household Durables – 0.0%
Hovnanian Enterprises, Inc. 7.625%		490		8,678
				64,853

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

Company			Shares		U.S. $ Value
Industrials – 0.1%
Industrial Conglomerates – 0.1%
WESCO International, Inc. Series A 10.625%				1,425	$	38,760
Financials – 0.0%
Capital Markets – 0.0%
Ladenburg Thalmann Financial Services, Inc. Series A 8.00%				2,175		30,972
Total Preferred Stocks (cost $93,585)	��					134,585
RIGHTS – 0.0%
Vistra Energy Corp., expiring 12/31/2049(b) (cost $0)				3,442		4,045
			Principal Amount (000)
COMMERCIAL MORTGAGE-BACKED SECURITY – 0.0%
Non-Agency Fixed Rate CMBS – 0.0%
GS Mortgage Securities Trust Series 2014-GC18, Class D 5.223%, 01/10/2047(a) (cost $11,490)		U.S.$		12		3,818
			Shares
SHORT-TERM INVESTMENTS – 6.8%
Investment Companies – 6.8%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(n)(o)(p) (cost $4,697,099)				4,697,099		4,697,099
Total Investments – 98.6% (cost $73,333,664)						68,359,650
Other assets less liabilities – 1.4%						945,554
Net Assets – 100.0%					$	69,305,204

46    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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		EUR	6,020		USD	6,408		05/11/2023	$	(229,674	)
Brown Brothers Harriman & Co.		EUR	2		USD	2		05/11/2023		(83	)
Brown Brothers Harriman & Co.		USD	2,892		EUR	2,663		05/11/2023		43,802
Brown Brothers Harriman & Co.		GBP	200		USD	246		05/24/2023		(5,367	)
Brown Brothers Harriman & Co.		MXN	1,136		USD	60		05/25/2023		(2,988	)
Brown Brothers Harriman & Co.		USD	86		MXN	1,573		05/25/2023		1,082
JPMorgan Chase Bank, NA		USD	650		EUR	609		05/11/2023		21,857
Royal Bank of Scotland PLC		USD	570		EUR	536		05/11/2023		20,468
Standard Chartered Bank		USD	622		EUR	581		05/11/2023		18,912
									$	(131,991	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		5.00	%		Quarterly		4.65	%		USD    1,860	$	36,646	$	15,050	$	21,596

* Termination date

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Buy Contracts
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		(3.00	)%		Monthly		7.50	%	USD	110	$	22,678		$	10,109		$	12,569
Sale Contracts
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	43		(8,866	)		(2,639	)		(6,227	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	144		(29,789	)		(9,104	)		(20,685	)
											$	(15,977	)	$	(1,634	)	$	(14,343	)

* Termination date

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

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 Market AT1		1 Day SOFR		Maturity		USD  501		06/20/2023	$	(82,440	)
Pay Total Return on Reference Obligation
Goldman Sachs International
Markit iBoxx USD Contingent Convertible Liquid Developed Market AT1		1 Day SOFR		Maturity		USD  592		06/20/2023		(8,042	)
									$	(90,482	)

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $45,409,630 or 65.5% of net assets.

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

(c) Non-income producing security.

(d) Defaulted matured security.

(e) Fair valued by the Adviser.

(f) 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 April 30, 2023.

(g) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.09% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Exide International Holdings LP		11/05/2020	$	29,328		$	32,175			0.05	%
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024		10/29/2020		– 0	–		– 0	–		0.00	%
Exide Technologies (First Lien) 11.00%, 10/31/2024		10/29/2020		– 0	–		– 0	–		0.00	%
Intelsat Jackson Holdings SA 8.50%, 10/15/2024		09/05/2018 - 04/17/2019		– 0	–		– 0	–		0.00	%
K2016470219 South Africa Ltd. 3.00%, 12/31/2023		03/13/2015 - 06/30/2021		51			– 0	–		0.00	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		36,767			– 0	–		0.00	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018 - 06/04/2019		28,019			26,843			0.04	%
Tonon Luxembourg SA 6.50%, 10/31/2024		05/03/2019 - 10/31/2020		4,111			– 0	–		0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		02/13/2013		96,161			10			0.00	%

48    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(h) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

(i) Convertible security.

(j) Defaulted.

(k) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

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

(m) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the SOFR/PRIME or the LIBOR/SOFR/PRIME floor rate plus spread at April 30, 2023.

(n) Affiliated investments.

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

(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 AB at (800) 227-4618.

Currency Abbreviations:

EUR – Euro

GBP – Great British Pound

MXN – Mexican Peso

USD – United States Dollar

ZAR – South African Rand

Glossary:

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

EURIBOR – Euro Interbank Offered Rate

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    49

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $68,636,565)	$	63,662,551
Affiliated issuers (cost $4,697,099)		4,697,099
Cash		8,662
Cash collateral due from broker		185,361
Foreign currencies, at value (cost $1,863)		1,859
Unaffiliated interest receivable		1,024,292
Receivable for investment securities sold		212,843
Unrealized appreciation on forward currency exchange contracts		106,121
Receivable for capital stock sold		70,798
Market value of credit default swaps (net premiums paid $10,109)		22,678
Affiliated dividends receivable		9,979
Receivable for variation margin on centrally cleared swaps		4,720
Receivable from Adviser		3,656
Total assets		70,010,619
Liabilities
Unrealized depreciation on forward currency exchange contracts		238,112
Unrealized depreciation on total return swaps		90,482
Payable for capital stock redeemed		88,754
Dividends payable		82,671
Audit and tax fee payable		65,450
Custody and accounting fees payable		40,974
Market value of credit default swaps (net premiums received $11,743)		38,655
Payable for investment securities purchased		19,439
Payable for capital gains taxes		4,029
Transfer Agent fee payable		3,441
Accrued expenses		33,408
Total liabilities		705,415
Net Assets	$	69,305,204
Composition of Net Assets
Capital stock, at par	$	8,296
Additional paid-in capital		88,525,796
Accumulated loss		(19,228,888	)
	$	69,305,204

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

Class	Net Assets		Shares Outstanding		Net Asset Value
Advisor	$	69,305,204		8,295,860	$	8.35

See notes to financial statements.

50    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest (net of foreign taxes withheld of $7,493)	$	2,195,849
Dividends
Affiliated issuers		78,754
Unaffiliated issuers		12,003		$	2,286,606
Expenses
Advisory fee (see Note B)		150,251
Transfer agency—Class A		560
Transfer agency—Advisor Class		36,694
Transfer agency—Class Z		5
Distribution fee—Class A		618
Audit and tax		69,347
Custody and accounting		57,167
Administrative		43,420
Printing		24,914
Registration fees		23,510
Legal		16,929
Directors’ fees		8,523
Miscellaneous		5,009
Total expenses		436,947
Less: expenses waived and reimbursed by the Adviser (see Note B)		(236,755	)
Net expenses					200,192
Net investment income					2,086,414
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized loss on:
Investment transactions					(1,826,455	)
Forward currency exchange contracts					(642,904	)
Futures					(155,898	)
Swaps					(120,919	)
Foreign currency transactions					(68,905	)
Net change in unrealized appreciation (depreciation) on:
Investments					4,463,804
Forward currency exchange contracts					31,759
Futures					242,839
Swaps					6,268
Foreign currency denominated assets and liabilities					3,149
Net gain on investment and foreign currency transactions					1,932,738
Net Increase in Net Assets from Operations				$	4,019,152

See notes to financial statements.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    51

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,086,414		$	3,122,505
Net realized loss on investment and foreign currency transactions		(2,815,081	)		(624,732	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities		4,747,819			(10,903,207	)
Net increase (decrease) in net assets from operations		4,019,152			(8,405,434	)
Distributions to Shareholders
Class A		(40,418	)		(48,807	)
Advisor Class		(2,846,357	)		(3,658,061	)
Class Z		(2,010	)		(4,016	)
Capital Stock Transactions
Net increase (decrease)		(122,993	)		16,588,915
Total increase		1,007,374			4,472,597
Net Assets
Beginning of period		68,297,830			63,825,233
End of period	$	69,305,204		$	68,297,830

See notes to financial statements.

52    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 High Yield Portfolio (the “Fund”), a diversified portfolio. At a meeting held on January 31, 2023 to February 1, 2023, the Fund’s Board of Directors (the “Board”) approved the conversion of Class A and Class Z shares of the Fund to Advisor Class shares of the Fund on a relative net assets basis. The conversion was effective on April 14, 2023. 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 T, Class 1 and Class 2 shares have not been issued, and no shares of Class A, Class C, Class R, Class K, Class I or Class Z were outstanding as of April 30, 2023. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Company’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Company’s portfolio investments, subject to the Board’s oversight.

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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. 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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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., 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

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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.

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.

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, 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

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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 April 30, 2023:

Investments in Securities	Level 1			Level 2			Level 3			Total
Assets:
Corporates - Non-Investment Grade	$	– 0	–	$	46,477,044		$	3,332	#	$	46,480,376
Corporates - Investment Grade		– 0	–	��	11,392,286			– 0	–		11,392,286
Government - Treasuries		– 0	–		2,873,321			– 0	–		2,873,321
Emerging Markets - Corporate Bonds		– 0	–		1,374,365	#		10	#		1,374,375
Bank Loans		– 0	–		1,010,447			55,535			1,065,982
Common Stocks		146,554			– 0	–		187,209	#		333,763
Preferred Stocks		47,438			30,972			56,175			134,585
Rights		– 0	–		– 0	–		4,045			4,045
Commercial Mortgage-Backed Securities		– 0	–		3,818			– 0	–		3,818
Short-Term Investments:
Investment Companies		4,697,099			– 0	–		– 0	–		4,697,099
Total Investments in Securities		4,891,091			63,162,253			306,306			68,359,650
Other Financial Instruments*:
Assets
Forward Currency Exchange Contracts		– 0	–		106,121			– 0	–		106,121
Centrally Cleared Credit Default Swaps		– 0	–		36,646			– 0	–		36,646	†
Credit Default Swaps		– 0	–		22,678			– 0	–		22,678
Liabilities
Forward Currency Exchange Contracts		– 0	–		(238,112	)		– 0	–		(238,112	)
Credit Default Swaps		– 0	–		(38,655	)		– 0	–		(38,655	)
Total Return Swaps		– 0	–		(90,482	)		– 0	–		(90,482	)
Total	$	4,891,091		$	62,960,449		$	306,306		$	68,157,846

# The Fund held securities with zero market value at period end.

* 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, written options and written swaptions which are valued at market value.

† 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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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 the 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 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. Non-cash dividends, if any, are recorded on the

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ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled 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 portfolio 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, .425% 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 expenses (other than 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 Cap”) to .85%, .60% and .60% of daily average net assets for the Class A, Advisor Class and Class Z, respectively. For the six months ended April 30, 2023, such reimbursements/waivers amounted to $191,378. The Expense Cap will remain in effect until January 31, 2024 and then may be continued thereafter from year to year by the Adviser.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund

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by the Adviser. For the six months ended April 30, 2023, the Adviser voluntarily agreed to waive such fees in the amount of $43,420.

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 $9,321 for the six months ended April 30, 2023.

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $1,957.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	5,336	$	29,014	$	29,653	$	4,697	$	79

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 .25% of the Fund’s average daily net assets attributable to Class A shares. Effective February 1, 2023, the Distributor voluntarily suspended such distribution and servicing fees. There are no distribution and servicing fees on Advisor Class 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

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for distribution assistance and promotional activities. 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 six months ended April 30, 2023, were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	20,373,932	$	24,535,733
U.S. government securities		3,560,970		734,988

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	1,136,924
Gross unrealized depreciation		(6,326,158	)
Net unrealized depreciation	$	(5,189,234	)

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:

• 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 for non-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.

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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 six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• 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 for non-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 six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-hedging purposes as a means of gaining market exposures including by 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 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 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 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 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 the 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

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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 six months ended April 30, 2023, the Fund held interest rate swaps for hedging and non-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 obligation with the same counterparty.

Credit default swaps may involve greater risks than if the 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.

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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 six months ended April 30, 2023, the Fund held credit default swaps for hedging and non-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 six months ended April 30, 2023, the Fund held total return swaps for hedging and 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

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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 tables below for additional details.

During the six months ended April 30, 2023, 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
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts	$	106,121		Unrealized depreciation on forward currency exchange contracts	$	238,112
Credit contracts	Market value of credit default swaps		22,678		Market value of credit default swaps		38,655
Credit contracts	Receivable for variation margin on centrally cleared swaps		21,596	*
Credit contracts					Unrealized depreciation on total return swaps		90,482
Total		$	150,395			$	367,249

* 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) on swaps	$	39,926		$	(44,167	)
Interest rate contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation (depreciation) on futures		(155,898	)		242,839

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NOTES TO FINANCIAL STATEMENTS (continued)

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 currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts	$	(642,904	)	$	31,759
Credit contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation (depreciation) on swaps		(160,845	)		50,435
Total		$	(919,721	)	$	280,866

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	2,590,000	(a)
Average notional amount of sale contracts	$	1,406,667	(b)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	13,207,000	(c)
Credit Default Swaps:
Average notional amount of buy contracts	$	246,870	(c)
Average notional amount of sale contracts	$	451,701
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	2,093,063
Average principal amount of sale contracts	$	7,189,959
Futures:
Average notional amount of buy contracts	$	3,660,169	(a)
Average notional amount of sale contracts	$	143,709	(c)
Total Return Swaps:
Average notional amount	$	662,850

a) Positions were open for two months during the reporting period.

b) Positions were open for three months during the reporting period.

c) Positions were open for four months during the reporting 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 April 30, 2023. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

Brown Brothers Harriman & Co.

$

44,884

$

(8,438

)

$

– 0

–

$

– 0

–

$

36,446

Goldman Sachs International

22,678

(22,678

)

– 0

–

– 0

–

– 0

–

JPMorgan Chase Bank, NA.

21,857

– 0

–

– 0

–

– 0

–

21,857

Royal Bank of Scotland PLC

20,468

– 0

–

– 0

–

– 0

–

20,468

Standard Chartered Bank

18,912

– 0

–

– 0

–

– 0

–

18,912

Total

$

128,799

$

(31,116

)

$

– 0

–

$

– 0

–

$

97,683

^

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

$

229,674

$

– 0

–

$

– 0

–

$

– 0

–

$

229,674

Brown Brothers Harriman & Co.

8,438

(8,438

)

– 0

–

– 0

–

– 0

–

Deutsche Bank AG

38,655

– 0

–

– 0

–

– 0

–

38,655

Goldman Sachs International

90,482

(22,678

)

– 0

–

– 0

–

67,804

Total

$

367,249

$

(31,116

)

$

– 0

–

$

– 0

–

$

336,133

^

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

^ 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 in non-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

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Capital Stock

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

	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A*
Shares sold		53,995			110,732		$	451,271		$	1,074,065
Shares issued in reinvestment of dividends		1,559			1,981			13,026			17,332
Shares converted to Advisor Class		(142,504	)		– 0	–		(1,192,228	)		– 0	–
Shares redeemed		(34,844	)		(6,734	)		(287,168	)		(59,373	)
Net increase (decrease)		(121,794	)		105,979		$	(1,015,099	)	$	1,032,024
Advisor Class
Shares sold		2,485,047			5,003,503		$	20,721,297		$	45,166,837
Shares issued in reinvestment of dividends		192,964			218,017			1,612,336			1,949,901
Shares converted from:
Class A		142,565			– 0	–		1,192,228			– 0	–
Class Z		5,878			– 0	–		49,157			– 0	–
Shares redeemed		(2,720,066	)		(3,405,602	)		(22,633,730	)		(31,564,032	)
Net increase		106,388			1,815,918		$	941,288		$	15,552,706

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class Z*
Shares sold		– 0	–		2,395		$	– 0	–	$	24,001
Shares issued in reinvestment of dividends		0	(a)		90			1			834
Shares converted to Advisor Class		(5,877	)		– 0	–		(49,157	)		– 0	–
Shares redeemed		(3	)		(2,485	)		(26	)		(20,650	)
Net increase (decrease)		(5,880	)		– 0	–	$	(49,182	)	$	4,185

a) Amount is less than 0.50 shares.

* Converted to Advisor Class on April 14, 2023.

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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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 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 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.

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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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.

Foreign (Non-U.S.) Risk—Investments in securities of non-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 due to adverse market, economic, political, regulatory or other factors.

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Emerging-Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are 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 in fixed-income securities denominated in foreign currencies or reduce the Fund’s 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. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations

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NOTES TO FINANCIAL STATEMENTS (continued)

implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE H

Distributions to Shareholders

The tax character of distributions paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year.

The tax character of distributions paid during the fiscal year ended October 31, 2022, period ended October 31, 2021 and year ended December 31, 2020 were as follows:

	November 1, 2021 to October 31, 2022		January 1, 2021 to October 31, 2021		January 1, 2020 to December 31, 2020
Distributions paid from:
Ordinary income	$	3,710,884	$	2,144,305	$	2,379,537
Total taxable distributions paid	$	3,710,884	$	2,144,305	$	2,379,537

As of December 31, 2021, the Fund’s most recent tax year-end, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	42,753
Accumulated capital and other losses		(9,133,476	)(a)
Unrealized appreciation (depreciation)		601,097	(b)
Total accumulated earnings (deficit)	$	(8,489,626	)(c)

(a) As of December 31, 2021, the Fund had a net capital loss carryforward of $9,133,476. During the tax year, the Fund utilized $856,675 of capital loss carry forwards to offset current year net realized gains.

(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, return of capital distributions received from underlying securities, the tax treatment of callable bonds, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

(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.

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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 December 31, 2021, the Fund’s most recent tax year end, the Fund had a net short-term capital loss carryforward of $4,806,884 and a net long-term capital loss carryforward of $4,326,592, which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848)—Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

NOTE J

Subsequent Events

At meetings held on January 31—February 1, 2023, the Board approved the reorganization of the Fund into a newly-created exchange-traded fund (“ETF”) (the “Conversion”), to be managed by the Adviser. Pursuant to an Agreement and Plan of Acquisition and Termination (the “Plan”), the Fund was converted into an ETF (the “Acquiring Portfolio”), a newly-created series of AB Active ETFs, Inc., with the same investment objective, and the same investment policies and investment strategies as the Fund on the closing date of the Conversion, May 12, 2023. In connection with the Conversion, the assets and liabilities of the Fund were transferred to the Acquiring Portfolio, and stockholders of the Fund received shares of the Acquiring Portfolio equal in aggregate net asset value (“NAV”) to the NAV of their shares of the Fund (less cash corresponding to any fractional share amount). The Conversion did not require stockholder approval.

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 other 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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			January 1, 2021 to October 31, 2021(a)			Year Ended December 31,						November 1, 2018 to December 31, 2018(b)			Year Ended October 31, 2018
										2020			2019
Net asset value, beginning of period		$  8.21			$  9.98			$  9.86			$  9.63			$  8.90			$  9.36			$  9.71
Income From Investment Operations
Net investment income(c)(d)		.26			.45			.38			.50			.52			.09			.50
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.24			(1.68	)		.16			.30			.77			(.41	)		(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		.00	(e)
Net increase (decrease) in net asset value from operations		.50			(1.23	)		.54			.80			1.29			(.32	)		.13
Less: Dividends
Dividends from net investment income		(.36	)		(.54	)		(.42	)		(.57	)		(.56	)		(.14	)		(.48	)
Net asset value, end of period		$  8.35			$  8.21			$  9.98			$  9.86			$  9.63			$  8.90			$  9.36
Total Return
Total investment return based on net asset value(f)*		6.20	%		(12.68	)%		5.56	%		8.95	%+		14.77	%+		(3.45	)%		1.32	%**
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$69,305			$67,249			$63,608			$38,751			$40,218			$30,509			$33,990
Ratio to average net assets of:
Expenses, net of waivers/ reimbursements(g)(h)†		.60	%^		.60	%		.51	%^		.70	%		.29	%++		.29	%^++		.33	%
Expenses, before waivers/ reimbursements(g)(h)†		1.31	%^		1.35	%		1.74	%^		2.17	%		1.84	%++		3.25	%^++		2.56	%
Net investment income(d)		6.24	%^		5.00	%		4.60	%^		5.41	%		5.45	%		5.73	%^		5.20	%
Portfolio turnover rate+++		39	%		48	%		36	%		75	%		40	%		5	%		75	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.01	%^		.00	%		.00	%^		.00	%		.01	%		.01	%^		.01	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

(a) The Fund changed its fiscal year end from December 31 to October 31.

(b) The Fund changed its fiscal year end from October 31 to December 31.

(c) Based on average shares outstanding.

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

(e) Amount is less than $.005.

(f) 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 investment 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 for a period of less than one year is not annualized.

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

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			January 1, 2021 to October 31, 2021(a)			Year ended December 31,						November 1, 2018 to December 31, 2018(b)			Year Ended October 31, 2018
										2020			2019
Advisor Class
Net of waivers/ reimbursements		.60	%^		.60	%		.51	%^		.70	%		.29	%		.29	%^		.31	%
Before waivers/ reimbursements		1.31	%^		1.35	%		1.74	%^		2.17	%		1.84	%		3.25	%^		2.54	%

(h) 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 six months ended April 30, 2023, the year ended December 31, 2019, period ended December 31, 2018 and year ended October 31, 2018, such waivers amounted to .01% (annualized), .01%, .01% (annualized) and .01%, respectively.

^ Annualized.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended December 31, 2019 and October 31, 2018 by .01%, and .03%, respectively.

** Includes the impact of reimbursements from the Adviser which enhanced the Fund’s performance for the year ended October 31, 2018 by .01%.

+ 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.

++ The advisory fee reflected in the Fund’s expense ratio may be higher or lower than the Base Fee plus Performance Adjustment due to the different time periods over which the fee is calculated (i.e., the financial reporting vs. the Performance Period).

+++ Portfolio turnover is calculated for the Fund as a whole for the full fiscal year or period, as applicable, and is not annualized.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry L. Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President Robert Schwartz⁽²⁾, Vice President William Smith⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nasvhille, TN 37203   Transfer Agent AllianceBernstein
Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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 High Yield Investment Team. Messrs. Distenfeld, Schwartz and Smith are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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Operation and Effectiveness of the Funds’ Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors/Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds’ LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 High Yield Portfolio (formerly AB FlexFee^TM High Yield Portfolio) (the “Fund”) at a meeting held in-person on November 1-3, 2022 (the “Meeting”).¹

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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

1 Subsequent to the semi-annual reporting period ended April 30, 2023 covered by this report, the Fund was reorganized into an exchange-traded fund and is now known as AB High Yield ETF, a series of AB Active ETFs, Inc.

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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 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 directors noted that the Adviser had not requested any reimbursements from the Fund in recent years. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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.

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors 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 for the 1-year period ended July 31, 2022, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index for the 1-, 3-, 5- and 10-year periods ended July 31, 2022 and 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 noted that, from February 26, 2018 through April 29, 2021, the Fund’s Advisory Agreement had provided for a performance-based advisory fee. 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 directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President 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

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charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of 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 Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-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 and sub-advised fund 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.

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 the 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 prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the

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AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. 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

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    87

NOTES

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AB HIGH YIELD PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

HY-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB INCOME FUND

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB INCOME FUND    ^|    1

SEMI-ANNUAL REPORT

June 7, 2023

This report provides management’s discussion of fund performance for the AB Income Fund for the semi-annual reporting period ended April 30, 2023.

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

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB INCOME FUND
Class A Shares		8.21%		-2.78%
Class C Shares		7.63%		-3.65%
Advisor Class Shares1		8.17%		-2.69%
Class Z Shares1		8.17%		-2.67%
Bloomberg US Aggregate Bond Index		6.91%		-0.43%

1 Please note that these share classes are 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 with its benchmark, the Bloomberg US Aggregate Bond Index, for the six- and 12-month periods ended April 30, 2023.

During the six-month period, all share classes outperformed the benchmark, before sales charges. Sector allocation was the primary contributor, relative to the benchmark, mostly from off-benchmark exposure to collateralized loan obligations, agency risk-sharing securities and emerging-market corporate bonds that added more than losses from an overweight to US Treasuries and an underweight to investment-grade corporate bonds. Yield-curve positioning also contributed, primarily due to an overweight on the five-year part of the curve that added more than a loss from being underweight to the 20-year part of the curve. Security selection detracted, mainly from selections among high-yield corporate bonds and commercial mortgage-backed securities (“CMBS”) that detracted more than gains within investment-grade corporates, US agency mortgages and emerging-market sovereign bonds. Country allocation and currency decisions did not meaningfully impact performance during the period.

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In the 12-month period, all share classes underperformed the benchmark, before sales charges. Yield-curve positioning was the largest detractor, as overweights on the two- to 10-year part of the curve and an underweight on the 20-year part of the curve detracted more than gains from an underweight on the 30-year part of the curve and an overweight on the six-month part of the curve. Security selection detracted, as losses from off-benchmark corporate bonds and emerging-market sovereign bonds were partially offset by a gain within CMBS. Sector allocation also had a negative impact on performance, primarily from an underweight to investment-grade corporate bonds and off-benchmark exposure to emerging-market corporate bonds, bank loans and collateralized loan obligations that were partially offset by off-benchmark exposure to agency risk-sharing securities and an underweight to US agency mortgages. Country allocation was a minor contributor, from exposure to Canada that exceeded a loss from exposure to Australia. Currency decisions did not materially impact performance results.

During both periods, the Fund used derivatives in the form of treasury futures and interest rate swaps to manage and hedge duration risk and/or to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were used to effectively gain exposure to specific sectors.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. Developed-market government bonds rose the most in the US, Australia and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

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

abfunds.com AB INCOME FUND    ^|    3

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, subject to the limits of applicable law. The Fund may, for example, use credit default, interest rate and total return 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.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 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 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. 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 its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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 (commonly known 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 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

abfunds.com AB INCOME FUND    ^|    5

DISCLOSURES AND RISKS (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 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.

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 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 are 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 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.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or 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. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

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DISCLOSURES AND RISKS (continued)

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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

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DISCLOSURES AND RISKS (continued)

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 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.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						5.74%
1 Year		-2.78%		-6.90%
5 Years		0.55%		-0.31%
Since Inception2		1.32%		0.71%
CLASS C SHARES						5.25%
1 Year		-3.65%		-4.58%
5 Years		-0.23%		-0.23%
Since Inception2,3		0.56%		0.56%
ADVISOR CLASS SHARES4,5						6.27%
1 Year		-2.69%		-2.69%
5 Years		0.80%		0.80%
10 Years		1.74%		1.74%
CLASS Z SHARES5						6.32%
1 Year		-2.67%		-2.67%
Since Inception2		-1.76%		-1.76%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.08%, 1.82%, 0.82% and 0.78% for Class A, Class C, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limited the Fund’s total 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%, 0.52% and 0.52% for Class A, Class C, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2024. 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 April 30, 2023.

2 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

3 Assumes conversion of Class C shares into Class A shares after eight years.

4 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.

5 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 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)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-11.48%
5 Years		-0.60%
Since Inception1		0.58%
CLASS C SHARES
1 Year		-9.20%
5 Years		-0.50%
Since Inception1,2		0.44%
ADVISOR CLASS SHARES3,4
1 Year		-7.39%
5 Years		0.50%
10 Years		1.88%
CLASS Z SHARES4
1 Year		-7.37%
Since Inception1		-2.08%

1 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

2 Assumes conversion of Class C shares into Class A shares after eight years.

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.

4 Please note that these share classes are 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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,082.10	$	8.47		1.64	%
Hypothetical**	$	1,000	$	1,016.66	$	8.20		1.64	%
Class C
Actual	$	1,000	$	1,076.30	$	12.30		2.39	%
Hypothetical**	$	1,000	$	1,012.94	$	11.93		2.39	%
Advisor Class
Actual	$	1,000	$	1,081.70	$	7.12		1.38	%
Hypothetical**	$	1,000	$	1,017.95	$	6.90		1.38	%
Class Z
Actual	$	1,000	$	1,081.70	$	7.12		1.38	%
Hypothetical**	$	1,000	$	1,017.95	$	6.90		1.38	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB INCOME FUND    ^|    11

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $2,647.2

1 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 0.3% or less in the following types: Common Stocks, Governments–Sovereign Bonds, Local Governments–US Municipal Bonds, Preferred Stocks and Warrants.

12    ^|    AB INCOME FUND abfunds.com

PORTFOLIO SUMMARY (continued)

April 30, 2023 (unaudited)

1 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 0.4% or less in the following: Angola, Australia, Belgium, Cayman Islands, Chile, Czech Republic, Denmark, Dominican Republic, Ecuador, El Salvador, Finland, Ghana, Guatemala, Hong Kong, Hungary, Indonesia, Israel, Ivory Coast, Jamaica, Kazakhstan, Kenya, Kuwait, Lebanon, Luxembourg, Macau, Morocco, Netherlands, Nigeria, Norway, Pakistan, Panama, Peru, Senegal, South Africa, South Korea, Spain, Sweden, Switzerland, Turkey and Ukraine.

abfunds.com AB INCOME FUND    ^|    13

PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 68.9%
Canada – 5.9%
Canadian Government Bond 1.00%, 09/01/2026	CAD		225,418	$	154,955,942
United States – 63.0%
U.S. Treasury Bonds 3.00%, 08/15/2052(a)(b)	U.S.$		49,257		43,207,186
U.S. Treasury Notes 2.875%, 05/15/2032(a)			335,429		320,387,297
3.875%, 12/31/2027			2,815		2,849,884
4.125%, 01/31/2025			6,700		6,685,344
4.125%, 09/30/2027(b)(c)(d)			351,519		358,878,725
4.125%, 10/31/2027(a)			471,602		481,770,816
4.375%, 10/31/2024(b)			455,821		455,393,767
					1,669,173,019
Total Governments - Treasuries (cost $1,812,444,222)					1,824,128,961
MORTGAGE PASS-THROUGHS – 20.2%
Agency Fixed Rate 30-Year – 20.2%
Federal Home Loan Mortgage Corp. Series 2020 2.50%, 08/01/2050			48,284		42,368,634
2.50%, 09/01/2050			36,889		32,357,993
4.50%, 02/01/2050			2,428		2,421,968
Federal National Mortgage Association Series 1998 8.00%, 06/01/2028			1		956
Series 1999 7.50%, 11/01/2029			5		4,882
Series 2020 4.50%, 02/01/2050			5,994		5,964,963
Government National Mortgage Association Series 2023 4.00%, 05/01/2053, TBA			13,732		13,200,909
4.50%, 05/01/2053, TBA			70,886		69,491,066
Uniform Mortgage-Backed Security Series 2023 3.00%, 05/01/2053, TBA			61,874		55,602,135
3.50%, 05/01/2053, TBA			82,946		77,127,168
4.00%, 05/01/2053, TBA			44,832		42,856,424
4.50%, 05/01/2053, TBA			133,971		130,904,545
5.00%, 05/01/2053, TBA			62,077		61,723,203
Total Mortgage Pass-Throughs (cost $552,878,692)					534,024,846

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 18.6%
Financial Institutions – 12.2%
Banking – 8.9%
AIB Group PLC 4.263%, 04/10/2025(e)	U.S.$		5,750	$	5,643,395
7.583%, 10/14/2026(e)			8,459		8,733,748
Ally Financial, Inc. 8.00%, 11/01/2031			75		79,155
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(e)			3,765		3,453,917
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(e)			3,998		3,975,011
Banco Santander SA 3.225%, 11/22/2032			200		160,272
4.175%, 03/24/2028			2,800		2,659,888
Bank of America Corp. 6.204%, 11/10/2028			5,206		5,429,962
Bank of Ireland Group PLC 6.253%, 09/16/2026(e)			2,167		2,162,904
Barclays PLC 6.125%, 12/15/2025(f)			7,868		6,776,944
7.125%, 06/15/2025(f)	GBP		333		372,258
7.385%, 11/02/2028	U.S.$		3,394		3,624,860
BBVA Bancomer SA/Texas 5.875%, 09/13/2034(e)			5,343		4,799,684
BNP Paribas SA 4.625%, 02/25/2031(e)(f)			2,545		1,816,367
BPCE SA 5.975%, 01/18/2027(e)			5,330		5,373,813
Capital One Financial Corp. 5.468%, 02/01/2029			2,537		2,495,292
Citigroup, Inc. 3.875%, 02/18/2026(f)			3,286		2,801,216
9.341% (LIBOR 3 Month + 4.07%), 07/30/2023(f)(g)			846		842,557
Series U 5.00%, 09/12/2024(f)			2,540		2,375,154
Series V 4.70%, 01/30/2025(f)			1,811		1,593,644
Series W 4.00%, 12/10/2025(f)			2,865		2,500,457
Credit Agricole SA 8.125%, 12/23/2025(e)(f)			4,972		4,928,246
Credit Suisse Group AG 6.373%, 07/15/2026(e)			1,114		1,086,629

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Danske Bank A/S 3.244%, 12/20/2025(e)	U.S.$		200	$	190,820
4.298%, 04/01/2028(e)			4,773		4,529,052
6.466%, 01/09/2026(e)			3,667		3,679,504
Deutsche Bank AG/New York NY 1.447%, 04/01/2025			150		141,408
6.119%, 07/14/2026			4,938		4,883,188
6.72%, 01/18/2029			2,408		2,448,888
7.079%, 02/10/2034			2,615		2,436,631
Discover Financial Services 6.70%, 11/29/2032			2,653		2,806,635
First-Citizens Bank & Trust Co. 3.929%, 06/19/2024			5		4,930
Goldman Sachs Group, Inc. (The) 3.102%, 02/24/2033			293		252,258
HSBC Holdings PLC 4.60%, 12/17/2030(f)			1,030		779,638
4.762%, 03/29/2033			3,659		3,374,220
6.375%, 03/30/2025(f)			468		443,196
ING Groep NV 6.50%, 04/16/2025(f)			3,085		2,859,024
6.75%, 04/16/2024(e)(f)			3,383		3,180,088
Intesa Sanpaolo SpA 5.017%, 06/26/2024(e)			999		974,285
7.00%, 11/21/2025(e)			1,036		1,058,108
JPMorgan Chase & Co. 4.912%, 07/25/2033			309		307,677
KBC Group NV 5.796%, 01/19/2029(e)			1,193		1,209,440
Lloyds Banking Group PLC 5.871%, 03/06/2029			7,167		7,330,264
Mitsubishi UFJ Financial Group, Inc. 5.475%, 02/22/2031			963		977,628
Mizuho Financial Group, Inc. 5.667%, 05/27/2029			6,612		6,735,711
5.739%, 05/27/2031			6,612		6,771,085
Morgan Stanley 4.21%, 04/20/2028			3,639		3,528,011
6.296%, 10/18/2028			10,098		10,610,171
Nationwide Building Society 4.302%, 03/08/2029(e)			2,000		1,893,260
NatWest Group PLC 4.269%, 03/22/2025			3,161		3,116,145
7.472%, 11/10/2026			2,381		2,487,288
Nordea Bank Abp 6.625%, 03/26/2026(e)(f)			8,725		8,200,802

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
PNC Financial Services Group, Inc. (The) Series O 8.977% (LIBOR 3 Month + 3.68%), 08/01/2023(f)(g)	U.S.$		1,247	$	1,243,558
Santander Holdings USA, Inc. 6.499%, 03/09/2029			6,998		7,032,290
Santander UK Group Holdings PLC 6.833%, 11/21/2026			10,499		10,685,462
Societe Generale SA 6.447%, 01/12/2027(e)			10,270		10,365,716
Standard Chartered PLC 6.17%, 01/09/2027(e)			2,054		2,083,660
6.783% (LIBOR 3 Month + 1.51%), 01/30/2027(e)(f)(g)			7,500		6,600,000
State Street Corp. 4.821%, 01/26/2034			186		185,405
Sumitomo Mitsui Financial Group, Inc. 5.71%, 01/13/2030			7,605		7,874,521
Swedbank AB Series NC5 5.625%, 09/17/2024(e)(f)			8,800		8,296,992
Truist Financial Corp. 1.95%, 06/05/2030			172		138,565
5.122%, 01/26/2034			840		814,355
Series Q 5.10%, 03/01/2030(f)			12,605		11,146,223
UBS Group AG 4.375%, 02/10/2031(e)(f)			4,958		3,430,143
7.00%, 02/19/2025(e)(f)			211		200,066
UniCredit SpA 1.982%, 06/03/2027(e)			250		221,438
2.569%, 09/22/2026(e)			3,984		3,622,731
US Bancorp 4.839%, 02/01/2034			548		524,348
					235,360,201
Brokerage – 0.7%
Nomura Holdings, Inc. 5.709%, 01/09/2026			6,517		6,547,043
Voya Financial, Inc. 5.65%, 05/15/2053			12,065		12,058,606
					18,605,649
Finance – 0.9%
Aircastle Ltd. 2.85%, 01/26/2028(e)			1,242		1,080,416
4.40%, 09/25/2023			1,716		1,701,895

abfunds.com AB INCOME FUND    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Aviation Capital Group LLC 4.125%, 08/01/2025(e)	U.S.$		1,592	$	1,520,487
4.375%, 01/30/2024(e)			1,694		1,665,100
4.875%, 10/01/2025(e)			1,315		1,273,656
Huarong Finance 2017 Co., Ltd. 4.25%, 11/07/2027(e)			273		227,665
4.75%, 04/27/2027(e)			400		346,450
Huarong Finance II Co., Ltd. 4.625%, 06/03/2026(e)			630		557,471
4.875%, 11/22/2026(e)			737		648,468
5.50%, 01/16/2025(e)			5,167		4,901,545
REC Ltd. 5.625%, 04/11/2028(e)			648		650,547
Synchrony Financial 3.95%, 12/01/2027			9,789		8,639,674
					23,213,374
Insurance – 1.2%
ACE Capital Trust II 9.70%, 04/01/2030			750		896,115
Assicurazioni Generali SpA 5.50%, 10/27/2047(e)	EUR		6,630		7,335,772
Credit Agricole Assurances SA 4.75%, 09/27/2048(e)			3,200		3,373,261
Fairfax Financial Holdings Ltd. 8.30%, 04/15/2026	U.S.$		5,000		5,285,900
Hartford Financial Services Group, Inc. (The) Series ICON 6.989% (LIBOR 3 Month + 2.12%), 02/12/2047(e)(g)			3,275		2,656,385
MetLife Capital Trust IV 7.875%, 12/15/2037(e)			4,117		4,359,409
Prudential Financial, Inc. 5.20%, 03/15/2044			4,029		3,862,360
5.625%, 06/15/2043			2,868		2,862,924
					30,632,126
REITs – 0.5%
Boston Properties LP 6.75%, 12/01/2027			3,440		3,503,090
GLP Capital LP/GLP Financing II, Inc. 5.375%, 04/15/2026			283		280,388
Spirit Realty LP 2.10%, 03/15/2028			3,911		3,310,270
3.40%, 01/15/2030			1,800		1,555,812
STORE Capital Corp. 4.625%, 03/15/2029		��	1,143		1,015,110

18    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Trust Fibra Uno 4.869%, 01/15/2030(a)(e)	U.S.$		4,814	$	4,070,237
					13,734,907
					321,546,257
Industrial – 5.1%
Basic – 0.7%
Anglo American Capital PLC 5.625%, 04/01/2030(e)			3,960		4,002,817
Arconic Corp. 6.00%, 05/15/2025(e)			765		764,518
Braskem Netherlands Finance BV 4.50%, 01/31/2030(e)			408		342,598
7.25%, 02/13/2033(e)			2,713		2,585,421
Celanese US Holdings LLC 6.05%, 03/15/2025			1,124		1,128,440
CF Industries, Inc. 4.95%, 06/01/2043			75		65,451
Freeport Indonesia PT 4.763%, 04/14/2027(e)			964		950,323
Gold Fields Orogen Holdings BVI Ltd. 5.125%, 05/15/2024(e)			1,445		1,435,788
MEGlobal Canada ULC 5.00%, 05/18/2025(e)			1,988		1,974,705
Nexa Resources SA 5.375%, 05/04/2027(e)			1,441		1,354,540
Suzano Austria GmbH 3.75%, 01/15/2031			2,135		1,801,940
5.00%, 01/15/2030			1,260		1,179,360
Series DM3N 3.125%, 01/15/2032			427		338,398
					17,924,299
Capital Goods – 0.1%
General Electric Co. Series D 8.196% (LIBOR 3 Month + 3.33%), 06/15/2023(f)(g)			553		553,199
Regal Rexnord Corp. 6.30%, 02/15/2030(e)			1,078		1,096,272
6.40%, 04/15/2033(e)			1,275		1,298,983
					2,948,454
Communications - Media – 0.4%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(e)			2,691		2,361,595
Prosus NV 3.68%, 01/21/2030(e)			5,224		4,425,054

abfunds.com AB INCOME FUND    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Telecomunicaciones Digitales SA 4.50%, 01/30/2030(e)	U.S.$		433	$	355,331
Weibo Corp. 3.50%, 07/05/2024			4,574		4,454,790
					11,596,770
Communications - Telecommunications – 0.1%
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(e)			995		987,289
5.152%, 03/20/2028(e)			1,990		1,977,741
					2,965,030
Consumer Cyclical - Automotive – 0.7%
General Motors Financial Co., Inc. 5.85%, 04/06/2030			6,415		6,409,611
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(e)			655		592,389
6.50%, 03/10/2028(e)			10,280		10,406,444
Nissan Motor Acceptance Co. LLC 1.85%, 09/16/2026(e)			96		82,041
2.45%, 09/15/2028(e)			768		615,851
2.75%, 03/09/2028(e)			1,294		1,076,414
Nissan Motor Co., Ltd. 4.81%, 09/17/2030(e)			247		216,925
					19,399,675
Consumer Cyclical - Other – 0.1%
Lennar Corp. 4.75%, 11/29/2027			75		74,284
PulteGroup, Inc. 6.375%, 05/15/2033			2,868		3,043,665
Resorts World Las Vegas LLC/RWLV Capital, Inc. 4.625%, 04/16/2029(e)			1,100		887,073
					4,005,022
Consumer Cyclical - Retailers – 0.1%
Macy’s Retail Holdings LLC 5.875%, 03/15/2030(e)			985		873,931
6.125%, 03/15/2032(e)			1,510		1,321,688
					2,195,619
Consumer Non-Cyclical – 0.3%
BAT Capital Corp. 4.906%, 04/02/2030			7,540		7,271,274
7.75%, 10/19/2032			15		16,616
Charles River Laboratories International, Inc. 4.00%, 03/15/2031(e)			423		368,188
					7,656,078

20    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 1.1%
Continental Resources, Inc./OK 5.75%, 01/15/2031(e)	U.S.$		2,501	$	2,437,400
Ecopetrol SA 5.875%, 11/02/2051			1,495		945,401
6.875%, 04/29/2030			4,658		4,151,442
8.875%, 01/13/2033			440		425,425
Hess Corp. 7.30%, 08/15/2031			5,128		5,765,000
Hunt Oil Co. of Peru LLC Sucursal Del Peru 6.375%, 06/01/2028(e)			999		951,093
Occidental Petroleum Corp. 5.875%, 09/01/2025			38		38,519
8.875%, 07/15/2030			891		1,046,488
Oleoducto Central SA 4.00%, 07/14/2027(e)			1,169		1,028,209
Raizen Fuels Finance SA 5.30%, 01/20/2027(e)			2,218		2,179,629
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(e)			1,918		1,443,055
Var Energi ASA 7.50%, 01/15/2028(e)			2,892		3,057,336
8.00%, 11/15/2032(e)			1,436		1,559,166
Western Midstream Operating LP 3.95%, 06/01/2025			159		153,239
4.30%, 02/01/2030(h)			1,171		1,072,250
4.65%, 07/01/2026			1,558		1,516,838
4.75%, 08/15/2028			490		471,610
					28,242,100
Technology – 0.7%
Baidu, Inc. 3.425%, 04/07/2030			225		204,581
Entegris Escrow Corp. 4.75%, 04/15/2029(e)			7,688		7,151,685
Jabil, Inc. 5.45%, 02/01/2029			1,012		1,018,022
Lenovo Group Ltd. 3.421%, 11/02/2030(e)			509		428,292
5.831%, 01/27/2028(e)			1,585		1,596,689
Micron Technology, Inc. 6.75%, 11/01/2029			5,492		5,791,918
NXP BV/NXP Funding LLC 5.55%, 12/01/2028			1,130		1,153,515
SK Hynix, Inc. 6.25%, 01/17/2026(e)			582		582,111
6.375%, 01/17/2028(e)			918		921,268
6.50%, 01/17/2033(e)			787		780,999

abfunds.com AB INCOME FUND    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Western Digital Corp. 2.85%, 02/01/2029	U.S.$		185	$	146,270
3.10%, 02/01/2032			522		377,986
					20,153,336
Transportation - Airlines – 0.1%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(e)			1,640		1,591,686
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(e)			530		468,499
5.875%, 07/05/2034(e)			1,533		1,475,635
					1,944,134
Transportation - Services – 0.6%
Adani Ports & Special Economic Zone Ltd. 4.00%, 07/30/2027(e)			4,585		3,833,633
AerCap Global Aviation Trust 6.50%, 06/15/2045(e)			1,944		1,828,332
ERAC USA Finance LLC 4.599%, 05/01/2028(e)			4,240		4,229,697
4.90%, 05/01/2033(e)			5,139		5,138,794
					15,030,456
					135,652,659
Utility – 1.3%
Electric – 1.3%
Adani Transmission Step-One Ltd. 4.00%, 08/03/2026(e)			3,064		2,606,890
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(e)			2,474		2,133,850
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(e)			3,169		2,360,509
Colbun SA 3.15%, 03/06/2030(e)			209		182,588
ComEd Financing III 6.35%, 03/15/2033			3,462		3,491,773
Cometa Energia SA de CV 6.375%, 04/24/2035(e)			1,449		1,387,299
Empresa Electrica Cochrane SpA 5.50%, 05/14/2027(e)			281		259,650
Empresas Publicas de Medellin ESP 4.25%, 07/18/2029(e)			3,775		2,951,106
4.375%, 02/15/2031(e)			5,315		3,940,740
Enel Finance International NV 7.50%, 10/14/2032(e)			2,493		2,790,340
Engie Energia Chile SA 3.40%, 01/28/2030(e)			6,432		5,269,416

22    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Kallpa Generacion SA 4.125%, 08/16/2027(e)	U.S.$		2,562	$	2,352,717
LLPL Capital Pte Ltd. 6.875%, 02/04/2039(e)			2,887		2,588,539
NextEra Energy Capital Holdings, Inc. 6.051%, 03/01/2025			957		972,924
NRG Energy, Inc. 7.00%, 03/15/2033(e)			992		1,030,490
					34,318,831
Total Corporates - Investment Grade (cost $513,665,191)					491,517,747
CORPORATES - NON-INVESTMENT GRADE – 9.8%
Industrial – 8.1%
Basic – 0.4%
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(e)			277		228,267
7.50%, 09/30/2029(e)			280		202,544
ERP Iron Ore LLC 9.039%, 12/31/2019(i)(j)(k)(l)(m)			118		78,879
FMG Resources (August 2006) Pty Ltd. 6.125%, 04/15/2032(e)			3,761		3,639,068
Graphic Packaging International LLC 4.75%, 07/15/2027(e)			32		30,950
INEOS Quattro Finance 1 PLC 3.75%, 07/15/2026(e)	EUR		107		103,255
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(i)(j)(k)(l)(n)	U.S.$		1,407		– 0	–
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(e)			1,782		1,640,331
Sealed Air Corp./Sealed Air Corp. US 6.125%, 02/01/2028(e)			667		677,359
Vibrantz Technologies, Inc. 9.00%, 02/15/2030(e)			4,043		3,118,042
WR Grace Holdings LLC 4.875%, 06/15/2027(e)			328		312,017
					10,030,712
Capital Goods – 0.3%
Bombardier, Inc. 7.875%, 04/15/2027(e)			82		81,797
Chart Industries, Inc. 7.50%, 01/01/2030(e)			674		695,191
Clean Harbors, Inc. 6.375%, 02/01/2031(e)			249		254,202

abfunds.com AB INCOME FUND    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Eco Material Technologies, Inc. 7.875%, 01/31/2027(e)	U.S.$		2,807		$	2,692,587
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(e)			771			763,290
LSB Industries, Inc. 6.25%, 10/15/2028(e)(h)			1,402			1,238,232
TK Elevator Holdco GmbH 7.625%, 07/15/2028(e)			1,008			897,140
TK Elevator US Newco, Inc. 5.25%, 07/15/2027(e)			743			694,460
TransDigm, Inc. 6.25%, 03/15/2026(e)			33			33,158
Triumph Group, Inc. 7.75%, 08/15/2025			362			336,573
Trivium Packaging Finance BV 3.75%, 08/15/2026(e)	EUR		100			101,428
						7,788,058
Communications - Media – 1.0%
Advantage Sales & Marketing, Inc. 6.50%, 11/15/2028(e)	U.S.$		4,764			3,667,708
Altice Financing SA 5.75%, 08/15/2029(e)			3,670			2,929,027
AMC Networks, Inc. 4.25%, 02/15/2029			3,809			2,639,942
Banijay Entertainment SASU 3.50%, 03/01/2025(e)	EUR		600			643,865
5.375%, 03/01/2025(e)	U.S.$		455			445,763
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(e)			688			580,287
4.50%, 06/01/2033(e)			6,459			5,149,890
4.75%, 02/01/2032(e)			519			429,504
CSC Holdings LLC 4.625%, 12/01/2030(e)			547			266,821
5.75%, 01/15/2030(e)			728			371,316
DISH DBS Corp. 5.125%, 06/01/2029			635			293,560
5.25%, 12/01/2026(e)			1,033			788,448
7.75%, 07/01/2026			302			174,369
iHeartCommunications, Inc. 6.375%, 05/01/2026			0	**		301
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(e)			3,282			2,915,597
National CineMedia LLC 5.875%, 04/15/2028(e)(j)(o)			2,267			809,795
Sinclair Television Group, Inc. 5.50%, 03/01/2030(a)(e)			2,251			1,738,740

24    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Sirius XM Radio, Inc. 4.00%, 07/15/2028(e)	U.S.$		792	$	669,367
5.00%, 08/01/2027(e)			1,786		1,643,102
					26,157,402
Communications - Telecommunications – 0.0%
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(i)(j)(l)			4,941		– 0	–
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(e)			1,329		1,131,737
					1,131,737
Consumer Cyclical - Automotive – 0.8%
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(e)	EUR		360		379,305
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(e)	U.S.$		2,682		2,486,321
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(i)(j)(l)(n)			2,273		– 0	–
(First Lien) 11.00%, 10/31/2024(i)(j)(l)(n)			933		– 0	–
Ford Motor Co. 6.10%, 08/19/2032			4,859		4,633,397
IHO Verwaltungs GmbH 3.625% (3.625% Cash or 4.375% PIK), 05/15/2025(e)(m)	EUR		560		616,243
3.875% (3.875% Cash or 4.625% PIK), 05/15/2027(e)(m)			623		601,731
8.75% (8.75% Cash or 9.50% PIK), 05/15/2028(e)(m)			506		565,375
Jaguar Land Rover Automotive PLC 5.50%, 07/15/2029(e)	U.S.$		2,707		2,241,612
7.75%, 10/15/2025(e)			1,661		1,650,536
Mclaren Finance PLC 7.50%, 08/01/2026(e)			6,471		5,325,633
PM General Purchaser LLC 9.50%, 10/01/2028(e)			1,509		1,430,109
ZF North America Capital, Inc. 6.875%, 04/14/2028(e)			1,328		1,365,357
7.125%, 04/14/2030(e)			1,328		1,371,386
					22,667,005
Consumer Cyclical - Entertainment – 1.1%
Carnival Corp. 4.00%, 08/01/2028(e)			1,841		1,596,239
5.75%, 03/01/2027(e)			2,598		2,137,868

abfunds.com AB INCOME FUND    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
9.875%, 08/01/2027(e)	U.S.$		1,508	$	1,547,434
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(e)			8,053		8,032,304
Lindblad Expeditions LLC 6.75%, 02/15/2027(e)			779		737,121
NCL Corp., Ltd. 8.375%, 02/01/2028(e)			1,524		1,536,832
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(e)			433		384,777
5.50%, 08/31/2026(e)			82		75,233
5.50%, 04/01/2028(e)			1,617		1,426,049
7.25%, 01/15/2030(e)			905		907,905
11.50%, 06/01/2025(e)			2,358		2,501,602
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(e)			4,017		4,077,295
Viking Cruises Ltd. 5.875%, 09/15/2027(e)			1,057		906,631
13.00%, 05/15/2025(e)			888		935,002
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(e)			1,376		1,172,214
VOC Escrow Ltd. 5.00%, 02/15/2028(e)			75		66,800
					28,041,306
Consumer Cyclical - Other – 0.3%
Adams Homes, Inc. 7.50%, 02/15/2025(e)			1,585		1,490,280
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(e)			1,846		1,691,361
Caesars Entertainment, Inc. 7.00%, 02/15/2030(e)			705		711,810
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(e)			140		122,576
5.00%, 06/01/2029(e)			1,864		1,686,864
Installed Building Products, Inc. 5.75%, 02/01/2028(e)			846		801,822
MGM Resorts International 4.75%, 10/15/2028			104		96,656
Travel + Leisure Co. 6.625%, 07/31/2026(e)			2,404		2,399,913
					9,001,282

26    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(e)	U.S.$		1,546	$	1,448,988
Consumer Cyclical - Retailers – 0.6%
Arko Corp. 5.125%, 11/15/2029(e)			845		684,382
Bath & Body Works, Inc. 6.75%, 07/01/2036			704		626,314
6.875%, 11/01/2035			2,210		1,990,061
9.375%, 07/01/2025(e)			185		198,270
FirstCash, Inc. 5.625%, 01/01/2030(e)			66		61,305
Foundation Building Materials, Inc. 6.00%, 03/01/2029(e)			1,143		916,297
Kontoor Brands, Inc. 4.125%, 11/15/2029(e)			2,225		1,890,271
Michaels Cos, Inc. (The) 7.875%, 05/01/2029(e)			4,529		3,031,667
PetSmart, Inc./PetSmart Finance Corp. 7.75%, 02/15/2029(e)			1,480		1,458,659
Rite Aid Corp. 7.50%, 07/01/2025(e)			1,748		1,201,977
SRS Distribution, Inc. 6.125%, 07/01/2029(e)			548		453,240
Staples, Inc. 7.50%, 04/15/2026(e)			2,956		2,497,052
10.75%, 04/15/2027(e)			1,108		744,609
TPro Acquisition Corp. 11.00%, 10/15/2024(e)			716		714,897
					16,469,001
Consumer Non-Cyclical – 0.6%
CHS/Community Health Systems, Inc. 6.875%, 04/15/2029(e)			2,079		1,538,398
DaVita, Inc. 4.625%, 06/01/2030(e)			992		864,518
Embecta Corp. 5.00%, 02/15/2030(e)			1,087		937,592
Garden Spinco Corp. 8.625%, 07/20/2030(e)			1,594		1,719,001
Legacy LifePoint Health LLC 4.375%, 02/15/2027(e)			695		591,626
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 10.00%, 06/15/2029(e)			163		87,083
Medline Borrower LP 3.875%, 04/01/2029(e)			328		286,931

abfunds.com AB INCOME FUND    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.25%, 10/01/2029(e)	U.S.$		1,374	$	1,188,359
Newell Brands, Inc. 6.375%, 09/15/2027			1,534		1,509,072
6.625%, 09/15/2029(a)			1,534		1,516,282
Radiology Partners, Inc. 9.25%, 02/01/2028(e)			3,294		1,487,076
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(e)			3,840		3,194,957
US Acute Care Solutions LLC 6.375%, 03/01/2026(e)			1,383		1,239,113
					16,160,008
Energy – 1.1%
Citgo Holding, Inc. 9.25%, 08/01/2024(e)			737		741,761
CITGO Petroleum Corp. 7.00%, 06/15/2025(e)			2,880		2,865,369
Crescent Energy Finance LLC 7.25%, 05/01/2026(e)			1,339		1,281,624
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(e)			826		735,834
EQM Midstream Partners LP 4.50%, 01/15/2029(e)			238		202,724
4.75%, 01/15/2031(e)			538		443,102
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026			487		468,723
6.50%, 10/01/2025			123		120,680
7.75%, 02/01/2028			3,367		3,317,943
8.00%, 01/15/2027			537		535,996
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			1,924		1,792,668
Gulfport Energy Corp. 6.00%, 10/15/2024(j)			438		276
6.375%, 05/15/2025(j)			1,351		851
6.375%, 01/15/2026(j)			1,194		752
6.625%, 05/01/2023(j)			236		149
8.00%, 05/17/2026(e)			580		582,638
Harbour Energy PLC 5.50%, 10/15/2026(e)			403		366,980
Ithaca Energy North Sea PLC 9.00%, 07/15/2026(e)			1,684		1,619,503
ITT Holdings LLC 6.50%, 08/01/2029(e)			2,772		2,301,009
Nabors Industries Ltd. 7.25%, 01/15/2026(e)			925		872,367
7.50%, 01/15/2028(e)			1,372		1,251,538

28    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
New Fortress Energy, Inc. 6.75%, 09/15/2025(e)	U.S.$		1,399	$	1,335,108
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(e)			4,696		4,520,557
NuStar Logistics LP 6.375%, 10/01/2030			803		773,506
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(e)			1,560		1,504,433
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. 6.00%, 12/31/2030(e)			565		502,788
6.00%, 09/01/2031(e)			248		221,509
					28,360,388
Other Industrial – 0.1%
Ritchie Bros Holdings, Inc. 6.75%, 03/15/2028(e)			795		822,642
7.75%, 03/15/2031(e)			728		773,486
					1,596,128
Services – 0.8%
ADT Security Corp. (The) 4.875%, 07/15/2032(e)			90		78,347
Allied Universal Holdco LLC/Allied Universal Finance Corp. 9.75%, 07/15/2027(e)			1,513		1,406,742
ANGI Group LLC 3.875%, 08/15/2028(e)			458		357,895
APX Group, Inc. 5.75%, 07/15/2029(e)			2,079		1,858,564
6.75%, 02/15/2027(e)			967		968,228
Aramark Services, Inc. 5.00%, 02/01/2028(e)			677		643,962
Cars.com, Inc. 6.375%, 11/01/2028(e)			2,427		2,300,019
Garda World Security Corp. 9.50%, 11/01/2027(e)			2,358		2,260,167
ION Trading Technologies SARL 5.75%, 05/15/2028(e)			284		237,467
Millennium Escrow Corp. 6.625%, 08/01/2026(e)			3,319		2,243,777
Monitronics International, Inc. 0.00%, 04/01/2020(i)(j)(k)(l)			1,835		– 0	–
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)(e)			4,123		2,597,572
Neptune Bidco US, Inc. 9.29%, 04/15/2029(e)			2,658		2,501,843

abfunds.com AB INCOME FUND    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Prime Security Services Borrower LLC/Prime Finance, Inc. 6.25%, 01/15/2028(e)	U.S.$		473	$	443,215
Sabre GLBL, Inc. 11.25%, 12/15/2027(e)			5,077		4,454,864
					22,352,662
Technology – 0.4%
Cablevision Lightpath LLC 5.625%, 09/15/2028(e)			1,847		1,350,896
CommScope, Inc. 4.75%, 09/01/2029(e)			68		54,866
Entegris Escrow Corp. 5.95%, 06/15/2030(e)			2,001		1,900,990
Gen Digital, Inc. 6.75%, 09/30/2027(e)			1,528		1,539,995
7.125%, 09/30/2030(e)			1,528		1,536,083
NCR Corp. 5.125%, 04/15/2029(e)			1,017		879,817
5.75%, 09/01/2027(e)			23		22,511
6.125%, 09/01/2029(e)			366		358,651
Presidio Holdings, Inc. 4.875%, 02/01/2027(e)			165		156,270
8.25%, 02/01/2028(e)			1,836		1,729,861
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(e)			1,375		1,040,655
Virtusa Corp. 7.125%, 12/15/2028(e)			947		763,395
					11,333,990
Transportation - Airlines – 0.1%
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(e)			2,668		2,694,188
Transportation - Services – 0.4%
Albion Financing 1 SARL/Aggreko Holdings, Inc. 6.125%, 10/15/2026(e)			842		764,342
BCP V Modular Services Finance II PLC 4.75%, 11/30/2028(e)	EUR		264		242,996
Loxam SAS 4.50%, 02/15/2027(e)			2,338		2,436,405
NAC Aviation 29 DAC 4.75%, 06/30/2026	U.S.$		5,786		4,925,436
PROG Holdings, Inc. 6.00%, 11/15/2029(e)			1,304		1,173,678
					9,542,857
					214,775,712

30    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 1.2%
Banking – 0.2%
Ally Financial, Inc. Series B 4.70%, 05/15/2026(f)	U.S.$		3,727	$	2,748,663
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(e)			3,513		3,144,205
7.00%, 01/15/2026(e)			824		692,580
					6,585,448
Brokerage – 0.2%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(e)			4,330		4,323,375
NFP Corp. 6.875%, 08/15/2028(e)			1,258		1,098,171
7.50%, 10/01/2030(e)			1,206		1,185,257
					6,606,803
Finance – 0.3%
Aircastle Ltd. 5.25%, 06/15/2026(e)(f)			1,325		892,851
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(e)			1,799		1,596,757
Curo Group Holdings Corp. 7.50%, 08/01/2028(e)			3,057		1,215,463
Enova International, Inc. 8.50%, 09/01/2024(e)			3,418		3,395,407
SLM Corp. 3.125%, 11/02/2026			473		413,605
					7,514,083
Insurance – 0.3%
Acrisure LLC/Acrisure Finance, Inc. 7.00%, 11/15/2025(e)			4,241		4,049,519
10.125%, 08/01/2026(e)			831		844,620
Ardonagh Midco 2 PLC 11.50% (11.50% Cash or 12.75% PIK), 01/15/2027(e)(m)			1,789		1,609,660
AssuredPartners, Inc. 5.625%, 01/15/2029(e)			1,222		1,059,511
					7,563,310
Other Finance – 0.1%
Intrum AB 3.00%, 09/15/2027(e)	EUR		1,490		1,236,398
3.50%, 07/15/2026(e)			1,040		938,405
					2,174,803
REITs – 0.1%
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(e)	U.S.$		320		264,602

abfunds.com AB INCOME FUND    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Office Properties Income Trust 3.45%, 10/15/2031	U.S.$		1,315	$	677,120
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer 4.875%, 05/15/2029(e)			1,270		1,103,236
					2,044,958
					32,489,405
Utility – 0.5%
Electric – 0.4%
NRG Energy, Inc. 3.875%, 02/15/2032(e)			3,485		2,813,231
10.25%, 03/15/2028(e)(f)			782		771,201
Vistra Corp. 7.00%, 12/15/2026(e)(f)			3,399		3,053,832
8.00%, 10/15/2026(e)(f)			4,113		3,880,163
					10,518,427
Natural Gas – 0.0%
AmeriGas Partners LP/AmeriGas Finance Corp. 5.75%, 05/20/2027			654		621,058
5.875%, 08/20/2026			488		471,042
					1,092,100
Other Utility – 0.1%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(e)			1,318		1,265,662
					12,876,189
Total Corporates - Non-Investment Grade (cost $295,989,080)					260,141,306
COLLATERALIZED LOAN OBLIGATIONS – 5.0%
CLO - Floating Rate – 5.0%
Ares XXXIV CLO Ltd. Series 2015-2A, Class CR 7.26% (LIBOR 3 Month + 2.00%), 04/17/2033(e)(g)			9,437		8,925,099
Balboa Bay Loan Funding Ltd. Series 2020-1A, Class DR 8.40% (LIBOR 3 Month + 3.15%), 01/20/2032(e)(g)			1,935		1,743,570
Series 2021-1A, Class D 8.30% (LIBOR 3 Month + 3.05%), 07/20/2034(e)(g)			2,750		2,423,237

32    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2022-1A, Class D 9.049% (SOFR + 4.00%), 04/20/2034(e)(g)	U.S.$		7,850	$	7,195,451
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 8.36% (LIBOR 3 Month + 3.10%), 04/15/2034(e)(g)			2,750		2,500,561
Black Diamond CLO Ltd. Series 2016-1A, Class A2AR 7.018% (LIBOR 3 Month + 1.75%), 04/26/2031(e)(g)			5,300		5,104,690
BlueMountain Fuji US CLO II Ltd. Series 2017-2A, Class D 11.40% (LIBOR 3 Month + 6.15%), 10/20/2030(e)(g)			3,300		2,629,179
CBAM Ltd. Series 2018-7A, Class B1 6.85% (LIBOR 3 Month + 1.60%), 07/20/2031(e)(g)			1,996		1,924,787
CIFC Funding Ltd. Series 2020-4A, Class D 8.66% (LIBOR 3 Month + 3.40%), 01/15/2034(e)(g)			300		286,753
Crown Point CLO 11 Ltd. Series 2021-11A, Class D 8.86% (LIBOR 3 Month + 3.60%), 01/17/2034(e)(g)			2,000		1,868,752
Dryden 49 Senior Loan Fund Series 2017-49A, Class E 11.562% (LIBOR 3 Month + 6.30%), 07/18/2030(e)(g)			605		504,661
Dryden 78 CLO Ltd. Series 2020-78A, Class C 7.21% (LIBOR 3 Month + 1.95%), 04/17/2033(e)(g)			1,480		1,398,804
Series 2020-78A, Class D 8.26% (LIBOR 3 Month + 3.00%), 04/17/2033(e)(g)			6,824		6,346,137
Dryden 98 CLO Ltd. Series 2022-98A, Class D 8.149% (SOFR + 3.10%), 04/20/2035(e)(g)			4,850		4,278,733
Elevation CLO Ltd. Series 2020-11A, Class D1 9.11% (LIBOR 3 Month + 3.85%), 04/15/2033(e)(g)			4,490		4,112,297

abfunds.com AB INCOME FUND    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Elmwood CLO VII Ltd. Series 2020-4A, Class D 8.86% (LIBOR 3 Month + 3.60%), 01/17/2034(e)(g)	U.S.$		4,200	$	4,012,903
Elmwood CLO VIII Ltd. Series 2021-1A, Class D1 8.25% (LIBOR 3 Month + 3.00%), 01/20/2034(e)(g)			1,000		917,588
Galaxy 30 CLO Ltd. Series 2022-30A, Class D 8.336% (SOFR + 3.35%), 04/15/2035(e)(g)			6,350		5,693,505
GoldenTree Loan Opportunities IX Ltd. Series 2014-9A, Class DR2 8.299% (LIBOR 3 Month + 3.00%), 10/29/2029(e)(g)			2,815		2,664,504
Greywolf CLO VI Ltd. Series 2018-1A, Class A2 6.958% (SOFR + 1.89%), 04/26/2031(e)(g)			5,300		5,178,847
Halcyon Loan Advisors Funding Ltd. Series 2018-1A, Class A2 7.05% (LIBOR 3 Month + 1.80%), 07/21/2031(e)(g)			1,826		1,743,193
Series 2018-1A, Class C 8.45% (LIBOR 3 Month + 3.20%), 07/21/2031(e)(g)			2,000		1,696,032
Madison Park Funding LI Ltd. Series 2021-51A, Class D 8.315% (LIBOR 3 Month + 3.05%), 07/19/2034(e)(g)			3,650		3,430,270
Magnetite XXV Ltd. Series 2020-25A, Class D 8.555% (LIBOR 3 Month + 3.30%), 01/25/2032(e)(g)			3,000		2,842,251
Northwoods Capital XII-B Ltd. Series 2018-12BA, Class B 6.716% (LIBOR 3 Month + 1.85%), 06/15/2031(e)(g)			1,350		1,299,124
OCP CLO Ltd. Series 2021-21A, Class D 8.20% (LIBOR 3 Month + 2.95%), 07/20/2034(e)(g)			4,750		4,261,244
Octagon Investment Partners 29 Ltd. Series 2016-1A, Class DR 8.373% (LIBOR 3 Month + 3.10%), 01/24/2033(e)(g)			6,571		6,007,173

34    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
OZLM VII Ltd. Series 2014-7RA, Class CR 8.26% (LIBOR 3 Month + 3.00%), 07/17/2029(e)(g)	U.S.$		1,000	$	941,189
OZLM XVIII Ltd. Series 2018-18A, Class B 6.81% (LIBOR 3 Month + 1.55%), 04/15/2031(e)(g)			5,450		5,198,842
Palmer Square CLO Ltd. Series 2021-3A, Class D 8.21% (LIBOR 3 Month + 2.95%), 01/15/2035(e)(g)			2,400		2,216,318
Regatta XIX Funding Ltd. Series 2022-1A, Class D 8.349% (SOFR + 3.30%), 04/20/2035(e)(g)			4,423		3,955,319
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 8.35% (LIBOR 3 Month + 3.10%), 01/20/2035(e)(g)			7,500		6,814,988
Rockford Tower CLO Ltd. Series 2017-2A, Class DR 8.11% (LIBOR 3 Month + 2.85%), 10/15/2029(e)(g)			4,444		4,192,857
Series 2021-2A, Class D 8.50% (LIBOR 3 Month + 3.25%), 07/20/2034(e)(g)			950		847,479
Series 2021-3A, Class D 8.50% (LIBOR 3 Month + 3.25%), 10/20/2034(e)(g)			8,550		7,525,026
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 8.40% (LIBOR 3 Month + 3.15%), 01/20/2034(e)(g)			2,400		2,256,482
Sixth Street CLO XX Ltd. Series 2021-20A, Class D 8.30% (LIBOR 3 Month + 3.05%), 10/20/2034(e)(g)			3,250		3,090,214
Venture XXVII CLO Ltd. Series 2017-27A, Class D 9.25% (LIBOR 3 Month + 4.00%), 07/20/2030(e)(g)			1,591		1,345,655
Voya CLO Ltd. Series 2019-1A, Class DR 8.11% (LIBOR 3 Month + 2.85%), 04/15/2031(e)(g)			4,595		4,056,145
Total Collateralized Loan Obligations (cost $145,198,020)					133,429,859

abfunds.com AB INCOME FUND    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 3.8%
Risk Share Floating Rate – 3.3%
Bellemeade Re Ltd. Series 2019-1A, Class M2 7.72% (LIBOR 1 Month + 2.70%), 03/25/2029(e)(g)	U.S.$		1,224	$	1,230,971
Connecticut Avenue Securities Trust Series 2022-R03, Class 1M2 8.315% (SOFR + 3.50%), 03/25/2042(e)(g)			2,657		2,705,233
Eagle Re Ltd. Series 2018-1, Class M1 6.72% (LIBOR 1 Month + 1.70%), 11/25/2028(e)(g)			513		512,648
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 9.27% (LIBOR 1 Month + 4.25%), 11/25/2023(g)			1,333		1,352,615
Series 2015-DNA2, Class B 12.57% (LIBOR 1 Month + 7.55%), 12/25/2027(g)			1,360		1,380,458
Series 2015-DNA3, Class B 14.37% (LIBOR 1 Month + 9.35%), 04/25/2028(g)			2,459		2,569,396
Series 2015-HQA1, Class B 13.82% (LIBOR 1 Month + 8.80%), 03/25/2028(g)			1,569		1,592,412
Series 2016-DNA1, Class B 15.02% (LIBOR 1 Month + 10.00%), 07/25/2028(g)			2,216		2,371,401
Series 2017-DNA3, Class B1 9.47% (LIBOR 1 Month + 4.45%), 03/25/2030(g)			4,550		4,868,500
Series 2017-HQA3, Class B1 9.47% (LIBOR 1 Month + 4.45%), 04/25/2030(g)			9,090		9,726,300
Series 2018-DNA2, Class B1 8.72% (LIBOR 1 Month + 3.70%), 12/25/2030(e)(g)			3,000		3,097,259
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 9.42% (LIBOR 1 Month + 4.40%), 01/25/2024(g)			1,699		1,728,601

36    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2014-C04, Class 1M2 9.92% (LIBOR 1 Month + 4.90%), 11/25/2024(g)	U.S.$		2,186	$	2,296,079
Series 2014-C04, Class 2M2 10.02% (LIBOR 1 Month + 5.00%), 11/25/2024(g)			41		41,104
Series 2015-C03, Class 1M2 10.02% (LIBOR 1 Month + 5.00%), 07/25/2025(g)			796		847,439
Series 2015-C04, Class 2M2 10.57% (LIBOR 1 Month + 5.55%), 04/25/2028(g)			1,042		1,087,581
Series 2016-C01, Class 1M2 11.77% (LIBOR 1 Month + 6.75%), 08/25/2028(g)			909		982,551
Series 2016-C01, Class 2M2 11.97% (LIBOR 1 Month + 6.95%), 08/25/2028(g)			397		419,619
Series 2016-C02, Class 1M2 11.02% (LIBOR 1 Month + 6.00%), 09/25/2028(g)			1,892		1,990,873
Series 2016-C05, Class 2B 15.77% (LIBOR 1 Month + 10.75%), 01/25/2029(g)			2,737		2,937,386
Series 2016-C07, Class 2B 14.52% (LIBOR 1 Month + 9.50%), 05/25/2029(g)			1,188		1,223,524
Series 2017-C03, Class 1B1 9.87% (LIBOR 1 Month + 4.85%), 10/25/2029(g)			7,080		7,768,473
Series 2017-C05, Class 1B1 8.62% (LIBOR 1 Month + 3.60%), 01/25/2030(g)			7,280		7,679,358
Series 2018-C03, Class 1B1 8.77% (LIBOR 1 Month + 3.75%), 10/25/2030(g)			7,250		7,774,668
Home Re Ltd. Series 2019-1, Class B1 9.37% (LIBOR 1 Month + 4.35%), 05/25/2029(g)(n)			2,000		2,017,728
Series 2020-1, Class M2 10.27% (LIBOR 1 Month + 5.25%), 10/25/2030(e)(g)			4,734		4,812,634
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 9.27% (LIBOR 1 Month + 4.25%), 11/25/2024(g)(n)			341		330,959

abfunds.com AB INCOME FUND    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-CH1, Class M2 10.52% (LIBOR 1 Month + 5.50%), 10/25/2025(g)(n)	U.S.$		616	$	601,374
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 7.768% (LIBOR 1 Month + 2.75%), 05/27/2023(e)(g)			1,292		1,267,491
Series 2019-3R, Class A 8.718% (LIBOR 1 Month + 3.70%), 11/27/2031(e)(g)			357		346,894
Series 2020-1R, Class A 8.368% (LIBOR 1 Month + 3.35%), 02/27/2023(g)(n)			1,781		1,720,160
Radnor Re Ltd. Series 2019-1, Class M1B 6.97% (LIBOR 1 Month + 1.95%), 02/25/2029(e)(g)			2,673		2,672,316
Triangle Re Ltd. Series 2021-3, Class M1A 6.715% (SOFR + 1.90%), 02/25/2034(e)(g)			5,482		5,475,796
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 10.27% (LIBOR 1 Month + 5.25%), 11/25/2025(g)(n)			224		208,536
					87,638,337
Agency Floating Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 3119, Class PI 2.252% (7.20% - LIBOR 1 Month), 02/15/2036(g)(p)			838		123,803
Series 3856, Class KS 1.602% (6.55% - LIBOR 1 Month), 05/15/2041(g)(p)			4,779		559,171
Series 4248, Class SL 1.102% (6.05% - LIBOR 1 Month), 05/15/2041(g)(p)			476		36,245
Series 4372, Class JS 1.152% (6.10% - LIBOR 1 Month), 08/15/2044(g)(p)			2,601		272,483
Series 4570, Class ST 1.052% (6.00% - LIBOR 1 Month), 04/15/2046(g)(p)			1,202		139,685
Series 4735, Class SA 1.252% (6.20% - LIBOR 1 Month), 12/15/2047(g)(p)			5,894		702,549

38    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 4763, Class SB 2.052% (7.00% - LIBOR 1 Month), 03/15/2048(g)(p)	U.S.$		8,166	$	1,294,036
Series 4774, Class BS 1.252% (6.20% - LIBOR 1 Month), 02/15/2048(g)(p)			4,078		512,615
Series 4774, Class SL 1.252% (6.20% - LIBOR 1 Month), 04/15/2048(g)(p)			5,567		679,568
Series 4927, Class SJ 1.03% (6.05% - LIBOR 1 Month), 11/25/2049(g)(p)			2,241		338,067
Federal National Mortgage Association REMICs Series 2013-4, Class ST 1.13% (6.15% - LIBOR 1 Month), 02/25/2043(g)(p)			1,821		214,458
Series 2014-88, Class BS 1.13% (6.15% - LIBOR 1 Month), 01/25/2045(g)(p)			1,361		155,003
Series 2015-90, Class SA 1.13% (6.15% - LIBOR 1 Month), 12/25/2045(g)(p)			12,616		1,797,741
Series 2016-69, Class DS 1.08% (6.10% - LIBOR 1 Month), 10/25/2046(g)(p)			17,885		1,329,711
Series 2017-49, Class SP 1.13% (6.15% - LIBOR 1 Month), 07/25/2047(g)(p)			1,709		206,368
Series 2018-32, Class SB 1.18% (6.20% - LIBOR 1 Month), 05/25/2048(g)(p)			3,243		400,302
Series 2018-45, Class SL 1.18% (6.20% - LIBOR 1 Month), 06/25/2048(g)(p)			2,344		299,694
Series 2018-57, Class SL 1.18% (6.20% - LIBOR 1 Month), 08/25/2048(g)(p)			6,668		974,086
Series 2018-58, Class SA 1.18% (6.20% - LIBOR 1 Month), 08/25/2048(g)(p)			3,010		398,454
Series 2018-59, Class HS 1.18% (6.20% - LIBOR 1 Month), 08/25/2048(g)(p)			7,214		1,044,970
Series 2019-25, Class SA 1.03% (6.05% - LIBOR 1 Month), 06/25/2049(g)(p)			2,952		345,015

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-60, Class SJ 1.03% (6.05% - LIBOR 1 Month), 10/25/2049(g)(p)	U.S.$		2,684	$	344,463
					12,168,487
Non-Agency Fixed Rate – 0.1%
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 08/25/2036			849		479,662
CHL Mortgage Pass-Through Trust Series 2007-3, Class A30 5.75%, 04/25/2037			441		216,711
Series 2007-HY4, Class 1A1 3.625%, 09/25/2047			153		132,474
Citigroup Mortgage Loan Trust Series 2007-AR4, Class 1A1A 4.011%, 03/25/2037			79		67,244
Wells Fargo Mortgage Backed Securities Trust Series 2007-AR7, Class A1 4.35%, 12/28/2037			520		452,325
					1,348,416
Non-Agency Floating Rate – 0.0%
First Horizon Alternative Mortgage Securities Trust Series 2007-FA2, Class 1A10 5.27% (LIBOR 1 Month + 0.25%), 04/25/2037(g)			321		83,095
Lehman XS Trust Series 2007-10H, Class 2AIO 2.152% (7.00% - LIBOR 1 Month), 07/25/2037(g)(p)			185		18,421
					101,516
Agency Fixed Rate – 0.0%
Federal National Mortgage Association REMICs Series 2016-26, Class IO 5.00%, 05/25/2046(q)			342		51,921
Total Collateralized Mortgage Obligations (cost $98,221,666)					101,308,677
EMERGING MARKETS - CORPORATE BONDS – 3.4%
Industrial – 3.1%
Basic – 0.9%
Braskem Idesa SAPI 6.99%, 02/20/2032(e)			3,579		2,538,405

40    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
7.45%, 11/15/2029(e)	U.S.$		2,459	$	1,919,864
CSN Inova Ventures 6.75%, 01/28/2028(e)			445		419,496
CSN Resources SA 4.625%, 06/10/2031(e)			4,293		3,291,658
7.625%, 04/17/2026(e)			766		765,981
Eldorado Gold Corp. 6.25%, 09/01/2029(e)			2,385		2,218,050
Indika Energy Capital IV Pte Ltd. 8.25%, 10/22/2025(e)			4,123		4,070,947
JSW Steel Ltd. 3.95%, 04/05/2027(e)			491		431,098
5.05%, 04/05/2032(e)			1,121		901,564
OCP SA 3.75%, 06/23/2031(e)			1,011		847,218
Sasol Financing USA LLC 5.875%, 03/27/2024			1,467		1,448,021
8.75%, 05/03/2029(e)			908		912,177
Stillwater Mining Co. 4.00%, 11/16/2026(e)			953		854,901
4.50%, 11/16/2029(e)			891		734,407
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(e)			2,683		2,283,904
Volcan Cia Minera SAA 4.375%, 02/11/2026(e)			1,565		1,182,357
					24,820,048
Capital Goods – 0.3%
Diamond II Ltd. 7.95%, 07/28/2026(e)			2,208		2,176,580
Embraer Netherlands Finance BV 5.40%, 02/01/2027			3,079		2,963,537
6.95%, 01/17/2028(e)			1,691		1,704,613
IHS Holding Ltd. 5.625%, 11/29/2026(e)			1,243		1,035,031
6.25%, 11/29/2028(e)			410		326,667
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(e)			5,578		17,851
					8,224,279
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(e)			2,296		1,844,406
Communications - Telecommunications – 0.0%
C&W Senior Financing DAC 6.875%, 09/15/2027(e)			247		214,272

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CT Trust 5.125%, 02/03/2032(e)	U.S.$		723	$	594,577
Digicel Group Holdings Ltd. 7.00%, 05/15/2023(f)(m)(n)			93		10,274
Digicel International Finance Ltd./Digicel international Holdings Ltd. 8.75%, 05/25/2024(e)			339		305,723
					1,124,846
Consumer Cyclical - Other – 0.3%
Allwyn Entertainment Financing UK PLC 7.875%, 04/30/2029(e)			1,264		1,288,623
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(e)			200		165,475
MGM China Holdings Ltd. 5.25%, 06/18/2025(e)			895		850,977
5.375%, 05/15/2024(e)			569		557,549
5.875%, 05/15/2026(e)			598		570,342
Studio City Co., Ltd. 7.00%, 02/15/2027(e)			336		318,528
Studio City Finance Ltd. 6.00%, 07/15/2025(e)			1,088		994,160
6.50%, 01/15/2028(e)			998		856,284
Wynn Macau Ltd. 5.50%, 01/15/2026(e)			2,168		2,008,110
					7,610,048
Consumer Non-Cyclical – 0.6%
BRF GmbH 4.35%, 09/29/2026(e)			941		819,729
BRF SA 4.875%, 01/24/2030(e)			4,401		3,419,026
Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL 5.25%, 04/27/2029(e)			587		547,671
MARB BondCo PLC 3.95%, 01/29/2031(e)			7,315		5,351,471
Natura & Co. Luxembourg Holdings SARL 6.00%, 04/19/2029(e)			306		271,193
Natura Cosmeticos SA 4.125%, 05/03/2028(e)			4,606		3,816,647
Rede D’or Finance SARL 4.50%, 01/22/2030(e)			265		222,680
4.95%, 01/17/2028(e)			1,215		1,104,739
Tonon Luxembourg SA 6.50%, 10/31/2024(j)(l)(n)(o)			871		87
Ulker Biskuvi Sanayi AS 6.95%, 10/30/2025(e)			609		527,660

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(i)(j)(k)(l)(n)	U.S.$		4,738	$	474
10.875%, 01/13/2020(i)(j)(k)(l)(n)			750		75
11.75%, 02/09/2022(i)(j)(k)(l)(n)			1,690		169
					16,081,621
Energy – 0.7%
Acu Petroleo Luxembourg SARL 7.50%, 01/13/2032(e)			2,216		1,925,179
Gran Tierra Energy, Inc. 7.75%, 05/23/2027(e)			1,998		1,520,858
Greenko Wind Projects Mauritius Ltd. 5.50%, 04/06/2025(e)			1,925		1,821,531
Kosmos Energy Ltd. 7.50%, 03/01/2028(e)			1,388		1,168,783
Leviathan Bond Ltd. 5.75%, 06/30/2023(e)			2,196		2,183,850
6.125%, 06/30/2025(e)			1,763		1,701,956
Medco Platinum Road Pte Ltd. 6.75%, 01/30/2025(e)			979		953,399
MV24 Capital BV 6.748%, 06/01/2034(e)			1,535		1,369,180
Peru LNG SRL 5.375%, 03/22/2030(e)			2,614		2,081,398
ReNew Power Pvt Ltd. 5.875%, 03/05/2027(e)			200		187,788
SEPLAT Energy PLC 7.75%, 04/01/2026(e)			2,065		1,646,579
SierraCol Energy Andina LLC 6.00%, 06/15/2028(e)			2,098		1,553,569
					18,114,070
Services – 0.1%
Bidvest Group UK PLC (The) 3.625%, 09/23/2026(e)			1,667		1,511,552
Technology – 0.1%
CA Magnum Holdings 5.375%, 10/31/2026(e)			1,397		1,224,820
Transportation - Services – 0.0%
JSW Infrastructure Ltd. 4.95%, 01/21/2029(e)			583		502,947
					81,058,637
Utility – 0.3%
Electric – 0.3%
AES Andes SA 6.35%, 10/07/2079(e)			1,816		1,677,984

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
India Clean Energy Holdings 4.50%, 04/18/2027(e)	U.S.$		2,686	$	2,176,163
Investment Energy Resources Ltd. 6.25%, 04/26/2029(e)			1,306		1,204,214
JSW Hydro Energy Ltd. 4.125%, 05/18/2031(e)			1,217		1,014,417
Star Energy Geothermal Wayang Windu Ltd. 6.75%, 04/24/2033(e)			750		733,115
Terraform Global Operating LP 6.125%, 03/01/2026(n)			289		277,056
					7,082,949
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 4.375%, 10/25/2029(e)(h)(m)			4,014		143,284
5.25%, 12/27/2033(e)(h)(m)			1,269		44,065
					187,349
REITs – 0.0%
China Aoyuan Group Ltd. 5.375%, 09/13/2022(e)(j)(k)			200		12,500
5.88%, 03/01/2027(e)(j)(o)			1,401		87,563
Powerlong Real Estate Holdings Ltd. 4.90%, 05/13/2026(e)			684		126,540
Times China Holdings Ltd. 5.75%, 01/14/2027(e)(j)(o)			687		87,077
6.20%, 03/22/2026(e)(j)(o)			380		48,759
6.60%, 03/02/2023(e)(j)(k)			200		26,000
6.75%, 07/08/2025(e)(j)(o)			434		55,335
Yango Justice International Ltd. 7.50%, 02/17/2025(e)(j)(o)			665		13,300
8.25%, 11/25/2023(e)(j)(o)			400		8,000
10.25%, 09/15/2022(j)(k)			215		4,300
					469,374
					656,723
Total Emerging Markets - Corporate Bonds (cost $119,612,473)					88,798,309
BANK LOANS – 3.1%
Industrial – 2.8%
Capital Goods – 0.1%
Apex Tool Group, LLC 10.240% (SOFR 1 Month + 5.25%), 02/08/2029(r)			3,794		3,323,771

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Chariot Buyer LLC 8.275% (LIBOR 1 Month + 3.25%), 11/03/2028(r)	U.S.$		227	$	220,098
					3,543,869
Communications - Media – 0.1%
Advantage Sales & Marketing, Inc. 9.719% (LIBOR 3 Month + 4.50%), 10/28/2027(r)			1,271		1,080,735
Coral-US Co-Borrower LLC 7.948% (LIBOR 1 Month + 3.00%), 10/15/2029(r)			1,550		1,522,627
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 8.025% (LIBOR 1 Month + 3.00%), 05/01/2026(r)			222		191,003
Univision Communications, Inc. 7.775% (LIBOR 1 Month + 2.75%), 03/15/2024(r)			175		175,192
					2,969,557
Communications - Telecommunications – 0.6%
Crown Subsea Communications Holding, Inc. 9.668% (SOFR 1 Month + 4.75%), 04/27/2027(i)(r)			3,967		3,927,113
Directv Financing, LLC 10.025% (LIBOR 1 Month + 5.00%), 08/02/2027(r)			1,972		1,890,235
Proofpoint, Inc. 11.275% (LIBOR 1 Month + 6.25%), 08/31/2029(r)			6,000		5,687,520
Zacapa SARL 8.898% (SOFR 3 Month + 4.00%), 03/22/2029(r)			3,274		3,193,718
					14,698,586
Consumer Cyclical - Automotive – 0.0%
Clarios Global LP 8.275% (LIBOR 1 Month + 3.25%), 04/30/2026(r)			347		345,596
Consumer Cyclical - Other – 0.1%
Caesars Entertainment, Inc. 8.332% (SOFR 1 Month + 3.25%), 02/06/2030(r)			1,310		1,303,450

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. 8.082% (SOFR 1 Month + 3.00%), 12/15/2027(r)	U.S.$		539	$	529,418
Consumer Cyclical - Retailers – 0.1%
Great Outdoors Group, LLC 8.775% (LIBOR 1 Month + 3.75%), 03/06/2028(r)			1,183		1,172,263
Restoration Hardware, Inc. 8.332% (SOFR 1 Month + 3.25%), 10/20/2028(r)			1,820		1,689,232
					2,861,495
Consumer Non-Cyclical – 0.4%
Kronos Acquisition Holdings, Inc. 8.703% (LIBOR 3 Month + 3.75%), 12/22/2026(r)			1,867		1,818,016
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 9.023% (LIBOR 3 Month + 3.75%), 11/16/2025(r)			1,018		956,469
PetSmart LLC 8.832% (SOFR 1 Month + 3.75%), 02/11/2028(i)(r)			4,294		4,272,057
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 10.332% (SOFR 1 Month + 5.25%), 12/15/2027(r)			4,244		3,909,606
					10,956,148
Energy – 0.3%
GIP II Blue Holding, L.P. 9.659% (LIBOR 3 Month + 4.50%), 09/29/2028(r)			3,481		3,467,571
Parkway Generation, LLC 9.900% (SOFR 3 Month + 4.75%), 02/18/2029(r)			4,510		4,332,976
					7,800,547
Other Industrial – 0.1%
American Tire Distributors, Inc. 11.488% (SOFR 3 Month + 6.25%), 10/20/2028(r)			1,668		1,407,601
Dealer Tire Financial, LLC 9.482% (SOFR 1 Month + 4.50%), 12/14/2027(r)			1,290		1,284,141

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Rockwood Service Corporation 9.025% (LIBOR 1 Month + 4.00%), 01/23/2027(r)	U.S.$		173	$	172,020
					2,863,762
Services – 0.1%
Verscend Holding Corp. 9.025% (LIBOR 1 Month + 4.00%), 08/27/2025(r)			1,911		1,907,195
Technology – 0.9%
Amentum Government Services Holdings LLC 9.025% (LIBOR 1 Month + 4.00%), 01/29/2027(i)(r)			438		422,308
Ascend Learning, LLC 10.832% (SOFR 1 Month + 5.75%), 12/10/2029(r)			930		805,613
Banff Guarantor, Inc. 10.525% (LIBOR 1 Month + 5.50%), 02/27/2026(r)			1,050		1,012,809
Boxer Parent Company, Inc. 8.775% (LIBOR 1 Month + 3.75%), 10/02/2025(r)			3,364		3,319,970
Endurance International Group Holdings, Inc. 8.792% (LIBOR 3 Month + 3.50%), 02/10/2028(i)(r)			9,589		8,956,888
FINThrive Software Intermediate Holdings, Inc. 11.775% (LIBOR 1 Month + 6.75%), 12/17/2029(r)			580		406,725
Loyalty Ventures, Inc. 11.500% (PRIME 3 Month + 3.50%), 11/03/2027(j)(o)(r)			4,383		412,755
Peraton Corp. 8.832% (SOFR 1 Month + 3.75%), 02/01/2028(r)			1,597		1,562,497
Presidio Holdings, Inc. 8.582% (SOFR 1 Month + 3.50%), 01/22/2027(r)			60		59,632
8.645% (SOFR 3 Month + 3.50%), 01/22/2027(r)			1,542		1,529,184
Veritas US, Inc. 10.025% (LIBOR 1 Month + 5.00%), 09/01/2025(r)			5,617		4,304,873
					22,793,254
					72,572,877

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.2%
Finance – 0.0%
Orbit Private Holdings I Ltd. 9.541% (SOFR 6 Month + 4.50%), 12/11/2028(r)	U.S.$		375	$	374,781
Insurance – 0.2%
Asurion, LLC 9.332% (SOFR 1 Month + 4.25%), 08/19/2028(r)			1,710		1,586,880
Hub International Limited 8.414% (LIBOR 2 Month + 3.25%), 04/25/2025(r)			7		7,139
8.511% (LIBOR 3 Month + 3.25%), 04/25/2025(r)			2,791		2,784,277
					4,378,296
					4,753,077
Utility – 0.1%
Electric – 0.1%
Granite Generation LLC 8.775% (LIBOR 1 Month + 3.75%), 11/09/2026(r)			3,599		3,364,745
Total Bank Loans (cost $88,910,570)					80,690,699
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.4%
Non-Agency Fixed Rate CMBS – 1.7%
BANK Series 2020-BN25, Class XA 0.99%, 01/15/2063(q)			62,838		2,859,907
Bank of America Merrill Lynch Commercial Mortgage Trust Series 2016-UB10, Class C 4.987%, 07/15/2049			372		334,887
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.469%, 05/15/2052(q)			10,523		634,754
CD Mortgage Trust Series 2017-CD3, Class XA 1.116%, 02/10/2050(q)			13,758		384,583
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.767%, 05/10/2058(q)			12,299		443,868

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Citigroup Commercial Mortgage Trust Series 2013-GC15, Class C 5.333%, 09/10/2046	U.S.$		516	$	486,768
Commercial Mortgage Trust Series 2014-CR15, Class XA 0.756%, 02/10/2047(q)			29,980		85,068
Series 2015-CR27, Class XA 1.053%, 10/10/2048(q)			6,107		108,029
CSAIL Commercial Mortgage Trust Series 2019-C15, Class B 4.476%, 03/15/2052			960		856,378
GS Mortgage Securities Trust Series 2011-GC5, Class C 5.298%, 08/10/2044(e)			375		245,934
Series 2011-GC5, Class D 5.298%, 08/10/2044(e)			14,025		5,257,707
Series 2016-GS3, Class XA 1.319%, 10/10/2049(q)			29,761		933,213
Series 2019-GC39, Class XA 1.279%, 05/10/2052(q)			15,546		690,841
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047			1,599		1,458,188
Series 2014-C24, Class C 4.529%, 11/15/2047			5,869		3,961,701
JPMDB Commercial Mortgage Securities Trust Series 2019-COR6, Class XA 1.058%, 11/13/2052(q)			36,895		1,592,776
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9, Class E 3.902%, 12/15/2047(e)			7,500		6,173,989
Series 2012-LC9, Class G 3.902%, 12/15/2047(e)			831		565,011
Series 2016-JP2, Class XA 1.917%, 08/15/2049(q)			15,094		656,354
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			632		265,525
LCCM Series 2017-LC26, Class XA 1.685%, 07/12/2050(e)(q)			32,733		1,523,853

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9, Class D 4.156%, 05/15/2046(e)	U.S.$		680	$	532,103
Series 2014-C18, Class C 4.624%, 10/15/2047			4,408		4,117,382
Series 2015-C22, Class XA 1.14%, 04/15/2048(q)			11,218		145,008
UBS Commercial Mortgage Trust Series 2017-C1, Class XA 1.687%, 06/15/2050(q)			6,831		323,104
Series 2019-C16, Class XA 1.699%, 04/15/2052(q)			14,304		859,820
Series 2019-C18, Class XA 1.148%, 12/15/2052(q)			43,363		1,935,762
UBS-Barclays Commercial Mortgage Trust Series 2013-C5, Class B 3.649%, 03/10/2046(e)			1,044		956,637
Series 2013-C5, Class C 3.905%, 03/10/2046(e)			782		555,103
Wells Fargo Commercial Mortgage Trust Series 2015-LC20, Class XA 1.43%, 04/15/2050(q)			7,361		128,621
Series 2016-C36, Class XA 1.303%, 11/15/2059(q)			41,394		1,281,827
Series 2016-LC24, Class XA 1.749%, 10/15/2049(q)			26,288		1,101,399
Series 2016-LC25, Class XA 0.977%, 12/15/2059(q)			16,789		399,316
Series 2019-C52, Class XA 1.749%, 08/15/2052(q)			18,765		1,333,789
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class E 4.991%, 06/15/2044(e)			489		339,825
Series 2014-LC14, Class C 4.344%, 03/15/2047			134		127,221
					43,656,251
Non-Agency Floating Rate CMBS – 0.7%
BFLD Trust Series 2019-DPLO, Class E 7.245% (SOFR + 2.35%), 10/15/2034(e)(g)			11,227		11,000,477
DBWF Mortgage Trust Series 2018-GLKS, Class E 8.069% (LIBOR 1 Month + 3.12%), 12/19/2030(e)(g)			1,994		1,938,871

50    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Great Wolf Trust Series 2019-WOLF, Class D 6.938% (SOFR + 2.05%), 12/15/2036(e)(g)	U.S.$		5,005		$	4,878,856
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 9.198% (LIBOR 1 Month + 4.25%), 05/15/2036(e)(g)			1,651			1,511,682
						19,329,886
Agency CMBS – 0.0%				��
Government National Mortgage Association Series 2006-32, Class XM 0.13%, 11/16/2045(q)			90			1
Total Commercial Mortgage-Backed Securities (cost $77,669,999)						62,986,138
ASSET-BACKED SECURITIES – 1.8%
Other ABS - Fixed Rate – 1.3%
Affirm Asset Securitization Trust Series 2022-Z1, Class A 4.55%, 06/15/2027(e)	U.S.$		1,802			1,773,180
Series 2023-A, Class 1A 6.61%, 01/18/2028(e)			250			247,829
Series 2023-A, Class A 6.61%, 01/18/2028(e)			9,617			9,569,637
BHG Securitization Trust Series 2023-A, Class A 5.55%, 04/17/2036(e)			5,170			5,122,023
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.438%, 11/16/2043(n)			67			63,107
Series 2019-36, Class PT 12.926%, 10/17/2044(n)			233			226,321
Series 2019-43, Class PT (62.813)%, 11/15/2044(n)			1			882
Marlette Funding Trust Series 2019-2A, Class C 4.11%, 07/16/2029(e)			359			358,381
Series 2019-3A, Class C 3.79%, 09/17/2029(e)			513			512,167
Pagaya AI Debt Trust Series 2022-6, Class A 11.00%, 05/15/2030(e)			1,103			1,108,605

abfunds.com AB INCOME FUND    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2023-1, Class A2 7.556%, 07/15/2030(e)	U.S.$		3,754	$	3,750,729
Theorem Funding Trust Series 2022-1A, Class A 1.85%, 02/15/2028(e)			2,364		2,310,857
Series 2022-3A, Class A 7.60%, 04/15/2029(e)			7,536		7,586,929
					32,630,647
Autos - Fixed Rate – 0.5%
ACM Auto Trust Series 2023-1A, Class A 6.61%, 01/22/2030(e)			2,428		2,423,333
Flagship Credit Auto Trust Series 2019-4, Class E 4.11%, 03/15/2027(e)			2,970		2,773,544
Lendbuzz Securitization Trust Series 2023-1A, Class A2 6.92%, 08/15/2028(e)			6,260		6,270,668
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(e)			2,551		2,548,902
					14,016,447
Total Asset-Backed Securities (cost $46,983,272)					46,647,094
EMERGING MARKETS - SOVEREIGNS – 1.7%
Angola – 0.2%
Angolan Government International Bond 8.00%, 11/26/2029(e)			6,169		5,188,900
Dominican Republic – 0.4%
Dominican Republic International Bond 4.50%, 01/30/2030(e)			5,298		4,678,134
4.875%, 09/23/2032(e)			3,361		2,888,989
6.40%, 06/05/2049(e)			2,287		1,915,077
					9,482,200
Ecuador – 0.2%
Ecuador Government International Bond 1.50%, 07/31/2040(e)(h)			1,114		362,178
2.50%, 07/31/2035(e)(h)			13,986		5,107,436
5.50%, 07/31/2030(e)(h)			1,216		638,782
					6,108,396
El Salvador – 0.2%
El Salvador Government International Bond 7.125%, 01/20/2050(e)			235		113,946
7.625%, 02/01/2041(e)			158		77,815

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
8.625%, 02/28/2029(e)	U.S.$		7,640	$	4,423,560
					4,615,321
Ivory Coast – 0.1%
Ivory Coast Government International Bond 4.875%, 01/30/2032(e)	EUR		3,137		2,610,428
6.375%, 03/03/2028(e)	U.S.$		1,377		1,310,990
					3,921,418
Kenya – 0.1%
Republic of Kenya Government International Bond 7.00%, 05/22/2027(e)			1,680		1,342,740
Lebanon – 0.0%
Lebanon Government International Bond 6.65%, 04/22/2024(e)(j)(o)			507		29,248
6.85%, 03/23/2027(e)(j)(o)			1,053		60,087
Series G 6.60%, 11/27/2026(e)(j)(o)			1,284		73,268
					162,603
Nigeria – 0.1%
Nigeria Government International Bond 6.125%, 09/28/2028(e)			233		176,833
7.143%, 02/23/2030(e)			211		157,564
7.625%, 11/28/2047(e)			2,963		1,840,393
7.696%, 02/23/2038(e)			1,729		1,136,061
7.875%, 02/16/2032(e)			226		166,788
					3,477,639
Pakistan – 0.0%
Pakistan Government International Bond 7.375%, 04/08/2031(e)			750		251,859
Senegal – 0.3%
Senegal Government International Bond 6.25%, 05/23/2033(e)			5,158		4,048,385
6.75%, 03/13/2048(e)			6,453		4,302,538
					8,350,923
Ukraine – 0.1%
Ukraine Government International Bond 7.253%, 03/15/2035(e)(h)			4,689		759,911
7.375%, 09/25/2034(e)(h)			3,586		576,674
					1,336,585
Total Emerging Markets - Sovereigns (cost $67,702,608)					44,238,584

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
AGENCIES – 1.2%
Agency Debentures – 1.2%
Federal Home Loan Banks 5.50%, 07/15/2036	U.S.$		8,695	$	10,055,768
Federal Home Loan Mortgage Corp. 6.25%, 07/15/2032(a)			10,400		12,382,369
6.75%, 03/15/2031			4,000		4,825,807
Series GDIF 6.75%, 09/15/2029			4,606		5,378,298
Total Agencies (cost $34,710,882)					32,642,242
QUASI-SOVEREIGNS – 1.0%
Quasi-Sovereign Bonds – 1.0%
Chile – 0.0%
Corp. Nacional del Cobre de Chile 5.125%, 02/02/2033(e)			480		485,040
Hungary – 0.1%
Magyar Export-Import Bank Zrt 6.125%, 12/04/2027(e)			1,330		1,338,126
Indonesia – 0.1%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(e)			2,044		2,020,111
Kazakhstan – 0.1%
KazMunayGas National Co. JSC 5.375%, 04/24/2030(e)			3,400		3,116,066
Mexico – 0.5%
Comision Federal de Electricidad 4.688%, 05/15/2029(e)			4,031		3,628,656
Petroleos Mexicanos
5.95%, 01/28/2031			6,037		4,463,758
6.49%, 01/23/2027			1,455		1,302,225
6.75%, 09/21/2047			8,071		4,967,700
6.95%, 01/28/2060			3,090		1,871,767
					16,234,106
South Africa – 0.1%
Transnet SOC Ltd. 8.25%, 02/06/2028(e)			2,700		2,671,819
Ukraine – 0.1%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026(j)(n)(o)			2,168		455,009

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
State Agency of Roads of Ukraine 6.25%, 06/24/2030(h)(n)	U.S.$		7,856	$	1,260,888
					1,715,897
Total Quasi-Sovereigns (cost $39,282,238)					27,581,165
GOVERNMENTS - SOVEREIGN BONDS – 0.5%
Colombia – 0.3%
Colombia Government International Bond 3.125%, 04/15/2031			864		639,522
3.25%, 04/22/2032			8,612		6,207,637
					6,847,159
Panama – 0.2%
Panama Notas del Tesoro 3.75%, 04/17/2026			5,027		4,804,870
Peru – 0.0%
Peruvian Government International Bond 2.392%, 01/23/2026			247		233,075
Total Governments - Sovereign Bonds (cost $14,816,807)					11,885,104
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.3%
United States – 0.3%
Texas Transportation Commission State Highway Fund
Series 2010-B 5.178%, 04/01/2030			2,560		2,660,575
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The))
Series 2021 5.75%, 07/25/2041(e)			6,915		6,300,412
Total Local Governments - US Municipal Bonds (cost $9,475,000)					8,960,987
		Shares
COMMON STOCKS – 0.3%
Energy – 0.1%
Energy Equipment & Services – 0.0%
Diamond Offshore Drilling, Inc.(j)			22,730		261,168
Oil, Gas & Consumable Fuels – 0.1%
Berry Corp.			78,098		596,669
Civitas Resources, Inc.			5,127		354,019

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PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
Denbury, Inc.(j)		6,516	$	608,464
Golden Energy Offshore Services AS(j)		1,497,659		166,390
Nordic Aviation Capital DAC(i)(j)(l)		103,735		1,452,290
SandRidge Energy, Inc.(j)		105		1,488
				3,179,320
				3,440,488
Consumer Discretionary – 0.1%
Automobile Components – 0.0%
Energy Technology(i)(j)(l)		497		198,800
Broadline Retail – 0.1%
ATD New Holdings, Inc.(i)(j)		29,486		1,592,244
Diversified Consumer Services – 0.0%
Paysafe AG Tracker(i)(j)		61,303		– 0	–
Internet & Catalog Retail – 0.0%
GOLO Mobile, Inc.(i)(j)(l)		30,264		– 0	–
				1,791,044
Consumer Staples – 0.1%
Household Products – 0.1%
Southeastern Grocers, Inc.(i)(j)(l)		71,086		1,626,092
Communication Services – 0.0%
Diversified Telecommunication Services – 0.0%
Intelsat Emergence SA(i)(j)		46,202		1,146,410
Intelsat Jackson Holdings SA(i)(j)(l)		9,676		– 0	–
				1,146,410
Media – 0.0%
iHeartMedia, Inc. – Class A(j)		14,385		49,916
				1,196,326
Information Technology – 0.0%
IT Services – 0.0%
Paysafe Ltd.(j)		8,409		120,753
Software – 0.0%
Monitronics International, Inc.(j)		34,245		1,713
				122,466
Health Care – 0.0%
Pharmaceuticals – 0.0%
Mallinckrodt PLC(j)		5,739		33,516
Total Common Stocks (cost $12,957,777)				8,209,932

56    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Shares		U.S. $ Value
PREFERRED STOCKS – 0.1%
Industrial – 0.1%
Auto Components – 0.1%
Energy Technology 0.00%(i)(j)(l)			3,093	$	2,551,725
Energy – 0.0%
Gulfport Energy Corp. 10.00%(i)(j)			113		678,000
Total Preferred Stocks (cost $2,415,268)					3,229,725
WARRANTS – 0.0%
Athabasca Oil Corp., expiring 11/01/2026(i)(j) (cost $0)			3,771		7,021
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 1.2%
U.S. Treasury Bills – 0.9%
U.S. Treasury Bill Zero Coupon, 09/28/2023	U.S.$		5,148		5,044,522
Zero Coupon, 10/12/2023			19,000		18,578,475
Total U.S. Treasury Bills (cost $23,628,684)					23,622,997
		Shares
Investment Companies – 0.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(s)(t)(u) (cost $8,428,564)			8,428,564		8,428,564
Total Short-Term Investments (cost $32,057,248)					32,051,561
Total Investments – 143.3% (cost $3,964,991,013)					3,792,479,957
Other assets less liabilities – (43.3)%					(1,145,246,944	)
Net Assets – 100.0%				$	2,647,233,013

abfunds.com AB INCOME FUND    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
Long Gilt Futures		10		June 2023	$	1,275,099	$	10,119
U.S. Long Bond (CBT) Futures		958		June 2023		126,126,688		5,144,007
U.S. T-Note 2 Yr (CBT) Futures		53		June 2023		10,926,695		105,104
U.S. T-Note 10 Yr (CBT) Futures		737		June 2023		84,904,703		2,692,243
U.S. Ultra Bond (CBT) Futures		1,382		June 2023		195,423,438		6,046,045
Sold Contracts
Euro Buxl 30 Yr Bond Futures		13		June 2023		1,998,297		(96,848	)
Euro-BOBL Futures		16		June 2023		2,079,859		(49,557	)
Euro-Bund Futures		49		June 2023		7,319,308		(239,779	)
Euro-Schatz Futures		131		June 2023		15,254,076		(140,151	)
U.S. 10 Yr Ultra Futures		1,694		June 2023		205,741,594		(5,448,846	)
U.S. T-Note 5 Yr (CBT) Futures		2,149		June 2023		235,835,962		23,851
							$	8,046,188

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	EUR	28,533	USD	30,370		05/11/2023	$	(1,086,387	)
JPMorgan Chase Bank, NA	USD	3,298	EUR	3,080		05/11/2023		97,785
Morgan Stanley Capital Services, Inc.	CAD	210,271	USD	154,128		06/09/2023		(1,187,703	)
Morgan Stanley Capital Services, Inc.	USD	1,997	AUD	2,993		06/15/2023		(12,365	)
State Street Bank & Trust Co.	EUR	343	USD	375		05/11/2023		(3,015	)
State Street Bank & Trust Co.	USD	3,212	EUR	3,026		05/11/2023		124,442
State Street Bank & Trust Co.	USD	447	GBP	364		05/24/2023		10,532
UBS AG	USD	1,989	EUR	1,872		05/11/2023		74,513
							$	(1,982,198	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		5.00	%		Quarterly		4.65	%		USD    350	$	6,851	$	5,715	$	1,136

* Termination date

58    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%	USD	1,699	$	(350,680	)	$	(390,658	)	$	39,978
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	679		(140,201	)		(170,383	)		30,182
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	1,274		(263,039	)		(293,026	)		29,987
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	93		(19,164	)		(5,449	)		(13,715	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	368		(75,947	)		(38,685	)		(37,262	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	656		(135,359	)		(97,426	)		(37,933	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	572		(118,114	)		(47,110	)		(71,004	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	875		(180,596	)		(82,725	)		(97,871	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	1,127		(232,566	)		(105,863	)		(126,703	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	2,861		(590,569	)		(272,770	)		(317,799	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,469		(1,128,813	)		(508,922	)		(619,891	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,469		(1,128,813	)		(508,922	)		(619,891	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,167		(1,066,449	)		(415,002	)		(651,447	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,473		(1,129,640	)		(319,597	)		(810,043	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	218		(35,114	)		(8,032	)		(27,082	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	437		(70,351	)		(16,397	)		(53,954	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	1,092		(175,816	)		(40,216	)		(135,600	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	2,499		(402,538	)		(125,520	)		(277,018	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	5,767		(928,932	)		(170,496	)		(758,436	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	769		(158,627	)		(88,529	)		(70,098	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,276		(1,089,009	)		(593,130	)		(495,879	)
Goldman Sachs International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50		USD	9,112		(1,467,713	)		(371,258	)		(1,096,455	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	3,618		(746,833	)		(545,457	)		(201,376	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	2,456		(506,826	)		(265,535	)		(241,291	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,051		(1,042,591	)		(772,423	)		(270,168	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	1,717		(354,341	)		(100,749	)		(253,592	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	2,583		(533,166	)		(206,436	)		(326,730	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	5,461		(1,127,160	)		(572,817	)		(554,343	)

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PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00	%		Monthly		7.50	%	USD	113	$	(18,148	)	$	(4,302	)	$	(13,846	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50		USD	313		(64,608	)		(24,260	)		(40,348	)
											$	(15,281,723	)	$	(7,162,095	)	$	(8,119,628	)

* Termination date

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Currency		Principal Amount (000)		Interest Rate			Maturity		U.S. $ Value at April 30, 2023
Barclays Capital, Inc.†		USD		2,780		(2.00	)*		—	$	2,779,382
Barclays Capital, Inc.†		USD		1,523		(0.50	)*		—		1,522,119
Barclays Capital, Inc.†		USD		1,784		2.00			—		1,784,535
Barclays Capital, Inc.†		USD		1,110		3.25			—		1,107,678
HSBC Securities (USA), Inc.†		USD		12,506		4.60			—		12,533,166
HSBC Securities (USA), Inc.†		USD		271,036		4.65			—		237,269,864
HSBC Securities (USA), Inc.†		USD		34,765		4.94			—		35,156,184
HSBC Securities (USA), Inc.†		USD		28,669		4.94			—		28,668,750
JPMorgan Chase Bank†		USD		413,950		4.87			—		415,501,756
										$	736,323,434

* Interest payment due from counterparty.

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on April 30, 2023.

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

Government – Treasuries

$

716,596,554

$

– 0

–

$

– 0

–

$

– 0

–

$

716,596,554

Agencies

12,533,166

– 0

–

– 0

–

– 0

–

12,533,166

Corporates – Non-Investment Grade

6,086,036

– 0

–

– 0

–

– 0

–

6,086,036

Corporates – Investment Grade

1,107,678

– 0

–

– 0

–

– 0

–

1,107,678

Total

$

736,323,434

$

– 0

–

$

– 0

–

$

– 0

–

$

736,323,434

** Principal amount less than 500.

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

(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 centrally cleared swaps.

60    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(d) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts.

(e) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $865,926,444 or 32.7% of net assets.

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

(g) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

(h) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

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

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Fair valued by the Adviser.

(m) 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 April 30, 2023.

(n) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.27% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.438%, 11/16/2043		09/27/2018	$	67,221		$	63,107			0.00	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-36, Class PT 12.926%, 10/17/2044		09/04/2019		232,841			226,321			0.01	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT (62.813)%, 11/15/2044		10/09/2019		988			882			0.00	%
Digicel Group Holdings Ltd. 7.00%, 05/15/2023		06/21/2019		22,404			10,274			0.00	%
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024		10/26/2020		– 0	–		– 0	–		0.00	%
Exide Technologies (First Lien) 11.00%, 10/31/2024		06/21/2019		692,006			– 0	–		0.00	%
Home Re Ltd. Series 2019-1, Class B1 9.37%, 05/25/2029		12/20/2019		2,052,667			2,017,728			0.08	%
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 9.27%, 11/25/2024		11/06/2015		339,548			330,959			0.01	%

abfunds.com AB INCOME FUND    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value			Percentage of Net Assets
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 10.52%, 10/25/2025		09/18/2015	$	614,335	$	601,374			0.02	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		861,787		– 0	–		0.00	%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026		11/04/2019		2,168,000		455,009			0.02	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 8.368%, 02/27/2023		02/11/2020		1,780,512		1,720,160			0.07	%
State Agency of Roads of Ukraine 6.25%, 06/24/2030		06/17/2021		7,856,000		1,260,888			0.05	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018		289,000		277,056			0.01	%
Tonon Luxembourg SA 6.50%, 10/31/2024		01/16/2013		1,804,783		87			0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		06/19/2013		3,510,949		474			0.00	%
Virgolino de Oliveira Finance SA 10.875%, 01/13/2020		06/09/2014		745,965		75			0.00	%
Virgolino de Oliveira Finance SA 11.75%, 02/09/2022		01/29/2014		916,308		169			0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 10.27%, 11/25/2025		09/06/2016		224,883		208,536			0.01	%

(o) Defaulted.

(p) Inverse interest only security.

(q) IO – Interest Only.

(r) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the the PRIME/SOFR or the LIBOR/PRIME/SOFR floor rate plus a spread at April 30, 2023.

(s) Affiliated investments.

(t) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

USD – United States Dollar

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PORTFOLIO OF INVESTMENTS (continued)

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed

JSC – Joint Stock Company

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TBA – To Be Announced

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    63

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $3,956,562,449)	$	3,784,051,393
Affiliated issuers (cost $8,428,564)		8,428,564
Cash collateral due from broker		1,032,999
Foreign currencies, at value (cost $421,816)		423,708
Unaffiliated interest and dividends receivable		44,087,337
Receivable for investment securities sold		32,407,789
Receivable for capital stock sold		4,078,775
Receivable for variation margin on futures		2,181,927
Unrealized appreciation on forward currency exchange contracts		307,272
Affiliated dividends receivable		39,519
Receivable for variation margin on centrally cleared swaps		15,918
Other assets		103,843
Total assets		3,877,159,044
Liabilities
Due to custodian		2,487,410
Payable for reverse repurchase agreements		736,323,434
Payable for investment securities purchased		464,708,388
Market value on credit default swaps (net premiums received $7,162,095)		15,281,723
Payable for capital stock repurchased		5,757,525
Unrealized depreciation on forward currency exchange contracts		2,289,470
Dividends payable		924,769
Advisory fee payable		800,735
Foreign capital gains tax payable		355,807
Distribution fee payable		110,844
Transfer Agent fee payable		75,510
Administrative fee payable		29,206
Directors’ fees payable		5,963
Accrued expenses and other liabilities		775,247
Total liabilities		1,229,926,031
Net Assets	$	2,647,233,013
Composition of Net Assets
Capital stock, at par	$	405,943
Additional paid-in capital		3,403,537,041
Accumulated loss		(756,709,971	)
Net Assets	$	2,647,233,013

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

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	152,029,715		23,338,341	$	6.51	*
C	$	105,140,639		16,121,500	$	6.52
Advisor	$	2,367,899,042		363,083,904	$	6.52
Z	$	22,163,617		3,399,427	$	6.52

* The maximum offering price per share for Class A shares was $6.80 which reflects a sales charge of 4.25%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	86,640,206
Dividends
Affiliated issuers		279,717
Unaffiliated issuers		102,301		$	87,022,224
Expenses
Advisory fee (see Note B)		5,859,472
Distribution fee—Class A		194,690
Distribution fee—Class C		547,746
Transfer agency—Class A		76,183
Transfer agency—Class C		53,592
Transfer agency—Advisor Class		1,134,921
Transfer agency—Class Z		2,426
Custody and accounting		159,288
Printing		123,715
Audit and tax		76,565
Registration fees		58,130
Administrative		47,414
Legal		31,030
Directors’ fees		27,377
Miscellaneous		31,770
Total expenses before interest expense/bank overdraft		8,424,319
Interest expense/bank overdraft		11,328,382
Total expenses					19,752,701
Less: expenses waived and reimbursed by the Adviser (see Note B)		(877,496	)
Net expenses					18,875,205
Net investment income					68,147,019
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized loss on:
Investment transactions(a)					(33,954,434	)
Forward currency exchange contracts					(36,810	)
Futures					(27,662,584	)
Swaps					(166,030	)
Foreign currency transactions					(4,347,414	)
Net change in unrealized appreciation (depreciation) of:
Investments(b)					155,793,373
Forward currency exchange contracts					(832,195	)
Futures					49,038,792
Swaps					655,223
Foreign currency denominated assets and liabilities					221,054
Net gain on investment and foreign currency transactions					141,493,274
Net Increase in Net Assets from Operations				$	206,855,994

(a) Net of foreign realized capital gains taxes of $9,062.

(b) Net of increase in accrued foreign capital gains taxes on unrealized gains of $4,459.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    65

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	68,147,019		$	122,535,702
Net realized loss on investment and foreign currency transactions		(66,167,272	)		(537,822,684	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		204,876,247			(310,736,514	)
Net increase (decrease) in net assets from operations		206,855,994			(726,023,496	)
Distributions to Shareholders
Class A		(4,235,142	)		(7,242,847	)
Class C		(2,563,189	)		(4,015,362	)
Advisor Class		(66,180,084	)		(117,190,413	)
Class Z		(636,111	)		(938,821	)
Capital Stock Transactions
Net decrease		(116,196,834	)		(1,158,104,578	)
Total increase (decrease)		17,044,634			(2,013,515,517	)
Net Assets
Beginning of period		2,630,188,379			4,643,703,896
End of period	$	2,647,233,013		$	2,630,188,379

See notes to financial statements.

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STATEMENT OF CASH FLOWS

For the six months ended April 30, 2023 (unaudited)

Cash flows from operating activities
Net increase in net assets from operations				$	206,855,994
Reconciliation of net increase in net assets from operations to net increase in cash from operating activities
Purchases of long-term investments	$	(3,368,038,916	)
Purchases of short-term investments		(378,188,878	)
Proceeds from disposition of long-term investments		3,629,032,338
Proceeds from disposition of short-term investments		351,840,811
Net realized loss on investment transactions and foreign currency transactions		66,167,272
Net realized loss on forward currency exchange contracts		(36,810	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(204,876,247	)
Net accretion of bond discount and amortization of bond premium		766,217
Decrease in receivable for investments sold		184,452,819
Increase in interest receivable		(18,723,111	)
Increase in affiliated dividends receivable		(21,266	)
Increase in other assets		(146,150	)
Decrease in cash collateral due from broker		1
Decrease in payable for investments purchased		(187,548,720	)
Decrease in advisory fee payable		(217,613	)
Decrease in administrative fee payable		(3,486	)
Decrease in Foreign capital gains tax payable		(4,603	)
Increase in Transfer Agent fee payable		13,043
Decrease in distribution fee payable		(14,916	)
Increase in Directors’ fee payable		1,110
Increase in accrued expenses		50,744
Payments on swaps, net		(13,218,677	)
Proceeds for exchange-traded derivatives settlements, net		18,521,529
Total adjustments					79,806,491
Net cash provided by (used in) operating activities					286,662,485
Cash flows from financing activities
Redemptions of capital stock, net		(171,156,708	)
Increase in due to custodian		2,487,410
Cash dividends paid (net of dividend reinvestments)†		(21,606,306	)
Repayment of reverse repurchase agreements		(100,688,464	)
Net cash provided by (used in) financing activities					(290,964,068	)
Effect of exchange rate on cash					(4,126,360	)
Net decrease in cash					(8,427,943	)
Cash at beginning of period					8,851,651
Cash at end of period				$	423,708
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	51,813,519
Interest expense paid during the period	$	8,597,259

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 period.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    67

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 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 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 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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5

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NOTES TO FINANCIAL STATEMENTS (continued)

of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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.

abfunds.com AB INCOME FUND    ^|    69

NOTES TO FINANCIAL STATEMENTS (continued)

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., 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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.

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, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available,

abfunds.com AB INCOME FUND    ^|    71

NOTES TO FINANCIAL STATEMENTS (continued)

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 April 30, 2023:

Investments in Securities:	Level 1			Level 2			Level 3			Total
Assets:
Governments - Treasuries	$	– 0	–	$	1,824,128,961		$	– 0	–	$	1,824,128,961
Mortgage Pass-Throughs		– 0	–		534,024,846			– 0	–		534,024,846
Corporates - Investment Grade		– 0	–		491,517,747			– 0	–		491,517,747
Corporates - Non-Investment Grade		– 0	–		260,062,427			78,879	(a)		260,141,306
Collateralized Loan Obligations		– 0	–		133,429,859			– 0	–		133,429,859
Collateralized Mortgage Obligations		– 0	–		101,308,677			– 0	–		101,308,677
Emerging Markets - Corporate Bonds		– 0	–		88,797,591			718			88,798,309
Bank Loans		– 0	–		63,112,333			17,578,366			80,690,699
Commercial Mortgage-Backed Securities		– 0	–		62,986,138			– 0	–		62,986,138
Asset-Backed Securities		247,829			46,399,265			– 0	–		46,647,094
Emerging Markets - Sovereigns		– 0	–		44,238,584			– 0	–		44,238,584
Agencies		– 0	–		32,642,242			– 0	–		32,642,242
Quasi-Sovereigns		– 0	–		27,581,165			– 0	–		27,581,165
Governments - Sovereign Bonds		– 0	–		11,885,104			– 0	–		11,885,104
Local Governments - US Municipal Bonds		– 0	–		8,960,987			– 0	–		8,960,987
Common Stocks		2,194,096			– 0	–		6,015,836	(a)		8,209,932
Preferred Stocks		– 0	–		– 0	–		3,229,725			3,229,725
Warrants		– 0	–		– 0	–		7,021			7,021
Short-Term Investments:
U.S. Treasury Bills		– 0	–		23,622,997			– 0	–		23,622,997
Investment Companies		8,428,564			– 0	–		– 0	–		8,428,564
Total Investments in Securities		10,870,489			3,754,698,923			26,910,545	(a)		3,792,479,957

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Other Financial Instruments(b):
Assets:
Futures	$	14,021,369		$	– 0	–	$	– 0	–	$	14,021,369	(c)
Forward Currency Exchange Contracts		– 0	–		307,272			– 0	–		307,272
Centrally Cleared Credit Default Swaps		– 0	–		6,851			– 0	–		6,851	(c)
Liabilities:
Futures		(5,975,181	)		– 0	–		– 0	–		(5,975,181	)(c)
Forward Currency Exchange Contracts		– 0	–		(2,289,470	)		– 0	–		(2,289,470	)
Credit Default Swaps		– 0	–		(15,281,723	)		– 0	–		(15,281,723	)
Reverse Repurchase Agreements		(736,323,434	)		– 0	–		– 0	–		(736,323,434	)
Total	$	(717,406,757	)	$	3,737,441,853		$	26,910,545	(a)	$	3,046,945,641

(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.

	Corporates - Non-Investment Grade			Emerging Markets - Corporate Bonds			Bank Loans
Balance as of 10/31/2022	$	4,804,847		$	718		$	14,042,134
Accrued discounts (premiums)		– 0	–		– 0	–		21,510
Realized gain (loss)		– 0	–		– 0	–		(493,889	)
Change in unrealized appreciation (depreciation)		– 0	–		– 0	–		2,075,147
Purchases		– 0	–		– 0	–		– 0	–
Sales/Paydowns		– 0	–		– 0	–		(10,431,356	)
Transfers in to Level 3		– 0	–		– 0	–		16,200,120
Transfers out of Level 3		(4,725,968	)		– 0	–		(3,835,300	)
Balance as of 04/30/2023	$	78,879		$	718		$	17,578,366
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/2023(a)	$	– 0	–	$	– 0	–	$	1,017,147

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	Asset- Backed Securities			Common Stocks			Preferred Stocks
Balance as of 10/31/2022	$	104,762		$	3,555,651		$	2,224,500
Accrued discounts/(premiums)		– 0	–		– 0	–		– 0	–
Realized gain (loss)		(34,727	)		10,376			(1,472	)
Change in unrealized appreciation (depreciation)		(70,035	)		(803,114	)		1,006,780
Purchases		– 0	–		– 0	–		– 0	–
Sales/Paydowns		– 0	–		(10,376	)		(83	)
Transfers in to Level 3		– 0	–		3,263,299			– 0	–
Transfers out of Level 3		– 0	–		– 0	–		– 0	–
Balance as of 04/30/2023	$	– 0	–	$	6,015,836		$	3,229,725
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/2023(a)	$	– 0	–	$	(803,114	)	$	1,006,780
	Warrants#			Total
Balance as of 10/31/2022	$	– 0	–	$	24,732,612
Accrued discounts/(premiums)		– 0	–		21,510
Realized gain (loss)		– 0	–		(519,712	)
Change in unrealized appreciation (depreciation)		7,021			2,215,799
Purchases		– 0	–		– 0	–
Sales/Paydowns		– 0	–		(10,441,815	)
Transfers in to Level 3		– 0	–		19,463,419
Transfers out of Level 3		– 0	–		(8,561,268	)
Balance as of 04/30/2023	$	7,021		$	26,910,545
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/2023(a)	$	7,021		$	1,227,834

# The Fund held a security with zero market value that was sold/expired/written off during the reporting period.

(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.

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The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at April 30, 2023. Securities priced (i) by third party vendors, (ii) by brokers or (iii) using prior transaction prices, which approximates fair value, are excluded from the following table:

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 04/30/2023		Valuation Technique	Unobservable Input	Input
Common Stocks	$	2,750,525	Guideline Public Company and Optional Value	Volatility	$400.00 - $825.00
Corporates – Non-Investment Grade	$	78,879	Recovery	Discount Rate	$ 0.20

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 Rate and Volatility 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.

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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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company. Certain prior year amounts have been reclassified to conform to current year presentation.

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

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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 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%, .52%, and .52% of daily average net assets for Class A, Class C, Advisor Class, and Class Z shares, respectively. For the six months ended April 30, 2023, such reimbursement/waivers amounted to $870,767. The Expense Caps may not be terminated by the Adviser before January 31, 2024.

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 six months ended April 30, 2023, the reimbursement for such services amounted to $47,414.

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 $288,447 for the six months ended April 30, 2023.

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 $2,492 from the sale of Class A shares and received $11 and $2,273 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

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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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $6,729.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	5,642	$	343,873	$	341,086	$	8,429	$	280

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 .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 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 amount of $1,081,331 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.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	277,564,855	$	275,836,691
U.S. government securities		3,090,046,136		3,320,031,740

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	68,294,928
Gross unrealized depreciation		(242,860,486	)
Net unrealized depreciation	$	(174,565,558	)

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 for non-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

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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 six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-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 six months ended April 30, 2023, the Fund held forward currency exchange contracts for 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 for non-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 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

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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 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 the 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 six months ended April 30, 2023, the Fund held interest rate swaps for hedging and non-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 the 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

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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 six months ended April 30, 2023, 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.

During the six months ended April 30, 2023, 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 for variation margin on futures	$	14,021,369	*	Payable for variation margin on futures	$	5,975,181	*
Credit contracts	Receivable for variation margin on centrally cleared swaps		1,136	*

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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	$	307,272	Unrealized depreciation on forward currency exchange contracts	$	2,289,470
Credit contracts				Market value on credit default swaps		15,281,723
Total		$	14,329,777		$	23,546,374

* 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	$	(27,662,584	)	$	49,038,792
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		(36,810	)		(832,195	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		4,997,432			(6,421,934	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(5,163,462	)		7,077,157
Total		$	(27,865,424	)	$	48,861,820

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The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Futures:
Average notional amount of buy contracts	$	727,109,520
Average notional amount of sale contracts	$	586,941,363
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	6,924,042
Average principal amount of sale contracts	$	187,536,360
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	197,304,167	(a)
Credit Default Swaps:
Average notional amount of sale contracts	$	102,928,003
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	15,424,144	(a)

(a) Positions were open for five 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 April 30, 2023. 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
JPMorgan Chase Bank/JPMorgan Securities, LLC	$	97,785	$	(97,785	)	$	– 0	–	$	– 0	–	$	– 0	–
State Street Bank & Trust Co.		134,974		(3,015	)		– 0	–		– 0	–		131,959
UBS AG		74,513		– 0	–		– 0	–		– 0	–		74,513
Total	$	307,272	$	(100,800	)	$	– 0	–	$	– 0	–	$	206,472	^

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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
Bank of America, NA	$	1,086,387	$	– 0	–	$	– 0	–	$	– 0	–	$	1,086,387
Citigroup Global Markets, Inc.		6,559,950		– 0	–		(373,000	)		(6,186,950	)		– 0	–
Credit Suisse International		2,860,387		– 0	–		– 0	–		(2,860,387	)		– 0	–
Goldman Sachs International		3,763,963		– 0	–		(660,000	)		(3,103,963	)		– 0	–
JPMorgan Chase Bank/JPMorgan Securities, LLC		2,014,667		(97,785	)		– 0	–		(1,916,882	)		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services, Inc.		1,282,824		– 0	–		– 0	–		(162,125	)		1,120,699
State Street Bank & Trust Co.		3,015		(3,015	)		– 0	–		– 0	–		– 0	–
Total	$	17,571,193	$	(100,800	)	$	(1,033,000	)	$	(14,230,307	)	$	2,207,086	^

* 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 in non-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

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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 six months ended April 30, 2023, the Fund earned drop income of $606,790 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/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 six months ended April 30, 2023, the average amount of reverse repurchase agreements outstanding was $728,212,224 and the daily weighted average interest rate was 3.08%. At April 30, 2023, the Fund had reverse repurchase agreements outstanding in the amount of $736,323,434 as reported on the statement of assets and liabilities.

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The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of April 30, 2023:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
Barclays Capital, Inc.		7,193,714		(5,920,546	)		1,273,168
HSBC Securities (USA), Inc.		313,627,964		(287,625,652	)		26,002,312
JPMorgan Chase Bank		415,501,756		(415,501,756	)		– 0	–
Total	$	736,323,434	$	(709,047,954	)	$	27,275,480

† 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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		2,026,729			5,504,143		$	13,159,884		$	39,565,166
Shares issued in reinvestment of dividends		468,429			683,436			3,037,202			4,848,123
Shares converted from Class C		241,657			150,661			1,552,848			1,067,762
Shares redeemed		(5,212,765	)		(14,232,001	)		(33,762,728	)		(100,905,810	)
Net decrease		(2,475,950	)		(7,893,761	)	$	(16,012,794	)	$	(55,424,759	)
Class C
Shares sold		913,247			737,142		$	5,943,499		$	5,442,290
Shares issued in reinvestment of dividends		270,277			367,071			1,754,035			2,605,062
Shares converted to Class A		(241,457	)		(150,476	)		(1,552,848	)		(1,067,762	)
Shares redeemed		(3,202,317	)		(7,173,549	)		(20,688,771	)		(51,179,390	)
Net decrease		(2,260,250	)		(6,219,812	)	$	(14,544,085	)	$	(44,199,800	)
Advisor Class
Shares sold		72,791,612			125,018,791		$	473,005,432		$	895,171,374
Shares issued in reinvestment of dividends		7,160,920			10,905,106			46,470,886			77,665,707
Shares redeemed		(93,484,888	)		(285,020,744	)		(605,125,855	)		(2,028,413,744	)
Net decrease		(13,532,356	)		(149,096,847	)	$	(85,649,537	)	$	(1,055,576,663	)

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	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class Z
Shares sold		852,819			987,963		$	5,477,163		$	6,992,661
Shares issued in reinvestment of dividends		85,021			106,789			551,396			757,805
Shares redeemed		(930,282	)		(1,516,427	)		(6,018,977	)		(10,653,822	)
Net increase (decrease)		7,558			(421,675	)	$	9,582		$	(2,903,356	)

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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 and negative perceptions of the junk bond market generally and may be more difficult to trade 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

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longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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 of non-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 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 are being 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 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.

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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. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in

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different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	129,387,443	$	166,350,736
Total taxable distributions paid	$	129,387,443	$	166,350,736

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	1,322,646
Accumulated capital and other losses		(557,600,583	)(a)
Unrealized appreciation (depreciation)		(319,324,058	)(b)
Total accumulated earnings (deficit)	$	(875,601,995	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $557,599,853. As of October 31, 2022, the cumulative deferred loss on straddles was $730.

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(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 callable bonds, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

(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, 2022, the Fund had a net short-term capital loss carryforward of $187,331,997 and a net long-term capital loss carryforward of $370,267,856 which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
		��
Net asset value, beginning of period		$  6.19			$  7.89			$  7.96			$  7.98			$  7.49			$  8.09
Income From Investment Operations
Net investment income(a)(b)		.16			.23			.24			.26			.31			.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.34			(1.69	)		(.04	)		.02	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.50			(1.46	)		.20			.28			.84			(.21	)
Less: Dividends and Distributions
Dividends from net investment income		(.18	)		(.24	)		(.27	)		(.30	)		(.30	)		(.36	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.05	)		(.03	)
Total dividends and distributions		(.18	)		(.24	)		(.27	)		(.30	)		(.35	)		(.39	)
Net asset value, end of period		$  6.51			$  6.19			$  7.89			$  7.96			$  7.98			$  7.49
Total Return
Total investment return based on net asset value(e)*		8.21	%		(18.83	)%		2.48	%		3.55	%		11.50	%		(2.71	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$152,030			$159,887			$265,990			$289,619			$240,567			$232,931
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.64	%^		1.04	%		.79	%		.78	%		.77	%		1.08	%
Expenses, before waivers/reimbursements(f)		1.71	%^		1.08	%		.80	%		.80	%		.83	%		1.16	%
Net investment income(b)		5.02	%^		3.15	%		3.04	%		3.24	%		4.02	%		3.73	%
Portfolio turnover rate**		89	%		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 100.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  6.20			$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Income From Investment Operations
Net investment income(a)(b)		.14			.17			.18			.20			.25			.23
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.33			(1.68	)		(.04	)		.02	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.47			(1.51	)		.14			.22			.78			(.27	)
Less: Dividends and Distributions
Dividends from net investment income		(.15	)		(.19	)		(.21	)		(.24	)		(.25	)		(.30	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.04	)		(.03	)
Total dividends and distributions		(.15	)		(.19	)		(.21	)		(.24	)		(.29	)		(.33	)
Net asset value, end of period		$  6.52			$  6.20			$  7.90			$  7.97			$  7.99			$  7.50
Total Return
Total investment return based on net asset value(e)*		7.63	%		(19.41	)%		1.71	%		2.77	%		10.65	%		(3.43	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$105,141			$113,982			$194,363			$217,968			$164,413			$82,283
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		2.39	%^		1.79	%		1.54	%		1.53	%		1.52	%		1.83	%
Expenses, before waivers/reimbursements(f)		2.46	%^		1.82	%		1.55	%		1.55	%		1.57	%		1.92	%
Net investment income(b)		4.26	%^		2.39	%		2.29	%		2.49	%		3.21	%		2.98	%
Portfolio turnover rate**		89	%		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 100.

abfunds.com AB INCOME FUND    ^|    97

FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  6.20			$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Income From Investment Operations
Net investment income(a)(b)		.17			.24			.26			.27			.33			.31
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.33			(1.68	)		(.04	)		.03	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.50			(1.44	)		.22			.30			.86			(.19	)
Less: Dividends and Distributions
Dividends from net investment income		(.18	)		(.26	)		(.29	)		(.32	)		(.31	)		(.38	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.06	)		(.03	)
Total dividends and distributions		(.18	)		(.26	)		(.29	)		(.32	)		(.37	)		(.41	)
Net asset value, end of period		$  6.52			$  6.20			$  7.90			$  7.97			$  7.99			$  7.50
Total Return
Total investment return based on:
Net asset value(e)*		8.17	%		(18.60	)%		2.73	%		3.80	%		11.76	%		(2.46	)%
Ratios/Supplemental Data
Net assets, end of period (000,000’s omitted)		$2,367			$2,334			$4,152			$4,097			$3,562			$2,222
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.38	%^		.79	%		.54	%		.53	%		.52	%		.83	%
Expenses, before waivers/reimbursements(f)		1.45	%^		.82	%		.55	%		.55	%		.58	%		.91	%
Net investment income(b)		5.26	%^		3.38	%		3.28	%		3.48	%		4.24	%		3.98	%
Portfolio turnover rate**		89	%		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 100.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class Z
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,						November 20, 2019(g) to October 31, 2020
				2022			2021
Net asset value, beginning of period		$  6.20			$  7.90			$  7.97			$  7.97
Income From Investment Operations
Net investment income(a)(b)		.17			.25			.27			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.33			(1.69	)		(.05	)		.03	(c)
Net increase (decrease) in net asset value from operations		.50			(1.44	)		.22			.30
Less: Dividends
Dividends from net investment income		(.18	)		(.26	)		(.29	)		(.30	)
Net asset value, end of period		$  6.52			$  6.20			$  7.90			$  7.97
Total Return
Total investment return based on net asset value(e)*		8.17	%		(18.57	)%		2.78	%		3.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$22,164			$21,026			$30,118			$18,492
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.38	%^		.78	%		.49	%		.48	%^
Expenses, before waivers/reimbursements(f)		1.38	%^		.78	%		.49	%		.48	%^
Net investment income(b)		5.28	%^		3.44	%		3.32	%		3.49	%^
Portfolio turnover rate**		89	%		167	%		166	%		246	%

See footnote summary on page 100.

abfunds.com AB INCOME FUND    ^|    99

(a) Based on average shares outstanding.

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

(c) 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.

(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, excluding interest expense are:

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.77	%^		.77	%		.77	%		.77	%		.77	%		.77	%
Before waivers/reimbursements		.84	%^		.80	%		.78	%		.79	%		.82	%		.85	%
Class C
Net of waivers/reimbursements		1.52	%^		1.52	%		1.52	%		1.52	%		1.52	%		1.52	%
Before waivers/reimbursements		1.59	%^		1.55	%		1.53	%		1.54	%		1.57	%		1.60	%
Advisor Class
Net of waivers/reimbursements		.52	%^		.52	%		.52	%		.52	%		.52	%		.52	%
Before waivers/reimbursements		.59	%^		.55	%		.53	%		.54	%		.57	%		.60	%
Class Z
Net of waivers/reimbursements		.51	%^		.49	%		.47	%		.46	%		N/A			N/A
Before waivers/reimbursements		.51	%^		.49	%		.47	%		.46	%		N/A			N/A

(f) Amount is less than $.005.

(g) Commencement of distributions.

* Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .04% for the year ended October 31, 2021.

** The Fund accounts for dollar roll transactions as purchases and sales.

^ Annualized.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾, Vice President Fahd Malik⁽²⁾, Vice President Matthew S. Sheridan⁽²⁾, Vice President William Smith⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller
Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West
New York, NY 10001   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. Investment Grade: Core Fixed Income Investment Team. Messrs. DiMaggio, Distenfeld, Malik, Smith and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

abfunds.com AB INCOME FUND    ^|    101

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB INCOME FUND    ^|    103

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 in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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 at the request of the directors. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s

abfunds.com AB INCOME FUND    ^|    105

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 the 1-, 3- and 5-year periods ended July 31, 2022 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. The directors determined to continue to monitor the Fund’s performance closely.

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 noted that it was equal to the median. The directors 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 utilize investment strategies similar to those of 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

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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 higher than a breakpoint level. Accordingly, the Fund’s current effective advisory fee rate reflected a reduction due to the breakpoint and would be further reduced to the extent the net assets of the Fund increase. 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 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 breakpoint arrangements were acceptable and provide a means for sharing any economies of scale.

abfunds.com AB INCOME FUND    ^|    107

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

108    ^|    AB INCOME FUND abfunds.com

AB INCOME FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IF-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB MUNICIPAL BOND INFLATION STRATEGY

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    1

SEMI-ANNUAL REPORT

June 13, 2023

This report provides management’s discussion of fund performance for the AB Municipal Bond Inflation Strategy for the semi-annual period ended April 30, 2023.

The Fund’s investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal.

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB MUNICIPAL BOND INFLATION STRATEGY
Class 1 Shares1		4.75%		0.48%
Class 2 Shares1		4.79%		0.58%
Class A Shares		4.70%		0.36%
Class C Shares		4.32%		-0.39%
Advisor Class Shares2		4.83%		0.62%
Bloomberg 1-10 Year TIPS Index		3.70%		-1.82%

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 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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Bloomberg 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended April 30, 2023.

During both periods, all share classes of the Fund outperformed the benchmark, before sales charges. The Fund’s municipal exposure, including an overweight to municipal credit, contributed, relative to the benchmark, for the six-month period, and detracted for the 12-month period. The use of Consumer Price Index (“CPI”) swaps, a more tax-efficient way of achieving inflation protection, modestly contributed to performance.

During both periods, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes, which had no material impact on absolute performance, while interest rate swaps were used for hedging purposes and added to returns. CPI swaps were used for hedging purposes, which detracted for the six-month period and added for the 12-month period.

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MARKET REVIEW AND INVESTMENT STRATEGY

Over the six-month period ended April 30, 2023, the yield on a 10-Year AAA municipal bond fell to 2.35% from 3.34%. The yield on the 10-Year US Treasury fell to 3.44% from 4.06%. After-tax spreads compressed, indicating municipal outperformance over Treasuries, which was largely driven by an improved technical environment toward the end of the period. Credit spreads gyrated in a range-bound pattern throughout the six-month period as concerns over the health of the banking system and the debt ceiling kept volatility elevated.

The Fund’s Senior Investment Management Team (the “Team”) continues to focus on real after-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 into 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 April 30, 2023, 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 were 2.32% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund seeks real after-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

(continued on next page)

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    3

securities rated A or better or the equivalent by one or more nationally recognized statistical rating organizations (or deemed to be of comparable credit quality by the Adviser). The Fund may invest up to 20% of its total assets in below investment-grade fixed-income securities (“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 (“TOB”) transactions. The Adviser considers the impact of TOB transactions, 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 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 1-10 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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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, public health crises, uncertainties related to the tax status of municipal securities, and 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, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS (continued)

worsen, adversely affecting the performance of the Fund. 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.

In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets.

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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk: To the extent the Fund uses leveraging techniques, such as TOB transactions, its net asset value (“NAV”) may be more volatile

6    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS (continued)

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 are or become more 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. 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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund 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 3.00% maximum front-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

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns			SEC Returns (reflects applicable sales charges)			SEC Yields1			Taxable Equivalent Yields2
CLASS 1 SHARES3								3.04	%		4.68	%
1 Year		0.48	%		0.48	%
5 Years		2.95	%		2.95	%
10 Years		1.77	%		1.77	%
CLASS 2 SHARES3								3.14	%		4.83	%
1 Year		0.58	%		0.58	%
5 Years		3.05	%		3.05	%
10 Years		1.87	%		1.87	%
CLASS A SHARES								2.75	%		4.23	%
1 Year		0.36	%		-2.62	%
5 Years		2.80	%		2.18	%
10 Years		1.62	%		1.31	%
CLASS C SHARES								2.08	%		3.20	%
1 Year		-0.39	%		-1.37	%
5 Years		2.03	%		2.03	%
10 Years4		0.87	%		0.87	%
ADVISOR CLASS SHARES5								3.09	%		4.75	%
1 Year		0.62	%		0.62	%
5 Years		3.05	%		3.05	%
10 Years		1.88	%		1.88	%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.64%, 0.55%, 0.82%, 1.58% and 0.58% 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 limited the Fund’s total annual operating expense ratios (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) 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, 2024, and may be extended by the Adviser for additional one-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 the 30-day period ended April 30, 2023.

2 Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable.

3 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 carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

4 Assumes conversion of Class C shares into Class A shares after eight years.

5 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.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-0.25%
5 Years		3.07%
10 Years		1.86%
CLASS 2 SHARES1
1 Year		-0.25%
5 Years		3.17%
10 Years		1.95%
CLASS A SHARES
1 Year		-3.46%
5 Years		2.26%
10 Years		1.38%
CLASS C SHARES
1 Year		-2.17%
5 Years		2.14%
10 Years2		0.95%
ADVISOR CLASS SHARES3
1 Year		-0.20%
5 Years		3.18%
10 Years		1.96%

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 Assumes conversion of Class C shares into Class A shares after eight years.

3 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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    9

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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,047.00	$	3.86		0.76	%
Hypothetical**	$	1,000	$	1,021.03	$	3.81		0.76	%
Class C
Actual	$	1,000	$	1,043.20	$	7.65		1.51	%
Hypothetical**	$	1,000	$	1,017.31	$	7.55		1.51	%
Advisor Class
Actual	$	1,000	$	1,048.30	$	2.59		0.51	%
Hypothetical**	$	1,000	$	1,022.27	$	2.56		0.51	%
Class 1
Actual	$	1,000	$	1,047.50	$	3.10		0.61	%
Hypothetical**	$	1,000	$	1,021.77	$	3.06		0.61	%
Class 2
Actual	$	1,000	$	1,047.90	$	2.59		0.51	%
Hypothetical**	$	1,000	$	1,022.27	$	2.56		0.51	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    11

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,911.8

1 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-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 of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

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PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 92.0%
Long-Term Municipal Bonds – 90.2%
Alabama – 2.6%
Alabama Special Care Facilities Financing Authority-Birmingham AL (Children's Hospital of Alabama Obligated Group (The)) Series 2015 5.00%, 06/01/2028	$	3,905	$	4,085,342
Black Belt Energy Gas District (Goldman Sachs Group, Inc. (The)) Series 2021 4.00%, 10/01/2052		5,000		4,985,514
Black Belt Energy Gas District (Royal Bank of Canada) Series 2021 4.00%, 06/01/2051		10,945		10,981,753
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016 5.00%, 02/01/2025		2,110		2,156,406
Series 2021 4.00%, 02/01/2039		1,675		1,612,210
Southeast Energy Authority A Cooperative District (Morgan Stanley) Series 2021-B 4.00%, 12/01/2051		18,485		18,334,615
Southeast Energy Authority A Cooperative District (Sumitomo Mitsui Financial Group, Inc.) Series 2023-A 5.25%, 01/01/2054		3,000		3,191,773
Sumter County Industrial Development Authority/AL (Enviva, Inc.) Series 2022 6.00%, 07/15/2052		3,770		3,393,777
				48,741,390
American Samoa – 0.1%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2015-A 6.625%, 09/01/2035		1,335		1,397,724

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    13

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2018 6.50%, 09/01/2028(a)	$	295	$	315,388
7.125%, 09/01/2038(a)		280		308,982
				2,022,094
Arizona – 1.7%
Arizona Industrial Development Authority (Equitable School Revolving Fund LLC Obligated Group) Series 2020 4.00%, 11/01/2030		935		960,346
5.00%, 11/01/2031		800		876,792
5.00%, 11/01/2032		650		709,930
5.00%, 11/01/2033		900		981,392
Arizona Industrial Development Authority (Kipp NYC Public Charter Schools) Series 2021-B 4.00%, 07/01/2041		500		443,609
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 6.50%, 07/01/2026(a)(b)(c)		1,000		650,000
6.75%, 07/01/2030(a)(b)(c)		1,000		650,000
Arizona Industrial Development Authority (Phoenix Children's Hospital Obligated Group) Series 2021 4.00%, 02/01/2039		1,800		1,802,500
5.00%, 02/01/2026		1,200		1,263,745
Chandler Industrial Development Authority (Intel Corp.) Series 2022 5.00%, 09/01/2052		5,000		5,209,642
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.542%, 07/01/2033		4,000		3,256,134
City of Phoenix Civic Improvement Corp. (Phoenix Sky Harbor International Airport) Series 2017-A 5.00%, 07/01/2029		3,945		4,204,446
City of Tempe AZ (City of Tempe AZ COP) Series 2021 1.951%, 07/01/2031		2,400		1,951,361
County of Pima AZ Sewer System Revenue Series 2016 5.00%, 07/01/2023		1,000		1,002,889

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Industrial Development Authority of the County of Pima (The) (La Posada at Park Centre, Inc. Obligated Group) Series 2022 5.125%, 11/15/2029(a)	$	2,000	$	1,977,575
State of Arizona Lottery Revenue Series 2019 5.00%, 07/01/2028 (Pre-refunded/ETM)		5,000		5,613,161
				31,553,522
Arkansas – 0.1%
City of Fayetteville AR Sales & Use Tax Revenue Series 2022 2.875%, 11/01/2032		1,000		982,825
California – 9.0%
California Community Choice Financing Authority (Deutsche Bank AG) Series 2023 5.25%, 01/01/2054		6,825		7,125,222
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021-A 4.00%, 08/01/2047(a)		3,315		2,536,047
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 4.00%, 08/01/2046(a)		1,000		801,104
California Infrastructure & Economic Development Bank (DesertXpress Enterprises LLC) Series 2023 3.65%, 01/01/2050(a)		10,500		10,476,788
7.75%, 01/01/2050(a)		1,250		1,245,426
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) Series 2019 7.50%, 12/01/2040(a)		250		167,897

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California State Public Works Board (State of California Department of Corrections & Rehabilitation Lease) Series 2018 5.00%, 05/01/2029	$	2,995	$	3,354,247
California State University Series 2021-B 2.374%, 11/01/2035		1,000		789,039
City & County of San Francisco CA Series 2022-R 5.00%, 06/15/2023		4,250		4,259,520
City of Los Angeles Department of Airports Series 2019 5.00%, 05/15/2027		1,410		1,507,438
5.00%, 05/15/2039		1,000		1,058,067
Series 2021 5.00%, 05/15/2035		4,000		4,448,024
CMFA Special Finance Agency VII (CMFA Special Finance Agency VII The Breakwater Apartments) Series 2021 4.00%, 08/01/2047(a)		995		764,401
Contra Costa CA Community College District Series 2013 5.00%, 08/01/2038 (Pre-refunded/ETM)		3,250		3,264,431
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 777 Place-Pomona) Series 2021 3.60%, 05/01/2047(a)		6,500		5,121,120
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2046(a)		2,000		1,518,837
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 3.50%, 10/01/2046(a)		2,000		1,502,685
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(a)		1,500		1,024,293

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Millennium South Bay-Hawthorne) Series 2021 3.375%, 07/01/2043(a)	$	3,200	$	2,530,156
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Theo Apartments) Series 2021 3.50%, 05/01/2047(a)		2,300		1,831,901
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A 3.10%, 07/01/2045(a)		1,000		759,358
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 4.00%, 10/01/2048(a)		2,000		1,440,603
Pajaro Valley Unified School District Series 2013-A 5.00%, 08/01/2038 (Pre-refunded/ETM)		1,700		1,707,549
Riverside County Transportation Commission Series 2013-A 5.75%, 06/01/2048 (Pre-refunded/ETM)		7,000		7,014,054
Sacramento County Water Financing Authority (Sacramento County Water Agency) NATL Series 2007-B 3.895% (LIBOR 3 Month + 0.57%), 06/01/2039(d)		5,000		4,413,281
San Diego County Regional Airport Authority Series 2021-B 4.00%, 07/01/2035		3,100		3,144,924
4.00%, 07/01/2036		8,395		8,460,206
4.00%, 07/01/2039		7,075		6,885,237
4.00%, 07/01/2040		8,655		8,382,635
4.00%, 07/01/2041		3,325		3,192,725
5.00%, 07/01/2030		2,785		3,082,170
San Francisco Intl Airport Series 2019-H 5.00%, 05/01/2025		5,480		5,647,765
Series 2021-A 5.00%, 05/01/2031		3,275		3,659,755
5.00%, 05/01/2036		5,960		6,506,549

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
San Joaquin Hills Transportation Corridor Agency Series 2021 5.00%, 01/15/2033	$	5,000	$	5,642,137
State of California Series 2014 5.00%, 05/01/2025		2,960		3,016,811
Series 2021 4.00%, 10/01/2023		10,000		10,039,931
4.00%, 12/01/2024		2,655		2,702,001
4.00%, 10/01/2034		2,690		2,893,391
4.00%, 10/01/2035		2,935		3,129,065
5.00%, 09/01/2023		6,000		6,038,251
5.00%, 10/01/2024		3,590		3,693,838
Series 2023 5.10%, 03/01/2029		1,200		1,250,376
University of California Series 2013-A 5.00%, 05/15/2048 (Pre-refunded/ETM)		3,000		3,001,894
Series 2022-S 5.00%, 05/15/2024		6,000		6,124,624
5.00%, 05/15/2025		4,000		4,185,454
				171,341,227
Colorado – 2.6%
Arapahoe County School District No. 5 Cherry Creek (Arapahoe County School District No 5 Cherry Creek COP) Series 2022 4.00%, 12/15/2038		2,655		2,719,062
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/2029(a)		1,510		1,487,821
City & County of Denver CO Airport System Revenue (Denver Intl Airport) Series 2018-A 5.00%, 12/01/2029		6,555		7,113,514
City & County of Denver Co. Airport System Revenue (Denver Intl Airport) Series 2018-A 5.00%, 12/01/2026		1,700		1,790,415
5.00%, 12/01/2028		10,000		10,885,868

18    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Health Facilities Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2041	$	2,600	$	2,869,883
Colorado Health Facilities Authority (CommonSpirit Health Obligated Group) Series 2019-A 5.00%, 08/01/2030		1,015		1,109,607
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019-A 5.00%, 08/01/2032		640		693,716
5.00%, 08/01/2033		750		809,583
Colorado Health Facilities Authority (Intermountain Healthcare Obligated Group) Series 2019-B 4.00%, 01/01/2040		1,445		1,447,458
Colorado Health Facilities Authority (Sanford Obligated Group) Series 2019-A 5.00%, 11/01/2033		1,525		1,684,670
Denver City & County School District No. 1 Series 2014-B 5.00%, 12/01/2023		4,730		4,781,777
E-470 Public Highway Authority Series 2021-B 3.573% (SOFR + 0.35%), 09/01/2039(d)		2,000		1,986,936
Johnstown Plaza Metropolitan District Series 2022 4.25%, 12/01/2046		1,952		1,575,190
State of Colorado (State of Colorado COP) Series 2022 6.00%, 12/15/2041		6,000		7,244,332
Sterling Ranch Community Authority Board (Sterling Ranch Colorado Metropolitan District No. 2) Series 2020-A 3.75%, 12/01/2040		1,050		845,295
Sterling Ranch Community Authority Board (Sterling Ranch Metropolitan District No 3) Series 2022 6.50%, 12/01/2042		1,000		1,014,845
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2024		260		267,253
				50,327,225

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Connecticut – 2.8%
City of New Haven CT Series 2018-A 5.50%, 08/01/2035	$	1,920	$	2,097,322
Connecticut State Health & Educational Facilities Authority Series 2023-A 2.80%, 07/01/2048		7,710		7,637,268
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2035		1,500		1,511,246
4.00%, 07/01/2036		1,500		1,492,727
4.00%, 07/01/2037		1,000		982,598
4.00%, 07/01/2040		1,500		1,433,410
Connecticut State Health & Educational Facilities Authority (Yale University) Series 2022 1.10%, 07/01/2049		8,000		7,668,861
State of Connecticut Series 2013-A 5.00%, 10/15/2024		5,035		5,081,113
Series 2014-A 5.00%, 03/01/2028		2,230		2,270,110
Series 2014-F 5.00%, 11/15/2026		1,275		1,315,628
Series 2015-B 5.00%, 06/15/2025		4,330		4,523,389
5.00%, 06/15/2028		2,840		2,969,484
Series 2016-A 5.00%, 03/15/2032		2,160		2,290,940
Series 2018-B 5.00%, 04/15/2028		1,440		1,602,480
State of Connecticut Special Tax Revenue Series 2020 5.00%, 05/01/2038		3,040		3,381,963
Series 2021-D 4.00%, 11/01/2037		2,250		2,323,104
4.00%, 11/01/2038		4,185		4,274,151
				52,855,794

20    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
District of Columbia – 1.8%
District of Columbia (District of Columbia International School Obligated Group) Series 2019 5.00%, 07/01/2039	$	2,400	$	2,444,372
District of Columbia (Plenary Infrastructure DC LLC State Lease) Series 2022 5.00%, 08/31/2029		4,765		5,052,112
5.00%, 08/31/2030		5,025		5,349,779
5.00%, 02/29/2032		5,475		5,838,388
Metropolitan Washington Airports Authority Aviation Revenue Series 2018-A 5.00%, 10/01/2025		5,500		5,712,523
5.00%, 10/01/2026		3,065		3,237,926
Series 2021-A 4.00%, 10/01/2038		2,500		2,487,590
5.00%, 10/01/2036		1,695		1,857,032
Washington Metropolitan Area Transit Authority Dedicated Revenue (Washington Metropolitan Area Transit Authority Dedicated Revenue Lease) Series 2021-A 4.00%, 07/15/2039		2,450		2,509,234
				34,488,956
Florida – 3.8%
Align Affordable Housing Bond Fund LP (SHI – Lake Worth LLC) Series 2021 3.25%, 12/01/2051(a)		2,500		2,164,728
Capital Trust Agency, Inc. (Franklin Academy Series 2020 Obligated Group) Series 2020 4.00%, 12/15/2025(a)		300		293,065
City of Palmetto FL (Renaissance Arts and Education, Inc.) Series 2022 5.125%, 06/01/2042		2,400		2,423,060
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 08/15/2025		4,500		4,670,081

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Broward FL Airport System Revenue Series 2013-A 5.25%, 10/01/2033 (Pre-refunded/ETM)	$	2,410	$	2,426,426
Series 2019-A 4.00%, 10/01/2044		16,215		15,431,227
Series 2019-C 2.384%, 10/01/2026		2,600		2,432,393
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2023		6,100		6,108,470
5.00%, 06/01/2024		5,000		5,089,065
5.00%, 06/01/2026		2,885		2,994,976
5.00%, 06/01/2027		4,515		4,688,389
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2030		115		82,835
Zero Coupon, 10/01/2031		140		96,419
Zero Coupon, 10/01/2032		100		65,761
Zero Coupon, 10/01/2033		115		72,019
Zero Coupon, 10/01/2034		125		74,047
Florida Development Finance Corp. (Mater Academy, Inc.) Series 2022-A 4.00%, 06/15/2042		2,000		1,743,944
5.00%, 06/15/2042		2,550		2,554,398
Florida Municipal Power Agency (Florida Municipal Power Agency All-Requirements Power Supply Project Revenue) Series 2015-B 5.00%, 10/01/2023		1,500		1,510,927
Series 2021 1.425%, 10/01/2026		500		450,523
Greater Orlando Aviation Authority Series 2017-A 5.00%, 10/01/2029 (Pre-refunded/ETM)		4,420		4,801,380
5.00%, 10/01/2033		4,000		4,240,307
Mid-Bay Bridge Authority Series 2015-A 5.00%, 10/01/2028		1,000		1,026,676

22    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Orange County Health Facilities Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2023 4.00%, 08/01/2036(e)	$	1,000	$	921,469
Polk County Industrial Development Authority (Mineral Development LLC) Series 2020 5.875%, 01/01/2033(a)		1,000		1,006,867
Village Community Development District No. 13 Series 2019 3.55%, 05/01/2039		4,175		3,444,949
Village Community Development District No. 14 Series 2022 5.50%, 05/01/2053		2,750		2,681,405
				73,495,806
Georgia – 3.7%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2034		4,490		4,261,807
5.00%, 07/01/2035		5,065		4,731,190
City of Atlanta GA Department of Aviation Series 2022-B 5.00%, 07/01/2038		3,440		3,753,045
5.00%, 07/01/2042		6,830		7,283,610
Cobb County Kennestone Hospital Authority (WellStar Health System Obligated Group) Series 2021 5.00%, 04/01/2025		1,650		1,701,403
Main Street Natural Gas, Inc. (Citadel LP) Series 2022-C 4.00%, 08/01/2052(a)		5,000		4,809,208
Main Street Natural Gas, Inc. (Citigroup, Inc.) Series 2021-C 4.00%, 05/01/2052		2,075		2,067,043
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018-A 4.00%, 04/01/2048		9,370		9,376,962
Series 2018-C 4.00%, 08/01/2048		6,850		6,859,688

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-A 4.00%, 07/01/2052	$	20,765	$	20,856,829
Main Street Natural Gas, Inc. (Toronto-Dominion Bank/The) Series 2019-B 4.00%, 08/01/2049		2,000		2,009,853
Richmond County Board of Education Series 2021 5.00%, 10/01/2023		3,400		3,424,909
				71,135,547
Guam – 0.2%
Territory of Guam Series 2019 5.00%, 11/15/2031		135		141,055
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015-D 5.00%, 11/15/2025		865		882,070
5.00%, 11/15/2031		2,070		2,112,309
Series 2021-F 5.00%, 01/01/2028		500		524,686
				3,660,120
Illinois – 4.3%
Chicago Board of Education Series 2018-A 5.00%, 12/01/2027		1,200		1,253,185
Series 2019-B 5.00%, 12/01/2030		135		141,544
5.00%, 12/01/2031		265		277,070
5.00%, 12/01/2033		100		104,009
Series 2023 5.25%, 04/01/2033		1,375		1,550,299
5.25%, 04/01/2040		1,720		1,836,377
Chicago Housing Authority Series 2018-A 5.00%, 01/01/2034		2,500		2,715,890
5.00%, 01/01/2037		5,260		5,612,885
5.00%, 01/01/2038		1,000		1,062,067
Chicago O'Hare International Airport Series 2015-B 5.00%, 01/01/2029		5,000	��	5,151,400
Series 2016-C 5.00%, 01/01/2033		5,000		5,255,362
Series 2017-B 5.00%, 01/01/2035		1,475		1,569,875
Series 2018-A 5.00%, 01/01/2037		1,000		1,060,059

24    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2022 4.00%, 01/01/2042	$	2,000	$	1,973,565
5.00%, 01/01/2028		680		724,938
5.00%, 01/01/2031		600		665,341
5.00%, 01/01/2042		3,850		4,062,469
Chicago O'Hare International Airport (Chicago O'Hare International Airport Customer Facility Charge) Series 2013 5.50%, 01/01/2025		2,250		2,255,179
Illinois Finance Authority (Ascension Health Credit Group) Series 2016-C 5.00%, 02/15/2024		1,630		1,651,103
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 5.00%, 09/01/2023		100		99,934
5.00%, 09/01/2026		100		99,690
5.00%, 09/01/2027		100		99,878
5.00%, 09/01/2029		100		100,208
5.00%, 09/01/2033		200		197,573
5.00%, 09/01/2034		100		97,710
Illinois Finance Authority (Washington and Jane Smith Community – Orland Park) Series 2022 4.00%, 10/15/2040		9,375		7,467,490
Illinois Housing Development Authority Series 2022 5.67%, 12/01/2025(a)		1,250		1,251,973
7.17%, 11/01/2038		125		127,818
Illinois State Toll Highway Authority Series 2021-A 5.00%, 01/01/2041		14,805		16,477,570
5.00%, 01/01/2043		6,700		7,424,240
State of Illinois Series 2014 5.00%, 05/01/2030		3,810		3,863,800
Series 2022-A 5.50%, 03/01/2042		2,945		3,257,425
Series 2022-B 5.25%, 10/01/2037		3,000		3,324,324
				82,812,250

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Indiana – 2.1%
City of Fort Wayne IN (Do Good Foods Fort Wayne LLC Obligated Group) Series 2022 9.00%, 12/01/2044(a)	$	2,740	$	2,713,930
10.75%, 12/01/2029		370		369,747
City of Whiting IN (BP Products North America, Inc.) Series 2023 4.40%, 11/01/2045		5,000		5,176,762
Indiana Finance Authority (Brightmark Plastics Renewal Indiana LLC) Series 2019 7.00%, 03/01/2039(a)		2,305		1,742,829
Indiana Finance Authority (Duke Energy Indiana LLC) Series 2022 3.75%, 03/01/2031		5,750		5,821,796
4.50%, 05/01/2035		7,555		7,656,557
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022 4.00%, 04/01/2035		1,210		1,158,612
Indiana Finance Authority (Greencroft Goshen Obligated Group) Series 2023-2 4.00%, 11/15/2037(e)		1,000		800,298
Indiana Finance Authority (Indiana University Health, Inc. Obligated Group) Series 2021 0.70%, 12/01/2046		8,150		7,418,325
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		495		433,907
Series 2022-A 4.25%, 11/01/2030		1,535		1,534,564
Indiana Finance Authority (University of Evansville) Series 2022 5.25%, 09/01/2037		5,000		5,060,123
				39,887,450

26    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Iowa – 1.4%
Iowa Finance Authority Series 2022-E 4.16% (SOFR + 0.80%), 01/01/2052(d)	$	8,000	$	7,883,841
Iowa Higher Education Loan Authority (Simpson College) Series 2020 5.25%, 11/01/2040		2,275		2,122,022
Iowa Tobacco Settlement Authority Series 2021-A 4.00%, 06/01/2034		500		512,139
4.00%, 06/01/2035		515		522,225
4.00%, 06/01/2037		1,000		991,369
4.00%, 06/01/2038		1,000		983,539
4.00%, 06/01/2040		500		481,797
5.00%, 06/01/2031		900		1,000,975
PEFA, Inc. (Goldman Sachs Group, Inc. (The)) Series 2019 5.00%, 09/01/2049		11,130		11,461,096
				25,959,003
Kansas – 0.3%
Kansas Development Finance Authority Series 2021 5.00%, 11/15/2054 (Pre-refunded/ETM)		720		809,112
Kansas Development Finance Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2054		5,280		5,842,316
				6,651,428
Kentucky – 2.0%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 5.00%, 02/01/2026		180		186,238
5.00%, 02/01/2027		195		204,988
5.00%, 02/01/2030		125		136,614
5.00%, 02/01/2031		150		160,570
City of Henderson KY (Pratt Paper LLC) Series 2022 3.70%, 01/01/2032(a)		1,150		1,094,870
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		7,260		7,277,663

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Public Energy Authority (Morgan Stanley) Series 2018-C 7.46% (CPI + 1.05%), 12/01/2049(d)	$	20,000	$	20,418,680
Series 2019-C 4.00%, 02/01/2050		9,015		9,024,420
				38,504,043
Louisiana – 0.8%
City of New Orleans LA Series 2021-A 5.00%, 12/01/2030		1,910		2,195,925
5.00%, 12/01/2035		2,680		2,969,250
Jefferson Sales Tax District AGM Series 2017-B 5.00%, 12/01/2034		1,800		1,951,570
Louisiana Local Government Environmental Facilities & Community Development Auth (Louisiana Utilities Restoration Corp ELL System Restoration Revenue) Series 2023 5.081%, 06/01/2031		3,000		3,025,679
Parish of St. James LA (NuStar Logistics LP) Series 2020 5.85%, 08/01/2041(a)		340		348,665
6.10%, 06/01/2038(a)		455		490,132
6.10%, 12/01/2040(a)		390		420,113
State of Louisiana Gasoline & Fuels Tax Revenue Series 2022-A 3.867% (SOFR + 0.50%), 05/01/2043(d)		4,920		4,806,875
				16,208,209
Maryland – 1.8%
County of Montgomery MD Series 2019-A 5.00%, 11/01/2026		5,925		6,414,079
Maryland Economic Development Corp. (Purple Line Transit Partners LLC) Series 2022 5.00%, 06/30/2040		8,795		8,975,926
Maryland Health & Higher Educational Facilities Authority (Stevenson University, Inc.) Series 2021 4.00%, 06/01/2039		500		477,641

28    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Maryland Series 2017-B 5.00%, 08/01/2024	$	5,790	$	5,933,641
Series 2022-C 5.00%, 03/01/2026		11,500		12,226,059
				34,027,346
Massachusetts – 1.5%
Commonwealth of Massachusetts Series 2020-B 5.00%, 07/01/2024		7,380		7,550,649
AGC Series 2007-A 3.795% (LIBOR 3 Month + 0.57%), 05/01/2037(d)		3,275		3,192,670
Commonwealth of Massachusetts (Commonwealth of Massachusetts COVID-19 Recovery Assessment Revenue) Series 2022-B 4.11%, 07/15/2031		3,200		3,174,741
Massachusetts Bay Transportation Authority Sales Tax Revenue Series 2004-C 5.25%, 07/01/2023		3,520		3,531,825
Massachusetts Clean Water Trust (The) (Massachusetts Water Pollution Abatement Trust (The) SRF) Series 2006 8.10% (CPI + 0.99%), 08/01/2023(d)		2,275		2,294,738
Massachusetts Development Finance Agency (Broad Institute Inc. (The)) Series 2017 5.00%, 04/01/2028		1,655		1,815,041
Massachusetts Port Authority Series 2021-E 5.00%, 07/01/2037		2,250		2,455,460
5.00%, 07/01/2039		5,000		5,410,072
				29,425,196
Michigan – 1.3%
City of Detroit MI Series 2018 5.00%, 04/01/2035		750		772,461
5.00%, 04/01/2036		305		311,452

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) AGM Series 2006-D 4.068% (LIBOR 3 Month + 0.60%), 07/01/2032(d)	$	2,605	$	2,427,054
Michigan Finance Authority (City of Detroit MI) Series 2016-C 5.00%, 04/01/2026		1,000		1,055,791
5.00%, 04/01/2027		1,735		1,845,015
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) AGM Series 2014-D2 5.00%, 07/01/2024		10,545		10,725,708
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 5.00%, 11/15/2031		1,785		1,878,042
Michigan Finance Authority (Michigan Finance Authority Drinking Water Revolving Fund) Series 2021 5.00%, 10/01/2026		1,250		1,346,944
Michigan Finance Authority (Michigan Finance Authority Tobacco Settlement Revenue) Series 2020-A 3.267%, 06/01/2039		1,000		901,850
Michigan Strategic Fund (Michigan Strategic Fund – I 75 Improvement Project) Series 2018 5.00%, 12/31/2028		3,075		3,233,156
				24,497,473
Minnesota – 0.4%
Minneapolis-St Paul Metropolitan Airports Commission Series 2022-B 4.00%, 01/01/2038		4,250		4,220,291
5.00%, 01/01/2039		2,105		2,259,274

30    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Minnesota Series 2022-B 5.00%, 08/01/2024	$	2,000	$	2,049,617
				8,529,182
Mississippi – 0.1%
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 5.00%, 10/01/2033(a)		1,000		1,058,514
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		1,500		1,538,806
				2,597,320
Missouri – 0.7%
Health & Educational Facilities Authority of the State of Missouri (BJC Healthcare Obligated Group) Series 2021-B 4.00%, 05/01/2051		11,975		12,280,001
Howard Bend Levee District XLCA Series 2005 5.75%, 03/01/2025		135		136,969
5.75%, 03/01/2027		120		122,692
Lee's Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2016-A 5.00%, 08/15/2036		1,675		1,478,053
				14,017,715
Montana – 0.2%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%, 02/15/2031		1,925		2,028,204
5.00%, 02/15/2033		1,350		1,416,176
				3,444,380
Nebraska – 1.1%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2018 5.00%, 03/01/2050		15,000		15,109,797

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Central Plains Energy Project (Royal Bank of Canada) Series 2019 4.00%, 12/01/2049	$	6,115	$	6,140,205
				21,250,002
Nevada – 2.2%
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019-A 2.50%, 06/15/2024(a)		160		156,472
Clark County School District Series 2021-A 4.00%, 06/15/2034		10,085		10,579,896
5.00%, 06/15/2027		3,500		3,812,362
Series 2021-B 5.00%, 06/15/2027		5,170		5,631,404
Las Vegas Valley Water District Series 2022-A 4.00%, 06/01/2036		5,000		5,287,565
4.00%, 06/01/2037		6,350		6,584,680
State of Nevada Department of Business & Industry (DesertXpress Enterprises LLC) Series 2023 3.70%, 01/01/2050(a)		3,800		3,794,096
Tahoe-Douglas Visitors Authority Series 2020 4.00%, 07/01/2027		1,200		1,194,380
5.00%, 07/01/2029		2,625		2,754,486
5.00%, 07/01/2032		2,035		2,137,211
5.00%, 07/01/2035		805		834,289
				42,766,841
New Hampshire – 0.0%
New Hampshire Business Finance Authority Series 2022-2 0.35%, 09/20/2036		8,500		201,702
New Jersey – 4.9%
Federal Home Loan Mortgage Corp. Enhanced Receipt Series 2019-B, Class 1 3.87%, 11/15/2035(a)		12,363		11,583,811
New Jersey Economic Development Authority Series 2014-P 5.00%, 06/15/2029 (Pre-refunded/ETM)		1,150		1,174,512

32    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Educational Facilities Authority (Ramapo College of New Jersey) AGM Series 2022-A 4.00%, 07/01/2039	$	550	$	551,278
4.00%, 07/01/2040		750		741,342
4.00%, 07/01/2041		835		819,177
5.00%, 07/01/2034		845		985,492
5.00%, 07/01/2035		400		462,233
5.00%, 07/01/2036		600		685,811
5.00%, 07/01/2037		600		677,364
5.00%, 07/01/2038		745		837,314
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		4,390		4,637,957
Series 2018-A 5.00%, 06/15/2028		4,170		4,406,421
5.00%, 06/15/2029		17,500		18,488,439
5.00%, 06/15/2030		1,500		1,584,357
5.00%, 06/15/2031		3,000		3,166,582
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2014-C 5.25%, 06/15/2032		2,960		3,057,770
Series 2020-A 5.00%, 06/15/2036		1,140		1,251,680
New Jersey Turnpike Authority Series 2014-A 5.00%, 01/01/2028		4,785		4,890,558
Series 2017-A 5.00%, 01/01/2033		7,300		7,850,127
Series 2021-B 0.897%, 01/01/2025		1,000		937,681
1.713%, 01/01/2029		1,350		1,165,355
State of New Jersey Series 2020 4.00%, 06/01/2023		10,000		10,003,833
Tobacco Settlement Financing Corp./NJ Series 2018-A 5.00%, 06/01/2030		4,750		5,167,159
Series 2018-B 5.00%, 06/01/2046		3,495		3,475,908

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Township of Jefferson NJ Series 2022 3.00%, 06/16/2023	$	5,380	$	5,374,975
				93,977,136
New Mexico – 0.1%
State of New Mexico Severance Tax Permanent Fund  Series 2022-A 5.00%, 07/01/2031		1,000		1,182,133
Winrock Town Center Tax Increment Development District No. 1 Series 2022 4.00%, 05/01/2033(a)		1,035		913,082
				2,095,215
New York – 9.9%
City of New York NY Series 2020-A 5.00%, 08/01/2026		3,940		4,218,316
Series 2021 1.396%, 08/01/2027		3,120		2,769,046
Series 2021-A 4.00%, 08/01/2041		2,000		1,995,612
Series 2021-F 5.00%, 06/01/2044(f)		2,500		2,597,539
County of Nassau NY Series 2022-A 4.00%, 04/01/2042		2,205		2,160,008
Metropolitan Transportation Authority Series 2013-A 5.00%, 11/15/2026 (Pre-refunded/ETM)		2,300		2,301,333
Series 2013-E 5.00%, 11/15/2025 (Pre-refunded/ETM)		8,510		8,593,151
Series 2016-A 5.00%, 11/15/2024		1,130		1,152,117
Series 2016-B 5.00%, 11/15/2027		1,370		1,434,766
Series 2017-B 5.00%, 11/15/2023		1,110		1,116,985
5.00%, 11/15/2025		1,935		2,001,958
5.00%, 11/15/2026		555		581,980
Series 2017-C 5.00%, 11/15/2026		1,275		1,336,980
5.00%, 11/15/2027		1,745		1,852,381
5.00%, 11/15/2028		1,000		1,072,624
Series 2020-A 5.00%, 11/15/2045		5,120		5,579,225

34    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2020-E 4.00%, 11/15/2026	$	1,000	$	1,015,019
5.00%, 11/15/2028		4,000		4,292,953
Series 2021-D 3.553% (SOFR + 0.33%), 11/01/2035(d)		1,975		1,955,711
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2018 5.00%, 08/01/2023		6,810		6,839,728
New York Liberty Development Corp. (3 World Trade Center LLC) Series 2014 5.375%, 11/15/2040(a)		200		200,068
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028		6,565		6,660,241
Series 2021 2.202%, 03/15/2034		2,000		1,607,402
2.252%, 03/15/2032		2,000		1,675,264
Series 2021-A 4.00%, 03/15/2039		1,000		1,011,395
Series 2022-A 4.00%, 03/15/2039		2,000		2,025,236
4.00%, 03/15/2040		2,000		2,005,867
New York State Environmental Facilities Corp. (State of New York SRF) Series 2021 4.00%, 08/15/2038		800		812,219
New York State Thruway Authority (State of New York Pers Income Tax) Series 2021-A 5.00%, 03/15/2025		2,225		2,312,316
Series 2022-A 5.00%, 03/15/2030		21,850		25,272,053
New York State Urban Development Corp. (State of New York Pers Income Tax) Series 2022 5.00%, 09/15/2029		37,115		42,534,258
New York Transportation Development Corp. (JFK International Air Terminal LLC) Series 2022 5.00%, 12/01/2038		1,700		1,796,227
5.00%, 12/01/2040		2,850		2,977,882

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2046	$	345	$	342,313
Port Authority of New York & New Jersey Series 2021-2 5.00%, 07/15/2028		1,025		1,111,519
Suffolk Tobacco Asset Securitization Corp. Series 2021 5.00%, 06/01/2028		2,265		2,431,238
5.00%, 06/01/2032		2,245		2,459,338
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021 5.00%, 05/15/2050		4,740		4,992,191
Series 2021-A 2.00%, 05/15/2045		2,945		2,706,086
2.591%, 05/15/2036		2,000		1,585,039
2.917%, 05/15/2040		1,000		763,052
Series 2022-A 5.00%, 08/15/2024		16,500		16,846,739
Series 2022-E 4.266% (SOFR + 1.05%), 04/01/2026(d)		6,000		6,036,724
Trust for Cultural Resources of The City of New York (The) Series 2014 5.00%, 08/01/2043 (Pre-refunded/ETM)		5,000		5,022,451
				190,054,550
North Carolina – 0.4%
Fayetteville State University Series 2023 5.00%, 04/01/2032(a)		655		720,364
State of North Carolina (State of North Carolina Fed Hwy Grant) Series 2015 5.00%, 03/01/2026		6,710		6,958,215
				7,678,579
North Dakota – 0.0%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(a)(b)(c)		425		233,750
7.00%, 12/15/2043(a)(b)(c)		440		242,000
				475,750

36    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio – 2.3%
American Municipal Power, Inc. (American Municipal Power Combined Hydroelectric Revenue) Series 2016-A 5.00%, 02/15/2036	$	5,000	$	5,192,640
American Municipal Power, Inc. (American Municipal Power Prairie State Energy Campus Revenue) Series 2019 5.00%, 02/15/2035		1,425		1,590,225
Buckeye Tobacco Settlement Financing Authority Series 2020-A 4.00%, 06/01/2039		1,000		976,768
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2037		3,385		3,508,980
City of Cleveland OH Airport System Revenue AGM Series 2016-B 5.00%, 01/01/2024		1,075		1,087,880
City of Cleveland OH Income Tax Revenue Series 2017-B1 5.00%, 10/01/2027		2,500		2,751,637
5.00%, 10/01/2029		3,085		3,429,683
5.00%, 10/01/2030		2,000		2,223,522
Series 2017-B2 5.00%, 10/01/2029		1,485		1,647,296
City of Columbus OH Series 2013-A 5.00%, 08/15/2023		1,390		1,397,225
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2037		5,600		5,718,371
County of Washington OH (Marietta Area Health Care, Inc. Obligated Group) Series 2022 6.375%, 12/01/2037		2,000		2,032,998
Northeast Ohio Regional Sewer District Series 2013 5.00%, 11/15/2043 (Pre-refunded/ETM)		6,000		6,003,700

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio Higher Educational Facility Commission (University of Dayton) Series 2022 5.00%, 02/01/2038	$	1,250	$	1,354,540
5.00%, 02/01/2039		3,860		4,154,009
				43,069,474
Oklahoma – 0.2%
Oklahoma Development Finance Authority Series 2022 4.38%, 11/01/2045		2,500		2,406,691
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2022-A 5.50%, 08/15/2037		2,000		1,924,711
				4,331,402
Oregon – 1.4%
Deschutes County Hospital Facilities Authority (St. Charles Health System Obligated Group) Series 2016-A 4.00%, 01/01/2033		1,000		1,014,623
Lane County School District No 4J Eugene Series 2022 5.00%, 06/15/2024		8,780		8,967,392
Oregon Health & Science University (Oregon Health & Science University Obligated Group) Series 2021-B 5.00%, 07/01/2046		4,750		5,347,403
Port of Portland OR Airport Revenue Series 2022-2 4.00%, 07/01/2038		5,000		4,964,187
4.00%, 07/01/2040		3,500		3,410,674
Tri-County Metropolitan Transportation District of Oregon Series 2018-A 5.00%, 10/01/2029		1,910		2,104,844
				25,809,123
Other – 0.2%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates (FHLMC Multifamily VRD Certificates) 2.65%, 06/15/2036(a)		3,730		3,131,363

38    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania – 5.1%
Allegheny County Airport Authority Series 2021-A 4.00%, 01/01/2041	$	5,255	$	5,049,791
Berks County Municipal Authority (The) (Tower Health Obligated Group) Series 2012-A 4.50%, 11/01/2041		1,000		596,997
Series 2020-B 5.00%, 02/01/2040		2,000		1,359,795
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 5.00%, 07/01/2032		1,000		981,891
5.00%, 07/01/2033		1,150		1,124,429
5.00%, 07/01/2034		1,300		1,265,370
5.00%, 07/01/2035		1,050		1,016,338
Chester County Industrial Development Authority (Collegium Charter School) Series 2022 5.00%, 10/15/2032(a)		1,000		982,990
City of Philadelphia PA Series 2017 5.00%, 08/01/2028		12,990		14,114,869
City of Philadelphia PA Airport Revenue Series 2021 5.00%, 07/01/2028		3,035		3,268,107
City of Philadelphia PA Water & Wastewater Revenue Series 2017-A 5.00%, 10/01/2032		1,000		1,095,730
5.00%, 10/01/2033		1,135		1,239,559
Commonwealth of Pennsylvania Series 2017 5.00%, 01/01/2024		3,600		3,642,656
Hospitals & Higher Education Facilities Authority of Philadelphia (The) (Temple University Health System Obligated Group) AGM Series 2022 4.00%, 07/01/2040		10,000		9,614,542

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Lancaster County Hospital Authority/PA (St. Anne's Retirement Community Obligated Group) Series 2022 3.50%, 03/01/2025	$	955	$	921,634
5.00%, 03/01/2033		1,600		1,471,166
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2018 5.00%, 09/01/2034		1,500		1,601,852
Series 2022 4.00%, 05/01/2036		1,100		1,100,282
4.00%, 05/01/2037		1,500		1,487,087
4.00%, 05/01/2038		1,375		1,351,638
4.00%, 05/01/2039		1,500		1,468,667
4.00%, 05/01/2040		2,000		1,937,570
4.00%, 05/01/2041		3,000		2,881,519
4.00%, 05/01/2042		2,125		2,021,137
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.125%, 07/01/2025		1,300		1,261,036
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 06/30/2042		1,000		1,004,524
Pennsylvania Economic Development Financing Authority (UPMC Obligated Group) Series 2022-C 4.56% (MUNIPSA + 0.70%), 11/15/2047(d)		5,000		4,907,899
Pennsylvania Higher Educational Facilities Authority (University of Pennsylvania Health System Obligated Group (The)) Series 2022 4.00%, 08/15/2042		2,000		1,983,511
Pennsylvania Turnpike Commission Series 2017 5.00%, 12/01/2028		1,750		1,917,480
5.00%, 12/01/2029		1,255		1,373,769
Series 2017-B 5.00%, 06/01/2034		5,830		6,270,165

40    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 06/01/2036	$	1,750	$	1,846,440
Series 2019 5.00%, 12/01/2023		4,250		4,291,617
Series 2021-A 3.00%, 12/01/2042		1,245		959,031
Series 2021-B 4.00%, 12/01/2039		2,000		2,017,269
Series 2022-A 5.00%, 12/01/2036		1,000		1,140,436
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2040		1,000		1,012,661
School District of Philadelphia (The) Series 2016-F 5.00%, 09/01/2034		5,000		5,214,306
				96,795,760
Puerto Rico – 0.5%
Commonwealth of Puerto Rico Series 2021-A Zero Coupon, 07/01/2024		261		247,234
Zero Coupon, 07/01/2033		4,179		2,438,319
4.00%, 07/01/2033		3		2,653
4.00%, 07/01/2035		3		2,332
4.00%, 07/01/2037		2		1,955
4.00%, 07/01/2041		3		2,554
4.00%, 07/01/2046		3		2,564
5.25%, 07/01/2023		752		752,604
5.625%, 07/01/2029		788		833,034
5.75%, 07/01/2031		228		244,123
Commonwealth of Puerto Rico (Commonwealth of Puerto Rico) Series 2022-C 0.00%, 11/01/2043		19		8,983
HTA HRRB Custodial Trust  Series 2022 5.25%, 07/01/2036		100		100,503
HTA TRRB Custodial Trust  Series 2022 5.25%, 07/01/2034		1,010		1,003,190
5.25%, 07/01/2036		1,095		1,100,505
5.25%, 07/01/2041		790		794,920
Puerto Rico Electric Power Authority AGM Series 2007-V 5.25%, 07/01/2031		970		981,480

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Highway & Transportation Authority Series 2022-B Zero Coupon, 07/01/2032	$	1,260	$	790,650
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024		790		750,419
				10,058,022
Rhode Island – 0.2%
Rhode Island Health and Educational Building Corp. (City of Newport RI) Series 2022-C 4.00%, 05/15/2040		3,435		3,502,919
South Carolina – 0.8%
Columbia Housing Authority/SC Series 2022 4.80%, 11/01/2024		525		511,865
5.26%, 11/01/2032		100		96,807
5.41%, 11/01/2039		1,315		1,255,633
6.28%, 11/01/2039		100		95,748
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.25%, 06/01/2040(a)		1,000		785,538
South Carolina Public Service Authority Series 2016-A 5.00%, 12/01/2034		1,000		1,036,981
5.00%, 12/01/2036		1,535		1,577,250
Series 2016-B 5.00%, 12/01/2037		5,040		5,183,765
Series 2016-C 5.00%, 12/01/2035		930		964,351
Series 2020-A 4.00%, 12/01/2042		2,260		2,155,905
Series 2021-B 4.00%, 12/01/2039		1,975		1,939,601
				15,603,444
Tennessee – 1.5%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(a)		1,410		1,325,146

42    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016-B Zero Coupon, 12/01/2024(a)	$	1,405	$	1,291,937
Zero Coupon, 12/01/2031(a)		1,000		617,902
City of Pigeon Forge TN Series 2021-B 5.00%, 06/01/2024		4,545		4,637,140
Knox County Industrial Development Board (Tompaul Knoxville LLC) Series 2022 8.75%, 11/01/2032(a)		1,000		1,002,144
9.25%, 11/01/2042(a)		1,000		1,002,062
Metropolitan Government of Nashville & Davidson County TN Series 2021-A 5.00%, 07/01/2023		6,220		6,237,146
Metropolitan Nashville Airport Authority (The) Series 2022-B 5.50%, 07/01/2038		1,300		1,462,816
5.50%, 07/01/2042		1,485		1,638,617
State of Tennessee Series 2015-A 5.00%, 08/01/2034 (Pre-refunded/ETM)		2,750		2,885,400
Tennergy Corp/TN (Goldman Sachs Group, Inc. (The)) Series 2022-A 5.50%, 10/01/2053		5,000		5,296,191
Wilson County Health & Educational Facilities Board Series 2021 4.00%, 12/01/2039		1,000		761,144
4.25%, 12/01/2024		1,000		947,678
				29,105,323
Texas – 5.2%
Board of Regents of the University of Texas System Series 2016-E 5.00%, 08/15/2023		2,000		2,010,511
Central Texas Regional Mobility Authority Series 2021-B 5.00%, 01/01/2030		1,800		2,001,624
5.00%, 01/01/2034		1,575		1,760,472
5.00%, 01/01/2035		1,350		1,499,689
5.00%, 01/01/2037		1,675		1,827,240
5.00%, 01/01/2039		1,000		1,075,620
City of Houston TX Series 2021-A 5.00%, 03/01/2026		2,500		2,651,519

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 03/01/2027	$	4,180	$	4,539,142
City of Houston TX Airport System Revenue Series 2020-A 4.00%, 07/01/2037		3,000		2,998,762
Series 2021-A 4.00%, 07/01/2035		1,100		1,112,855
4.00%, 07/01/2037		1,085		1,084,552
4.00%, 07/01/2039		2,500		2,461,729
4.00%, 07/01/2040		5,175		5,042,925
5.00%, 07/01/2032		1,000		1,114,653
5.00%, 07/01/2033		3,000		3,338,494
City of Houston TX Combined Utility System Revenue Series 2014-C 5.00%, 05/15/2024		1,100		1,121,830
Series 2019-B 4.00%, 11/15/2039		1,015		1,019,585
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2038		1,750		1,940,047
5.00%, 02/01/2039		2,000		2,200,451
5.00%, 02/01/2040		2,470		2,694,873
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2041		905		895,876
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2020-B 5.00%, 12/01/2023		4,000		4,039,400
Fort Worth Independent School District Series 2021-A 5.00%, 02/15/2026		2,900		3,074,237
5.00%, 02/15/2027		2,350		2,549,234
Harris County Cultural Education Facilities Finance Corp. (Texas Children's Hospital Obligated Group) Series 2021 4.00%, 10/01/2041		2,000		1,979,910
Hidalgo County Regional Mobility Authority Series 2022-A 4.00%, 12/01/2040		1,000		899,888
4.00%, 12/01/2041		750		670,792
5.00%, 12/01/2033		750		789,449

44    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2022-B 4.00%, 12/01/2041	$	1,000	$	850,724
Lewisville Independent School District Series 2020 5.00%, 08/15/2023		2,430		2,441,231
5.00%, 08/15/2024		2,295		2,348,186
Lower Colorado River Authority (LCRA Transmission Services Corp.) Series 2021 5.00%, 05/15/2029		800		907,761
Mesquite Independent School District Series 2015-A 4.00%, 08/15/2035 (Pre-refunded/ETM)		1,530		1,569,839
4.00%, 08/15/2036 (Pre-refunded/ETM)		1,590		1,631,402
4.00%, 08/15/2037 (Pre-refunded/ETM)		1,655		1,698,094
New Hope Cultural Education Facilities Finance Corp. Series 2023 8.50%, 09/01/2027(a)		1,500		1,495,435
New Hope Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc. Obligated Group) Series 2021 2.00%, 11/15/2061(f)		917		394,760
7.50%, 11/15/2036		225		187,214
7.50%, 11/15/2037		35		27,517
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group) Series 2022 4.00%, 01/01/2042		1,825		1,338,849
Newark Higher Education Finance Corp. (TLC Academy) Series 2021-A 4.00%, 08/15/2041		1,690		1,417,115
North Texas Tollway Authority Series 2017-A 5.00%, 01/01/2038		335		335,192
North Texas Tollway Authority (North Texas Tollway System) Series 2021-B 4.00%, 01/01/2032		1,080		1,148,044
Permanent University Fund – University of Texas System Series 2014 5.00%, 07/01/2041 (Pre-refunded/ETM)		4,000		4,011,092

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Port Authority of Houston of Harris County Texas Series 2021 5.00%, 10/01/2027	$	1,065	$	1,170,796
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 3.625%, 01/01/2035(a)		240		191,268
Series 2021 2.00%, 01/01/2027(a)		550		485,210
Spring Independent School District Series 2021 5.00%, 08/15/2027		1,430		1,568,140
Tarrant County Cultural Education Facilities Finance Corp. (CHRISTUS Health Obligated Group) Series 2018-A 5.00%, 07/01/2030		2,465		2,711,342
5.00%, 07/01/2031		10,940		12,013,176
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025(b)(c)		1,105		442,000
				98,779,746
Utah – 0.4%
City of Salt Lake City UT Airport Revenue Series 2021-A 4.00%, 07/01/2038		4,635		4,529,891
4.00%, 07/01/2040		2,915		2,823,267
Military Installation Development Authority Series 2021-A 4.00%, 06/01/2041		1,000		803,811
				8,156,969
Virginia – 1.0%
Align Affordable Housing Bond Fund LP (Park Landing LP) Series 2022-2 5.66%, 08/01/2052		1,499		1,435,189
Halifax County Industrial Development Authority (Virginia Electric and Power Co.) Series 2022 1.65%, 12/01/2041		5,000		4,848,429

46    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Hampton Roads Transportation Accountability Commission Series 2021-A 5.00%, 07/01/2026 (Pre-refunded/ETM)	$	2,685	$	2,871,639
Virginia Public Building Authority (Virginia Public Building Authority State Lease) Series 2020-B 5.00%, 08/01/2023		5,000		5,021,328
Virginia Small Business Financing Authority (Pure Salmon Virginia, LLC) Series 2022 3.50%, 11/01/2052		4,000		3,988,390
				18,164,975
Washington – 4.5%
City of Seattle WA Water System Revenue Series 2017 5.00%, 08/01/2023		4,020		4,037,950
Energy Northwest (Bonneville Power Administration) Series 2016 5.00%, 07/01/2025		19,925		20,856,922
Series 2021-A 4.00%, 07/01/2042		1,000		998,987
Port of Seattle WA Series 2013 5.00%, 07/01/2024		4,820		4,829,874
Series 2019 5.00%, 04/01/2033		2,000		2,176,321
5.00%, 04/01/2034		1,000		1,085,358
Series 2021 4.00%, 08/01/2040		2,000		1,923,339
4.00%, 08/01/2041		11,380		10,855,088
5.00%, 08/01/2023		1,165		1,167,881
Series 2022 5.00%, 08/01/2024		2,000		2,032,380
Spokane County School District No. 81 Spokane Series 2012 3.00%, 12/01/2031		5,000		4,935,585
State of Washington Series 2015-R 5.00%, 07/01/2026		13,325		13,775,749
University of Washington Series 2022-B 2.787%, 07/01/2033		2,500		2,185,532

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington Economic Development Finance Authority (Mura Cascade ELP LLC) Series 2022 3.90%, 12/01/2042(a)	$	12,400	$	12,363,606
Washington State Convention Center Public Facilities District (Washington State Convention Center Public Facilities District Hotel Occupancy Tax) Series 2021 4.00%, 07/01/2031		1,600		1,544,970
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest Obligated Group) Series 2016 5.00%, 01/01/2036(a)		2,125		1,757,607
				86,527,149
West Virginia – 0.2%
City of South Charleston WV (City of South Charleston WV South Charleston Park Place Excise Tax District) Series 2022 4.25%, 06/01/2042(a)		1,185		939,562
Tobacco Settlement Finance Authority/WV Series 2020 4.875%, 06/01/2049		2,600		2,353,123
West Virginia Economic Development Authority (Arch Resources, Inc.) Series 2021 4.125%, 07/01/2045		265		260,817
				3,553,502
Wisconsin – 2.8%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(a)		1,000		755,057
State of Wisconsin Series 2015-A 5.00%, 05/01/2029 (Pre-refunded/ETM)		9,570		9,570,000
Series 2021-2 5.00%, 05/01/2026		5,850		6,251,709
UMA Education, Inc. Series 2019 5.00%, 10/01/2023(a)		150		150,189

48    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 10/01/2025(a)	$	555	$	556,100
5.00%, 10/01/2026(a)		590		591,258
5.00%, 10/01/2027(a)		610		610,691
5.00%, 10/01/2028(a)		335		334,985
5.00%, 10/01/2029(a)		155		154,741
Wisconsin Department of Transportation Series 2013-1 5.00%, 07/01/2023		5,500		5,516,075
5.00%, 07/01/2024 (Pre-refunded/ETM)		6,500		6,518,251
Wisconsin Health & Educational Facilities Authority (Advocate Aurora Health Obligated Group) Series 2023 5.00%, 08/15/2054		2,000		2,115,140
Wisconsin Housing & Economic Development Authority (Roers Sun Prairie Apartments Owner LLC) Series 2022 4.625%, 03/15/2040(a)		280		242,322
Series 2022-A 3.875%, 12/01/2039(a)		1,285		1,104,389
Wisconsin Public Finance Authority Series 2022 4.00%, 04/01/2032(a)		860		817,144
4.00%, 04/01/2032 (Pre-refunded/ETM)(a)		15		15,992
5.00%, 02/01/2042		2,000		2,027,910
5.50%, 02/01/2042(a)		3,100		3,056,332
Wisconsin Public Finance Authority (Appalachian Regional Healthcare System Obligated Group) Series 2021 5.00%, 07/01/2035		300		322,872
5.00%, 07/01/2036		350		372,711
5.00%, 07/01/2038		375		392,379
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(a)		5,000		4,555,612
Wisconsin Public Finance Authority (National Senior Communities, Inc. Obligated Group) Series 2022 4.00%, 01/01/2042		1,375		1,236,904

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (Queens University of Charlotte) Series 2022 5.25%, 03/01/2042	$	3,000	$	3,048,153
Wisconsin Public Finance Authority (Renown Regional Medical Center) Series 2020 4.00%, 06/01/2035		1,220		1,209,719
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021-B 2.25%, 06/01/2027(a)		1,500		1,388,164
				52,914,799
Total Long-Term Municipal Bonds (cost $1,806,786,177)				1,725,169,246
Short-Term Municipal Notes – 1.8%
Massachusetts – 0.9%
Massachusetts Transportation Trust Fund Metropolitan Highway System Revenue Series 2022-A 3.91%, 01/01/2037(g)		17,925		17,925,000
New York – 0.4%
Build NYC Resource Corp. (Asia Society (The)) Series 2015 3.88%, 04/01/2045(g)		4,565		4,565,000
City of New York NY Series 2016 3.93%, 08/01/2044(g)		3,650		3,650,000
				8,215,000
Ohio – 0.1%
Columbus Regional Airport Authority Series 2006 3.85%, 12/01/2036(g)		840		840,000
Oregon – 0.2%
Oregon State Facilities Authority (PeaceHealth Obligated Group) Series 2018-A 2.75%, 08/01/2034(g)		2,800		2,800,000

50    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Texas – 0.2%
Harris County Cultural Education Facilities Finance Corp. Series B-2 3.00%, 05/02/2023	$	4,100	$	4,099,403
Total Short-Term Municipal Notes (cost $33,880,000)				33,879,403
Total Municipal Obligations (cost $1,840,666,177)				1,759,048,649
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.4%
Agency CMBS – 0.6%
California Housing Finance Agency Series 2021-1, Class A 3.50%, 11/20/2035		969		917,815
Series 2021-2, Class A 3.75%, 03/25/2035		4,898		4,829,710
Series 2021-2, Class X 0.844%, 03/25/2035(h)		2,452		129,635
Series 2021-3, Class A 3.25%, 08/20/2036		1,957		1,785,944
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates Series 2021-ML10, Class ACA 2.046%, 06/25/2038		980		772,879
Series 2021-ML12, Class AUS 2.34%, 07/25/2041(a)		2,469		1,959,223
Series 2022-ML13, Class XCA 0.959%, 07/25/2036(h)		1,188		69,797
Series 2022-ML13, Class XUS 1.003%, 09/25/2036(h)		2,086		148,687
Washington State Housing Finance Commission Series 2021-1, Class A 3.50%, 12/20/2035		972		912,442
Series 2021-1, Class X 0.726%, 12/20/2035(h)		973		47,385
				11,573,517
Non-Agency Fixed Rate CMBS – 0.8%
National Finance Authority Series 2022-2, Class X 0.696%, 10/01/2036(h)		4,965		251,516

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Hampshire Business Finance Authority Series 2020-1, Class A 4.125%, 01/20/2034	$	1,481	$	1,450,367
Series 2022-1, Class A 4.375%, 09/20/2036		9,896		9,746,067
Series 2022-2, Class A 4.00%, 10/20/2036		4,965		4,722,171
				16,170,121
Total Commercial Mortgage-Backed Securities (cost $29,862,166)				27,743,638
CORPORATES - INVESTMENT GRADE – 0.8%
Industrial – 0.8%
Capital Goods – 0.2%
Caterpillar Financial Services Corp. 5.071% (SOFR + 0.27%), 09/13/2024(d)		2,500		2,482,100
John Deere Capital Corp. 4.957% (SOFR + 0.12%), 07/10/2023(d)		1,435		1,432,891
				3,914,991
Consumer Non-Cyclical – 0.6%
Baylor Scott & White Holdings Series 2021 0.827%, 11/15/2025		1,000		903,690
1.777%, 11/15/2030		1,000		818,310
Hackensack Meridian Health, Inc. Series 2020 2.675%, 09/01/2041		1,790		1,293,597
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031		2,300		1,730,451
Sutter Health Series 20A 3.161%, 08/15/2040		1,000		767,620
UPMC Series D-1 3.60%, 04/03/2025		5,600		5,467,168
				10,980,836
Total Corporates – Investment Grade (cost $16,859,947)				14,895,827

52    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CORPORATES - NON-INVESTMENT GRADE – 0.3%
Financial Institutions – 0.0%
Banking – 0.0%
UMB Financial Corp. 10.00%, 01/01/2049(i)(j)	$	145	$	145,250
10.00%, 01/01/2049(i)(j)		104		103,823
				249,073
Industrial – 0.3%
Communications - Media – 0.2%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(a)		1,933		1,479,886
DISH DBS Corp. 5.25%, 12/01/2026(a)		959		731,966
5.75%, 12/01/2028(a)		996		709,919
				2,921,771
Consumer Non-Cyclical – 0.1%
Medline Borrower LP 3.875%, 04/01/2029(a)		2,000		1,749,580
				4,671,351
Total Corporates – Non-Investment Grade (cost $6,135,739)				4,920,424
GOVERNMENTS - TREASURIES – 0.2%
United States – 0.2%
U.S. Treasury Notes  2.625%, 02/15/2029(k) (cost $4,999,344)		5,000		4,754,687
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.0%
Risk Share Floating Rate – 0.0%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes  Series 2013-DN2, Class M2 9.27% (LIBOR 1 Month + 4.25%), 11/25/2023(d)		101		102,933
Series 2014-DN3, Class M3 9.02% (LIBOR 1 Month + 4.00%), 08/25/2024(d)		31		31,861
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C03, Class 2M2 7.92% (LIBOR 1 Month + 2.90%), 07/25/2024(d)		43		43,553

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2015-C02, Class 1M2 9.02% (LIBOR 1 Month + 4.00%), 05/25/2025(d)	$	50	$	51,843
Total Collateralized Mortgage Obligations (cost $223,586)				230,190
	Shares
SHORT-TERM INVESTMENTS – 2.9%
Investment Companies – 2.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(l)(m)(n) (cost $54,637,775)		54,637,775		54,637,775
Total Investments – 97.6% (cost $1,953,384,734)				1,866,231,190
Other assets less liabilities – 2.4%				45,553,447
Net Assets – 100.0%			$	1,911,784,637

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		5.00	%		Quarterly		4.65	%		USD	10,200	$	(200,960	)	$	(22,064	)	$	(178,896	)

* Termination date

54    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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	15,000		04/29/2024		2.765%		CPI#	Maturity	$	1,229,189	$	– 0	–	$	1,229,189
USD	30,000		08/06/2024		2.815%		CPI#	Maturity		1,934,157		– 0	–		1,934,157
USD	20,000		11/02/2024		3.310%		CPI#	Maturity		760,891		– 0	–		760,891
USD	25,000		11/19/2024		3.695%		CPI#	Maturity		647,977		– 0	–		647,977
USD	40,000		11/24/2024		3.469%		CPI#	Maturity		1,307,203		– 0	–		1,307,203
USD	5,345		01/15/2025		2.565%		CPI#	Maturity		483,697		– 0	–		483,697
USD	2,673		01/15/2025		2.585%		CPI#	Maturity		239,746		– 0	–		239,746
USD	2,672		01/15/2025		2.613%		CPI#	Maturity		236,703		– 0	–		236,703
USD	148,000		01/15/2026		3.508%		CPI#	Maturity		6,081,569		– 0	–		6,081,569
USD	135,000		01/15/2026		3.580%		CPI#	Maturity		5,038,828		– 0	–		5,038,828
USD	30,000		08/06/2026		2.689%		CPI#	Maturity		1,888,835		– 0	–		1,888,835
USD	25,000		10/04/2026		2.725%		CPI#	Maturity		1,266,283		– 0	–		1,266,283
USD	15,000		11/24/2026		3.176%		CPI#	Maturity		408,171		– 0	–		408,171
USD	74,000		01/15/2028		3.232%		CPI#	Maturity		3,016,339		– 0	–		3,016,339
USD	19,310		01/15/2028		1.230%		CPI#	Maturity		3,459,291		– 0	–		3,459,291
USD	14,770		01/15/2028		0.735%		CPI#	Maturity		3,181,201		– 0	–		3,181,201
USD	25,000		10/04/2028		2.661%		CPI#	Maturity		1,292,981		– 0	–		1,292,981
USD	12,000		08/29/2029		1.748%		CPI#	Maturity		1,863,443		– 0	–		1,863,443
USD	4,825		01/15/2030		1.572%		CPI#	Maturity		826,380		– 0	–		826,380
USD	4,825		01/15/2030		1.587%		CPI#	Maturity		819,657		– 0	–		819,657
USD	1,670		01/15/2030		1.714%		CPI#	Maturity		263,870		– 0	–		263,870
USD	1,670		01/15/2030		1.731%		CPI#	Maturity		261,200		– 0	–		261,200
USD	7,850		01/15/2031		2.782%		CPI#	Maturity		511,699		– 0	–		511,699
USD	6,150		01/15/2031		2.680%		CPI#	Maturity		463,470		– 0	–		463,470
USD	15,000		12/02/2035		2.074%		CPI#	Maturity		2,191,075		– 0	–		2,191,075
USD	25,000		04/01/2036		2.438%		CPI#	Maturity		2,293,263		– 0	–		2,293,263
USD	32,000		04/29/2036		2.503%		CPI#	Maturity		2,584,981		– 0	–		2,584,981
USD	10,000		05/01/2036		2.510%		CPI#	Maturity		795,966		– 0	–		795,966
USD	10,000		08/03/2036		2.488%		CPI#	Maturity		689,943		– 0	–		689,943
USD	20,000		08/06/2036		2.440%		CPI#	Maturity		1,495,612		– 0	–		1,495,612
USD	40,000		10/04/2036		2.510%		CPI#	Maturity		2,189,873		– 0	–		2,189,873
									$	49,723,493	$	– 0	–	$	49,723,493

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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    55

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	80,600		01/15/2027		1 Day SOFR		3.744%	Annual	$	492,155	$	– 0	–	$	492,155
USD	5,700		01/15/2027		1 Day SOFR		3.746%	Annual		35,119		– 0	–		35,119
USD	30,000		04/20/2028		1 Day SOFR		3.394%	Annual		69,681		– 0	–		69,681
USD	70,000		04/15/2032		1.254%		1 Day SOFR	Annual		10,551,226		– 0	–		10,551,226
USD	55,000		04/15/2032		2.677%		1 Day SOFR	Annual		2,210,964		– 0	–		2,210,964
USD	37,000		04/15/2032		2.316%		1 Day SOFR	Annual		2,523,817		– 0	–		2,523,817
USD	20,000		04/15/2032		1.658%		1 Day SOFR	Annual		2,387,573		– 0	–		2,387,573
USD	20,000		04/15/2032		1.862%		1 Day SOFR	Annual		2,073,810		– 0	–		2,073,810
									$	20,344,345	$	– 0	–	$	20,344,345

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	39	$	(8,149	)	$	(3,635	)	$	(4,514	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	342		(70,632	)		(40,647	)		(29,985	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	23		(4,725	)		(2,637	)		(2,088	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	22		(4,489	)		(2,021	)		(2,468	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	270		(55,632	)		(25,075	)		(30,557	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	405		(83,625	)		(36,724	)		(46,901	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	696		(143,627	)		(79,626	)		(64,001	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	132		(27,285	)		(15,636	)		(11,649	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	351		(72,522	)		(30,913	)		(41,609	)
												$	(470,686	)	$	(236,914	)	$	(233,772	)

* Termination date

56    ^|    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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

Bank of America, NA

USD

86,000

01/15/2027

3.600%

CPI#

Maturity

$

2,140,214

$

– 0

–

$

2,140,214

Bank of America, NA

USD

25,000

02/02/2032

2.403%

CPI#

Maturity

2,225,334

– 0

–

2,225,334

Barclays Bank PLC

USD

25,000

08/07/2024

2.573%

CPI#

Maturity

460,247

– 0

–

460,247

Barclays Bank PLC

USD

19,000

05/05/2025

2.125%

CPI#

Maturity

1,906,247

– 0

–

1,906,247

Barclays Bank PLC

USD

20,000

06/06/2032

2.145%

CPI#

Maturity

2,590,347

– 0

–

2,590,347

Barclays Bank PLC

USD

14,000

09/01/2032

2.128%

CPI#

Maturity

1,894,068

– 0

–

1,894,068

Barclays Bank PLC

USD

22,000

08/29/2033

2.368%

CPI#

Maturity

2,010,976

– 0

–

2,010,976

Citibank, NA

USD

47,000

05/24/2023

2.533%

CPI#

Maturity

576,766

– 0

–

576,766

Citibank, NA

USD

30,000

10/29/2023

2.524%

CPI#

Maturity

933,147

– 0

–

933,147

Citibank, NA

USD

30,000

09/19/2024

2.070%

CPI#

Maturity

3,399,939

– 0

–

3,399,939

Citibank, NA

USD

25,000

07/03/2025

2.351%

CPI#

Maturity

2,118,730

– 0

–

2,118,730

Citibank, NA

USD

12,000

11/05/2033

2.273%

CPI#

Maturity

1,289,562

– 0

–

1,289,562

Citibank, NA

USD

35,000

02/15/2041

2.888%

CPI#

Maturity

(1,309,949

)

– 0

–

(1,309,949

)

Citibank, NA

USD

13,000

02/15/2041

2.744%

CPI#

Maturity

(152,931

)

– 0

–

(152,931

)

Deutsche Bank AG

USD

25,000

09/02/2025

1.880%

CPI#

Maturity

3,060,364

– 0

–

3,060,364

Goldman Sachs International

USD

400,000

04/15/2024

5.207%

CPI#

Maturity

3,561,528

– 0

–

3,561,528

Goldman Sachs International

USD

57,000

04/15/2024

4.308%

CPI#

Maturity

2,118,919

– 0

–

2,118,919

Goldman Sachs International

USD

39,000

01/15/2027

3.534%

CPI#

Maturity

1,133,561

– 0

–

1,133,561

Goldman Sachs International

USD

18,000

04/15/2032

2.994%

CPI#

Maturity

611,474

– 0

–

611,474

Goldman Sachs International

USD

20,000

02/15/2041

2.890%

CPI#

Maturity

(757,599

)

– 0

–

(757,599

)

Goldman Sachs International

USD

15,000

02/15/2041

2.815%

CPI#

Maturity

(364,371

)

– 0

–

(364,371

)

Goldman Sachs International

USD

14,000

02/15/2041

2.380%

CPI#

Maturity

707,132

– 0

–

707,132

Goldman Sachs International

USD

7,000

02/15/2041

2.413%

CPI#

Maturity

315,768

– 0

–

315,768

JPMorgan Chase Bank, NA

USD

1,400

06/30/2026

2.890%

CPI#

Maturity

(104,719

)

– 0

–

(104,719

)

JPMorgan Chase Bank, NA

USD

3,300

07/21/2026

2.935%

CPI#

Maturity

(282,161

)

– 0

–

(282,161

)

JPMorgan Chase Bank, NA

USD

2,400

10/03/2026

2.485%

CPI#

Maturity

13,222

– 0

–

13,222

JPMorgan Chase Bank, NA

USD

5,400

11/14/2026

2.488%

CPI#

Maturity

22,329

– 0

–

22,329

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    57

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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

JPMorgan Chase Bank, NA

USD

4,850

12/23/2026

2.484%

CPI#

Maturity

$

36,426

$

– 0

–

$

36,426

JPMorgan Chase Bank, NA

USD

13,000

03/01/2027

2.279%

CPI#

Maturity

1,240,234

– 0

–

1,240,234

JPMorgan Chase Bank, NA

USD

10,000

07/03/2028

2.356%

CPI#

Maturity

895,852

– 0

–

895,852

JPMorgan Chase Bank, NA

USD

25,000

11/05/2028

2.234%

CPI#

Maturity

2,578,265

– 0

–

2,578,265

JPMorgan Chase Bank, NA

USD

18,000

04/17/2030

2.378%

CPI#

Maturity

1,595,668

– 0

–

1,595,668

JPMorgan Chase Bank, NA

USD

29,000

04/15/2032

2.944%

CPI#

Maturity

1,146,217

– 0

–

1,146,217

JPMorgan Chase Bank, NA

USD

24,000

11/17/2032

2.183%

CPI#

Maturity

2,996,699

– 0

–

2,996,699

Morgan Stanley Capital Services LLC

USD

5,000

08/15/2026

2.885%

CPI#

Maturity

(371,352

)

– 0

–

(371,352

)

$

40,236,153

$

– 0

–

$

40,236,153

# 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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

Citibank, NA

USD

11,075

10/09/2029

1.125%

SIFMA*

Quarterly

$

1,041,558

$

– 0

–

$

1,041,558

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $120,684,239 or 6.3% of net assets.

(b) Non-income producing security.

(c) Defaulted.

(d) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

(e) When-Issued or delayed delivery security.

(f) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

(g) Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks.

58    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(h) IO – Interest Only.

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

(j) Fair valued by the Adviser.

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

(l) Affiliated investments.

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

(n) 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 April 30, 2023, 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 2.3% and 0.0%, respectively.

Glossary:

ACA – ACA Financial Guaranty Corporation

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

FHLMC – Federal Home Loan Mortgage Corporation

LIBOR – London Interbank Offered Rate

MUNIPSA – SIFMA Municipal Swap Index

NATL – National Interstate Corporation

SOFR – Secured Overnight Financing Rate

SRF – State Revolving Fund

UPMC – University of Pittsburgh Medical Center

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    59

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,898,746,959)	$	1,811,593,415
Affiliated issuers (cost $54,637,775)		54,637,775
Cash collateral due from broker		32,793,304
Unrealized appreciation on inflation swaps		43,579,235
Interest receivable		23,855,309
Receivable for capital stock sold		3,160,984
Unrealized appreciation on interest rate swaps		1,041,558
Affiliated dividends receivable		67,530
Receivable for investment securities sold		65,262
Total assets		1,970,794,372
Liabilities
Due to custodian		44,618
Cash collateral due to broker		34,834,394
Payable for investment securities purchased		16,352,087
Unrealized depreciation on inflation swaps		3,343,082
Payable for variation margin on centrally cleared swaps		1,561,544
Payable for capital stock redeemed		1,231,780
Advisory fee payable		616,363
Market value on credit default swaps (net premiums received $236,914)		470,686
Distribution fee payable		104,177
Administrative fee payable		30,356
Transfer Agent fee payable		25,903
Directors’ fees payable		5,462
Accrued expenses		389,283
Total liabilities		59,009,735
Net Assets	$	1,911,784,637
Composition of Net Assets
Capital stock, at par	$	180,657
Additional paid-in capital		1,980,869,259
Accumulated loss		(69,265,279	)
Net Assets	$	1,911,784,637

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	216,594,089		20,415,231	$	10.61	*
C	$	22,675,937		2,140,217	$	10.60
Advisor	$	771,165,108		72,632,114	$	10.62
1	$	583,163,617		55,312,161	$	10.54
2	$	318,185,886		30,156,942	$	10.55

* The maximum offering price per share for Class A shares was $10.94 which reflects a sales charge of 3.00%.

See notes to financial statements.

60    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	27,076,595
Dividends—Affiliated issuers		246,414		$	27,323,009
Expenses
Advisory fee (see Note B)		5,088,054
Distribution fee—Class A		313,758
Distribution fee—Class C		122,027
Distribution fee—Class 1		292,860
Transfer agency—Class A		72,029
Transfer agency—Class C		7,050
Transfer agency—Advisor Class		247,014
Transfer agency—Class 1		16,646
Transfer agency—Class 2		8,955
Registration fees		129,410
Custody and accounting		111,407
Administrative		45,448
Audit and tax		43,786
Printing		37,914
Legal		29,609
Directors’ fees		24,028
Miscellaneous		25,771
Total expenses before bank overdraft expense		6,615,766
Bank overdraft expense		74,879
Total expenses		6,690,645
Less: expenses waived and reimbursed by the Adviser (see Note B)		(805,148	)
Net expenses					5,885,497
Net investment income					21,437,512
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					(39,520,186	)
Swaps					11,151,010
Net change in unrealized appreciation (depreciation) of:
Investments					144,324,225
Swaps					(38,532,561	)
Net gain on investment transactions					77,422,488
Net Increase in Net Assets from Operations				$	98,860,000

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    61

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	21,437,512		$	36,017,887
Net realized loss on investment transactions		(28,369,176	)		(40,805,988	)
Net change in unrealized appreciation (depreciation) of investments		105,791,664			(154,403,003	)
Net increase (decrease) in net assets from operations		98,860,000			(159,191,104	)
Distributions to Shareholders
Class A		(2,679,073	)		(4,564,616	)
Class C		(166,184	)		(123,917	)
Advisor Class		(10,177,949	)		(16,355,224	)
Class 1		(6,844,595	)		(8,507,777	)
Class 2		(3,829,258	)		(4,417,481	)
Capital Stock Transactions
Net increase (decrease)		(356,472,705	)		370,480,605
Total increase (decrease)		(281,309,764	)		177,320,486
Net Assets
Beginning of period		2,193,094,401			2,015,773,915
End of period	$	1,911,784,637		$	2,193,094,401

See notes to financial statements.

62    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 a front-end sales charge of up to 3% 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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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 10 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    63

NOTES TO FINANCIAL STATEMENTS (continued)

approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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

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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., 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)

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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 rates, coupon rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security 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, 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 April 30, 2023:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

1,725,169,246

$

– 0

–

$

1,725,169,246

Short-Term Municipal Notes

– 0

–

33,879,403

– 0

–

33,879,403

Commercial Mortgage-Backed Securities

– 0

–

27,743,638

– 0

–

27,743,638

Corporates – Investment Grade

– 0

–

14,895,827

– 0

–

14,895,827

Corporates – Non-Investment Grade

– 0

–

4,671,351

249,073

4,920,424

Governments – Treasuries

– 0

–

4,754,687

– 0

–

4,754,687

Collateralized Mortgage Obligations

– 0

–

230,190

– 0

–

230,190

Short-Term Investments

54,637,775

– 0

–

– 0

–

54,637,775

Total Investments in Securities

54,637,775

1,811,344,342

249,073

1,866,231,190

Other Financial Instruments(a):

Assets:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

49,723,493

– 0

–

49,723,493

(b)

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Centrally Cleared Interest Rate Swaps	$	– 0	–	$	20,344,345		$	– 0	–	$	20,344,345	(b)
Inflation (CPI) Swaps		– 0	–		43,579,235			– 0	–		43,579,235
Interest Rate Swaps		– 0	–		1,041,558			– 0	–		1,041,558
Liabilities:
Centrally Cleared Credit Default Swaps		– 0	–		(200,960	)		– 0	–		(200,960	)(b)
Credit Default Swaps		– 0	–		(470,686	)		– 0	–		(470,686	)
Inflation (CPI) Swaps		– 0	–		(3,343,082	)		– 0	–		(3,343,082	)
Total	$	54,637,775		$	1,922,018,245		$	249,073		$	1,976,905,093

(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, written options and written swaptions 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.

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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes original issue and market discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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5. 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.

6. 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 .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, 2024 and then may be extended by the Adviser for additional one-year terms. For the six months ended April 30, 2023, such reimbursements/waivers amounted to $799,068.

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 six months ended April 30, 2023, the reimbursement for such services amounted to $45,448.

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

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provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $74,072 for the six months ended April 30, 2023.

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 $57 from the sale of Class A shares and received $9,146 and $3,101 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $6,080.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	10,358	$	344,211	$	299,931	$	54,638	$	246

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 .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.

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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 $501,727 and $1,796,928 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 six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	253,951,125	$	606,126,603
U.S. government securities		216,882		30,000

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	124,140,067
Gross unrealized depreciation		(100,360,730	)
Net unrealized appreciation	$	23,779,337

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

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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 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.

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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 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 the 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 six months ended April 30, 2023, 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

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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 six months ended April 30, 2023, 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 the 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 six months ended April 30, 2023, the Fund held credit default swaps for hedging and 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 six months ended April 30, 2023, 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					Payable for variation margin on centrally cleared swaps	$	178,896	*
Interest rate contracts	Receivable for variation margin on centrally cleared swaps	$	70,067,838	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		1,041,558
Interest rate contracts	Unrealized appreciation on inflation swaps		43,579,235		Unrealized depreciation on inflation swaps		3,343,082
Credit contracts					Market value on credit default swaps		470,686
Total		$	114,688,631			$	3,992,664

* 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	$	11,046,756	$	(38,458,079	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		104,254		(74,482	)
Total		$	11,151,010	$	(38,532,561	)

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The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Interest Rate Swaps:
Average notional amount	$	11,075,000
Inflation Swaps:
Average notional amount	$	1,041,014,286
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	269,700,000
Centrally Cleared Inflation Swaps:
Average notional amount	$	1,087,045,714
Credit Default Swaps:
Average notional amount of sale contracts	$	2,468,708
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	10,200,000	(a)

(a) Positions were open for four 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 April 30, 2023. 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	$	4,365,548	$	– 0	–	$	(4,003,000	)	$	(362,548	)	$	– 0	–
Barclays Bank PLC		8,861,885		– 0	–		(8,861,885	)		– 0	–		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		9,359,702		(1,541,661	)		(7,818,041	)		– 0	–		– 0	–
Deutsche Bank AG		3,060,364		– 0	–		(3,060,364	)		– 0	–		– 0	–
Goldman Sachs International		8,448,382		(1,221,777	)		– 0	–		(7,222,735	)		3,870
JPMorgan Chase Bank, NA		10,524,912		(386,880	)		(10,138,032	)		– 0	–		– 0	–
Total	$	44,620,793	$	(3,150,318	)	$	(33,881,322	)	$	(7,585,283	)	$	3,870	^

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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
Citibank, NA/Citigroup Global Markets, Inc.	$	1,541,661	$	(1,541,661	)	$	– 0 –	$			$	– 0	–
Credit Suisse International		292,098		– 0	–		– 0 –		(292,098	)		– 0	–
Goldman Sachs International		1,221,777		(1,221,777	)		– 0 –		– 0	–		– 0	–
JPMorgan Chase Bank, NA		386,880		(386,880	)		– 0 –		– 0	–		– 0	–
Morgan Stanley Capital Services LLC		371,352		– 0	–		– 0 –		(371,352	)		– 0	–
Total	$	3,813,768	$	(3,150,318	)	$	– 0 –	$	(663,450	)	$	0	^

* 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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		2,476,494			20,786,123		$	25,960,760		$	227,190,213
Shares issued in reinvestment of dividends		156,307			256,254			1,637,043			2,761,704
Shares converted from Class C		15,495			70,654			163,281			756,530
Shares redeemed		(12,408,688	)		(23,990,159	)		(130,136,588	)		(257,236,835	)
Net decrease		(9,760,392	)		(2,877,128	)	$	(102,375,504	)	$	(26,528,388	)

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class C
Shares sold		246,614			1,491,246		$	2,576,411		$	16,249,698
Shares issued in reinvestment of dividends		12,451			9,150			130,446			97,341
Shares converted to Class A		(15,514	)		(70,744	)		(163,281	)		(756,530	)
Shares redeemed		(644,707	)		(711,491	)		(6,752,520	)		(7,556,918	)
Net increase (decrease)		(401,156	)		718,161		$	(4,208,944	)	$	8,033,591
Advisor Class
Shares sold		18,273,757			106,945,004		$	192,009,708		$	1,163,480,337
Shares issued in reinvestment of dividends		643,073			1,005,972			6,744,115			10,820,742
Shares redeemed		(38,854,802	)		(91,220,153	)		(408,426,591	)		(971,609,434	)
Net increase (decrease)		(19,937,972	)		16,730,823		$	(209,672,768	)	$	202,691,645
Class 1
Shares sold		4,722,760			18,622,654		$	49,430,473		$	201,949,554
Shares issued in reinvestment of dividends		480,020			595,910			5,002,190			6,366,894
Shares redeemed		(8,258,256	)		(11,503,338	)		(86,419,113	)		(122,716,651	)
Net increase (decrease)		(3,055,476	)		7,715,226		$	(31,986,450	)	$	85,599,797
Class 2
Shares sold		1,649,291			14,163,464		$	17,342,205		$	152,841,464
Shares issued in reinvestment of dividends		197,067			257,519			2,055,437			2,754,756
Shares redeemed		(2,646,704	)		(5,173,157	)		(27,626,681	)		(54,912,260	)
Net increase (decrease)		(800,346	)		9,247,826		$	(8,229,039	)	$	100,683,960

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

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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. 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, public health crises, uncertainties related to the tax status of municipal securities, and 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, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may worsen, adversely affecting the performance of the Fund. 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.

In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 are or 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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NOTES TO FINANCIAL STATEMENTS (continued)

of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

the Fund’s performance and/or NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	1,429,775	$	1,319,862
Total taxable distributions	$	1,429,775	$	1,319,862
Tax-exempt distributions		32,539,240		21,972,290
Total distributions paid	$	33,969,015	$	23,292,152

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	1,999,908
Accumulated capital and other losses		(65,050,825	)(a)
Unrealized appreciation (depreciation)		(81,377,303	)(b)
Total accumulated earnings (deficit)	$	(144,428,220	)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $65,050,825.

(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.

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, 2022, the Fund had a net short-term capital loss carryforward of $52,705,359 and a net long-term capital loss carryforward of $12,345,466, which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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NOTES TO FINANCIAL STATEMENTS (continued)

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.24			$  11.03			$  10.30			$  10.24			$  10.02			$  10.28
Income From Investment Operations
Net investment income(a)(b)		.10			.13			.16			.22			.24			.22
Net realized and unrealized gain (loss) on investment transactions		.38			(.79	)		.75			.07	(c)		.21			(.26	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.48			(.66	)		.91			.29			.45			(.04	)
Less: Dividends
Dividends from net investment income		(.11	)		(.13	)		(.18	)		(.23	)		(.23	)		(.22	)
Net asset value, end of period		$  10.61			$  10.24			$  11.03			$  10.30			$  10.24			$  10.02
Total Return
Total investment return based on net asset value(e)*		4.70	%		(6.06	)%		8.89	%		2.85	%		4.58	%		(.42	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$216,594			$308,986			$364,599			$138,454			$54,316			$75,127
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.76	%^		.75	%		.75	%		.75	%		.75	%		.75	%
Expenses, before waivers/reimbursements(f)		.86	%^		.82	%		.84	%		.85	%		.86	%		.86	%
Net investment income(b)		1.92	%^		1.24	%		1.51	%		2.14	%		2.32	%		2.13	%
Portfolio turnover rate		13	%		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 90.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.23			$  11.02			$  10.29			$  10.22			$  10.01			$  10.26
Income From Investment Operations
Net investment income(a)(b)		.06			.06			.08			.14			.16			.14
Net realized and unrealized gain (loss) on investment transactions		.38			(.80	)		.74			.08	(c)		.20			(.25	)
Contributions from Affiliates		– 0	–		– 0	–		.01			– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.44			(.74	)		.83			.22			.36			(.11	)
Less: Dividends
Dividends from net investment income		(.07	)		(.05	)		(.10	)		(.15	)		(.15	)		(.14	)
Net asset value, end of period		$  10.60			$  10.23			$  11.02			$  10.29			$  10.22			$  10.01
Total Return
Total investment return based on net asset value(e)*		4.32	%		(6.75	)%		8.12	%		2.16	%		3.63	%		(1.09	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$22,676			$25,986			$20,086			$6,710			$7,717			$10,681
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.51	%^		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, before waivers/reimbursements(f)		1.61	%^		1.58	%		1.59	%		1.61	%		1.61	%		1.61	%
Net investment income(b)		1.18	%^		.54	%		.75	%		1.43	%		1.57	%		1.37	%
Portfolio turnover rate		13	%		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 90.

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FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.25			$  11.04			$  10.31			$  10.24			$  10.03			$  10.29
Income From Investment Operations
Net investment income(a)(b)		.11			.16			.18			.25			.26			.24
Net realized and unrealized gain (loss) on investment transactions		.38			(.80	)		.75			.07	(c)		.21			(.26	)
Contributions from Affiliates		– 0	–		– 0	–		.01			– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.49			(.64	)		.94			.32			.47			(.02	)
Less: Dividends
Dividends from net investment income		(.12	)		(.15	)		(.21	)		(.25	)		(.26	)		(.24	)
Net asset value, end of period		$  10.62			$  10.25			$  11.04			$  10.31			$  10.24			$  10.03
Total Return
Total investment return based on net asset value(e)*		4.83	%		(5.82	)%		9.14	%		3.19	%		4.76	%		(.17	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$771,165			$948,603			$837,132			$185,829			$205,541			$226,145
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.51	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements(f)		.61	%^		.58	%		.59	%		.60	%		.61	%		.61	%
Net investment income(b)		2.18	%^		1.52	%		1.70	%		2.43	%		2.57	%		2.37	%
Portfolio turnover rate		13	%		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 90.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class 1
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.18			$  10.97			$  10.25			$  10.19			$  9.98			$  10.25
Income From Investment Operations
Net investment income(a)(b)		.11			.15			.18			.23			.25			.23
Net realized and unrealized gain (loss) on investment transactions		.37			(.79	)		.74			.07	(c)		.22			(.26	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.48			(.64	)		.92			.30			.47			(.03	)
Less: Dividends
Dividends from net investment income		(.12	)		(.15	)		(.20	)		(.24	)		(.26	)		(.24	)
Net asset value, end of period		$  10.54			$  10.18			$  10.97			$  10.25			$  10.19			$  9.98
Total Return
Total investment return based on net asset value(e)*		4.75	%		(5.92	)%		9.01	%		3.04	%		4.72	%		(.32	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$583,164			$594,155			$555,642			$444,500			$498,857			$485,386
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.61	%^		.60	%		.60	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements(f)		.66	%^		.64	%		.66	%		.67	%		.67	%		.67	%
Net investment income(b)		2.08	%^		1.43	%		1.72	%		2.33	%		2.47	%		2.27	%
Portfolio turnover rate		13	%		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 90.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class 2
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019				2018
Net asset value, beginning of period		$  10.19			$  10.98			$  10.25			$  10.19			$  9.99				$  10.25
Income From Investment Operations
Net investment income(a)(b)		.11			.17			.20			.24			.26				.24
Net realized and unrealized gain (loss) on investment transactions		.38			(.80	)		.74			.07	(c)		.21				(.25	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(d)		– 0	–		– 0	–			– 0	–
Net increase (decrease) in net asset value from operations		.49			(.63	)		.94			.31			.47				(.01	)
Less: Dividends
Dividends from net investment income		(.13	)		(.16	)		(.21	)		(.25	)		(.27	)			(.25	)
Net asset value, end of period		$  10.55			$  10.19			$  10.98			$  10.25			$  10.19		��		$  9.99
Total Return
Total investment return based on net asset value(e)*		4.79	%		(5.83	)%		9.21	%		3.14	%		4.73	%			(.12	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$318,186			$315,364			$238,315			$215,763			$238,306				$231,109
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.51	%^		.50	%		.50	%		.50	%		.50	%			.50	%
Expenses, before waivers/reimbursements(f)		.56	%^		.55	%		.56	%		.57	%		.57	%			.57	%
Net investment income(b)		2.18	%^		1.56	%		1.84	%		2.43	%		2.57	%			2.37	%
Portfolio turnover rate.		13	%		27	%		10	%		29	%		12	%			15	%

See footnote summary on page 90.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    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 expenses waived/reimbursed by the Adviser.

(c) 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.

(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 portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

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

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.75	%^		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		.85	%^		.82	%		.84	%		.85	%		.86	%		.86	%
Class C
Net of waivers/reimbursements		1.50	%^		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.60	%^		1.58	%		1.59	%		1.61	%		1.61	%		1.61	%
Advisor Class
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.60	%^		.58	%		.59	%		.60	%		.61	%		.61	%
Class 1
Net of waivers/reimbursements		.60	%^		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.65	%^		.64	%		.66	%		.67	%		.67	%		.67	%
Class 2
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.55	%^		.55	%		.56	%		.57	%		.57	%		.57	%

* Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .03% for the year ended October 31, 2021.

^ Annualized.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Daryl Clements⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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. Clements, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    91

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    93

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 in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 at the request of the directors. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    95

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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; 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 the 1-, 3-, 5- and 10-year periods ended July 31, 2022 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 discussed with the Adviser the reasons it was above the median. The directors also took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of 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 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 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 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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    97

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

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Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

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NOTES

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY     ^|    99

NOTES

100    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

AB MUNICIPAL BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MBIS-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB SHORT DURATION INCOME PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    1

SEMI-ANNUAL REPORT

June 5, 2023

This report provides management’s discussion of fund performance for the AB Short Duration Income Portfolio for the semi-annual reporting period ended April 30, 2023.

At a meeting held on May 2-4, 2023, the Adviser recommended, and the Fund’s Board of Directors approved, changes to the Fund’s principal investment strategies. These changes will be effective on or about July 5, 2023.

The Fund currently pursues its objective by investing, under normal circumstances, primarily in income-producing securities. In addition, 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 (“Government Securities and Other Government-Related Positions”).

Effective on or about July 5, these investment strategies will be amended, such that the Fund will pursue its objective by investing, under normal circumstances, at least 80% of its net assets, including any borrowings for investment purposes, in income-producing securities. In addition, the Fund will also normally invest at least 65% of its total assets in investment-grade debt securities of various types. The Fund may continue to invest 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. In addition, the Fund may continue to invest in Government Securities and Other Government-Related Positions (although without the 65% minimum investment requirement previously noted).

These investment strategy changes are addressed in a prospectus supplement dated May 5, 2023.

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

2    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB SHORT DURATION INCOME PORTFOLIO1
Class A Shares		5.01%		1.06%
Class C Shares		4.72%		0.36%
Advisor Class Shares2		5.12%		1.26%
Bloomberg 1-5 Year US Government/Credit Index		3.80%		1.17%

1 Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance for the six- and 12-month periods ended April 30, 2023, by 0.00% and 0.01%, respectively.

2 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.

INVESTMENT RESULTS

The preceding table shows the Fund’s performance compared with its benchmark, the Bloomberg 1-5 Year US Government/Credit Index, for the six- and 12-month periods ended April 30, 2023.

During the six-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Industry allocation contributed the most, relative to the benchmark, as gains from off-benchmark exposure to collateralized loan obligations, collateralized mortgage obligations, and eurozone and US high-yield credit default swaps were greater than losses from exposure to eurozone treasuries and commercial mortgage-backed securities. Yield-curve positioning in the US and eurozone contributed more than a loss from positioning in Canada. Security selection also contributed, as gains within consumer cyclical–other, sovereign bonds, capital goods, entertainment and energy outweighed losses within banking, media and technology. Country allocation to the eurozone also contributed more than a loss from allocation to Canada. Currency decisions had no material impact on returns during the period.

Over the 12-month period, all share classes except Advisor Class underperformed the benchmark, before sales charges. Security selection was the main detractor, as losses among banking, media, sovereign bonds and technology were partially offset by a gain within consumer cyclical–other. Industry allocation contributed, as gains from off-benchmark exposure to high-yield credit default swaps and collateralized mortgage obligations added more than losses from collateralized loan obligations and 30-year conventional mortgage-backed securities. Yield-curve positioning in the US and eurozone added to performance. Country allocation to the eurozone also contributed. Currency decisions had no material impact on returns during the period.

During both periods, the Fund used derivatives in the form of treasury futures and interest rate swaps to manage and hedge duration risk and/or

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    3

to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were used to effectively gain exposure to specific sectors. Total return swaps were used to take active credit risk.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. Developed-market government bonds rose the most in the US, Australia and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

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, 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 in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and

(continued on next page)

4    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

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.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 1-5 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 1-5 Year US Government/Credit Index is a broad-based benchmark that measures the nonsecuritized component of the Bloomberg US Aggregate Index. It includes investment-grade, US dollar-denominated, fixed-rate Treasuries and 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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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 and negative perceptions of the junk bond market generally and may be more difficult to trade 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. The Fund may be subject to a greater risk of

6    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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 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.

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 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 are 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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives,

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 are or 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. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

8    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

lower. SEC returns reflect the applicable sales charges for each share class: a 2.25% 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.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						4.68%
1 Year		1.06%		-1.21%
Since Inception2		1.35%		0.83%
CLASS C SHARES						3.95%
1 Year		0.36%		-0.61%
Since Inception2		0.55%		0.55%
ADVISOR CLASS SHARES3						5.00%
1 Year		1.26%		1.26%
Since Inception2		1.52%		1.52%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.66%, 2.42% and 1.48% 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 limited the Fund’s total 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 January 31, 2024. 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 the 30-day period ended April 30, 2023.

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 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.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-3.47%
Since Inception1		0.70%
CLASS C SHARES
1 Year		-3.04%
Since Inception1		0.41%
ADVISOR CLASS SHARES2
1 Year		-1.10%
Since Inception1		1.40%

1 Inception date: 12/12/2018.

2 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.

abfunds.com AB SHORT DURATION 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 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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,050.10	$	6.56		1.29	%
Hypothetical**	$	1,000	$	1,018.40	$	6.46		1.29	%
Class C
Actual	$	1,000	$	1,047.20	$	10.56		2.08	%
Hypothetical**	$	1,000	$	1,014.48	$	10.39		2.08	%
Advisor Class
Actual	$	1,000	$	1,051.20	$	5.39		1.06	%
Hypothetical**	$	1,000	$	1,019.54	$	5.31		1.06	%

* Expenses are equal to the Fund’s annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

12    ^|    AB SHORT DURATION  INCOME PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $85.2

1 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).

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    13

PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 60.1%
Spain – 0.4%
Spain Government Bond 0.80%, 07/30/2027(a)	EUR		356	$	358,953
United States – 59.7%
U.S. Treasury Notes 0.625%, 05/15/2030(b)	U.S.$		309		254,380
1.50%, 01/31/2027			499		460,801
2.875%, 08/15/2028(b)			743		718,930
3.00%, 07/31/2024			5,401		5,294,570
3.125%, 11/15/2028			2,933		2,866,616
3.25%, 06/30/2027(c)			2,228		2,195,670
3.50%, 01/31/2028			865		862,432
3.50%, 01/31/2030			380		379,107
3.50%, 02/15/2033			605		606,861
3.875%, 01/15/2026			12,239		12,245,037
3.875%, 11/30/2027(c)			4,967		5,029,661
3.875%, 12/31/2027			816		826,200
4.00%, 02/29/2028			1,675		1,708,558
4.125%, 01/31/2025			2,310		2,304,947
4.125%, 10/31/2027			103		105,017
4.25%, 12/31/2024			10,466		10,454,752
4.375%, 10/31/2024			1,750		1,748,359
4.50%, 11/30/2024(c)			2,732		2,736,896
					50,798,794
Total Governments - Treasuries (cost $51,730,361)					51,157,747
CORPORATES - INVESTMENT GRADE – 13.1%
Financial Institutions – 9.6%
Banking – 8.7%
AIB Group PLC 4.263%, 04/10/2025(a)			200		196,292
7.583%, 10/14/2026(a)			209		215,788
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(a)			119		109,168
Banco Santander SA 1.722%, 09/14/2027			200		175,938
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			200		199,622
Barclays PLC 4.375%, 09/11/2024			200		194,036
BNP Paribas SA 6.625%, 03/25/2024(a)(d)			200		189,854

��

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BPCE SA 5.975%, 01/18/2027(a)	U.S.$		250	$	252,055
Capital One Financial Corp. 5.468%, 02/01/2029			67		65,898
Credit Agricole SA 8.125%, 12/23/2025(a)(d)			200		198,240
Danske Bank A/S 3.244%, 12/20/2025(a)			200		190,820
4.298%, 04/01/2028(a)			200		189,778
Deutsche Bank AG/New York NY 1.447%, 04/01/2025			200		188,544
6.72%, 01/18/2029			156		158,649
Discover Financial Services 6.70%, 11/29/2032			69		72,996
HSBC Holdings PLC 4.041%, 03/13/2028			200		190,478
7.336%, 11/03/2026			200		209,878
Intesa Sanpaolo SpA 7.00%, 11/21/2025(a)			359		366,661
Lloyds Banking Group PLC 2.438%, 02/05/2026			200		188,970
5.871%, 03/06/2029			200		204,556
Mitsubishi UFJ Financial Group, Inc. 5.475%, 02/22/2031			312		316,739
Mizuho Financial Group, Inc. 5.667%, 05/27/2029			200		203,742
5.739%, 05/27/2031			200		204,812
Morgan Stanley 5.123%, 02/01/2029			22		22,100
6.296%, 10/18/2028			279		293,151
NatWest Group PLC 4.269%, 03/22/2025			397		391,366
PNC Financial Services Group, Inc. (The) Series O 8.977% (LIBOR 3 Month + 3.68%), 08/01/2023(d)(e)			12		11,967
Santander Holdings USA, Inc. 6.499%, 03/09/2029			216		217,058
Santander UK Group Holdings PLC 6.833%, 11/21/2026			359		365,376
Skandinaviska Enskilda Banken AB 6.875%, 06/30/2027(a)(d)			200		184,700
Societe Generale SA 6.447%, 01/12/2027(a)			271		273,526
Standard Chartered PLC 6.17%, 01/09/2027(a)			340		344,910

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Sumitomo Mitsui Financial Group, Inc. 5.71%, 01/13/2030	U.S.$		271	$	280,604
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(d)			400		377,136
UBS Group AG 7.00%, 01/31/2024(a)(d)			200		187,284
					7,432,692
Brokerage – 0.3%
Nomura Holdings, Inc. 5.709%, 01/09/2026			272		273,254
Finance – 0.3%
Aircastle Ltd. 4.40%, 09/25/2023			16		15,868
Aviation Capital Group LLC 3.50%, 11/01/2027(a)			158		142,792
Synchrony Financial 3.95%, 12/01/2027			57		50,308
4.875%, 06/13/2025			50		47,196
					256,164
REITs – 0.3%
GLP Capital LP/GLP Financing II, Inc. 5.375%, 04/15/2026			210		208,062
					8,170,172
Industrial – 3.3%
Basic – 0.0%
Arconic Corp. 6.00%, 05/15/2025(a)			15		14,991
Capital Goods – 0.1%
Regal Rexnord Corp. 6.30%, 02/15/2030(a)			56		56,949
Communications - Media – 0.2%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(a)			46		40,369
Pinewood Finance Co., Ltd. 3.25%, 09/30/2025(a)	GBP		118		138,877
					179,246
Consumer Cyclical - Automotive – 1.0%
General Motors Financial Co., Inc. 5.85%, 04/06/2030	U.S.$		206		205,827

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(a)	U.S.$		90	$	81,397
6.50%, 03/10/2028(a)			324		327,985
Lear Corp. 4.25%, 05/15/2029			150		143,310
Nissan Motor Acceptance Co. LLC 1.85%, 09/16/2026(a)			6		5,128
2.75%, 03/09/2028(a)			66		54,902
					818,549
Consumer Cyclical - Entertainment – 0.1%
Mattel, Inc. 5.875%, 12/15/2027(a)			102		102,123
Consumer Cyclical - Other – 0.4%
Las Vegas Sands Corp. 3.90%, 08/08/2029			150		136,368
Sands China Ltd. 5.625%, 08/08/2025(f)			200		195,204
					331,572
Consumer Cyclical - Retailers – 0.2%
AutoNation, Inc. 4.75%, 06/01/2030			150		141,466
Consumer Non-Cyclical – 0.1%
Smithfield Foods, Inc. 3.00%, 10/15/2030(a)			155		123,763
Energy – 0.5%
Continental Resources, Inc./OK 5.75%, 01/15/2031(a)			41		39,957
Ecopetrol SA 4.625%, 11/02/2031			15		11,145
5.375%, 06/26/2026			55		51,915
5.875%, 11/02/2051			7		4,427
6.875%, 04/29/2030			45		40,106
8.875%, 01/13/2033			13		12,569
Var Energi ASA 7.50%, 01/15/2028(a)			282		298,122
					458,241
Technology – 0.4%
Entegris Escrow Corp. 4.75%, 04/15/2029(a)			112		104,187
Jabil, Inc. 5.45%, 02/01/2029			33		33,196
Kyndryl Holdings, Inc. 2.05%, 10/15/2026			140		122,588

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Western Digital Corp. 4.75%, 02/15/2026	U.S.$		116	$	110,300
					370,271
Transportation - Services – 0.3%
ERAC USA Finance LLC 4.599%, 05/01/2028(a)			266		265,354
					2,862,525
Utility – 0.2%
Electric – 0.2%
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(a)			200		148,975
Total Corporates - Investment Grade (cost $11,267,611)					11,181,672
CORPORATES - NON-INVESTMENT GRADE – 8.3%
Industrial – 8.1%
Basic – 0.1%
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(a)			10		8,241
Sealed Air Corp./Sealed Air Corp. US 6.125%, 02/01/2028(a)			27		27,419
WR Grace Holdings LLC 4.875%, 06/15/2027(a)			72		68,492
					104,152
Capital Goods – 0.7%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a)			200		188,592
Chart Industries, Inc. 7.50%, 01/01/2030(a)			25		25,786
Eco Material Technologies, Inc. 7.875%, 01/31/2027(a)			92		88,250
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			61		60,390
LSB Industries, Inc. 6.25%, 10/15/2028(a)(f)			110		97,151
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		107,754
					567,923
Communications - Media – 1.0%
AMC Networks, Inc. 4.75%, 08/01/2025	U.S.$		181		167,791

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(a)	U.S.$		26	$	21,929
5.125%, 05/01/2027(a)			59		55,793
Clear Channel Outdoor Holdings, Inc. 5.125%, 08/15/2027(a)			60		54,197
CSC Holdings LLC 7.50%, 04/01/2028(a)			200		125,454
DISH DBS Corp. 5.25%, 12/01/2026(a)			178		135,860
5.75%, 12/01/2028(a)			32		22,809
5.875%, 11/15/2024			53		43,920
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(a)			56		49,748
Radiate Holdco LLC/Radiate Finance, Inc. 4.50%, 09/15/2026(a)			85		66,526
Sirius XM Radio, Inc. 4.00%, 07/15/2028(a)			62		52,400
5.00%, 08/01/2027(a)			82		75,439
					871,866
Communications - Telecommunications – 0.0%
Consolidated Communications, Inc. 5.00%, 10/01/2028(a)			35		25,517
Consumer Cyclical - Automotive – 0.5%
Jaguar Land Rover Automotive PLC 7.75%, 10/15/2025(a)			217		215,633
ZF North America Capital, Inc. 7.125%, 04/14/2030(a)			167		172,456
					388,089
Consumer Cyclical - Entertainment – 1.2%
Carnival Corp.
4.00%, 08/01/2028(a)			36		31,214
5.75%, 03/01/2027(a)			62		51,019
10.50%, 02/01/2026(a)			153		159,753
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a)			29		28,926
Lindblad Expeditions LLC 6.75%, 02/15/2027(a)			28		26,495
NCL Corp. Ltd. 5.875%, 03/15/2026(a)			33		28,376
5.875%, 02/15/2027(a)			268		252,914
8.375%, 02/01/2028(a)			57		57,480

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(a)	U.S.$		42	$	37,323
5.50%, 08/31/2026(a)			31		28,442
7.25%, 01/15/2030(a)			20		20,064
11.50%, 06/01/2025(a)			47		49,862
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(a)			20		20,300
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			12		10,293
13.00%, 05/15/2025(a)			16		16,847
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			14		11,927
VOC Escrow Ltd. 5.00%, 02/15/2028(a)			226		201,289
					1,032,524
Consumer Cyclical - Other – 0.4%
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(a)			86		78,796
Caesars Entertainment, Inc. 7.00%, 02/15/2030(a)			40		40,386
Churchill Downs, Inc. 4.75%, 01/15/2028(a)			59		55,677
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			85		77,331
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)			9		7,880
5.00%, 06/01/2029(a)			45		40,724
MGM Resorts International 4.75%, 10/15/2028			7		6,506
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028			11		10,062
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(a)			15		14,966
Travel + Leisure Co. 6.625%, 07/31/2026(a)			20		19,966
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a)			33		31,708
					384,002
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(a)			17		15,933
4.375%, 01/15/2028(a)			35		32,847
					48,780

20    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.5%
Bath & Body Works, Inc. 7.50%, 06/15/2029	U.S.$		64	$	65,149
9.375%, 07/01/2025(a)			6		6,430
eG Global Finance PLC 4.375%, 02/07/2025(a)	EUR		144		147,868
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)	U.S.$		73		60,096
Rite Aid Corp. 7.50%, 07/01/2025(a)			9		6,189
Staples, Inc. 7.50%, 04/15/2026(a)			15		12,671
Wolverine World Wide, Inc. 4.00%, 08/15/2029(a)			169		140,399
					438,802
Consumer Non-Cyclical – 0.7%
Elanco Animal Health, Inc. 6.65%, 08/28/2028(f)			173		168,341
Embecta Corp. 5.00%, 02/15/2030(a)			48		41,402
Legacy LifePoint Health LLC 4.375%, 02/15/2027(a)			114		97,044
Medline Borrower LP 3.875%, 04/01/2029(a)			26		22,745
Newell Brands, Inc. 4.70%, 04/01/2026(f)			26		24,828
4.875%, 06/01/2025			7		6,818
6.375%, 09/15/2027			53		52,139
6.625%, 09/15/2029			53		52,388
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			7		5,824
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			39		27,343
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			81		72,573
					571,445
Energy – 0.4%
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			8		8,082
CITGO Petroleum Corp. 7.00%, 06/15/2025(a)			33		32,832
Civitas Resources, Inc. 5.00%, 10/15/2026(a)			30		28,335

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Crescent Energy Finance LLC 7.25%, 05/01/2026(a)	U.S.$		28	$	26,800
Genesis Energy LP/Genesis Energy Finance Corp. 7.75%, 02/01/2028			15		14,782
8.00%, 01/15/2027			21		20,961
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			12		11,317
Nabors Industries, Inc. 7.375%, 05/15/2027(a)			11		10,671
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			75		71,575
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			44		42,356
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			40		38,575
					306,286
Other Industrial – 0.1%
Ritchie Bros Holdings, Inc. 6.75%, 03/15/2028(a)			78		80,712
Services – 1.1%
ADT Security Corp. (The) 4.875%, 07/15/2032(a)			7		6,094
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(a)			57		54,934
ANGI Group LLC 3.875%, 08/15/2028(a)			260		203,172
APX Group, Inc. 6.75%, 02/15/2027(a)			53		53,067
Aramark Services, Inc. 5.00%, 02/01/2028(a)			33		31,390
Block, Inc. 2.75%, 06/01/2026			36		32,549
Garda World Security Corp. 7.75%, 02/15/2028(a)			103		103,515
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			50		33,802
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)			78		49,142
Neptune Bidco US, Inc. 9.29%, 04/15/2029(a)			108		101,655

22    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)	U.S.$		23	$	20,616
6.25%, 01/15/2028(a)			82		76,837
Sabre GLBL, Inc. 9.25%, 04/15/2025(a)			84		77,479
11.25%, 12/15/2027(a)			35		30,711
ZipRecruiter, Inc. 5.00%, 01/15/2030(a)			63		54,930
					929,893
Technology – 0.5%
Gen Digital, Inc. 6.75%, 09/30/2027(a)			42		42,330
NCR Corp. 5.00%, 10/01/2028(a)			105		91,616
Presidio Holdings, Inc. 4.875%, 02/01/2027(a)			56		53,037
8.25%, 02/01/2028(a)			2		1,884
Rackspace Technology Global, Inc. 3.50%, 02/15/2028(a)			105		43,539
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			214		161,964
Virtusa Corp. 7.125%, 12/15/2028(a)			10		8,061
					402,431
Transportation - Airlines – 0.3%
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)			44		43,225
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			94		87,490
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			134		135,643
					266,358
Transportation - Services – 0.5%
Albion Financing 1 SARL/Aggreko Holdings, Inc. 6.125%, 10/15/2026(a)			200		181,554
Avis Budget Finance PLC 4.125%, 11/15/2024(a)	EUR		131		142,944
Loxam SAS 4.50%, 02/15/2027(a)			100		104,209
					428,707
					6,847,487

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.2%
Banking – 0.0%
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(a)	U.S.$		35	$	31,326
7.00%, 01/15/2026(a)			7		5,883
					37,209
Brokerage – 0.1%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			52		51,920
Finance – 0.1%
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			62		55,030
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			53		21,073
SLM Corp. 3.125%, 11/02/2026			23		20,112
					96,215
					185,344
Utility – 0.0%
Other Utility – 0.0%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(a)			25		24,007
Total Corporates - Non-Investment Grade (cost $7,499,084)					7,056,838
COLLATERALIZED MORTGAGE OBLIGATIONS – 5.7%
Risk Share Floating Rate – 5.6%
Bellemeade Re Ltd. Series 2019-1A, Class M2 7.72% (LIBOR 1 Month + 2.70%), 03/25/2029(a)(e)			139		139,587
Series 2019-4A, Class M2 7.87% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(e)			150		150,259
Series 2022-1, Class M1B 6.965% (SOFR + 2.15%), 01/26/2032(a)(e)			193		189,122
Series 2022-2, Class M1A 8.824% (SOFR + 4.00%), 09/27/2032(a)(e)			200		203,082
Connecticut Avenue Securities Trust Series 2019-R02, Class 1M2 7.32% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(e)			1		508

24    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-R03, Class 1M2 7.17% (LIBOR 1 Month + 2.15%), 09/25/2031(a)(e)	U.S.$		1	$	1,033
Series 2023-R01, Class 1M1 7.224% (SOFR + 2.40%), 12/25/2042(a)(e)			350		351,488
Series 2023-R02, Class 1M1 7.124% (SOFR + 2.30%), 01/25/2043(a)(e)			369		370,711
Eagle Re Ltd. Series 2021-2, Class M1B 6.865% (SOFR + 2.05%), 04/25/2034(a)(e)			150		149,212
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA1, Class M3 9.72% (LIBOR 1 Month + 4.70%), 03/25/2028(e)			74		76,756
Series 2019-DNA4, Class M2 6.97% (LIBOR 1 Month + 1.95%), 10/25/2049(a)(e)			2		1,635
Series 2020-DNA1, Class M2 6.72% (LIBOR 1 Month + 1.70%), 01/25/2050(a)(e)			24		23,495
Series 2021-DNA5, Class M2 6.465% (SOFR + 1.65%), 01/25/2034(a)(e)			59		58,373
Series 2021-DNA6, Class M2 6.315% (SOFR + 1.50%), 10/25/2041(a)(e)			150		144,469
Series 2021-DNA7, Class M1 5.665% (SOFR + 0.85%), 11/25/2041(a)(e)			203		200,673
Series 2021-DNA7, Class M2 6.615% (SOFR + 1.80%), 11/25/2041(a)(e)			225		215,447
Series 2021-HQA4, Class M1 5.765% (SOFR + 0.95%), 12/25/2041(a)(e)			223		215,102
Series 2022-DNA2, Class M1B 7.215% (SOFR + 2.40%), 02/25/2042(a)(e)			144		141,842
Series 2022-HQA1, Class M1B 8.315% (SOFR + 3.50%), 03/25/2042(a)(e)			20		20,236
Series 2022-HQA2, Class M1B 8.815% (SOFR + 4.00%), 07/25/2042(a)(e)			184		188,366
Series 2022-HQA3, Class M1A 7.115% (SOFR + 2.30%), 08/25/2042(a)(e)			132		132,709
Series 2023-DNA1, Class M1A 6.924% (SOFR + 2.10%), 03/25/2043(a)(e)			379		379,931
Series 2023-DNA2, Class M1A 6.899% (SOFR + 2.10%), 04/25/2043(a)(e)			120		120,298
Federal National Mortgage Association Connecticut Avenue Securities Series 2015-C02, Class 1M2 9.02% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			16		16,719

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C03, Class 1M2 10.02% (LIBOR 1 Month + 5.00%), 07/25/2025(e)	U.S.$		19	$	20,528
Series 2015-C04, Class 2M2 10.57% (LIBOR 1 Month + 5.55%), 04/25/2028(e)			2		2,352
Series 2016-C01, Class 2M2 11.97% (LIBOR 1 Month + 6.95%), 08/25/2028(e)			8		8,340
Series 2016-C04, Class 1B 15.27% (LIBOR 1 Month + 10.25%), 01/25/2029(e)			118		125,674
Series 2021-R02, Class 2M2 6.815% (SOFR + 2.00%), 11/25/2041(a)(e)			230		219,937
Series 2023-R03, Class 2M1 7.315% (SOFR + 2.50%), 04/25/2043(a)(e)			250		250,625
Home Re Ltd. Series 2020-1, Class M2 10.27% (LIBOR 1 Month + 5.25%), 10/25/2030(a)(e)			150		152,492
Series 2021-1, Class M1B 6.57% (LIBOR 1 Month + 1.55%), 07/25/2033(a)(e)			91		90,431
Oaktown Re II Ltd. Series 2018-1A, Class M1 6.57% (LIBOR 1 Month + 1.55%), 07/25/2028(a)(e)			19		18,772
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 7.768% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(e)			27		26,871
Series 2019-3R, Class A 8.718% (LIBOR 1 Month + 3.70%), 11/27/2031(a)(e)			14		13,653
Radnor Re Ltd. Series 2019-1, Class M1B 6.97% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(e)			96		95,744
Series 2020-1, Class M1C 6.77% (LIBOR 1 Month + 1.75%), 01/25/2030(a)(e)			150		148,575
Triangle Re Ltd. Series 2021-3, Class M1A 6.715% (SOFR + 1.90%), 02/25/2034(a)(e)			92		91,575
					4,756,622

26    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Agency Fixed Rate – 0.1%
Federal Home Loan Mortgage Corp. REMICs Series 4913, Class IO 6.00%, 04/15/2041(g)	U.S.$		69	$	14,002
Federal National Mortgage Association REMICs Series 2012-120, Class CI 3.50%, 12/25/2031(g)			107		3,269
Series 2016-26, Class IO 5.00%, 05/25/2046(g)			156		23,671
Series 2016-31, Class IO 5.00%, 06/25/2046(g)			208		32,631
Series 2016-64, Class BI 5.00%, 09/25/2046(g)			25		3,677
					77,250
Agency Floating Rate – 0.0%
Federal Home Loan Mortgage Corp. REMICs Series 4372, Class JS 1.152% (6.10% – LIBOR 1 Month), 08/15/2044(e)(h)			87		9,098
Federal National Mortgage Association REMICs Series 2012-17, Class ES 1.53% (6.55% – LIBOR 1 Month), 03/25/2041(e)(h)			66		2,663
Series 2012-17, Class SE 0.93% (5.95% – LIBOR 1 Month), 03/25/2042(e)(h)			64		8,550
Series 2019-25, Class SA 1.03% (6.05% – LIBOR 1 Month), 06/25/2049(e)(h)			43		5,000
Series 2019-42, Class SQ 1.03% (6.05% – LIBOR 1 Month), 08/25/2049(e)(h)			37		4,798
					30,109
Total Collateralized Mortgage Obligations (cost $4,874,774)					4,863,981
MORTGAGE PASS-THROUGHS – 4.4%
Agency Fixed Rate 30-Year – 4.4%
Uniform Mortgage-Backed Security Series 2023 4.50%, 05/12/2052, TBA (cost $3,750,254)			3,805		3,718,321

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
GOVERNMENTS - SOVEREIGN AGENCIES – 4.2%
Canada – 4.2%
Canada Housing Trust No. 1 1.95%, 12/15/2025(a) (cost $4,032,418)	CAD		5,065		$	3,579,441
ASSET-BACKED SECURITIES – 3.3%
Other ABS - Fixed Rate – 1.9%
Affirm Asset Securitization Trust Series 2023-A, Class A 6.61%, 01/18/2028(a)	U.S.$		383			381,114
BHG Securitization Trust Series 2023-A, Class A 5.55%, 04/17/2036(a)			160			158,515
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT (62.813)%, 11/15/2044(i)			0	**		8
Dext ABS LLC Series 2023-1, Class A2 5.99%, 03/15/2032(a)			210			209,979
Lendmark Funding Trust Series 2023-1A, Class A 7.37%, 05/20/2033(a)			210			209,961
Pagaya AI Debt Trust Series 2023-1, Class A2 7.556%, 07/15/2030(a)			109			108,860
Series 2023-3, Class A 7.60%, 12/16/2030(a)			100			100,619
Theorem Funding Trust Series 2022-1A, Class A 1.85%, 02/15/2028(a)			74			72,502
Series 2022-3A, Class A 7.60%, 04/15/2029(a)			216			217,769
Series 2023-1A, Class A 7.58%, 04/15/2029(a)			200			200,224
						1,659,551
Autos - Fixed Rate – 1.4%
ACM Auto Trust Series 2023-1A, Class A 6.61%, 01/22/2030(a)			132			131,782
Exeter Automobile Receivables Trust Series 2018-4A, Class E 5.38%, 07/15/2025(a)			115			114,838
Series 2019-1A, Class E 5.20%, 01/15/2026(a)			40			39,825

28    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
FHF Trust Series 2023-1A, Class A2 6.57%, 06/15/2028(a)	U.S.$		210	$	210,245
Foursight Capital Automobile Receivables Trust Series 2023-1, Class A2 5.43%, 10/15/2026(a)			180		179,007
Lendbuzz Securitization Trust Series 2023-1A, Class A2 6.92%, 08/15/2028(a)			190		190,324
Tricolor Auto Securitization Trust Series 2023-1A, Class A 6.48%, 08/17/2026(a)			177		176,827
United Auto Credit Securitization Trust Series 2023-1, Class A 5.57%, 07/10/2025(a)			131		131,189
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(a)			14		13,988
					1,188,025
Total Asset-Backed Securities (cost $2,854,504)					2,847,576
COLLATERALIZED LOAN OBLIGATIONS – 2.7%
CLO - Floating Rate – 2.7%
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 8.36% (LIBOR 3 Month + 3.10%), 04/15/2034(a)(e)			250		227,324
Dryden 98 CLO Ltd. Series 2022-98A, Class D 8.149% (SOFR + 3.10%), 04/20/2035(a)(e)			250		220,553
Galaxy 30 CLO Ltd. Series 2022-30A, Class D 8.336% (SOFR + 3.35%), 04/15/2035(a)(e)			250		224,154
New Mountain CLO 3 Ltd. Series CLO-3A, Class D 8.60% (LIBOR 3 Month + 3.35%), 10/20/2034(a)(e)			250		223,827
Palmer Square CLO Ltd. Series 2021-3A, Class D 8.21% (LIBOR 3 Month + 2.95%), 01/15/2035(a)(e)			250		230,866

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
PPM CLO 5 Ltd. Series 2021-5A, Class D 8.312% (LIBOR 3 Month + 3.05%), 10/18/2034(a)(e)	U.S.$		250	$	212,447
Regatta XX Funding Ltd. Series 2021-2A, Class D 8.36% (LIBOR 3 Month + 3.10%), 10/15/2034(a)(e)			250		233,641
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 8.35% (LIBOR 3 Month + 3.10%), 01/20/2035(a)(e)			250		227,166
Rockford Tower CLO Ltd. Series 2021-2A, Class D 8.50% (LIBOR 3 Month + 3.25%), 07/20/2034(a)(e)			250		223,021
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 8.40% (LIBOR 3 Month + 3.15%), 01/20/2034(a)(e)			250		235,050
Total Collateralized Loan Obligations (cost $2,485,209)					2,258,049
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.5%
Non-Agency Fixed Rate CMBS – 2.2%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.652%, 03/10/2037(a)			100		83,960
BANK Series 2020-BN28, Class XA 1.879%, 03/15/2063(g)			2,036		198,745
Series 2020-BN29, Class XA 1.442%, 11/15/2053(g)			981		71,835
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.469%, 05/15/2052(g)			960		57,925
BBCMS Mortgage Trust Series 2017-C1, Class XA 1.625%, 02/15/2050(g)			1,301		57,531
CD Mortgage Trust Series 2016-CD1, Class XA 1.499%, 08/10/2049(g)			1,498		48,710

30    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.767%, 05/10/2058(g)	U.S.$		82	$	2,949
Series 2017-C8, Class XA 1.643%, 06/15/2050(g)			275		12,399
Citigroup Commercial Mortgage Trust Series 2017-P7, Class XA 1.265%, 04/14/2050(g)			815		27,650
Commercial Mortgage Trust Series 2012-CR5, Class C 4.483%, 12/10/2045(a)			60		55,831
Series 2014-CR16, Class D 5.08%, 04/10/2047(a)			100		85,175
Series 2016-DC2, Class XA 1.078%, 02/10/2049(g)			2,397		48,086
GS Mortgage Securities Trust Series 2013-GC13, Class D 4.207%, 07/10/2046(a)			100		39,999
Series 2016-GS3, Class XA 1.319%, 10/10/2049(g)			1,282		40,211
Series 2017-GS5, Class XA 0.975%, 03/10/2050(g)			1,414		36,150
Series 2017-GS7, Class XA 1.228%, 08/10/2050(g)			3,272		116,808
Series 2019-GC39, Class XA 1.279%, 05/10/2052(g)			4,631		205,787
JPMBB Commercial Mortgage Securities Trust Series 2013-C14, Class D 4.701%, 08/15/2046(a)			75		32,344
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9, Class G 3.902%, 12/15/2047(a)			100		68,015
Series 2013-LC11, Class B 3.499%, 04/15/2046			110		95,425
UBS Commercial Mortgage Trust Series 2017-C1, Class XA 1.687%, 06/15/2050(g)			1,044		49,355
Series 2017-C2, Class XA 1.222%, 08/15/2050(g)			2,020		72,711
Series 2018-C14, Class XA 1.058%, 12/15/2051(g)			811		31,314
Series 2018-C15, Class XA 1.069%, 12/15/2051(g)			594		23,038
Series 2019-C18, Class XA 1.148%, 12/15/2052(g)			1,257		56,105

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
UBS-Barclays Commercial Mortgage Trust Series 2013-C6, Class D 4.552%, 04/10/2046(a)	U.S.$		81	$	66,280
Wells Fargo Commercial Mortgage Trust Series 2016-LC24, Class XA 1.749%, 10/15/2049(g)			776		32,505
Series 2018-C48, Class XA 1.109%, 01/15/2052(g)			763		30,685
Series 2019-C52, Class XA 1.749%, 08/15/2052(g)			931		66,150
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class D 4.991%, 06/15/2044(a)			60		51,433
Series 2011-C4, Class E 4.991%, 06/15/2044(a)			25		17,365
					1,882,476
Non-Agency Floating Rate CMBS – 0.3%
BFLD Trust Series 2019-DPLO, Class E 7.245% (SOFR + 2.35%), 10/15/2034(a)(e)			10		9,798
Great Wolf Trust Series 2019-WOLF, Class D 6.938% (SOFR + 2.05%), 12/15/2036(a)(e)			45		43,866
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 9.198% (LIBOR 1 Month + 4.25%), 05/15/2036(a)(e)			133		121,777
Starwood Retail Property Trust Series 2014-STAR, Class A 6.418% (LIBOR 1 Month + 1.47%), 11/15/2027(a)(e)			89		63,373
					238,814
Total Commercial Mortgage-Backed Securities (cost $2,345,025)					2,121,290
BANK LOANS – 1.2%
Industrial – 1.0%
Capital Goods – 0.1%
ACProducts Holdings, Inc. 9.409% (LIBOR 3 Month + 4.25%), 05/17/2028(j)			100		79,193
Chariot Buyer LLC 8.275% (LIBOR 1 Month + 3.25%), 11/03/2028(j)			10		9,569
					88,762

32    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Media – 0.0%
Coral-US Co-Borrower LLC 7.948% (LIBOR 1 Month + 3.00%), 10/15/2029(j)	U.S.$		30	$	29,470
Univision Communications, Inc. 7.775% (LIBOR 1 Month + 2.75%), 03/15/2024(j)			2		1,653
					31,123
Communications - Telecommunications – 0.1%
Crown Subsea Communications Holding, Inc. 9.668% (SOFR 1 Month + 4.75%), 04/27/2027(j)(k)			40		39,668
Directv Financing, LLC 10.025% (LIBOR 1 Month + 5.00%), 08/02/2027(j)			26		24,872
Zacapa SARL 8.898% (SOFR 3 Month + 4.00%), 03/22/2029(j)			43		41,947
					106,487
Consumer Cyclical - Entertainment – 0.2%
Seaworld Parks & Entertainment, Inc. 8.063% (LIBOR 1 Month + 3.00%), 08/25/2028(j)			141		140,151
Consumer Cyclical - Retailers – 0.0%
Restoration Hardware, Inc. 8.332% (SOFR 1 Month + 3.25%), 10/20/2028(j)			40		36,898
Consumer Non-Cyclical – 0.1%
Kronos Acquisition Holdings, Inc. 8.703% (LIBOR 3 Month + 3.75%), 12/22/2026(j)			39		38,074
Energy – 0.2%
GIP II Blue Holding, L.P. 9.659% (LIBOR 3 Month + 4.50%), 09/29/2028(j)			82		81,457
Parkway Generation, LLC 9.900% (SOFR 3 Month + 4.75%), 02/18/2029(j)			118		113,729
					195,186

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Other Industrial – 0.1%
American Tire Distributors, Inc. 11.488% (SOFR 3 Month + 6.25%), 10/20/2028(j)	U.S.$		60		$	50,391
Rockwood Service Corporation 9.025% (LIBOR 1 Month + 4.00%), 01/23/2027(j)			3			2,975
						53,366
Technology – 0.2%
Amentum Government Services Holdings LLC 9.025% (LIBOR 1 Month + 4.00%), 01/29/2027(j)(k)			3			2,815
Ascend Learning, LLC 10.832% (SOFR 1 Month + 5.75%), 12/10/2029(j)			30			25,988
Banff Guarantor, Inc. 10.525% (LIBOR 1 Month + 5.50%), 02/27/2026(j)			10			9,646
Boxer Parent Company, Inc. 8.775% (LIBOR 1 Month + 3.75%), 10/02/2025(j)			27			26,388
Endurance International Group Holdings, Inc. 8.792% (LIBOR 3 Month + 3.50%), 02/10/2028(j)(k)			88			81,899
FINThrive Software Intermediate Holdings, Inc. 11.775% (LIBOR 1 Month + 6.75%), 12/17/2029(j)			20			14,025
Loyalty Ventures, Inc. 11.50% (PRIME 3 Month + 3.50%), 11/03/2027(j)(l)(m)			77			7,227
Peraton Corp. 8.832% (SOFR 1 Month + 3.75%), 02/01/2028(j)			19			18,825
Presidio Holdings, Inc.
8.582% (SOFR 1 Month + 3.50%), 01/22/2027(j)			0	**		344
8.645% (SOFR 3 Month + 3.50%), 01/22/2027(j)			9			8,816
						195,973
						886,020
Financial Institutions – 0.2%
Finance – 0.1%
Orbit Private Holdings I Ltd. 9.541% (SOFR 6 Month + 4.50%), 12/11/2028(j)			30			29,588

34    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.1%
Asurion, LLC 9.332% (SOFR 1 Month + 4.25%), 08/19/2028(j)	U.S.$		70	$	64,960
Cross Financial Corp. 9.063% (LIBOR 1 Month + 4.00%), 09/15/2027(j)			49		48,880
					113,840
					143,428
Utility – 0.0%
Electric – 0.0%
Granite Generation LLC 8.775% (LIBOR 1 Month + 3.75%), 11/09/2026(j)			24		22,347
Total Bank Loans (cost $1,175,484)					1,051,795
EMERGING MARKETS - CORPORATE BONDS – 0.9%
Industrial – 0.9%
Basic – 0.1%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			28		26,040
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			41		30,976
					57,016
Capital Goods – 0.1%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			115		110,687
Consumer Cyclical - Other – 0.3%
Wynn Macau Ltd. 5.50%, 01/15/2026(a)			300		277,875
Consumer Non-Cyclical – 0.0%
Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL 5.25%, 04/27/2029(a)			21		19,593
Energy – 0.4%
Acu Petroleo Luxembourg SARL 7.50%, 01/13/2032(a)			248		215,827
Leviathan Bond Ltd. 5.75%, 06/30/2023(a)			26		25,811

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.125%, 06/30/2025(a)	U.S.$		23	$	22,183
6.50%, 06/30/2027(a)			30		28,412
					292,233
Total Emerging Markets - Corporate Bonds (cost $760,483)					757,404
EMERGING MARKETS - SOVEREIGNS – 0.5%
Angola – 0.2%
Angolan Government International Bond 9.50%, 11/12/2025(a)			200		197,350
Ecuador – 0.0%
Ecuador Government International Bond 2.50%, 07/31/2035(a)(f)			21		7,809
El Salvador – 0.1%
El Salvador Government International Bond 8.625%, 02/28/2029(a)			90		52,110
Ivory Coast – 0.1%
Ivory Coast Government International Bond 5.875%, 10/17/2031(a)	EUR		100		89,481
Lebanon – 0.0%
Lebanon Government International Bond 6.10%, 10/04/2022(a)(l)(n)	U.S.$		16		923
Senegal – 0.1%
Senegal Government International Bond 4.75%, 03/13/2028(a)	EUR		100		90,962
Ukraine – 0.0%
Ukraine Government International Bond 7.75%, 09/01/2027(a)(f)	U.S.$		100		17,269
Total Emerging Markets - Sovereigns (cost $675,646)					455,904
QUASI-SOVEREIGNS – 0.3%
Quasi-Sovereign Bonds – 0.3%
Mexico – 0.3%
Comision Federal de Electricidad 4.688%, 05/15/2029(a)			200		180,038
Petroleos Mexicanos 5.35%, 02/12/2028			32		26,526
					206,564

36    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ukraine – 0.0%
State Agency of Roads of Ukraine 6.25%, 06/24/2030(f)(i)	U.S.$		200	$	32,100
Total Quasi-Sovereigns (cost $408,920)					238,664
		Shares
WARRANTS – 0.0%
Athabasca Oil Corp., expiring 11/01/2026(k)(l) (cost $0)			50		93
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 3.4%
U.S. Treasury Bills – 2.9%
U.S. Treasury Bill Zero Coupon, 07/27/2023	U.S.$		511		504,758
Zero Coupon, 08/10/2023			901		888,659
Zero Coupon, 09/14/2023			188		184,846
Zero Coupon, 09/28/2023			927		908,696
Total U.S. Treasury Bills (cost $2,488,550)					2,486,959
		Shares
Investment Companies – 0.5%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(o)(p)(q) (cost $447,251)			447,251		447,251
Total Short-Term Investments (cost $2,935,801)					2,934,210
Total Investments – 110.6% (cost $96,795,574)					94,222,985
Other assets less liabilities – (10.6)%					(9,028,175	)
Net Assets – 100.0%				$	85,194,810

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    37

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. T-Note 5 Yr (CBT) Futures		12		June 2023	$	1,316,906	$	2,750
Sold Contracts
10 Yr Canadian Bond Futures		9		June 2023		837,524		(33,426	)
Euro-BOBL Futures		5		June 2023		649,956		(15,487	)
Euro-Schatz Futures		2		June 2023		232,887		(2,129	)
U.S. 10 Yr Ultra Futures		10		June 2023		1,214,531		(23,936	)
U.S. T-Note 2 Yr (CBT) Futures		13		June 2023		2,680,133		(25,814	)
U.S. T-Note 10 Yr (CBT) Futures		37		June 2023		4,262,516		(129,434	)
							$	(227,476	)

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		EUR	1,404		USD	1,495		05/11/2023	$	(52,707	)
Morgan Stanley Capital Services, Inc.		CAD	4,872		USD	3,571		06/09/2023		(27,519	)
State Street Bank & Trust Co.		USD	293		EUR	275		05/11/2023		9,401
State Street Bank & Trust Co.		GBP	111		USD	136		05/24/2023		(3,197	)
State Street Bank & Trust Co.		NZD	78		USD	48		06/22/2023		163
									$	(73,859	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		5.00	%		Quarterly		4.65	%		USD	3,899	$	76,370	$	32,428		$	43,942
iTraxxx Xover Series 39, 5 Year Index, 06/20/2028*		5.00			Quarterly		4.34			EUR	638		22,495		(3,293	)		25,788
												$	98,865	$	29,135		$	69,730

* Termination date

38    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	286	$	(59,057	)	$	(99,558	)	$	40,501
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	15		(3,071	)		(3,421	)		350
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	10		(2,126	)		(2,392	)		266
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	11		(2,244	)		(2,500	)		256
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6		(1,181	)		(1,435	)		254
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	14		(2,834	)		(1,103	)		(1,731	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,252	)		(1,646	)		(2,606	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	30		(6,260	)		(1,771	)		(4,489	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	45		(9,331	)		(2,621	)		(6,710	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	138		(22,294	)		(4,128	)		(18,166	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	89		(18,426	)		(18,218	)		(208	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	14		(2,835	)		(1,098	)		(1,737	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	229		(47,246	)		(26,811	)		(20,435	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	7		(1,417	)		(549	)		(868	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	154		(24,789	)		(14,766	)		(10,023	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	2		(354	)		(98	)		(256	)
												$	(207,717	)	$	(182,115	)	$	(25,602	)

* Termination date

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

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

1 Day SOFR

Maturity

USD

130

06/20/2023

$

(21,318

)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at April 30, 2023
HSBC Securities (USA), Inc.†		4.94	%		—	$	4,552,460
HSBC Securities (USA), Inc.†		4.94	%		—		3,043,405
HSBC Securities (USA), Inc.†		4.94	%		—		1,719,125
						$	9,314,990

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on April 30, 2023.

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	$	9,314,990	$	– 0 –	$	– 0 –	$	– 0 –	$	9,314,990

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $27,364,336 or 32.1% of net assets.

(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 reverse repurchase agreements.

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

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

(f) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

(g) IO – Interest Only.

(h) Inverse interest only security.

40    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(i) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.04% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT (62.813)%, 11/15/2044		10/09/2019	$	8	$	8		0.00	%
State Agency of Roads of Ukraine 6.25%, 06/24/2030		06/24/2021		200,000		32,100		0.04	%

(j) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at April 30, 2023.

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

(l) Non-income producing security.

(m) Defaulted.

(n) Defaulted matured security.

(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 AB at (800) 227-4618.

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

Currency Abbreviations:

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

NZD – New Zealand Dollar

USD – United States Dollar

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TBA – To Be Announced

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    41

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $96,348,323)	$	93,775,734
Affiliated issuers (cost $447,251)		447,251
Cash		11,245
Cash collateral due from broker		613,976
Foreign currencies, at value (cost $10,002)		10,085
Receivable for investment securities sold		2,003,234
Receivable for capital stock sold		1,660,290
Interest receivable		988,789
Receivable for variation margin on centrally cleared swaps		14,472
Unrealized appreciation on forward currency exchange contracts		9,564
Affiliated dividends receivable		1,078
Receivable due from Adviser		707
Total assets		99,536,425
Liabilities
Payable for reverse repurchase agreements		9,314,990
Payable for investment securities purchased		4,475,218
Market value on credit default swaps (net premiums received $182,115)		207,717
Dividends payable		89,092
Unrealized depreciation on forward currency exchange contracts		83,423
Payable for variation margin on futures		32,891
Unrealized depreciation on total return swaps		21,318
Payable for capital stock redeemed		7,035
Foreign capital gains tax payable		1,976
Directors’ fees payable		1,558
Transfer Agent fee payable		1,453
Distribution fee payable		628
Accrued expenses		104,316
Total liabilities		14,341,615
Net Assets	$	85,194,810
Composition of Net Assets
Capital stock, at par	$	9,593
Additional paid-in capital		92,004,799
Accumulated loss		(6,819,582	)
Net Assets	$	85,194,810

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

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	3,267,095		367,532	$	8.89	*
C	$	205,169		23,099	$	8.88
Advisor	$	81,722,546		9,202,588	$	8.88

* The maximum offering price per share for Class A shares was $9.09 which reflects a sales charge of 2.25%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	1,743,131
Dividends—Affiliated issuers		14,685
Other income		150		$	1,757,966
Expenses
Advisory fee (see Note B)		126,790
Distribution fee—Class A		3,211
Distribution fee—Class C		1,258
Transfer agency—Class A		661
Transfer agency—Class C		67
Transfer agency—Advisor Class		13,932
Custody and accounting		53,195
Administrative		50,882
Audit and tax		29,400
Registration fees		24,240
Legal		22,661
Printing		11,861
Directors’ fees		8,978
Miscellaneous		6,384
Total expenses before interest/bank overdraft expense		353,520
Interest/bank overdraft expense		223,207
Total expenses		576,727
Less: expenses waived and reimbursed by the Adviser (see Note B)		(186,386	)
Net expenses					390,341
Net investment income					1,367,625
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions					(3,774,688	)
Forward currency exchange contracts					(4,851	)
Futures					739,472
Swaps					560,020
Foreign currency transactions					(142,946	)
Net change in unrealized appreciation (depreciation) of:
Investments					5,750,487
Forward currency exchange contracts					(39,753	)
Futures					(845,897	)
Swaps					(176,979	)
Foreign currency denominated assets and liabilities					24,404
Net gain on investment and foreign currency transactions					2,089,269
Net Increase in Net Assets from Operations				$	3,456,894

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    43

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	1,367,625		$	1,287,861
Net realized loss on investment and foreign currency transactions		(2,622,993	)		(345,257	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		4,712,262			(6,635,271	)
Contributions from Affiliates (see Note B)		– 0	–		7,236
Net increase (decrease) in net assets from operations		3,456,894			(5,685,431	)
Distributions to Shareholders
Class A		(86,162	)		(173,022	)
Class C		(6,128	)		(17,051	)
Advisor Class		(1,878,640	)		(2,076,356	)
Capital Stock Transactions
Net increase		14,081,128			14,728,932
Total increase		15,567,092			6,777,072
Net Assets
Beginning of period		69,627,718			62,850,646
End of period	$	85,194,810		$	69,627,718

See notes to financial statements.

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STATEMENT OF CASH FLOWS

For the six months ended April 30, 2023 (unaudited)

Cash flows from operating activities
Net increase in net assets from operations				$	3,456,894
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(80,297,736	)
Purchases of short-term investments		(28,615,656	)
Proceeds from disposition of long-term investments		75,359,699
Proceeds from disposition of short-term investments		26,624,891
Net realized loss on investment transactions and foreign currency transactions		2,622,993
Net realized loss on forward currency exchange contracts		(4,851	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(4,712,262	)
Net accretion of bond discount and amortization of bond premium		206,149
Increase in receivable for investments sold		(1,927,560	)
Increase in interest receivable		(225,754	)
Decrease in affiliated dividends receivable		69
Decrease in receivable due from Adviser		18,044
Decrease in cash collateral due from broker		358,692
Increase in payable for investments purchased		1,921,153
Decrease in Transfer Agent fee payable		(40	)
Decrease in distribution fee payable		(295	)
Increase in Directors’ fee payable		32
Decrease in accrued expenses		(54,123	)
Payments on swaps, net		(100,035	)
Proceeds for exchange-traded derivatives settlements, net		284,629
Total adjustments					(8,541,961	)
Net cash provided by (used in) operating activities					(5,085,067	)
Cash flows from financing activities
Subscriptions of capital stock, net		11,467,730
Cash dividends paid (net of dividend reinvestments)†		(535,248	)
Repayment of reverse repurchase agreements		(5,748,316	)
Net cash provided by (used in) financing activities					5,184,166
Effect of exchange rate on cash					(118,542	)
Net decrease in cash					(19,443	)
Cash at beginning of period					40,773
Cash at end of period				$	21,330
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	1,394,677
Interest expense paid during the period	$	218,898

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 period.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    45

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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”), 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 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. Effective March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25% and purchases in amounts of $500,000 or more, or by certain group retirement plans, may have been subject to a 1%, 18-month contingent deferred sales charge, which may have been subject to waiver in certain circumstances. Prior to March 7, 2022, purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, which may be subject to waiver in certain circumstances. 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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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 11 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are

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NOTES TO FINANCIAL STATEMENTS (continued)

unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

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., 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)

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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.

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 April 30, 2023:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments – Treasuries

$

– 0

–

$

51,157,747

$

– 0

–

$

51,157,747

Corporates – Investment Grade

– 0

–

11,181,672

– 0

–

11,181,672

Corporates – Non-Investment Grade

– 0

–

7,056,838

– 0

–

7,056,838

Collateralized Mortgage Obligations

– 0

–

4,863,981

– 0

–

4,863,981

Mortgage Pass-Throughs

– 0

–

3,718,321

– 0

–

3,718,321

Governments – Sovereign Agencies

– 0

–

3,579,441

– 0

–

3,579,441

Asset-Backed Securities

209,961

2,637,615

– 0

–

2,847,576

Collateralized Loan Obligations

– 0

–

2,258,049

– 0

–

2,258,049

Commercial Mortgage-Backed Securities

– 0

–

2,121,290

– 0

–

2,121,290

Bank Loans

– 0

–

927,413

124,382

1,051,795

Emerging Markets – Corporate Bonds

– 0

–

757,404

– 0

–

757,404

Emerging Markets – Sovereigns

– 0

–

455,904

– 0

–

455,904

Quasi-Sovereigns

– 0

–

238,664

– 0

–

238,664

Warrants

– 0

–

– 0

–

93

93

Short-Term Investments:

U.S. Treasury Bills

– 0

–

2,486,959

– 0

–

2,486,959

Investment Companies

447,251

– 0

–

– 0

–

447,251

Total Investments in Securities

657,212

93,441,298

124,475

94,222,985

Other Financial Instruments(a):

Assets:

Futures

2,750

– 0

–

– 0

–

2,750

(b)

Forward Currency Exchange Contracts

– 0

–

9,564

– 0

–

9,564

Centrally Cleared Credit Default Swaps

– 0

–

98,865

– 0

–

98,865

(b)

Liabilities:

Futures

(230,226

)

– 0

–

– 0

–

(230,226

)(b)

Forward Currency Exchange Contracts

– 0

–

(83,423

)

– 0

–

(83,423

)

Credit Default Swaps

– 0

–

(207,717

)

– 0

–

(207,717

)

Total Return Swaps

– 0

–

(21,318

)

– 0

–

(21,318

)

Reverse Repurchase Agreements

(9,314,990

)

– 0

–

– 0

–

(9,314,990

)

Total

$

(8,885,254

)

$

93,237,269

$

124,475

$

84,476,490

(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, written options and written swaptions which are valued at market value.

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NOTES TO FINANCIAL STATEMENTS (continued)

(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.

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 two 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 the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily.

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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 .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 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 six months ended April 30, 2023, such reimbursement/waivers amounted to $135,152. The Expense Caps may not be terminated by the Adviser before January 31, 2024. Any

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NOTES TO FINANCIAL STATEMENTS (continued)

fees waived and expenses borne by the Adviser through January 20, 2021 may be reimbursed by 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 $63,883 for the year ended October 31, 2021. 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 six months ended April 30, 2023, the Adviser voluntarily agreed to waive such fees in the amount of $50,882.

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 $8,998 for the six months ended April 30, 2023.

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 $557 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 six months ended April 30, 2023.

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $352.

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NOTES TO FINANCIAL STATEMENTS (continued)

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	921	$	24,535	$	25,009	$	447	$	15

During the year ended October 31, 2022, the Adviser reimbursed the Fund $7,236 for trading losses incurred due to a trade entry error.

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 .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. 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 $1,106 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 six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	14,141,835	$	10,127,030
U.S. government securities		66,145,961		64,553,195

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The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	564,880
Gross unrealized depreciation		(3,415,994	)
Net unrealized depreciation	$	(2,851,114	)

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 for non-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.

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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 six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-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 six months ended April 30, 2023, the Fund held forward currency exchange contracts for 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 for non-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

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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 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 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

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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 six months ended April 30, 2023, the Fund held interest rate swaps for non-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

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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 the 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 six months ended April 30, 2023, the Fund held credit default swaps for non-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

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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 six months ended April 30, 2023, the Fund held total return 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.

During the six months ended April 30, 2023, 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 for variation margin on futures	$	2,750	*	Payable for variation margin on futures	$	230,226	*
Credit contracts	Receivable for variation margin on centrally cleared swaps		69,730	*

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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	$	9,564	Unrealized depreciation on forward currency exchange contracts	$	83,423
Credit contracts				Market value on credit default swaps		207,717
Credit contracts				Unrealized depreciation on total return swaps		21,318
Total		$	82,044		$	542,684

* 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	$	739,472		$	(845,897	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		(4,851	)		(39,753	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(10,060	)		10,611
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		570,080			(187,590	)
Total		$	1,294,641		$	(1,062,629	)

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The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Futures:
Average notional amount of buy contracts	$	1,517,249	(a)
Average notional amount of sale contracts	$	11,814,466
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	252,462	(a)
Average principal amount of sale contracts	$	5,200,780
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	763,258	(a)
Credit Default Swaps:
Average notional amount of sale contracts	$	1,283,867
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	5,953,205
Total Return Swaps:
Average notional amount	$	150,000

(a) Positions were open for four 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 April 30, 2023. 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

State Street Bank & Trust Co.

$

9,564

$

(3,197

)

$

– 0

–

$

– 0

–

$

6,367

Total

$

9,564

$

(3,197

)

$

– 0

–

$

– 0

–

$

6,367

^

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

$

52,707

$

– 0

–

$

– 0

–

$

– 0

–

$

52,707

Citigroup Global Markets, Inc.

90,356

– 0

–

– 0

–

(90,356

)

– 0

–

Credit Suisse International

22,294

– 0

–

– 0

–

(22,294

)

– 0

–

Goldman Sachs International

89,825

– 0

–

– 0

–

– 0

–

89,825

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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
JPMorgan Securities, LLC	$	1,417	$	– 0	–	$	– 0	–	$	– 0	–	$	1,417
Morgan Stanley Capital Services, Inc./Morgan Stanley & Co. International PLC		52,662		– 0	–		– 0	–		– 0	–		52,662
State Street Bank & Trust Co.		3,197		(3,197	)		– 0	–		– 0	–		– 0	–
Total	$	312,458	$	(3,197	)	$	– 0	–	$	(112,650	)	$	196,611	^

* 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 in non-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.

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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 six months ended April 30, 2023, the Fund earned drop income of $3,807 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/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 six months ended April 30, 2023, the average amount of reverse repurchase agreements outstanding was $10,237,475 and the daily weighted average interest rate was 5.18%. At April 30, 2023, the Fund had reverse repurchase agreements outstanding in the amount of $9,314,990 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 April 30, 2023:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Securities (USA), Inc.	$	9,314,990	$	(7,630,139	)	$	1,684,851

† Including accrued interest.

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

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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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		33,828			159,760		$	299,905		$	1,490,085
Shares issued in reinvestment of dividends and distributions		7,147			15,651			63,348			147,338
Shares redeemed		(175,147	)		(231,832	)		(1,545,977	)		(2,212,710	)
Net decrease		(134,172	)		(56,421	)	$	(1,182,724	)	$	(575,287	)
Class C
Shares sold		1,857			1,337		$	16,467		$	12,177
Shares issued in reinvestment of dividends and distributions		585			1,520			5,183			14,464
Shares redeemed		(12,958	)		(43,026	)		(115,625	)		(389,257	)
Net decrease		(10,516	)		(40,169	)	$	(93,975	)	$	(362,616	)
Advisor Class
Shares sold		3,700,104			3,459,154		$	32,818,195		$	31,395,603
Shares issued in reinvestment of dividends and distributions		149,717			93,772			1,326,146			881,855
Shares redeemed		(2,122,690	)		(1,797,996	)		(18,786,514	)		(16,610,623	)
Net increase		1,727,131			1,754,930		$	15,357,827		$	15,666,835

At April 30, 2023, the Adviser owns approximately 26% of the Fund’s outstanding shares. At April 30, 2023, certain unaffiliated shareholders of the Fund owned 29% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

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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 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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.

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.

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,

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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 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.

Foreign (Non-U.S.) Risk—Investments in securities of non-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 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 are 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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates

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NOTES TO FINANCIAL STATEMENTS (continued)

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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year.

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NOTES TO FINANCIAL STATEMENTS (continued)

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	1,979,832	$	1,558,732
Net long-term capital gains		286,597		– 0	–
Total taxable distributions paid	$	2,266,429	$	1,558,732

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	421,621
Accumulated capital and other losses		(540,216	)(a)
Unrealized appreciation (depreciation)		(8,134,289	)(b)
Total accumulated earnings (deficit)	$	(8,252,884	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $540,216.

(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 callable bonds, 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, 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, 2022, the Fund had a net short-term capital loss carryforward of $492,757 and a net long-term capital loss carryforward of $47,459, which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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NOTES TO FINANCIAL STATEMENTS (continued)

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,									December 12 2018(a) to October 31, 2019
				2022			2021			2020
Net asset value, beginning of period		$  8.70			$  9.90			$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.15			.18			.22			.23			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.28			(1.05	)		.02	(d)		(.28	)(d)		.42
Contributions from Affiliates		– 0	–		.00	(e)		– 0	–		– 0	–		– 0	–
Capital contributions		– 0	–		– 0	–		– 0	–		.16			– 0	–
Net increase (decrease) in net asset value from operations		.43			(.87	)		.24			.11			.70
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.22	)		(.29	)		(.38	)		(.35	)
Distributions from net realized gain on investment transactions		– 0	–		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.24	)		(.33	)		(.29	)		(.51	)		(.35	)
Net asset value, end of period		$  8.89			$  8.70			$  9.90			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(f)		5.01	%		(8.94	)%		2.37	%		1.17	%		7.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$3,267			$4,364			$5,528			$371			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		1.29	%^		.95	%		.68	%		.68	%		.70	%^
Expenses, before waivers/reimbursements(g)		1.81	%^		1.66	%		1.26	%		1.77	%		3.18	%^
Net investment income(c)		3.47	%^		1.95	%		2.24	%		2.28	%		3.14	%^
Portfolio turnover rate*		90	%		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)*		N/A			N/A			N/A			336	%		181	%

See footnote summary on page 75.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,									December 12 2018(a) to October 31, 2019
				2022			2021			2020
Net asset value, beginning of period		$  8.69			$  9.89			$  9.95			$  10.34			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.12			.10			.15			.09			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.28			(1.04	)		.00	(d)(e)		(.04	)(d)		.41
Contributions from Affiliates		– 0	–		.00	(e)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.40			(.94	)		.15			.05			.62
Less: Dividends and Distributions
Dividends from net investment income		(.21	)		(.15	)		(.21	)		(.31	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.21	)		(.26	)		(.21	)		(.44	)		(.28	)
Net asset value, end of period		$  8.88			$  8.69			$  9.89			$  9.95			$  10.34
Total Return
Total investment return based on net asset value(f)		4.72	%		(9.67	)%		1.46	%		.51	%		6.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$205			$292			$730			$730			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		2.08	%^		1.71	%		1.47	%		1.48	%		1.49	%^
Expenses, before waivers/reimbursements(g)		2.61	%^		2.42	%		2.19	%		2.57	%		4.02	%^
Net investment income(c)		2.66	%^		1.10	%		1.53	%		.93	%		2.34	%^
Portfolio turnover rate*		90	%		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)*		N/A			N/A			N/A			336	%		181	%

See footnote summary on page 75.

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FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,									December 12 2018(a) to October 31, 2019
				2022			2021			2020
Net asset value, beginning of period		$  8.69			$  9.89			$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.17			.20			.25			.21			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.27			(1.05	)		.00	(d)(e)		(.08	)(d)		.41
Contributions from Affiliates		– 0	–		.00	(e)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.44			(.85	)		.25			.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.24	)		(.31	)		(.40	)		(.36	)
Distributions from net realized gain on investment transactions		– 0	–		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.25	)		(.35	)		(.31	)		(.53	)		(.36	)
Net asset value, end of period		$  8.88			$  8.69			$  9.89			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(f)		5.12	%		(8.76	)%		2.48	%		1.34	%		7.25	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$81,723			$64,972			$56,593			$41,681			$15,498
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		1.06	%^		.77	%		.47	%		.48	%		.49	%^
Expenses, before waivers/reimbursements(g)		1.58	%^		1.48	%		1.18	%		1.68	%		2.99	%^
Net investment income(c)		3.79	%^		2.17	%		2.52	%		2.13	%		3.31	%^
Portfolio turnover rate*		90	%		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)*		N/A			N/A			N/A			336	%		181	%

See footnote summary on page 75.

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FINANCIAL HIGHLIGHTS (continued)

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

(a) Commencement of operations.

(b) Based on average shares outstanding.

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

(d) 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.

(e) Amount is less than $.005.

(f) 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.

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

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,									December 12, 2018(a) to October 31, 2019
				2022			2021			2020
Class A
Net of waivers/reimbursements		.65	%^		.65	%		.65	%		.65	%		.65	%^
Before waivers/reimbursements		1.17	%^		1.35	%		1.23	%		1.73	%		3.13	%^
Class C
Net of waivers/reimbursements		1.45	%^		1.45	%		1.45	%		1.45	%		1.45	%^
Before waivers/reimbursements		1.98	%^		2.16	%		2.18	%		2.54	%		3.97	%^
Advisor Class
Net of waivers/reimbursements		.45	%^		.45	%		.45	%		.45	%		.45	%^
Before waivers/reimbursements		.96	%^		1.16	%		1.16	%		1.64	%		2.95	%^

^ Annualized.

* The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾, Vice President Fahd Malik⁽²⁾, Vice President Matthew S. Sheridan⁽²⁾, Vice President William Smith⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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, Malik, Smith 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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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 Short Duration Income Portfolio (the “Fund”) at a meeting held in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 had not requested any reimbursements from the Fund since the Fund’s inception. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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.

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors 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 the 1- and 3- year periods ended July 31, 2022 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. The directors determined to continue to monitor the Fund’s performance closely.

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 noted it was equal to the median.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    81

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 any sub-advised funds utilizing investment strategies similar to those of 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 compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-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 and sub-advised fund 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.

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.

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Economies of Scale

The directors noted that the 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 presentations from time to time by the Adviser concerning certain of its views on economies of scale. 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 the breakpoint in the future.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    83

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

AB FAMILY OF FUNDS

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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.

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AB SHORT DURATION INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SDI-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the AB Sustainable Thematic Credit Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    1

SEMI-ANNUAL REPORT

June 6, 2023

This report provides management’s discussion of fund performance for the AB Sustainable Thematic Credit Portfolio for the semi-annual reporting period ended April 30, 2023.

The Fund’s investment objective is to maximize total return through current income and long-term capital appreciation.

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO
Class A Shares		8.89%		-1.07%
Advisor Class Shares1		9.02%		-0.83%
Bloomberg US Corporate Bond Index		9.21%		0.68%

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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Bloomberg US Corporate Bond Index, for the six- and 12-month periods ended April 30, 2023.

During the six-month period, all share classes underperformed the benchmark, before sales charges. Sector allocation detracted, relative to the benchmark, primarily driven by off-benchmark exposure to high-yield corporate bonds. The underperformance was partially offset by a gain from off-benchmark exposure to eurozone investment-grade corporates, which contributed. Overall security selection was a contributor over the period, led by selection within the banking, telecommunications and electric industries. The Fund’s duration and yield-curve positioning had an overall positive impact on performance.

During the 12-month period, all share classes underperformed the benchmark, before sales charges. The Fund entered the market sell-off period in 2022 with higher risk levels than its benchmark, as it is designed to generate higher yield carry than the index. In a risk-averse market environment, this risk posture hampered relative returns. The Fund’s sector allocation was the biggest detractor over the period, driven by off-benchmark high-yield corporate bond exposure. A small off-benchmark allocation to emerging-market corporate bonds and euro-denominated

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investment-grade bonds also had a negative impact on performance. In terms of security selection, consumer noncyclical, banking and real estate investment trusts detracted, and was partially offset by selection within telecommunications and basic industries. Overall duration and yield-curve positioning had a negative impact on performance over the period.

The Fund used derivatives in the form of futures and currency forwards for hedging purposes, which had no material impact on absolute returns for either period.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

Calendar year 2022 was one of the worst on record for bond markets. The main economic factors driving markets were centered around stronger-than-expected inflation, which hit multi-decade highs, and the hawkish monetary policy response. Investors had also to deal with geopolitical turmoil, since Russia’s invasion of Ukraine led to massive spikes in energy and food prices that particularly hit emerging-market economies. Amid this backdrop, fixed-income markets delivered strongly negative returns.

The Fund’s Senior Investment Management Team (the “Team”) seeks to maximize total return through investments that benefit society and the environment. The Team employs top-down and bottom-up investment processes with the goal of identifying securities that fit into sustainable investment themes, such as health, climate and empowerment. The Team’s approach to building a sustainable portfolio with attractive financial return potential has been to align with the United Nations Sustainable Development Goals (“SDGs”), which 193 nations have committed to advancing. The Team invests primarily in investment-grade corporate bonds from US issuers, but may also invest in non-US issuers and high-yield bonds.

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INVESTMENT POLICIES

The Fund seeks to achieve its investment objective by investing primarily in fixed-income securities of corporate issuers whose business activities the Adviser believes position the issuer to benefit from certain sustainable investment themes that align with one or more of the United Nations SDGs. These themes principally include the advancement of health, climate, and empowerment. Under normal circumstances, at least 80% of the Fund’s net assets will be invested in fixed-income securities of corporate issuers that satisfy the Fund’s sustainability criteria. An issuer that derives at least 25% of its total revenues from activities consistent with the achievement of the SDGs meets such criteria, although many of the issuers in which the Fund invests will derive a much greater portion of their revenues from such activities.

The Adviser employs a combination of “top-down” and “bottom-up” investment processes with the goal of identifying, based on its internal research and analysis, securities and issuers that fit into sustainable investment themes. First, the Adviser identifies through its top-down process the sustainable investment themes. In addition to this top-down thematic approach, the Adviser then uses a bottom-up analysis of individual bond issues that focuses on the use of proceeds, issuer fundamentals and valuation and on evaluating an issuer’s risks, including those related to environmental, social and governance (“ESG”) factors. ESG factors, which can vary across companies and industries, may include environmental impact, corporate governance, ethical business practices, diversity and employee practices, product safety, supply chain management and community impact. Eligible investments include securities of issuers that the Adviser believes will maximize total return while also contributing to positive societal impact aligned with one or more SDGs. While the Adviser emphasizes focusing on individual issuers with favorable ESG attributes over the use of broad-based negative screens (e.g., disqualifying business activities) in assessing an issuer’s exposure to ESG factors, the Fund will not invest in companies that derive significant revenue from involvement in adult entertainment, alcohol, coal, controversial weapons, firearms, gambling, genetically modified organisms, military contracting, prisons, or tobacco. The Fund also typically invests in ESG bond structures, including “Use of Proceeds” bonds, which are instruments the proceeds of which are specifically earmarked for environmental, social or sustainability projects.

The Fund may invest up to 20% of its net assets in securities rated below investment grade (“junk bonds”). The Fund may invest up to 30% of its net assets in securities denominated in currencies other

(continued on next page)

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than the US dollar. Foreign investments may include securities issued by emerging-market companies and governments. The Adviser expects under normal circumstances to hedge the majority of the Fund’s foreign currency exposure through the use of currency-related derivatives, although it is not required to do so.

The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps. 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, for example, use interest rate futures contracts or swaps to manage the Fund’s average duration and may, as noted above, use currency-related derivatives to hedge foreign currency exposure.

The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure significantly in excess of the Fund’s net assets.

The Fund is “non-diversified.”

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Corporate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers. 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 stock, bond or currency markets fluctuate. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

ESG Risk: Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities of companies with ESG practices may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, ESG factors and “sustainability” criteria are not uniformly defined, and may differ from those used by other funds. In addition, in evaluating an investment, the investment adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG factors relevant to a particular investment.

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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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

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DISCLOSURES AND RISKS (continued)

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”) tend to have 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 factors such as specific corporate developments, interest-rate sensitivity and negative perceptions of the junk bond market generally, and may be more difficult to trade 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 for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

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 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 are 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. Emerging-market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries.

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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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 are or 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. 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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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DISCLOSURES AND RISKS (continued)

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. 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 Fund 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% maximum front-end sales charge for Class A 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 SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						4.16%
1 Year		-1.07%		-5.25%
Since Inception2		-6.71%		-8.72%
ADVISOR CLASS SHARES3						4.56%
1 Year		-0.83%		-0.83%
Since Inception2		-6.47%		-6.47%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.97% and 0.72% for Class A and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limited the Fund’s total annual operating expense ratios, exclusive of expenses associated with acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense and extraordinary expenses, to 0.85% and 0.60% for Class A and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2024. 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 covered 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 the 30-day period ended April 30, 2023.

2 Inception date: 5/10/2021.

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 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.

10    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-11.48%
Since Inception1		-9.44%
ADVISOR CLASS SHARES2
1 Year		-7.29%
Since Inception1		-7.12%

1 Inception date: 5/10/2021.

2 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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT 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 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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,088.90	$	4.40		0.85	%
Hypothetical**	$	1,000	$	1,020.58	$	4.26		0.85	%
Advisor Class
Actual	$	1,000	$	1,090.20	$	3.11		0.60	%
Hypothetical**	$	1,000	$	1,021.82	$	3.01		0.60	%

* Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

12    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $214.5

1 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).

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    13

PORTFOLIO SUMMARY (continued)

April 30, 2023 (unaudited)

1 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 0.4% or less in the following: Australia, Belgium, Chile, India, Peru, South Korea, Sweden and Switzerland.

14    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 94.6%
Industrial – 52.5%
Basic – 1.4%
Arkema SA 0.125%, 10/14/2026(a)	EUR		200	$	198,287
Ecolab, Inc. 2.75%, 08/18/2055	U.S.$		525		338,261
Inversiones CMPC SA 3.85%, 01/13/2030(a)			905		814,670
Packaging Corp. of America 4.05%, 12/15/2049			300		244,178
Sealed Air Corp. 1.573%, 10/15/2026(a)			1,485		1,308,202
					2,903,598
Capital Goods – 6.2%
CNH Industrial Capital LLC 1.45%, 07/15/2026			1,605		1,441,367
5.45%, 10/14/2025			360		364,306
Eaton Corp. 4.15%, 03/15/2033			380		365,388
4.70%, 08/23/2052			380		365,229
Emerson Electric Co. 3.15%, 06/01/2025			715		697,111
John Deere Capital Corp. 4.75%, 01/20/2028			933		954,662
4.85%, 10/11/2029			263		273,323
5.15%, 03/03/2025			767		776,306
Parker-Hannifin Corp. 4.20%, 11/21/2034			1,305		1,233,203
4.45%, 11/21/2044			325		298,917
6.25%, 05/15/2038			490		544,112
Regal Rexnord Corp. 6.30%, 02/15/2030(a)			104		105,763
6.40%, 04/15/2033(a)			123		125,314
Republic Services, Inc. 1.75%, 02/15/2032			1,275		1,030,273
Siemens Financieringsmaatschappij NV 1.20%, 03/11/2026(a)			960		880,616
Trane Technologies Financing Ltd. 5.25%, 03/03/2033			154		159,599
Trane Technologies Global Holding Co., Ltd. 5.75%, 06/15/2043			495		519,132
Trane Technologies Luxembourg Finance SA 3.50%, 03/21/2026			405		390,044

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Waste Management, Inc. 1.50%, 03/15/2031	U.S.$		470	$	380,854
2.95%, 06/01/2041			710		544,652
4.15%, 04/15/2032			370		362,851
Xylem, Inc./NY 1.95%, 01/30/2028			1,725		1,545,881
					13,358,903
Communications - Media – 1.4%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.40%, 04/01/2033			390		345,400
6.834%, 10/23/2055			630		599,660
Comcast Corp. 4.65%, 02/15/2033			590		597,687
TCI Communications, Inc. 7.875%, 02/15/2026			845		916,533
Thomson Reuters Corp. 5.50%, 08/15/2035			570		577,762
					3,037,042
Communications - Telecommunications – 4.9%
AT&T, Inc. 4.30%, 12/15/2042			397		342,289
British Telecommunications PLC 9.625%, 12/15/2030(b)			760		956,343
Corning, Inc. 4.70%, 03/15/2037			62		60,068
5.35%, 11/15/2048			820		817,633
5.45%, 11/15/2079			280		262,609
Sprint Capital Corp. 8.75%, 03/15/2032			1,070		1,308,819
T-Mobile USA, Inc. 2.70%, 03/15/2032			1,765		1,489,403
3.60%, 11/15/2060			445		317,220
5.80%, 09/15/2062			285		293,802
Telefonica Emisiones SA 4.895%, 03/06/2048			695		574,372
TELUS Corp. 3.40%, 05/13/2032			1,194		1,057,333
Verizon Communications, Inc. 2.355%, 03/15/2032			416		341,421
2.85%, 09/03/2041			1,135		820,604
3.875%, 02/08/2029			835		806,130
Vodafone Group PLC 4.25%, 09/17/2050			930		756,450
5.125%, 06/19/2059			265		240,436
					10,444,932

16    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 3.9%
Aptiv PLC 4.35%, 03/15/2029	U.S.$		407	$	394,548
4.40%, 10/01/2046			180		142,282
5.40%, 03/15/2049			215		192,001
Aptiv PLC/Aptiv Corp. 3.25%, 03/01/2032			605		527,567
4.15%, 05/01/2052			395		304,067
General Motors Co. 5.60%, 10/15/2032			695		680,445
5.95%, 04/01/2049			395		365,678
General Motors Financial Co., Inc. 1.50%, 06/10/2026			590		527,226
2.70%, 06/10/2031			365		292,639
3.85%, 01/05/2028			435		407,662
5.85%, 04/06/2030			562		561,529
6.05%, 10/10/2025			360		363,968
Harley-Davidson, Inc. 3.50%, 07/28/2025			548		525,188
Lear Corp. 2.60%, 01/15/2032			1,827		1,460,053
4.25%, 05/15/2029			415		396,491
5.25%, 05/15/2049			345		301,722
Mercedes-Benz Finance North America LLC 5.50%, 11/27/2024(a)			915		922,992
					8,366,058
Consumer Cyclical - Other – 1.5%
DR Horton, Inc. 2.50%, 10/15/2024			1,355		1,305,349
PulteGroup, Inc. 6.00%, 02/15/2035			410		423,881
6.375%, 05/15/2033			965		1,024,109
7.875%, 06/15/2032			435		504,837
					3,258,176
Consumer Cyclical - Retailers – 1.7%
Home Depot, Inc. (The) 1.50%, 09/15/2028			1,425		1,251,568
Lowe’s Cos., Inc. 3.70%, 04/15/2046			665		516,747
5.50%, 10/15/2035			660		679,087
5.80%, 09/15/2062			645		648,946
VF Corp. 2.95%, 04/23/2030			622		527,020
					3,623,368

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 13.4%
Abbott Laboratories 4.75%, 11/30/2036	U.S.$		1,065	$	1,103,909
AbbVie, Inc. 3.60%, 05/14/2025			474		463,380
4.45%, 05/14/2046			435		392,803
4.875%, 11/14/2048			1,275		1,225,402
Amgen, Inc. 4.40%, 05/01/2045			805		711,411
4.875%, 03/01/2053			380		356,779
AstraZeneca PLC 6.45%, 09/15/2037			445		525,590
Baxalta, Inc. 4.00%, 06/23/2025			942		925,011
Baxter International, Inc. 3.50%, 08/15/2046			1,405		1,008,206
Becton Dickinson and Co. 2.823%, 05/20/2030			1,130		1,004,129
Biogen, Inc. 2.25%, 05/01/2030			1,485		1,259,494
3.15%, 05/01/2050			150		104,462
Bristol-Myers Squibb Co. 3.70%, 03/15/2052			510		422,702
3.90%, 03/15/2062			495		409,719
4.25%, 10/26/2049			725		658,129
Cigna Group (The) 2.375%, 03/15/2031			410		347,503
3.05%, 10/15/2027			820		773,166
4.80%, 08/15/2038			600		580,797
4.90%, 12/15/2048			260		244,426
Colgate-Palmolive Co. 4.80%, 03/02/2026			283		289,389
CVS Health Corp. 4.78%, 03/25/2038			900		857,934
4.875%, 07/20/2035			1,305		1,275,991
5.00%, 02/20/2026			385		389,414
Danaher Corp. 2.60%, 10/01/2050			225		152,809
4.375%, 09/15/2045			610		568,049
DH Europe Finance II SARL 3.40%, 11/15/2049			450		355,206
Eli Lilly & Co. 2.75%, 06/01/2025			958		929,700
Fresenius Medical Care US Finance III, Inc. 3.00%, 12/01/2031(a)			945		746,368

18    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Gilead Sciences, Inc. 4.50%, 02/01/2045	U.S.$		320	$	297,133
4.75%, 03/01/2046			375		358,695
4.80%, 04/01/2044			410		397,653
HCA, Inc. 3.50%, 07/15/2051			425		296,230
5.50%, 06/15/2047			735		690,559
Kaiser Foundation Hospitals Series 2021 2.81%, 06/01/2041			200		149,721
Kenvue, Inc. 5.20%, 03/22/2063(a)			288		299,681
Medtronic, Inc. 4.375%, 03/15/2035			365		363,995
Merck & Co., Inc. 1.90%, 12/10/2028			1,800		1,605,861
2.90%, 12/10/2061			225		153,239
Pfizer, Inc. 4.125%, 12/15/2046			775		714,086
7.20%, 03/15/2039			285		359,332
Roche Holdings, Inc. 2.132%, 03/10/2025(a)			1,970		1,886,667
Stryker Corp. 1.15%, 06/15/2025			1,008		935,407
Takeda Pharmaceutical Co., Ltd. 3.175%, 07/09/2050			340		243,444
Thermo Fisher Scientific, Inc. 2.80%, 10/15/2041			1,275		976,679
Wyeth LLC 5.95%, 04/01/2037			265		298,817
Zoetis, Inc. 2.00%, 05/15/2030			755		640,327
					28,749,404
Services – 3.6%
Global Payments, Inc. 3.20%, 08/15/2029			1,970		1,743,865
5.95%, 08/15/2052			405		392,745
Mastercard, Inc. 3.85%, 03/26/2050			2,565		2,267,660
Moody’s Corp. 5.25%, 07/15/2044			265		263,258
PayPal Holdings, Inc. 3.25%, 06/01/2050			900		649,921
5.25%, 06/01/2062			600		577,069
RELX Capital, Inc. 4.75%, 05/20/2032			60		60,186

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
S&P Global, Inc. 2.30%, 08/15/2060	U.S.$		590	$	346,873
2.90%, 03/01/2032			863		766,250
3.90%, 03/01/2062			235		195,720
4.25%, 05/01/2029			58		57,368
Verisk Analytics, Inc. 5.75%, 04/01/2033			264		278,025
					7,598,940
Technology – 14.5%
Apple, Inc. 4.10%, 08/08/2062			190		169,176
Autodesk, Inc. 2.40%, 12/15/2031			1,824		1,526,581
Broadcom, Inc. 2.45%, 02/15/2031(a)			643		527,530
3.187%, 11/15/2036(a)			694		528,553
Broadridge Financial Solutions, Inc. 2.60%, 05/01/2031			1,460		1,223,172
2.90%, 12/01/2029			569		499,991
CDW LLC/CDW Finance Corp. 3.276%, 12/01/2028			986		856,203
4.125%, 05/01/2025			1,545		1,509,773
Cisco Systems, Inc. 5.50%, 01/15/2040			1,075		1,167,938
5.90%, 02/15/2039			50		56,357
Entegris Escrow Corp. 4.75%, 04/15/2029(a)			390		362,793
Fidelity National Information Services, Inc. 5.625%, 07/15/2052			818		788,059
HP, Inc. 2.65%, 06/17/2031			650		529,386
5.50%, 01/15/2033			740		734,141
Intel Corp. 3.10%, 02/15/2060			1,580		1,021,731
5.05%, 08/05/2062			765		704,631
5.90%, 02/10/2063			632		650,706
International Business Machines Corp. 3.43%, 02/09/2052			575		420,714
4.00%, 06/20/2042			865		741,746
4.50%, 02/06/2026			527		527,698
4.90%, 07/27/2052			735		687,034
Jabil, Inc. 4.25%, 05/15/2027			1,429		1,391,872
5.45%, 02/01/2029			115		115,685
KLA Corp. 4.95%, 07/15/2052			510		504,914
5.00%, 03/15/2049			900		883,066

20    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lam Research Corp. 2.875%, 06/15/2050	U.S.$		1,220	$	861,456
3.125%, 06/15/2060			480		331,433
Micron Technology, Inc. 2.703%, 04/15/2032			1,610		1,287,113
5.375%, 04/15/2028			25		24,907
5.875%, 02/09/2033			144		145,213
6.75%, 11/01/2029			189		199,321
Microsoft Corp. 2.675%, 06/01/2060			500		346,416
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.15%, 05/01/2027			515		480,817
3.25%, 05/11/2041			705		513,460
5.00%, 01/15/2033			365		356,172
Oracle Corp. 4.125%, 05/15/2045			673		530,832
4.65%, 05/06/2030			538		527,551
QUALCOMM, Inc. 4.65%, 05/20/2035			1,465		1,476,702
6.00%, 05/20/2053			325		369,833
Salesforce.com, Inc. 2.90%, 07/15/2051			642		455,587
SK Hynix, Inc. 6.375%, 01/17/2028(a)			485		486,727
Skyworks Solutions, Inc. 3.00%, 06/01/2031			1,785		1,488,712
Texas Instruments, Inc. 4.10%, 08/16/2052			272		248,910
4.60%, 02/15/2028			545		557,592
VMware, Inc. 4.70%, 05/15/2030			545		527,270
Western Digital Corp. 2.85%, 02/01/2029			956		755,863
3.10%, 02/01/2032			500		362,053
Workday, Inc. 3.70%, 04/01/2029			56		52,773
3.80%, 04/01/2032			694		633,520
					31,149,683
					112,490,104
Financial Institutions – 33.6%
Banking – 24.8%
ABN AMRO Bank NV 2.47%, 12/13/2029(a)			1,800		1,538,073
4.80%, 04/18/2026(a)			600		585,228
AIB Group PLC 4.263%, 04/10/2025(a)			570		559,213
7.583%, 10/14/2026(a)			539		555,909

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Banco Santander SA 2.749%, 12/03/2030	U.S.$		1,000	$	791,451
4.175%, 03/24/2028			400		379,985
4.25%, 04/11/2027			400		383,630
5.179%, 11/19/2025			200		197,272
5.294%, 08/18/2027			400		397,323
Bank of America Corp. 2.456%, 10/22/2025			1,345		1,285,598
2.572%, 10/20/2032			325		266,939
2.884%, 10/22/2030			470		408,969
3.194%, 07/23/2030			190		169,192
3.384%, 04/02/2026			385		371,259
3.705%, 04/24/2028			530		502,741
3.846%, 03/08/2037			985		850,766
4.078%, 04/23/2040			835		725,726
4.376%, 04/27/2028			375		364,115
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			1,009		1,006,944
Barclays PLC 4.375%, 09/11/2024			539		522,691
5.088%, 06/20/2030			535		500,190
7.385%, 11/02/2028			627		669,312
BNP Paribas SA 2.159%, 09/15/2029(a)			1,475		1,252,539
2.871%, 04/19/2032(a)			200		166,712
4.625%, 02/25/2031(a)(c)			264		188,345
6.625%, 03/25/2024(a)(c)			200		189,508
7.375%, 08/19/2025(a)(c)			690		664,859
BPCE SA 4.625%, 07/11/2024(a)			855		834,689
5.15%, 07/21/2024(a)			375		367,831
5.975%, 01/18/2027(a)			277		279,061
CaixaBank SA 6.208%, 01/18/2029(a)			259		260,262
Capital One Financial Corp. 2.359%, 07/29/2032			726		526,139
5.468%, 02/01/2029			116		114,093
Citigroup, Inc. 2.904%, 11/03/2042			1,005		726,281
Series Y 4.15%, 11/15/2026(c)			887		732,856
Cooperatieve Rabobank UA 3.75%, 07/21/2026			1,160		1,091,787
4.00%, 04/10/2029(a)			800		774,871
4.375%, 06/29/2027(a)(c)	EUR		200		186,807
Credit Agricole SA 0.125%, 12/09/2027			200		187,043
1.247%, 01/26/2027(a)	U.S.$		1,285		1,150,298

22    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Deutsche Bank AG/New York NY 2.311%, 11/16/2027	U.S.$		877	$	757,376
3.742%, 01/07/2033			920		673,166
6.72%, 01/18/2029			249		252,945
7.079%, 02/10/2034			391		364,399
Discover Financial Services 6.70%, 11/29/2032			213		225,335
Goldman Sachs Group, Inc. (The) 1.948%, 10/21/2027			805		721,390
3.102%, 02/24/2033			62		53,379
3.691%, 06/05/2028			500		475,970
4.223%, 05/01/2029			350		336,186
4.411%, 04/23/2039			465		417,519
4.482%, 08/23/2028			380		373,082
HSBC Holdings PLC 2.099%, 06/04/2026			563		524,005
3.973%, 05/22/2030			550		505,422
4.755%, 06/09/2028			513		500,596
6.161%, 03/09/2029			200		205,495
Intesa Sanpaolo SpA 3.875%, 01/12/2028(a)			460		416,542
5.017%, 06/26/2024(a)			730		712,188
Series XR 4.00%, 09/23/2029(a)			1,170		1,035,914
JPMorgan Chase & Co. 4.912%, 07/25/2033			66		65,717
KBC Group NV 5.796%, 01/19/2029(a)			229		231,942
Lloyds Banking Group PLC 3.574%, 11/07/2028			310		286,703
4.65%, 03/24/2026			630		606,472
4.716%, 08/11/2026			380		373,914
5.871%, 03/06/2029			287		293,154
7.50%, 06/27/2024(c)			288		276,514
7.953%, 11/15/2033			533		594,236
Mitsubishi UFJ Financial Group, Inc. 0.848%, 07/19/2029(a)	EUR		200		184,724
1.64%, 10/13/2027	U.S.$		461		409,003
5.354%, 09/13/2028			370		373,394
5.475%, 02/22/2031			242		245,401
5.541%, 04/17/2026			596		597,254
Mizuho Financial Group, Inc. 3.153%, 07/16/2030			565		500,282
5.414%, 09/13/2028			498		502,324
5.667%, 05/27/2029			485		493,415
5.739%, 05/27/2031			485		495,288

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Morgan Stanley 2.475%, 01/21/2028	U.S.$		907	$	828,322
4.889%, 07/20/2033			555		545,410
5.123%, 02/01/2029			417		418,890
6.296%, 10/18/2028			705		740,760
Nationwide Building Society 2.972%, 02/16/2028(a)			1,065		972,517
NatWest Group PLC 3.073%, 05/22/2028			551		503,688
4.269%, 03/22/2025			403		397,204
7.472%, 11/10/2026			265		276,383
PNC Financial Services Group, Inc. (The) 5.068%, 01/24/2034			190		187,077
Santander Holdings USA, Inc. 4.26%, 06/09/2025			290		280,352
6.499%, 03/09/2029			419		421,055
Santander UK Group Holdings PLC 2.469%, 01/11/2028			514		456,968
6.534%, 01/10/2029			489		502,413
6.833%, 11/21/2026			905		921,691
Shinhan Bank Co., Ltd. 4.375%, 04/13/2032(a)			385		357,641
Societe Generale SA 2.797%, 01/19/2028(a)			960		856,777
2.889%, 06/09/2032(a)			1,480		1,174,342
Standard Chartered PLC 2.608%, 01/12/2028(a)			920		825,283
State Street Corp. 4.821%, 01/26/2034			55		54,824
Sumitomo Mitsui Financial Group, Inc. 2.472%, 01/14/2029			920		801,068
5.464%, 01/13/2026			933		942,086
Svenska Handelsbanken AB 4.75%, 03/01/2031(a)(c)			1,000		786,429
Synchrony Bank 5.625%, 08/23/2027			570		542,080
Truist Financial Corp. 1.95%, 06/05/2030			51		41,086
5.122%, 01/26/2034			248		240,429
UniCredit SpA 1.982%, 06/03/2027(a)			621		549,782
US Bancorp 4.839%, 02/01/2034			162		155,008
Westpac Banking Corp. Series G 4.322%, 11/23/2031			554		524,988
					53,111,706

24    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Brokerage – 0.8%
Voya Financial, Inc. 5.65%, 05/15/2053	U.S.$		1,768	$	1,767,068
Finance – 0.3%
Synchrony Financial 3.95%, 12/01/2027			295		260,364
4.875%, 06/13/2025			285		269,018
					529,382
Insurance – 2.6%
Allianz SE 3.20%, 10/30/2027(a)(c)			1,400		1,025,077
Assicurazioni Generali SpA 2.124%, 10/01/2030(a)	EUR		545		492,650
2.429%, 07/14/2031(a)			470		429,475
Centene Corp. 2.50%, 03/01/2031	U.S.$		1,295		1,056,352
2.625%, 08/01/2031			708		578,834
Humana, Inc. 2.15%, 02/03/2032			635		513,761
5.75%, 03/01/2028			177		184,535
Prudential Financial, Inc. 5.20%, 03/15/2044			1,150		1,102,439
Zurich Finance Ireland Designated Activity Co. 3.00%, 04/19/2051(a)			200		156,916
					5,540,039
REITs – 5.1%
Alexandria Real Estate Equities, Inc. 2.00%, 05/18/2032			385		296,577
2.95%, 03/15/2034			1,158		937,461
American Homes 4 Rent LP 3.375%, 07/15/2051			845		558,506
American Tower Corp. 2.95%, 01/15/2051			475		306,587
3.70%, 10/15/2049			510		373,102
3.80%, 08/15/2029			285		267,133
Boston Properties LP 2.45%, 10/01/2033			300		215,870
4.50%, 12/01/2028			1,400		1,272,882
6.75%, 12/01/2027			183		186,356
Crown Castle, Inc. 3.10%, 11/15/2029			587		527,485
Digital Dutch Finco BV 1.00%, 01/15/2032(a)	EUR		800		627,399
Equinix, Inc. 2.15%, 07/15/2030	U.S.$		711		584,350
3.90%, 04/15/2032			762		693,374

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Healthpeak OP LLC 1.35%, 02/01/2027	U.S.$		677	$	596,425
Kilroy Realty LP 4.75%, 12/15/2028			242		215,197
Omega Healthcare Investors, Inc. 3.25%, 04/15/2033			765		574,258
Prologis LP 1.25%, 10/15/2030			1,155		913,321
3.00%, 04/15/2050			240		166,778
Simon Property Group LP 5.85%, 03/08/2053			384		388,784
Ventas Realty LP 5.70%, 09/30/2043			290		280,855
Welltower OP LLC 4.95%, 09/01/2048			765		678,247
Weyerhaeuser Co. 3.375%, 03/09/2033			390		345,548
7.375%, 03/15/2032			22		25,501
					11,031,996
					71,980,191
Utility – 8.5%
Electric – 8.2%
Avangrid, Inc. 3.20%, 04/15/2025			1,515		1,455,790
3.80%, 06/01/2029			673		634,642
Commonwealth Edison Co. 3.00%, 03/01/2050			205		147,114
Series 133 3.85%, 03/15/2052			465		385,527
Consolidated Edison Co. of New York, Inc. Series 05-A 5.30%, 03/01/2035			225		230,550
Series A 3.70%, 11/15/2059			505		381,658
4.125%, 05/15/2049			155		131,701
4.50%, 05/15/2058			855		745,862
Consorcio Transmantaro SA 4.70%, 04/16/2034(a)			890		813,961
EDP Finance BV 1.71%, 01/24/2028(a)			2,720		2,356,257
Enel Finance International NV 2.25%, 07/12/2031(a)			1,270		1,003,532
6.80%, 09/15/2037(a)			280		300,855
7.50%, 10/14/2032(a)			200		223,799
Engie SA 3.25%, 11/28/2024(a)(c)	EUR		200		213,633

26    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Florida Power & Light Co. 5.30%, 04/01/2053	U.S.$		595	$	633,877
Iberdrola International BV Series NC9 1.825%, 08/09/2029(a)(c)	EUR		1,100		926,531
NextEra Energy Capital Holdings, Inc. 1.90%, 06/15/2028	U.S.$		1,381		1,216,666
2.25%, 06/01/2030			440		373,911
4.80%, 12/01/2077			325		279,656
5.00%, 07/15/2032			540		545,001
Niagara Mohawk Power Corp. 1.96%, 06/27/2030(a)			1,611		1,321,581
5.783%, 09/16/2052(a)			370		384,656
Public Service Electric and Gas Co. 3.10%, 03/15/2032			1,219		1,099,189
3.80%, 03/01/2046			615		510,778
3.85%, 05/01/2049			460		386,781
San Diego Gas & Electric Co. Series WWW 2.95%, 08/15/2051			1,275		898,265
					17,601,773
Other Utility – 0.3%
American Water Capital Corp. 3.25%, 06/01/2051			735		543,008
3.45%, 05/01/2050			195		150,787
					693,795
					18,295,568
Total Corporates - Investment Grade (cost $229,438,278)					202,765,863
CORPORATES - NON-INVESTMENT GRADE – 2.5%
Industrial – 1.9%
Capital Goods – 0.3%
Clean Harbors, Inc. 4.875%, 07/15/2027(a)			95		91,967
GFL Environmental, Inc. 4.375%, 08/15/2029(a)			251		227,165
5.125%, 12/15/2026(a)			445		438,306
					757,438
Communications - Media – 0.3%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.75%, 02/01/2032(a)			889		735,705

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 1.0%
Dana, Inc. 4.25%, 09/01/2030	U.S.$		935	$	759,899
Ford Motor Co. 3.25%, 02/12/2032			871		673,453
6.10%, 08/19/2032			285		271,766
ZF North America Capital, Inc. 6.875%, 04/14/2028(a)			200		205,626
7.125%, 04/14/2030(a)			200		206,533
					2,117,277
Consumer Non-Cyclical – 0.2%
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			455		407,663
Services – 0.1%
Block, Inc. 3.50%, 06/01/2031			200		162,919
					4,181,002
Financial Institutions – 0.6%
REITs – 0.6%
MPT Operating Partnership LP/MPT Finance Corp. 5.00%, 10/15/2027			1,445		1,215,873
Total Corporates - Non-Investment Grade (cost $6,340,151)					5,396,875
EMERGING MARKETS - CORPORATE BONDS – 1.1%
Industrial – 0.9%
Basic – 0.8%
Klabin Austria GmbH 3.20%, 01/12/2031(a)			2,040		1,630,062
Energy – 0.1%
ReNew Power Pvt Ltd. 5.875%, 03/05/2027(a)			291		273,231
					1,903,293
Financial Institutions – 0.2%
Banking – 0.2%
Itau Unibanco Holding SA/Cayman Island 3.875%, 04/15/2031(a)			480		435,660
Total Emerging Markets - Corporate Bonds (cost $2,786,668)					2,338,953

28    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SUPRANATIONALS – 0.4%
International Bank for Reconstruction & Development Zero Coupon, 03/31/2027 (cost $930,584)	U.S.$		970	$	893,420
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.0%
United States – 0.0%
Metropolitan Transportation Authority Series 2020-C 5.175%, 11/15/2049 (cost $78,067)			65		61,485
		Shares
SHORT-TERM INVESTMENTS – 0.2%
Investment Companies – 0.2%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(d)(e)(f) (cost $437,826)			437,826		437,826
		Principal Amount (000)
Time Deposits – 0.0%
SEB, Stockholm 1.92%, 05/02/2023 (cost $47,086)	EUR		43		47,086
Total Short-Term Investments (cost $484,912)					484,912
Total Investments – 98.8% (cost $240,058,660)					211,941,508
Other assets less liabilities – 1.2%					2,520,656
Net Assets – 100.0%				$	214,462,164

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    29

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. T-Note 2 Yr (CBT) Futures		14		June 2023	$	2,886,297	$	27,789
U.S. Ultra Bond (CBT) Futures		49		June 2023		6,928,906		168,836
Sold Contracts
Euro-BOBL Futures		6		June 2023		779,947		(18,578	)
Euro-Bund Futures		10		June 2023		1,493,736		(48,924	)
Euro-Schatz Futures		8		June 2023		931,546		(8,534	)
U.S. 10 Yr Ultra Futures		25		June 2023		3,036,328		(65,078	)
U.S. T-Note 5 Yr (CBT) Futures		5		June 2023		548,711		(3,359	)
							$	52,152

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation (Depreciation)
Citibank, NA		EUR	3,101		USD	3,296		05/11/2023	$	(123,005	)

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $42,787,633 or 20.0% of net assets.

(b) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

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

(d) 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.

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

(f) Affiliated investments.

Currency Abbreviations:

EUR – Euro

USD – United States Dollar

Glossary:

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

REIT – Real Estate Investment Trust

See notes to financial statements.

30    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value Unaffiliated issuers (cost $239,620,834)	$	211,503,682
Affiliated issuers (cost $437,826)		437,826
Cash		527
Cash collateral due from broker		373,545
Foreign currencies, at value (cost $73)		76
Unaffiliated interest receivable		2,323,376
Receivable for capital stock sold		249,805
Affiliated dividends receivable		9,721
Total assets		214,898,558
Liabilities
Unrealized depreciation on forward currency exchange contracts		123,005
Dividends payable		89,085
Advisory fee payable		58,486
Custody and accounting fees payable		52,240
Audit and tax fee payable		28,942
Payable for variation margin on futures		28,820
Administrative fee payable		22,246
Payable for capital stock redeemed		17,910
Transfer Agent fee payable		4,427
Distribution fee payable		12
Accrued expenses		11,221
Total liabilities		436,394
Net Assets	$	214,462,164
Composition of Net Assets
Capital stock, at par	$	25,899
Additional paid-in capital		252,319,080
Accumulated loss		(37,882,815	)
	$	214,462,164

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	63,121		7,622	$	8.28	*
Advisor	$	214,399,043		25,890,987	$	8.28

* The maximum offering price per share for Class A shares was $8.65, which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    31

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	3,516,281
Dividends
Affiliated issuers		55,897
Unaffiliated issuers		10,891		$	3,583,069
Expenses
Advisory fee (see Note B)		428,828
Transfer agency—Class A		3
Transfer agency—Advisor Class		9,938
Distribution fee—Class A		77
Custody and accounting		55,409
Administrative		52,567
Audit and tax		32,065
Registration fees		22,959
Legal		15,150
Printing		13,147
Directors’ fees		9,424
Miscellaneous		6,601
Total expenses		646,168
Less: expenses waived and reimbursed by the Adviser (see Note B)		(75,291	)
Net expenses					570,877
Net investment income					3,012,192
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions					(2,545,471	)
Forward currency exchange contracts					(333,257	)
Futures					(135,175	)
Foreign currency transactions					28,259
Net change in unrealized appreciation (depreciation) on:
Investments					15,668,350
Forward currency exchange contracts					(3,671	)
Futures					614,195
Foreign currency denominated assets and liabilities					10,441
Net gain on investment and foreign currency transactions					13,303,671
Net Increase in Net Assets from Operations				$	16,315,863

See notes to financial statements.

32    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	3,012,192		$	4,257,987
Net realized loss on investment and foreign currency transactions		(2,985,644	)		(5,373,851	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities		16,289,315			(43,944,475	)
Net increase (decrease) in net assets from operations		16,315,863			(45,060,339	)
Distributions to Shareholders
Class A		(1,098	)		(1,743	)
Advisor Class		(3,647,222	)		(5,232,202	)
Capital Stock Transactions
Net increase		24,651,040			58,179,131
Total increase		37,318,583			7,884,847
Net Assets
Beginning of period		177,143,581			169,258,734
End of period	$	214,462,164		$	177,143,581

See notes to financial statements.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    33

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 Sustainable Thematic Credit Portfolio (the “Fund”), a non-diversified portfolio. The Fund has authorized the issuance of Class A, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class C, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued as of April 30, 2023. Class A shares are sold with a front-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%. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 10 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Company’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Company’s portfolio investments, subject to the Board’s oversight.

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national

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NOTES TO FINANCIAL STATEMENTS (continued)

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. 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

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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., 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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 April 30, 2023:

Investments in Securities	Level 1			Level 2			Level 3			Total
Assets:
Corporates – Investment Grade	$	– 0	–	$	202,765,863		$	– 0	–	$	202,765,863
Corporates – Non-Investment Grade		– 0	–		5,396,875			– 0	–		5,396,875
Emerging Markets – Corporate Bonds		– 0	–		2,338,953			– 0	–		2,338,953
Supranationals		– 0	–		893,420			– 0	–		893,420
Local Governments – US Municipal Bonds		– 0	–		61,485			– 0	–		61,485
Short-Term Investments:
Investment Companies		437,826			– 0	–		– 0	–		437,826
Time Deposits		– 0	–		47,086			– 0	–		47,086
Total Investments in Securities		437,826			211,503,682			– 0	–		211,941,508

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities	Level 1			Level 2			Level 3			Total
Other Financial Instruments*:
Assets
Futures	$	196,625		$	– 0	–	$	– 0	–	$	196,625	†
Liabilities
Futures		(144,473	)		– 0	–		– 0	–		(144,473	)†
Forward Currency Exchange Contracts		– 0	–		(123,005	)		– 0	–		(123,005	)
Total	$	489,978		$	211,380,677		$	– 0	–	$	211,870,655

* 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, written options and written swaptions which are valued at market value.

† 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.

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 the 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 two 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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled 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 portfolio 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.

8. Offering Expenses

Offering expenses of $128,373 were deferred and amortized on a straight line basis over a one year period starting from May 10, 2021 (commencement of operations).

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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 has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating (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 .85% and .60% of the daily average net assets for Class A and Advisor Class, respectively. For the six months ended April 30, 2023, such reimbursements/waivers amounted to $73,832. The Expense Caps may not be terminated by the Adviser before January 31, 2024. Any fees waived and expenses borne by the Adviser through May 10, 2022 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 $122,942 for the fiscal period ended October 31, 2021 and $222,462 for the year ended October 31, 2022. In any case, no repayment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentages 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 six months ended April 30, 2023, the reimbursement for such services amounted to $52,567.

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 $9,000 for the six months ended April 30, 2023.

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 $0 from the sale of Class A shares and received no contingent deferred sales charges imposed upon redemptions by shareholders of Class A shares, for the six months ended April 30, 2023.

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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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $1,459.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	6,929	$	28,718	$	35,209	$	438	$	56

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 .25% of the Fund’s average daily net assets attributable to Class A shares. There are no distribution and servicing fees on the Advisor Class. 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. 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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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023, were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	52,670,201		$	20,092,411
U.S. government securities		– 0	–		2,829,322

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	1,249,141
Gross unrealized depreciation		(29,437,146	)
Net unrealized depreciation	$	(28,188,005	)

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:

• 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 for non-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.

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During the six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging purposes.

• 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 for non-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 six months ended April 30, 2023, the Fund held futures 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 tables below for additional details.

During the six months ended April 30, 2023, 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 for variation margin on futures	$	196,625	*	Payable for variation margin on futures	$	144,473	*
Foreign currency contracts					Unrealized depreciation on forward currency exchange contracts		123,005
Total		$	196,625			$	267,478

* 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.

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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 futures; Net change in unrealized appreciation (depreciation) on futures	$	(135,175	)	$	614,195
Foreign currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts		(333,257	)		(3,671	)
Total		$	(468,432	)	$	610,524

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	2,751,702	(a)
Average principal amount of sale contracts	$	3,999,569
Futures:
Average notional amount of buy contracts	$	10,936,516
Average notional amount of sale contracts	$	6,803,098

(a) Positions were open for one month during the reporting 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 April 30, 2023. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.

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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
Citibank, NA	$	123,005	$	– 0	–	$	– 0	–	$	– 0	–	$	123,005
Total	$	123,005	$	– 0	–	$	– 0	–	$	– 0	–	$	123,005	^

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

^ 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 in non-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

Capital Stock

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

	Shares				Amount
	Six Months Ended April 30, 2023 (unaudited)		Year Ended October 31, 2022		Six Months Ended April 30, 2023 (unaudited)		Year Ended October 31, 2022
Class A
Shares issued in reinvestment of dividends and distributions		117		165	$	953	$	1,484
Net increase		117		165	$	953	$	1,484

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Advisor Class
Shares sold		3,920,216			8,566,886		$	32,206,519		$	79,602,059
Shares issued in reinvestment of dividends and distributions		373,052			493,814			3,055,952			4,382,521
Shares redeemed		(1,293,020	)		(2,886,247	)		(10,612,384	)		(25,806,933	)
Net increase		3,000,248			6,174,453		$	24,650,087		$	58,177,647

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the stock, bond or currency markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

ESG Risk—Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities of companies with ESG practices may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, ESG factors and “sustainability” criteria are not uniformly defined, and may differ from those used by other funds. In addition, in evaluating an investment, the Adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment.

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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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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”) tend to have 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 factors such as specific corporate developments, interest rate sensitivity and negative perceptions of the junk bond market generally, and may be more difficult to trade 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 for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

Foreign (Non-U.S.) Risk—Investments in securities of non-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 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 are 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. Emerging market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries.

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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 are or 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. 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.

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 Transition and Associated Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the

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NOTES TO FINANCIAL STATEMENTS (continued)

London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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 NAV. 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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE H

Distributions to Shareholders

The tax character of distributions paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal year ended October 31, 2022 and the period ended October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	5,154,448	$	1,005,962
Net long-term capital gains		79,497		– 0	–
Total taxable distributions paid	$	5,233,945	$	1,005,962

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	529,082
Accumulated capital and other losses		(6,899,687	)(a)
Unrealized appreciation (depreciation)		(44,105,759	)(b)
Total accumulated earnings (deficit)	$	(50,476,364	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $6,899,687.

(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 callable bonds.

(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, 2022, the Fund had a net short-term capital loss carryforward of $4,067,604 and a net long-term capital loss carryforward of $2,832,083, which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  7.74			$  10.12			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.12			.18			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.57			(2.32	)		.13
Net increase (decrease) in net asset value from operations		.69			(2.14	)		.20
Less: Dividends and Distributions
Dividends from net investment income		(.15	)		(.23	)		(.08	)
Distributions from net realized gain on investment and foreign currency transactions		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.15	)		(.24	)		(.08	)
Net asset value, end of period		$  8.28			$  7.74			$  10.12
Total Return
Total investment return based on net asset value(d)		8.89	%		(21.48	)%		2.00	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$63			$58			$74
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.85	%(e)		.85	%		.85	%(e)
Expenses, before waivers/reimbursements		.93	%(e)		.97	%		1.14	%(e)
Net investment income(c)		2.91	%(e)		2.04	%		1.47	%(e)
Portfolio turnover rate		12	%		25	%		31	%

See footnote summary on page 54.

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FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  7.74			$  10.12			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.13			.21			.08
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.57			(2.33	)		.13
Net increase (decrease) in net asset value from operations		.7			(2.12	)		.21
Less: Dividends and Distributions
Dividends from net investment income		(.16	)		(.25	)		(.09	)
Distributions from net realized gain on investment and foreign currency transactions		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.16	)		(.26	)		(.09	)
Net asset value, end of period		$  8.28			$  7.74			$  10.12
Total Return
Total investment return based on net asset value(d)		9.02	%		(21.29	)%		2.12	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$214,399			$177,086			$169,185
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%(e)		.60	%		.60	%(e)
Expenses, before waivers/reimbursements		.68	%(e)		.72	%		.93	%(e)
Net investment income(c)		3.16	%(e)		2.31	%		1.69	%(e)
Portfolio turnover rate		12	%		25	%		31	%

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Net of expenses waived/reimbursed 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. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total investment return. Total investment 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 for a period of less than one year is not annualized.

(e) Annualized.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry L. Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President Tiffanie Wong⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672   Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001

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 Sustainable Thematic Credit Team. Mr. Distenfeld and Ms. Wong are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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Operation and Effectiveness of the Funds’ Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors/Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds’ LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 Sustainable Thematic Credit Portfolio (the “Fund”) at a meeting held in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 may from time to time propose 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 had not requested any reimbursements from the Fund since the Fund’s inception. 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, 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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 for 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 the 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 period reviewed.

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors 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 received detailed performance information for the Fund at each regular Board meeting since the Fund’s inception.

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 the 1-year period ended July 31, 2022 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 directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President 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 any sub-advised funds utilizing investment strategies similar to those of the

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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 Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-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 and sub-advised fund 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.

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 the 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 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 had

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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

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

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NOTES

64    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

STC-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the AB Tax-Aware Fixed Income Opportunities Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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SEMI-ANNUAL REPORT

June 13, 2023

This report provides management’s discussion of fund performance for the AB Tax-Aware Fixed Income Opportunities Portfolio for the semi-annual reporting period ended April 30, 2023.

The investment objective of the Fund is to seek to maximize after-tax return and income.

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO
Class A Shares		7.95%		1.82%
Class C Shares		7.55%		1.06%
Advisor Class Shares1		8.08%		2.08%
Bloomberg Municipal Bond Index		7.65%		2.87%

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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Bloomberg Municipal Bond Index, for the six- and 12-month periods ended April 30, 2023.

For the six-month period, all share classes except Class C outperformed the benchmark, before sales charges. Security selection within the state general obligation and single-family housing sectors, as well as yield-curve positioning with overweights to the long end and short end of the curve contributed to performance, relative to the benchmark. Security selection within the miscellaneous revenue and senior living sectors detracted.

For the 12-month period, all share classes of the Fund underperformed the benchmark. An overweight to lower-rated (noninvestment-grade) detracted, relative to the benchmark, which is fully composed of investment-grade bonds. Additionally, security selection within the electric utility and miscellaneous revenue sectors also detracted, while security selection within single- and multi-family housing contributed. Lastly, overweights to the long and short end of the yield curve contributed to performance.

The Fund used derivatives in the form of interest rates swaps for hedging purposes, which added to absolute returns for both periods. Credit default

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swaps were used for hedging and investment purposes, which added for both periods. Consumer Price Index swaps were used for hedging purposes, which had no material impact during both periods. Municipal market data rate locks were used for hedging purposes, which added for both periods.

MARKET REVIEW AND INVESTMENT STRATEGY

Over the six-month period ended April 30, 2023, the yield on a 10-Year AAA municipal bond fell to 2.35% from 3.34%. The yield on the 10-Year US Treasury fell to 3.44% from 4.06%. After-tax spreads compressed, indicating municipal outperformance over Treasuries, which was largely driven by an improved technical environment toward the end of the period. Credit spreads gyrated in a range-bound pattern throughout the six-month period as concerns over the health of the banking system and the debt ceiling kept volatility elevated.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek investments in attractive after-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 April 30, 2023, 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 were 2.54% and 0.00%, respectively.

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

(continued on next page)

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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 on non-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 expected after-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 the after-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 Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Municipal Bond Index represents the performance of the long-term tax-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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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 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, public health crises, uncertainties related to the tax status of municipal securities, and 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, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic

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DISCLOSURES AND RISKS (continued)

has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may worsen, adversely affecting the performance of the Fund. 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.

In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets.

The Fund invests, from time to time, 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. Puerto Rico continues to face a very challenging economic and fiscal environment, worsened by the spread of COVID-19 and the adverse effect that related governmental and public responses have had on Puerto Rico’s economy. 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 deteriorate further.

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.

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DISCLOSURES AND RISKS (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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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 are or 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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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DISCLOSURES AND RISKS (continued)

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 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 3% 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 their different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1		Taxable Equivalent Yields2
CLASS A SHARES						3.65%		5.62%
1 Year		1.82%		-1.25%
5 Years		2.46%		1.83%
Since Inception3		2.79%		2.45%
CLASS C SHARES						3.01%		4.63%
1 Year		1.06%		0.07%
5 Years		1.70%		1.70%
Since Inception3,4		2.03%		2.03%
ADVISOR CLASS SHARES5						4.02%		6.18%
1 Year		2.08%		2.08%
5 Years		2.72%		2.72%
Since Inception3		3.05%		3.05%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.91%, 1.66% and 0.66% 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 limited the Fund’s total 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, 2024, and may be extended by the Adviser for additional one-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 the 30-day period ended April 30, 2023.

2 Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable.

3 Inception date: 12/11/2013.

4 Assumes conversion of Class C shares into Class A shares after eight years.

5 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.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-4.66%
5 Years		1.72%
Since Inception1		2.43%
CLASS C SHARES
1 Year		-3.39%
5 Years		1.56%
Since Inception1,2		2.01%
ADVISOR CLASS SHARES3
1 Year		-1.46%
5 Years		2.58%
Since Inception1		3.03%

1 Inception date: 12/11/2013.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 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.

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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 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 November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,079.50	$	4.38		0.85	%
Hypothetical**	$	1,000	$	1,020.58	$	4.26		0.85	%
Class C
Actual	$	1,000	$	1,075.50	$	8.23		1.60	%
Hypothetical**	$	1,000	$	1,016.86	$	8.00		1.60	%
Advisor Class
Actual	$	1,000	$	1,080.80	$	3.10		0.60	%
Hypothetical**	$	1,000	$	1,021.82	$	3.01		0.60	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $434.4

1 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 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-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 of non-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 2.8% in 32 different states, American Samoa, District of Columbia and Guam.

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PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 100.2%
Long-Term Municipal Bonds – 86.0%
Alabama – 3.4%
Black Belt Energy Gas District (Goldman Sachs Group, Inc. (The)) Series 2021 4.00%, 10/01/2052	$	1,000	$	997,103
Series 2022-F 5.50%, 11/01/2053		2,000		2,129,197
Black Belt Energy Gas District (Nomura Holdings, Inc.) Series 2022-A 4.00%, 12/01/2052		1,000		969,161
Black Belt Energy Gas District (Royal Bank of Canada) Series 2023-B 5.25%, 12/01/2053		4,000		4,364,155
County of Jefferson AL Sewer Revenue Series 2013-D 6.00%, 10/01/2042		110		116,320
Southeast Energy Authority A Cooperative District (Morgan Stanley) Series 2022-A 5.50%, 01/01/2053		1,000		1,080,377
5.636% (SOFR + 2.42%), 01/01/2053(a)		2,000		2,056,478
Southeast Energy Authority A Cooperative District (Sumitomo Mitsui Financial Group, Inc.) Series 2023-A 5.25%, 01/01/2054		2,000		2,127,848
Sumter County Industrial Development Authority/AL (Enviva, Inc.) Series 2022 6.00%, 07/15/2052		1,185		1,066,744
				14,907,383
American Samoa – 0.0%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2018 7.125%, 09/01/2038(b)		135		148,974

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arizona – 1.4%
Arizona Industrial Development Authority (KIPP New York Public Charter Schools – Jerome Facility Project) Series 2021-B 4.00%, 07/01/2061	$	1,000	$	781,192
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 7.75%, 07/01/2050(b)(c)(d)		1,000		650,000
Arizona Industrial Development Authority (Pinecrest Academy of Nevada) Series 2020-A 4.00%, 07/15/2050(b)		100		75,957
Chandler Industrial Development Authority (Intel Corp.) Series 2022 5.00%, 09/01/2042		2,000		2,083,503
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.222%, 07/01/2030		1,000		847,609
City of Tempe AZ (City of Tempe AZ COP) Series 2021 2.521%, 07/01/2036		1,000		766,981
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona Obligated Group) Series 2014 5.00%, 07/01/2044		100		100,005
Industrial Development Authority of the County of Pima (The) (La Posada at Park Centre, Inc. Obligated Group) Series 2022 6.75%, 11/15/2042(b)		250		253,319
7.00%, 11/15/2057(b)		250		251,889
Maricopa County Industrial Development Authority (Commercial Metals Co.) Series 2022 4.00%, 10/15/2047(b)		500		413,261
				6,223,716

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arkansas – 0.1%
Arkansas Development Finance Authority (United States Steel Corp.) Series 2022 5.45%, 09/01/2052	$	200	$	198,824
California – 11.6%
Alameda Corridor Transportation Authority Series 2022-A 0.00%, 10/01/2049(e)		1,000		499,098
ARC70 II TRUST Series 2021 4.00%, 12/01/2059		300		252,590
California Community Choice Financing Authority (Deutsche Bank AG) Series 2023 5.25%, 01/01/2054		4,445		4,640,529
California Community Choice Financing Authority (Goldman Sachs Group, Inc. (The)) Series 2023 5.00%, 12/01/2053		1,000		1,060,884
California Community Choice Financing Authority (Morgan Stanley) Series 2023 4.846% (SOFR + 1.63%), 07/01/2053(a)		2,000		1,999,280
5.00%, 07/01/2053		10,000		10,642,262
California Community Housing Agency (California Community Housing Agency Aster Apartments) Series 2021-A 4.00%, 02/01/2056(b)		1,000		821,599
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021 4.00%, 02/01/2056(b)		250		202,697
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 3.00%, 08/01/2056(b)		500		331,498
4.00%, 08/01/2046(b)		500		400,552
California Community Housing Agency (California Community Housing Agency Summit at Sausalito Apartments) Series 2021 3.00%, 02/01/2057(b)		1,000		664,636

16    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California Community Housing Agency (California Community Housing Agency Twin Creek Apartments) Series 2022 Zero Coupon, 08/01/2065(b)	$	2,500	$	140,589
5.50%, 02/01/2040(b)		1,000		913,021
California Infrastructure & Economic Development Bank (DesertXpress Enterprises LLC) Series 2023 3.65%, 01/01/2050(b)		3,000		2,993,368
7.75%, 01/01/2050(b)		590		587,841
California Municipal Finance Authority (CHF-Riverside II LLC) Series 2019 5.00%, 05/15/2040		250		258,006
California Municipal Finance Authority (Samuel Merritt University) Series 2022 5.25%, 06/01/2053		1,000		1,077,141
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/2045(b)		250		249,974
Series 2019 5.00%, 11/21/2045(b)		1,000		1,013,214
Series 2023 5.00%, 07/01/2035(b)		1,250		1,325,593
California School Finance Authority (Classical Academy Obligated Group) Series 2022 5.00%, 10/01/2052(b)		1,000		1,003,162
California Statewide Communities Development Authority (Enloe Medical Center Obligated Group) AGM Series 2022-A 5.375%, 08/15/2057		1,000		1,077,518
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2016-A 5.25%, 12/01/2056(b)		1,000		957,363
City of Los Angeles Department of Airports Series 2020-C 5.00%, 05/15/2039		1,000		1,072,803
Series 2022 4.00%, 05/15/2047		1,000		957,607
5.25%, 05/15/2047		2,000		2,154,643

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CMFA Special Finance Agency (CMFA Special Finance Agency Enclave) Series 2022-A 4.00%, 08/01/2058(b)	$	400	$	307,504
CMFA Special Finance Agency (CMFA Special Finance Agency Latitude33) Series 2021-A 3.00%, 12/01/2056(b)		500		330,865
CMFA Special Finance Agency (CMFA Special Finance Agency Solana at Grand) Series 2021-A 4.00%, 08/01/2056(b)		1,000		820,550
CMFA Special Finance Agency VIII Elan Huntington Beach Series 2021 3.00%, 08/01/2056(b)		1,000		659,466
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 777 Place-Pomona) Series 2021 3.25%, 05/01/2057(b)		500		344,754
4.00%, 05/01/2057(b)		350		243,247
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 1818 Platinum Triangle-Anaheim) Series 2021 3.25%, 04/01/2057(b)		500		346,575
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2056(b)		400		323,746
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 4.00%, 10/01/2056(b)		200		148,515
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Crescent) Series 2022 4.30%, 07/01/2059(b)		500		417,071
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(b)		100		68,286

18    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Millennium South Bay-Hawthorne) Series 2021 3.25%, 07/01/2056(b)	$	500	$	336,635
4.00%, 07/01/2058(b)		200		139,024
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Oceanaire Apartments) Series 2021 4.00%, 09/01/2056(b)		200		150,459
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Park Crossing Apartments) Series 2021 3.25%, 12/01/2058(b)		300		201,996
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Pasadena Portfolio) Series 2021 3.00%, 12/01/2056(b)		1,000		664,102
4.00%, 12/01/2056(b)		400		287,643
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A2 4.00%, 07/01/2056(b)		1,000		744,385
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 3.25%, 10/01/2058(b)		1,000		676,375
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Waterscape Apartments) Series 2021-A 3.00%, 09/01/2056(b)		500		327,240
Golden State Tobacco Securitization Corp. Series 2021 3.85%, 06/01/2050		1,000		915,161
Series 2021-B Zero Coupon, 06/01/2066		1,725		190,532
Hastings Campus Housing Finance Authority Series 2020-A 5.00%, 07/01/2061(b)		1,000		806,879

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
River Islands Public Financing Authority (River Islands Public Financing Authority Community Facilities District No. 2003-1) Series 2022 5.75%, 09/01/2052	$	1,000	$	985,003
San Francisco Intl Airport Series 2019-A 5.00%, 05/01/2044		1,000		1,040,466
State of California Series 2023 5.25%, 10/01/2050		100		114,329
Tobacco Securitization Authority of Northern California (Sacramento County Tobacco Securitization Corp.) Series 2021 Zero Coupon, 06/01/2060		200		33,707
Tobacco Securitization Authority of Southern California (San Diego County Tobacco Asset Securitization Corp.) Series 2006 Zero Coupon, 06/01/2046		1,000		189,253
University of California Series 2023-B 5.00%, 05/15/2042		1,000		1,144,067
				50,255,303
Colorado – 1.7%
Aurora Highlands Community Authority Board Series 2021-A 5.75%, 12/01/2051		500		451,032
Centerra Metropolitan District No. 1 Series 2022 6.50%, 12/01/2053		500		503,826
City & County of Denver CO (United Airlines, Inc.) Series 2017 5.00%, 10/01/2032		615		615,598
Colorado Educational & Cultural Facilities Authority (James Irwin Educational Foundation Obligated Group) Series 2022 5.00%, 09/01/2062		1,000		947,337

20    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Educational & Cultural Facilities Authority (Lighthouse Building Corp.) Series 2021 4.00%, 10/01/2061	$	1,000	$	764,976
Colorado Health Facilities Authority (Aberdeen Ridge, Inc. Obligated Group) Series 2021-A 5.00%, 05/15/2049		100		76,775
Colorado Health Facilities Authority (Christian Living Neighborhoods Obligated Group) Series 2021 4.00%, 01/01/2042		250		181,453
Colorado Health Facilities Authority (Frasier Meadows Manor, Inc. Obligated Group) Series 2023-2 4.00%, 05/15/2041		100		80,222
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015-B 5.00%, 09/01/2030		200		206,585
Copper Ridge Metropolitan District Series 2019 5.00%, 12/01/2039		500		463,767
Douglas County Housing Partnership (Bridgewater Castle Rock ALF LLC) Series 2021 5.375%, 01/01/2041(b)		250		185,232
E-470 Public Highway Authority Series 2021-B 3.573% (SOFR + 0.35%), 09/01/2039(a)		1,000		993,468
Four Corners Business Improvement District Series 2022 6.00%, 12/01/2052		500		457,848
Johnstown Plaza Metropolitan District Series 2022 4.25%, 12/01/2046		488		393,797
Pueblo Urban Renewal Authority Series 2021-B Zero Coupon, 12/01/2025(b)		260		202,894
Sterling Ranch Community Authority Board (Sterling Ranch Metropolitan District No. 3) Series 2022 6.50%, 12/01/2042		500		507,423

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2028	$	380	$	402,935
AGM Series 2020 5.00%, 12/01/2050		100		105,233
				7,540,401
Connecticut – 0.9%
City of New Haven CT Series 2018-A 5.50%, 08/01/2038		615		662,355
Connecticut State Health & Educational Facilities Authority Series 2023-A 2.80%, 07/01/2048		2,200		2,179,246
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2037		1,000		982,598
Town of Hamden CT (Whitney Center, Inc. Obligated Group) Series 2022-A 7.00%, 01/01/2053		100		101,883
				3,926,082
Delaware – 0.1%
Affordable Housing Tax-Exempt Bond Pass-Thru Trust Series 2023-2 6.00%, 10/05/2040(b)(f)		500		500,000
District of Columbia – 0.1%
District of Columbia (Friendship Public Charter School, Inc.) Series 2016-A 5.00%, 06/01/2041		100		100,768
District of Columbia Tobacco Settlement Financing Corp. Series 2006 Zero Coupon, 06/15/2055		2,500		224,955
				325,723
Florida – 4.8%
Align Affordable Housing Bond Fund LP (SHI – Lake Worth LLC) Series 2021 3.25%, 12/01/2051(b)		1,000		865,891

22    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Bexley Community Development District Series 2016 4.875%, 05/01/2047	$	100	$	92,011
Capital Trust Agency, Inc. (Educational Growth Fund LLC) Series 2021 Zero Coupon, 07/01/2061(b)		2,000		130,094
5.00%, 07/01/2056(b)		1,190		1,079,848
City of Palmetto FL (Renaissance Arts and Education, Inc.) Series 2022 5.375%, 06/01/2057		1,000		1,008,417
City of Tampa FL (State of Florida Cigarette Tax Revenue) Series 2020-A Zero Coupon, 09/01/2053		1,000		211,983
County of Lake FL (Waterman Communities, Inc.) Series 2020 5.75%, 08/15/2055		200		167,253
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2028		780		810,238
County of Miami-Dade FL Aviation Revenue Series 2015-A 5.00%, 10/01/2031		265		272,380
County of Miami-Dade Seaport Department Series 2013-A 6.00%, 10/01/2038 (Pre-refunded/ETM)		5,000		5,057,207
Series 2023-A 5.25%, 10/01/2052		1,000		1,068,322
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2036		230		119,784
County of Palm Beach FL (Provident Group-PBAU Properties LLC) Series 2019 5.00%, 04/01/2051(b)		1,000		896,368
Florida Development Finance Corp. (Assistance Unlimited, Inc,) Series 2022 6.00%, 08/15/2057(b)		350		333,867
Florida Development Finance Corp. (Brightline Trains Florida LLC) Series 2020 7.375%, 01/01/2049(b)		695		658,520

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Florida Development Finance Corp. (Cornerstone Charter Academy, Inc.) Series 2022 5.00%, 10/01/2042(b)	$	1,000	$	952,229
Florida Development Finance Corp. (Drs Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.) Series 2021 4.00%, 07/01/2051(b)		100		84,204
Florida Development Finance Corp. (IDEA Florida, Inc.) Series 2022 5.25%, 06/15/2029(b)		100		99,221
Florida Development Finance Corp. (Mater Academy, Inc.) Series 2020-A 5.00%, 06/15/2055		1,000		968,810
Florida Development Finance Corp. (Seaside School Consortium, Inc.) Series 2022 5.75%, 06/15/2047		1,000		1,033,303
Lee County Industrial Development Authority/FL (Cypress Cove at Healthpark Florida Obligated Group) Series 2022 5.25%, 10/01/2052		500		427,130
Miami-Dade County Industrial Development Authority (AcadeMir Charter School Middle & Preparatory Academy Obligated Group) Series 2022 5.50%, 07/01/2061(b)		1,000		938,051
North Broward Hospital District Series 2017-B 5.00%, 01/01/2037		100		103,995
Orange County Health Facilities Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2023 4.00%, 08/01/2042(f)		250		212,641
Palm Beach County Educational Facilities Authority (Palm Beach Atlantic University Obligated Group) Series 2021 4.00%, 10/01/2041		1,000		911,130

24    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Palm Beach County Health Facilities Authority (Federation CCRC Operations Corp. Obligated Group) Series 2022 4.25%, 06/01/2056	$	200	$	142,848
Palm Beach County Health Facilities Authority (Green Cay Life Plan Village, Inc.) Series 2022 11.50%, 07/01/2027(b)		100		96,533
Pinellas County Industrial Development Authority Series 2019 5.00%, 07/01/2039		1,000		1,000,136
Town of Davie FL (Nova Southeastern University, Inc.) Series 2018 5.00%, 04/01/2048		530		544,908
Village Community Development District No. 13 Series 2019 3.55%, 05/01/2039		605		499,208
				20,786,530
Georgia – 2.8%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2025		145		142,597
5.00%, 07/01/2031		1,065		1,029,343
Main Street Natural Gas, Inc. (Citadel LP) Series 2022-C 4.00%, 08/01/2052(b)		1,000		961,842
Main Street Natural Gas, Inc. (Citigroup, Inc.) Series 2019-C 4.00%, 03/01/2050		3,215		3,211,434
Series 2023-A 5.00%, 06/01/2053		1,000		1,054,557
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2023-B 5.00%, 07/01/2053		1,000		1,068,417
Main Street Natural Gas, Inc. (Toronto-Dominion Bank/The) Series 2019-B 4.00%, 08/01/2049		2,000		2,009,853

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Municipal Electric Authority of Georgia Series 2019 5.00%, 01/01/2038	$	100	$	105,031
Series 2022 5.50%, 07/01/2063		1,500		1,554,440
AGM Series 2023 5.00%, 07/01/2064		1,000		1,038,741
				12,176,255
Guam – 0.6%
Antonio B Won Pat International Airport Authority Series 2021-A 4.46%, 10/01/2043		1,000		770,558
Guam Power Authority Series 2022-A 5.00%, 10/01/2043		500		519,395
Territory of Guam Series 2019 5.00%, 11/15/2031		195		203,746
Territory of Guam (Guam Section 30 Income Tax) Series 2016-A 5.00%, 12/01/2046		200		196,272
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2021-F 5.00%, 01/01/2029		1,000		1,057,148
				2,747,119
Illinois – 8.9%
Chicago Board of Education Series 2012-A 5.00%, 12/01/2042		240		238,509
Series 2012-B 5.00%, 12/01/2033		1,000		1,002,368
Series 2019-A 5.00%, 12/01/2029		100		105,330
5.00%, 12/01/2030		100		104,838
Series 2019-B 5.00%, 12/01/2033		100		104,009
Series 2021-A 5.00%, 12/01/2033		1,000		1,045,264
Series 2023 5.25%, 04/01/2040		2,000		2,135,322
5.50%, 04/01/2042		1,000		1,086,733
Chicago O’Hare International Airport Series 2015-C 5.00%, 01/01/2034		335		340,966

26    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2017-B 5.00%, 01/01/2035	$	725	$	771,633
Series 2018-A 5.00%, 01/01/2053		1,000		1,022,164
Series 2022 5.50%, 01/01/2055		5,000		5,392,181
Illinois Finance Authority (Clark-Lindsey Village Obligated Group) Series 2022-A 5.50%, 06/01/2057		1,000		873,271
Illinois Finance Authority (DePaul College Prep) Series 2023 5.625%, 08/01/2053(b)		1,000		989,147
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 4.00%, 09/01/2035		100		86,690
Illinois Finance Authority (Lake Forest College) Series 2022-A 5.50%, 10/01/2047		1,000		999,397
Illinois Finance Authority (Park Place of Elmhurst Obligated Group) Series 2021 5.125%, 05/15/2060		77		44,436
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015-C 5.00%, 08/15/2035		250		256,165
Illinois Housing Development Authority Series 2022 5.67%, 12/01/2025(b)		1,000		1,001,579
7.17%, 11/01/2038		100		102,255
Metropolitan Pier & Exposition Authority Series 2015-B 5.00%, 12/15/2045		600		604,385
Series 2022 4.00%, 12/15/2042		1,000		915,231
Metropolitan Pier & Exposition Authority (Metropolitan Pier & Exposition Authority Lease) Series 2020 5.00%, 06/15/2042		640		656,670
Railsplitter Tobacco Settlement Authority Series 2017 5.00%, 06/01/2023		4,000		4,003,944

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Illinois Series 2010 7.35%, 07/01/2035	$	232	$	256,211
Series 2013 5.50%, 07/01/2025 (Pre-refunded/ETM)		270		271,084
Series 2016 5.00%, 02/01/2024		375		378,805
Series 2017-D 5.00%, 11/01/2026		930		981,659
Series 2018-A 5.00%, 10/01/2027		1,000		1,070,660
Series 2019-B 5.00%, 11/01/2031		1,000		1,097,120
Series 2022-A 5.50%, 03/01/2047		1,000		1,093,767
Series 2022-C 5.50%, 10/01/2045		1,000		1,102,287
Series 2023-B 5.00%, 05/01/2033(f)		6,000		6,749,701
Series 2023-D 5.00%, 07/01/2024(f)		1,690		1,715,209
				38,598,990
Indiana – 1.4%
City of Fort Wayne IN (Do Good Foods Fort Wayne LLC Obligated Group) Series 2022 9.00%, 12/01/2044(b)		1,035		1,025,152
10.75%, 12/01/2029		140		139,904
City of Valparaiso IN (Green Oaks of Valparaiso LLC) Series 2021 5.375%, 12/01/2041(b)		150		115,457
City of Whiting IN (BP Products North America, Inc.) Series 2023 4.40%, 11/01/2045		1,000		1,035,352
Indiana Finance Authority (Brightmark Plastics Renewal Indiana LLC) Series 2019 7.00%, 03/01/2039(b)		1,110		839,280
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022 5.00%, 04/01/2029		100		103,720

28    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Indiana Finance Authority (Greencroft Goshen Obligated Group) Series 2021 4.00%, 11/15/2043	$	1,000	$	745,463
Series 2023-2 4.00%, 11/15/2037(f)		100		80,030
Indiana Finance Authority (Marquette Manor) Series 2015-A 5.00%, 03/01/2030		190		190,811
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		165		144,636
Indiana Finance Authority (University of Evansville) Series 2022 5.25%, 09/01/2057		1,000		943,840
Indiana Housing & Community Development Authority (Vita of Marion LLC) Series 2021-A 5.25%, 04/01/2041(b)		1,000		788,423
Series 2021-B 4.00%, 04/01/2024		100		97,614
				6,249,682
Iowa – 2.4%
Iowa Finance Authority Series 2022-E 4.16% (SOFR + 0.80%), 01/01/2052(a)		5,000		4,927,401
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2022 5.00%, 12/01/2050		2,000		2,004,446
Iowa Finance Authority (Iowa Finance Authority State Revolving Fund) Series 2017 5.00%, 08/01/2023		2,500		2,511,163
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018-A 5.00%, 05/15/2043		500		385,113
5.00%, 05/15/2048		325		240,491

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Iowa Finance Authority (Wesley Retirement Services, Inc. Obligated Group) Series 2021 4.00%, 12/01/2031	$	115	$	102,667
4.00%, 12/01/2041		170		134,157
4.00%, 12/01/2046		115		85,819
4.00%, 12/01/2051		205		147,522
				10,538,779
Kansas – 0.1%
City of Overland Park KS Sales Tax Revenue Series 2022 6.00%, 11/15/2034(b)		100		103,048
6.50%, 11/15/2042(b)		300		306,791
				409,839
Kentucky – 1.0%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 4.00%, 02/01/2034		385		386,442
City of Henderson KY (Pratt Paper LLC) Series 2022 3.70%, 01/01/2032(b)		325		309,420
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017-B 5.00%, 08/15/2037		175		182,996
Kentucky Economic Development Finance Authority (Carmel Manor, Inc.) Series 2022 4.50%, 10/01/2027		1,000		992,859
Kentucky Economic Development Finance Authority (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2039		160		155,692
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/2042		65		53,663

30    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017-A 5.00%, 06/01/2037	$	425	$	430,653
Kentucky Housing Corp. (Churchill Park LLLP) Series 2022-A 4.65%, 05/01/2025(b)		130		129,633
5.75%, 11/01/2040(b)		600		603,757
Series 2022-B 6.75%, 11/01/2040(b)		100		100,597
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		600		601,460
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/2033		225		236,003
				4,183,175
Louisiana – 1.3%
City of New Orleans LA Water System Revenue Series 2014 5.00%, 12/01/2034 (Pre-refunded/ETM)		100		103,070
Louisiana Local Government Environmental Facilities & Community Development Auth (Louisiana Utilities Restoration Corp. ELL System Restoration Revenue) Series 2023 5.048%, 12/01/2034		1,000		1,030,808
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/2036		675		709,044
Louisiana Public Facilities Authority (Geo Prep Mid-City of Greater Baton Rouge) Series 2022 6.125%, 06/01/2052(b)		1,025		1,022,173
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014-A 7.50%, 07/01/2023(c)(d)(g)		250		2

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) Series 2019 5.00%, 07/01/2059	$	1,335	$	1,356,102
New Orleans Aviation Board Series 2017-B 5.00%, 01/01/2043		215		219,238
Parish of St. James LA (NuStar Logistics LP) Series 2020-2 6.35%, 07/01/2040(b)		100		107,962
State of Louisiana Gasoline & Fuels Tax Revenue Series 2022-A 3.867% (SOFR + 0.50%), 05/01/2043(a)		990		967,237
				5,515,636
Maine – 0.0%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 01/01/2025(b)		100		100,657
Maryland – 2.4%
City of Baltimore MD (East Baltimore Research Park Project) Series 2017-A 5.00%, 09/01/2038		150		150,969
Maryland Economic Development Corp. (Air Cargo Obligated Group) Series 2019 4.00%, 07/01/2044		600		530,121
Maryland Economic Development Corp. (Bowie State University) Series 2020 5.00%, 07/01/2055		1,000		1,007,245
Maryland Economic Development Corp. (Maryland Economic Development Corp. Morgan View & Thurgood Marshall Student Hsg) Series 2022 6.00%, 07/01/2058		1,000		1,088,052
Maryland Economic Development Corp. (Purple Line Transit Partners LLC) Series 2022 5.25%, 06/30/2047		1,000		1,017,086
5.25%, 06/30/2052		1,000		1,013,943

32    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Maryland Health & Higher Educational Facilities Authority (Adventist Healthcare Obligated Group) Series 2021 5.00%, 01/01/2036	$	500	$	517,141
Maryland Stadium Authority (Baltimore City Public School Construction Financing Fund) Series 2020 5.00%, 05/01/2050		1,500		1,691,514
State of Maryland Department of Transportation Series 2022-2 5.00%, 12/01/2023		3,500		3,538,313
				10,554,384
Massachusetts – 0.7%
Commonwealth of Massachusetts AGC Series 2007-A 3.795% (LIBOR 3 Month + 0.57%), 05/01/2037(a)		1,300		1,267,320
Massachusetts Development Finance Agency (Merrimack College) Series 2014 5.125%, 07/01/2044		620		622,778
Massachusetts Development Finance Agency (Tufts Medicine Obligated Group) Series 2019-A 5.00%, 07/01/2044		1,000		988,483
				2,878,581
Michigan – 1.9%
City of Detroit MI Series 2014-B 4.00%, 04/01/2044(e)		245		180,083
Series 2018 5.00%, 04/01/2038		75		75,799
Series 2021-A 5.00%, 04/01/2046		2,000		1,955,364
Series 2021-B 3.644%, 04/01/2034		200		159,884
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) AGM Series 2006-D 4.068% (LIBOR 3 Month + 0.60%), 07/01/2032(a)		1,000		931,691

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Michigan Finance Authority (Michigan Finance Authority Tobacco Settlement Revenue) Series 2020-A 3.267%, 06/01/2039	$	1,000	$	901,851
Michigan State Building Authority (Michigan State Building Authority Lease) Series 2013-I 5.00%, 10/15/2029		2,000		2,021,472
Michigan Strategic Fund (Michigan Strategic Fund – I 75 Improvement Project) AGM Series 2018 4.125%, 06/30/2035		1,610		1,598,313
Michigan Tobacco Settlement Finance Authority (Tobacco Settlement Financing Corp./MI) Series 2008-C Zero Coupon, 06/01/2058		7,750		318,361
				8,142,818
Minnesota – 0.1%
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) Series 2019 5.00%, 08/01/2049		105		97,881
Duluth Economic Development Authority (Benedictine Health System Obligated Group) Series 2021 4.00%, 07/01/2036		100		83,417
4.00%, 07/01/2041		100		78,425
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Minnesota Math & Science Academy) Series 2021 4.00%, 06/01/2051(b)		100		70,696
4.00%, 06/01/2056(b)		100		68,488
				398,907
Mississippi – 0.5%
Mississippi Business Finance Corp. (Alden Group Renewable Energy Mississippi LLC) Series 2022 8.00%, 12/01/2029(b)		500		495,313
Mississippi Business Finance Corp. (Enviva, Inc.) Series 2022 7.75%, 07/15/2047		270		272,156

34    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 4.00%, 10/01/2035(b)	$	1,000	$	927,819
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		250		256,468
				1,951,756
Missouri – 0.1%
Kansas City Industrial Development Authority Series 2019 5.00%, 07/01/2040(b)		180		155,484
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2021-A 5.00%, 08/15/2056		300		226,308
Taney County Industrial Development Authority (Taney County Industrial Development Authority Lease) Series 2023 6.00%, 10/01/2049(b)		100		98,303
				480,095
Nevada – 0.4%
City of Reno NV (County of Washoe NV Sales Tax Revenue) Series 2018-C Zero Coupon, 07/01/2058(b)		2,000		255,033
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019-A 2.75%, 06/15/2028(b)		525		475,752
State of Nevada Department of Business & Industry (DesertXpress Enterprises LLC) Series 2023 3.70%, 01/01/2050(b)		1,100		1,098,291
				1,829,076
New Hampshire – 0.0%
New Hampshire Business Finance Authority Series 2022-2 0.35%, 09/20/2036		1,000		23,730

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey – 3.0%
Essex County Improvement Authority (Friends of TEAM Academy Charter School Obligated Group) Series 2021 4.00%, 06/15/2051	$	1,100	$	940,272
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2019 5.25%, 04/01/2026		1,000		1,056,983
Series 2023 5.397%, 03/01/2033		1,000		1,029,699
New Jersey Economic Development Authority (State of New Jersey) Series 2024-S 5.00%, 06/15/2026(f)		1,000		1,024,848
5.00%, 06/15/2034(f)		2,000		2,190,809
New Jersey Economic Development Authority (United Airlines, Inc.) Series 2012 5.25%, 09/15/2029		210		211,320
New Jersey Educational Facilities Authority (Stevens Institute of Technology International, Inc.) Series 2020-A 5.00%, 07/01/2045		100		102,978
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017-A 5.00%, 07/01/2036		280		294,052
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		550		581,065
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2018-A 5.00%, 12/15/2035		340		366,877
New Jersey Turnpike Authority Series 2017-B 5.00%, 01/01/2032		540		593,233
South Jersey Transportation Authority BAM Series 2022 5.25%, 11/01/2052		1,000		1,090,785

36    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tobacco Settlement Financing Corp./NJ Series 2018-B 5.00%, 06/01/2046	$	3,500	$	3,480,880
				12,963,801
New Mexico – 0.3%
New Mexico Hospital Equipment Loan Council (Haverland Carter Lifestyle Obligated Group) Series 2019 5.00%, 07/01/2049		1,000		765,312
Winrock Town Center Tax Increment Development District No. 1 Series 2022 3.75%, 05/01/2028(b)		771		726,566
				1,491,878
New York – 7.4%
Build NYC Resource Corp. (Integration Charter Schools) Series 2021 5.00%, 06/01/2056(b)		400		348,918
Build NYC Resource Corp. (Kipp NYC Public Charter Schools) Series 2023 5.25%, 07/01/2062		1,000		1,013,692
Hempstead Town Local Development Corp. (Evergreen Charter School, Inc.) Series 2022-A 5.50%, 06/15/2057		2,000		1,957,658
Metropolitan Transportation Authority Series 2020-A 5.00%, 11/15/2045		1,000		1,089,692
Series 2020-C 4.75%, 11/15/2045		1,000		1,019,147
5.00%, 11/15/2050		1,000		1,033,507
Series 2020-E 4.00%, 11/15/2026		1,155		1,172,347
Series 2021-D 3.553% (SOFR + 0.33%), 11/01/2035(a)		900		891,210
Monroe County Industrial Development Corp./NY (Academy of Health Sciences Charter School) Series 2022 6.00%, 07/01/2057(b)		1,000		968,892
Monroe County Industrial Development Corp./NY (St. Ann’s of Greater Rochester Obligated Group) Series 2019 5.00%, 01/01/2040		550		441,810

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York City Transitional Finance Authority Building Aid Revenue (New York City Transitional Finance Authority Building Aid Revenue State Lease) Series 2018-S 5.00%, 07/15/2032	$	865	$	967,560
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2018 5.00%, 08/01/2023		1,000		1,004,365
New York Counties Tobacco Trust V Series 2005 Zero Coupon, 06/01/2050		350		48,939
New York Liberty Development Corp. (3 World Trade Center LLC) Series 2014 5.00%, 11/15/2044(b)		1,215		1,176,069
5.375%, 11/15/2040(b)		115		115,039
New York State Dormitory Authority (Garnet Health Medical Center Obligated Group) Series 2017 5.00%, 12/01/2034(b)		1,000		994,982
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028		425		431,166
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 4.00%, 01/01/2036		275		264,555
Series 2020 4.375%, 10/01/2045		1,000		949,905
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2041		150		150,296
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021-A 2.917%, 05/15/2040		500		381,526
Series 2022-A 5.00%, 08/15/2024		5,000		5,105,073
Series 2022-E 3.596%, 04/01/2026(h)		10,000		10,061,207

38    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 09/15/2037	$	120	$	95,675
Westchester County Local Development Corp. (Purchase Senior Learning Community Obligated Group) Series 2021 2.875%, 07/01/2026(b)		250		237,083
Western Regional Off-Track Betting Corp. Series 2021 4.125%, 12/01/2041(b)		100		74,854
				31,995,167
North Carolina – 0.4%
Fayetteville State University Series 2023 5.00%, 04/01/2038(b)		1,045		1,105,808
North Carolina Turnpike Authority Series 2017 5.00%, 01/01/2032		500		527,434
				1,633,242
North Dakota – 0.2%
City of Grand Forks ND (Altru Health System Obligated Group) Series 2021 4.00%, 12/01/2038		1,000		911,527
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(b)(c)(d)		100		55,000
				966,527
Ohio – 2.3%
American Municipal Power, Inc. (American Municipal Power Solar Electricity Prepayment Revenue) Series 2020 4.00%, 02/15/2044		1,000		931,455
Buckeye Tobacco Settlement Financing Authority Series 2020-B 5.00%, 06/01/2055		2,630		2,451,378
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2047		175		178,259

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Cleveland-Cuyahoga County Port Authority (Cleveland-Cuyahoga County Port Authority Flats East Bank TIF District) Series 2021 4.00%, 12/01/2055(b)	$	490	$	412,545
County of Cuyahoga OH (County of Cuyahoga OH Lease) Series 2014 5.00%, 12/01/2028		365		369,909
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2042		205		206,730
County of Marion OH (United Church Homes, Inc. Obligated Group) Series 2019 5.125%, 12/01/2049		100		84,593
County of Montgomery OH (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(b)(c)(d)		100		35,000
County of Washington OH (Marietta Area Health Care, Inc. Obligated Group) Series 2022 6.625%, 12/01/2042		1,000		1,015,738
6.75%, 12/01/2052		250		250,733
Jefferson County Port Authority/OH (JSW Steel USA Ohio, Inc.) Series 2021 3.50%, 12/01/2051(b)		1,000		700,126
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) Series 2019 3.25%, 09/01/2029		580		541,177
Ohio Air Quality Development Authority (Pratt Paper OH, Inc.) Series 2017 4.25%, 01/15/2038(b)		185		174,906
Ohio Higher Educational Facility Commission Series 2023 5.00%, 10/01/2032(f)		2,000		2,346,138
Port of Greater Cincinnati Development Authority Series 2021 4.375%, 06/15/2056		100		95,871
				9,794,558

40    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Oklahoma – 0.7%
Norman Regional Hospital Authority (Norman Regional Hospital Authority Obligated Group) Series 2019 3.25%, 09/01/2039	$	505	$	385,018
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2018-B 5.25%, 08/15/2048		1,000		925,297
5.50%, 08/15/2052		1,000		939,567
Series 2022-A 5.50%, 08/15/2044		1,000		964,801
				3,214,683
Oregon – 0.2%
Clackamas County Hospital Facility Authority (Rose Villa, Inc. Obligated Group) Series 2020-A 5.375%, 11/15/2055		1,000		883,896
Other – 0.1%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates (FHLMC Multifamily VRD Certificates) 2.65%, 06/15/2036(b)		375		314,815
Pennsylvania – 3.3%
Allentown Neighborhood Improvement Zone Development Authority Series 2022 5.25%, 05/01/2042(b)		495		486,823
Berks County Municipal Authority (The) (Tower Health Obligated Group) Series 2020-B 5.00%, 02/01/2040		1,000		649,180
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 4.00%, 07/01/2051		1,000		740,178
5.00%, 07/01/2054		250		214,590
Chester County Industrial Development Authority (Collegium Charter School) Series 2022 5.625%, 10/15/2042(b)		250		243,508

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Lancaster County Hospital Authority/PA (St. Anne’s Retirement Community Obligated Group) Series 2020 5.00%, 03/01/2040	$	1,000	$	852,336
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2022 5.00%, 05/01/2052		2,000		2,055,879
Moon Industrial Development Authority (Baptist Homes Society Obligated Group) Series 2015 6.125%, 07/01/2050		1,000		818,697
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 07/01/2035		100		88,073
Pennsylvania Economic Development Financing Authority (Commonwealth of Pennsylvania Department of Transportation) Series 2022 5.25%, 06/30/2053		1,000		1,034,403
AGM Series 2022 5.00%, 12/31/2057		1,000		1,043,999
5.75%, 12/31/2062		1,000		1,104,906
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019 3.25%, 08/01/2039(b)		510		364,827
Pennsylvania Economic Development Financing Authority (Iron Cumberland LLC) Series 2022 7.00%, 12/01/2029		1,000		972,299
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/2038		100		101,207
Pennsylvania Economic Development Financing Authority (UPMC Obligated Group) Series 2022-C 4.56% (MUNIPSA + 0.70%), 11/15/2047(a)		1,000		981,580

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania Turnpike Commission Series 2017-B 5.00%, 06/01/2036	$	200	$	211,022
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2054		100		99,048
Philadelphia Authority for Industrial Development (Philadelphia Performing Arts Charter School) Series 2020 5.00%, 06/15/2040(b)		1,000		1,003,078
School District of Philadelphia (The) Series 2019-A 5.00%, 09/01/2044(h)		1,350		1,436,497
				14,502,130
Puerto Rico – 4.1%
Children’s Trust Fund Series 2008-A Zero Coupon, 05/15/2057		2,600		177,742
Series 2008-B Zero Coupon, 05/15/2057		5,000		280,504
Commonwealth of Puerto Rico Series 2021-A Zero Coupon, 07/01/2024		41		39,048
Zero Coupon, 07/01/2033		779		454,342
4.00%, 07/01/2033		2,623		2,400,362
4.00%, 07/01/2035		111		99,107
4.00%, 07/01/2037		95		83,060
4.00%, 07/01/2041		129		108,504
4.00%, 07/01/2046		134		108,981
5.25%, 07/01/2023		69		68,928
5.375%, 07/01/2025		242		246,850
5.625%, 07/01/2027		286		298,122
5.625%, 07/01/2029		168		177,601
5.75%, 07/01/2031		270		289,018
Series 2022-A Zero Coupon, 11/01/2051		2,695		1,270,019
Series 2022-C Zero Coupon, 11/01/2043		5,470		2,570,687
GDB Debt Recovery Authority of Puerto Rico Series 2018 7.50%, 08/20/2040		115		95,842
HTA TRRB Custodial Trust Series 2022 5.25%, 07/01/2036		110		110,553
5.25%, 07/01/2041		125		125,779

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series 2008-A 6.125%, 07/01/2024	$	60	$	60,690
Series 2020-A 5.00%, 07/01/2035(b)		500		498,613
Puerto Rico Electric Power Authority AGM Series 2007-V 5.25%, 07/01/2027		1,000		1,011,064
5.25%, 07/01/2031		375		379,438
Series 2007-T 5.00%, 07/01/2032		85		59,713
5.00%, 07/01/2037		245		172,112
Series 2008-W 5.00%, 07/01/2028		245		172,112
Series 2008-WW 5.375%, 07/01/2024		125		87,656
Series 2010-A 5.25%, 07/01/2029		100		70,250
5.25%, 07/01/2030		15		10,538
Series 2010-C 5.00%, 07/01/2024		25		17,531
5.25%, 07/01/2028		175		122,937
Series 2010-DDD 5.00%, 07/01/2021		15		10,425
Series 2010-X 5.25%, 07/01/2040		340		238,850
5.75%, 07/01/2036		125		89,063
Series 2010-ZZ 5.25%, 07/01/2024		40		28,100
Series 2012-A 5.00%, 07/01/2029		50		35,125
5.00%, 07/01/2042		10		7,025
Puerto Rico Highway & Transportation Authority Series 2022-A 5.00%, 07/01/2062		1,600		1,541,285
Puerto Rico Housing Finance Authority (El Mirador LLC) Series 2023 5.00%, 03/01/2027		2,000		2,093,390
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) Series 2000 6.625%, 06/01/2026		350		355,083

44    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024	$	6	$	5,699
Zero Coupon, 07/01/2027		17		14,075
Zero Coupon, 07/01/2029		17		12,805
Zero Coupon, 07/01/2046		2,111		574,190
Series 2019-A 4.329%, 07/01/2040		440		409,116
5.00%, 07/01/2058		867		835,010
				17,916,944
South Carolina – 0.6%
Columbia Housing Authority/SC Series 2022 4.80%, 11/01/2024		150		146,247
5.26%, 11/01/2032		100		96,807
5.41%, 11/01/2039		310		296,005
6.28%, 11/01/2039		100		95,748
South Carolina Jobs-Economic Development Authority (FAH Pelham LLC) Series 2023-A 6.50%, 02/01/2056(b)		565		554,046
Series 2023-B 7.50%, 08/01/2047(b)		210		203,814
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.25%, 06/01/2040(b)		100		78,554
6.50%, 06/01/2051(b)		300		224,633
South Carolina Jobs-Economic Development Authority (PSG Patriot’s Place Apartments LLC) Series 2022 0.00%, 06/01/2052(e)		415		287,532
South Carolina Public Service Authority Series 2016-A 5.00%, 12/01/2036		265		272,294
Series 2022 4.00%, 12/01/2046		329		302,638
4.00%, 12/01/2049		220		199,119
				2,757,437

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tennessee – 1.0%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(b)	$	370	$	347,733
5.125%, 12/01/2042(b)		1,000		908,518
Series 2016-B Zero Coupon, 12/01/2031(b)		150		92,685
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2037		30		29,551
4.00%, 08/01/2038		100		97,833
Knox County Industrial Development Board (Tompaul Knoxville LLC) Series 2022 9.25%, 11/01/2042(b)		200		200,413
9.50%, 11/01/2052(b)		400		400,799
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trevecca Nazarene University) Series 2021 4.00%, 10/01/2051		250		197,816
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(b)(c)(d)		135		47,250
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2016 5.00%, 07/01/2035		215		223,710
Metropolitan Government Nashville & Davidson County Industrial Development Board (South Nashville Central Business Improvement District) Series 2021 Zero Coupon, 06/01/2043(b)		1,000		332,458
4.00%, 06/01/2051(b)		100		80,007
Tennergy Corp/TN (Goldman Sachs Group, Inc. (The)) Series 2022-A 5.50%, 10/01/2053		1,000		1,059,238

46    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wilson County Health & Educational Facilities Board Series 2021 4.00%, 12/01/2039	$	200	$	152,229
4.25%, 12/01/2024		200		189,536
				4,359,776
Texas – 4.2%
Abilene Convention Center Hotel Development Corp. (City of Abilene TX Abilene Convention Center Revenue) Series 2021-A 4.00%, 10/01/2050		250		189,580
Series 2021-B 5.00%, 10/01/2050(b)		500		415,385
Arlington Higher Education Finance Corp. (BASIS Texas Charter Schools, Inc.) Series 2021 4.50%, 06/15/2056(b)		500		496,106
Arlington Higher Education Finance Corp. (Magellan School (The)) Series 2022 6.25%, 06/01/2052(b)		200		202,417
6.375%, 06/01/2062(b)		250		253,506
Austin Convention Enterprises, Inc. Series 2017-A 5.00%, 01/01/2034		500		514,605
Baytown Municipal Development District (Baytown Municipal Development District Hotel Occupancy Tax) Series 2021 5.00%, 10/01/2050(b)		400		336,410
Board of Regents of the University of Texas System Series 2016-E 5.00%, 08/15/2023		1,000		1,005,255
Brazoria County Industrial Development Corp. (Aleon Renewable Metals LLC) Series 2022 10.00%, 06/01/2042(b)		500		497,743
Central Texas Regional Mobility Authority Series 2021-B 5.00%, 01/01/2046		1,000		1,058,829

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Dallas Housing Finance Corp. (DHFC The Briscoe Apartments LLC) Series 2022 Zero Coupon, 12/01/2062(b)	$	4,760	$	334,436
6.00%, 12/01/2062		555		570,420
City of Dallas Housing Finance Corp. (DHFC The Dylan Apartments LLC) Series 2022 6.00%, 12/01/2062(b)		270		263,606
6.25%, 12/01/2054(b)		100		91,798
City of Houston TX (City of Houston TX Hotel Occupancy Tax) Series 2015 5.00%, 09/01/2031		160		162,334
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2046		1,000		1,071,020
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2046		1,000		946,552
Dallas Area Rapid Transit Series 2014-A 5.00%, 12/01/2025 (Pre-refunded/ETM)		580		597,441
Dallas County Flood Control District No. 1 Series 2015 5.00%, 04/01/2028(b)		100		100,025
Decatur Hospital Authority Series 2021 4.00%, 09/01/2044		1,000		797,098
Hidalgo County Regional Mobility Authority Series 2022-A Zero Coupon, 12/01/2050		1,000		220,702
4.00%, 12/01/2037		1,600		1,479,749
Series 2022-B Zero Coupon, 12/01/2042		1,400		452,083
Love Field Airport Modernization Corp. (Dallas Love Field) Series 2015 5.00%, 11/01/2032		500		513,727
Mission Economic Development Corp. (Natgasoline LLC) Series 2018 4.625%, 10/01/2031(b)		450		438,808

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Hope Cultural Education Facilities Finance Corp. Series 2023 8.50%, 09/01/2027(b)	$	1,000	$	996,957
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group) Series 2020 5.00%, 01/01/2055		100		79,624
Series 2022 4.00%, 01/01/2047		100		69,256
5.00%, 01/01/2057		200		154,539
New Hope Cultural Education Facilities Finance Corp. (Outlook at Windhaven Forefront Living Obligated Group) Series 2022 6.875%, 10/01/2057		1,000		901,823
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 4.00%, 01/01/2050(b)		100		71,171
Series 2021 2.625%, 01/01/2031(b)		300		238,029
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025(c)(d)		675		270,000
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way) Series 2020-A 5.75%, 12/01/2054(c)(d)		456		296,492
Texas Municipal Gas Acquisition & Supply Corp. III (Macquarie Group Ltd.) Series 2021 5.00%, 12/15/2029		1,000		1,047,275
Texas Transportation Commission State Highway 249 System Series 2019 5.00%, 08/01/2057		1,000		998,224
				18,133,025

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Utah – 0.5%
City of Salt Lake City UT Airport Revenue Series 2018-A 5.00%, 07/01/2048(h)	$	1,000	$	1,026,131
Military Installation Development Authority Series 2021-A 4.00%, 06/01/2052		500		359,962
Utah Infrastructure Agency Series 2022 5.00%, 10/15/2046		1,000		944,975
				2,331,068
Vermont – 0.1%
Vermont Economic Development Authority (Casella Waste Systems, Inc.) Series 2022 5.00%, 06/01/2052(b)		500		501,176
Virginia – 3.1%
Align Affordable Housing Bond Fund LP (Park Landing LP) Series 2022-2 5.66%, 08/01/2052		375		358,798
Atlantic Park Community Development Authority (Atlantic Park Community Development Authority District ) Series 2023 6.25%, 08/01/2045(b)		615		584,510
Halifax County Industrial Development Authority (Virginia Electric and Power Co.) Series 2022 1.65%, 12/01/2041		2,000		1,939,372
Henrico County Economic Development Authority (Westminster-Canterbury Corp. Obligated Group) Series 2022 5.00%, 10/01/2047		1,000		1,027,618
Tobacco Settlement Financing Corp./VA Series 2007-B1 5.00%, 06/01/2047		165		154,681
Virginia College Building Authority (Marymount University) Series 2015-A 5.00%, 07/01/2045(b)		1,000		947,355
Virginia Small Business Financing Authority (95 Express Lanes LLC) Series 2022 4.00%, 01/01/2048		1,000		863,305

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Virginia Small Business Financing Authority (Elizabeth River Crossings OpCo LLC) Series 2022 4.00%, 01/01/2034	$	2,000	$	2,005,583
Virginia Small Business Financing Authority (P3 VB Holdings LLC) Series 2023 8.50%, 12/01/2052(b)		430		409,096
Virginia Small Business Financing Authority (Pure Salmon Virginia, LLC) Series 2022 3.50%, 11/01/2052		4,000		3,988,389
Virginia Small Business Financing Authority (Total Fiber Recovery @ Chesapeake LLC) Series 2022 7.677% (SOFR + 5.50%), 06/01/2029(a)(b)		530		510,688
8.50%, 06/01/2042(b)		615		573,936
				13,363,331
Washington – 1.7%
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 01/01/2044		280		286,062
Port of Seattle WA Series 2015-C 5.00%, 04/01/2033		510		517,238
Series 2021 4.00%, 08/01/2040		1,000		961,669
Spokane County School District No. 81 Spokane Series 2012 3.00%, 12/01/2031		1,000		987,117
Washington Economic Development Finance Authority (Mura Cascade ELP LLC) Series 2022 3.90%, 12/01/2042(b)		2,500		2,492,663
Washington State Convention Center Public Facilities District (Washington State Convention Center Public Facilities District Hotel Occupancy Tax) Series 2021 4.00%, 07/01/2031		235		226,917
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest Obligated Group) Series 2013 5.25%, 01/01/2043(b)		1,000		855,351

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019-A 5.00%, 01/01/2055(b)	$	1,000	$	711,765
Washington State Housing Finance Commission (Rockwood Retirement Communities) Series 2014-A 7.375%, 01/01/2044 (Pre-refunded/ETM)(b)		200		205,088
				7,243,870
West Virginia – 0.2%
City of South Charleston WV (City of South Charleston WV South Charleston Park Place Excise Tax District) Series 2022 4.25%, 06/01/2042(b)		250		198,220
Monongalia County Commission Excise Tax District Series 2022-A 6.25%, 06/01/2024		250		250,627
Tobacco Settlement Finance Authority/WV (Tobacco Settlement Finance Authority/WV) Series 2020 3.00%, 06/01/2035		385		384,720
				833,567
Wisconsin – 3.9%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(b)		200		151,011
UMA Education, Inc. Series 2019 5.00%, 10/01/2025(b)		100		100,198
5.00%, 10/01/2027(b)		130		130,147
5.00%, 10/01/2029(b)		100		99,833
Wisconsin Center District (Wisconsin Center District Ded Tax) Series 2022 5.25%, 12/15/2061(b)		200		201,481
Wisconsin Department of Transportation (Wisconsin Department of Transportation Vehicle Fee Revenue) Series 2024-1 5.00%, 07/01/2029(f)		2,000		2,191,190
Wisconsin Health & Educational Facilities Authority (Advocate Aurora Health Obligated Group) Series 2023 5.00%, 08/15/2054		1,000		1,057,878

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Health & Educational Facilities Authority (Oakwood Lutheran Senior Ministries Obligated Group) Series 2021 4.00%, 01/01/2047	$	100	$	72,189
4.00%, 01/01/2057		1,000		673,954
Wisconsin Health & Educational Facilities Authority (St. Camillus Health System Obligated Group) Series 2019 5.00%, 11/01/2054		100		75,920
Wisconsin Health & Educational Facilities Authority (St. John’s Communities, Inc. Obligated Group) Series 2022 4.00%, 09/15/2036		775		662,625
4.00%, 09/15/2041		765		621,831
4.00%, 09/15/2045		650		503,027
Wisconsin Housing & Economic Development Authority (Roers Sun Prairie Apartments Owner LLC) Series 2022 4.625%, 03/15/2040(b)		100		86,543
Series 2022-A 3.875%, 12/01/2039(b)		460		395,345
Wisconsin Public Finance Authority Series 2020 5.00%, 04/01/2050(b)		475		439,315
5.00%, 04/01/2050 (Pre-refunded/ETM)(b)		25		28,836
Series 2022 6.00%, 02/01/2062(b)		1,000		1,010,020
Wisconsin Public Finance Authority (21st Century Public Academy) Series 2020 3.75%, 06/01/2030(b)		350		312,943
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(b)		1,000		911,123
Wisconsin Public Finance Authority (Celanese US Holdings LLC) Series 2016-C 4.30%, 11/01/2030		100		97,930

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (FAH Tree House LLC) Series 2023 6.50%, 08/01/2053(b)	$	500	$	498,621
6.625%, 02/01/2046(b)		375		348,230
Wisconsin Public Finance Authority (Gannon University) Series 2017 5.00%, 05/01/2042		1,315		1,292,573
Wisconsin Public Finance Authority (KDC Agribusiness LLC) Series 2022 15.00%, 05/15/2023†(i)(j)		600		270,000
Wisconsin Public Finance Authority (Lehigh Valley Health Network, Inc.) Series 2023 7.25%, 12/01/2042(b)		265		261,627
7.50%, 12/01/2052(b)		160		159,607
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.) Series 2017-A 5.25%, 05/15/2042(b)		130		119,158
Wisconsin Public Finance Authority (McLemore Resort Manager LLC) Series 2021 4.50%, 06/01/2056(b)		295		220,541
Wisconsin Public Finance Authority (Queens University of Charlotte) Series 2022 5.25%, 03/01/2042		1,000		1,016,051
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021 4.00%, 06/01/2056(b)		500		331,337
Series 2022 4.00%, 06/01/2049(b)		100		69,845
Wisconsin Public Finance Authority (Southeastern Regional Medical Center Obligated Group) Series 2022 4.00%, 02/01/2034		1,300		1,272,627
Wisconsin Public Finance Authority (Uwharrie Charter Academy) Series 2022 5.00%, 06/15/2062(b)		500		424,227

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (Washoe Barton Medical Clinic) Series 2021 4.00%, 12/01/2051	$	1,000	$	777,626
				16,885,409
Total Long-Term Municipal Bonds (cost $391,139,582)				373,678,715
Short-Term Municipal Notes – 14.2%
Arizona – 0.1%
Arizona Industrial Development Authority (Phoenix Children’s Hospital) Series 2019 3.80%, 02/01/2048(k)		635		635,000
Colorado – 1.9%
Colorado Educational & Cultural Facilities Authority (Daughters of Israel, Inc.) Series 2006 3.80%, 12/01/2035(k)		2,030		2,030,000
Colorado Educational & Cultural Facilities Authority (Jewish Federation of South Palm Beach County, Inc.) Series 2008 3.80%, 02/01/2038(k)		2,000		2,000,000
Colorado Educational & Cultural Facilities Authority (Mandel Jewish Community Center of Cleveland (The)) Series 2008 3.80%, 09/01/2038(k)		500		500,000
3.80%, 09/01/2038(k)		1,445		1,445,000
Colorado Educational & Cultural Facilities Authority (Michael Ann Russell Jewish Community Center, Inc.) Series 2012 3.80%, 01/01/2039(k)		2,000		2,000,000

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Health Facilities Authority (Children’s Hospital Colorado Obligated Group) Series 2020 3.80%, 12/01/2052(k)	$	340	$	340,000
				8,315,000
District of Columbia – 0.7%
District of Columbia (MedStar Health Obligated Group) Series 2012-A 3.99%, 08/15/2038(k)		1,020		1,020,000
Series 2017-A 3.80%, 08/15/2038(k)		2,050		2,050,000
				3,070,000
Florida – 1.9%
County of Palm Beach FL (Raymond F Kravis Center for the Performing Arts, Inc. (The)) Series 2002 3.93%, 07/01/2032(k)		2,650		2,650,000
Halifax Hospital Medical Center (Halifax Hospital Medical Center Obligated Group) Series 2010 3.77%, 06/01/2048(k)		2,080		2,080,000
Orange County Health Facilities Authority (Nemours Foundation/Florida) Series 2013-B 3.60%, 01/01/2039(k)		3,560		3,560,000
				8,290,000
Idaho – 0.4%
Idaho Health Facilities Authority (St Luke’s Health System Ltd. Obligated Group/ID) Series 2018-C 3.72%, 03/01/2048(k)		1,675		1,675,000
Illinois – 0.8%
Illinois Educational Facilities Authority (Lincoln Park Society (The)) Series 1999 3.85%, 01/01/2029(k)		300		300,000
Illinois Finance Authority (Illinois College) Series 2005 3.82%, 10/01/2030(k)		1,325		1,325,000

56    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (Latin School of Chicago (The)) Series 2005-B 3.80%, 08/01/2035(k)	$	385	$	385,000
Illinois Finance Authority (University of Chicago Medical Center Obligated Group) Series 2010 3.75%, 08/01/2044(k)		1,000		1,000,000
Illinois Housing Development Authority (Steadfast Foxview LP) Series 2008 3.97%, 01/01/2041(k)		295		295,000
Village of Brookfield IL (Chicago Zoological Society (The)) Series 2008 3.85%, 06/01/2038(k)		275		275,000
				3,580,000
Indiana – 0.5%
County of Elkhart IN (Pedcor Investments-2007-CIII LP) Series 2008 3.98%, 09/01/2043(k)		430		430,000
Indiana Finance Authority (Parkview Health System Obligated Group) Series 2009D 3.75%, 11/01/2039(k)		1,900		1,900,000
				2,330,000
Iowa – 0.3%
Iowa Finance Authority (Iowa Health System Obligated Group) Series 2018 3.65%, 02/15/2041(k)		1,405		1,405,000
Kentucky – 0.1%
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016-A 4.00%, 10/01/2039(k)		235		235,000
Louisiana – 0.9%
Louisiana Public Facilities Authority (CHRISTUS Health Obligated Group) Series 2009 3.72%, 07/01/2047(k)		2,000		2,000,000

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
3.80%, 07/01/2047(k)	$	2,055	$	2,055,000
				4,055,000
Maryland – 0.5%
Maryland Health & Higher Educational Facilities Authority Series 2014-A 3.70%, 04/01/2035(k)		2,300		2,300,000
Massachusetts – 0.8%
Massachusetts Development Finance Agency (Trustees of Boston University) Series 2013-U 3.60%, 10/01/2042(k)		1,250		1,250,000
Massachusetts Health & Educational Facilities Authority (Baystate Medical Obligated Group) Series 2019-J 3.60%, 07/01/2044(k)		2,000		2,000,000
				3,250,000
Minnesota – 0.8%
City of Minneapolis MN (Fairview Health Services Obligated Group) Series 2018 3.75%, 11/15/2048(k)		2,000		2,000,000
City of Minneapolis MN (One Ten Grant LP) Series 1989 3.90%, 09/01/2026(k)		470		470,000
Midwest Consortium of Municipal Utilities Series 2005-B 3.82%, 10/01/2035(k)		1,000		1,000,000
				3,470,000
New Jersey – 0.7%
Essex County Improvement Authority (Jewish Community Center of MetroWest, Inc.) Series 2005 3.90%, 07/01/2025(k)		2,165		2,165,000
New Jersey Health Care Facilities Financing Authority (AHS Hospital Corp.) Series 2008-C 3.82%, 07/01/2036(k)		1,000		1,000,000
				3,165,000

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S.��$ Value
New York – 0.5%
New York City Health and Hospitals Corp. Series 2008-B 3.88%, 02/15/2031(k)	$	750	$	750,000
New York City Housing Development Corp. (2 Gold LLC) Series 2008-A 3.89%, 04/15/2036(k)		900		900,000
New York City Housing Development Corp. (BCRE-90 West Street LLC) Series 2006-A 3.70%, 03/15/2036(k)		355		355,000
				2,005,000
Ohio – 0.3%
Columbus Regional Airport Authority Series 2005 3.85%, 07/01/2035(k)		1,465		1,465,000
Oregon – 0.2%
Oregon State Facilities Authority (PeaceHealth Obligated Group) Series 2018-A 3.72%, 08/01/2034(k)		900		900,000
Pennsylvania – 0.1%
Emmaus General Authority Series 2009-A 3.84%, 03/01/2030(k)		500		500,000
Rhode Island – 0.4%
Rhode Island Health and Educational Building Corp. (Roger Williams University) Series 2012-B 3.85%, 11/15/2038(k)		1,675		1,675,000
South Carolina – 0.1%
South Carolina Jobs-Economic Development Authority (PSG Patriot’s Place Apartments LLC) Series 2022 6.00%, 06/01/2023		235		234,481
Texas – 0.2%
Harris County Cultural Education Facilities Finance Corp. (JPMorgan Securities LLC) Series B-2 3.00%, 05/02/2023		1,000		999,854

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Virginia – 0.5%
Loudoun County Economic Development Authority (Jack Kent Cooke Foundation) Series 2004 3.87%, 06/01/2034(k)	$	2,050	$	2,050,000
Washington – 1.2%
Port of Tacoma WA Series 2019-B 3.90%, 12/01/2044(k)		2,350		2,350,000
Washington State Housing Finance Commission (Panorama/United States) Series 2008 3.90%, 04/01/2043(k)		2,575		2,575,000
Washington State Housing Finance Commission (West Valley Nursing Homes, Inc.) Series 2000 2.85%, 10/01/2031(k)		250		250,000
				5,175,000
Wisconsin – 0.3%
Wisconsin Health & Educational Facilities Authority (Medical College of Wisconsin, Inc.) Series 2008-B 3.72%, 12/01/2033(k)		1,000		1,000,000
Wisconsin Public Finance Authority (KDC Agribusiness LLC) Series 2023 15.00%, 05/15/2023†(i)(j)		175		78,750
				1,078,750
Total Short-Term Municipal Notes (cost $61,954,950)				61,858,085
Total Municipal Obligations (cost $453,094,532)				435,536,800
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.3%
Agency CMBS – 0.5%
Arizona Industrial Development Authority Series 2019-2, Class A 3.625%, 05/20/2033		192		179,739
California Housing Finance Agency Series 2021-2, Class A 3.75%, 03/25/2035		981		966,976
Series 2021-2, Class X 0.844%, 03/25/2035(l)		981		51,854

60    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-3, Class A 3.25%, 08/20/2036	$	245	$	223,243
Series 2021-3, Class X 0.789%, 08/20/2036(l)		978		52,839
Series 2019-2, Class A 4.00%, 03/20/2033		151		151,164
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates Series 2022-ML13, Class XUS 1.003%, 09/25/2036(l)		1,192		84,964
Washington State Housing Finance Commission Series 2021-1, Class A 3.50%, 12/20/2035		277		260,046
Series 2021-1, Class X 0.726%, 12/20/2035(l)		973		47,385
				2,018,210
Non-Agency Fixed Rate CMBS – 0.7%
National Finance Authority Series 2022-2, Class X 0.696%, 10/01/2036(l)		993		50,303
New Hampshire Business Finance Authority Series 2020-1, Class A 4.125%, 01/20/2034		205		200,533
Series 2022-1, Class A 4.375%, 09/20/2036		1,979		1,949,214
Series 2022-2, Class A 4.00%, 10/20/2036		993		944,434
				3,144,484
Non-Agency Floating Rate CMBS – 0.1%
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 5.948% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(b)		250		238,322
DBWF Mortgage Trust Series 2018-GLKS, Class A 6.081% (LIBOR 1 Month + 1.13%), 12/19/2030(a)(b)		275		269,991
				508,313
Total Commercial Mortgage-Backed Securities (cost $5,793,561)				5,671,007
CORPORATES - INVESTMENT GRADE – 1.0%
Financial Institutions – 0.7%
Banking – 0.4%
Bank of New York Mellon Corp. (The) Series H 3.70%, 03/20/2026(m)		100		88,781

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Citigroup, Inc. 7.375%, 05/15/2028(m)	$	1,000	$	988,120
Comerica, Inc. 5.625%, 07/01/2025(m)		100		84,997
Fifth Third Bancorp Series L 4.50%, 09/30/2025(m)		100		89,034
Huntington Bancshares, Inc./OH Series F 5.625%, 07/15/2030(m)		100		89,851
JPMorgan Chase & Co. Series Q 8.549% (LIBOR 3 Month + 3.25%), 08/01/2023(a)(m)		350		348,667
Truist Financial Corp. Series Q 5.10%, 03/01/2030(m)		100		88,427
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(m)		100		87,097
				1,864,974
Finance – 0.2%
Air Lease Corp. 3.625%, 04/01/2027		600		563,544
Insurance – 0.1%
Centene Corp. 4.25%, 12/15/2027		232		221,725
Prudential Financial, Inc. 5.625%, 06/15/2043		215		214,619
				436,344
				2,864,862
Industrial – 0.3%
Consumer Cyclical - Entertainment – 0.2%
YMCA of Greater New York 2.303%, 08/01/2026		1,000		905,920
Consumer Cyclical - Other – 0.1%
Las Vegas Sands Corp. 3.20%, 08/08/2024		600		580,512
				1,486,432
Total Corporates - Investment Grade (cost $4,646,978)				4,351,294

62    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CORPORATES - NON-INVESTMENT GRADE – 0.9%
Industrial – 0.8%
Communications - Media – 0.1%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(b)	$	309	$	236,567
DISH DBS Corp. 5.25%, 12/01/2026(b)		240		183,182
5.75%, 12/01/2028(b)		250		178,193
				597,942
Communications - Telecommunications – 0.0%
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(i)(j)		275		– 0	–
Consumer Cyclical - Entertainment – 0.5%
Carnival Corp. 4.00%, 08/01/2028(b)		400		346,820
Royal Caribbean Cruises Ltd. 8.25%, 01/15/2029(b)		725		761,504
Wild Rivers Water Park 8.50%, 11/01/2051(i)		1,225		941,569
				2,049,893
Consumer Non-Cyclical – 0.2%
Medline Borrower LP 3.875%, 04/01/2029(b)		350		306,176
Newell Brands, Inc. 4.70%, 04/01/2026(e)		173		165,205
4.875%, 06/01/2025		18		17,532
Tower Health Series 2020 4.451%, 02/01/2050		400		180,068
				668,981
Services – 0.0%
Trousdale Issuer LLC Series A 6.50%, 04/01/2025(c)(d)(i)		200		70,000
				3,386,816
Utility – 0.1%
Electric – 0.1%
Vistra Corp. 7.00%, 12/15/2026(b)(m)		225		202,151

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    63

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.0%
Banking – 0.0%
UMB Financial Corp. 10.00%, 01/01/2049(i)(j)	$	89	$	88,727
10.00%, 01/01/2049(i)(j)		63		63,422
				152,149
Total Corporates - Non-Investment Grade (cost $4,266,163)				3,741,116
ASSET-BACKED SECURITIES – 0.6%
Autos - Fixed Rate – 0.5%
CPS Auto Receivables Trust Series 2021-B, Class C 1.23%, 03/15/2027(b)		249		244,386
Lendbuzz Securitization Trust Series 2023-1A, Class A2 6.92%, 08/15/2028(b)		2,000		2,003,409
				2,247,795
Other ABS - Fixed Rate – 0.1%
Affirm Asset Securitization Trust Series 2021-Z1, Class A 1.07%, 08/15/2025(b)		86		83,157
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(b)		196		169,321
				252,478
Total Asset-Backed Securities (cost $2,530,644)				2,500,273
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.1%
Risk Share Floating Rate – 0.1%
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 9.42% (LIBOR 1 Month + 4.40%), 01/25/2024(a)		75		75,817
Series 2014-C03, Class 2M2 7.92% (LIBOR 1 Month + 2.90%), 07/25/2024(a)		26		26,492
Series 2015-C02, Class 1M2 9.02% (LIBOR 1 Month + 4.00%), 05/25/2025(a)		31		32,402
Series 2016-C01, Class 1M2 11.77% (LIBOR 1 Month + 6.75%), 08/25/2028(a)		78		84,212

64    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016-C02, Class 1M2 11.02% (LIBOR 1 Month + 6.00%), 09/25/2028(a)	$	89	$	94,087
Series 2017-C04, Class 2M2 7.87% (LIBOR 1 Month + 2.85%), 11/25/2029(a)		172		174,283
Total Collateralized Mortgage Obligations (cost $469,364)				487,293
COLLATERALIZED LOAN OBLIGATIONS – 0.1%
CLO - Floating Rate – 0.1%
THL Credit Wind River CLO Ltd. Series 2014-2A, Class AR 6.40% (LIBOR 3 Month + 1.14%), 01/15/2031(a)(b) (cost $228,557)		229		225,310
	Shares
COMMON STOCKS – 0.0%
Communication Services – 0.0%
Diversified Telecommunication Services – 0.0%
Intelsat Emergence SA(d)(l)		2,571		63,794
Intelsat Jackson Holdings SA(d)(i)(j)		538		– 0	–
Total Common Stocks (cost $219,617)				63,794
Total Investments – 104.2% (cost $471,249,416)				452,576,887
Other assets less liabilities – (4.2)%				(18,185,293	)
Net Assets – 100.0%			$	434,391,594

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    65

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)		Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		5.00	%		Quarterly		4.65	%	USD	5,000	$	97,931	$	40,415	$	57,516
CDX-NAIG Series 40, 5 Year Index, 06/20/2028*		1.00			Quarterly		0.76		USD	15,000		185,290		77,255		108,035
											$	283,221	$	117,670	$	165,551

* 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	1,180	01/15/2025	4.028%	CPI#		Maturity	$	35,993		$	– 0	–	$	35,993
USD	4,860	01/15/2026	3.765%	CPI#		Maturity		134,449			– 0	–		134,449
USD	3,030	01/15/2027	CPI#	3.323%		Maturity		(127,888	)		– 0	–		(127,888	)
USD	2,760	01/15/2027	CPI#	3.466%		Maturity		(91,892	)		(2,789	)		(89,103	)
USD	1,340	01/15/2027	CPI#	3.320%		Maturity		(56,807	)		– 0	–		(56,807	)
USD	1,110	01/15/2028	1.230%	CPI#		Maturity		198,851			– 0	–		198,851
USD	650	01/15/2028	0.735%	CPI#		Maturity		139,999			– 0	–		139,999
USD	4,600	01/15/2029	CPI#	3.390%		Maturity		(96,098	)		– 0	–		(96,098	)
USD	3,720	01/15/2029	CPI#	3.331%		Maturity		(96,089	)		– 0	–		(96,089	)
USD	1,680	01/15/2030	1.714%	CPI#		Maturity		265,450			– 0	–		265,450
USD	1,680	01/15/2030	1.731%	CPI#		Maturity		262,764			– 0	–		262,764
USD	1,600	01/15/2030	1.585%	CPI#		Maturity		272,101			– 0	–		272,101
USD	525	01/15/2030	1.572%	CPI#		Maturity		89,917			– 0	–		89,917
USD	525	01/15/2030	1.587%	CPI#		Maturity		89,185			– 0	–		89,185
USD	1,650	01/15/2031	2.782%	CPI#		Maturity		107,555			– 0	–		107,555
USD	1,380	01/15/2031	2.680%	CPI#		Maturity		103,998			– 0	–		103,998
USD	1,100	01/15/2031	2.601%	CPI#		Maturity		91,498			– 0	–		91,498
USD	920	01/15/2031	2.989%	CPI#		Maturity		40,758			– 0	–		40,758
USD	1,990	01/15/2032	CPI#	3.448%		Maturity		28,206			– 0	–		28,206
USD	1,420	01/15/2032	CPI#	3.064%		Maturity		(42,712	)		– 0	–		(42,712	)
							$	1,349,238		$	(2,789	)	$	1,352,027

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

66    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES 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	11,300		01/15/2027	1 Day SOFR	4.014%	Annual	$	182,833		$	– 0	–	$	182,833
USD	5,000		04/15/2028	1 Day SOFR	3.616%	Annual		60,380			– 0	–		60,380
USD	9,300		04/20/2028	1 Day SOFR	3.225%	Annual		(49,328	)		– 0	–		(49,328	)
USD	7,500		04/15/2032	2.528%	1 Day SOFR	Annual		388,328			– 0	–		388,328
USD	5,000		04/15/2032	2.881%	1 Day SOFR	Annual		121,484			746			120,738
USD	5,000		04/15/2032	3.065%	1 Day SOFR	Annual		50,253			– 0	–		50,253
USD	5,000		04/15/2032	3.067%	1 Day SOFR	Annual		49,476			– 0	–		49,476
USD	4,300		04/15/2032	2.850%	1 Day SOFR	Annual		114,887			– 0	–		114,887
USD	4,000		04/15/2032	2.473%	1 Day SOFR	Annual		224,048			– 0	–		224,048
USD	1,600		04/15/2032	3.069%	1 Day SOFR	Annual		15,521			– 0	–		15,521
							$	1,157,882		$	746		$	1,157,136

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	295	$	(60,829	)	$	(32,443	)	$	(28,386	)
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	572		(118,114	)		(69,204	)		(48,910	)
Credit Suisse International
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	572		(118,114	)		(70,409	)		(47,705	)
JPMorgan Securities, LLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	1,057		(170,305	)		16,192			(186,497	)
												$	(467,362	)	$	(155,864	)	$	(311,498	)

* Termination date

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    67

PORTFOLIO OF INVESTMENTS (continued)

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

Market Value

Upfront Premiums Paid (Received)

Unrealized Appreciation (Depreciation)

Citibank, NA

USD

2,000

01/10/2024

SIFMA*

2.980%

Maturity

$

41,175

$

– 0

–

$

41,175

Citibank, NA

USD

2,000

03/18/2024

SIFMA*

2.950%

Maturity

22,592

– 0

–

22,592

Citibank, NA

USD

2,000

04/11/2024

SIFMA*

2.680%

Maturity

(32,718

)

– 0

–

(32,718

)

Citibank, NA

USD

2,220

10/09/2029

1.125%

SIFMA*

Quarterly

208,798

– 0

–

208,798

Morgan Stanley Capital Services LLC

USD

2,000

05/15/2023

SIFMA*

3.400%

Maturity

199,117

– 0

–

199,117

Morgan Stanley Capital Services LLC

USD

3,000

03/15/2024

SIFMA*

3.000%

Maturity

49,979

– 0

–

49,979

Morgan Stanley Capital Services LLC

USD

2,000

03/25/2024

SIFMA*

2.750%

Maturity

(16,952

)

– 0

–

(16,952

)

$

471,991

$

– 0

–

$

471,991

(a) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023.

(b) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $78,899,957 or 18.2% of net assets.

(c) Defaulted.

(d) Non-income producing security.

(e) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April��30, 2023.

(f) When-Issued or delayed delivery security.

(g) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014-A 7.50%, 07/01/2023		07/31/2014	$	173,772	$	2		0.00	%

(h) Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note I).

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

(j) Fair valued by the Adviser.

(k) Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks.

(l) IO – Interest Only.

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

68    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

† Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.08% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Asset
Wisconsin Public Finance Authority (KDC Agribusiness LLC) Series 2022 15.00%, 05/15/2023		11/10/2022	$	600,000	$	270,000		0.06	%
Wisconsin Public Finance Authority (KDC Agribusiness LLC) Series 2022 15.00%, 05/15/2023		03/16/2023		175,000		78,750		0.02	%

As of April 30, 2023, 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

BAM – Build American Mutual

CCRC – Congregate Care Retirement Center

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

FHLMC – Federal Home Loan Mortgage Corporation

ID – Improvement District

LIBOR – London Interbank Offered Rate

MUNIPSA – SIFMA Municipal Swap Index

SOFR – Secured Overnight Financing Rate

UPMC – University of Pittsburgh Medical Center

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    69

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value (cost $471,249,416)	$	452,576,887
Cash		900,979
Cash collateral due from broker		2,734,920
Interest receivable		5,164,636
Receivable for capital stock sold		1,824,805
Unrealized appreciation on interest rate swaps		521,661
Receivable for investment securities sold		111,000
Affiliated dividends receivable		7,659
Total assets		463,842,547
Liabilities
Payable for investment securities purchased		16,966,237
Payable for floating rate notes issued(a)		9,600,000
Payable for capital stock redeemed		1,473,122
Cash collateral due to broker		560,000
Market value on credit default swaps (net premiums received $155,864)		467,362
Advisory fee payable		111,376
Payable for variation margin on centrally cleared swaps		65,238
Unrealized depreciation on interest rate swaps		49,670
Administrative fee payable		29,261
Distribution fee payable		13,507
Directors’ fees payable		1,695
Transfer Agent fee payable		822
Accrued expenses		112,663
Total liabilities		29,450,953
Net Assets	$	434,391,594
Composition of Net Assets
Capital stock, at par	$	41,532
Additional paid-in capital		458,329,656
Accumulated loss		(23,979,594	)
Net Assets	$	434,391,594

Net Asset Value Per Share—21 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	41,821,609		3,998,464	$	10.46	*
C	$	7,260,669		694,182	$	10.46
Advisor	$	385,309,316		36,838,895	$	10.46

* The maximum offering price per share for Class A shares was $10.79 which reflects a sales charge of 3.00%.

(a) Represents short-term floating rate certificates issued by tender option bond trusts (see Note I).

See notes to financial statements.

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STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	7,638,531
Dividends—Affiliated issuers		234,808
Other income		2,000		$	7,875,339
Expenses
Advisory fee (see Note B)		855,052
Distribution fee—Class A		49,604
Distribution fee—Class C		34,411
Transfer agency—Class A		7,531
Transfer agency—Class C		1,311
Transfer agency—Advisor Class		63,166
Administrative		46,566
Registration fees		57,564
Custody and accounting		53,472
Audit and tax		27,667
Legal		19,446
Printing		17,225
Directors’ fees		10,723
Miscellaneous		8,639
Total expenses before interest/bank overdraft expense		1,252,377
Interest/bank overdraft expense		191,850
Total expenses		1,444,227
Less: expenses waived and reimbursed by the Adviser (see Note B)		(223,863	)
Net expenses					1,220,364
Net investment income					6,654,975
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized loss on:
Investment transactions					(5,399,858	)
Swaps					(131,371	)
Net change in unrealized appreciation (depreciation) of:
Investments					23,635,456
Swaps					912,987
Net gain on investment transactions					19,017,214
Net Increase in Net Assets from Operations				$	25,672,189

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	6,654,975		$	6,134,313
Net realized loss on investment transactions		(5,531,229	)		(1,736,491	)
Net change in unrealized appreciation (depreciation) of investments		24,548,443			(45,638,438	)
Contributions from Affiliates (see Note B)		– 0	–		23,865
Net increase (decrease) in net assets from operations		25,672,189			(41,216,751	)
Distributions to Shareholders
Class A		(702,583	)		(573,228	)
Class C		(95,865	)		(79,387	)
Advisor Class		(6,314,255	)		(5,641,767	)
Capital Stock Transactions
Net increase		104,787,130			161,243,946
Total increase		123,346,616			113,732,813
Net Assets
Beginning of period		311,044,978			197,312,165
End of period	$	434,391,594		$	311,044,978

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 Opportunities 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% 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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5

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NOTES TO FINANCIAL STATEMENTS (continued)

of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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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NOTES TO FINANCIAL STATEMENTS (continued)

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., 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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 April 30, 2023:

	Level 1			Level 2		Level 3			Total
Assets:
Long-Term Municipal Bonds	$	– 0	–	$	373,408,715	$	270,000		$	373,678,715
Short-Term Municipal Notes		– 0	–		61,779,335		78,750			61,858,085
Commercial Mortgage-Backed Securities		– 0	–		5,671,007		– 0	–		5,671,007
Corporates—Investment Grade		– 0	–		4,351,294		– 0	–		4,351,294
Corporates—Non-Investment Grade		– 0	–		2,577,398		1,163,718	(a)		3,741,116
Asset-Backed Securities		– 0	–		2,500,273		– 0	–		2,500,273

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NOTES TO FINANCIAL STATEMENTS (continued)

Level 1

Level 2

Level 3

Total

Collateralized Mortgage Obligations

$

– 0

–

$

487,293

$

– 0

–

$

487,293

Collateralized Loan Obligations

– 0

–

225,310

– 0

–

225,310

Common Stocks

– 0

–

– 0

–

63,794

(a)

63,794

Liabilities:

Floating Rate Notes(b)

(9,600,000

)

– 0

–

– 0

–

(9,600,000

)

Total Investments in Securities

(9,600,000

)

451,000,625

1,576,262

(a)

442,976,887

Other Financial Instruments(c):

Assets:

Centrally Cleared Credit Default Swaps

– 0

–

283,221

– 0

–

283,221

(d)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

1,860,724

– 0

–

1,860,724

(d)

Centrally Cleared Interest Rate Swaps

– 0

–

1,207,210

– 0

–

1,207,210

(d)

Interest Rate Swaps

– 0

–

521,661

– 0

–

521,661

Liabilities:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(511,486

)

– 0

–

(511,486

)(d)

Centrally Cleared Interest Rate Swaps

– 0

–

(49,328

)

– 0

–

(49,328

)(d)

Credit Default Swaps

– 0

–

(467,362

)

– 0

–

(467,362

)

Interest Rate Swaps

– 0

–

(49,670

)

– 0

–

(49,670

)

Total

$

(9,600,000

)

$

453,795,595

$

1,576,262

(a)

$

445,771,857

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

(b) The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

(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, written options and written swaptions which are valued at market value.

(d) 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.

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,

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 six months ended April 30, 2023, such reimbursements/waivers amounted to $218,305. The Expense Caps may not be terminated before January 31, 2024.

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 six months ended April 30, 2023, the reimbursement for such services amounted to $46,566.

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 $16,855 for the six months ended April 30, 2023.

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 $7 from the sale of Class A shares and received $-0- and $9 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $5,558.

A summary of the Fund’s transactions in AB mutual funds for the six months ended April 30, 2023 is as follows:

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)			Dividend Income (000)
Government Money Market Portfolio	$	564	$	127,271	$	127,835	$	– 0	–	$	235

During the year ended October 31, 2022, the Adviser reimbursed the Fund $23,865 for trading losses incurred due to a trade entry error.

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 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 $39,595 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	144,964,501	$	65,428,638
U.S. government securities		84,119		– 0	–

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	6,874,202
Gross unrealized depreciation		(22,711,524	)
Net unrealized depreciation	$	(15,837,322	)

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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 the 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 six months ended April 30, 2023, 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 the 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 six months ended April 30, 2023, 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

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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 the 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.

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During the six months ended April 30, 2023, the Fund held credit default swaps for hedging and 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.

During the six months ended April 30, 2023, 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 for variation margin on centrally cleared swaps	$	165,551	*
Interest rate contracts	Receivable for variation margin on centrally cleared swaps		3,067,188	*	Payable for variation margin on centrally cleared swaps	$	558,025	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		521,661		Unrealized depreciation on interest rate swaps		49,670

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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
Credit contracts				Market value on credit default swaps	$	467,362
Total		$	3,754,400		$	1,075,057

* 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	$	(593,880	)	$	927,926
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		462,509			(14,939	)
Total		$	(131,371	)	$	912,987

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Interest Rate Swaps:
Average notional amount	$	15,077,143
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	57,228,571
Centrally Cleared Inflation Swaps:
Average notional amount	$	37,720,000
Credit Default Swaps:
Average notional amount of sale contracts	$	2,805,140
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	20,000,000

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.

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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 April 30, 2023. 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/Citigroup Global Markets, Inc.	$	272,565	$	(211,661	)	$– 0 –		–	$	– 0	–	$	60,904
Morgan Stanley Capital Services LLC		249,096		(16,952	)		(232,144	)		– 0	–		– 0	–
Total	$	521,661	$	(228,613	)	$	(232,144	)	$	– 0	–	$	60,904	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Citibank, NA/Citigroup Global Markets, Inc.	$	211,661	$	(211,661	)	$	– 0	–	$	– 0	–	$	– 0	–
Credit Suisse International		118,114		– 0	–		(118,114	)		– 0	–		– 0	–
JPMorgan Securities, LLC		170,305		– 0	–		(170,305	)		– 0	–		– 0	–
Morgan Stanley Capital Services LLC		16,952		(16,952	)		– 0	–		– 0	–		– 0	–
Total	$	517,032	$	(228,613	)	$	(288,419	)	$	– 0	–	$	0	^

* 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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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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		1,729,125			2,345,610		$	17,813,459		$	25,300,363
Shares issued in reinvestment of dividends		51,896			35,652			541,065			377,337
Shares converted from Class C		1,001			6,335			10,589			69,463
Shares redeemed		(725,048	)		(1,988,011	)		(7,540,336	)		(21,571,436	)
Net increase		1,056,974			399,586		$	10,824,777		$	4,175,727
Class C
Shares sold		277,945			238,746		$	2,881,451		$	2,533,652
Shares issued in reinvestment of dividends		7,645			6,212			79,649			65,534
Shares converted to Class A		(1,001	)		(6,338	)		(10,589	)		(69,463	)
Shares redeemed		(194,555	)		(321,819	)		(2,024,986	)		(3,432,310	)
Net increase (decrease)		90,034			(83,199	)	$	925,525		$	(902,587	)
Advisor Class
Shares sold		20,286,270			37,244,701		$	210,902,813		$	402,826,250
Shares issued in reinvestment of dividends		396,707			294,382			4,138,208			3,110,820
Shares redeemed		(11,807,213	)		(23,418,191	)		(122,004,193	)		(247,966,264	)
Net increase		8,875,764			14,120,892		$	93,036,828		$	157,970,806

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

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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 municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade 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, public health crises, uncertainties related to the tax status of municipal securities, and 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, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may worsen, adversely affecting the performance of the Fund. 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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In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets.

The Fund invests, from time to time, 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. Puerto Rico continues to face a very challenging economic and fiscal environment, worsened by the spread of COVID-19 and the adverse effect that related governmental and public responses have had on Puerto Rico’s economy. 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 deteriorate further

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 net asset value, or 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy initiatives and resulting market reactions to those initiatives.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration

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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 are or 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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

LIBOR Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR,

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announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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 NAV. 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 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, potentially adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected

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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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	832,185	$	467,928
Total taxable distributions		832,185		467,928
Tax-exempt distributions		5,462,197		2,016,919
Total distributions paid	$	6,294,382	$	2,484,847

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	52,120
Accumulated capital and other losses		(2,589,744	)(a)
Unrealized appreciation (depreciation)		(40,000,847	)(b)
Total accumulated earnings (deficit)	$	(42,538,471	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $2,589,744.

(b) The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the tax treatment of tender option bonds, 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, 2022, the Fund had a net short-term capital loss carryforward of $2,589,744, which may be carried forward for an indefinite period.

NOTE I

Floating Rate Notes Issued in Connection with Securities Held

The Fund may engage in tender option bond (“TOB”) transactions in which the Fund transfers a fixed rate bond (“Fixed Rate Bond”) into a Special Purpose Vehicle (the “SPV”, which is generally organized as a trust). The Fund buys a residual interest in the assets and cash flows of the SPV, often referred to as an inverse floating rate obligation (“Inverse Floater”). The SPV also issues floating rate notes (“Floating Rate Notes”) which are sold to third parties. The Floating Rate Notes pay interest at rates that generally reset weekly and their holders have the option to tender their notes to a liquidity provider for redemption at par. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the trustee transfer the Fixed Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. The SPV may also be collapsed in certain other circumstances. In accordance with U.S. GAAP requirements regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities, the Fund accounts for the transaction described above as a secured borrowing by including the Fixed Rate Bond in its portfolio of investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in its statement of assets and liabilities. Interest expense related to the Fund’s liability with respect to Floating Rate Notes is recorded as incurred. The interest expense is also included in the Fund’s expense ratio. At April 30, 2023, the amount of the Fund’s Floating Rate Notes outstanding was $9,600,000 and the related

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interest rate was 3.89% to 4.06%. For the six months ended April 30, 2023, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $9,600,000 and 2.96%, respectively.

The Fund may also purchase Inverse Floaters in the secondary market without first owning the underlying bond. Such an Inverse Floater is included in the Fund’s portfolio of investments but is not required to be treated as a secured borrowing and reflected in the Fund’s financial statements as a secured borrowing.

NOTE J

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

NOTE K

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.87			$  11.56			$  10.82			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.17			.21			.22			.29			.30			.24
Net realized and unrealized gain (loss) on investment transactions		.60			(1.69	)		.75			(.23	)		.65			(.30	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.77			(1.48	)		.97			.06			.95			(.06	)
Less: Dividends
Dividends from net investment income		(.18	)		(.21	)		(.23	)		(.33	)		(.32	)		(.25	)
Net asset value, end of period		$  10.46			$  9.87			$  11.56			$  10.82			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		7.95	%		(12.93	)%		9.02	%		.63	%		9.15	%		(.55	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$41,822			$29,037			$29,381			$16,463			$11,932			$5,666
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.85	%^		.76	%		.76	%		.77	%		.76	%		.75	%
Expenses, before waivers/reimbursements(e)		.97	%^		.91	%		1.08	%		1.26	%		1.30	%		1.27	%
Net investment income(b)		3.30	%^		1.91	%		1.88	%		2.68	%		2.78	%		2.26	%
Portfolio turnover rate		20	%		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 99.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.87			$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.13			.12			.11			.20			.22			.16
Net realized and unrealized gain (loss) on investment transactions		.60			(1.68	)		.77			(.21	)		.65			(.30	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.73			(1.56	)		.88			(.01	)		.87			(.14	)
Less: Dividends
Dividends from net investment income		(.14	)		(.13	)		(.15	)		(.25	)		(.24	)		(.17	)
Net asset value, end of period		$  10.46			$  9.87			$  11.56			$  10.83			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		7.55	%		(13.59	)%		8.22	%		(.03	)%+		8.33	%		(1.29	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$7,261			$5,964			$7,943			$1,794			$1,596			$769
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.60	%^		1.51	%		1.51	%		1.52	%		1.51	%		1.50	%
Expenses, before waivers/reimbursements(e)		1.72	%^		1.66	%		1.81	%		2.00	%		2.06	%		2.02	%
Net investment income(b)		2.54	%^		1.08	%		.96	%		1.91	%		2.05	%		1.52	%
Portfolio turnover rate		20	%		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 99.

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FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.87			$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.18			.24			.24			.31			.33			.27
Net realized and unrealized gain (loss) on investment transactions		.61			(1.69	)		.75			(.21	)		.64			(.30	)
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.79			(1.45	)		.99			.10			.97			(.03	)
Less: Dividends
Dividends from net investment income		(.20	)		(.24	)		(.26	)		(.36	)		(.34	)		(.28	)
Net asset value, end of period		$  10.46			$  9.87			$  11.56			$  10.83			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		8.08	%		(12.71	)%		9.20	%		.97	%		9.42	%		(.30	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$385,309			$276,044			$159,988			$57,110			$67,119			$57,432
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.60	%^		.51	%		.51	%		.52	%		.51	%		.50	%
Expenses, before waivers/reimbursements(e)		.72	%^		.66	%		.82	%		.99	%		1.05	%		1.02	%
Net investment income(b)		3.55	%^		2.23	%		2.05	%		2.87	%		3.04	%		2.52	%
Portfolio turnover rate		20	%		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 99.

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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) 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/bank overdraft expense:

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.75	%^		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		.87	%^		.90	%		1.07	%		1.23	%		1.29	%		1.27	%
Class C
Net of waivers/reimbursements		1.50	%^		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.62	%^		1.65	%		1.79	%		1.98	%		2.04	%		2.02	%
Advisor Class
Net of waivers/reimbursements		.50	%^		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.61	%^		.65	%		.80	%		.96	%		1.04	%		1.02	%

+ 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.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾,
Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Daryl Clements⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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 Tax-Aware Investment Team. Messrs. Clements, 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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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 Tax-Aware Fixed Income Opportunities Portfolio (formerly AB Tax-Aware Fixed Income Portfolio) (the “Fund”) at a meeting held in person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 had not requested 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained at the request of the directors. 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 2020. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund in 2021 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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s recent 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 the 1-, 3- and 5-year periods ended July 31, 2022 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 utilize investment strategies similar to those of 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

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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 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 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

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

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Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

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Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

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EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    107

NOTES

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AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TAFIO-0152-0423                

APR    ^04.30.23

SEMI-ANNUAL REPORT

AB TOTAL RETURN BOND PORTFOLIO

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 recent 12-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. 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’re pleased to provide this report for the 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.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    1

SEMI-ANNUAL REPORT

June 7, 2023

This report provides management’s discussion of fund performance for the AB Total Return Bond Portfolio for the semi-annual reporting period ended April 30, 2023.

The Fund’s investment objective is to maximize long-term total return without assuming what the Adviser considers undue risk.

NAV RETURNS AS OF APRIL 30, 2023 (unaudited)

	6 Months		12 Months
AB TOTAL RETURN BOND PORTFOLIO
Class A Shares		7.65%		-1.16%
Class C Shares		7.16%		-1.91%
Advisor Class Shares1		7.78%		-0.92%
Class R Shares1		7.41%		-1.42%
Class K Shares1		7.53%		-1.17%
Class I Shares1		7.78%		-0.92%
Class Z Shares1		7.77%		-0.92%
Bloomberg US Aggregate Bond Index		6.91%		-0.43%

1 Please note that these share classes are 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.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its benchmark, the Bloomberg US Aggregate Bond Index, for the six- and 12-month periods ended April 30, 2023.

During the six-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation was the primary contributor, relative to the benchmark, mostly due to gains from off-benchmark exposure to agency risk-sharing securities, collateralized loan obligations and emerging-market corporate bonds, as well as an underweight to US Treasuries that exceeded losses from the use of credit default swaps. Security selection contributed, as a gain among investment-grade corporate bonds and US agency mortgages outweighed a loss within high-yield corporate bonds. Country allocation also contributed, as a gain from off-benchmark exposure to Japan added more than a loss from off-benchmark exposure to the eurozone. Yield-curve positioning detracted, as losses from underweights on the two- to 20-year

2    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

parts of the curve were partially offset by gains from overweights on the six-month and 30-year parts of the curve. Currency decisions did not materially impact performance during the period.

In the 12-month period, all share classes of the Fund underperformed the benchmark, before sales charges. Country allocation to the UK was the largest detractor. Yield-curve positioning also detracted, mostly from underweights along the two- to 20-year parts of the curve and an overweight to the 30-year part of the curve that were partially offset by a gain from being overweight to the six-month part of the curve. Security selection was a minor detractor, as selection within high-yield corporate bonds detracted more than gains among US agency mortgages and commercial mortgage-backed securities (“CMBS”). Sector allocation contributed, since off-benchmark exposure to agency risk-sharing securities and an underweight to US agency mortgages contributed more than losses from an overweight to CMBS and the use of credit default swaps. Currency decisions were a small contributor, from exposure to the offshore Chinese renminbi.

During both periods, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were used in the corporate and CMBS sectors for hedging and investment purposes. Total return swaps were used in the corporate sector for hedging and investment purposes. Treasury futures and interest rate swaps were used to manage duration, country exposure and yield-curve positioning. During the 12-month period, Consumer Price Index swaps were held to gain exposure to rising inflation expectations, which added to absolute returns.

MARKET REVIEW AND INVESTMENT STRATEGY

During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK. Developed-market government bonds rose the most in the US, Australia and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.

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 in non-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 and assignments; 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 in derivatives, such as options, futures contracts, forwards or swaps.

4    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 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 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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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 than other types of securities.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (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. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

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 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 are 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 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.

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.

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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. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or 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. 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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

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.

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.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						3.69%
1 Year		-1.16%		-5.34%
5 Years		0.60%		-0.27%
10 Years		1.26%		0.82%
CLASS C SHARES						3.10%
1 Year		-1.91%		-2.86%
5 Years		-0.17%		-0.17%
10 Years2		0.51%		0.51%
ADVISOR CLASS SHARES3						4.11%
1 Year		-0.92%		-0.92%
5 Years		0.83%		0.83%
10 Years		1.52%		1.52%
CLASS R SHARES3						3.49%
1 Year		-1.42%		-1.42%
5 Years		0.32%		0.32%
10 Years		1.01%		1.01%
CLASS K SHARES3						3.80%
1 Year		-1.17%		-1.17%
5 Years		0.58%		0.58%
10 Years		1.26%		1.26%
CLASS I SHARES3						4.12%
1 Year		-0.92%		-0.92%
5 Years		0.83%		0.83%
10 Years		1.51%		1.51%
CLASS Z SHARES3						4.22%
1 Year		-0.92%		-0.92%
5 Years		0.85%		0.85%
Since Inception4		1.60%		1.60%

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.06%, 1.81%, 0.80%, 1.43%, 1.12%, 0.75% and 0.70% for 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 limited the Fund’s total annual operating expense ratios, exclusive of interest expense, to 0.77%, 1.52%, 0.52%, 1.02%, 0.77%, 0.52% and 0.52% 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, 2024, and may be extended by the Adviser for additional one-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.

(footnotes continued on next page)

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HISTORICAL PERFORMANCE (continued)

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended April 30, 2023.

2 Assumes conversion of Class C shares into Class A shares after eight 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 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.

4 Inception date: 4/25/2014.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

MARCH 31, 2023 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-9.42%
5 Years		-0.55%
10 Years		0.86%
CLASS C SHARES
1 Year		-7.02%
5 Years		-0.42%
10 Years1		0.55%
ADVISOR CLASS SHARES2
1 Year		-5.25%
5 Years		0.56%
10 Years		1.54%
CLASS R SHARES2
1 Year		-5.73%
5 Years		0.05%
10 Years		1.04%
CLASS K SHARES2
1 Year		-5.49%
5 Years		0.31%
10 Years		1.29%
CLASS I SHARES2
1 Year		-5.16%
5 Years		0.55%
10 Years		1.54%
CLASS Z SHARES2
1 Year		-5.16%
5 Years		0.58%
Since Inception3		1.52%

1 Assumes conversion of Class C shares into Class A shares after eight years.

2 Please note that these share classes are 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.

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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value November 1, 2022		Ending Account Value April 30, 2023		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,076.50	$	3.96		0.77	%
Hypothetical**	$	1,000	$	1,020.98	$	3.86		0.77	%
Class C
Actual	$	1,000	$	1,071.60	$	7.81		1.52	%
Hypothetical**	$	1,000	$	1,017.26	$	7.60		1.52	%
Advisor Class
Actual	$	1,000	$	1,077.80	$	2.68		0.52	%
Hypothetical**	$	1,000	$	1,022.22	$	2.61		0.52	%
Class R
Actual	$	1,000	$	1,074.10	$	5.25		1.02	%
Hypothetical**	$	1,000	$	1,019.74	$	5.11		1.02	%
Class K
Actual	$	1,000	$	1,075.30	$	3.96		0.77	%
Hypothetical**	$	1,000	$	1,020.98	$	3.86		0.77	%
Class I
Actual	$	1,000	$	1,077.80	$	2.68		0.52	%
Hypothetical**	$	1,000	$	1,022.22	$	2.61		0.52	%
Class Z
Actual	$	1,000	$	1,077.70	$	2.68		0.52	%
Hypothetical**	$	1,000	$	1,022.22	$	2.61		0.52	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    13

PORTFOLIO SUMMARY

April 30, 2023 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $192.4

TOP TEN SECTORS (including derivatives)¹

Corporates–Investment Grade	28.0	%
Mortgage Pass-Throughs	18.8
U.S. Government & Government Sponsored Agency Obligations	18.6
Governments–Treasuries2	16.6
Collateralized Mortgage Obligations	11.6
Asset-Backed Securities	7.6
Commercial Mortgage-Backed Securities3	5.4
Collateralized Loan Obligations	4.3
Local Governments–US Municipal Bonds	1.0
Emerging Markets–Corporate Bonds	1.0

SECTOR BREAKDOWN (excluding derivatives)⁴

Corporates–Investment Grade	26.5	%
Governments–Treasuries	18.6
Mortgage Pass-Throughs	17.7
Collateralized Mortgage Obligations	10.9
Asset-Backed Securities	7.2
Commercial Mortgage-Backed Securities	5.0
Collateralized Loan Obligations	4.1
Corporates–Non-Investment Grade	1.9
Local Governments–US Municipal Bonds	1.0
Emerging Markets–Corporate Bonds	0.9
Quasi-Sovereigns	0.5
Emerging Markets–Sovereigns	0.3
Common Stocks	0.2
Governments–Sovereign Bonds	0.1
Short-Term Investments	5.1
	100.0	%

1 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 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).

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PORTFOLIO OF INVESTMENTS

April 30, 2023 (unaudited)

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 27.9%
Industrial – 13.9%
Basic – 0.4%
Celanese US Holdings LLC 5.90%, 07/05/2024	U.S.$		455	$	455,505
Freeport Indonesia PT 4.763%, 04/14/2027(a)			390		384,467
					839,972
Capital Goods – 0.8%
CNH Industrial Capital LLC 3.95%, 05/23/2025			375		366,386
Flowserve Corp. 2.80%, 01/15/2032			425		343,829
Parker-Hannifin Corp. 3.25%, 06/14/2029			255		237,844
Regal Rexnord Corp. 6.05%, 02/15/2026(a)			401		406,678
Trane Technologies Financing Ltd. 5.25%, 03/03/2033			115		119,302
					1,474,039
Communications - Media – 0.8%
Charter Communications Operating LLC/Charter Communications Operating Capital 5.125%, 07/01/2049			198		154,608
Discovery Communications LLC 5.20%, 09/20/2047			178		145,196
5.30%, 05/15/2049			81		66,183
Fox Corp. 4.709%, 01/25/2029			240		235,656
5.576%, 01/25/2049			407		379,971
Interpublic Group of Cos., Inc. (The) 4.65%, 10/01/2028			178		174,784
Prosus NV 3.257%, 01/19/2027(a)			219		199,536
Tencent Holdings Ltd. 3.24%, 06/03/2050(a)			328		218,387
					1,574,321
Consumer Cyclical - Automotive – 0.7%
General Motors Financial Co., Inc. 4.30%, 04/06/2029			78		72,701
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(a)			501		453,109
6.50%, 03/10/2028(a)			20		20,246
Mercedes-Benz Finance North America LLC 4.80%, 03/30/2026(a)			272		274,046

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)	U.S.$		522	$	477,327
					1,297,429
Consumer Cyclical - Other – 0.5%
Las Vegas Sands Corp. 3.90%, 08/08/2029			327		297,282
Marriott International, Inc./MD 4.90%, 04/15/2029			384		381,516
MDC Holdings, Inc. 6.00%, 01/15/2043			346		305,649
					984,447
Consumer Cyclical - Retailers – 1.0%
Advance Auto Parts, Inc. 3.90%, 04/15/2030			811		741,149
Lowe’s Cos., Inc. 5.80%, 09/15/2062			336		338,056
Ross Stores, Inc. 4.70%, 04/15/2027			893		887,990
					1,967,195
Consumer Non-Cyclical – 2.0%
Altria Group, Inc. 3.40%, 05/06/2030			750		669,555
BAT Capital Corp. 2.259%, 03/25/2028			1,125		976,894
4.906%, 04/02/2030			196		189,015
Cargill, Inc. 5.125%, 10/11/2032(a)			248		256,963
CVS Health Corp. 4.30%, 03/25/2028			28		27,656
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			520		391,232
Philip Morris International, Inc. 4.875%, 02/13/2026			215		216,213
5.00%, 11/17/2025			303		305,778
5.375%, 02/15/2033			469		477,789
5.625%, 11/17/2029			56		58,483
Zoetis, Inc. 5.40%, 11/14/2025			347		353,822
					3,923,400
Energy – 2.1%
BP Capital Markets America, Inc. 2.939%, 06/04/2051			1,201		843,210

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Continental Resources, Inc./OK 2.875%, 04/01/2032(a)	U.S.$		454	$	356,703
5.75%, 01/15/2031(a)			335		326,481
Marathon Oil Corp. 6.80%, 03/15/2032			650		691,607
Oleoducto Central SA 4.00%, 07/14/2027(a)			429		377,332
ONEOK Partners LP 6.125%, 02/01/2041			48		47,658
Suncor Energy, Inc. 6.80%, 05/15/2038			534		588,436
Var Energi ASA 7.50%, 01/15/2028(a)			314		331,951
8.00%, 11/15/2032(a)			402		436,480
					3,999,858
Services – 0.7%
Alibaba Group Holding Ltd. 2.125%, 02/09/2031			596		492,427
Booking Holdings, Inc. 4.50%, 11/15/2031	EUR		320		367,679
Expedia Group, Inc. 6.25%, 05/01/2025(a)	U.S.$		33		33,392
Global Payments, Inc. 3.20%, 08/15/2029			290		256,711
S&P Global, Inc. 4.75%, 08/01/2028			32		32,630
Verisk Analytics, Inc. 5.75%, 04/01/2033			188		197,986
					1,380,825
Technology – 4.0%
Apple, Inc. 4.10%, 08/08/2062			350		311,640
Broadcom, Inc. 4.00%, 04/15/2029(a)			53		49,823
4.15%, 04/15/2032(a)			187		170,879
4.926%, 05/15/2037(a)			547		499,367
Entegris Escrow Corp. 4.75%, 04/15/2029(a)			395		367,445
Fiserv, Inc. 3.50%, 07/01/2029			869		809,613
Honeywell International, Inc. 4.125%, 11/02/2034	EUR		410		462,007
HP, Inc. 5.50%, 01/15/2033	U.S.$		592		587,311
Infor, Inc. 1.75%, 07/15/2025(a)			279		255,547

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Intel Corp. 5.05%, 08/05/2062	U.S.$		467	$	430,149
International Business Machines Corp. 4.50%, 02/06/2026			396		396,523
4.90%, 07/27/2052			457		427,176
Kyndryl Holdings, Inc. 2.05%, 10/15/2026			869		760,923
Lenovo Group Ltd. 5.831%, 01/27/2028(a)			489		492,606
Micron Technology, Inc. 6.75%, 11/01/2029			562		592,691
NXP BV/NXP Funding LLC 5.55%, 12/01/2028			277		282,764
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.40%, 05/01/2030			298		267,777
Oracle Corp. 5.375%, 07/15/2040			90		86,685
SK Hynix, Inc. 2.375%, 01/19/2031(a)			280		210,403
TSMC Arizona Corp. 3.875%, 04/22/2027			241		236,451
					7,697,780
Transportation - Airlines – 0.4%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(a)			287		281,769
4.75%, 10/20/2028(a)			401		389,187
					670,956
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 5.875%, 07/05/2034(a)			161		154,586
Transportation - Services – 0.4%
ENA Master Trust  4.00%, 05/19/2048(a)			457		338,466
ERAC USA Finance LLC 4.599%, 05/01/2028(a)			185		184,550
4.90%, 05/01/2033(a)			225		224,991
					748,007
					26,712,815
Financial Institutions – 13.2%
Banking – 9.9%
AIB Group PLC 7.583%, 10/14/2026(a)			845		872,446
American Express Co. 4.90%, 02/13/2026			221		222,547

18    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(a)	U.S.$		635	$	582,533
Banco Santander SA 4.175%, 03/24/2028			400		379,984
Bank of America Corp. 4.376%, 04/27/2028			503		488,398
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			215		214,594
Barclays PLC 7.385%, 11/02/2028			384		410,120
BNP Paribas SA 4.625%, 02/25/2031(a)(b)			463		330,443
Capital One Financial Corp. 5.468%, 02/01/2029			118		116,060
Citigroup, Inc. Series W 4.00%, 12/10/2025(b)			329		287,138
Cooperatieve Rabobank UA 5.564%, 02/28/2029(a)			487		493,760
Credit Suisse Group AG 3.091%, 05/14/2032(a)			319		257,037
4.194%, 04/01/2031(a)			396		350,991
6.373%, 07/15/2026(a)			369		359,934
Danske Bank A/S 4.298%, 04/01/2028(a)			360		341,600
6.466%, 01/09/2026(a)			258		258,880
Deutsche Bank AG/New York NY 3.961%, 11/26/2025			265		252,908
6.119%, 07/14/2026			294		290,737
Discover Bank 4.682%, 08/09/2028			250		231,788
Federation des Caisses Desjardins du Quebec 4.55%, 08/23/2027(a)			464		456,042
Goldman Sachs Group, Inc. (The) Series V 4.125%, 11/10/2026(b)			268		225,010
HSBC Holdings PLC 4.292%, 09/12/2026			240		232,867
4.583%, 06/19/2029			224		215,022
7.336%, 11/03/2026			323		338,953
8.113%, 11/03/2033			277		312,902
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			288		280,875
7.00%, 11/21/2025(a)			214		218,567
KBC Group NV 5.796%, 01/19/2029(a)			232		235,197

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lloyds Banking Group PLC 7.50%, 06/27/2024(b)	U.S.$		381	$	365,253
7.953%, 11/15/2033			504		562,398
Mitsubishi UFJ Financial Group, Inc. 5.475%, 02/22/2031			206		209,129
Mizuho Financial Group, Inc. 5.414%, 09/13/2028			444		448,498
5.739%, 05/27/2031			487		498,717
Morgan Stanley 0.406%, 10/29/2027	EUR		309		298,233
4.21%, 04/20/2028	U.S.$		358		347,081
6.296%, 10/18/2028			144		151,304
Series G 3.772%, 01/24/2029			515		487,715
Nationwide Building Society 2.972%, 02/16/2028(a)			398		363,673
NatWest Group PLC 4.269%, 03/22/2025			481		474,175
7.472%, 11/10/2026			260		271,606
PNC Financial Services Group, Inc. (The) 5.068%, 01/24/2034			112		110,277
Santander Holdings USA, Inc. 6.499%, 03/09/2029			260		261,274
Santander UK Group Holdings PLC 6.833%, 11/21/2026			607		617,780
Societe Generale SA 2.797%, 01/19/2028(a)			778		696,333
Standard Chartered PLC 3.971%, 03/30/2026(a)			268		258,601
6.00%, 07/26/2025(a)(b)			478		456,385
6.783% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(b)(c)			400		352,000
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(b)			400		377,136
Truist Financial Corp. 1.95%, 06/05/2030			63		50,753
5.122%, 01/26/2034			304		294,719
UBS Group AG 7.00%, 02/19/2025(a)(b)			312		295,832
UniCredit SpA 1.982%, 06/03/2027(a)			205		181,579
2.569%, 09/22/2026(a)			391		355,544
3.127%, 06/03/2032(a)			356		285,516
US Bancorp Series J 5.30%, 04/15/2027(b)			380		319,405

20    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Wells Fargo & Co. 3.584%, 05/22/2028	U.S.$		191	$	180,464
Series BB 3.90%, 03/15/2026(b)			273		237,775
					19,066,488
Brokerage – 0.6%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(b)			260		248,318
Series I 4.00%, 06/01/2026(b)			469		392,764
Nomura Holdings, Inc. 5.709%, 01/09/2026			324		325,494
Voya Financial, Inc. 5.65%, 05/15/2053			180		179,904
					1,146,480
Finance – 1.6%
Air Lease Corp. 2.875%, 01/15/2026			72		67,247
3.625%, 04/01/2027			34		31,934
Aircastle Ltd. 2.85%, 01/26/2028(a)			835		726,367
4.125%, 05/01/2024			152		148,758
5.25%, 08/11/2025(a)			384		376,554
Aviation Capital Group LLC 1.95%, 01/30/2026(a)			449		402,084
1.95%, 09/20/2026(a)			133		116,093
3.50%, 11/01/2027(a)			136		122,910
4.125%, 08/01/2025(a)			5		4,775
4.375%, 01/30/2024(a)			135		132,697
4.875%, 10/01/2025(a)			153		148,190
5.50%, 12/15/2024(a)			381		375,849
Synchrony Financial 2.875%, 10/28/2031			420		309,821
					2,963,279
Insurance – 0.7%
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(a)			294		258,523
MetLife Capital Trust IV 7.875%, 12/15/2037(a)			699		740,157
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049(a)			400		382,412
					1,381,092
REITs – 0.4%
GLP Capital LP/GLP Financing II, Inc. 3.25%, 01/15/2032			397		327,223

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Vornado Realty LP 3.40%, 06/01/2031	U.S.$		709	$	501,915
					829,138
					25,386,477
Utility – 0.8%
Electric – 0.8%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a)			274		236,328
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(a)			679		505,770
Duke Energy Carolinas NC Storm Funding LLC Series A-2 2.617%, 07/01/2041			306		236,590
Engie Energia Chile SA 3.40%, 01/28/2030(a)			349		285,918
NRG Energy, Inc. 7.00%, 03/15/2033(a)			362		376,046
					1,640,652
Total Corporates - Investment Grade (cost $58,394,478)					53,739,944
GOVERNMENTS - TREASURIES – 19.6%
United States – 19.6%
U.S. Treasury Bonds 1.25%, 05/15/2050			3,036		1,767,638
2.375%, 02/15/2042			734		591,444
3.125%, 08/15/2044(d)			1,549		1,386,713
3.25%, 05/15/2042			1,116		1,032,403
3.375%, 08/15/2042			992		933,227
3.875%, 02/15/2043			1,637		1,652,549
4.00%, 11/15/2042			2,061		2,119,417
U.S. Treasury Notes  3.50%, 01/31/2028			5,279		5,263,029
3.50%, 04/30/2028			2,117		2,117,131
3.50%, 02/15/2033			4,074		4,089,814
3.875%, 03/31/2025			903		899,165
3.875%, 11/30/2027			10,370		10,501,549
3.875%, 12/31/2027			2,615		2,647,181
4.00%, 02/29/2028			1,315		1,341,199
4.125%, 10/31/2027			1,364		1,393,411
Total Governments - Treasuries (cost $37,797,543)					37,735,870

22    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MORTGAGE PASS-THROUGHS – 18.7%
Agency Fixed Rate 30-Year – 17.8%
Federal Home Loan Mortgage Corp. Series 2019 3.50%, 10/01/2049	U.S.$		179	$	169,660
3.50%, 11/01/2049			233		219,603
Series 2022 2.00%, 03/01/2052			1,919		1,602,482
2.50%, 04/01/2052			2,252		1,960,130
3.00%, 03/01/2052			1,266		1,144,224
Federal Home Loan Mortgage Corp. Gold Series 2005 5.50%, 01/01/2035			73		76,228
Series 2007 5.50%, 07/01/2035			12		12,626
Series 2016 4.00%, 02/01/2046			514		502,936
Series 2017 4.00%, 07/01/2044			338		330,956
Series 2018 4.50%, 03/01/2048			138		137,491
4.50%, 10/01/2048			323		321,588
4.50%, 11/01/2048			422		420,589
5.00%, 11/01/2048			158		160,689
Federal National Mortgage Association Series 2003 5.50%, 04/01/2033			23		23,285
5.50%, 07/01/2033			50		51,293
Series 2004 5.50%, 04/01/2034			6		6,295
5.50%, 05/01/2034			15		15,256
5.50%, 11/01/2034			21		22,227
5.50%, 01/01/2035			203		211,493
Series 2005 5.50%, 02/01/2035			30		30,743
Series 2007 5.50%, 08/01/2037			150		155,495
Series 2010 4.00%, 12/01/2040			208		203,430
Series 2012 3.50%, 02/01/2042			140		133,267
3.50%, 11/01/2042			1,463		1,391,593
3.50%, 01/01/2043			246		234,235
Series 2013 3.50%, 04/01/2043			830		788,883
4.00%, 10/01/2043			511		499,201
Series 2016 3.50%, 01/01/2047			377		355,730

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2018 4.50%, 09/01/2048	U.S.$		730	$	726,518
Series 2019 3.50%, 08/01/2049			557		525,220
3.50%, 09/01/2049			261		246,346
3.50%, 11/01/2049			487		459,060
Series 2021 2.00%, 07/01/2051			1,978		1,645,301
2.50%, 01/01/2052			644		561,339
Series 2022 2.50%, 03/01/2052			1,396		1,212,425
2.50%, 04/01/2052			1,455		1,266,117
2.50%, 05/01/2052			1,874		1,630,870
3.00%, 02/01/2052			1,651		1,491,751
3.00%, 03/01/2052			2,090		1,888,835
Government National Mortgage Association Series 2016 3.00%, 04/20/2046			72		66,753
3.00%, 05/20/2046			174		161,387
Series 2023 4.00%, 05/18/2053, TBA			994		955,852
4.50%, 05/18/2053, TBA			2,589		2,538,054
5.00%, 05/18/2053, TBA			2,900		2,886,598
Uniform Mortgage-Backed Security Series 2023 2.00%, 05/11/2053, TBA			2,680		2,227,366
4.00%, 06/25/2052, TBA			649		620,194
5.50%, 05/11/2053, TBA			1,913		1,928,842
					34,220,456
Agency Fixed Rate 15-Year – 0.9%
Federal National Mortgage Association Series 2016 2.50%, 08/01/2031			97		91,689
2.50%, 11/01/2031			436		413,122
2.50%, 12/01/2031			569		539,162
2.50%, 01/01/2032			142		134,097
Series 2017 2.50%, 02/01/2032			610		578,137
					1,756,207
Agency ARMs – 0.0%
Federal Home Loan Mortgage Corp. Series 2006 4.25% (LIBOR 12 Month + 2.00%), 01/01/2037(c)			8		8,086
Total Mortgage Pass-Throughs (cost $37,982,279)					35,984,749

24    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 11.6%
Risk Share Floating Rate – 10.4%
Bellemeade Re Ltd. Series 2019-2A, Class M2 8.12% (LIBOR 1 Month + 3.10%), 04/25/2029(a)(c)	U.S.$		325	$	331,055
Series 2019-3A, Class M1C 6.97% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(c)			236		235,777
Series 2019-4A, Class M2 7.87% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(c)			540		540,933
Series 2021-1A, Class M1C 7.765% (SOFR + 2.95%), 03/25/2031(a)(c)			398		398,471
Series 2022-1, Class M1C 8.515% (SOFR + 3.70%), 01/26/2032(a)(c)			672		637,440
Connecticut Avenue Securities Trust  Series 2018-R07, Class 1M2 7.42% (LIBOR 1 Month + 2.40%), 04/25/2031(a)(c)			17		17,087
Series 2019-R01, Class 2M2 7.47% (LIBOR 1 Month + 2.45%), 07/25/2031(a)(c)			65		65,100
Series 2019-R02, Class 1M2 7.32% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(c)			6		5,679
Series 2020-R01, Class 1B1 8.27% (LIBOR 1 Month + 3.25%), 01/25/2040(a)(c)			500		485,315
Series 2020-SBT1, Class 1M2 8.67% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			1,000		1,012,190
Series 2020-SBT1, Class 2M2 8.67% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			300		304,128
Series 2022-R01, Class 1B1 7.965% (SOFR + 3.15%), 12/25/2041(a)(c)			625		602,565
Series 2022-R02, Class 2M1 6.015% (SOFR + 1.20%), 01/25/2042(a)(c)			413		410,296
Series 2023-R02, Class 1M1 7.124% (SOFR + 2.30%), 01/25/2043(a)(c)			225		226,339
Eagle Re Ltd. Series 2018-1, Class M2 8.02% (LIBOR 1 Month + 3.00%), 11/25/2028(a)(c)			325		326,594

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-1, Class M2 8.32% (LIBOR 1 Month + 3.30%), 04/25/2029(a)(c)	U.S.$		325	$	327,917
Series 2021-2, Class M1B 6.865% (SOFR + 2.05%), 04/25/2034(a)(c)			254		252,449
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes  Series 2015-HQA2, Class M3 9.82% (LIBOR 1 Month + 4.80%), 05/25/2028(c)			159		165,408
Series 2016-HQA3, Class M3 8.87% (LIBOR 1 Month + 3.85%), 03/25/2029(c)			646		669,841
Series 2019-DNA1, Class B2 15.77% (LIBOR 1 Month + 10.75%), 01/25/2049(a)(c)			750		846,989
Series 2019-FTR2, Class B1 8.02% (LIBOR 1 Month + 3.00%), 11/25/2048(a)(c)			750		713,571
Series 2019-FTR3, Class B2 9.645% (LIBOR 1 Month + 4.80%), 09/25/2047(c)(e)			700		587,098
Series 2020-DNA5, Class M2 7.615% (SOFR + 2.80%), 10/25/2050(a)(c)			218		221,927
Series 2021-DNA3, Class B1 8.315% (SOFR + 3.50%), 10/25/2033(a)(c)			651		635,978
Series 2021-DNA6, Class M2 6.315% (SOFR + 1.50%), 10/25/2041(a)(c)			828		797,476
Series 2021-HQA4, Class M2 7.165% (SOFR + 2.35%), 12/25/2041(a)(c)			513		479,409
Series 2022-DNA1, Class M2 7.315% (SOFR + 2.50%), 01/25/2042(a)(c)			806		758,376
Series 2022-DNA2, Class M2 8.565% (SOFR + 3.75%), 02/25/2042(a)(c)			605		592,837
Federal National Mortgage Association Connecticut Avenue Securities Series 2015-C02, Class 1M2 9.02% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			91		94,685
Series 2015-C03, Class 1M2 10.02% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			92		97,645
Series 2015-C04, Class 1M2 10.72% (LIBOR 1 Month + 5.70%), 04/25/2028(c)			264		282,317
Series 2016-C02, Class 1B 17.27% (LIBOR 1 Month + 12.25%), 09/25/2028(c)			149		166,521

26    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C03, Class 1B 16.77% (LIBOR 1 Month + 11.75%), 10/25/2028(c)	U.S.$		99	$	110,115
Series 2016-C06, Class 1B 14.27% (LIBOR 1 Month + 9.25%), 04/25/2029(c)			377		393,512
Series 2016-C07, Class 2B 14.52% (LIBOR 1 Month + 9.50%), 05/25/2029(c)			378		389,753
Series 2017-C01, Class 1B1 10.77% (LIBOR 1 Month + 5.75%), 07/25/2029(c)			750		845,301
Series 2017-C02, Class 2B1 10.52% (LIBOR 1 Month + 5.50%), 09/25/2029(c)			750		829,564
Series 2017-C04, Class 2M2 7.87% (LIBOR 1 Month + 2.85%), 11/25/2029(c)			196		199,181
Series 2017-C06, Class 2B1 9.47% (LIBOR 1 Month + 4.45%), 02/25/2030(c)			750		815,689
Series 2017-C07, Class 2B1 9.47% (LIBOR 1 Month + 4.45%), 05/25/2030(c)			750		808,125
Series 2021-R02, Class 2B1 8.115% (SOFR + 3.30%), 11/25/2041(a)(c)			441		425,015
JPMorgan Madison Avenue Securities Trust  Series 2014-CH1, Class M2 9.27% (LIBOR 1 Month + 4.25%), 11/25/2024(c)(e)			19		18,497
PMT Credit Risk Transfer Trust  Series 2019-2R, Class A 7.768% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(c)			244		238,938
Series 2019-3R, Class A 8.718% (LIBOR 1 Month + 3.70%), 11/27/2031(a)(c)			96		93,525
Series 2020-1R, Class A 8.368% (LIBOR 1 Month + 3.35%), 02/27/2023(c)(e)			162		156,165
Radnor Re Ltd. Series 2019-1, Class M1B 6.97% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(c)			635		635,101
Triangle Re Ltd. Series 2021-3, Class M1B 7.715% (SOFR + 2.90%), 02/25/2034(a)(c)			530		522,055

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Wells Fargo Credit Risk Transfer Securities Trust  Series 2015-WF1, Class 1M2 10.27% (LIBOR 1 Month + 5.25%), 11/25/2025(c)(e)	U.S.$		117		$	109,022
Series 2015-WF1, Class 2M2 10.52% (LIBOR 1 Month + 5.50%), 11/25/2025(c)(e)			27			25,458
						19,904,429
Agency Floating Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 4719, Class JS 1.202% (6.15% – LIBOR 1 Month), 09/15/2047(c)(f)			581			68,122
Series 4981, Class HS 1.08% (6.10% – LIBOR 1 Month), 06/25/2050(c)(f)			1,783			211,799
Federal National Mortgage Association REMICs Series 2015-90, Class SL 1.13% (6.15% – LIBOR 1 Month), 12/25/2045(c)(f)			823			96,213
Series 2016-77, Class DS 0.98% (6.00% – LIBOR 1 Month), 10/25/2046(c)(f)			655			71,596
Series 2017-26, Class TS 0.93% (5.95% – LIBOR 1 Month), 04/25/2047(c)(f)			828			99,004
Series 2017-62, Class AS 1.13% (6.15% – LIBOR 1 Month), 08/25/2047(c)(f)			706			88,439
Series 2017-97, Class LS 1.18% (6.20% – LIBOR 1 Month), 12/25/2047(c)(f)			827			105,552
Government National Mortgage Association Series 2017-65, Class ST 1.197% (6.15% – LIBOR 1 Month), 04/20/2047(c)(f)			776			92,470
						833,195
Non-Agency Fixed Rate – 0.3%
Alternative Loan Trust  Series 2006-24CB, Class A16 5.75%, 08/25/2036			185			104,587
Series 2006-28CB, Class A14 6.25%, 10/25/2036			0	**		5
Series 2006-J1, Class 1A13 5.50%, 02/25/2036			81			59,010

28    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CHL Mortgage Pass-Through Trust  Series 2006-13, Class 1A19 6.25%, 09/25/2036	U.S.$		46	$	18,519
JPMorgan Alternative Loan Trust  Series 2006-A3, Class 2A1 3.882%, 07/25/2036			355		278,589
Structured Asset Securities Corp. Mortgage Pass-Through Certificates Series 2002-3, Class B3 6.50%, 03/25/2032			452		82,720
					543,430
Non-Agency Floating Rate – 0.3%
Deutsche Alt-A Securities Mortgage Loan Trust  Series 2006-AR4, Class A2 5.40% (LIBOR 1 Month + 0.38%), 12/25/2036(c)			433		151,449
HomeBanc Mortgage Trust  Series 2005-1, Class A1 5.52% (LIBOR 1 Month + 0.50%), 03/25/2035(c)			71		57,840
Impac Secured Assets Corp. Series 2005-2, Class A2D 5.88% (LIBOR 1 Month + 0.86%), 03/25/2036(c)			133		104,056
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 7.12% (LIBOR 1 Month + 2.10%), 04/25/2047(a)(c)			87		82,506
Residential Accredit Loans, Inc. Trust  Series 2007-QS4, Class 2A4 5.36% (LIBOR 1 Month + 0.34%), 03/25/2037(c)			497		102,767
					498,618
Agency Fixed Rate – 0.2%
Federal National Mortgage Association Grantor Trust  Series 2004-T5, Class AB4 5.385%, 05/28/2035			56		50,480
Federal National Mortgage Association REMICs Series 2016-31, Class IO 5.00%, 06/25/2046(g)			2,518		394,596
					445,076
Total Collateralized Mortgage Obligations (cost $23,734,157)					22,224,748

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 7.6%
Other ABS - Fixed Rate – 4.3%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(a)	U.S.$		739	$	617,792
ACHV ABS TRUST  Series 2023-2PL, Class A 6.42%, 05/20/2030(a)			311		311,327
Affirm Asset Securitization Trust  Series 2021-Z1, Class A 1.07%, 08/15/2025(a)			83		80,662
Series 2021-Z2, Class A 1.17%, 11/16/2026(a)			86		82,667
Series 2022-X1, Class A 1.75%, 02/15/2027(a)			154		149,817
Atalaya Equipment Leasing Trust  Series 2021-1A, Class C 2.69%, 06/15/2028(a)			600		562,154
Cajun Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(a)			138		119,413
College Ave Student Loans LLC Series 2021-C, Class C 3.06%, 07/26/2055(a)			213		176,455
Dext ABS LLC Series 2021-1, Class C 2.29%, 09/15/2028(a)			519		467,786
Series 2021-1, Class D 2.81%, 03/15/2029(a)			260		225,751
Series 2023-1, Class A2 5.99%, 03/15/2032(a)			467		466,954
Diamond Issuer Series 2021-1A, Class B 2.701%, 11/20/2051(a)			566		477,317
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(a)			408		352,188
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(a)			252		218,145
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(a)			325		305,906
Series 2020-1A, Class A2 3.981%, 12/20/2050(a)			978		849,125
MVW LLC Series 2021-2A, Class C 2.23%, 05/20/2039(a)			618		554,761

30    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Neighborly Issuer Series 2022-1A, Class A2 3.695%, 01/30/2052(a)	U.S.$		363	$	302,369
Series 2023-1A, Class A2 7.308%, 01/30/2053(a)			395		390,051
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(a)			298		252,074
Nelnet Student Loan Trust  Series 2021-BA, Class B 2.68%, 04/20/2062(a)			220		182,916
SEB Funding LLC Series 2021-1A, Class A2 4.969%, 01/30/2052(a)			690		609,768
Upstart Securitization Trust  Series 2021-3, Class B 1.66%, 07/20/2031(a)			480		458,051
					8,213,449
Autos - Fixed Rate – 3.0%
Avis Budget Rental Car Funding AESOP LLC Series 2023-3A, Class A 5.44%, 02/22/2028(a)			475		478,649
Carvana Auto Receivables Trust  Series 2021-N3, Class C 1.02%, 06/12/2028			168		159,016
Series 2021-N4, Class D 2.30%, 09/11/2028			266		247,968
CPS Auto Receivables Trust  Series 2021-C, Class D 1.69%, 06/15/2027(a)			470		436,423
FHF Trust  Series 2021-2A, Class A 0.83%, 12/15/2026(a)			141		134,261
Series 2023-1A, Class A2 6.57%, 06/15/2028(a)			211		211,246
Flagship Credit Auto Trust  Series 2019-3, Class E 3.84%, 12/15/2026(a)			960		873,632
Series 2020-1, Class E 3.52%, 06/15/2027(a)			1,000		915,955
Ford Credit Auto Owner Trust  Series 2021-1, Class D 2.31%, 10/17/2033(a)			542		479,601
Hertz Vehicle Financing III LLC Series 2022-1A, Class C 2.63%, 06/25/2026(a)			450		413,847

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lendbuzz Securitization Trust  Series 2023-1A, Class A2 6.92%, 08/15/2028(a)	U.S.$		659	$	660,123
Octane Receivables Trust  Series 2021-2A, Class C 2.53%, 05/21/2029(a)			541		478,278
Santander Bank Auto Credit-Linked Notes  Series 2022-A, Class B 5.281%, 05/15/2032(a)			325		317,816
					5,806,815
Credit Cards - Fixed Rate – 0.3%
Brex Commercial Charge Card Master Trust  Series 2022-1, Class A 4.63%, 07/15/2025(a)			565		551,268
Total Asset-Backed Securities (cost $15,955,805)					14,571,532
COMMERCIAL MORTGAGE-BACKED SECURITIES – 5.3%
Non-Agency Fixed Rate CMBS – 3.5%
BAMLL Commercial Mortgage Securities Trust  Series 2013-WBRK, Class D 3.652%, 03/10/2037(a)			960		806,017
Citigroup Commercial Mortgage Trust  Series 2013-GC17, Class D 5.261%, 11/10/2046(a)			565		509,299
Commercial Mortgage Trust  Series 2014-LC17, Class B 4.49%, 10/10/2047			800		766,749
GS Mortgage Securities Trust  Series 2011-GC5, Class D 5.298%, 08/10/2044(a)			252		94,340
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(e)(h)			277		261,435
Series 2021-1, Class A2 2.435%, 08/15/2026(e)(h)			719		686,383
Series 2021-1, Class AS 2.638%, 08/15/2026(e)(h)			25		22,624
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035(e)			710		675,605
JPMBB Commercial Mortgage Securities Trust  Series 2014-C24, Class C 4.529%, 11/15/2047			890		600,794

32    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMorgan Chase Commercial Mortgage Securities Trust  Series 2012-C6, Class D 5.129%, 05/15/2045	U.S.$		592	$	533,863
LB-UBS Commercial Mortgage Trust  Series 2006-C6, Class AJ 5.452%, 09/15/2039			77		32,271
LSTAR Commercial Mortgage Trust  Series 2016-4, Class A2 2.579%, 03/10/2049(a)			129		128,992
Wells Fargo Commercial Mortgage Trust  Series 2016-LC24, Class XA 1.749%, 10/15/2049(g)			7,370		308,802
Series 2016-LC25, Class C 4.488%, 12/15/2059			545		474,770
Series 2016-NXS6, Class C 4.533%, 11/15/2049			600		526,195
WF-RBS Commercial Mortgage Trust  Series 2013-C11, Class B 3.714%, 03/15/2045			263		230,410
					6,658,549
Non-Agency Floating Rate CMBS – 1.8%
BAMLL Commercial Mortgage Securities Trust  Series 2017-SCH, Class AF 5.948% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(c)			1,330		1,267,873
BBCMS Mortgage Trust  Series 2020-BID, Class A 7.088% (LIBOR 1 Month + 2.14%), 10/15/2037(a)(c)			692		668,872
BX Commercial Mortgage Trust  Series 2019-IMC, Class D 6.848% (LIBOR 1 Month + 1.90%), 04/15/2034(a)(c)			142		136,267
Series 2019-IMC, Class E 7.098% (LIBOR 1 Month + 2.15%), 04/15/2034(a)(c)			566		543,015
Federal Home Loan Mortgage Corp. Series 2021-MN1, Class M1 6.56% (SOFR + 2.00%), 01/25/2051(a)(c)			72		68,387
Morgan Stanley Capital I Trust  Series 2019-BPR, Class C 8.248% (LIBOR 1 Month + 3.30%), 05/15/2036(a)(c)			520		492,422

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Natixis Commercial Mortgage Securities Trust  Series 2019-MILE, Class A 6.469% (SOFR + 1.58%), 07/15/2036(a)(c)	U.S.$		379	$	353,657
					3,530,493
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-39, Class IO 0.00%, 07/16/2046(g)			175		2
Total Commercial Mortgage-Backed Securities (cost $11,461,783)					10,189,044
COLLATERALIZED LOAN OBLIGATIONS – 4.3%
CLO - Floating Rate – 4.3%
AGL CLO 12 Ltd. Series 2021-12A, Class D 8.10% (LIBOR 3 Month + 2.85%), 07/20/2034(a)(c)			500		455,782
Balboa Bay Loan Funding Ltd. Series 2021-1A, Class D 8.30% (LIBOR 3 Month + 3.05%), 07/20/2034(a)(c)			709		625,095
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 8.15% (LIBOR 3 Month + 2.90%), 07/20/2034(a)(c)			400		359,508
Elevation CLO Ltd. Series 2020-11A, Class D1 9.11% (LIBOR 3 Month + 3.85%), 04/15/2033(a)(c)			1,000		915,879
Elmwood CLO IX Ltd. Series 2021-2A, Class D 8.20% (LIBOR 3 Month + 2.95%), 07/20/2034(a)(c)			700		668,563
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 8.165% (LIBOR 3 Month + 2.90%), 07/19/2034(a)(c)			700		646,713
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 6.32% (LIBOR 3 Month + 1.07%), 04/20/2034(a)(c)			581		571,477
OCP CLO Ltd. Series 2020-18A, Class AR 6.34% (LIBOR 3 Month + 1.09%), 07/20/2032(a)(c)			761		749,005

34    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Peace Park CLO Ltd. Series 2021-1A, Class D 8.20% (LIBOR 3 Month + 2.95%), 10/20/2034(a)(c)	U.S.$		300	$	281,340
Pikes Peak CLO 8 Series 2021-8A, Class A 6.42% (LIBOR 3 Month + 1.17%), 07/20/2034(a)(c)			675		662,762
Regatta XX Funding Ltd. Series 2021-2A, Class A 6.42% (LIBOR 3 Month + 1.16%), 10/15/2034(a)(c)			1,019		994,082
Rockford Tower CLO Ltd. Series 2021-1A, Class D 8.25% (LIBOR 3 Month + 3.00%), 07/20/2034(a)(c)			711		638,776
Series 2021-2A, Class A1 6.41% (LIBOR 3 Month + 1.16%), 07/20/2034(a)(c)			504		490,961
Voya CLO Ltd. Series 2019-1A, Class DR 8.11% (LIBOR 3 Month + 2.85%), 04/15/2031(a)(c)			210		185,361
Total Collateralized Loan Obligations (cost $8,769,709)					8,245,304
CORPORATES - NON-INVESTMENT GRADE – 2.0%
Industrial – 1.9%
Basic – 0.2%
Sealed Air Corp. 4.00%, 12/01/2027(a)			379		355,009
Capital Goods – 0.1%
TK Elevator Midco GmbH 4.375%, 07/15/2027(a)	EUR		181		177,880
Communications - Media – 0.7%
Altice Financing SA 3.00%, 01/15/2028(a)			181		154,429
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(a)	U.S.$		136		114,708
4.50%, 06/01/2033(a)			483		385,105
4.75%, 02/01/2032(a)			146		120,824
DISH DBS Corp. 5.75%, 12/01/2028(a)			322		229,512

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Summer BC Holdco B SARL 5.75%, 10/31/2026(a)	EUR		181	$	173,297
VZ Vendor Financing II BV 2.875%, 01/15/2029(a)			181		156,448
					1,334,323
Communications - Telecommunications – 0.2%
Altice France SA/France 3.375%, 01/15/2028(a)			181		152,469
Lorca Telecom Bondco SA 4.00%, 09/18/2027(a)			181		183,337
					335,806
Consumer Cyclical - Automotive – 0.3%
Ford Motor Co. 6.10%, 08/19/2032	U.S.$		232		221,228
ZF North America Capital, Inc. 6.875%, 04/14/2028(a)			289		297,130
					518,358
Consumer Cyclical - Entertainment – 0.3%
Carnival Corp. 4.00%, 08/01/2028(a)			712		617,340
Consumer Non-Cyclical – 0.0%
Organon & Co./Organon Foreign Debt Co-Issuer BV 2.875%, 04/30/2028(a)	EUR		100		95,419
Services – 0.1%
APCOA Parking Holdings GmbH 4.625%, 01/15/2027(a)			181		171,538
					3,605,673
Utility – 0.1%
Electric – 0.1%
Vistra Corp. 7.00%, 12/15/2026(a)(b)	U.S.$		218		195,862
Total Corporates - Non-Investment Grade (cost $4,460,220)					3,801,535
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 1.0%
United States – 1.0%
State of California Series 2010 7.625%, 03/01/2040			970		1,264,627

36    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Tobacco Settlement Finance Authority/WV (Tobacco Settlement Finance Authority/WV) Series 2020 3.00%, 06/01/2035	U.S.$		189	$	188,758
University of California Series 2021-B 3.071%, 05/15/2051			730		527,834
Total Local Governments - US Municipal Bonds (cost $2,255,490)					1,981,219
EMERGING MARKETS - CORPORATE BONDS – 1.0%
Industrial – 1.0%
Basic – 0.2%
Stillwater Mining Co. 4.00%, 11/16/2026(a)			446		400,090
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			76		57,418
					457,508
Capital Goods – 0.3%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			540		519,750
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(a)			477		1,527
					521,277
Communications - Media – 0.2%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a)			417		334,981
Consumer Cyclical - Other – 0.2%
Wynn Macau Ltd. 5.625%, 08/26/2028(a)			330		286,894
Consumer Non-Cyclical – 0.1%
Natura Cosmeticos SA 4.125%, 05/03/2028(a)			283		234,501
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(e)(h)(i)(j)(k)			660		66
					234,567
					1,835,227
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LP 6.125%, 03/01/2026(e)			60		57,520

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(a)(l)(m)	U.S.$		206	$	7,145
7.125%, 12/26/2046(a)(l)(m)			261		13,547
					20,692
Total Emerging Markets - Corporate Bonds (cost $3,091,810)					1,913,439
QUASI-SOVEREIGNS – 0.5%
Quasi-Sovereign Bonds – 0.5%
Hungary – 0.2%
Magyar Export-Import Bank Zrt 6.125%, 12/04/2027(a)			387		389,365
Mexico – 0.3%
Comision Federal de Electricidad 3.348%, 02/09/2031(a)			374		297,985
4.688%, 05/15/2029(a)			295		265,555
					563,540
Total Quasi-Sovereigns (cost $1,053,011)					952,905
EMERGING MARKETS - SOVEREIGNS – 0.3%
Dominican Republic – 0.3%
Dominican Republic International Bond 4.875%, 09/23/2032(a) (cost $763,000)			763		655,846
		Shares
COMMON STOCKS – 0.2%
Financials – 0.2%
Insurance ��� 0.2%
Mt Logan Re Ltd. (Special Investment)(h)(j)(k) (cost $326,594)			368		345,566
		Principal Amount (000)
GOVERNMENTS - SOVEREIGN BONDS – 0.1%
Colombia – 0.1%
Colombia Government International Bond 3.125%, 04/15/2031 (cost $373,959)	U.S.$		375		277,570

38    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SHORT-TERM INVESTMENTS – 5.4%
U.S. Treasury Bills – 3.5%
U.S. Treasury Bill Zero Coupon, 07/13/2023	U.S.$		1,981	$	1,960,700
Zero Coupon, 11/30/2023			4,963		4,830,764
Total U.S. Treasury Bills (cost $6,793,371)					6,791,464
		Shares
Investment Companies – 1.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(n)(o)(p) (cost $3,601,286)			3,601,286		3,601,286
Total Short-Term Investments (cost $10,394,657)					10,392,750
Total Investments – 105.5% (cost $216,814,495)					203,012,021
Other assets less liabilities – (5.5)%					(10,588,437	)
Net Assets – 100.0%				$	192,423,584

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		77		June 2023	$	9,351,891	$	333,093
U.S. Long Bond (CBT) Futures		5		June 2023		658,281		1,680
U.S. T-Note 2 Yr (CBT) Futures		5		June 2023		1,030,820		9,916
U.S. T-Note 5 Yr (CBT) Futures		110		June 2023		12,071,641		261,984
U.S. Ultra Bond (CBT) Futures		108		June 2023		15,271,875		697,142
Sold Contracts
10 Yr Japan Bond (OSE) Futures		6		June 2023		6,544,093		(140,291	)
							$	1,163,524

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	EUR	2,157	USD	2,296		05/11/2023	$	(82,120	)
State Street Bank & Trust Co.	JPY	246	USD	2		06/15/2023		42
							$	(82,078	)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 40, 5 Year Index, 06/20/2028*		(5.00	)%		Quarterly		4.65	%		USD	15,763	$	(310,562)	$	(34,097	)	$	(276,465	)

* 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

2,000

12/13/2029

1.537%

1 Day SOFR

Annual

$

208,126

$

197,067

$

11,059

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at April 30, 2023			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	15	$	(3,071	)	$	(1,230	)	$	(1,841	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	30		(6,142	)		(2,711	)		(3,431	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	30		(6,142	)		(2,505	)		(3,637	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	60		(12,284	)		(5,926	)		(6,358	)
												$	(27,639	)	$	(12,372	)	$	(15,267	)

* Termination date

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2023, the aggregate market value of these securities amounted to $69,466,080 or 36.1% 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 April 30, 2023.

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

40    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(e) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 1.36% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2019-FTR3, Class B2 9.645%, 09/25/2047		01/07/2020	$	730,172	$	587,098		0.31	%
GSF Series 2021-1, Class A1 1.433%, 08/15/2026		02/25/2021		267,337		261,435		0.14	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		734,721		686,383		0.36	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		25,463		22,624		0.01	%
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		754,519		675,605		0.35	%
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 9.27%, 11/25/2024		11/06/2015		18,984		18,497		0.01	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 8.368%, 02/27/2023		11/16/2015		161,644		156,165		0.08	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018		60,000		57,520		0.03	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		365,927		66		0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 10.27%, 11/25/2025		09/28/2015		119,350		109,022		0.06	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 2M2 10.52%, 11/25/2025		09/28/2015		26,882		25,458		0.01	%

(f) Inverse interest only security.

(g) IO – Interest Only.

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

(i) Defaulted matured security.

(j) Non-income producing security.

(k) Fair valued by the Adviser.

(l) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023.

(m) 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 April 30, 2023.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

(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 the 7-day yield as of period end.

Currency Abbreviations:

EUR – Euro

JPY – Japanese Yen

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

ARMs – Adjustable Rate Mortgages

CBT – Chicago Board of Trade

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

OSE – Osaka Securities Exchange

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TBA – To Be Announced

See notes to financial statements.

42    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

April 30, 2023 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $213,213,209)	$	199,410,735
Affiliated issuers (cost $3,601,286)		3,601,286
Cash		8,430
Cash collateral due from broker		2,479,149
Receivable for investment securities sold		4,929,939
Unaffiliated interest and dividends receivable		1,477,683
Receivable for variation margin on futures		276,169
Receivable for capital stock sold		252,457
Affiliated dividends receivable		7,796
Unrealized appreciation on forward currency exchange contracts		42
Total assets		212,443,686
Liabilities
Payable for investment securities purchased		19,249,342
Payable for capital stock redeemed		187,193
Unrealized depreciation on forward currency exchange contracts		82,120
Dividends payable		79,583
Payable for variation margin on centrally cleared swaps		46,388
Transfer Agent fee payable		31,124
Distribution fee payable		30,695
Administrative fee payable		29,303
Market value on credit default swaps (net premiums received $12,372)		27,639
Foreign capital gains tax payable		11,614
Advisory fee payable		10,367
Directors’ fees payable		1,827
Accrued expenses		232,907
Total liabilities		20,020,102
Net Assets	$	192,423,584
Composition of Net Assets
Capital stock, at par	$	20,321
Additional paid-in capital		236,919,473
Accumulated loss		(44,516,210	)
Net Assets	$	192,423,584

Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	147,141,999		15,540,629	$	9.47	*
C	$	2,450,054		259,397	$	9.45
Advisor	$	36,636,801		3,867,494	$	9.47
R	$	430,025		45,434	$	9.46
K	$	2,557,944		269,966	$	9.48
I	$	658,721		69,485	$	9.48
Z	$	2,548,040		268,568	$	9.49

* The maximum offering price per share for Class A shares was $9.89 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    43

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2023 (unaudited)

Investment Income
Interest	$	4,543,599
Dividends—Affiliated issuers		38,290		$	4,581,889
Expenses
Advisory fee (see Note B)		438,627
Distribution fee—Class A		183,807
Distribution fee—Class C		13,121
Distribution fee—Class R		1,017
Distribution fee—Class K		2,987
Transfer agency—Class A		116,431
Transfer agency—Class C		2,161
Transfer agency—Advisor Class		31,346
Transfer agency—Class R		529
Transfer agency—Class K		2,389
Transfer agency—Class I		433
Transfer agency—Class Z		422
Custody and accounting		74,358
Audit and tax		52,560
Registration fees		50,974
Administrative		46,393
Printing		22,479
Legal		18,477
Directors’ fees		9,919
Miscellaneous		13,733
Total expenses		1,082,163
Less: expenses waived and reimbursed by the Adviser (see Notes B)		(371,777	)
Net expenses					710,386
Net investment income					3,871,503
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized loss on:
Investment transactions(a)					(3,796,854	)
Forward currency exchange contracts					(98,364	)
Futures					(2,173,782	)
Swaps					(822,396	)
Foreign currency transactions					(260,124	)
Net change in unrealized appreciation (depreciation) of:
Investments					13,448,971
Forward currency exchange contracts					(129,896	)
Futures					4,583,567
Swaps					4,942
Foreign currency denominated assets and liabilities					4,244
Net gain on investment and foreign currency transactions					10,760,308
Net Increase in Net Assets from Operations				$	14,631,811

(a) Net of foreign realized capital gains taxes of $13,643.

See notes to financial statements.

44    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Increase (Decrease) in Net Assets from Operations
Net investment income	$	3,871,503		$	6,637,631
Net realized loss on investment and foreign currency transactions		(7,151,520	)		(25,207,445	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		17,911,828			(30,613,206	)
Net increase (decrease) in net assets from operations		14,631,811			(49,183,020	)
Distributions to Shareholders
Class A		(3,729,247	)		(4,807,761	)
Class C		(57,282	)		(82,043	)
Advisor Class		(1,059,629	)		(2,147,910	)
Class R		(9,732	)		(13,004	)
Class K		(60,306	)		(86,491	)
Class I		(19,481	)		(36,415	)
Class Z		(63,150	)		(83,929	)
Capital Stock Transactions
Net decrease		(18,903,767	)		(65,036,414	)
Total decrease		(9,270,783	)		(121,476,987	)
Net Assets
Beginning of period		201,694,367			323,171,354
End of period	$	192,423,584		$	201,694,367

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    45

NOTES TO FINANCIAL STATEMENTS

April 30, 2023 (unaudited)

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 10 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 C, Advisor Class, Class R, Class K, Class I, Class T and Class Z shares. Class B and Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-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. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors

46    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

(the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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. 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.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

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., 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    49

NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of April 30, 2023:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Investment Grade

$

– 0

–

$

53,739,944

$

– 0

–

$

53,739,944

Governments – Treasuries

– 0

–

37,735,870

– 0

–

37,735,870

Mortgage Pass-Throughs

– 0

–

35,984,749

– 0

–

35,984,749

Collateralized Mortgage Obligations

– 0

–

22,224,748

– 0

–

22,224,748

Asset-Backed Securities

– 0

–

14,571,532

– 0

–

14,571,532

Commercial Mortgage-Backed Securities

– 0

–

9,218,602

970,442

10,189,044

Collateralized Loan Obligations

– 0

–

8,245,304

– 0

–

8,245,304

Corporates – Non-Investment Grade

– 0

–

3,801,535

– 0

–

3,801,535

Local Governments – US Municipal Bonds

– 0

–

1,981,219

– 0

–

1,981,219

Emerging Markets – Corporate Bonds

– 0

–

1,913,373

66

1,913,439

Quasi-Sovereigns

– 0

–

952,905

– 0

–

952,905

Emerging Markets – Sovereigns

– 0

–

655,846

– 0

–

655,846

Common Stocks

– 0

–

– 0

–

345,566

345,566

Governments – Sovereign Bonds

– 0

–

277,570

– 0

–

277,570

Short-Term Investments:

U.S. Treasury Bills

– 0

–

6,791,464

– 0

–

6,791,464

Investment Companies

3,601,286

– 0

–

– 0

–

3,601,286

Total Investments in Securities

3,601,286

198,094,661

1,316,074

203,012,021

Other Financial Instruments(a):

Assets:

Futures

1,303,815

– 0

–

– 0

–

1,303,815

(b)

Forward Currency Exchange Contracts

– 0

–

42

– 0

–

42

Centrally Cleared Interest Rate Swaps

– 0

–

208,126

– 0

–

208,126

(b)

Liabilities:

Futures

(140,291

)

– 0

–

– 0

–

(140,291

)(b)

Forward Currency Exchange Contracts

– 0

–

(82,120

)

– 0

–

(82,120

)

Centrally Cleared Credit Default Swaps

– 0

–

(310,562

)

– 0

–

(310,562

)(b)

Credit Default Swaps

– 0

–

(27,639

)

– 0

–

(27,639

)

Total

$

4,764,810

$

197,882,508

$

1,316,074

$

203,963,392

(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, written options and written swaptions 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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NOTES TO 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.

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 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. Non-cash dividends, if any, are recorded on the

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NOTES TO FINANCIAL STATEMENTS (continued)

ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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 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 (which excludes 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%, .52%, 1.02%, .77%, .52%, and ..52% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, and Class Z shares, respectively. This waiver extends through January 31, 2024 and then may be extended by the Adviser for additional one year terms. For the six months ended April 30, 2023, such reimbursements/waivers amounted to $370,883.

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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 six months ended April 30, 2023, the reimbursement for such services amounted to $46,393.

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 $59,160 for the six months ended April 30, 2023.

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 $599 from the sale of Class A shares and received $121 and $1,293 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.

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, 2023. 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 six months ended April 30, 2023, such waiver amounted to $894.

Fund	Market Value 10/31/22 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 4/30/23 (000)		Dividend Income (000)
Government Money Market Portfolio	$	532	$	54,527	$	51,458	$	3,601	$	38

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

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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 and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class, Class I 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 $1,212,404, $149,691 and $69,921 for 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.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	17,982,022	$	30,574,337
U.S. government securities		213,577,004		208,516,568

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	2,689,806
Gross unrealized depreciation		(15,691,507	)
Net unrealized depreciation	$	(13,001,701	)

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 for non-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 six months ended April 30, 2023, the Fund held futures for hedging and non-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 for non-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 six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging and non-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 for non-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

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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 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 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.

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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 the 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 six months ended April 30, 2023, the Fund held interest rate swaps for hedging and non-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

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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 the 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 six months ended April 30, 2023, the Fund held credit default swaps for hedging and non-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.

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During the six months ended April 30, 2023, the Fund held total return swaps for hedging and 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.

During the six months ended April 30, 2023, 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 for variation margin on futures	$	1,303,815	*	Payable for variation margin on futures	$	140,291	*
Credit contracts					Payable for variation margin on centrally cleared swaps		276,465	*
Interest rate contracts	Receivable for variation margin on centrally cleared swaps		11,059	*

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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	$	42	Unrealized depreciation on forward currency exchange contracts	$	82,120
Credit contracts				Market value on credit default swaps		27,639
Total		$	1,314,916		$	526,515

* 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	$	(2,173,782	)	$	4,583,567
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		(98,364	)		(129,896	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		211,035			(274,059	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(1,033,431	)		279,001
Total		$	(3,094,542)		$	4,458,613

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The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:

Futures:
Average notional amount of buy contracts	$	30,567,010
Average notional amount of sale contracts	$	7,851,514
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	1,879,945	(a)
Average principal amount of sale contracts	$	5,056,552
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	2,000,000
Credit Default Swaps:
Average notional amount of sale contracts	$	729,931
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	9,399,857
Total Return Swaps:
Average notional amount	$	13,083,366	(b)

(a) Positions were open for three months during the period.

(b) Positions were open for four 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 April 30, 2023. 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
State Street Bank & Trust Co.	$	42	$	– 0	–	$	– 0	–	$	– 0	–	$	42
Total	$	42	$	– 0	–	$	– 0	–	$	– 0	–	$	42	^

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	$	82,120	$	– 0	–	$	– 0	–	$	– 0	–	$	82,120
Goldman Sachs International		27,639		– 0	–		– 0	–		(27,639	)		– 0	–
Total	$	109,759	$	– 0	–	$	– 0	–	$	(27,639	)	$	82,120	^

* 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 in non-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 six months ended April 30, 2023, the Fund earned drop income of $8,008 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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class A
Shares sold		403,515			929,521		$	3,762,224		$	9,353,366
Shares issued in reinvestment of dividends and distributions		307,094			364,650			2,880,410			3,695,818
Shares converted from Class C		22,489			49,952			208,520			508,929
Shares redeemed		(1,593,226	)		(3,002,913	)		(14,898,697	)		(30,472,715	)
Net decrease		(860,128	)		(1,658,790	)	$	(8,047,543	)	$	(16,914,602	)
Class C
Shares sold		23,135			40,910		$	215,388		$	437,289
Shares issued in reinvestment of dividends and distributions		4,282			5,570			40,070			56,773
Shares converted to Class A		(22,542	)		(50,067	)		(208,520	)		(508,929	)
Shares redeemed		(71,184	)		(176,908	)		(660,966	)		(1,851,176	)
Net decrease		(66,309	)		(180,495	)	$	(614,028	)	$	(1,866,043	)
Advisor Class
Shares sold		395,066			1,499,468		$	3,715,285		$	15,464,781
Shares issued in reinvestment of dividends and distributions		81,809			127,534			767,660			1,299,268
Shares redeemed		(1,603,845	)		(5,768,375	)		(14,980,576	)		(58,783,641	)
Net decrease		(1,126,970	)		(4,141,373	)	$	(10,497,631	)	$	(42,019,592	)
Class R
Shares sold		4,493			11,636		$	42,166		$	117,057
Shares issued in reinvestment of dividends and distributions		1,029			1,252			9,647			12,771
Shares redeemed		(2,128	)		(37,202	)		(19,820	)		(390,075	)
Net increase (decrease)		3,394			(24,314	)	$	31,993		$	(260,247	)

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	Shares						Amount
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022			Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31, 2022
Class K
Shares sold		45,345			37,277		$	427,570		$	396,322
Shares issued in reinvestment of dividends and distributions		6,441			8,318			60,452			85,557
Shares redeemed		(35,001	)		(301,853	)		(330,300	)		(3,321,684	)
Net increase (decrease)		16,785			(256,258	)	$	157,722		$	(2,839,805	)
Class I
Shares sold		3,988			66,379		$	37,381		$	713,418
Shares issued in reinvestment of dividends and distributions		2,051			3,525			19,256			36,042
Shares redeemed		(20,449	)		(147,406	)		(192,291	)		(1,550,300	)
Net decrease		(14,410	)		(77,502	)	$	(135,654	)	$	(800,840	)
Class Z
Shares sold		34,949			115,633		$	328,573		$	1,259,347
Shares issued in reinvestment of dividends and distributions		6,395			8,088			60,084			82,522
Shares redeemed		(19,837	)		(159,928	)		(187,283	)		(1,677,154	)
Net increase (decrease)		21,507			(36,207	)	$	201,374		$	(335,285	)

NOTE F

Risks Involved in Investing in the Fund

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, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, 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. The Fund may be subject to a greater risk of

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NOTES TO FINANCIAL STATEMENTS (continued)

rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.

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 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 for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

Foreign (Non-U.S.) Risk—Investments in securities of non-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 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 are subject to increased economic, political, regulatory or other uncertainties.

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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 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.

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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 Transition and Associated Risk—The Fund may be exposed to 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 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.

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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 NAV. 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 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, potentially 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. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended April 30, 2023.

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	6,753,143	$	7,517,670
Net long-term capital gains	$	504,410	$	6,253,596
Total taxable distributions paid	$	7,257,553	$	13,771,266

As of October 31, 2022, the components of accumulated earnings (deficit) on a tax basis were as follows:

Undistributed ordinary income	$	962,859
Accumulated capital and other losses		(27,748,267	)(a)
Unrealized appreciation (depreciation)		(26,897,218	)(b)
Total accumulated earnings (deficit)	$	(53,682,626	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $27,748,267.

(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 callable bonds, 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, 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, 2022, the Fund had a net short-term capital loss carryforward of $14,599,025 and a net long-term capital loss carryforward of $13,149,242 which may be carried forward for an indefinite period.

NOTE I

Recent Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06

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NOTES TO FINANCIAL STATEMENTS (continued)

extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.

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
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.02			$  11.25			$  11.53			$  11.35			$  10.65			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.18			.26			.25			.29			.33			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.51			(2.21	)		(.11	)		.22			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.69			(1.95	)		.14			.51			1.07			(.19	)
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.26	)		(.28	)		(.33	)		(.37	)		(.27	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.24	)		(.28	)		(.42	)		(.33	)		(.37	)		(.27	)
Net asset value, end of period		$  9.47			$  9.02			$  11.25			$  11.53			$  11.35			$  10.65
Total Return
Total investment return based on net asset value(d)		7.65	%		(17.57	)%		1.22	%		4.60	%		10.23	%		(1.75	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$147,142			$148,009			$203,168			$224,484			$221,033			$216,950
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%^		.77	%		.77	%		.77	%		.77	%		.77	%
Expenses, before waivers/reimbursements		1.16	%^		1.06	%		.99	%		.99	%		1.04	%		1.01	%
Net investment income(b)		3.93	%^		2.51	%		2.23	%		2.58	%		2.98	%		2.29	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.00			$  11.23			$  11.50			$  11.32			$  10.63			$  11.08
Income From Investment Operations
Net investment income(a)(b)		.15			.17			.17			.21			.25			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.50			(2.19	)		(.11	)		.22			.73			(.43	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.65			(2.02	)		.06			.43			.98			(.26	)
Less: Dividends and Distributions
Dividends from net investment income		(.20	)		(.19	)		(.19	)		(.25	)		(.29	)		(.19	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.20	)		(.21	)		(.33	)		(.25	)		(.29	)		(.19	)
Net asset value, end of period		$  9.45			$  9.00			$  11.23			$  11.50			$  11.32			$  10.63
Total Return
Total investment return based on net asset value(d)		7.16	%		(18.22	)%		.55	%		3.83	%		9.33	%		(2.40	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,450			$2,932			$5,682			$10,128			$10,564			$11,334
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%^		1.52	%		1.52	%		1.52	%		1.52	%		1.52	%
Expenses, before waivers/reimbursements		1.91	%^		1.81	%		1.74	%		1.75	%		1.79	%		1.76	%
Net investment income(b)		3.18	%^		1.69	%		1.51	%		1.84	%		2.24	%		1.54	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.03			$  11.26			$  11.53			$  11.35			$  10.65			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.19			.28			.28			.32			.35			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.50			(2.20	)		(.10	)		.22			.75			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.69			(1.92	)		.18			.54			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.25	)		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$  9.47			$  9.03			$  11.26			$  11.53			$  11.35			$  10.65
Total Return
Total investment return based on net asset value(d)		7.78	%		(17.44	)%		1.56	%		4.86	%		10.50	%		(1.50	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$36,637			$45,095			$102,827			$122,108			$104,850			$76,406
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%^		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements		.90	%^		.80	%		.74	%		.74	%		.79	%		.76	%
Net investment income(b)		4.15	%^		2.66	%		2.47	%		2.82	%		3.21	%		2.55	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class R
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.02			$  11.25			$  11.52			$  11.34			$  10.65			$  11.10
Income From Investment Operations
Net investment income(a)(b)		.17			.23			.23			.26			.30			.23
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.49			(2.20	)		(.11	)		.22			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.66			(1.97	)		.12			.48			1.04			(.21	)
Less: Dividends and Distributions
Dividends from net investment income		(.22	)		(.24	)		(.25	)		(.30	)		(.35	)		(.24	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.22	)		(.26	)		(.39	)		(.30	)		(.35	)		(.24	)
Net asset value, end of period		$  9.46			$  9.02			$  11.25			$  11.52			$  11.34			$  10.65
Total Return
Total investment return based on net asset value(d)		7.41	%		(17.78	)%		1.04	%		4.33	%		9.86	%		(1.90	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$430			$379			$746			$1,802			$3,298			$2,814
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.02	%^		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Expenses, before waivers/reimbursements		1.51	%^		1.43	%		1.37	%		1.37	%		1.42	%		1.35	%
Net investment income(b)		3.70	%^		2.21	%		1.99	%		2.34	%		2.73	%		2.07	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class K
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.03			$  11.26			$  11.54			$  11.36			$  10.66			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.18			.25			.25			.29			.33			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.51			(2.20	)		(.11	)		.22			.74			(.43	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.69			(1.95	)		.14			.51			1.07			(.18	)
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.26	)		(.28	)		(.33	)		(.37	)		(.27	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.24	)		(.28	)		(.42	)		(.33	)		(.37	)		(.27	)
Net asset value, end of period		$  9.48			$  9.03			$  11.26			$  11.54			$  11.36			$  10.66
Total Return
Total investment return based on net asset value(d)		7.53	%		(17.56	)%		1.22	%		4.59	%		10.22	%		(1.66	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,558			$2,287			$5,736			$6,580			$7,444			$7,863
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%^		.77	%		.77	%		.77	%		.77	%		.77	%
Expenses, before waivers/reimbursements		1.20	%^		1.12	%		1.06	%		1.07	%		1.10	%		1.08	%
Net investment income(b)		3.94	%^		2.41	%		2.24	%		2.59	%		2.98	%		2.32	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

	Class I
	Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
				2022			2021			2020			2019			2018
Net asset value, beginning of period		$  9.04			$  11.27			$  11.55			$  11.36			$  10.66			$  11.12
Income From Investment Operations
Net investment income(a)(b)		.19			.28			.28			.32			.36			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.50			(2.20	)		(.11	)		.23			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.69			(1.92	)		.17			.55			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.25	)		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$  9.48			$  9.04			$  11.27			$  11.55			$  11.36			$  10.66
Total Return
Total investment return based on net asset value(d)		7.78	%		(17.44	)%		1.46	%		4.93	%		10.50	%		(1.50	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$659			$758			$1,819			$2,743			$4,107			$2,894
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%^		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements		.86	%^		.75	%		.68	%		.70	%		.75	%		.72	%
Net investment income(b)		4.17	%^		2.67	%		2.48	%		2.85	%		3.22	%		2.57	%
Portfolio turnover rate**		116	%		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 78.

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FINANCIAL HIGHLIGHTS (continued)

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

		Class Z
		Six Months Ended April 30, 2023 (unaudited)			Year Ended October 31,
					2022			2021			2020			2019			2018
Net asset value, beginning of period		$	9.04		$	11.27		$	11.55		$	11.37		$	10.67		$	11.13
Income From Investment Operations
Net investment income(a)(b)			.19			.28			.29			.32			.36			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions			.51			(2.20	)		(.12	)		.22			.74			(.43	)
Contributions from Affiliates			– 0	–		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations			.70			(1.92	)		.17			.54			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income			(.25	)		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions	��		– 0	–		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions			(.25	)		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$	9.49		$	9.04		$	11.27		$	11.55		$	11.37		$	10.67
Total Return
Total investment return based on net asset value(d)			7.77	%		(17.34	)%		1.46	%		4.84	%		10.48	%		(1.49	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$	2,548		$	2,234		$	3,193		$	5,824		$	8,059		$	7,274
Ratio to average net assets of:
Expenses, net of waivers/reimbursements			.52	%^		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements			.78	%^		.70	%		.64	%		.64	%		.68	%		.64	%
Net investment income(b)			4.18	%^		2.70	%		2.51	%		2.82	%		3.22	%		2.48	%
Portfolio turnover rate**			116	%		141	%		128	%		83	%		74	%		195	%

(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 portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

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BOARD OF DIRECTORS

Garry Moody⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Marshall C. Turner, Jr.⁽¹⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Matthew S. Sheridan⁽²⁾, Vice President Nancy E. Hay, Secretary Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennifer Friedland, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company One Congress Street, Suite 1 Boston, MA 02114   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   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. Investment Grade: Core Fixed Income Investment Team. Messrs. Canter and Sheridan are the investment professionals primarily responsible for the day-to-day management of the Fund’s portfolio.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 Total Return Bond Portfolio (formerly AB Intermediate Bond Portfolio) (the “Fund”) at a meeting held in-person on November 1-3, 2022 (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 Vice President of 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 money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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 was all-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

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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 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 at the request of the directors. 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the requests of the directors. 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

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 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; 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 the 1-, 3-, 5- and 10-year periods ended July 31, 2022 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. The directors determined to continue to monitor the Fund’s performance closely.

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. Taking into account the administrative expense reimbursement paid to the Adviser in the latest fiscal year, the directors noted that the Adviser’s total rate of compensation was equal to the median.

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The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of 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 Vice President 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 any sub-advised funds utilizing investment strategies similar to those of 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 compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-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 and sub-advised fund 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.

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

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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 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 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

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

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 Opportunities 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

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Disruptors ETF

High Yield ETF

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

US High Dividend ETF

US Low Volatility Equity ETF

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.

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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-0152-0423                

ITEM 2. CODE OF ETHICS.

Not applicable when filing a semi-annual report to shareholders.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable when filing a semi-annual report to shareholders.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable when filing a semi-annual report to shareholders.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

ITEM 7.     DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 9.     PURCHASES OF EQUITY SECURITIES BY CLOSED-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 Rule 30a-2(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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12.     DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 13. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
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 the Sarbanes-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/ Onur Erzan
	Onur Erzan
	President
Date:	June 26, 2023

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/ Onur Erzan
	Onur Erzan
	President
Date:	June 26, 2023
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer
Date:	June 26, 2023