0000003794alliancebernstein:AllianceBernsteinIndexBloomberg1Minus10YearTIPSIndex18588AdditionalIndexMember2016-10-31
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)
66 Hudson Boulevard East
New York, New York 10005
(Address of principal executive offices) (Zip code)
Stephen M. Woetzel
AllianceBernstein L.P.
66 Hudson Boulevard East
New York, New York 10005
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 221-5672
Date of fiscal year end: October 31, 2024
Date of reporting period: October 31, 2024
| ITEM 1. | REPORTS TO STOCKHOLDERS. |
Please scan QR code for
Fund Information
AB All Market Real Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Real Return Portfolio (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AMTYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $101 | 0.93% |
How did the Fund perform last year? What affected the Fund’s performance?
Entering 2024, investors focused on the pace at which inflation would normalize. Despite a slow start in reducing inflationary concerns, economic growth across major economies was more resilient and broad-based than expected. This led to increased optimism about the economic outlook and strong equity performance. Real Estate, a notable rate-sensitive asset class, tends to outperform in falling rate environments and underperform in rising rate environments. For the AB All Market Real Return Portfolio, our strategic allocation to Real Estate was a significant contributor, especially in the third quarter following the US Federal Reserve's first rate cut in September. Similarly, the Portfolio's exposure to inflation-sensitive equities contributed, driven by the broad-based equity market rally in 2024. However, our modest tactical underweights to Real Estate and commodity producers detracted from relative performance. The AB All Market Real Return Portfolio allocates to various inflation-sensitive asset classes, including real estate, commodity producers, commodity futures, FX, inflation-sensitive equities and future natural resource equities. From a security selection standpoint, the Portfolio benefited from positive selection within Real Estate but was hurt by negative selection within future natural resource equities.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Advisor Class | MSCI ACWI (net) | 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $7,905 | $9,997 | $8,367 |
| 10/16 | $8,142 | $10,201 | $8,700 |
| 10/17 | $9,027 | $12,568 | $9,410 |
| 10/18 | $8,941 | $12,503 | $9,526 |
| 10/19 | $9,222 | $14,078 | $9,940 |
| 10/20 | $8,319 | $14,766 | $8,023 |
| 10/21 | $12,115 | $20,270 | $12,134 |
| 10/22 | $11,310 | $16,225 | $12,169 |
| 10/23 | $11,169 | $17,929 | $11,980 |
| 10/24 | $13,058 | $23,808 | $13,383 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class | 16.91% | 7.20% | 2.70% |
| MSCI ACWI (net) | 32.79% | 11.08% | 9.06% |
| 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed | 11.71% | 6.13% | 2.96% |
The addition of the MSCI ACWI (net) broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AMTYX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $695,947,263 |
| # of Portfolio Holdings | 370 |
| Portfolio Turnover Rate | 90% |
| Total Advisory Fees Paid | $5,292,478 |
Graphical Representation of Holdings
| Company | U.S. $ Value | % of Net Assets |
|---|
| Prologis, Inc. | $14,957,886 | 2.2% |
| Equinix, Inc. | $14,456,634 | 2.1% |
| Shell PLC | $10,399,486 | 1.5% |
| Exxon Mobil Corp. | $10,320,783 | 1.5% |
| Welltower, Inc. | $9,897,494 | 1.4% |
| Digital Realty Trust, Inc. | $9,305,388 | 1.3% |
| Simon Property Group, Inc. | $8,562,884 | 1.2% |
| Ventas, Inc. | $8,272,042 | 1.2% |
| Public Storage | $7,844,790 | 1.1% |
| VICI Properties, Inc. | $7,511,113 | 1.1% |
| Total | $101,528,500 | 14.6% |
| Asset Type | Value |
|---|
| Real Estate Stocks | 35.0% |
| Commodity Related Derivatives. | 32.0% |
| Inflation Sensitive Stocks | 17.0% |
| Commodity Related Stocks | 16.0% |
| |
|---|
| Common Stocks | 71.3% |
| Investment Companies | 2.0% |
| Short-Term Investments | 24.6% |
| Other assets less liabilities | 2.1% |
| Value | Value |
|---|
| United States | 45.7% |
| United Kingdom | 4.5% |
| Japan | 4.1% |
| Australia | 3.9% |
| Canada | 3.0% |
| France | 1.8% |
| Italy | 1.4% |
| Singapore | 1.4% |
| Germany | 1.0% |
| Hong Kong | 0.9% |
| Sweden | 0.9% |
| Switzerland | 0.8% |
| China | 0.7% |
| Others | 3.9% |
| Short-Term Investments | 23.9% |
| Other assets less liabilities | 2.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AMTYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AMTYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Real Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Real Return Portfolio (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AMTOX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class 1 | $117 | 1.08% |
How did the Fund perform last year? What affected the Fund’s performance?
Entering 2024, investors focused on the pace at which inflation would normalize. Despite a slow start in reducing inflationary concerns, economic growth across major economies was more resilient and broad-based than expected. This led to increased optimism about the economic outlook and strong equity performance. Real Estate, a notable rate-sensitive asset class, tends to outperform in falling rate environments and underperform in rising rate environments. For the AB All Market Real Return Portfolio, our strategic allocation to Real Estate was a significant contributor, especially in the third quarter following the US Federal Reserve's first rate cut in September. Similarly, the Portfolio's exposure to inflation-sensitive equities contributed, driven by the broad-based equity market rally in 2024. However, our modest tactical underweights to Real Estate and commodity producers detracted from relative performance. The AB All Market Real Return Portfolio allocates to various inflation-sensitive asset classes, including real estate, commodity producers, commodity futures, FX, inflation-sensitive equities and future natural resource equities. From a security selection standpoint, the Portfolio benefited from positive selection within Real Estate but was hurt by negative selection within future natural resource equities.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class 1 | MSCI ACWI (net) | 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $7,888 | $9,997 | $8,367 |
| 10/16 | $8,121 | $10,201 | $8,700 |
| 10/17 | $8,988 | $12,568 | $9,410 |
| 10/18 | $8,906 | $12,503 | $9,526 |
| 10/19 | $9,186 | $14,078 | $9,940 |
| 10/20 | $8,272 | $14,766 | $8,023 |
| 10/21 | $12,047 | $20,270 | $12,134 |
| 10/22 | $11,223 | $16,225 | $12,169 |
| 10/23 | $11,071 | $17,929 | $11,980 |
| 10/24 | $12,909 | $23,808 | $13,383 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class 1 | 16.61% | 7.04% | 2.59% |
| MSCI ACWI (net) | 32.79% | 11.08% | 9.06% |
| 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed | 11.71% | 6.13% | 2.96% |
The addition of the MSCI ACWI (net) broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AMTOX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $695,947,263 |
| # of Portfolio Holdings | 370 |
| Portfolio Turnover Rate | 90% |
| Total Advisory Fees Paid | $5,292,478 |
Graphical Representation of Holdings
| Company | U.S. $ Value | % of Net Assets |
|---|
| Prologis, Inc. | $14,957,886 | 2.2% |
| Equinix, Inc. | $14,456,634 | 2.1% |
| Shell PLC | $10,399,486 | 1.5% |
| Exxon Mobil Corp. | $10,320,783 | 1.5% |
| Welltower, Inc. | $9,897,494 | 1.4% |
| Digital Realty Trust, Inc. | $9,305,388 | 1.3% |
| Simon Property Group, Inc. | $8,562,884 | 1.2% |
| Ventas, Inc. | $8,272,042 | 1.2% |
| Public Storage | $7,844,790 | 1.1% |
| VICI Properties, Inc. | $7,511,113 | 1.1% |
| Total | $101,528,500 | 14.6% |
| Asset Type | Value |
|---|
| Real Estate Stocks | 35.0% |
| Commodity Related Derivatives. | 32.0% |
| Inflation Sensitive Stocks | 17.0% |
| Commodity Related Stocks | 16.0% |
| |
|---|
| Common Stocks | 71.3% |
| Investment Companies | 2.0% |
| Short-Term Investments | 24.6% |
| Other assets less liabilities | 2.1% |
| Value | Value |
|---|
| United States | 45.7% |
| United Kingdom | 4.5% |
| Japan | 4.1% |
| Australia | 3.9% |
| Canada | 3.0% |
| France | 1.8% |
| Italy | 1.4% |
| Singapore | 1.4% |
| Germany | 1.0% |
| Hong Kong | 0.9% |
| Sweden | 0.9% |
| Switzerland | 0.8% |
| China | 0.7% |
| Others | 3.9% |
| Short-Term Investments | 23.9% |
| Other assets less liabilities | 2.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AMTOX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AMTOX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Real Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Real Return Portfolio (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/AMTAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $127 | 1.17% |
How did the Fund perform last year? What affected the Fund’s performance?
Entering 2024, investors focused on the pace at which inflation would normalize. Despite a slow start in reducing inflationary concerns, economic growth across major economies was more resilient and broad-based than expected. This led to increased optimism about the economic outlook and strong equity performance. Real Estate, a notable rate-sensitive asset class, tends to outperform in falling rate environments and underperform in rising rate environments. For the AB All Market Real Return Portfolio, our strategic allocation to Real Estate was a significant contributor, especially in the third quarter following the US Federal Reserve's first rate cut in September. Similarly, the Portfolio's exposure to inflation-sensitive equities contributed, driven by the broad-based equity market rally in 2024. However, our modest tactical underweights to Real Estate and commodity producers detracted from relative performance. The AB All Market Real Return Portfolio allocates to various inflation-sensitive asset classes, including real estate, commodity producers, commodity futures, FX, inflation-sensitive equities and future natural resource equities. From a security selection standpoint, the Portfolio benefited from positive selection within Real Estate but was hurt by negative selection within future natural resource equities.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class A (with sales charges) | MSCI ACWI (net) | 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed |
|---|
| 10/14 | $9,572 | $10,000 | $10,000 |
| 10/15 | $7,547 | $9,997 | $8,367 |
| 10/16 | $7,754 | $10,201 | $8,700 |
| 10/17 | $8,565 | $12,568 | $9,410 |
| 10/18 | $8,470 | $12,503 | $9,526 |
| 10/19 | $8,722 | $14,078 | $9,940 |
| 10/20 | $7,841 | $14,766 | $8,023 |
| 10/21 | $11,392 | $20,270 | $12,134 |
| 10/22 | $10,594 | $16,225 | $12,169 |
| 10/23 | $10,449 | $17,929 | $11,980 |
| 10/24 | $12,168 | $23,808 | $13,383 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 16.46% | 6.89% | 2.43% |
| Class A (with sales charges) | 11.51% | 5.97% | 1.98% |
| MSCI ACWI (net) | 32.79% | 11.08% | 9.06% |
| 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed | 11.71% | 6.13% | 2.96% |
The addition of the MSCI ACWI (net) broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/AMTAX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $695,947,263 |
| # of Portfolio Holdings | 370 |
| Portfolio Turnover Rate | 90% |
| Total Advisory Fees Paid | $5,292,478 |
Graphical Representation of Holdings
| Company | U.S. $ Value | % of Net Assets |
|---|
| Prologis, Inc. | $14,957,886 | 2.2% |
| Equinix, Inc. | $14,456,634 | 2.1% |
| Shell PLC | $10,399,486 | 1.5% |
| Exxon Mobil Corp. | $10,320,783 | 1.5% |
| Welltower, Inc. | $9,897,494 | 1.4% |
| Digital Realty Trust, Inc. | $9,305,388 | 1.3% |
| Simon Property Group, Inc. | $8,562,884 | 1.2% |
| Ventas, Inc. | $8,272,042 | 1.2% |
| Public Storage | $7,844,790 | 1.1% |
| VICI Properties, Inc. | $7,511,113 | 1.1% |
| Total | $101,528,500 | 14.6% |
| Asset Type | Value |
|---|
| Real Estate Stocks | 35.0% |
| Commodity Related Derivatives. | 32.0% |
| Inflation Sensitive Stocks | 17.0% |
| Commodity Related Stocks | 16.0% |
| |
|---|
| Common Stocks | 71.3% |
| Investment Companies | 2.0% |
| Short-Term Investments | 24.6% |
| Other assets less liabilities | 2.1% |
| Value | Value |
|---|
| United States | 45.7% |
| United Kingdom | 4.5% |
| Japan | 4.1% |
| Australia | 3.9% |
| Canada | 3.0% |
| France | 1.8% |
| Italy | 1.4% |
| Singapore | 1.4% |
| Germany | 1.0% |
| Hong Kong | 0.9% |
| Sweden | 0.9% |
| Switzerland | 0.8% |
| China | 0.7% |
| Others | 3.9% |
| Short-Term Investments | 23.9% |
| Other assets less liabilities | 2.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/AMTAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/AMTAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Real Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Real Return Portfolio (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ACMTX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $210 | 1.95% |
How did the Fund perform last year? What affected the Fund’s performance?
Entering 2024, investors focused on the pace at which inflation would normalize. Despite a slow start in reducing inflationary concerns, economic growth across major economies was more resilient and broad-based than expected. This led to increased optimism about the economic outlook and strong equity performance. Real Estate, a notable rate-sensitive asset class, tends to outperform in falling rate environments and underperform in rising rate environments. For the AB All Market Real Return Portfolio, our strategic allocation to Real Estate was a significant contributor, especially in the third quarter following the US Federal Reserve's first rate cut in September. Similarly, the Portfolio's exposure to inflation-sensitive equities contributed, driven by the broad-based equity market rally in 2024. However, our modest tactical underweights to Real Estate and commodity producers detracted from relative performance. The AB All Market Real Return Portfolio allocates to various inflation-sensitive asset classes, including real estate, commodity producers, commodity futures, FX, inflation-sensitive equities and future natural resource equities. From a security selection standpoint, the Portfolio benefited from positive selection within Real Estate but was hurt by negative selection within future natural resource equities.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class C | MSCI ACWI (net) | 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $7,825 | $9,997 | $8,367 |
| 10/16 | $7,977 | $10,201 | $8,700 |
| 10/17 | $8,754 | $12,568 | $9,410 |
| 10/18 | $8,595 | $12,503 | $9,526 |
| 10/19 | $8,781 | $14,078 | $9,940 |
| 10/20 | $7,829 | $14,766 | $8,023 |
| 10/21 | $11,306 | $20,270 | $12,134 |
| 10/22 | $10,434 | $16,225 | $12,169 |
| 10/23 | $10,209 | $17,929 | $11,980 |
| 10/24 | $11,808 | $23,808 | $13,383 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 15.66% | 6.10% | 1.68% |
| Class C (with sales charges) | 14.66% | 6.10% | 1.68% |
| MSCI ACWI (net) | 32.79% | 11.08% | 9.06% |
| 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed | 11.71% | 6.13% | 2.96% |
The addition of the MSCI ACWI (net) broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ACMTX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $695,947,263 |
| # of Portfolio Holdings | 370 |
| Portfolio Turnover Rate | 90% |
| Total Advisory Fees Paid | $5,292,478 |
Graphical Representation of Holdings
| Company | U.S. $ Value | % of Net Assets |
|---|
| Prologis, Inc. | $14,957,886 | 2.2% |
| Equinix, Inc. | $14,456,634 | 2.1% |
| Shell PLC | $10,399,486 | 1.5% |
| Exxon Mobil Corp. | $10,320,783 | 1.5% |
| Welltower, Inc. | $9,897,494 | 1.4% |
| Digital Realty Trust, Inc. | $9,305,388 | 1.3% |
| Simon Property Group, Inc. | $8,562,884 | 1.2% |
| Ventas, Inc. | $8,272,042 | 1.2% |
| Public Storage | $7,844,790 | 1.1% |
| VICI Properties, Inc. | $7,511,113 | 1.1% |
| Total | $101,528,500 | 14.6% |
| Asset Type | Value |
|---|
| Real Estate Stocks | 35.0% |
| Commodity Related Derivatives. | 32.0% |
| Inflation Sensitive Stocks | 17.0% |
| Commodity Related Stocks | 16.0% |
| |
|---|
| Common Stocks | 71.3% |
| Investment Companies | 2.0% |
| Short-Term Investments | 24.6% |
| Other assets less liabilities | 2.1% |
| Value | Value |
|---|
| United States | 45.7% |
| United Kingdom | 4.5% |
| Japan | 4.1% |
| Australia | 3.9% |
| Canada | 3.0% |
| France | 1.8% |
| Italy | 1.4% |
| Singapore | 1.4% |
| Germany | 1.0% |
| Hong Kong | 0.9% |
| Sweden | 0.9% |
| Switzerland | 0.8% |
| China | 0.7% |
| Others | 3.9% |
| Short-Term Investments | 23.9% |
| Other assets less liabilities | 2.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ACMTX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ACMTX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Real Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Real Return Portfolio (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/AMTZX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Z | $91 | 0.84% |
How did the Fund perform last year? What affected the Fund’s performance?
Entering 2024, investors focused on the pace at which inflation would normalize. Despite a slow start in reducing inflationary concerns, economic growth across major economies was more resilient and broad-based than expected. This led to increased optimism about the economic outlook and strong equity performance. Real Estate, a notable rate-sensitive asset class, tends to outperform in falling rate environments and underperform in rising rate environments. For the AB All Market Real Return Portfolio, our strategic allocation to Real Estate was a significant contributor, especially in the third quarter following the US Federal Reserve's first rate cut in September. Similarly, the Portfolio's exposure to inflation-sensitive equities contributed, driven by the broad-based equity market rally in 2024. However, our modest tactical underweights to Real Estate and commodity producers detracted from relative performance. The AB All Market Real Return Portfolio allocates to various inflation-sensitive asset classes, including real estate, commodity producers, commodity futures, FX, inflation-sensitive equities and future natural resource equities. From a security selection standpoint, the Portfolio benefited from positive selection within Real Estate but was hurt by negative selection within future natural resource equities.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class Z | MSCI ACWI (net) | 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed |
|---|
| 10/14 | $10,019 | $10,000 | $10,000 |
| 10/15 | $7,921 | $9,997 | $8,367 |
| 10/16 | $8,166 | $10,201 | $8,700 |
| 10/17 | $9,063 | $12,568 | $9,410 |
| 10/18 | $9,001 | $12,503 | $9,526 |
| 10/19 | $9,305 | $14,078 | $9,940 |
| 10/20 | $8,398 | $14,766 | $8,023 |
| 10/21 | $12,274 | $20,270 | $12,134 |
| 10/22 | $11,460 | $16,225 | $12,169 |
| 10/23 | $11,336 | $17,929 | $11,980 |
| 10/24 | $13,234 | $23,808 | $13,383 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class Z | 16.96% | 7.34% | 2.84% |
| MSCI ACWI (net) | 32.79% | 11.08% | 9.06% |
| 33% Bloomberg Commodity/33% MSCI ACWI Commodity Producers/33% FTSE EPRA/NAREIT Developed | 11.71% | 6.13% | 2.96% |
The addition of the MSCI ACWI (net) broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/AMTZX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $695,947,263 |
| # of Portfolio Holdings | 370 |
| Portfolio Turnover Rate | 90% |
| Total Advisory Fees Paid | $5,292,478 |
Graphical Representation of Holdings
| Company | U.S. $ Value | % of Net Assets |
|---|
| Prologis, Inc. | $14,957,886 | 2.2% |
| Equinix, Inc. | $14,456,634 | 2.1% |
| Shell PLC | $10,399,486 | 1.5% |
| Exxon Mobil Corp. | $10,320,783 | 1.5% |
| Welltower, Inc. | $9,897,494 | 1.4% |
| Digital Realty Trust, Inc. | $9,305,388 | 1.3% |
| Simon Property Group, Inc. | $8,562,884 | 1.2% |
| Ventas, Inc. | $8,272,042 | 1.2% |
| Public Storage | $7,844,790 | 1.1% |
| VICI Properties, Inc. | $7,511,113 | 1.1% |
| Total | $101,528,500 | 14.6% |
| Asset Type | Value |
|---|
| Real Estate Stocks | 35.0% |
| Commodity Related Derivatives. | 32.0% |
| Inflation Sensitive Stocks | 17.0% |
| Commodity Related Stocks | 16.0% |
| |
|---|
| Common Stocks | 71.3% |
| Investment Companies | 2.0% |
| Short-Term Investments | 24.6% |
| Other assets less liabilities | 2.1% |
| Value | Value |
|---|
| United States | 45.7% |
| United Kingdom | 4.5% |
| Japan | 4.1% |
| Australia | 3.9% |
| Canada | 3.0% |
| France | 1.8% |
| Italy | 1.4% |
| Singapore | 1.4% |
| Germany | 1.0% |
| Hong Kong | 0.9% |
| Sweden | 0.9% |
| Switzerland | 0.8% |
| China | 0.7% |
| Others | 3.9% |
| Short-Term Investments | 23.9% |
| Other assets less liabilities | 2.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/AMTZX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/AMTZX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABNYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $62 | 0.59% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Advisor Class | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,810 | $10,196 | $9,876 |
| 10/16 | $10,484 | $10,641 | $10,337 |
| 10/17 | $10,605 | $10,737 | $10,352 |
| 10/18 | $10,533 | $10,517 | $10,289 |
| 10/19 | $11,292 | $11,727 | $10,996 |
| 10/20 | $12,187 | $12,453 | $11,766 |
| 10/21 | $13,160 | $12,393 | $12,595 |
| 10/22 | $12,012 | $10,450 | $11,690 |
| 10/23 | $12,244 | $10,487 | $11,794 |
| 10/24 | $13,300 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class | 8.63% | 3.33% | 2.89% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABNYX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABNYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABNYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABNOX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class 1 | $72 | 0.69% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class 1 | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,796 | $10,196 | $9,876 |
| 10/16 | $10,471 | $10,641 | $10,337 |
| 10/17 | $10,577 | $10,737 | $10,352 |
| 10/18 | $10,485 | $10,517 | $10,289 |
| 10/19 | $11,238 | $11,727 | $10,996 |
| 10/20 | $12,119 | $12,453 | $11,766 |
| 10/21 | $13,061 | $12,393 | $12,595 |
| 10/22 | $11,917 | $10,450 | $11,690 |
| 10/23 | $12,137 | $10,487 | $11,794 |
| 10/24 | $13,173 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class 1 | 8.53% | 3.23% | 2.79% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABNOX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABNOX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABNOX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ABNTX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class 2 | $62 | 0.59% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class 2 | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,805 | $10,196 | $9,876 |
| 10/16 | $10,483 | $10,641 | $10,337 |
| 10/17 | $10,609 | $10,737 | $10,352 |
| 10/18 | $10,527 | $10,517 | $10,289 |
| 10/19 | $11,284 | $11,727 | $10,996 |
| 10/20 | $12,182 | $12,453 | $11,766 |
| 10/21 | $13,154 | $12,393 | $12,595 |
| 10/22 | $12,001 | $10,450 | $11,690 |
| 10/23 | $12,234 | $10,487 | $11,794 |
| 10/24 | $13,305 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class 2 | 8.75% | 3.35% | 2.90% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ABNTX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ABNTX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ABNTX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ABNAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $88 | 0.84% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class A (with sales charges) | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $9,773 | $10,000 | $10,000 |
| 10/15 | $9,560 | $10,196 | $9,876 |
| 10/16 | $10,194 | $10,641 | $10,337 |
| 10/17 | $10,286 | $10,737 | $10,352 |
| 10/18 | $10,184 | $10,517 | $10,289 |
| 10/19 | $10,897 | $11,727 | $10,996 |
| 10/20 | $11,730 | $12,453 | $11,766 |
| 10/21 | $12,625 | $12,393 | $12,595 |
| 10/22 | $11,498 | $10,450 | $11,690 |
| 10/23 | $11,693 | $10,487 | $11,794 |
| 10/24 | $12,683 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 8.46% | 3.08% | 2.64% |
| Class A (with sales charges) | 6.03% | 2.62% | 2.41% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ABNAX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ABNAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ABNAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ABNCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $165 | 1.59% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class C | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,707 | $10,196 | $9,876 |
| 10/16 | $10,276 | $10,641 | $10,337 |
| 10/17 | $10,293 | $10,737 | $10,352 |
| 10/18 | $10,110 | $10,517 | $10,289 |
| 10/19 | $10,735 | $11,727 | $10,996 |
| 10/20 | $11,479 | $12,453 | $11,766 |
| 10/21 | $12,267 | $12,393 | $12,595 |
| 10/22 | $11,091 | $10,450 | $11,690 |
| 10/23 | $11,186 | $10,487 | $11,794 |
| 10/24 | $12,040 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 7.64% | 2.32% | 1.87% |
| Class C (with sales charges) | 6.64% | 2.32% | 1.87% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ABNCX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ABNCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ABNCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ANBIX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $62 | 0.59% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class I | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,812 | $10,196 | $9,876 |
| 10/16 | $10,497 | $10,641 | $10,337 |
| 10/17 | $10,617 | $10,737 | $10,352 |
| 10/18 | $10,539 | $10,517 | $10,289 |
| 10/19 | $11,301 | $11,727 | $10,996 |
| 10/20 | $12,201 | $12,453 | $11,766 |
| 10/21 | $13,163 | $12,393 | $12,595 |
| 10/22 | $12,022 | $10,450 | $11,690 |
| 10/23 | $12,248 | $10,487 | $11,794 |
| 10/24 | $13,319 | $11,593 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 8.74% | 3.34% | 2.91% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ANBIX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ANBIX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ANBIX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Bond Inflation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ABNZX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Z | $62 | 0.59% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes except Class C outperformed the Bloomberg US 1-10 Year Treasury Inflation-Protected Securities ("TIPS") Index (the “benchmark”), before sales charges. Sector allocation was the largest contributor relative to the benchmark, from allocation to investment-grade corporate bonds, asset-backed securities, agency risk-sharing transactions and high-yield corporate bonds. Overall positioning in US TIPS contributed, as positioning in six-month TIPS added more than losses from positioning in two- and five-year TIPS. Yield-curve positioning detracted from performance, as positioning on the six-month and 10-year parts of the yield-curve outweighed gains from the five-year part of the curve. Currency decisions did not affect results.
During the 12-month period, the Fund used currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were used to hedge inflation and for investment purposes. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance::
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class Z | Bloomberg U.S. Aggregate Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 12/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,914 | $10,134 | $9,953 |
| 10/16 | $10,597 | $10,577 | $10,418 |
| 10/17 | $10,723 | $10,672 | $10,433 |
| 10/18 | $10,640 | $10,453 | $10,369 |
| 10/19 | $11,413 | $11,656 | $11,081 |
| 10/20 | $12,317 | $12,378 | $11,858 |
| 10/21 | $13,295 | $12,318 | $12,693 |
| 10/22 | $12,144 | $10,387 | $11,782 |
| 10/23 | $12,366 | $10,424 | $11,886 |
| 10/24 | $13,443 | $11,523 | $12,801 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | Since Inception 12/11/14 |
|---|
| Class Z | 8.71% | 3.33% | 3.04% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.44% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.53% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ABNZX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $646,673,170 |
| # of Portfolio Holdings | 284 |
| Portfolio Turnover Rate | 50% |
| Total Advisory Fees Paid | $2,068,717 |
Graphical Representation of Holdings
Inflation Protection Breakdown
| U.S. Inflation - Protected Exposure | 73.1% |
| Non-Inflation Exposure | 26.9% |
| Total | 100.0% |
| Value | Value |
|---|
| Inflation-Linked Securities | 73.1% |
| Corporates - Investment Grade | 12.2% |
| Asset-Backed Securities | 6.0% |
| Collateralized Mortgage Obligations | 4.9% |
| Short-Term Investments | 2.5% |
| Commercial Mortgage-Backed Securities | 1.3% |
| Mortgage Pass-Throughs | 0.8% |
| Corporates - Non-Investment Grade | 0.6% |
| Emerging Markets - Corporate Bonds | 0.5% |
| Collateralized Loan Obligations | 0.7% |
| Other | 0.7% |
| Other Assets and Liabilities | -3.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ABNZX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ABNZX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Income Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ACGYX-A. You can also request this information by contacting us at (800) 227 4618.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $58 | 0.55% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes outperformed the Bloomberg U.S. Aggregate Bond Index (“the benchmark”), before sales charges. Over the period, sector allocation contributed the most to relative performance because of off-benchmark exposure to US high-yield and emerging-market corporate bonds, collateralized loan obligations and emerging-market sovereign bonds, which outweighed losses from an underweight to US investment-grade corporates and an overweight to US Treasuries. Security selection also contributed, as selections within US investment-grade corporates and quasi-sovereign bonds added more to performance than a loss from selection in US agency mortgage-backed securities. Yield-curve positioning contributed, from an overweight to the six-month part of the US Treasury curve that added more to performance than losses from an overweight to the two-year and an underweight to the 20-year parts of the curve. Country allocation and currency decisions did not have an impact on performance.
During the 12-month period, the Fund used derivatives in the form of interest rate futures to manage and hedge duration risk and/or take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were also utilized to effectively obtain high-yield credit/sector exposure. Interest rate swaps were used to manage and hedge duration risk and/or take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain exposure to inflation protection. Purchased options and written options were purchased as part of put spread for downside protection (hedging).
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Advisor Class | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $10,000 | $10,000 |
| 10/15 | $10,306 | $10,196 |
| 10/16 | $10,827 | $10,641 |
| 10/17 | $11,417 | $10,737 |
| 10/18 | $11,136 | $10,517 |
| 10/19 | $12,445 | $11,727 |
| 10/20 | $12,876 | $12,453 |
| 10/21 | $13,271 | $12,393 |
| 10/22 | $10,803 | $10,450 |
| 10/23 | $11,021 | $10,487 |
| 10/24 | $12,380 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class | 12.33% | -0.10% | 2.16% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ACGYX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $2,513,692,503 |
| # of Portfolio Holdings | 650 |
| Portfolio Turnover Rate | 278% |
| Total Advisory Fees Paid | $10,303,786 |
Graphical Representation of Holdings
| |
|---|
| Governments - Treasuries | 46.7% |
| Mortgage Pass-Throughs | 28.2% |
| Corporates - Investment Grade | 16.0% |
| Corporates - Non-Investment Grade | 9.6% |
| Collateralized Loan Obligations | 5.0% |
| Emerging Markets - Corporate Bonds | 2.9% |
| Emerging Markets - Sovereigns | 2.2% |
| Asset-Backed Securities | 2.1% |
| Collateralized Mortgage Obligations | 1.7% |
| Other | 6.2% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
| Value | Value |
|---|
| United States | 101.8% |
| Brazil | 3.0% |
| United Kingdom | 1.9% |
| Dominican Republic | 1.5% |
| Mexico | 1.4% |
| France | 1.1% |
| China | 0.7% |
| India | 0.7% |
| Spain | 0.7% |
| South Africa | 0.6% |
| Chile | 0.6% |
| Indonesia | 0.6% |
| Colombia | 0.5% |
| Israel | 0.5% |
| Others | 5.0% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
This is a summary of certain changes to the Fund during the reporting period. For more complete information, you may review the Fund’s prospectus supplement dated May 10, 2024, supplementing the prospectus dated January 31, 2024, at www.abfunds.com/go/prospectus, or you may request a copy of the supplement by sending an email to prorequest@alliancebernstein.com or by calling (800) 227-4618.
Effective May 10, 2024, the Fund no longer utilizes reverse repurchase agreements as a principal strategy. In connection with this change and to better reflect the expenses associated with the Fund’s current usage of reverse repurchase agreements, the Fund restated its Annual Fund Operating Expense table set forth in its Summary Prospectus and Prospectus in respect of Advisor Class Shares to: (i) reduce its interest expense to .03% from 1.04%; (ii) reduce its Total Annual Fund Operating Expenses to .61% from 1.61%; and (iii) reduce its Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement to .55% from 1.55%.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ACGYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ACGYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Income Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AKGAX-A. You can also request this information by contacting us at (800) 227 4618.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $85 | 0.80% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes outperformed the Bloomberg U.S. Aggregate Bond Index (“the benchmark”), before sales charges. Over the period, sector allocation contributed the most to relative performance because of off-benchmark exposure to US high-yield and emerging-market corporate bonds, collateralized loan obligations and emerging-market sovereign bonds, which outweighed losses from an underweight to US investment-grade corporates and an overweight to US Treasuries. Security selection also contributed, as selections within US investment-grade corporates and quasi-sovereign bonds added more to performance than a loss from selection in US agency mortgage-backed securities. Yield-curve positioning contributed, from an overweight to the six-month part of the US Treasury curve that added more to performance than losses from an overweight to the two-year and an underweight to the 20-year parts of the curve. Country allocation and currency decisions did not have an impact on performance.
During the 12-month period, the Fund used derivatives in the form of interest rate futures to manage and hedge duration risk and/or take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were also utilized to effectively obtain high-yield credit/sector exposure. Interest rate swaps were used to manage and hedge duration risk and/or take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain exposure to inflation protection. Purchased options and written options were purchased as part of put spread for downside protection (hedging).
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class A (with sales charges) | Bloomberg U.S. Aggregate Bond Index |
|---|
| 04/16 | $9,580 | $10,000 |
| 10/16 | $9,881 | $10,186 |
| 10/17 | $10,392 | $10,278 |
| 10/18 | $10,111 | $10,067 |
| 10/19 | $11,273 | $11,226 |
| 10/20 | $11,637 | $11,920 |
| 10/21 | $11,963 | $11,863 |
| 10/22 | $9,711 | $10,003 |
| 10/23 | $9,882 | $10,038 |
| 10/24 | $11,092 | $11,097 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | Since Inception 04/22/16 |
|---|
| Class A (without sales charges) | 12.24% | -0.32% | 1.73% |
| Class A (with sales charges) | 7.41% | -1.18% | 1.22% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.23% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AKGAX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $2,513,692,503 |
| # of Portfolio Holdings | 650 |
| Portfolio Turnover Rate | 278% |
| Total Advisory Fees Paid | $10,303,786 |
Graphical Representation of Holdings
| |
|---|
| Governments - Treasuries | 46.7% |
| Mortgage Pass-Throughs | 28.2% |
| Corporates - Investment Grade | 16.0% |
| Corporates - Non-Investment Grade | 9.6% |
| Collateralized Loan Obligations | 5.0% |
| Emerging Markets - Corporate Bonds | 2.9% |
| Emerging Markets - Sovereigns | 2.2% |
| Asset-Backed Securities | 2.1% |
| Collateralized Mortgage Obligations | 1.7% |
| Other | 6.2% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
| Value | Value |
|---|
| United States | 101.8% |
| Brazil | 3.0% |
| United Kingdom | 1.9% |
| Dominican Republic | 1.5% |
| Mexico | 1.4% |
| France | 1.1% |
| China | 0.7% |
| India | 0.7% |
| Spain | 0.7% |
| South Africa | 0.6% |
| Chile | 0.6% |
| Indonesia | 0.6% |
| Colombia | 0.5% |
| Israel | 0.5% |
| Others | 5.0% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
This is a summary of certain changes to the Fund during the reporting period. For more complete information, you may review the Fund’s prospectus supplement dated May 10, 2024, supplementing the prospectus dated January 31, 2024, at www.abfunds.com/go/prospectus, or you may request a copy of the supplement by sending an email to prorequest@alliancebernstein.com or by calling (800) 227-4618.
Effective May 10, 2024, the Fund no longer utilizes reverse repurchase agreements as a principal strategy. In connection with this change and to better reflect the expenses associated with the Fund’s current usage of reverse repurchase agreements, the Fund restated its Annual Fund Operating Expense table set forth in its Summary Prospectus and Prospectus in respect of Class A shares to: (i) reduce interest expense to .03% from 1.04%; (ii) reduce Total Annual Fund Operating Expenses to .86% from 1.86%; and (iii) reduce Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement to .80% from 1.81%.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AKGAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AKGAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Income Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AKGCX-A. You can also request this information by contacting us at (800) 227 4618.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $164 | 1.55% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes outperformed the Bloomberg U.S. Aggregate Bond Index (“the benchmark”), before sales charges. Over the period, sector allocation contributed the most to relative performance because of off-benchmark exposure to US high-yield and emerging-market corporate bonds, collateralized loan obligations and emerging-market sovereign bonds, which outweighed losses from an underweight to US investment-grade corporates and an overweight to US Treasuries. Security selection also contributed, as selections within US investment-grade corporates and quasi-sovereign bonds added more to performance than a loss from selection in US agency mortgage-backed securities. Yield-curve positioning contributed, from an overweight to the six-month part of the US Treasury curve that added more to performance than losses from an overweight to the two-year and an underweight to the 20-year parts of the curve. Country allocation and currency decisions did not have an impact on performance.
During the 12-month period, the Fund used derivatives in the form of interest rate futures to manage and hedge duration risk and/or take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were also utilized to effectively obtain high-yield credit/sector exposure. Interest rate swaps were used to manage and hedge duration risk and/or take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain exposure to inflation protection. Purchased options and written options were purchased as part of put spread for downside protection (hedging).
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class C | Bloomberg U.S. Aggregate Bond Index |
|---|
| 04/16 | $10,000 | $10,000 |
| 10/16 | $10,285 | $10,186 |
| 10/17 | $10,734 | $10,278 |
| 10/18 | $10,366 | $10,067 |
| 10/19 | $11,470 | $11,226 |
| 10/20 | $11,759 | $11,920 |
| 10/21 | $11,990 | $11,863 |
| 10/22 | $9,662 | $10,003 |
| 10/23 | $9,759 | $10,038 |
| 10/24 | $10,870 | $11,097 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | Since Inception 04/22/16 |
|---|
| Class C (without sales charges) | 11.38% | -1.07% | 0.98% |
| Class C (with sales charges) | 10.38% | -1.07% | 0.98% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.23% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AKGCX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $2,513,692,503 |
| # of Portfolio Holdings | 650 |
| Portfolio Turnover Rate | 278% |
| Total Advisory Fees Paid | $10,303,786 |
Graphical Representation of Holdings
| |
|---|
| Governments - Treasuries | 46.7% |
| Mortgage Pass-Throughs | 28.2% |
| Corporates - Investment Grade | 16.0% |
| Corporates - Non-Investment Grade | 9.6% |
| Collateralized Loan Obligations | 5.0% |
| Emerging Markets - Corporate Bonds | 2.9% |
| Emerging Markets - Sovereigns | 2.2% |
| Asset-Backed Securities | 2.1% |
| Collateralized Mortgage Obligations | 1.7% |
| Other | 6.2% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
| Value | Value |
|---|
| United States | 101.8% |
| Brazil | 3.0% |
| United Kingdom | 1.9% |
| Dominican Republic | 1.5% |
| Mexico | 1.4% |
| France | 1.1% |
| China | 0.7% |
| India | 0.7% |
| Spain | 0.7% |
| South Africa | 0.6% |
| Chile | 0.6% |
| Indonesia | 0.6% |
| Colombia | 0.5% |
| Israel | 0.5% |
| Others | 5.0% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
This is a summary of certain changes to the Fund during the reporting period. For more complete information, you may review the Fund’s prospectus supplement dated May 10, 2024, supplementing the prospectus dated January 31, 2024, at www.abfunds.com/go/prospectus, or you may request a copy of the supplement by sending an email to prorequest@alliancebernstein.com or by calling (800) 227-4618.
Effective May 10, 2024, the Fund no longer utilizes reverse repurchase agreements as a principal strategy. In connection with this change and to better reflect the expenses associated with the Fund’s current usage of reverse repurchase agreements, the Fund restated its Annual Fund Operating Expense table set forth in its Summary Prospectus and Prospectus in respect of Class C shares to: (i) reduce interest expense to .03% from 1.03%; (ii) reduce Total Annual Fund Operating Expenses to 1.61% from 2.60%; and (iii) reduce Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement to 1.55% from 2.54%.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AKGCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AKGCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Income Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ACGZX-A. You can also request this information by contacting us at (800) 227 4618.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Z | $57 | 0.54% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period, all share classes outperformed the Bloomberg U.S. Aggregate Bond Index (“the benchmark”), before sales charges. Over the period, sector allocation contributed the most to relative performance because of off-benchmark exposure to US high-yield and emerging-market corporate bonds, collateralized loan obligations and emerging-market sovereign bonds, which outweighed losses from an underweight to US investment-grade corporates and an overweight to US Treasuries. Security selection also contributed, as selections within US investment-grade corporates and quasi-sovereign bonds added more to performance than a loss from selection in US agency mortgage-backed securities. Yield-curve positioning contributed, from an overweight to the six-month part of the US Treasury curve that added more to performance than losses from an overweight to the two-year and an underweight to the 20-year parts of the curve. Country allocation and currency decisions did not have an impact on performance.
During the 12-month period, the Fund used derivatives in the form of interest rate futures to manage and hedge duration risk and/or take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swaps were also utilized to effectively obtain high-yield credit/sector exposure. Interest rate swaps were used to manage and hedge duration risk and/or take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain exposure to inflation protection. Purchased options and written options were purchased as part of put spread for downside protection (hedging).
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class Z | Bloomberg U.S. Aggregate Bond Index |
|---|
| 11/19 | $10,000 | $10,000 |
| 10/20 | $10,354 | $10,626 |
| 10/21 | $10,678 | $10,575 |
| 10/22 | $8,695 | $8,917 |
| 10/23 | $8,871 | $8,948 |
| 10/24 | $9,980 | $9,892 |
Average Annual Total Returns
| AATR | 1 Year | Since Inception 11/20/19 |
|---|
| Class Z | 12.51% | -0.04% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.22% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ACGZX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $2,513,692,503 |
| # of Portfolio Holdings | 650 |
| Portfolio Turnover Rate | 278% |
| Total Advisory Fees Paid | $10,303,786 |
Graphical Representation of Holdings
| |
|---|
| Governments - Treasuries | 46.7% |
| Mortgage Pass-Throughs | 28.2% |
| Corporates - Investment Grade | 16.0% |
| Corporates - Non-Investment Grade | 9.6% |
| Collateralized Loan Obligations | 5.0% |
| Emerging Markets - Corporate Bonds | 2.9% |
| Emerging Markets - Sovereigns | 2.2% |
| Asset-Backed Securities | 2.1% |
| Collateralized Mortgage Obligations | 1.7% |
| Other | 6.2% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
| Value | Value |
|---|
| United States | 101.8% |
| Brazil | 3.0% |
| United Kingdom | 1.9% |
| Dominican Republic | 1.5% |
| Mexico | 1.4% |
| France | 1.1% |
| China | 0.7% |
| India | 0.7% |
| Spain | 0.7% |
| South Africa | 0.6% |
| Chile | 0.6% |
| Indonesia | 0.6% |
| Colombia | 0.5% |
| Israel | 0.5% |
| Others | 5.0% |
| Short-Term Investments | 0.4% |
| Other assets less liabilities | -21.0% |
This is a summary of certain changes to the Fund during the reporting period. For more complete information, you may review the Fund’s prospectus supplement dated May 10, 2024, supplementing the prospectus dated January 31, 2024, at www.abfunds.com/go/prospectus, or you may request a copy of the supplement by sending an email to prorequest@alliancebernstein.com or by calling (800) 227-4618.
Effective May 10, 2024, the Fund no longer utilizes reverse repurchase agreements as a principal strategy. In connection with this change and to better reflect the expenses associated with the Fund’s current usage of reverse repurchase agreements, the Fund restated its Annual Fund Operating Expense table set forth in its Summary Prospectus and Prospectus in respect of Class Z shares to: (i) reduce interest expense to .03% from 1.04%; (ii) reduce Total Annual Fund Operating Expenses to .55% from 1.55%; and (iii) reduce Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement to .54% from 1.55%.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ACGZX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ACGZX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Bond Inflation Strategy
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Municipal Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AUNYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $52 | 0.50% |
How did the Fund perform last year? What affected the Fund’s performance?
For the 12-month period, all share classes of the Fund underperformed the Bloomberg US TIPS 1-10 Year Index (the “benchmark”), before sales charges. Yield-curve positioning primarily detracted from performance, relative to the benchmark. Municipal credit and overweights to housing, transportation and health care offset losses from state general obligation and industrial revenue.
During the 12-month period, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes. Inflation swaps were used for hedging purposes, which detracted from absolute returns. Interest rate swaps were utilized for hedging purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Advisor Class | Bloomberg Municipal Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,843 | $10,287 | $9,876 |
| 10/16 | $10,212 | $10,704 | $10,337 |
| 10/17 | $10,415 | $10,939 | $10,352 |
| 10/18 | $10,398 | $10,883 | $10,289 |
| 10/19 | $10,893 | $11,908 | $10,996 |
| 10/20 | $11,240 | $12,336 | $11,766 |
| 10/21 | $12,268 | $12,661 | $12,595 |
| 10/22 | $11,553 | $11,144 | $11,690 |
| 10/23 | $11,883 | $11,439 | $11,794 |
| 10/24 | $12,781 | $12,548 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class | 7.56% | 3.25% | 2.48% |
| Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg Municipal Bond Index Unhedged broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AUNYX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $1,433,425,721 |
| # of Portfolio Holdings | 525 |
| Portfolio Turnover Rate | 25% |
| Total Advisory Fees Paid | $6,445,958 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
| Value | Value |
|---|
| AAA | 8.8% |
| AA | 41.5% |
| A | 32.9% |
| BBB | 5.4% |
| BB | 1.8% |
| A-1+ | 1.1% |
| A-1 | 1.2% |
| SP-1 | 1.5% |
| SP-2 | 0.3% |
| Not Rated | 5.5% |
*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 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 used 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 Alliance Bernstein L.P. (the “Adviser”). If applicable, Not Applicable (N/A) includes non-credit worthy investments such as, 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.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AUNYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AUNYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Bond Inflation Strategy
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Municipal Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AUNOX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class 1 | $62 | 0.60% |
How did the Fund perform last year? What affected the Fund’s performance?
For the 12-month period, all share classes of the Fund underperformed the Bloomberg US TIPS 1-10 Year Index (the “benchmark”), before sales charges. Yield-curve positioning primarily detracted from performance, relative to the benchmark. Municipal credit and overweights to housing, transportation and health care offset losses from state general obligation and industrial revenue.
During the 12-month period, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes. Inflation swaps were used for hedging purposes, which detracted from absolute returns. Interest rate swaps were utilized for hedging purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class 1 | Bloomberg Municipal Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,838 | $10,287 | $9,876 |
| 10/16 | $10,190 | $10,704 | $10,337 |
| 10/17 | $10,387 | $10,939 | $10,352 |
| 10/18 | $10,354 | $10,883 | $10,289 |
| 10/19 | $10,843 | $11,908 | $10,996 |
| 10/20 | $11,173 | $12,336 | $11,766 |
| 10/21 | $12,180 | $12,661 | $12,595 |
| 10/22 | $11,458 | $11,144 | $11,690 |
| 10/23 | $11,768 | $11,439 | $11,794 |
| 10/24 | $12,651 | $12,548 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class 1 | 7.51% | 3.13% | 2.38% |
| Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg Municipal Bond Index Unhedged broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AUNOX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $1,433,425,721 |
| # of Portfolio Holdings | 525 |
| Portfolio Turnover Rate | 25% |
| Total Advisory Fees Paid | $6,445,958 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
| Value | Value |
|---|
| AAA | 8.8% |
| AA | 41.5% |
| A | 32.9% |
| BBB | 5.4% |
| BB | 1.8% |
| A-1+ | 1.1% |
| A-1 | 1.2% |
| SP-1 | 1.5% |
| SP-2 | 0.3% |
| Not Rated | 5.5% |
*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 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 used 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 Alliance Bernstein L.P. (the “Adviser”). If applicable, Not Applicable (N/A) includes non-credit worthy investments such as, 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.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AUNOX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AUNOX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Bond Inflation Strategy
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Municipal Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AUNTX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class 2 | $52 | 0.50% |
How did the Fund perform last year? What affected the Fund’s performance?
For the 12-month period, all share classes of the Fund underperformed the Bloomberg US TIPS 1-10 Year Index (the “benchmark”), before sales charges. Yield-curve positioning primarily detracted from performance, relative to the benchmark. Municipal credit and overweights to housing, transportation and health care offset losses from state general obligation and industrial revenue.
During the 12-month period, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes. Inflation swaps were used for hedging purposes, which detracted from absolute returns. Interest rate swaps were utilized for hedging purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class 2 | Bloomberg Municipal Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,848 | $10,287 | $9,876 |
| 10/16 | $10,201 | $10,704 | $10,337 |
| 10/17 | $10,408 | $10,939 | $10,352 |
| 10/18 | $10,395 | $10,883 | $10,289 |
| 10/19 | $10,887 | $11,908 | $10,996 |
| 10/20 | $11,229 | $12,336 | $11,766 |
| 10/21 | $12,263 | $12,661 | $12,595 |
| 10/22 | $11,549 | $11,144 | $11,690 |
| 10/23 | $11,873 | $11,439 | $11,794 |
| 10/24 | $12,776 | $12,548 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class 2 | 7.51% | 3.25% | 2.48% |
| Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg Municipal Bond Index Unhedged broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AUNTX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $1,433,425,721 |
| # of Portfolio Holdings | 525 |
| Portfolio Turnover Rate | 25% |
| Total Advisory Fees Paid | $6,445,958 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
| Value | Value |
|---|
| AAA | 8.8% |
| AA | 41.5% |
| A | 32.9% |
| BBB | 5.4% |
| BB | 1.8% |
| A-1+ | 1.1% |
| A-1 | 1.2% |
| SP-1 | 1.5% |
| SP-2 | 0.3% |
| Not Rated | 5.5% |
*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 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 used 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 Alliance Bernstein L.P. (the “Adviser”). If applicable, Not Applicable (N/A) includes non-credit worthy investments such as, 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.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AUNTX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AUNTX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Bond Inflation Strategy
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Municipal Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AUNAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $78 | 0.75% |
How did the Fund perform last year? What affected the Fund’s performance?
For the 12-month period, all share classes of the Fund underperformed the Bloomberg US TIPS 1-10 Year Index (the “benchmark”), before sales charges. Yield-curve positioning primarily detracted from performance, relative to the benchmark. Municipal credit and overweights to housing, transportation and health care offset losses from state general obligation and industrial revenue.
During the 12-month period, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes. Inflation swaps were used for hedging purposes, which detracted from absolute returns. Interest rate swaps were utilized for hedging purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class A (with sales charges) | Bloomberg Municipal Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,838 | $10,287 | $9,876 |
| 10/16 | $10,190 | $10,704 | $10,337 |
| 10/17 | $10,387 | $10,939 | $10,352 |
| 10/18 | $10,354 | $10,883 | $10,289 |
| 10/19 | $10,843 | $11,908 | $10,996 |
| 10/20 | $11,173 | $12,336 | $11,766 |
| 10/21 | $12,180 | $12,661 | $12,595 |
| 10/22 | $11,458 | $11,144 | $11,690 |
| 10/23 | $11,768 | $11,439 | $11,794 |
| 10/24 | $12,084 | $12,548 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 7.29% | 2.98% | 2.22% |
| Class A (with sales charges) | 4.05% | 2.34% | 1.91% |
| Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg Municipal Bond Index Unhedged broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AUNAX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $1,433,425,721 |
| # of Portfolio Holdings | 525 |
| Portfolio Turnover Rate | 25% |
| Total Advisory Fees Paid | $6,445,958 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
| Value | Value |
|---|
| AAA | 8.8% |
| AA | 41.5% |
| A | 32.9% |
| BBB | 5.4% |
| BB | 1.8% |
| A-1+ | 1.1% |
| A-1 | 1.2% |
| SP-1 | 1.5% |
| SP-2 | 0.3% |
| Not Rated | 5.5% |
*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 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 used 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 Alliance Bernstein L.P. (the “Adviser”). If applicable, Not Applicable (N/A) includes non-credit worthy investments such as, 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.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AUNAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AUNAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Bond Inflation Strategy
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Municipal Bond Inflation Strategy (the “Fund”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/AUNCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $155 | 1.50% |
How did the Fund perform last year? What affected the Fund’s performance?
For the 12-month period, all share classes of the Fund underperformed the Bloomberg US TIPS 1-10 Year Index (the “benchmark”), before sales charges. Yield-curve positioning primarily detracted from performance, relative to the benchmark. Municipal credit and overweights to housing, transportation and health care offset losses from state general obligation and industrial revenue.
During the 12-month period, the Fund used derivatives in the form of credit default swaps for hedging and investment purposes. Inflation swaps were used for hedging purposes, which detracted from absolute returns. Interest rate swaps were utilized for hedging purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class C | Bloomberg Municipal Bond Index | Bloomberg US TIPS 1-10 Year Index |
|---|
| 10/14 | $10,000 | $10,000 | $10,000 |
| 10/15 | $9,744 | $10,287 | $9,876 |
| 10/16 | $9,997 | $10,704 | $10,337 |
| 10/17 | $10,097 | $10,939 | $10,352 |
| 10/18 | $9,987 | $10,883 | $10,289 |
| 10/19 | $10,349 | $11,908 | $10,996 |
| 10/20 | $10,572 | $12,336 | $11,766 |
| 10/21 | $11,431 | $12,661 | $12,595 |
| 10/22 | $10,659 | $11,144 | $11,690 |
| 10/23 | $10,854 | $11,439 | $11,794 |
| 10/24 | $11,557 | $12,548 | $12,702 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 6.47% | 2.23% | 1.46% |
| Class C (with sales charges) | 5.47% | 2.23% | 1.46% |
| Bloomberg Municipal Bond Index | 9.70% | 1.05% | 2.30% |
| Bloomberg US TIPS 1-10 Year Index | 7.70% | 2.93% | 2.42% |
The addition of the Bloomberg Municipal Bond Index Unhedged broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/AUNCX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $1,433,425,721 |
| # of Portfolio Holdings | 525 |
| Portfolio Turnover Rate | 25% |
| Total Advisory Fees Paid | $6,445,958 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
| Value | Value |
|---|
| AAA | 8.8% |
| AA | 41.5% |
| A | 32.9% |
| BBB | 5.4% |
| BB | 1.8% |
| A-1+ | 1.1% |
| A-1 | 1.2% |
| SP-1 | 1.5% |
| SP-2 | 0.3% |
| Not Rated | 5.5% |
*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 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 used 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 Alliance Bernstein L.P. (the “Adviser”). If applicable, Not Applicable (N/A) includes non-credit worthy investments such as, 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.
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/AUNCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/AUNCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Total Return Bond Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB Total Return Bond Portfolio (the “Portfolio”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABQYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $55 | 0.52% |
How did the Fund perform last year? What affected the Fund’s performance?
Over the 12-month period, all share classes of the Portfolio outperformed the Bloomberg US Aggregate Bond Index (the “benchmark”), before sales charges. Security selection contributed the most , relative to the benchmark, particularly from selections in investment-grade corporate bonds, asset-backed securities and commercial mortgage-backed securities. Sector allocation added to performance, mostly from off-benchmark exposure to agency risk-sharing transactions, and high-yield corporates. Yield-curve positioning in the US detracted the most from results.
During the 12-month period, the Fund utilized derivatives the form of treasury futures and interest rate swaps to manage duration, country exposure, and yield-curve positioning. Currency forwards were utilized to hedge currency. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Advisor Class | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $10,000 | $10,000 |
| 10/15 | $10,151 | $10,196 |
| 10/16 | $10,711 | $10,641 |
| 10/17 | $10,909 | $10,737 |
| 10/18 | $10,745 | $10,517 |
| 10/19 | $11,873 | $11,727 |
| 10/20 | $12,420 | $12,453 |
| 10/21 | $12,644 | $12,393 |
| 10/22 | $10,439 | $10,450 |
| 10/23 | $10,595 | $10,487 |
| 10/24 | $11,839 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class | 11.74% | -0.06% | 1.70% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABQYX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $160,186,865 |
| # of Portfolio Holdings | 415 |
| Portfolio Turnover Rate | 168% |
| Total Advisory Fees Paid | $160,871 |
Graphical Representation of Holdings
Top Ten Sectors (including derivatives)
| Agency Fixed Rate 30-Year | 21.4% |
| Industrial | 17.5% |
| Financial Institutions | 14.2% |
| Treasuries | 9.7% |
| Treasury Bonds | 9.7% |
| Risk Share Floating Rate | 5.0% |
| Autos - Fixed Rate | 4.1% |
| Other ABS - Fixed Rate | 3.6% |
| Non-Agency Fixed Rate CMBS | 2.8% |
| Utility | 2.3% |
| Non-Agency Floating Rate CMBS | 2.0% |
| Inflation-Linked Securities | 1.5% |
| Others | 4.9% |
| Short-Term Investments | 8.0% |
| Other assets less liabilities | -6.7% |
Sector Breakdown (excluding derivatives)
| Value | Value |
|---|
| Corporates - Investment Grade | 31.6% |
| Mortgage Pass-Throughs | 22.2% |
| U.S Treasury Securities | 19.5% |
| Asset-Backed Securities | 8.7% |
| Collateralized Mortgage Obligations | 6.2% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Inflation-Linked Securities | 1.5% |
| Emerging Markets - Corporate Bonds | 1.3% |
| Corporates - Non-Investment Grade | 1.2% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABQYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABQYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Total Return Bond Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB Total Return Bond Portfolio (the “Portfolio”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABQUX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $81 | 0.77% |
How did the Fund perform last year? What affected the Fund’s performance?
Over the 12-month period, all share classes of the Portfolio outperformed the Bloomberg US Aggregate Bond Index (the “benchmark”), before sales charges. Security selection contributed the most , relative to the benchmark, particularly from selections in investment-grade corporate bonds, asset-backed securities and commercial mortgage-backed securities. Sector allocation added to performance, mostly from off-benchmark exposure to agency risk-sharing transactions, and high-yield corporates. Yield-curve positioning in the US detracted the most from results.
During the 12-month period, the Fund utilized derivatives the form of treasury futures and interest rate swaps to manage duration, country exposure, and yield-curve positioning. Currency forwards were utilized to hedge currency. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class A (with sales charges) | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $9,574 | $10,000 |
| 10/15 | $9,692 | $10,196 |
| 10/16 | $10,192 | $10,641 |
| 10/17 | $10,364 | $10,737 |
| 10/18 | $10,183 | $10,517 |
| 10/19 | $11,224 | $11,727 |
| 10/20 | $11,716 | $12,453 |
| 10/21 | $11,885 | $12,393 |
| 10/22 | $9,796 | $10,450 |
| 10/23 | $9,907 | $10,487 |
| 10/24 | $11,055 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 11.59% | -0.30% | 1.45% |
| Class A (with sales charges) | 6.81% | -1.16% | 1.01% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABQUX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $160,186,865 |
| # of Portfolio Holdings | 415 |
| Portfolio Turnover Rate | 168% |
| Total Advisory Fees Paid | $160,871 |
Graphical Representation of Holdings
Top Ten Sectors (including derivatives)
| Agency Fixed Rate 30-Year | 21.4% |
| Industrial | 17.5% |
| Financial Institutions | 14.2% |
| Treasuries | 9.7% |
| Treasury Bonds | 9.7% |
| Risk Share Floating Rate | 5.0% |
| Autos - Fixed Rate | 4.1% |
| Other ABS - Fixed Rate | 3.6% |
| Non-Agency Fixed Rate CMBS | 2.8% |
| Utility | 2.3% |
| Non-Agency Floating Rate CMBS | 2.0% |
| Inflation-Linked Securities | 1.5% |
| Others | 4.9% |
| Short-Term Investments | 8.0% |
| Other assets less liabilities | -6.7% |
Sector Breakdown (excluding derivatives)
| Value | Value |
|---|
| Corporates - Investment Grade | 31.6% |
| Mortgage Pass-Throughs | 22.2% |
| U.S Treasury Securities | 19.5% |
| Asset-Backed Securities | 8.7% |
| Collateralized Mortgage Obligations | 6.2% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Inflation-Linked Securities | 1.5% |
| Emerging Markets - Corporate Bonds | 1.3% |
| Corporates - Non-Investment Grade | 1.2% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABQUX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABQUX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Total Return Bond Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB Total Return Bond Portfolio (the “Portfolio”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABQCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $160 | 1.52% |
How did the Fund perform last year? What affected the Fund’s performance?
Over the 12-month period, all share classes of the Portfolio outperformed the Bloomberg US Aggregate Bond Index (the “benchmark”), before sales charges. Security selection contributed the most , relative to the benchmark, particularly from selections in investment-grade corporate bonds, asset-backed securities and commercial mortgage-backed securities. Sector allocation added to performance, mostly from off-benchmark exposure to agency risk-sharing transactions, and high-yield corporates. Yield-curve positioning in the US detracted the most from results.
During the 12-month period, the Fund utilized derivatives the form of treasury futures and interest rate swaps to manage duration, country exposure, and yield-curve positioning. Currency forwards were utilized to hedge currency. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class C | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $10,000 | $10,000 |
| 10/15 | $10,059 | $10,196 |
| 10/16 | $10,492 | $10,641 |
| 10/17 | $10,579 | $10,737 |
| 10/18 | $10,326 | $10,517 |
| 10/19 | $11,290 | $11,727 |
| 10/20 | $11,705 | $12,453 |
| 10/21 | $11,788 | $12,393 |
| 10/22 | $9,640 | $10,450 |
| 10/23 | $9,676 | $10,487 |
| 10/24 | $10,708 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 10.67% | -1.05% | 0.69% |
| Class C (with sales charges) | 9.67% | -1.05% | 0.69% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABQCX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $160,186,865 |
| # of Portfolio Holdings | 415 |
| Portfolio Turnover Rate | 168% |
| Total Advisory Fees Paid | $160,871 |
Graphical Representation of Holdings
Top Ten Sectors (including derivatives)
| Agency Fixed Rate 30-Year | 21.4% |
| Industrial | 17.5% |
| Financial Institutions | 14.2% |
| Treasuries | 9.7% |
| Treasury Bonds | 9.7% |
| Risk Share Floating Rate | 5.0% |
| Autos - Fixed Rate | 4.1% |
| Other ABS - Fixed Rate | 3.6% |
| Non-Agency Fixed Rate CMBS | 2.8% |
| Utility | 2.3% |
| Non-Agency Floating Rate CMBS | 2.0% |
| Inflation-Linked Securities | 1.5% |
| Others | 4.9% |
| Short-Term Investments | 8.0% |
| Other assets less liabilities | -6.7% |
Sector Breakdown (excluding derivatives)
| Value | Value |
|---|
| Corporates - Investment Grade | 31.6% |
| Mortgage Pass-Throughs | 22.2% |
| U.S Treasury Securities | 19.5% |
| Asset-Backed Securities | 8.7% |
| Collateralized Mortgage Obligations | 6.2% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Inflation-Linked Securities | 1.5% |
| Emerging Markets - Corporate Bonds | 1.3% |
| Corporates - Non-Investment Grade | 1.2% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABQCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABQCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Total Return Bond Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB Total Return Bond Portfolio (the “Portfolio”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABQIX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $55 | 0.52% |
How did the Fund perform last year? What affected the Fund’s performance?
Over the 12-month period, all share classes of the Portfolio outperformed the Bloomberg US Aggregate Bond Index (the “benchmark”), before sales charges. Security selection contributed the most , relative to the benchmark, particularly from selections in investment-grade corporate bonds, asset-backed securities and commercial mortgage-backed securities. Sector allocation added to performance, mostly from off-benchmark exposure to agency risk-sharing transactions, and high-yield corporates. Yield-curve positioning in the US detracted the most from results.
During the 12-month period, the Fund utilized derivatives the form of treasury futures and interest rate swaps to manage duration, country exposure, and yield-curve positioning. Currency forwards were utilized to hedge currency. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class I | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $10,000 | $10,000 |
| 10/15 | $10,151 | $10,196 |
| 10/16 | $10,702 | $10,641 |
| 10/17 | $10,909 | $10,737 |
| 10/18 | $10,744 | $10,517 |
| 10/19 | $11,872 | $11,727 |
| 10/20 | $12,429 | $12,453 |
| 10/21 | $12,642 | $12,393 |
| 10/22 | $10,438 | $10,450 |
| 10/23 | $10,581 | $10,487 |
| 10/24 | $11,832 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 11.82% | -0.07% | 1.70% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABQIX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $160,186,865 |
| # of Portfolio Holdings | 415 |
| Portfolio Turnover Rate | 168% |
| Total Advisory Fees Paid | $160,871 |
Graphical Representation of Holdings
Top Ten Sectors (including derivatives)
| Agency Fixed Rate 30-Year | 21.4% |
| Industrial | 17.5% |
| Financial Institutions | 14.2% |
| Treasuries | 9.7% |
| Treasury Bonds | 9.7% |
| Risk Share Floating Rate | 5.0% |
| Autos - Fixed Rate | 4.1% |
| Other ABS - Fixed Rate | 3.6% |
| Non-Agency Fixed Rate CMBS | 2.8% |
| Utility | 2.3% |
| Non-Agency Floating Rate CMBS | 2.0% |
| Inflation-Linked Securities | 1.5% |
| Others | 4.9% |
| Short-Term Investments | 8.0% |
| Other assets less liabilities | -6.7% |
Sector Breakdown (excluding derivatives)
| Value | Value |
|---|
| Corporates - Investment Grade | 31.6% |
| Mortgage Pass-Throughs | 22.2% |
| U.S Treasury Securities | 19.5% |
| Asset-Backed Securities | 8.7% |
| Collateralized Mortgage Obligations | 6.2% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Inflation-Linked Securities | 1.5% |
| Emerging Markets - Corporate Bonds | 1.3% |
| Corporates - Non-Investment Grade | 1.2% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABQIX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABQIX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Total Return Bond Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB Total Return Bond Portfolio (the “Portfolio”) for the period of November 1, 2023 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABQZX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Z | $55 | 0.52% |
How did the Fund perform last year? What affected the Fund’s performance?
Over the 12-month period, all share classes of the Portfolio outperformed the Bloomberg US Aggregate Bond Index (the “benchmark”), before sales charges. Security selection contributed the most , relative to the benchmark, particularly from selections in investment-grade corporate bonds, asset-backed securities and commercial mortgage-backed securities. Sector allocation added to performance, mostly from off-benchmark exposure to agency risk-sharing transactions, and high-yield corporates. Yield-curve positioning in the US detracted the most from results.
During the 12-month period, the Fund utilized derivatives the form of treasury futures and interest rate swaps to manage duration, country exposure, and yield-curve positioning. Currency forwards were utilized to hedge currency. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| Class Z | Bloomberg U.S. Aggregate Bond Index |
|---|
| 10/14 | $10,237 | $10,000 |
| 10/15 | $10,415 | $10,196 |
| 10/16 | $10,988 | $10,641 |
| 10/17 | $11,191 | $10,737 |
| 10/18 | $11,024 | $10,517 |
| 10/19 | $12,179 | $11,727 |
| 10/20 | $12,739 | $12,453 |
| 10/21 | $12,957 | $12,393 |
| 10/22 | $10,710 | $10,450 |
| 10/23 | $10,858 | $10,487 |
| 10/24 | $11,835 | $11,593 |
Average Annual Total Returns
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class Z | 11.84% | -0.06% | 1.70% |
| Bloomberg U.S. Aggregate Bond Index | 10.55% | -0.23% | 1.49% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABQZX-A for the most recent performance information.
| FUND STATISTICS | Fund Stats |
|---|
| Net Assets | $160,186,865 |
| # of Portfolio Holdings | 415 |
| Portfolio Turnover Rate | 168% |
| Total Advisory Fees Paid | $160,871 |
Graphical Representation of Holdings
Top Ten Sectors (including derivatives)
| Agency Fixed Rate 30-Year | 21.4% |
| Industrial | 17.5% |
| Financial Institutions | 14.2% |
| Treasuries | 9.7% |
| Treasury Bonds | 9.7% |
| Risk Share Floating Rate | 5.0% |
| Autos - Fixed Rate | 4.1% |
| Other ABS - Fixed Rate | 3.6% |
| Non-Agency Fixed Rate CMBS | 2.8% |
| Utility | 2.3% |
| Non-Agency Floating Rate CMBS | 2.0% |
| Inflation-Linked Securities | 1.5% |
| Others | 4.9% |
| Short-Term Investments | 8.0% |
| Other assets less liabilities | -6.7% |
Sector Breakdown (excluding derivatives)
| Value | Value |
|---|
| Corporates - Investment Grade | 31.6% |
| Mortgage Pass-Throughs | 22.2% |
| U.S Treasury Securities | 19.5% |
| Asset-Backed Securities | 8.7% |
| Collateralized Mortgage Obligations | 6.2% |
| Commercial Mortgage-Backed Securities | 4.8% |
| Inflation-Linked Securities | 1.5% |
| Emerging Markets - Corporate Bonds | 1.3% |
| Corporates - Non-Investment Grade | 1.2% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABQZX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABQZX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 19(a)(1).
(b) During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Directors has determined that independent directors Garry L. Moody, Marshall C. Turner, Jr., Jorge A. Bermudez and Carol C. McMullen qualify as audit committee financial experts.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) - (c) The following table sets forth the aggregate fees billed* by the independent registered public accounting firm Ernst & Young LLP, for the Fund’s last two fiscal years, for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues, quarterly press release review (for those Funds that issue quarterly press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.
| | | | | | | | | | | | | | | | |
| | | | | | Audit Fees | | | Audit-Related
Fees | | | Tax Fees | |
AB Total Return Bond Portfolio | | | 2023 | | | $ | 89,151 | | | $ | — | | | $ | 19,428 | |
| | | 2024 | | | $ | 89,151 | | | $ | — | | | $ | 18,252 | |
AB Bond Inflation Strategy | | | 2023 | | | $ | 100,902 | | | $ | — | | | $ | 17,428 | |
| | | 2024 | | | $ | 100,902 | | | $ | — | | | $ | 17,252 | |
AB Municipal Bond Inflation Strategy | | | 2023 | | | $ | 73,009 | | | $ | — | | | $ | 19,400 | |
| | | 2024 | | | $ | 73,009 | | | $ | — | | | $ | 17,351 | |
AB All Market Real Return | | | 2023 | | | $ | 92,184 | | | $ | — | | | $ | 98,011 | |
| | | 2024 | | | $ | 92,184 | | | $ | — | | | $ | 46,261 | |
AB Income | | | 2023 | | | $ | 127,218 | | | $ | — | | | $ | 34,681 | |
| | | 2024 | | | $ | 127,218 | | | $ | — | | | $ | 26,962 | |
(d) Not applicable.
(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.
(e) (2) No percentage of services addressed by (b) and (c) of this Item 4 were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. No amounts are reported for Item 4 (d).
(f) Not applicable.
(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund: (“Service Affiliates”):
| | | | | | | | | | | | |
| | | | | | All Fees for
Non-Audit Services
Provided to the
Portfolio, the Adviser
and Service
Affiliates | | | Total Amount of
Foregoing Column Pre-
approved by the Audit
Committee
(Portion Comprised of
Audit Related Fees)
(Portion Comprised of
Tax Fees) | |
AB Total Return Bond Portfolio | | | 2023 | | | $ | 1,780,458 | | | $ | 19,428 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (19,428 | ) |
| | | 2024 | | | $ | 2,042,558 | | | $ | 18,252 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (18,252 | ) |
AB Bond Inflation Strategy | | | 2023 | | | $ | 1,778,458 | | | $ | 17,428 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (17,428 | ) |
| | | 2024 | | | $ | 2,041,557 | | | $ | 17,252 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (17,252 | ) |
AB Municipal Bond Inflation Strategy | | | 2023 | | | $ | 1,780,430 | | | $ | 19,400 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (19,400 | ) |
| | | 2024 | | | $ | 2,041,657 | | | $ | 17,351 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (17,351 | ) |
AB All Market Real Return | | | 2023 | | | $ | 1,859,041 | | | $ | 98,011 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (98,011 | ) |
| | | 2024 | | | $ | 2,070,567 | | | $ | 46,261 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (46,261 | ) |
AB Income | | | 2023 | | | $ | 1,795,711 | | | $ | 34,681 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (34,681 | ) |
| | | 2024 | | | $ | 2,051,268 | | | $ | 26,962 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (26,962 | ) |
(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.
(i) Not applicable.
(j) Not applicable.
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 7 of this Form N-CSR.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
OCT 10.31.24
ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
CONSOLIDATED PORTFOLIO OF INVESTMENTS
October 31, 2024
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 71.3% | | | | | | | | |
Real Estate – 36.1% | | | | | | | | |
Diversified REITs – 2.1% | | | | | | | | |
Charter Hall Group | | | 128,410 | | | $ | 1,267,125 | |
Covivio SA/France | | | 17,869 | | | | 1,016,556 | |
Essential Properties Realty Trust, Inc. | | | 127,600 | | | | 4,043,644 | |
KDX Realty Investment Corp. | | | 673 | | | | 640,196 | |
Land Securities Group PLC | | | 221,930 | | | | 1,723,661 | |
Merlin Properties Socimi SA | | | 83,640 | | | | 933,280 | |
Stockland | | | 1,564,930 | | | | 5,292,000 | |
| | | | | | | | |
| | | | | | | 14,916,462 | |
| | | | | | | | |
Health Care REITs – 3.5% | | | | | | | | |
Aedifica SA | | | 18,560 | | | | 1,198,192 | |
American Healthcare REIT, Inc. | | | 181,090 | | | | 4,816,994 | |
Ventas, Inc. | | | 126,310 | | | | 8,272,042 | |
Welltower, Inc. | | | 73,380 | | | | 9,897,494 | |
| | | | | | | | |
| | | | | | | 24,184,722 | |
| | | | | | | | |
Hotel & Resort REITs – 0.7% | | | | | | | | |
Hoshino Resorts REIT, Inc.(a) | | | 238 | | | | 361,287 | |
Japan Hotel REIT Investment Corp. | | | 1,098 | | | | 506,287 | |
Ryman Hospitality Properties, Inc. | | | 28,920 | | | | 3,095,886 | |
Xenia Hotels & Resorts, Inc. | | | 76,060 | | | | 1,077,770 | |
| | | | | | | | |
| | | | | | | 5,041,230 | |
| | | | | | | | |
Industrial REITs – 5.8% | | | | | | | | |
CapitaLand Ascendas REIT | | | 1,368,600 | | | | 2,773,478 | |
Dream Industrial Real Estate Investment Trust | | | 152,284 | | | | 1,445,897 | |
Goodman Group | | | 220,560 | | | | 5,266,861 | |
Japan Logistics Fund, Inc. | | | 561 | | | | 1,005,164 | |
Lineage, Inc. | | | 23,469 | | | | 1,737,645 | |
Mapletree Logistics Trust | | | 741,400 | | | | 739,478 | |
Mitsui Fudosan Logistics Park, Inc. | | | 3,036 | | | | 2,021,386 | |
Nippon Prologis REIT, Inc. | | | 465 | | | | 748,130 | |
Prologis, Inc. | | | 132,441 | | | | 14,957,886 | |
Rexford Industrial Realty, Inc. | | | 112,560 | | | | 4,827,698 | |
Segro PLC | | | 155,760 | | | | 1,578,220 | |
STAG Industrial, Inc. | | | 46,100 | | | | 1,718,608 | |
Tritax Big Box REIT PLC | | | 673,960 | | | | 1,226,213 | |
| | | | | | | | |
| | | | | | | 40,046,664 | |
| | | | | | | | |
Office REITs – 1.8% | | | | | | | | |
BXP, Inc. | | | 23,860 | | | | 1,922,162 | |
COPT Defense Properties | | | 142,260 | | | | 4,580,772 | |
Daiwa Office Investment Corp. | | | 1,393 | | | | 2,750,958 | |
Derwent London PLC | | | 40,360 | | | | 1,139,725 | |
Dexus | | | 260,400 | | | | 1,222,119 | |
Nippon Building Fund, Inc. | | | 1,070 | | | | 919,014 | |
| | | | | | | | |
| | | | | | | 12,534,750 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 1 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Real Estate Management & Development – 4.8% | | | | | | | | |
Azrieli Group Ltd. | | | 11,270 | | | $ | 860,361 | |
CapitaLand Investment Ltd./Singapore | | | 389,700 | | | | 823,275 | |
Castellum AB(b) | | | 170,740 | | | | 2,138,129 | |
Catena AB | | | 21,560 | | | | 988,275 | |
CTP NV | | | 41,809 | | | | 699,395 | |
Fastighets AB Balder – Class B(b) | | | 187,970 | | | | 1,462,318 | |
Katitas Co., Ltd. | | | 139,400 | | | | 1,767,459 | |
LEG Immobilien SE | | | 18,170 | | | | 1,716,473 | |
Mitsubishi Estate Co., Ltd. | | | 135,800 | | | | 2,008,214 | |
Mitsui Fudosan Co., Ltd. | | | 567,500 | | | | 4,842,108 | |
PSP Swiss Property AG (REG) | | | 25,450 | | | | 3,614,151 | |
Shurgard Self Storage Ltd. | | | 14,960 | | | | 640,649 | |
Stem, Inc.(a)(b) | | | 150,197 | | | | 56,699 | |
Sumitomo Realty & Development Co., Ltd. | | | 50,600 | | | | 1,500,985 | |
Sun Hung Kai Properties Ltd. | | | 284,500 | | | | 3,080,556 | |
Swire Properties Ltd. | | | 775,400 | | | | 1,578,092 | |
TAG Immobilien AG(b) | | | 66,260 | | | | 1,101,493 | |
Unibail-Rodamco-Westfield(b) | | | 14,570 | | | | 1,191,422 | |
Vonovia SE | | | 98,564 | | | | 3,231,493 | |
| | | | | | | | |
| | | | | | | 33,301,547 | |
| | | | | | | | |
Residential REITs – 4.4% | | | | | | | | |
Comforia Residential REIT, Inc. | | | 825 | | | | 1,616,801 | |
Independence Realty Trust, Inc. | | | 262,990 | | | | 5,159,864 | |
Invitation Homes, Inc. | | | 89,910 | | | | 2,824,073 | |
Killam Apartment Real Estate Investment Trust | | | 119,130 | | | | 1,599,979 | |
Mid-America Apartment Communities, Inc. | | | 48,720 | | | | 7,373,285 | |
Sun Communities, Inc. | | | 25,877 | | | | 3,433,360 | |
UDR, Inc. | | | 164,250 | | | | 6,929,708 | |
UNITE Group PLC (The) | | | 131,060 | | | | 1,482,558 | |
| | | | | | | | |
| | | | | | | 30,419,628 | |
| | | | | | | | |
Retail REITs – 5.6% | | | | | | | | |
Acadia Realty Trust | | | 205,450 | | | | 5,031,471 | |
Brixmor Property Group, Inc. | | | 192,490 | | | | 5,187,606 | |
CapitaLand Integrated Commercial Trust | | | 1,431,576 | | | | 2,174,962 | |
Frasers Centrepoint Trust | | | 645,600 | | | | 1,089,325 | |
Hammerson PLC | | | 290,900 | | | | 1,078,041 | |
Klepierre SA | | | 60,650 | | | | 1,939,077 | |
Link REIT | | | 345,160 | | | | 1,608,244 | |
NETSTREIT Corp. | | | 149,706 | | | | 2,320,443 | |
Realty Income Corp. | | | 99,340 | | | | 5,897,816 | |
Region Re Ltd. | | | 1,006,168 | | | | 1,446,873 | |
Scentre Group | | | 860,710 | | | | 1,973,321 | |
Simon Property Group, Inc. | | | 50,632 | | | | 8,562,884 | |
Supermarket Income Reit PLC | | | 814,790 | | | | 745,344 | |
| | | | | | | | |
| | | | | | | 39,055,407 | |
| | | | | | | | |
| | |
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2 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Specialized REITs – 7.4% | | | | | | | | |
Big Yellow Group PLC | | | 71,010 | | | $ | 1,106,092 | |
Digital Realty Trust, Inc. | | | 52,210 | | | | 9,305,388 | |
Equinix, Inc. | | | 15,920 | | | | 14,456,634 | |
Extra Space Storage, Inc. | | | 35,540 | | | | 5,803,682 | |
Iron Mountain, Inc. | | | 45,830 | | | | 5,670,546 | |
Public Storage | | | 23,840 | | | | 7,844,790 | |
VICI Properties, Inc. | | | 236,496 | | | | 7,511,113 | |
| | | | | | | | |
| | | | | | | 51,698,245 | |
| | | | | | | | |
| | | | | | | 251,198,655 | |
| | | | | | | | |
Energy – 8.3% | | | | | | | | |
Energy Equipment & Services – 0.7% | | | | | | | | |
Saipem SpA(b) | | | 759,714 | | | | 1,806,291 | |
TechnipFMC PLC | | | 46,680 | | | | 1,245,889 | |
Vallourec SACA(b) | | | 110,331 | | | | 1,816,518 | |
| | | | | | | | |
| | | | | | | 4,868,698 | |
| | | | | | | | |
Oil, Gas & Consumable Fuels – 7.6% | | | | | | | | |
BP PLC | | | 556,260 | | | | 2,720,567 | |
Cameco Corp. (New York) | | | 18,734 | | | | 978,290 | |
Cameco Corp. (Toronto) | | | 4,742 | | | | 247,803 | |
Chevron Corp. | | | 31,874 | | | | 4,743,489 | |
ConocoPhillips | | | 42,397 | | | | 4,644,167 | |
Cosan SA | | | 30,900 | | | | 63,180 | |
Coterra Energy, Inc. | | | 33,204 | | | | 794,240 | |
Devon Energy Corp. | | | 19,761 | | | | 764,355 | |
Eni SpA | | | 200,879 | | | | 3,060,027 | |
EOG Resources, Inc. | | | 28,608 | | | | 3,489,032 | |
Exxon Mobil Corp. | | | 88,378 | | | | 10,320,783 | |
Gazprom PJSC(b)(c)(d)(e) | | | 818,956 | | | | – 0 | – |
Hess Corp. | | | 17,883 | | | | 2,404,906 | |
HF Sinclair Corp. | | | 9,685 | | | | 373,938 | |
Imperial Oil Ltd.(a) | | | 15,344 | | | | 1,145,001 | |
Inpex Corp. | | | 20,500 | | | | 270,232 | |
LUKOIL PJSC(c)(d)(e) | | | 20,541 | | | | – 0 | – |
Neste Oyj(a) | | | 541 | | | | 8,686 | |
Paladin Energy Ltd.(b) | | | 9,027 | | | | 59,430 | |
REX American Resources Corp.(b) | | | 4,943 | | | | 221,100 | |
Shell PLC | | | 311,480 | | | | 10,399,486 | |
TotalEnergies SE | | | 80,547 | | | | 5,054,779 | |
Uranium Energy Corp.(b) | | | 30,057 | | | | 223,023 | |
Woodside Energy Group Ltd.(a) | | | 64,000 | | | | 1,007,260 | |
| | | | | | | | |
| | | | | | | 52,993,774 | |
| | | | | | | | |
| | | | | | | 57,862,472 | |
| | | | | | | | |
Materials – 6.3% | | | | | | | | |
Chemicals – 1.3% | | | | | | | | |
Air Liquide SA | | | 441 | | | | 79,072 | |
Air Products and Chemicals, Inc. | | | 809 | | | | 251,219 | |
| | |
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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 3 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Albemarle Corp.(a) | | | 1,651 | | | $ | 156,399 | |
BASF SE | | | 1,955 | | | | 95,038 | |
CF Industries Holdings, Inc. | | | 16,070 | | | | 1,321,436 | |
CNGR Advanced Material Co., Ltd. – Class A | | | 50,090 | | | | 270,111 | |
Corteva, Inc. | | | 21,035 | | | | 1,281,452 | |
DSM-Firmenich AG | | | 795 | | | | 94,274 | |
Ecolab, Inc. | | | 890 | | | | 218,700 | |
Enchem Co., Ltd.(b) | | | 671 | | | | 83,722 | |
Ganfeng Lithium Group Co., Ltd – Class A | | | 38,080 | | | | 181,762 | |
Givaudan SA (REG) | | | 28 | | | | 132,928 | |
Guangzhou Tinci Materials Technology Co., Ltd. – Class A | | | 78,800 | | | | 209,766 | |
Johnson Matthey PLC | | | 5,545 | | | | 106,701 | |
LG Chem Ltd. | | | 390 | | | | 87,689 | |
Linde PLC | | | 418 | | | | 190,671 | |
Mitsubishi Chemical Group Corp. | | | 22,600 | | | | 121,952 | |
Novonesis (Novozymes) B | | | 1,723 | | | | 108,276 | |
Nutrien Ltd. | | | 18,696 | | | | 891,425 | |
RPM International, Inc. | | | 6,124 | | | | 778,422 | |
Shanghai Putailai New Energy Technology Co., Ltd. – Class A | | | 99,319 | | | | 234,817 | |
Sherwin-Williams Co. (The) | | | 2,531 | | | | 908,047 | |
Sumitomo Chemical Co., Ltd. | | | 401,700 | | | | 1,072,434 | |
Symrise AG | | | 971 | | | | 116,841 | |
Umicore SA | | | 5,914 | | | | 71,201 | |
Wacker Chemie AG | | | 724 | | | | 60,898 | |
| | | | | | | | |
| | | | | | | 9,125,253 | |
| | | | | | | | |
Metals & Mining – 5.0% | | | | | | | | |
Agnico Eagle Mines Ltd. | | | 33,842 | | | | 2,921,055 | |
Anglo American PLC | | | 66,804 | | | | 2,070,952 | |
Antofagasta PLC | | | 67,599 | | | | 1,509,930 | |
APERAM SA | | | 30,826 | | | | 839,018 | |
ArcelorMittal SA | | | 116,623 | | | | 2,884,586 | |
Barrick Gold Corp. | | | 96,924 | | | | 1,872,572 | |
Capstone Mining Corp.(b) | | | 209,077 | | | | 1,446,053 | |
CMOC Group Ltd. – Class H | | | 342,000 | | | | 283,095 | |
Endeavour Mining PLC | | | 101,125 | | | | 2,267,632 | |
Glencore PLC(b) | | | 528,235 | | | | 2,770,402 | |
Kinross Gold Corp. | | | 121,281 | | | | 1,223,829 | |
Lundin Mining Corp. | | | 197,167 | | | | 1,917,364 | |
MMC Norilsk Nickel PJSC (ADR)(b)(c)(d) | | | 66,074 | | | | – 0 | – |
Norsk Hydro ASA | | | 309,559 | | | | 1,921,541 | |
Radius Recycling, Inc. | | | 10,806 | | | | 174,949 | |
Rio Tinto PLC | | | 104,076 | | | | 6,726,225 | |
Sims Ltd. | | | 15,605 | | | | 129,677 | |
Teck Resources Ltd. – Class B | | | 54,915 | | | | 2,552,998 | |
Vale SA (Sponsored ADR) | | | 133,729 | | | | 1,430,900 | |
| | | | | | | | |
| | | | | | | 34,942,778 | |
| | | | | | | | |
| | | | | | | 44,068,031 | |
| | | | | | | | |
| | |
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4 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Information Technology – 5.2% | | | | | | | | |
Communications Equipment – 0.2% | | | | | | | | |
Motorola Solutions, Inc. | | | 2,924 | | | $ | 1,313,900 | |
| | | | | | | | |
| | |
Electronic Equipment, Instruments & Components – 0.1% | | | | | | | | |
Itron, Inc.(b) | | | 2,281 | | | | 254,925 | |
Samsung SDI Co., Ltd. | | | 343 | | | | 80,421 | |
Shoals Technologies Group, Inc. – Class A(b) | | | 25,102 | | | | 135,802 | |
| | | | | | | | |
| | | | | | | 471,148 | |
| | | | | | | | |
IT Services – 0.5% | | | | | | | | |
Gartner, Inc.(b) | | | 2,109 | | | | 1,059,773 | |
GoDaddy, Inc. – Class A(b) | | | 2,743 | | | | 457,532 | |
NEXTDC Ltd.(b) | | | 85,590 | | | | 914,279 | |
VeriSign, Inc.(b) | | | 4,806 | | | | 849,893 | |
| | | | | | | | |
| | | | | | | 3,281,477 | |
| | | | | | | | |
Semiconductors & Semiconductor Equipment – 1.6% | | | | | | | | |
ASML Holding NV | | | 955 | | | | 642,840 | |
Broadcom, Inc. | | | 5,056 | | | | 858,357 | |
Enphase Energy, Inc.(b) | | | 1,627 | | | | 135,106 | |
First Solar, Inc.(b) | | | 1,150 | | | | 223,652 | |
GCL Technology Holdings Ltd.(a)(b) | | | 835,000 | | | | 184,374 | |
JA Solar Technology Co., Ltd. – Class A | | | 111,280 | | | | 302,786 | |
KLA Corp. | | | 742 | | | | 494,343 | |
LONGi Green Energy Technology Co., Ltd. – Class A | | | 70,032 | | | | 194,501 | |
Maxeon Solar Technologies Ltd.(a)(b) | | | 5,168 | | | | 47,675 | |
NVIDIA Corp. | | | 46,379 | | | | 6,157,276 | |
Qorvo, Inc.(b) | | | 2,868 | | | | 204,374 | |
QUALCOMM, Inc. | | | 5,233 | | | | 851,775 | |
Shanghai Aiko Solar Energy Co., Ltd. – Class A(b) | | | 108,800 | | | | 195,945 | |
SolarEdge Technologies, Inc.(a)(b) | | | 6,583 | | | | 112,306 | |
Universal Display Corp. | | | 988 | | | | 178,156 | |
Wolfspeed, Inc.(a)(b) | | | 8,423 | | | | 112,110 | |
Xinyi Solar Holdings Ltd.(a) | | | 268,000 | | | | 137,448 | |
| | | | | | | | |
| | | | | | | 11,033,024 | |
| | | | | | | | |
Software – 1.8% | | | | | | | | |
Autodesk, Inc.(b) | | | 4,586 | | | | 1,301,507 | |
DocuSign, Inc.(b) | | | 18,713 | | | | 1,298,308 | |
Dropbox, Inc. – Class A(b) | | | 45,830 | | | | 1,184,705 | |
Manhattan Associates, Inc.(b) | | | 4,241 | | | | 1,116,910 | |
Microsoft Corp. | | | 11,817 | | | | 4,801,838 | |
Oracle Corp. | | | 7,786 | | | | 1,306,802 | |
Trend Micro, Inc./Japan | | | 1,600 | | | | 83,716 | |
Zoom Video Communications, Inc. – Class A(b) | | | 17,519 | | | | 1,309,370 | |
| | | | | | | | |
| | | | | | | 12,403,156 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 5 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Technology Hardware, Storage & Peripherals – 1.0% | | | | | | | | |
Apple, Inc. | | | 28,040 | | | $ | 6,334,516 | |
NetApp, Inc. | | | 9,419 | | | | 1,086,105 | |
| | | | | | | | |
| | | | | | | 7,420,621 | |
| | | | | | | | |
| | | | | | | 35,923,326 | |
| | | | | | | | |
Industrials – 3.8% | | | | | | | | |
Aerospace & Defense – 0.1% | | | | | | | | |
General Electric Co. | | | 1,624 | | | | 278,971 | |
Huntington Ingalls Industries, Inc. | | | 4,479 | | | | 828,436 | |
| | | | | | | | |
| | | | | | | 1,107,407 | |
| | | | | | | | |
Building Products – 0.6% | | | | | | | | |
A O Smith Corp. | | | 3,003 | | | | 225,525 | |
Advanced Drainage Systems, Inc. | | | 1,460 | | | | 218,825 | |
AGC, Inc. | | | 16,700 | | | | 511,774 | |
Kingspan Group PLC | | | 1,202 | | | | 106,145 | |
Lennox International, Inc. | | | 523 | | | | 315,144 | |
Masco Corp. | | | 13,641 | | | | 1,090,052 | |
Nibe Industrier AB – Class B | | | 12,487 | | | | 60,544 | |
Owens Corning | | | 8,073 | | | | 1,427,225 | |
| | | | | | | | |
| | | | | | | 3,955,234 | |
| | | | | | | | |
Commercial Services & Supplies – 0.5% | | | | | | | | |
Brambles Ltd. | | | 49,078 | | | | 590,900 | |
Casella Waste Systems, Inc. – Class A(b) | | | 1,819 | | | | 178,044 | |
Cintas Corp. | | | 6,412 | | | | 1,319,653 | |
Clean Harbors, Inc.(b) | | | 1,088 | | | | 251,611 | |
Rollins, Inc. | | | 6,757 | | | | 318,525 | |
Veralto Corp. | | | 9,825 | | | | 1,004,017 | |
| | | | | | | | |
| | | | | | | 3,662,750 | |
| | | | | | | | |
Construction & Engineering – 0.2% | | | | | | | | |
EMCOR Group, Inc. | | | 1,732 | | | | 772,593 | |
MasTec, Inc.(b) | | | 2,275 | | | | 279,575 | |
Quanta Services, Inc. | | | 914 | | | | 275,690 | |
| | | | | | | | |
| | | | | | | 1,327,858 | |
| | | | | | | | |
Electrical Equipment – 1.1% | | | | | | | | |
ABB Ltd. (REG) | | | 2,919 | | | | 162,212 | |
Acuity Brands, Inc. | | | 2,922 | | | | 878,616 | |
Array Technologies, Inc.(a)(b) | | | 22,812 | | | | 148,962 | |
Bloom Energy Corp. – Class A(a)(b) | | | 15,019 | | | | 144,182 | |
BWX Technologies, Inc. | | | 2,587 | | | | 314,967 | |
Cavendish Hydrogen ASA(b) | | | 1,491 | | | | 1,519 | |
Contemporary Amperex Technology Co., Ltd. – Class A | | | 5,760 | | | | 199,912 | |
Doosan Fuel Cell Co., Ltd.(b) | | | 1,724 | | | | 21,604 | |
Ecopro BM Co., Ltd.(b) | | | 280 | | | | 34,170 | |
Eve Energy Co., Ltd. – Class A | | | 30,600 | | | | 208,888 | |
Fluence Energy, Inc.(a)(b) | | | 14,673 | | | | 319,138 | |
| | |
| |
6 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
FuelCell Energy, Inc.(a)(b) | | | 395,690 | | | $ | 136,117 | |
Goldwind Science & Technology Co., Ltd. – Class A | | | 182,200 | | | | 278,804 | |
GoodWe Technologies Co., Ltd. – Class A | | | 16,579 | | | | 123,820 | |
Gotion High-tech Co., Ltd. – Class A | | | 42,100 | | | | 134,498 | |
GS Yuasa Corp. | | | 8,500 | | | | 150,380 | |
Legrand SA | | | 9,302 | | | | 1,049,902 | |
NARI Technology Co., Ltd. – Class A | | | 44,170 | | | | 161,396 | |
NEL ASA(b) | | | 132,599 | | | | 51,298 | |
Nexans SA | | | 1,341 | | | | 186,671 | |
NEXTracker, Inc. – Class A(b) | | | 4,680 | | | | 186,358 | |
Ningbo Ronbay New Energy Technology Co., Ltd. – Class A | | | 56,905 | | | | 240,055 | |
Nordex SE(b) | | | 8,884 | | | | 126,602 | |
Plug Power, Inc.(a)(b) | | | 69,227 | | | | 135,685 | |
Prysmian SpA | | | 18,879 | | | | 1,332,372 | |
Schneider Electric SE | | | 505 | | | | 130,820 | |
Siemens Energy AG(b) | | | 3,984 | | | | 163,635 | |
Signify NV(f) | | | 5,729 | | | | 140,272 | |
SK IE Technology Co., Ltd.(b)(f) | | | 420 | | | | 10,367 | |
Sungrow Power Supply Co., Ltd. – Class A | | | 20,300 | | | | 258,734 | |
Sunrun, Inc.(b) | | | 11,588 | | | | 167,447 | |
Titan Wind Energy Suzhou Co., Ltd. – Class A | | | 164,800 | | | | 211,972 | |
Vestas Wind Systems A/S(b) | | | 3,822 | | | | 72,837 | |
| | | | | | | | |
| | | | | | | 7,884,212 | |
| | | | | | | | |
Ground Transportation – 0.0% | | | | | | | | |
MTR Corp., Ltd. | | | 13,500 | | | | 49,118 | |
| | | | | | | | |
| | |
Industrial Conglomerates – 0.1% | | | | | | | | |
Hikari Tsushin, Inc. | | | 2,200 | | | | 444,031 | |
Hitachi Ltd. | | | 2,600 | | | | 65,325 | |
Siemens AG (REG) | | | 610 | | | | 118,675 | |
| | | | | | | | |
| | | | | | | 628,031 | |
| | | | | | | | |
Machinery – 0.4% | | | | | | | | |
AGCO Corp. | | | 12,687 | | | | 1,266,670 | |
Alstom SA(b) | | | 3,708 | | | | 81,563 | |
Chart Industries, Inc.(a)(b) | | | 1,240 | | | | 149,693 | |
CNH Industrial NV | | | 8,922 | | | | 100,188 | |
Cummins, Inc. | | | 910 | | | | 299,372 | |
Deere & Co. | | | 574 | | | | 232,292 | |
Energy Recovery, Inc.(b) | | | 12,483 | | | | 222,946 | |
NGK Insulators Ltd. | | | 8,700 | | | | 107,176 | |
Volvo AB – Class B | | | 7,145 | | | | 186,104 | |
Xylem, Inc./NY | | | 1,455 | | | | 177,190 | |
| | | | | | | | |
| | | | | | | 2,823,194 | |
| | | | | | | | |
Professional Services – 0.6% | | | | | | | | |
Automatic Data Processing, Inc. | | | 4,829 | | | | 1,396,740 | |
Robert Half, Inc. | | | 13,800 | | | | 939,918 | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 7 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
SGS SA (REG) | | | 3,509 | | | $ | 371,487 | |
Verisk Analytics, Inc. | | | 4,517 | | | | 1,240,910 | |
| | | | | | | | |
| | | | | | | 3,949,055 | |
| | | | | | | | |
Transportation Infrastructure – 0.2% | | | | | | | | |
Aena SME SA | | | 5,429 | | | | 1,203,175 | |
| | | | | | | | |
| | | | | | | 26,590,034 | |
| | | | | | | | |
Financials – 3.2% | | | | | | | | |
Banks – 1.0% | | | | | | | | |
Canadian Imperial Bank of Commerce | | | 20,727 | | | | 1,296,749 | |
Citigroup, Inc. | | | 22,262 | | | | 1,428,553 | |
DBS Group Holdings Ltd. | | | 21,600 | | | | 626,288 | |
First Citizens BancShares, Inc./NC – Class A | | | 601 | | | | 1,164,347 | |
Japan Post Bank Co., Ltd. | | | 96,400 | | | | 860,982 | |
National Bank of Canada | | | 608 | | | | 57,990 | |
NatWest Group PLC | | | 255,048 | | | | 1,208,482 | |
Standard Chartered PLC | | | 38,450 | | | | 445,881 | |
| | | | | | | | |
| | | | | | | 7,089,272 | |
| | | | | | | | |
Capital Markets – 0.5% | | | | | | | | |
Ameriprise Financial, Inc. | | | 2,622 | | | | 1,338,007 | |
Goldman Sachs Group, Inc. (The) | | | 2,953 | | | | 1,529,034 | |
Moody’s Corp. | | | 1,686 | | | | 765,511 | |
TMX Group Ltd. | | | 5,112 | | | | 159,673 | |
| | | | | | | | |
| | | | | | | 3,792,225 | |
| | | | | | | | |
Consumer Finance – 0.3% | | | | | | | | |
Ally Financial, Inc. | | | 27,738 | | | | 972,217 | |
Synchrony Financial | | | 18,660 | | | | 1,028,912 | |
| | | | | | | | |
| | | | | | | 2,001,129 | |
| | | | | | | | |
Financial Services – 0.5% | | | | | | | | |
Corebridge Financial, Inc. | | | 37,508 | | | | 1,191,629 | |
Mastercard, Inc. – Class A | | | 3,851 | | | | 1,923,921 | |
| | | | | | | | |
| | | | | | | 3,115,550 | |
| | | | | | | | |
Insurance – 0.9% | | | | | | | | |
Ageas SA/NV | | | 13,584 | | | | 708,926 | |
Allstate Corp. (The) | | | 4,458 | | | | 831,506 | |
Everest Group Ltd. | | | 3,003 | | | | 1,067,897 | |
Japan Post Holdings Co., Ltd. | | | 127,400 | | | | 1,175,403 | |
Poste Italiane SpA | | | 85,973 | | | | 1,208,895 | |
T&D Holdings, Inc.(a) | | | 69,200 | | | | 1,104,588 | |
| | | | | | | | |
| | | | | | | 6,097,215 | |
| | | | | | | | |
| | | | | | | 22,095,391 | |
| | | | | | | | |
Health Care – 2.8% | | | | | | | | |
Biotechnology – 0.7% | | | | | | | | |
AbbVie, Inc. | | | 5,899 | | | | 1,202,629 | |
Alnylam Pharmaceuticals, Inc.(b) | | | 1,112 | | | | 296,448 | |
Amgen, Inc. | | | 1,443 | | | | 461,991 | |
Biogen, Inc.(b) | | | 3,001 | | | | 522,174 | |
| | |
| |
8 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Gilead Sciences, Inc. | | | 8,344 | | | $ | 741,114 | |
Incyte Corp.(b) | | | 7,502 | | | | 556,048 | |
Neurocrine Biosciences, Inc.(b) | | | 4,159 | | | | 500,203 | |
United Therapeutics Corp.(b) | | | 1,524 | | | | 569,931 | |
| | | | | | | | |
| | | | | | | 4,850,538 | |
| | | | | | | | |
Health Care Equipment & Supplies – 0.3% | | | | | | | | |
Demant A/S(b) | | | 15,158 | | | | 559,879 | |
Hologic, Inc.(b) | | | 2,666 | | | | 215,599 | |
ResMed, Inc. | | | 5,083 | | | | 1,232,475 | |
| | | | | | | | |
| | | | | | | 2,007,953 | |
| | | | | | | | |
Health Care Providers & Services – 0.9% | | | | | | | | |
ABIOMED, Inc. (CVR)(b)(c)(d) | | | 1,321 | | | | 1,348 | |
Cardinal Health, Inc. | | | 5,244 | | | | 569,079 | |
Cencora, Inc. | | | 1,291 | | | | 294,451 | |
Centene Corp.(b) | | | 10,885 | | | | 677,700 | |
Chartwell Retirement Residences | | | 204,700 | | | | 2,300,826 | |
McKesson Corp. | | | 2,580 | | | | 1,291,522 | |
Universal Health Services, Inc. – Class B | | | 5,303 | | | | 1,083,456 | |
| | | | | | | | |
| | | | | | | 6,218,382 | |
| | | | | | | | |
Pharmaceuticals – 0.9% | | | | | | | | |
Eli Lilly & Co. | | | 2,789 | | | | 2,314,145 | |
Merck & Co., Inc. | | | 5,146 | | | | 526,539 | |
Novo Nordisk A/S – Class B | | | 15,866 | | | | 1,779,610 | |
Roche Holding AG (Genusschein) | | | 5,046 | | | | 1,563,772 | |
| | | | | | | | |
| | | | | | | 6,184,066 | |
| | | | | | | | |
| | | | | | | 19,260,939 | |
| | | | | | | | |
Consumer Discretionary – 2.0% | | | | | | | | |
Automobiles – 0.3% | | | | | | | | |
BYD Co., Ltd. – Class H | | | 9,000 | | | | 325,068 | |
Li Auto, Inc. – Class A(b) | | | 16,100 | | | | 202,459 | |
Lucid Group, Inc.(b) | | | 49,779 | | | | 110,012 | |
Nissan Motor Co., Ltd.(a) | | | 364,200 | | | | 970,247 | |
Rivian Automotive, Inc. – Class A(a)(b) | | | 9,062 | | | | 91,526 | |
Tesla, Inc.(b) | | | 3,038 | | | | 759,044 | |
| | | | | | | | |
| | | | | | | 2,458,356 | |
| | | | | | | | |
Broadline Retail – 0.5% | | | | | | | | |
Amazon.com, Inc.(b) | | | 13,292 | | | | 2,477,629 | |
MercadoLibre, Inc.(b) | | | 671 | | | | 1,366,948 | |
| | | | | | | | |
| | | | | | | 3,844,577 | |
| | | | | | | | |
Hotels, Restaurants & Leisure – 0.3% | | | | | | | | |
Expedia Group, Inc.(b) | | | 7,285 | | | | 1,138,718 | |
La Francaise des Jeux SAEM | | | 7,582 | | | | 324,094 | |
Lottery Corp., Ltd. (The) | | | 128,889 | | | | 421,143 | |
| | | | | | | | |
| | | | | | | 1,883,955 | |
| | | | | | | | |
Household Durables – 0.5% | | | | | | | | |
Desarrolladora Homex SAB de CV(b) | | | 1,590 | | | | – 0 | – |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 9 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Open House Group Co., Ltd. | | | 16,300 | | | $ | 600,840 | |
Panasonic Holdings Corp. | | | 11,700 | | | | 96,292 | |
PulteGroup, Inc. | | | 20,372 | | | | 2,638,785 | |
| | | | | | | | |
| | | | | | | 3,335,917 | |
| | | | | | | | |
Specialty Retail – 0.2% | | | | | | | | |
TJX Cos., Inc. (The) | | | 12,043 | | | | 1,361,220 | |
| | | | | | | | |
| | |
Textiles, Apparel & Luxury Goods – 0.2% | | | | | | | | |
Pandora A/S | | | 7,547 | | | | 1,141,077 | |
| | | | | | | | |
| | | | | | | 14,025,102 | |
| | | | | | | | |
Communication Services – 1.4% | | | | | | | | |
Diversified Telecommunication Services – 0.1% | | | | | | | | |
Infrastrutture Wireless Italiane SpA | | | 84,010 | | | | 947,194 | |
| | | | | | | | |
| | |
Entertainment – 0.4% | | | | | | | | |
Netflix, Inc.(b) | | | 2,439 | | | | 1,843,957 | |
Sea Ltd. (ADR)(b) | | | 12,901 | | | | 1,213,339 | |
| | | | | | | | |
| | | | | | | 3,057,296 | |
| | | | | | | | |
Interactive Media & Services – 0.7% | | | | | | | | |
Alphabet, Inc. – Class A | | | 10,555 | | | | 1,806,066 | |
Alphabet, Inc. – Class C | | | 4,782 | | | | 825,804 | |
LY Corp. | | | 56,400 | | | | 153,847 | |
Meta Platforms, Inc. – Class A | | | 3,021 | | | | 1,714,659 | |
| | | | | | | | |
| | | | | | | 4,500,376 | |
| | | | | | | | |
Media – 0.2% | | | | | | | | |
Fox Corp. – Class B | | | 30,140 | | | | 1,174,254 | |
| | | | | | | | |
| | | | | | | 9,679,120 | |
| | | | | | | | |
Utilities – 1.2% | | | | | | | | |
Electric Utilities – 0.6% | | | | | | | | |
Elia Group SA/NV(a) | | | 622 | | | | 59,187 | |
Enel SpA | | | 182,334 | | | | 1,382,835 | |
Iberdrola SA | | | 11,947 | | | | 177,467 | |
NRG Energy, Inc. | | | 12,665 | | | | 1,144,916 | |
Origin Energy Ltd. | | | 164,354 | | | | 1,037,746 | |
Redeia Corp. SA | | | 7,001 | | | | 129,628 | |
SSE PLC | | | 2,635 | | | | 59,876 | |
Terna – Rete Elettrica Nazionale | | | 16,162 | | | | 139,991 | |
Verbund AG | | | 2,516 | | | | 207,203 | |
| | | | | | | | |
| | | | | | | 4,338,849 | |
| | | | | | | | |
Independent Power and Renewable Electricity Producers – 0.3% | | | | | | | | |
Altus Power, Inc.(a)(b) | | | 51,142 | | | | 175,929 | |
Boralex, Inc. – Class A | | | 8,600 | | | | 206,731 | |
Brookfield Renewable Corp. – Class A | | | 7,522 | | | | 230,303 | |
China Longyuan Power Group Corp., Ltd. – Class H | | | 239,000 | | | | 212,520 | |
| | |
| |
10 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Corp. ACCIONA Energias Renovables SA(a) | | | 3,265 | | | $ | 67,591 | |
EDP Renovaveis SA(a) | | | 8,063 | | | | 109,283 | |
Encavis AG(b) | | | 5,506 | | | | 103,064 | |
ERG SpA | | | 3,209 | | | | 72,067 | |
NextEra Energy Partners LP | | | 8,259 | | | | 159,812 | |
Ormat Technologies, Inc. | | | 2,761 | | | | 218,174 | |
Orsted AS(b) | | | 1,593 | | | | 93,759 | |
RENOVA, Inc.(b) | | | 12,900 | | | | 73,098 | |
Solaria Energia y Medio Ambiente SA(a)(b) | | | 6,790 | | | | 71,221 | |
Sunnova Energy International, Inc.(a)(b) | | | 18,376 | | | | 111,542 | |
| | | | | | | | |
| | | | | | | 1,905,094 | |
| | | | | | | | |
Multi-Utilities – 0.3% | | | | | | | | |
Centrica PLC | | | 382,116 | | | | 578,440 | |
DTE Energy Co. | | | 9,312 | | | | 1,156,737 | |
E.ON SE | | | 7,613 | | | | 102,738 | |
National Grid PLC | | | 5,307 | | | | 66,635 | |
| | | | | | | | |
| | | | | | | 1,904,550 | |
| | | | | | | | |
| | | | | | | 8,148,493 | |
| | | | | | | | |
Consumer Staples – 1.0% | | | | | | | | |
Beverages – 0.2% | | | | | | | | |
Carlsberg AS – Class B | | | 4,591 | | | | 507,368 | |
Coca-Cola Co. (The) | | | 13,528 | | | | 883,514 | |
| | | | | | | | |
| | | | | | | 1,390,882 | |
| | | | | | | | |
Consumer Staples Distribution & Retail – 0.1% | | | | | | | | |
George Weston Ltd. | | | 4,619 | | | | 732,651 | |
| | | | | | | | |
| | |
Food Products – 0.1% | | | | | | | | |
Beyond Meat, Inc.(a)(b) | | | 34,310 | | | | 208,948 | |
Darling Ingredients, Inc.(b) | | | 5,208 | | | | 203,685 | |
Kerry Group PLC – Class A | | | 1,197 | | | | 119,550 | |
| | | | | | | | |
| | | | | | | 532,183 | |
| | | | | | | | |
Household Products – 0.3% | | | | | | | | |
Essity AB – Class B | | | 39,389 | | | | 1,112,033 | |
Kimberly-Clark Corp. | | | 8,516 | | | | 1,142,677 | |
| | | | | | | | |
| | | | | | | 2,254,710 | |
| | | | | | | | |
Personal Care Products – 0.1% | | | | | | | | |
Unilever PLC (London) | | | 18,256 | | | | 1,113,653 | |
| | | | | | | | |
|
Tobacco – 0.2% | |
Imperial Brands PLC | | | 42,427 | | | | 1,280,364 | |
| | | | | | | | |
| | | | | | | 7,304,443 | |
| | | | | | | | |
Total Common Stocks
(cost $431,746,664) | | | | | | | 496,156,006 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 11 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
INVESTMENT COMPANIES – 2.0% | | | | | | | | |
Funds and Investment Trusts – 2.0%(g) | | | | | | | | |
FlexShares Global Upstream Natural Resources Index Fund(a) | | | 181,940 | | | $ | 7,239,393 | |
iShares MSCI Global Metals & Mining Producers ETF(a) | | | 168,830 | | | | 6,776,836 | |
| | | | | | | | |
| | |
Total Investment Companies
(cost $14,590,549) | | | | | | | 14,016,229 | |
| | | | | | | | |
| | | | | | | | |
WARRANTS – 0.0% | | | | | | | | |
Information Technology – 0.0% | | | | | | | | |
Software – 0.0% | | | | | | | | |
Constellation Software, Inc., expiring 03/31/2040(a)(b)(c)(d)
(cost $0) | | | 421 | | | | – 0 | – |
| | | | | | | | |
| | | | | | | | |
SHORT-TERM INVESTMENTS – 23.9% | | | | | | | | |
Investment Companies – 23.9% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.72%(g)(h)(i)
(cost $166,038,446) | | | 166,038,446 | | | | 166,038,446 | |
| | | | | | | | |
Total Investments Before Security Lending Collateral for Securities Loaned – 97.2%
(cost $612,375,659) | | | | | | | 676,210,681 | |
| | | | | | | | |
| | | | | | | | |
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.7% | | | | | | | | |
Investment Companies – 0.7% | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.72%(g)(h)(i)
(cost $4,822,604) | | | 4,822,604 | | | | 4,822,604 | |
| | | | | | | | |
| | |
Total Investments – 97.9%
(cost $617,198,263) | | | | | | | 681,033,285 | |
Other assets less liabilities – 2.1% | | | | | | | 14,913,978 | |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 695,947,263 | |
| | | | | | | | |
| | |
| |
12 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
FUTURES (see Note D)
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Month | | | Current
Notional | | | Value and
Unrealized
Appreciation
(Depreciation) | |
Purchased Contracts | |
Brent Crude Futures | | | 165 | | | | November 2024 | | | $ | 12,013,650 | | | $ | (728,307 | ) |
Coffee Robusta Futures | | | 44 | | | | January 2025 | | | | 1,922,360 | | | | (203,382 | ) |
Coffee ‘C’ Futures | | | 54 | | | | March 2025 | | | | 4,971,375 | | | | 342,998 | |
Copper Futures | | | 187 | | | | December 2024 | | | | 20,289,500 | | | | (17,425 | ) |
Corn Futures | | | 390 | | | | March 2025 | | | | 8,307,000 | | | | 107,424 | |
Cotton No. 2 Futures | | | 86 | | | | March 2025 | | | | 3,088,690 | | | | 38,896 | |
Euro STOXX 50 Index Futures | | | 68 | | | | December 2024 | | | | 3,575,564 | | | | (106,144 | ) |
FTSE 100 Index Futures | | | 14 | | | | December 2024 | | | | 1,467,111 | | | | (38,307 | ) |
Gasoline RBOB Futures | | | 44 | | | | December 2024 | | | | 3,610,438 | | | | (124,151 | ) |
Gold 100 OZ Futures | | | 156 | | | | December 2024 | | | | 42,889,080 | | | | 3,851,876 | |
KC HRW Wheat Futures | | | 101 | | | | March 2025 | | | | 2,944,150 | | | | 13,794 | |
Lean Hogs Futures | | | 74 | | | | December 2024 | | | | 2,480,480 | | | | 8,190 | |
Lean Hogs Futures | | | 74 | | | | February 2025 | | | | 2,521,920 | | | | 327,838 | |
Live Cattle Futures | | | 93 | | | | February 2025 | | | | 6,948,030 | | | | (64,133 | ) |
LME Lead Futures | | | 30 | | | | November 2024 | | | | 1,492,605 | | | | 17,449 | |
LME Nickel Futures | | | 34 | | | | November 2024 | | | | 3,163,558 | | | | (92,678 | ) |
LME Primary Aluminum Futures | | | 159 | | | | November 2024 | | | | 10,339,690 | | | | 896,726 | |
LME Primary Aluminum Futures | | | 55 | | | | December 2024 | | | | 3,585,024 | | | | (22,182 | ) |
LME Zinc Futures | | | 76 | | | | November 2024 | | | | 5,765,037 | | | | 554,904 | |
Low SU Gasoil Futures | | | 67 | | | | January 2025 | | | | 4,468,900 | | | | (707,105 | ) |
MSCI Emerging Markets Futures | | | 199 | | | | December 2024 | | | | 11,208,675 | | | | (23,892 | ) |
Natural Gas Futures | | | 393 | | | | December 2024 | | | | 11,664,240 | | | | (1,939,241 | ) |
NY Harbor ULSD Futures | | | 35 | | | | December 2024 | | | | 3,295,299 | | | | (470,617 | ) |
OMXS 30 Index Futures | | | 6 | | | | November 2024 | | | | 142,714 | | | | (2,499 | ) |
S&P 500 E-Mini Futures | | | 86 | | | | December 2024 | | | | 24,675,550 | | | | (646,868 | ) |
S&P/TSX 60 Index Futures | | | 5 | | | | December 2024 | | | | 1,039,466 | | | | (25,103 | ) |
Silver Futures | | | 116 | | | | December 2024 | | | | 19,021,680 | | | | 1,379,680 | |
Soybean Futures | | | 152 | | | | January 2025 | | | | 7,558,200 | | | | (883,940 | ) |
Soybean Meal Futures | | | 169 | | | | January 2025 | | | | 5,091,970 | | | | (646,099 | ) |
Soybean Oil Futures | | | 142 | | | | December 2024 | | | | 3,845,928 | | | | 117,286 | |
Soybean Oil Futures | | | 259 | | | | January 2025 | | | | 7,003,878 | | | | 233,911 | |
SPI 200 Futures | | | 5 | | | | December 2024 | | | | 672,085 | | | | (9,617 | ) |
Sugar 11 (World) Futures | | | 213 | | | | February 2025 | | | | 5,424,854 | | | | (108,595 | ) |
TOPIX Index Futures | | | 12 | | | | December 2024 | | | | 2,128,077 | | | | 20,247 | |
Wheat (CBT) Futures | | | 158 | | | | March 2025 | | | | 4,662,975 | | | | 150,376 | |
WTI Crude Futures | | | 171 | | | | December 2024 | | | | 11,766,510 | | | | (1,396,069 | ) |
| | | | | | | | | | | | | | | | |
Sold Contracts | |
Bloomberg Commodity Index Futures | | | 2,933 | | | | December 2024 | | | | 28,772,730 | | | | (407,245 | ) |
LME Zinc Futures | | | 8 | | | | November 2024 | | | | 606,846 | | | | 23,279 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (578,725 | ) |
| | | | | | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 13 |
CONSOLIDATED 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) | |
Australia and New Zealand Banking Group Ltd. | | USD | | | 1,043 | | | NZD | | | 1,652 | | | 12/06/2024 | | $ | (55,602 | ) |
Bank of America, NA | | BRL | | | 34,516 | | | USD | | | 6,016 | | | 11/04/2024 | | | 45,559 | |
Bank of America, NA | | USD | | | 6,128 | | | BRL | | | 34,516 | | | 11/04/2024 | | | (157,254 | ) |
Bank of America, NA | | CAD | | | 43,684 | | | USD | | | 32,125 | | | 11/07/2024 | | | 743,828 | |
Bank of America, NA | | USD | | | 22682 | | | CAD | | | 30,748 | | | 11/07/2024 | | | (594,173 | ) |
Bank of America, NA | | CLP | | | 2,166,494 | | | USD | | | 2,380 | | | 11/08/2024 | | | 126,858 | |
Bank of America, NA | | COP | | | 12,074,407 | | | USD | | | 2,903 | | | 11/08/2024 | | | 175,309 | |
Bank of America, NA | | GBP | | | 5,129 | | | USD | | | 6,716 | | | 11/08/2024 | | | 102,074 | |
Bank of America, NA | | PEN | | | 12,953 | | | USD | | | 3,448 | | | 11/08/2024 | | | 15,879 | |
Bank of America, NA | | USD | | | 4,802 | | | CLP | | | 4623467 | | | 11/08/2024 | | | 7,284 | |
Bank of America, NA | | USD | | | 4,795 | | | CLP | | | 4,334,390 | | | 11/08/2024 | | | (286,759 | ) |
Bank of America, NA | | USD | | | 1,609 | | | COP | | | 7,003,989 | | | 11/08/2024 | | | (26,766 | ) |
Bank of America, NA | | USD | | | 21,159 | | | GBP | | | 15,986 | | | 11/08/2024 | | | (545,785 | ) |
Bank of America, NA | | USD | | | 4,452 | | | PEN | | | 16,676 | | | 11/08/2024 | | | (32,933 | ) |
Bank of America, NA | | USD | | | 3,711 | | | CNH | | | 26,496 | | | 11/21/2024 | | | 14,040 | |
Bank of America, NA | | USD | | | 5,076 | | | CNH | | | 36,101 | | | 11/21/2024 | | | (826 | ) |
Bank of America, NA | | USD | | | 3,445 | | | CZK | | | 80,850 | | | 11/21/2024 | | | 29,764 | |
Bank of America, NA | | AUD | | | 14,387 | | | USD | | | 9,718 | | | 11/22/2024 | | | 248,169 | |
Bank of America, NA | | SEK | | | 72,875 | | | USD | | | 6,972 | | | 11/22/2024 | | | 126,671 | |
Bank of America, NA | | TWD | | | 52,155 | | | USD | | | 1,663 | | | 11/22/2024 | | | 27,466 | |
Bank of America, NA | | USD | | | 8,987 | | | AUD | | | 13,341 | | | 11/22/2024 | | | (205,418 | ) |
Bank of America, NA | | USD | | | 14,506 | | | SEK | | | 149684 | | | 11/22/2024 | | | (445,487 | ) |
Bank of America, NA | | USD | | | 6,315 | | | TWD | | | 202,563 | | | 11/22/2024 | | | 36,347 | |
Bank of America, NA | | USD | | | 575 | | | TWD | | | 18,140 | | | 11/22/2024 | | | (6,359 | ) |
Bank of America, NA | | BRL | | | 11,531 | | | USD | | | 2,013 | | | 12/03/2024 | | | 25,093 | |
Bank of America, NA | | USD | | | 3,401 | | | BRL | | | 19,469 | | | 12/03/2024 | | | (45,246 | ) |
Bank of America, NA | | INR | | | 968,897 | | | USD | | | 11,492 | | | 12/06/2024 | | | (18,050 | ) |
Bank of America, NA | | NZD | | | 12,900 | | | USD | | | 7,969 | | | 12/06/2024 | | | 256,901 | |
Bank of America, NA | | NZD | | | 1,458 | | | USD | | | 871 | | | 12/06/2024 | | | (363 | ) |
Bank of America, NA | | JPY | | | 324,126 | | | USD | | | 2,164 | | | 12/19/2024 | | | 17,699 | |
Bank of America, NA | | USD | | | 2,631 | | | ZAR | | | 46,548 | | | 12/19/2024 | | | (663 | ) |
Bank of America, NA | | ZAR | | | 27,137 | | | USD | | | 1,531 | | | 12/19/2024 | | | (2,151 | ) |
Bank of America, NA | | CHF | | | 10,259 | | | USD | | | 11,904 | | | 12/20/2024 | | | (37,033 | ) |
Bank of America, NA | | USD | | | 1,195 | | | CHF | | | 1,030 | | | 12/20/2024 | | | 3,718 | |
Bank of America, NA | | CLP | | | 4,623,467 | | | USD | | | 4,800 | | | 01/16/2025 | | | (7,453 | ) |
Bank of America, NA | | USD | | | 1,150 | | | PEN | | | 4,331 | | | 01/16/2025 | | | (2,537 | ) |
Bank of America, NA | | KRW | | | 1,715,892 | | | USD | | | 1,278 | | | 01/17/2025 | | | 26,140 | |
Bank of America, NA | | PHP | | | 42,853 | | | USD | | | 741 | | | 01/23/2025 | | | 6,358 | |
Bank of America, NA | | IDR | | | 24,843,248 | | | USD | | | 1,570 | | | 01/24/2025 | | | (6,787 | ) |
Barclays Bank PLC | | CAD | | | 8,445 | | | USD | | | 6,256 | | | 11/07/2024 | | | 189,506 | |
Barclays Bank PLC | | USD | | | 7,020 | | | CAD | | | 9569 | | | 11/07/2024 | | | (145,620 | ) |
Barclays Bank PLC | | COP | | | 8,007,087 | | | USD | | | 1,889 | | | 11/08/2024 | | | 79,835 | |
Barclays Bank PLC | | GBP | | | 7,170 | | | USD | | | 9,339 | | | 11/08/2024 | | | 93,367 | |
Barclays Bank PLC | | PEN | | | 5,373 | | | USD | | | 1,429 | | | 11/08/2024 | | | 5,392 | |
Barclays Bank PLC | | USD | | | 2,045 | | | CLP | | | 1,941,292 | | | 11/08/2024 | | | (26,148 | ) |
Barclays Bank PLC | | USD | | | 2,858 | | | COP | | | 12,119,638 | | | 11/08/2024 | | | (120,080 | ) |
Barclays Bank PLC | | USD | | | 1,879 | | | GBP | | | 1,437 | | | 11/08/2024 | | | (26,073 | ) |
| | |
| |
14 | 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) | |
Barclays Bank PLC | | MYR | | | 73,284 | | | USD | | | 17,234 | | | 11/21/2024 | | $ | 494,276 | |
Barclays Bank PLC | | MYR | | | 39,008 | | | USD | | | 8,842 | | | 11/21/2024 | | | (68,206 | ) |
Barclays Bank PLC | | USD | | | 5,534 | | | HUF | | | 1,996,090 | | | 11/21/2024 | | | (219,056 | ) |
Barclays Bank PLC | | USD | | | 9989 | | | MYR | | | 43148 | | | 11/21/2024 | | | (133,665 | ) |
Barclays Bank PLC | | AUD | | | 3,009 | | | USD | | | 2,073 | | | 11/22/2024 | | | 92,583 | |
Barclays Bank PLC | | SEK | | | 47,014 | | | USD | | | 4,593 | | | 11/22/2024 | | | 177,061 | |
Barclays Bank PLC | | SEK | | | 5,351 | | | USD | | | 501 | | | 11/22/2024 | | | (1,465 | ) |
Barclays Bank PLC | | TWD | | | 74,216 | | | USD | | | 2,352 | | | 11/22/2024 | | | 24,836 | |
Barclays Bank PLC | | USD | | | 2,354 | | | AUD | | | 3,523 | | | 11/22/2024 | | | (35,285 | ) |
Barclays Bank PLC | | USD | | | 1,967 | | | NOK | | | 20,786 | | | 11/22/2024 | | | (77,210 | ) |
Barclays Bank PLC | | INR | | | 102,851 | | | USD | | | 1,221 | | | 12/06/2024 | | | (799 | ) |
Barclays Bank PLC | | NZD | | | 844 | | | USD | | | 517 | | | 12/06/2024 | | | 12,182 | |
Barclays Bank PLC | | USD | | | 7,227 | | | INR | | | 606,358 | | | 12/06/2024 | | | (24,206 | ) |
Barclays Bank PLC | | USD | | | 10,154 | | | NZD | | | 16,671 | | | 12/06/2024 | | | (187,897 | ) |
Barclays Bank PLC | | USD | | | 3,639 | | | JPY | | | 538,274 | | | 12/19/2024 | | | (75,330 | ) |
Barclays Bank PLC | | EUR | | | 1,702 | | | USD | | | 1,847 | | | 12/20/2024 | | | (7,751 | ) |
Barclays Bank PLC | | USD | | | 2,707 | | | CHF | | | 2,331 | | | 12/20/2024 | | | 6,524 | |
Barclays Bank PLC | | PHP | | | 98,356 | | | USD | | | 1,686 | | | 01/23/2025 | | | (1,447 | ) |
Barclays Bank PLC | | USD | | | 3,774 | | | PHP | | | 218,136 | | | 01/23/2025 | | | (32,299 | ) |
BNP Paribas SA | | CNH | | | 66,020 | | | USD | | | 9,464 | | | 11/21/2024 | | | 182,633 | |
BNP Paribas SA | | AUD | | | 2,656 | | | USD | | | 1,829 | | | 11/22/2024 | | | 80,429 | |
Citibank, NA | | CAD | | | 3563 | | | USD | | | 2,589 | | | 11/07/2024 | | | 29,802 | |
Citibank, NA | | USD | | | 704 | | | CAD | | | 952 | | | 11/07/2024 | | | (20,045 | ) |
Citibank, NA | | CLP | | | 3261200 | | | USD | | | 3575 | | | 11/08/2024 | | | 182,907 | |
Citibank, NA | | GBP | | | 1,164 | | | USD | | | 1,517 | | | 11/08/2024 | | | 15,970 | |
Citibank, NA | | USD | | | 436 | | | PEN | | | 1,621 | | | 11/08/2024 | | | (6,836 | ) |
Citibank, NA | | CZK | | | 36,788 | | | USD | | | 1,596 | | | 11/21/2024 | | | 14,678 | |
Citibank, NA | | USD | | | 1,374 | | | CZK | | | 32,064 | | | 11/21/2024 | | | 3,541 | |
Citibank, NA | | USD | | | 1328 | | | PLN | | | 5,176 | | | 11/21/2024 | | | (35,993 | ) |
Citibank, NA | | TWD | | | 220,736 | | | USD | | | 6,968 | | | 11/22/2024 | | | 46,362 | |
Citibank, NA | | USD | | | 5,239 | | | AUD | | | 7,852 | | | 11/22/2024 | | | (70,809 | ) |
Citibank, NA | | USD | | | 570 | | | INR | | | 48,005 | | | 12/06/2024 | | | 196 | |
Citibank, NA | | USD | | | 1,009 | | | NZD | | | 1,609 | | | 12/06/2024 | | | (47,104 | ) |
Citibank, NA | | KRW | | | 7,122,156 | | | USD | | | 5,319 | | | 01/17/2025 | | | 120,901 | |
Citibank, NA | | USD | | | 1,027 | | | KRW | | | 1,419,696 | | | 01/17/2025 | | | 9,494 | |
Deutsche Bank AG | | CAD | | | 5,362 | | | USD | | | 3,951 | | | 11/07/2024 | | | 99,348 | |
Deutsche Bank AG | | USD | | | 10,130 | | | CAD | | | 13,983 | | | 11/07/2024 | | | (85,381 | ) |
Deutsche Bank AG | | CLP | | | 7,156,965 | | | USD | | | 7,597 | | | 11/08/2024 | | | 152,826 | |
Deutsche Bank AG | | USD | | | 1813 | | | PEN | | | 6,826 | | | 11/08/2024 | | | (3,705 | ) |
Deutsche Bank AG | | CNH | | | 25,247 | | | USD | | | 3,588 | | | 11/21/2024 | | | 38,989 | |
Deutsche Bank AG | | HUF | | | 305,801 | | | USD | | | 860 | | | 11/21/2024 | | | 45,299 | |
Deutsche Bank AG | | PLN | | | 2,275 | | | USD | | | 569 | | | 11/21/2024 | | | 1,241 | |
Deutsche Bank AG | | PLN | | | 5,260 | | | USD | | | 1,303 | | | 11/21/2024 | | | (10,063 | ) |
Deutsche Bank AG | | USD | | | 5,338 | | | CNH | | | 37,130 | | | 11/21/2024 | | | (118,026 | ) |
Deutsche Bank AG | | AUD | | | 3,021 | | | USD | | | 2,077 | | | 11/22/2024 | | | 88,931 | |
Deutsche Bank AG | | NOK | | | 69,499 | | | USD | | | 6,499 | | | 11/22/2024 | | | 180,484 | |
Deutsche Bank AG | | TWD | | | 18,914 | | | USD | | | 606 | | | 11/22/2024 | | | 13,150 | |
Deutsche Bank AG | | USD | | | 3,080 | | | AUD | | | 4698 | | | 11/22/2024 | | | 12,461 | |
Deutsche Bank AG | | USD | | | 1,523 | | | SEK | | | 15415 | | | 11/22/2024 | | | (74,852 | ) |
Deutsche Bank AG | | NZD | | | 1,132 | | | USD | | | 681 | | | 12/06/2024 | | | 3,842 | |
Deutsche Bank AG | | USD | | | 879 | | | INR | | | 73,986 | | | 12/06/2024 | | | 325 | |
Deutsche Bank AG | | ZAR | | | 12,730 | | | USD | | | 716 | | | 12/19/2024 | | | (3,529 | ) |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 15 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | Unrealized
Appreciation
(Depreciation) | |
Deutsche Bank AG | | EUR | | | 8,541 | | | USD | | | 9226 | | | 12/20/2024 | | $ | (82,284 | ) |
Deutsche Bank AG | | USD | | | 3,124 | | | EUR | | | 2,892 | | | 12/20/2024 | | | 27,862 | |
Goldman Sachs Bank USA | | BRL | | | 33,785 | | | USD | | | 5,878 | | | 11/04/2024 | | | 33,960 | |
Goldman Sachs Bank USA | | USD | | | 5,971 | | | BRL | | | 33785 | | | 11/04/2024 | | | (126,886 | ) |
Goldman Sachs Bank USA | | GBP | | | 535 | | | USD | | | 702 | | | 11/08/2024 | | | 11,918 | |
Goldman Sachs Bank USA | | PEN | | | 4,510 | | | USD | | | 1,199 | | | 11/08/2024 | | | 3,721 | |
Goldman Sachs Bank USA | | CNH | | | 127,144 | | | USD | | | 18,211 | | | 11/21/2024 | | | 337,103 | |
Goldman Sachs Bank USA | | HUF | | | 432,357 | | | USD | | | 1,153 | | | 11/21/2024 | | | 1,381 | |
Goldman Sachs Bank USA | | USD | | | 4446 | | | MYR | | | 19,249 | | | 11/21/2024 | | | (48,864 | ) |
Goldman Sachs Bank USA | | USD | | | 3,099 | | | PLN | | | 12,071 | | | 11/21/2024 | | | (85,100 | ) |
Goldman Sachs Bank USA | | AUD | | | 1,114 | | | USD | | | 756 | | | 11/22/2024 | | | 22,858 | |
Goldman Sachs Bank USA | | TWD | | | 24,269 | | | USD | | | 772 | | | 11/22/2024 | | | 11,230 | |
Goldman Sachs Bank USA | | USD | | | 710 | | | SEK | | | 7,451 | | | 11/22/2024 | | | (9,728 | ) |
Goldman Sachs Bank USA | | USD | | | 6,799 | | | INR | | | 572599 | | | 12/06/2024 | | | 3,643 | |
Goldman Sachs Bank USA | | USD | | | 5,392 | | | MXN | | | 105,360 | | | 12/11/2024 | | | (159,597 | ) |
Goldman Sachs Bank USA | | JPY | | | 195686 | | | USD | | | 1315 | | | 12/19/2024 | | | 19,623 | |
Goldman Sachs Bank USA | | IDR | | | 14,267,602 | | | USD | | | 914 | | | 01/24/2025 | | | 8,166 | |
HSBC Bank USA | | AUD | | | 1,121 | | | USD | | | 738 | | | 11/22/2024 | | | 238 | |
JPMorgan Chase Bank, NA | | CAD | | | 1,020 | | | USD | | | 758 | | | 11/07/2024 | | | 24,946 | |
JPMorgan Chase Bank, NA | | USD | | | 1,690 | | | CAD | | | 2,299 | | | 11/07/2024 | | | (38,544 | ) |
JPMorgan Chase Bank, NA | | COP | | | 2,396,260 | | | USD | | | 573 | | | 11/08/2024 | | | 31,298 | |
JPMorgan Chase Bank, NA | | USD | | | 1,017 | | | CLP | | | 958,848 | | | 11/08/2024 | | | (20,151 | ) |
JPMorgan Chase Bank, NA | | CZK | | | 313,899 | | | USD | | | 13,821 | | | 11/21/2024 | | | 332,463 | |
JPMorgan Chase Bank, NA | | HUF | | | 715,669 | | | USD | | | 1991 | | | 11/21/2024 | | | 85,841 | |
JPMorgan Chase Bank, NA | | PLN | | | 2,153 | | | USD | | | 548 | | | 11/21/2024 | | | 10,335 | |
JPMorgan Chase Bank, NA | | USD | | | 1,182 | | | HUF | | | 437,764 | | | 11/21/2024 | | | (16,692 | ) |
JPMorgan Chase Bank, NA | | USD | | | 1,291 | | | PLN | | | 5,024 | | | 11/21/2024 | | | (36,458 | ) |
JPMorgan Chase Bank, NA | | AUD | | | 774 | | | USD | | | 529 | | | 11/22/2024 | | | 20,005 | |
JPMorgan Chase Bank, NA | | DKK | | | 24,799 | | | USD | | | 3,707 | | | 11/22/2024 | | | 87,265 | |
JPMorgan Chase Bank, NA | | NOK | | | 26,573 | | | USD | | | 2,494 | | | 11/22/2024 | | | 77,617 | |
JPMorgan Chase Bank, NA | | TWD | | | 16,100 | | | USD | | | 503 | | | 11/22/2024 | | | (1,629 | ) |
JPMorgan Chase Bank, NA | | USD | | | 5,868 | | | NOK | | | 63,582 | | | 11/22/2024 | | | (87,197 | ) |
JPMorgan Chase Bank, NA | | USD | | | 3,531 | | | SEK | | | 36,153 | | | 11/22/2024 | | | (134,653 | ) |
JPMorgan Chase Bank, NA | | USD | | | 418 | | | TWD | | | 13,313 | | | 11/22/2024 | | | (429 | ) |
JPMorgan Chase Bank, NA | | USD | | | 2077 | | | INR | | | 175,048 | | | 12/06/2024 | | | 1,977 | |
JPMorgan Chase Bank, NA | | USD | | | 5,046 | | | NZD | | | 8,344 | | | 12/06/2024 | | | (57,706 | ) |
JPMorgan Chase Bank, NA | | USD | | | 813 | | | HKD | | | 6,310 | | | 12/19/2024 | | | (906 | ) |
JPMorgan Chase Bank, NA | | USD | | | 3,188 | | | EUR | | | 2952 | | | 12/20/2024 | | | 29,491 | |
JPMorgan Chase Bank, NA | | IDR | | | 27,964,154 | | | USD | | | 1790 | | | 01/24/2025 | | | 15,431 | |
Morgan Stanley Capital Services, Inc. | | USD | | | 1,379 | | | CAD | | | 1,857 | | | 11/07/2024 | | | (44,690 | ) |
Morgan Stanley Capital Services, Inc. | | COP | | | 9,321,925 | | | USD | | | 2,221 | | | 11/08/2024 | | | 115,081 | |
Morgan Stanley Capital Services, Inc. | | PEN | | | 2,287 | | | USD | | | 606 | | | 11/08/2024 | | | 240 | |
Morgan Stanley Capital Services, Inc. | | USD | | | 778 | | | CLP | | | 726,662 | | | 11/08/2024 | | | (21,915 | ) |
Morgan Stanley Capital Services, Inc. | | USD | | | 2,878 | | | COP | | | 12,676,052 | | | 11/08/2024 | | | (14,307 | ) |
Morgan Stanley Capital Services, Inc. | | MYR | | | 13,470 | | | USD | | | 3180 | | | 11/21/2024 | | | 103,087 | |
| | |
| |
16 | 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) | |
Morgan Stanley Capital Services, Inc. | | USD | | | 15,582 | | | MYR | | | 68,920 | | | 11/21/2024 | | $ | 160,328 | |
Morgan Stanley Capital Services, Inc. | | AUD | | | 11,217 | | | USD | | | 7,711 | | | 11/22/2024 | | | 327,863 | |
Morgan Stanley Capital Services, Inc. | | NOK | | | 6,298 | | | USD | | | 591 | | | 11/22/2024 | | | 18,393 | |
Morgan Stanley Capital Services, Inc. | | SEK | | | 34639 | | | USD | | | 3,413 | | | 11/22/2024 | | | 158,760 | |
Morgan Stanley Capital Services, Inc. | | TWD | | | 212,074 | | | USD | | | 6701 | | | 11/22/2024 | | | 50,936 | |
Morgan Stanley Capital Services, Inc. | | USD | | | 8,019 | | | NOK | | | 84,817 | | | 11/22/2024 | | | (308,021 | ) |
Morgan Stanley Capital Services, Inc. | | USD | | | 1,949 | | | TWD | | | 62,630 | | | 11/22/2024 | | | 15,167 | |
Morgan Stanley Capital Services, Inc. | | MXN | | | 11,294 | | | USD | | | 580 | | | 12/11/2024 | | | 18,867 | |
Morgan Stanley Capital Services, Inc. | | MXN | | | 32,646 | | | USD | | | 1,619 | | | 12/11/2024 | | | (1,898 | ) |
Morgan Stanley Capital Services, Inc. | | USD | | | 1,724 | | | MXN | | | 33753 | | | 12/11/2024 | | | (48,194 | ) |
Morgan Stanley Capital Services, Inc. | | USD | | | 6,393 | | | JPY | | | 947,646 | | | 12/19/2024 | | | (118,892 | ) |
Morgan Stanley Capital Services, Inc. | | ZAR | | | 37,836 | | | USD | | | 2,147 | | | 12/19/2024 | | | 9,143 | |
Morgan Stanley Capital Services, Inc. | | EUR | | | 1,250 | | | USD | | | 1,363 | | | 12/20/2024 | | | 617 | |
Morgan Stanley Capital Services, Inc. | | COP | | | 12,676,052 | | | USD | | | 2,853 | | | 01/16/2025 | | | 14,754 | |
Morgan Stanley Capital Services, Inc. | | USD | | | 11,490 | | | IDR | | | 179,799,199 | | | 01/24/2025 | | | (80,097 | ) |
Natwest Markets PLC | | USD | | | 694 | | | DKK | | | 4,758 | | | 11/22/2024 | | | 607 | |
State Street Bank & Trust Co. | | CAD | | | 1,874 | | | USD | | | 1,383 | | | 11/07/2024 | | | 36,365 | |
State Street Bank & Trust Co. | | GBP | | | 691 | | | USD | | | 902 | | | 11/08/2024 | | | 10,809 | |
State Street Bank & Trust Co. | | USD | | | 1823 | | | GBP | | | 1,385 | | | 11/08/2024 | | | (36,766 | ) |
State Street Bank & Trust Co. | | CZK | | | 29,899 | | | USD | | | 1,316 | | | 11/21/2024 | | | 30,675 | |
State Street Bank & Trust Co. | | THB | | | 283,747 | | | USD | | | 8,541 | | | 11/21/2024 | | | 122,877 | |
State Street Bank & Trust Co. | | THB | | | 42732 | | | USD | | | 1265 | | | 11/21/2024 | | | (2,330 | ) |
State Street Bank & Trust Co. | | USD | | | 805 | | | HUF | | | 295206 | | | 11/21/2024 | | | (19,291 | ) |
State Street Bank & Trust Co. | | USD | | | 12958 | | | THB | | | 429,121 | | | 11/21/2024 | | | (227,432 | ) |
State Street Bank & Trust Co. | | AUD | | | 237 | | | USD | | | 160 | | | 11/22/2024 | | | 4,152 | |
State Street Bank & Trust Co. | | NOK | | | 4354 | | | USD | | | 397 | | | 11/22/2024 | | | 991 | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 17 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | Unrealized
Appreciation
(Depreciation) | |
State Street Bank & Trust Co. | | SEK | | | 10,711 | | | USD | | | 1,055 | | | 11/22/2024 | | $ | 48,343 | |
State Street Bank & Trust Co. | | USD | | | 1,822 | | | AUD | | | 2656 | | | 11/22/2024 | | | (73,474 | ) |
State Street Bank & Trust Co. | | USD | | | 220 | | | NOK | | | 2329 | | | 11/22/2024 | | | (7,908 | ) |
State Street Bank & Trust Co. | | USD | | | 487 | | | SEK | | | 4,943 | | | 11/22/2024 | | | (22,602 | ) |
State Street Bank & Trust Co. | | NZD | | | 1,093 | | | USD | | | 681 | | | 12/06/2024 | | | 27,823 | |
State Street Bank & Trust Co. | | MXN | | | 9,647 | | | USD | | | 480 | | | 12/11/2024 | | | 723 | |
State Street Bank & Trust Co. | | USD | | | 431 | | | MXN | | | 8454 | | | 12/11/2024 | | | (11,093 | ) |
State Street Bank & Trust Co. | | SGD | | | 780 | | | USD | | | 597 | | | 12/17/2024 | | | 5,256 | |
State Street Bank & Trust Co. | | JPY | | | 21,624 | | | USD | | | 146 | | | 12/19/2024 | | | 2,691 | |
State Street Bank & Trust Co. | | USD | | | 426 | | | ZAR | | | 7482 | | | 12/19/2024 | | | (3,500 | ) |
State Street Bank & Trust Co. | | CHF | | | 483 | | | USD | | | 561 | | | 12/20/2024 | | | (1,328 | ) |
UBS AG | | BRL | | | 6,563 | | | USD | | | 1,162 | | | 11/04/2024 | | | 26,980 | |
UBS AG | | USD | | | 1,168 | | | BRL | | | 6,563 | | | 11/04/2024 | | | (32,473 | ) |
UBS AG | | USD | | | 836 | | | CAD | | | 1,163 | | | 11/07/2024 | | | (940 | ) |
UBS AG | | CZK | | | 32,287 | | | USD | | | 1,398 | | | 11/21/2024 | | | 10,219 | |
UBS AG | | PLN | | | 4,949 | | | USD | | | 1,251 | | | 11/21/2024 | | | 15,161 | |
UBS AG | | USD | | | 4,024 | | | CNH | | | 28,649 | | | 11/21/2024 | | | 3,803 | |
UBS AG | | USD | | | 4005 | | | CZK | | | 92,009 | | | 11/21/2024 | | | (51,481 | ) |
UBS AG | | USD | | | 772 | | | HUF | | | 274,282 | | | 11/21/2024 | | | (41,773 | ) |
UBS AG | | USD | | | 1,602 | | | PLN | | | 6,161 | | | 11/21/2024 | | | (63,408 | ) |
UBS AG | | AUD | | | 2,715 | | | USD | | | 1,846 | | | 11/22/2024 | | | 58,526 | |
UBS AG | | NOK | | | 66,815 | | | USD | | | 6,370 | | | 11/22/2024 | | | 295,399 | |
UBS AG | | USD | | | 729 | | | AUD | | | 1,079 | | | 11/22/2024 | | | (18,624 | ) |
UBS AG | | USD | | | 6,147 | | | TWD | | | 196643 | | | 11/22/2024 | | | 18,933 | |
UBS AG | | MXN | | | 14472 | | | USD | | | 740 | | | 12/11/2024 | | | 21,051 | |
UBS AG | | EUR | | | 1,037 | | | USD | | | 1,120 | | | 12/20/2024 | | | (10,304 | ) |
UBS AG | | USD | | | 696 | | | KRW | | | 953,472 | | | 01/17/2025 | | | 336 | |
UBS AG | | USD | | | 358 | | | KRW | | | 484,806 | | | 01/17/2025 | | | (3,889 | ) |
| | | | | | | | | | | | | | | | | | |
| | $ | 1,157,877 | |
| | | | |
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) | |
| Goldman Sachs International | | | USD 110,190 | | | | 04/25/2030 | | | | 1.900% | | | | CPI# | | | | Maturity | | | $ | 3,267,698 | | | $ | – 0 | – | | $ | 3,267,698 | |
| Goldman Sachs International | | | USD 46,980 | | | | 03/16/2031 | | | | 2.289% | | | | CPI# | | | | Maturity | | | | 516,746 | | | | – 0 | – | | | 516,746 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | 3,784,444 | | | $ | – 0 | – | | $ | 3,784,444 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| # | Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI). |
| | |
| |
18 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED 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 | |
Bank of America, NA | |
MLABGLIN(1) | | SOFR plus 0.47% | | Quarterly | | | USD | | | | 35,329 | | | | 04/15/2025 | | | $ | (869,315 | ) |
Citibank, NA | |
Bloomberg Commodity Index | | 0.00% | | Maturity | | | USD | | | | 14,692 | | | | 12/16/2024 | | | | 224,851 | |
Merrill Lynch International | | | | | | | | | | | | | | | | | | | | |
Bloomberg Commodity Index | | 0.00% | | Maturity | | | USD | | | | 22,696 | | | | 12/16/2024 | | | | 347,349 | |
|
Pay Total Return on Reference Obligation | |
UBS AG | |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.42% | | Quarterly | | | USD | | | | 3,903 | | | | 02/18/2025 | | | | (46,278 | ) |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.54% | | Quarterly | | | USD | | | | 16,647 | | | | 04/15/2025 | | | | 1,048,623 | |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.70% | | Quarterly | | | USD | | | | 28,871 | | | | 10/15/2025 | | | | 1,812,537 | |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.70% | | Quarterly | | | USD | | | | 15,680 | | | | 10/15/2025 | | | | 976,097 | |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.71% | | Quarterly | | | USD | | | | 11,061 | | | | 10/15/2025 | | | | 367,180 | |
FTSE EPRA/NAREIT Developed Real Estate Index | | OBFR plus 0.69% | | Quarterly | | | USD | | | | 6,497 | | | | 10/15/2025 | | | | 215,636 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 4,076,680 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Represents entire or partial securities out on loan. See Note E for securities lending information. |
| (b) | Non-income producing security. |
| (c) | Fair valued by the Adviser. |
| (d) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (e) | Restricted and illiquid security. |
| | | | | | | | | | | | | | | | |
Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Gazprom PJSC | | | 09/28/2021 – 01/11/2022 | | | $ | 3,987,580 | | | $ | – 0 | – | | | 0.00 | % |
LUKOIL PJSC | | | 01/07/2021 – 08/19/2022 | | | | 1,631,127 | | | | – 0 | – | | | 0.00 | % |
| (f) | 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 October 31, 2024, the aggregate market value of these securities amounted to $150,639 or 0.0% of net assets. |
| (g) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov. Additionally, shareholder reports for AB funds can be obtained by calling AB at (800) 227-4618. |
| (h) | Affiliated investments. |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 19 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| (i) | The rate shown represents the 7-day yield as of period end. |
| | |
Currency Abbreviation: 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
CVR – Contingent Value Right
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
MSCI – Morgan Stanley Capital International
NAREIT – National Association of Real Estate Investment Trusts
OBFR – Overnight Bank Funding Rate
OMXS – Stockholm Stock Exchange
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
| (1) | The following table represents the 50 largest equity basket holdings underlying the total return swap in MLABGLIN as of October 31, 2024. |
| | | | | | | | | | | | |
| Security Description | | Shares | | | Current Notional | | | Percent of
Basket’s Value | |
Enbridge, Inc. | | | 57,665 | | | | USD 2,326,552 | | | | 7.0 | % |
American Tower Corp. | | | 9,195 | | | | 1,963,458 | | | | 6.0 | % |
Vinci SA | | | 16,150 | | | | 1,800,676 | | | | 5.0 | % |
National Grid PLC | | | 1,409 | | | | 1,768,983 | | | | 5.0 | % |
TC Energy Corp. | | | 25,977 | | | | 1,206,838 | | | | 3.0 | % |
Williams Cos., Inc. (The) | | | 21,297 | | | | 1,115,307 | | | | 3.0 | % |
Sempra | | | 12,414 | | | | 1,034,934 | | | | 3.0 | % |
ONEOK, Inc. | | | 10,650 | | | | 1,031,769 | | | | 3.0 | % |
Energy Transfer LP | | | 62,073 | | | | 1,022,958 | | | | 3.0 | % |
Enterprise Products Partners LP | | | 31,701 | | | | 908,553 | | | | 3.0 | % |
| | |
| |
20 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Security Description | | Shares | | | Current Notional | | | Percent of
Basket’s Value | |
Crown Castle, Inc. | | | 8,361 | | | | USD 898,675 | | | | 3.0 | % |
Cheniere Energy, Inc. | | | 4,481 | | | | 857,543 | | | | 2.0 | % |
Kinder Morgan, Inc. | | | 33,652 | | | | 824,821 | | | | 2.0 | % |
Transurban Group | | | 95,366 | | | | 793,925 | | | | 2.0 | % |
PG&E Corp. | | | 39,192 | | | | 792,468 | | | | 2.0 | % |
Exelon Corp. | | | 18,735 | | | | 736,280 | | | | 2.0 | % |
Pembina Pipeline Corp. | | | 15,968 | | | | 667,258 | | | | 2.0 | % |
Consolidated Edison, Inc. | | | 6,523 | | | | 663,301 | | | | 2.0 | % |
Targa Resources Corp. | | | 3,769 | | | | 629,261 | | | | 2.0 | % |
Ferrovial SE | | | 15,688 | | | | 628,111 | | | | 2.0 | % |
Cellnex Telecom SA | | | 16,954 | | | | 620,285 | | | | 2.0 | % |
Fortis, Inc. (Canada) | | | 13,738 | | | | 593,588 | | | | 2.0 | % |
Edison International | | | 7,177 | | | | 591,385 | | | | 2.0 | % |
American Water Works Co., Inc. | | | 3,963 | | | | 547,384 | | | | 2.0 | % |
Aena SME SA | | | 2,116 | | | | 466,243 | | | | 1.0 | % |
SBA Communications Corp. | | | 1,929 | | | | 442,640 | | | | 1.0 | % |
Eversource Energy | | | 6,603 | | | | 434,839 | | | | 1.0 | % |
CenterPoint Energy, Inc. | | | 14,219 | | | | 419,889 | | | | 1.0 | % |
Atmos Energy Corp. | | | 2,690 | | | | 373,253 | | | | 1.0 | % |
Terna—Rete Elettrica Naziona | | | 39,693 | | | | 343,195 | | | | 1.0 | % |
MPLX LP | | | 7,315 | | | | 324,940 | | | | 1.0 | % |
Snam SpA | | | 60,038 | | | | 287,967 | | | | 1.0 | % |
Hydro One Ltd. | | | 8,898 | | | | 286,162 | | | | 1.0 | % |
United Utilities Group PLC | | | 211 | | | | 277,349 | | | | 1.0 | % |
NiSource, Inc. | | | 7,856 | | | | 276,207 | | | | 1.0 | % |
Severn Trent PLC | | | 83 | | | | 272,982 | | | | 1.0 | % |
Hong Kong & China Gas Co., Ltd. | | | 336,382 | | | | 260,905 | | | | 1.0 | % |
Tokyo Gas Co., Ltd. | | | 9,821 | | | | 242,999 | | | | 1.0 | % |
Redeia Corporacion SA | | | 11,963 | | | | 220,786 | | | | 1.0 | % |
APA Group | | | 46,227 | | | | 211,042 | | | | 1.0 | % |
Essential Utilities, Inc. | | | 5,274 | | | | 203,585 | | | | 1.0 | % |
Brookfield Infrastructure Partners LP | | | 5,797 | | | | 198,504 | | | | 1.0 | % |
Keyera Corp. | | | 6,399 | | | | 196,280 | | | | 1.0 | % |
China Tower Corp Ltd. | | | 1,420,387 | | | | 191,836 | | | | 1.0 | % |
ENN Energy Holdings Ltd. | | | 27,255 | | | | 191,760 | | | | 1.0 | % |
Auckland International Airport Ltd. | | | 43,970 | | | | 191,030 | | | | 1.0 | % |
Plains All American Pipeline LP | | | 11,331 | | | | 184,360 | | | | 1.0 | % |
Grupo Aeroportuario del Pacifico SAB de CV | | | 1,054 | | | | 183,564 | | | | 1.0 | % |
Getlink SE | | | 10,529 | | | | 178,156 | | | | 1.0 | % |
Western Midstream Partners LP | | | 4,545 | | | | 171,500 | | | | 0.0 | % |
Other Long | | | 876,060 | | | | 4,236,925 | | | | 5.0 | % |
See notes to consolidated financial statements.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 21 |
CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES
October 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $446,337,213) | | $ | 510,172,235 | (a) |
Affiliated issuers (cost $170,861,050—including investment of cash collateral for securities loaned of $4,822,604) | | | 170,861,050 | |
Cash collateral due from broker | | | 18,316,677 | |
Foreign currencies, at value (cost $2,087,273) | | | 2,049,374 | |
Unrealized appreciation on forward currency exchange contracts | | | 7,467,856 | |
Unrealized appreciation on total return swaps | | | 4,992,273 | |
Unrealized appreciation on inflation swaps | | | 3,784,444 | |
Receivable for investment securities sold and foreign currency transactions | | | 1,221,525 | |
Unaffiliated dividends receivable | | | 899,452 | |
Affiliated dividends receivable | | | 474,125 | |
Receivable due from Adviser | | | 25,267 | |
Receivable for capital stock sold | | | 14,918 | |
Other assets | | | 4,266 | |
| | | | |
Total assets | | | 720,283,462 | |
| | | | |
| Liabilities | |
Due to custodian | | | 161,981 | |
Cash collateral due to broker | | | 7,120,000 | |
Unrealized depreciation on forward currency exchange contracts | | | 6,309,979 | |
Payable for collateral received on securities loaned | | | 4,822,604 | |
Payable for variation margin on futures | | | 2,054,030 | |
Payable for investment securities purchased | | | 1,537,765 | |
Unrealized depreciation on total return swaps | | | 915,593 | |
Advisory fee payable | | | 452,735 | |
Payable for capital stock redeemed | | | 393,732 | |
Distribution fee payable | | | 121,750 | |
Administrative fee payable | | | 56,971 | |
Transfer Agent fee payable | | | 9,367 | |
Directors’ fees payable | | | 2,526 | |
Accrued expenses | | | 377,166 | |
| | | | |
Total liabilities | | | 24,336,199 | |
| | | | |
Net Assets | | $ | 695,947,263 | |
| | | | |
| Composition of Net Assets | |
Capital stock, at par | | $ | 75,923 | |
Additional paid-in capital | | | 838,099,464 | |
Accumulated loss | | | (142,228,124 | ) |
| | | | |
Net Assets | | $ | 695,947,263 | |
| | | | |
| (a) | Includes securities on loan with a value of $13,082,726 (see Note E). |
See notes to consolidated financial statements.
| | |
| |
22 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
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 | | $ | 3,159,549 | | | | 336,423 | | | $ | 9.39 | * |
| |
| C | | $ | 54,636 | | | | 5,712 | | | $ | 9.57 | |
| |
| Advisor | | $ | 11,880,380 | | | | 1,269,501 | | | $ | 9.36 | |
| |
| 1 | | $ | 558,067,145 | | | | 61,030,194 | | | $ | 9.14 | |
| |
| Z | | $ | 122,785,553 | | | | 13,280,672 | | | $ | 9.25 | |
| |
| * | The maximum offering price per share for Class A shares was $9.81 which reflects a sales charge of 4.25%. |
See notes to consolidated financial statements.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 23 |
CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended October 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Dividends | | | | | | | | |
Unaffiliated issuers (net of foreign taxes withheld of $768,275) | | $ | 14,535,262 | | | | | |
Affiliated issuers | | | 9,741,873 | | | | | |
Interest (net of foreign taxes withheld of $10) | | | 480,322 | | | | | |
Securities lending income | | | 559,742 | | | $ | 25,317,199 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 5,583,294 | | | | | |
Distribution fee—Class A | | | 8,425 | | | | | |
Distribution fee—Class C | | | 1,889 | | | | | |
Distribution fee—Class R | | | 190 | | | | | |
Distribution fee—Class K | | | 819 | | | | | |
Distribution fee—Class 1 | | | 1,444,354 | | | | | |
Transfer agency—Class A | | | 3,713 | | | | | |
Transfer agency—Class C | | | 256 | | | | | |
Transfer agency—Advisor Class | | | 20,118 | | | | | |
Transfer agency—Class R | | | 100 | | | | | |
Transfer agency—Class K | | | 660 | | | | | |
Transfer agency—Class I | | | 881 | | | | | |
Transfer agency—Class 1 | | | 105,166 | | | | | |
Transfer agency—Class Z | | | 38,417 | | | | | |
Custody and accounting | | | 169,518 | | | | | |
Audit and tax | | | 142,355 | | | | | |
Registration fees | | | 134,437 | | | | | |
Administrative | | | 98,353 | | | | | |
Legal | | | 58,389 | | | | | |
Printing | | | 50,246 | | | | | |
Directors’ fees | | | 29,875 | | | | | |
Miscellaneous | | | 61,793 | | | | | |
| | | | | | | | |
Total expenses | | | 7,953,248 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | | | (290,816 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 7,662,432 | |
| | | | | | | | |
Net investment income | | | | | | | 17,654,767 | |
| | | | | | | | |
See notes to consolidated financial statements.
| | |
| |
24 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED STATEMENT OF OPERATIONS (continued)
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions | | | | | | $ | 24,396,692 | |
Forward currency exchange contracts | | | | | | | 2,695,000 | |
Futures | | | | | | | (2,920,123 | ) |
Swaps | | | | | | | (3,028,585 | ) |
Foreign currency transactions | | | | | | | (263,452 | ) |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments | | | | | | | 76,048,890 | |
Forward currency exchange contracts | | | | | | | 1,080,034 | |
Futures | | | | | | | (78,937 | ) |
Swaps | | | | | | | 1,742,413 | |
Foreign currency denominated assets and liabilities | | | | | | | 12,621 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 99,684,553 | |
| | | | | | | | |
Contributions from Affiliates (see Note B) | | | | | | | 1,183 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 117,340,503 | |
| | | | | | | | |
See notes to consolidated financial statements.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 25 |
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 17,654,767 | | | $ | 23,404,947 | |
Net realized gain (loss) on investment and foreign currency transactions | | | 20,879,532 | | | | (55,790,532 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 78,805,021 | | | | 30,606,005 | |
Contributions from Affiliates (see Note B) | | | 1,183 | | | | – 0 | – |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 117,340,503 | | | | (1,779,580 | ) |
Distributions to Shareholders | | | | | | | | |
Class A | | | (107,810 | ) | | | (527,694 | ) |
Class C | | | (7,769 | ) | | | (41,047 | ) |
Advisor Class | | | (891,686 | ) | | | (2,418,667 | ) |
Class R | | | (2,408 | ) | | | (4,679 | ) |
Class K | | | (25,534 | ) | | | (80,877 | ) |
Class I | | | (348,776 | ) | | | (2,013,871 | ) |
Class 1 | | | (22,465,107 | ) | | | (50,008,810 | ) |
Class 2 | | | – 0 | – | | | (737 | ) |
Class Z | | | (7,372,835 | ) | | | (26,372,386 | ) |
| Capital Stock Transactions | | | | | | | | |
Net decrease | | | (172,410,180 | ) | | | (164,192,919 | ) |
| | | | | | | | |
Total decrease | | | (86,291,602 | ) | | | (247,441,267 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 782,238,865 | | | | 1,029,680,132 | |
| | | | | | | | |
End of period | | $ | 695,947,263 | | | $ | 782,238,865 | |
| | | | | | | | |
See notes to consolidated financial statements.
| | |
| |
26 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 31, 2024
NOTE A
Significant Accounting Policies
AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of seven portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB All Market Real Return Portfolio (the “Fund”), a diversified portfolio. As part of the Fund’s investment strategy, the Fund seeks to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary. As of October 31, 2024, consolidated net assets of the Fund were $695,947,263, of which $100,805,699, or 14%, 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 offers Class A, Class C, Advisor Class, Class 1 and Class Z shares. Class B, Class R, Class K, Class I, Class 2 and Class T shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. Effective August 30, 2024, Class I shares of the Fund were liquidated. Effective December 1, 2023, Class 2 shares of the Fund were liquidated. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class A shares are sold with 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. Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Advisor Class, Class 1 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
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 27 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the consolidated financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.
1. Security Valuation
Portfolio securities are valued at 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Common Stocks: | | | | | | | | | | | | | | | | |
Real Estate | | $ | 172,832,924 | | | $ | 78,365,731 | | | $ | – 0 | – | | $ | 251,198,655 | |
Energy | | | 31,659,196 | | | | 26,203,276 | | | | 0 | (a) | | | 57,862,472 | |
Materials | | | 19,537,491 | | | | 24,530,540 | | | | 0 | (a) | | | 44,068,031 | |
Information Technology | | | 33,187,016 | | | | 2,736,310 | | | | 0 | (a) | | | 35,923,326 | |
Industrials | | | 17,142,608 | | | | 9,447,426 | | | | – 0 | – | | | 26,590,034 | |
Financials | | | 14,755,946 | | | | 7,339,445 | | | | – 0 | – | | | 22,095,391 | |
Health Care | | | 15,356,330 | | | | 3,903,261 | | | | 1,348 | | | | 19,260,939 | |
Consumer Discretionary | | | 9,943,882 | | | | 4,081,220 | | | | 0 | (a) | | | 14,025,102 | |
Communication Services | | | 8,578,079 | | | | 1,101,041 | | | | – 0 | – | | | 9,679,120 | |
Utilities | | | 3,404,144 | | | | 4,744,349 | | | | – 0 | – | | | 8,148,493 | |
Consumer Staples | | | 4,283,508 | | | | 3,020,935 | | | | – 0 | – | | | 7,304,443 | |
Investment Companies | | | 14,016,229 | | | | – 0 | – | | | – 0 | – | | | 14,016,229 | |
Warrants | | | – 0 | – | | | – 0 | – | | | 0 | (a) | | | – 0 | – |
Short-Term Investments | | | 166,038,446 | | | | – 0 | – | | | – 0 | – | | | 166,038,446 | |
Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | | | 4,822,604 | | | | – 0 | – | | | – 0 | – | | | 4,822,604 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 515,558,403 | | | | 165,473,534 | | | | 1,348 | (a) | | | 681,033,285 | |
Other Financial Instruments(b): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | | 8,084,874 | | | | – 0 | – | | | – 0 | – | | | 8,084,874 | (c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | 7,467,856 | | | | – 0 | – | | | 7,467,856 | |
Inflation (CPI) Swaps | | | – 0 | – | | | 3,784,444 | | | | – 0 | – | | | 3,784,444 | |
Total Return Swaps | | | – 0 | – | | | 4,992,273 | | | | – 0 | – | | | 4,992,273 | |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (8,663,599 | ) | | | – 0 | – | | | – 0 | – | | | (8,663,599 | )(c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | (6,309,979 | ) | | | – 0 | – | | | (6,309,979 | ) |
Total Return Swaps | | | – 0 | – | | | (915,593 | ) | | | – 0 | – | | | (915,593 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 514,979,678 | | | $ | 174,492,535 | | | $ | 1,348 | (a) | | $ | 689,473,561 | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| (a) | The Fund held securities with zero market value at period end. |
| (b) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments 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.
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.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
If, during a taxable year, the Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for federal income tax purposes. Note that the loss from the Subsidiary’s contemplated activities also cannot be carried forward to reduce future Subsidiary’s income in subsequent years. However, if the Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Fund as income for federal income tax purposes.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) 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 real estate investment trust (“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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
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 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%, 1.30% and 1.05% of daily average net assets for Class A, Class C, Advisor Class, Class 1 and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2025. For the year ended October 31, 2024, such reimbursement amounted to $55.
The Subsidiary has entered into a separate agreement with the Adviser for the management of the Subsidiary’s portfolio. The Adviser receives no compensation from the Subsidiary for its services under the agreement.
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2024, the reimbursement for such services amounted to $98,353.
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 $96,875 for the year ended October 31, 2024.
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 $139 from the sale of Class A shares and received $1 and $-0- in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2024.
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NOTES TO CONSOLIDATED 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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2024, such waiver amounted to $283,985.
A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
10/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
10/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 278,916 | | | $ | 384,510 | | | $ | 497,388 | | | $ | 166,038 | | | $ | 9,742 | |
Government Money Market Portfolio* | | | 8,078 | | | | 114,224 | | | | 117,479 | | | | 4,823 | | | | 92 | |
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Total | | | | | | | | | | | | | | $ | 170,861 | | | $ | 9,834 | |
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| * | Investments of cash collateral for securities lending transactions (see Note E). |
During the year ended October 31, 2024, the Adviser reimbursed the Fund $1,183 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 1940 Act. 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.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
There are no distribution and servicing fees on the Advisor Class 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 $160,792, $17,203, $19,724 and $1,941,749 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, and the share class is active, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 479,885,056 | | | $ | 550,258,870 | |
U.S. government securities | | | – 0 | – | | | – 0 | – |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 976,874,195 | |
| | | | |
Gross unrealized appreciation | | $ | 106,910,683 | |
Gross unrealized depreciation | | | (385,160,785 | ) |
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Net unrealized depreciation | | $ | (278,250,102 | ) |
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1. Derivative Financial Instruments
The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.
The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:
The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.
Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the consolidated statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the year ended October 31, 2024, 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”.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.
During the year ended October 31, 2024, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.
The Fund may enter into swaps for investment purposes or 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” 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, rates or indexes for a specified amount of an underlying asset or inflation. 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, inflation 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
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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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Inflation (CPI) Swaps:
Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.
During the year ended October 31, 2024, 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 year ended October 31, 2024, 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
| | |
| |
40 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED 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 year ended October 31, 2024, 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 | | Receivable for variation margin on futures | | $ | 20,247 | * | | Payable for variation margin on futures | | $ | 852,430 | * |
| | | | |
Commodity contracts | | Receivable for variation margin on futures | | | 8,064,627 | * | | Payable for variation margin on futures | | | 7,811,169 | * |
| | | | |
Foreign currency contracts | | Unrealized appreciation on forward currency exchange contracts | | | 7,467,856 | | | Unrealized depreciation on forward currency exchange contracts | | | 6,309,979 | |
| | | | |
Interest rate contracts | | Unrealized appreciation on inflation swaps | | | 3,784,444 | | | | | | | |
| | | | |
Commodity contracts | | Unrealized appreciation on total return swaps | | | 572,200 | | | | | | | |
| | | | |
Equity contracts | | Unrealized appreciation on total return swaps | | | 4,420,073 | | | Unrealized depreciation on total return swaps | | | 915,593 | |
| | | | | | | | | | | | |
Total | | | | $ | 24,329,447 | | | | | $ | 15,889,171 | |
| | | | | | | | | | | | |
| * | Only variation margin receivable/payable at period end is reported within the consolidated statement of assets and liabilities. |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 41 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 | | $ | 2,305,228 | | | $ | (555,826 | ) |
| | | |
Commodity contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | | (5,225,351 | ) | | | 476,889 | |
| | | |
Foreign currency contracts | | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts | | | 2,695,000 | | | | 1,080,034 | |
| | | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | 109,000 | | | | (739,675 | ) |
| | | |
Commodity contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (2,156,658 | ) | | | 1,300,642 | |
| | | |
Equity contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (980,927 | ) | | | 1,181,446 | |
| | | | | | | | | | |
Total | | | | $ | (3,253,708 | ) | | $ | 2,743,510 | |
| | | | | | | | | | |
| | |
| |
42 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 238,881,815 | |
Average notional amount of sale contracts | | $ | 30,891,441 | |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 349,682,977 | |
Average principal amount of sale contracts | | $ | 359,110,257 | |
Inflation Swaps: | | | | |
Average notional amount | | $ | 159,726,923 | |
Total Return Swaps: | | | | |
Average notional amount | | $ | 128,777,443 | |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the consolidated statement of assets and liabilities.
All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2024. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.
AB All Market Real Return Portfolio
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Assets
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Received* | | | Security
Collateral
Received* | | | Net Amount
of Derivative
Assets | |
Bank of America, NA | | $ | 2,035,157 | | | $ | (2,035,157 | ) | | $ | – 0 | – | | $ | –0 | – | | $ | – 0 | – |
Barclays Bank PLC | | | 1,175,562 | | | | (1,175,562 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
BNP Paribas SA | | | 80,429 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 80,429 | |
Citibank, NA | | | 423,851 | | | | (180,787 | ) | | | (243,064 | ) | | | – 0 | – | | | – 0 | – |
Deutsche Bank AG | | | 664,758 | | | | (295,556 | ) | | | – 0 | – | | | – 0 | – | | | 369,202 | |
Goldman Sachs Bank USA/ Goldman Sachs International | | | 4,238,047 | | | | (430,175 | ) | | | (3,380,000 | ) | | | – 0 | – | | | 427,872 | |
HSBC Bank USA | | | 238 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 238 | |
JPMorgan Chase Bank, NA | | | 716,669 | | | | (394,365 | ) | | | – 0 | – | | | – 0 | – | | | 322,304 | |
Morgan Stanley Capital Services, Inc. | | | 993,236 | | | | (638,014 | ) | | | (355,222 | ) | | | – 0 | – | | | – 0 | – |
Natwest Markets PLC | | | 607 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 607 | |
State Street Bank & Trust Co. | | | 290,705 | | | | (290,705 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
UBS AG | | | 4,870,481 | | | | (269,170 | ) | | | (2,940,000 | ) | | | – 0 | – | | | 1,661,311 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 15,489,740 | | | $ | (5,709,491 | ) | | $ | (6,918,286 | ) | | $ | – 0 | – | | $ | 2,861,963 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 43 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Liabilities
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net Amount
of Derivative
Liabilities | |
Australia and New Zealand Banking Group Ltd. | | $ | 55,602 | | | $ | – 0 | – | | $ | – 0 | – | | $ | –0 | – | | $ | 55,602 | |
Bank of America, NA | | | 3,291,358 | | | | (2,035,157 | ) | | | (920,000 | ) | | | – 0 | – | | | 336,201 | |
Barclays Bank PLC | | | 1,182,537 | | | | (1,175,562 | ) | | | – 0 | – | | | – 0 | – | | | 6,975 | |
Citibank, NA | | | 180,787 | | | | (180,787 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Deutsche Bank AG | | | 295,556 | | | | (295,556 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Goldman Sachs Bank USA/Goldman Sachs International | | | 430,175 | | | | (430,175 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
JPMorgan Chase Bank, NA | | | 394,365 | | | | (394,365 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Morgan Stanley Capital Services, Inc. | | | 638,014 | | | | (638,014 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
State Street Bank & Trust Co. | | | 405,724 | | | | (290,705 | ) | | | – 0 | – | | | – 0 | – | | | 115,019 | |
UBS AG | | | 269,170 | | | | (269,170 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,143,288 | | | $ | (5,709,491 | ) | | $ | (920,000 | ) | | $ | –0 | – | | $ | 513,797 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | The actual collateral received/pledged may be more than the amount reported due to over-collateralization. |
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty. |
| | | | | | | | | | | | | | | | | | | | |
AllianceBernstein Cayman Inflation Strategy, Ltd. | |
Counterparty | | Derivative
Assets
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Received* | | | Security
Collateral
Received* | | | Net Amount
of Derivative
Assets | |
BNP Paribas SA | | $ | 182,633 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 182,633 | |
Citibank, NA | | | 224,851 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 224,851 | |
Merrill Lynch International | | | 347,349 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 347,349 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 754,833 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 754,833 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Liabilities
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net Amount
of Derivative
Liabilities | |
Deutsche Bank AG | | $ | 82,284 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 82,284 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 82,284 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 82,284 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | 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. |
| | |
| |
44 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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. If 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 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,
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 45 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the consolidated statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the consolidated statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund’s share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.
A summary of the Fund’s transactions surrounding securities lending for the year ended October 31, 2024 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 | |
| $ | 13,082,726 | | | $ | 4,822,604 | | | $ | 9,341,778 | | | $ | 467,435 | | | $ | 92,307 | | | $ | 6,776 | |
| | |
| |
46 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE F
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | |
Shares sold | | | 12,451 | | | | 163,872 | | | | | | | $ | 111,857 | | | $ | 1,439,758 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 11,479 | | | | 56,810 | | | | | | | | 97,344 | | | | 497,656 | | | | | |
| | | | | |
Shares converted from Class C | | | 22,537 | | | | 112 | | | | | | | | 200,236 | | | | 981 | | | | | |
| | | | | |
Shares redeemed | | | (380,798 | ) | | | (281,777 | ) | | | | | | | (3,340,741 | ) | | | (2,471,495 | ) | | | | |
| | | | | |
Net decrease | | | (334,331 | ) | | | (60,983 | ) | | | | | | $ | (2,931,304 | ) | | $ | (533,100 | ) | | | | |
| | | | | |
| Class C | | | | | |
Shares sold | | | 85 | | | | 71 | | | | | | | $ | 780 | | | $ | 635 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 694 | | | | 4,357 | | | | | | | | 6,047 | | | | 39,080 | | | | | |
| | | | | |
Shares converted to Class A | | | (22,032 | ) | | | (109 | ) | | | | | | | (200,236 | ) | | | (981 | ) | | | | |
| | | | | |
Shares redeemed | | | (10,066 | ) | | | (28,932 | ) | | | | | | | (90,724 | ) | | | (257,538 | ) | | | | |
| | | | | |
Net decrease | | | (31,319 | ) | | | (24,613 | ) | | | | | | $ | (284,133 | ) | | $ | (218,804 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 307,241 | | | | 789,004 | | | | | | | $ | 2,699,889 | | | $ | 6,886,700 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 90,701 | | | | 189,885 | | | | | | | | 764,605 | | | | 1,657,704 | | | | | |
| | | | | |
Shares redeemed | | | (1,770,041 | ) | | | (1,807,728 | ) | | | | | | | (15,706,280 | ) | | | (15,808,818 | ) | | | | |
| | | | | |
Net decrease | | | (1,372,099 | ) | | | (828,839 | ) | | | | | | $ | (12,241,786 | ) | | $ | (7,264,414 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | |
Shares sold | | | 375 | | | | 1,112 | | | | | | | $ | 3,286 | | | $ | 9,974 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 283 | | | | 530 | | | | | | | | 2,408 | | | | 4,679 | | | | | |
| | | | | |
Shares redeemed | | | (8,875 | ) | | | (1,060 | ) | | | | | | | (80,667 | ) | | | (9,826 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (8,217 | ) | | | 582 | | | | | | | $ | (74,973 | ) | | $ | 4,827 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class K | | | | | |
Shares sold | | | 5,871 | | | | 35,430 | | | | | | | $ | 50,243 | | | $ | 306,173 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 3,058 | | | | 9,361 | | | | | | | | 25,533 | | | | 80,877 | | | | | |
| | | | | |
Shares redeemed | | | (93,033 | ) | | | (78,127 | ) | | | | | | | (815,671 | ) | | | (667,661 | ) | | | | |
| | | | | |
Net decrease | | | (84,104 | ) | | | (33,336 | ) | | | | | | $ | (739,895 | ) | | $ | (280,611 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 47 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | | |
Shares sold | | | 44,013 | | | | 207,260 | | | | | | | $ | 376,472 | | | $ | 1,784,589 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 41,920 | | | | 233,628 | | | | | | | | 348,776 | | | | 2,013,871 | | | | | |
| | | | | |
Shares redeemed | | | (1,136,558 | ) | | | (2,408,629 | ) | | | | | | | (9,842,986 | ) | | | (20,798,036 | ) | | | | |
| | | | | |
Net decrease | | | (1,050,625 | ) | | | (1,967,741 | ) | | | | | | $ | (9,117,738 | ) | | $ | (16,999,576 | ) | | | | |
| | | | | |
| Class 1 | | | | | |
Shares sold | | | 7,146,929 | | | | 10,846,957 | | | | | | | $ | 60,977,115 | | | $ | 92,918,321 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 2,043,896 | | | | 3,020,775 | | | | | | | | 16,862,141 | | | | 25,827,622 | | | | | |
| | | | | |
Shares redeemed | | | (18,045,840 | ) | | | (15,310,686 | ) | | | | | | | (156,154,394 | ) | | | (131,756,480 | ) | | | | |
| | | | | |
Net decrease | | | (8,855,015 | ) | | | (1,442,954 | ) | | | | | | $ | (78,315,138 | ) | | $ | (13,010,537 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class 2 | | | | | |
Shares redeemed | | | (1,000 | ) | | | – 0 | – | | | | | | $ | (8,911 | ) | | $ | – 0 | – | | | | |
| | | | | |
Net increase (decrease) | | | (1,000 | ) | | | – 0 | – | | | | | | $ | (8,911 | ) | | $ | – 0 | – | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z | | | | | |
Shares sold | | | 99 | | | | 9,474 | | | | | | | $ | 849 | | | $ | 83,311 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 885,094 | | | | 3,055,896 | | | | | | | | 7,372,835 | | | | 26,372,382 | | | | | |
| | | | | |
Shares redeemed | | | (8,894,321 | ) | | | (17,636,850 | ) | | | | | | | (76,069,986 | ) | | | (152,346,397 | ) | | | | |
| | | | | |
Net decrease | | | (8,009,128 | ) | | | (14,571,480 | ) | | | | | | $ | (68,696,302 | ) | | $ | (125,890,704 | ) | | | | |
| | | | | |
At October 31, 2024, certain AB mutual funds owned approximately 17% 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 market or markets in which the Fund invests 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. It includes the risk that a particular style of investing may be underperforming the market generally.
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| |
48 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 effects of potential central bank monetary policy, and government fiscal policy, initiatives and 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, reference rate or index, 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.
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
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 49 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
Investment in Other Investment Companies Risk—As with other investments, investments in other investment companies are subject to market and selection risk. In addition, shareholders of the Fund bear both their proportionate share of expenses in the Fund (including management fees) and, indirectly, the expenses of the investment companies in which the Fund invests (to the extent these expenses are not waived or reimbursed by the Adviser).
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 than domestic securities. 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.
| | |
| |
50 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
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 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 year ended October 31, 2024.
| | |
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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 51 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE I
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended October 31, 2024 and October 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 31,221,925 | | | $ | 81,468,768 | |
| | | | | | | | |
Total distributions paid | | $ | 31,221,925 | | | $ | 81,468,768 | |
| | | | | | | | |
As of October 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 13,198,405 | |
Accumulated capital and other losses | | | (39,375,057 | )(a) |
Unrealized appreciation (depreciation) | | | (278,314,807 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (304,491,459 | ) |
| | | | |
| (a) | As of October 31, 2024, the Fund had a net capital loss carryforward of $39,375,057. During the fiscal year, the Fund utilized $10,961,637 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, the tax deferral of losses on wash sales, and the tax treatment of partnership investments. |
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, 2024, the Fund had a net short-term capital loss carryforward of $29,803,785 and a net long-term capital loss carryforward of $9,571,272, which may be carried forward for an indefinite period.
During the current fiscal year, permanent differences primarily due to book/tax differences associated with the treatment of earnings from the Subsidiary and contributions from the Adviser resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.
NOTE 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
| | |
| |
52 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
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.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 53 |
CONSOLIDATED FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.34 | | | | $ 9.14 | | | | $ 10.81 | | | | $ 7.65 | | | | $ 8.66 | |
| | | | |
Income From Investment
Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .20 | | | | .20 | | | | .14 | | | | .27 | | | | .09 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.14 | | | | (.29 | ) | | | (.86 | ) | | | 3.14 | | | | (.96 | ) |
| | | | | |
Contributions from Affiliates | | | .00 | (c) | | | – 0 | – | | | .00 | (c) | | | – 0 | – | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.34 | | | | (.09 | ) | | | (.72 | ) | | | 3.41 | | | | (.87 | ) |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment
income | | | (.29 | ) | | | (.71 | ) | | | (.95 | ) | | | (.25 | ) | | | (.14 | ) |
| | | | |
Net asset value, end of period | | | $ 9.39 | | | | $ 8.34 | | | | $ 9.14 | | | | $ 10.81 | | | | $ 7.65 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 16.46 | % | | | (1.37 | )% | | | (7.01 | )% | | | 45.48 | %+ | | | (10.11 | )% |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period
(000’s omitted) | | | $3,160 | | | | $5,592 | | | | $6,690 | | | | $5,306 | | | | $6,926 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)(f)‡ | | | 1.17 | % | | | 1.18 | % | | | 1.16 | % | | | 1.29 | % | | | 1.29 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)(f)‡ | | | 1.21 | % | | | 1.21 | % | | | 1.18 | % | | | 1.39 | % | | | 1.40 | % |
| | | | | |
Net investment income(b) | | | 2.20 | % | | | 2.29 | % | | | 1.46 | % | | | 2.86 | % | | | 1.10 | % |
| | | | | |
Portfolio turnover rate | | | 90 | % | | | 69 | % | | | 79 | % | | | 65 | % | | | 88 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .04 | % | | | .06 | % | | | .03 | % | | | .03 | % | | | .04 | % |
See footnote summary on page 59.
| | |
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54 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.48 | | | | $ 9.31 | | | | $ 10.86 | | | | $ 7.66 | | | | $ 8.63 | |
| | | | |
Income From Investment
Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .13 | | | | .14 | | | | .07 | | | | (.49 | ) | | | .03 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.18 | | | | (.30 | ) | | | (.89 | ) | | | 3.86 | | | | (.95 | ) |
| | | | | |
Contributions from Affiliates | | | .00 | (c) | | | – 0 | – | | | .00 | (c) | | | – 0 | – | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.31 | | | | (.16 | ) | | | (.82 | ) | | | 3.37 | | | | (.92 | ) |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment
income | | | (.22 | ) | | | (.67 | ) | | | (.73 | ) | | | (.17 | ) | | | (.05 | ) |
| | | | |
Net asset value, end of period | | | $ 9.57 | | | | $ 8.48 | | | | $ 9.31 | | | | $ 10.86 | | | | $ 7.66 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 15.66 | % | | | (2.15 | )% | | | (7.71 | )% | | | 44.41 | % | | | (10.74 | )%+ |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period
(000’s omitted) | | | $55 | | | | $314 | | | | $574 | | | | $199 | | | | $508 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)(f)‡ | | | 1.95 | % | | | 1.93 | % | | | 1.94 | % | | | 2.04 | % | | | 2.04 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)(f)‡ | | | 1.99 | % | | | 1.97 | % | | | 1.96 | % | | | 2.19 | % | | | 2.15 | % |
| | | | | |
Net investment income (loss)(b) | | | 1.48 | % | | | 1.54 | % | | | .72 | % | | | (5.20 | )% | | | .34 | % |
| | | | | |
Portfolio turnover rate | | | 90 | % | | | 69 | % | | | 79 | % | | | 65 | % | | | 88 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .04 | % | | | .06 | % | | | .03 | % | | | .03 | % | | | .04 | % |
See footnote summary on page 59.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 55 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.33 | | | | $ 9.14 | | | | $ 10.79 | | | | $ 7.63 | | | | $ 8.63 | |
| | | | |
Income From Investment
Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .22 | | | | .22 | | | | .17 | | | | .16 | | | | .11 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.15 | | | | (.30 | ) | | | (.87 | ) | | | 3.27 | | | | (.95 | ) |
| | | | | |
Contributions from Affiliates | | | .00 | (c) | | | – 0 | – | | | .00 | (c) | | | – 0 | – | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.37 | | | | (.08 | ) | | | (.70 | ) | | | 3.43 | | | | (.84 | ) |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment
income | | | (.34 | ) | | | (.73 | ) | | | (.95 | ) | | | (.27 | ) | | | (.16 | ) |
| | | | |
Net asset value, end of period | | | $ 9.36 | | | | $ 8.33 | | | | $ 9.14 | | | | $ 10.79 | | | | $ 7.63 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 16.91 | % | | | (1.25 | )% | | | (6.64 | )% | | | 45.82 | %+ | | | (9.79 | )% |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period
(000’s omitted) | | | $11,879 | | | | $22,010 | | | | $31,703 | | | | $18,096 | | | | $11,761 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)(f)‡ | | | .93 | % | | | .93 | % | | | .91 | % | | | 1.04 | % | | | 1.04 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)(f)‡ | | | .97 | % | | | .96 | % | | | .93 | % | | | 1.17 | % | | | 1.14 | % |
| | | | | |
Net investment income(b) | | | 2.45 | % | | | 2.53 | % | | | 1.75 | % | | | 1.60 | % | | | 1.33 | % |
| | | | | |
Portfolio turnover rate | | | 90 | % | | | 69 | % | | | 79 | % | | | 65 | % | | | 88 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .04 | % | | | .06 | % | | | .03 | % | | | .03 | % | | | .04 | % |
See footnote summary on page 59.
| | |
| |
56 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class 1 | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.15 | | | | $ 8.95 | | | | $ 10.61 | | | | $ 7.52 | | | | $ 8.51 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .20 | | | | .20 | | | | .15 | | | | .13 | | | | .10 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.12 | | | | (.29 | ) | | | (.85 | ) | | | 3.23 | | | | (.93 | ) |
| | | | | |
Contributions from Affiliates | | | .00 | (c) | | | – 0 | – | | | .00 | (c) | | | – 0 | – | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.32 | | | | (.09 | ) | | | (.70 | ) | | | 3.36 | | | | (.83 | ) |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.33 | ) | | | (.71 | ) | | | (.96 | ) | | | (.27 | ) | | | (.16 | ) |
| | | | |
Net asset value, end of period | | | $ 9.14 | | | | $ 8.15 | | | | $ 8.95 | | | | $ 10.61 | | | | $ 7.52 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 16.61 | % | | | (1.36 | )% | | | (6.85 | )% | | | 45.63 | % | | | (9.94 | )% |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $558,067 | | | | $569,541 | | | | $638,229 | | | | $678,946 | | | | $470,635 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)(f)‡ | | | 1.08 | % | | | 1.09 | % | | | 1.08 | % | | | 1.08 | % | | | 1.10 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)(f)‡ | | | 1.12 | % | | | 1.12 | % | | | 1.10 | % | | | 1.10 | % | | | 1.11 | % |
| | | | | |
Net investment income(b) | | | 2.26 | % | | | 2.38 | % | | | 1.50 | % | | | 1.33 | % | | | 1.26 | % |
| | | | | |
Portfolio turnover rate | | | 90 | % | | | 69 | % | | | 79 | % | | | 65 | % | | | 88 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .04 | % | | | .06 | % | | | .03 | % | | | .03 | % | | | .04 | % |
See footnote summary on page 59.
| | |
| |
| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 57 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.24 | | | | $ 9.04 | | | | $ 10.70 | | | | $ 7.58 | | | | $ 8.58 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .22 | | | | .23 | | | | .17 | | | | .14 | | | | .12 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 1.14 | | | | (.29 | ) | | | (.85 | ) | | | 3.27 | | | | (.94 | ) |
| | | | | |
Contributions from Affiliates | | | .00 | (c) | | | – 0 | – | | | .00 | (c) | | | – 0 | – | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.36 | | | | (.06 | ) | | | (.68 | ) | | | 3.41 | | | | (.82 | ) |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.35 | ) | | | (.74 | ) | | | (.98 | ) | | | (.29 | ) | | | (.18 | ) |
| | | | |
Net asset value, end of period | | | $ 9.25 | | | | $ 8.24 | | | | $ 9.04 | | | | $ 10.70 | | | | $ 7.58 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 16.96 | % | | | (1.08 | )% | | | (6.64 | )% | | | 46.17 | % | | | (9.75 | )% |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $122,786 | | | | $175,368 | | | | $324,086 | | | | $601,545 | | | | $415,967 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)(f)‡ | | | .84 | % | | | .85 | % | | | .83 | % | | | .84 | % | | | .85 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)(f)‡ | | | .88 | % | | | .88 | % | | | .85 | % | | | .85 | % | | | .86 | % |
| | | | | |
Net investment income(b) | | | 2.54 | % | | | 2.66 | % | | | 1.76 | % | | | 1.44 | % | | | 1.51 | % |
| | | | | |
Portfolio turnover rate | | | 90 | % | | | 69 | % | | | 79 | % | | | 65 | % | | | 88 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .04 | % | | | .06 | % | | | .03 | % | | | .03 | % | | | .04 | % |
See footnote summary on page 59.
| | |
| |
58 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| (a) | Based on average shares outstanding. |
| (b) | Net of expenses waived/reimbursed by the Adviser. |
| (c) | Amount is less than $.005. |
| (d) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized. |
| (e) | In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended October 31, 2024, October 31, 2023, October 31, 2022, October 31, 2021 and October 31, 2020, such waiver amounted to .04%, .03%, .02%, .01% and .01%, respectively. |
| (f) | The expense ratios presented below exclude interest/bank overdraft expense: |
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
Class A | |
Net of waivers/reimbursements | | | 1.17 | % | | | 1.18 | % | | | 1.16 | % | | | 1.29 | % | | | 1.29 | % |
Before waivers/reimbursements | | | 1.21 | % | | | 1.21 | % | | | 1.18 | % | | | 1.39 | % | | | 1.40 | % |
Class C | |
Net of waivers/reimbursements | | | 1.95 | % | | | 1.93 | % | | | 1.94 | % | | | 2.04 | % | | | 2.04 | % |
Before waivers/reimbursements | | | 1.99 | % | | | 1.97 | % | | | 1.96 | % | | | 2.19 | % | | | 2.15 | % |
Advisor Class | |
Net of waivers/reimbursements | | | .93 | % | | | .93 | % | | | .91 | % | | | 1.04 | % | | | 1.04 | % |
Before waivers/reimbursements | | | .97 | % | | | .96 | % | | | .93 | % | | | 1.17 | % | | | 1.14 | % |
Class 1 | |
Net of waivers/reimbursements | | | 1.08 | % | | | 1.09 | % | | | 1.08 | % | | | 1.08 | % | | | 1.10 | % |
Before waivers/reimbursements | | | 1.12 | % | | | 1.12 | % | | | 1.10 | % | | | 1.10 | % | | | 1.11 | % |
Class Z | |
Net of waivers/reimbursements | | | .84 | % | | | .85 | % | | | .83 | % | | | .84 | % | | | .85 | % |
Before waivers/reimbursements | | | .88 | % | | | .88 | % | | | .85 | % | | | .85 | % | | | .86 | % |
| * | Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the year ended October 31, 2020 by .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. |
See notes to consolidated financial statements.
| | |
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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 59 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
AB All Market Real Return Portfolio
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of AB All Market Real Return Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the consolidated portfolio of investments, as of October 31, 2024, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2024, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
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60 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of the AB investment companies since 1968.
New York, New York
December 27, 2024
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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 61 |
2024 FEDERAL TAX INFORMATION
(unaudited)
For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2024. For individual shareholders, the Fund designates 36.17% of dividends paid as qualified dividend income. For corporate shareholders, 10.65% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 31.11% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest related dividends.
Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2025.
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62 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
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 meetings held in-person on August 1-2, 2023 and October 31-November 2, 2023 (the “Meetings”).
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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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 63 |
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 2021 and 2022 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
| | |
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64 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
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 Meetings, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.
At the Meetings, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5-, and 10-year periods ended May 31, 2023 and July 31, 2023 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 noted that it was lower than the median. They also noted that the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year, was lower than the median.
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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 65 |
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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year. The Adviser had agreed to cap the Fund’s expenses, but the directors noted that the Fund’s 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. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanation of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.
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66 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
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 Meetings. 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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| abfunds.com | | AB ALL MARKET REAL RETURN PORTFOLIO | 67 |
NOTES
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68 | AB ALL MARKET REAL RETURN PORTFOLIO | | abfunds.com |
AB ALL MARKET REAL RETURN PORTFOLIO
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
AMRR-0151-1024 
OCT 10.31.24
ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
INFLATION-LINKED SECURITIES – 73.1% | | | | | | | | | | | | |
United States – 73.1% | | | | | | | | | | | | |
U.S. Treasury Inflation Index
0.125%, 07/15/2026 (TIPS) | | | U.S.$ | | | | 80,472 | | | $ | 78,284,599 | |
0.125%, 07/15/2030 (TIPS) | | | | | | | 236,494 | | | | 215,579,469 | |
0.125%, 07/15/2031 (TIPS) | | | | | | | 11,706 | | | | 10,466,022 | |
0.25%, 07/15/2029 (TIPS) | | | | | | | 51,383 | | | | 47,946,634 | |
0.625%, 07/15/2032 (TIPS) | | | | | | | 3,130 | | | | 2,853,509 | |
1.375%, 07/15/2033 (TIPS)(a) | | | | | | | 78,668 | | | | 75,287,935 | |
1.75%, 01/15/2034 (TIPS) | | | | | | | 33,242 | | | | 32,624,018 | |
1.875%, 07/15/2034 (TIPS) | | | | | | | 9,677 | | | | 9,610,638 | |
| | | | | | | | | | | | |
| | | |
Total Inflation-Linked Securities
(cost $476,180,470) | | | | | | | | | | | 472,652,824 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
CORPORATES - INVESTMENT GRADE – 12.2% | | | | | | | | | | | | |
Financial Institutions – 6.1% | | | | | | | | | | | | |
Banking – 5.0% | | | | | | | | | | | | |
Ally Financial, Inc.
6.992%, 06/13/2029 | | | | | | | 575 | | | | 599,990 | |
American Express Co.
5.098%, 02/16/2028 | | | | | | | 987 | | | | 994,353 | |
Banco Bilbao Vizcaya Argentaria SA
5.381%, 03/13/2029 | | | | | | | 200 | | | | 203,038 | |
7.883%, 11/15/2034 | | | | | | | 200 | | | | 223,836 | |
Banco de Credito del Peru SA
3.125%, 07/01/2030(b) | | | | | | | 958 | | | | 933,284 | |
Banco Santander SA
6.35%, 03/14/2034 | | | | | | | 200 | | | | 207,320 | |
6.921%, 08/08/2033 | | | | | | | 800 | | | | 860,920 | |
9.625%, 05/21/2033(c) | | | | | | | 800 | | | | 924,128 | |
Bank of Ireland Group PLC
5.601%, 03/20/2030(b) | | | | | | | 301 | | | | 306,358 | |
Barclays PLC
5.335%, 09/10/2035 | | | | | | | 569 | | | | 557,728 | |
5.674%, 03/12/2028 | | | | | | | 329 | | | | 334,132 | |
BNP Paribas SA
4.625%, 02/25/2031(b)(c) | | | | | | | 489 | | | | 411,498 | |
BPCE SA
6.508%, 01/18/2035(b) | | | | | | | 1,013 | | | | 1,041,607 | |
CaixaBank SA
6.037%, 06/15/2035(b) | | | | | | | 955 | | | | 979,477 | |
Capital One Financial Corp.
6.377%, 06/08/2034 | | | | | | | 949 | | | | 994,410 | |
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| abfunds.com | | AB BOND INFLATION STRATEGY | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Citigroup, Inc.
4.542%, 09/19/2030 | | U.S.$ | | | 917 | | | $ | 898,312 | |
Series AA
7.625%, 11/15/2028(c) | | | | | 43 | | | | 45,742 | |
Series W
4.00%, 12/10/2025(c) | | | | | 504 | | | | 491,471 | |
Series Y
4.15%, 11/15/2026(c) | | | | | 480 | | | | 459,000 | |
Credit Agricole SA
6.251%, 01/10/2035(b) | | | | | 677 | | | | 699,483 | |
Danske Bank A/S
4.613%, 10/02/2030(b) | | | | | 419 | | | | 409,019 | |
Deutsche Bank AG/New York NY
3.961%, 11/26/2025 | | | | | 405 | | | | 404,474 | |
4.999%, 09/11/2030 | | | | | 261 | | | | 256,988 | |
7.146%, 07/13/2027 | | | | | 233 | | | | 240,575 | |
Discover Bank
Series B
5.974%, 08/09/2028 | | | | | 327 | | | | 331,395 | |
Goldman Sachs Group, Inc. (The)
Series V
4.125%, 11/10/2026(c) | | | | | 775 | | | | 742,388 | |
HSBC Holdings PLC
7.399%, 11/13/2034 | | | | | 1,352 | | | | 1,509,981 | |
8.113%, 11/03/2033 | | | | | 591 | | | | 681,110 | |
Intesa Sanpaolo SpA
7.20%, 11/28/2033(b) | | | | | 357 | | | | 394,421 | |
JPMorgan Chase & Co.
2.963%, 01/25/2033 | | | | | 1,484 | | | | 1,296,393 | |
KBC Group NV
4.932%, 10/16/2030(b) | | | | | 667 | | | | 660,263 | |
Lloyds Banking Group PLC
7.50%, 09/27/2025(c) | | | | | 1,010 | | | | 1,015,100 | |
Mizuho Financial Group, Inc.
5.376%, 05/26/2030 | | | | | 344 | | | | 349,198 | |
Morgan Stanley
0.406%, 10/29/2027 | | EUR | | | 1,030 | | | | 1,063,422 | |
NatWest Group PLC
3.032%, 11/28/2035 | | U.S.$ | | | 270 | | | | 234,611 | |
8.125%, 11/10/2033(c) | | | | | 317 | | | | 338,908 | |
PNC Financial Services Group, Inc. (The)
Series R
8.317% (CME Term SOFR 3 Month + 3.30%), 12/02/2024(c)(d) | | | | | 352 | | | | 352,524 | |
Santander Holdings USA, Inc.
6.174%, 01/09/2030 | | | | | 62 | | | | 63,466 | |
Santander UK Group Holdings PLC
4.858%, 09/11/2030 | | | | | 517 | | | | 509,085 | |
| | |
| |
2 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Societe Generale SA
5.519%, 01/19/2028(b) | | | U.S.$ | | | | 812 | | | $ | 814,777 | |
Standard Chartered PLC
3.971%, 03/30/2026(b) | | | | | | | 657 | | | | 652,618 | |
6.364% (CME Term SOFR 3 Month + 1.51%), 01/30/2027(b)(c)(d) | | | | | | | 400 | | | | 368,556 | |
Sumitomo Mitsui Financial Group, Inc.
5.316%, 07/09/2029 | | | | | | | 564 | | | | 575,506 | |
Sumitomo Mitsui Trust Bank Ltd.
4.45%, 09/10/2027(b) | | | | | | | 236 | | | | 234,206 | |
Svenska Handelsbanken AB
4.75%, 03/01/2031(b)(c) | | | | | | | 1,400 | | | | 1,268,498 | |
Toronto-Dominion Bank (The)
5.146%, 09/10/2034 | | | | | | | 317 | | | | 311,541 | |
UBS Group AG
4.194%, 04/01/2031(b) | | | | | | | 614 | | | | 587,481 | |
6.373%, 07/15/2026(b) | | | | | | | 1,025 | | | | 1,033,159 | |
9.25%, 11/13/2033(b)(c) | | | | | | | 283 | | | | 327,035 | |
UniCredit SpA
1.982%, 06/03/2027(b) | | | | | | | 204 | | | | 194,373 | |
2.569%, 09/22/2026(b) | | | | | | | 1,071 | | | | 1,044,343 | |
Wells Fargo & Co.
3.35%, 03/02/2033 | | | | | | | 1,506 | | | | 1,338,819 | |
Series BB
3.90%, 03/15/2026(c) | | | | | | | 418 | | | | 404,494 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 32,174,814 | |
| | | | | | | | | | | | |
Brokerage – 0.2% | | | | | | | | | | | | |
Charles Schwab Corp. (The)
Series I
4.00%, 06/01/2026(c) | | | | | | | 1,366 | | | | 1,310,650 | |
| | | | | | | | | | | | |
| | | |
Finance – 0.1% | | | | | | | | | | | | |
Aviation Capital Group LLC
4.125%, 08/01/2025(b) | | | | | | | 7 | | | | 6,947 | |
4.875%, 10/01/2025(b) | | | | | | | 246 | | | | 245,542 | |
5.50%, 12/15/2024(b) | | | | | | | 425 | | | | 424,996 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 677,485 | |
| | | | | | | | | | | | |
Insurance – 0.4% | | | | | | | | | | | | |
Athene Global Funding
1.985%, 08/19/2028(b) | | | | | | | 308 | | | | 274,828 | |
2.55%, 11/19/2030(b) | | | | | | | 65 | | | | 55,866 | |
2.717%, 01/07/2029(b) | | | | | | | 117 | | | | 106,172 | |
5.526%, 07/11/2031(b) | | | | | | | 22 | | | | 22,282 | |
5.583%, 01/09/2029(b) | | | | | | | 49 | | | | 49,709 | |
5.62%, 05/08/2026(b) | | | | | | | 387 | | | | 390,495 | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Principal Life Global Funding II
5.10%, 01/25/2029(b) | | | U.S.$ | | | | 639 | | | $ | 645,786 | |
Swiss Re Subordinated Finance PLC
5.698%, 04/05/2035(b) | | | | | | | 1,000 | | | | 1,004,890 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,550,028 | |
| | | | | | | | | | | | |
REITs – 0.4% | |
American Tower Corp.
5.20%, 02/15/2029 | | | | | | | 432 | | | | 436,674 | |
GLP Capital LP/GLP Financing II, Inc.
3.25%, 01/15/2032 | | | | | | | 949 | | | | 819,338 | |
4.00%, 01/15/2031 | | | | | | | 414 | | | | 379,833 | |
Trust Fibra Uno
5.25%, 01/30/2026(b) | | | | | | | 943 | | | | 939,699 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,575,544 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 39,288,521 | |
| | | | | | | | | | | | |
Industrial – 5.2% | |
Basic – 0.1% | |
Glencore Funding LLC
5.338%, 04/04/2027(b) | | | | | | | 312 | | | | 315,454 | |
6.50%, 10/06/2033(b) | | | | | | | 543 | | | | 583,383 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 898,837 | |
| | | | | | | | | | | | |
Capital Goods – 0.5% | |
Boeing Co. (The)
3.25%, 02/01/2028 | | | | | | | 295 | | | | 277,026 | |
3.625%, 02/01/2031 | | | | | | | 120 | | | | 108,331 | |
5.15%, 05/01/2030 | | | | | | | 183 | | | | 180,788 | |
6.298%, 05/01/2029(b) | | | | | | | 242 | | | | 250,719 | |
6.528%, 05/01/2034(b) | | | | | | | 323 | | | | 340,516 | |
Caterpillar Financial Services Corp.
4.45%, 10/16/2026 | | | | | | | 911 | | | | 911,866 | |
Waste Management, Inc.
4.50%, 03/15/2028 | | | | | | | 971 | | | | 969,349 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,038,595 | |
| | | | | | | | | | | | |
Communications - Media – 0.8% | |
Charter Communications Operating LLC/Charter Communications Operating Capital
2.25%, 01/15/2029 | | | | | | | 343 | | | | 301,068 | |
Fox Corp.
6.50%, 10/13/2033 | | | | | | | 835 | | | | 889,116 | |
Paramount Global
7.875%, 07/30/2030 | | | | | | | 840 | | | | 904,747 | |
Prosus NV
3.061%, 07/13/2031(b) | | | | | | | 240 | | | | 204,300 | |
3.257%, 01/19/2027(b) | | | | | | | 593 | | | | 566,315 | |
3.68%, 01/21/2030(b) | | | | | | | 205 | | | | 187,383 | |
4.027%, 08/03/2050(b) | | | | | | | 775 | | | | 539,842 | |
| | |
| |
4 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Tencent Holdings Ltd.
3.24%, 06/03/2050(b) | | | U.S.$ | | | | 655 | | | $ | 461,369 | |
Warnermedia Holdings, Inc.
3.755%, 03/15/2027 | | | | | | | 939 | | | | 904,079 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,958,219 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.7% | | | | | | | | | | | | |
Ford Motor Co.
3.25%, 02/12/2032 | | | | | | | 532 | | | | 445,486 | |
Ford Motor Credit Co., LLC
6.125%, 03/08/2034 | | | | | | | 511 | | | | 505,849 | |
General Motors Financial Co., Inc.
5.75%, 02/08/2031 | | | | | | | 999 | | | | 1,017,551 | |
Harley-Davidson Financial Services, Inc.
3.05%, 02/14/2027(b) | | | | | | | 1,942 | | | | 1,837,016 | |
Hyundai Capital America
5.25%, 01/08/2027(b) | | | | | | | 252 | | | | 253,870 | |
5.275%, 06/24/2027(b) | | | | | | | 151 | | | | 152,389 | |
6.10%, 09/21/2028(b) | | | | | | | 486 | | | | 503,088 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,715,249 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.0% | | | | | | | | | |
Hasbro, Inc.
6.05%, 05/14/2034 | | | | | | | 231 | | | | 235,844 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Other – 0.2% | | | | | | | | | | | | |
Marriott International, Inc./MD
5.35%, 03/15/2035 | | | | | | | 910 | | | | 905,432 | |
| | | | | | | | | | | | |
| | | |
Consumer Non-Cyclical – 0.9% | | | | | | | | | | | | |
Cargill, Inc.
5.125%, 10/11/2032(b) | | | | | | | 632 | | | | 642,415 | |
Cencosud SA
5.95%, 05/28/2031(b) | | | | | | | 308 | | | | 311,881 | |
CVS Health Corp.
5.70%, 06/01/2034 | | | | | | | 666 | | | | 669,084 | |
General Mills, Inc.
4.70%, 01/30/2027 | | | | | | | 278 | | | | 278,211 | |
Imperial Brands Finance PLC
5.875%, 07/01/2034(b) | | | | | | | 914 | | | | 921,678 | |
JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL
6.75%, 03/15/2034(b) | | | | | | | 583 | | | | 625,798 | |
Ochsner LSU Health System of North Louisiana
Series 2021
2.51%, 05/15/2031 | | | | | | | 1,190 | | | | 912,230 | |
Pilgrim’s Pride Corp.
6.875%, 05/15/2034 | | | | | | | 731 | | | | 793,098 | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Roche Holdings, Inc.
4.203%, 09/09/2029(b) | | | U.S.$ | | | | 914 | | | $ | 898,526 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,052,921 | |
| | | | | | | | | | | | |
Energy – 1.0% | | | | | | | | | | | | |
Columbia Pipelines Holding Co., LLC
5.097%, 10/01/2031(b) | | | | | | | 288 | | | | 281,431 | |
Continental Resources, Inc./OK
2.875%, 04/01/2032(b) | | | | | | | 1,803 | | | | 1,490,648 | |
5.75%, 01/15/2031(b) | | | | | | | 796 | | | | 796,279 | |
Devon Energy Corp.
5.20%, 09/15/2034 | | | | | | | 911 | | | | 875,954 | |
Occidental Petroleum Corp.
5.20%, 08/01/2029 | | | | | | | 283 | | | | 281,961 | |
5.375%, 01/01/2032 | | | | | | | 297 | | | | 293,071 | |
6.625%, 09/01/2030 | | | | | | | 296 | | | | 311,034 | |
Var Energi ASA
7.50%, 01/15/2028(b) | | | | | | | 867 | | | | 920,954 | |
8.00%, 11/15/2032(b) | | | | | | | 680 | | | | 770,875 | |
Williams Cos., Inc. (The)
4.80%, 11/15/2029 | | | | | | | 413 | | | | 410,439 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,432,646 | |
| | | | | | | | | | | | |
Other Industrial – 0.0% | | | | | | | | | | | | |
LKQ Corp.
6.25%, 06/15/2033 | | | | | | | 68 | | | | 70,177 | |
| | | | | | | | | | | | |
| | | |
Services – 0.2% | | | | | | | | | | | | |
Mastercard, Inc.
4.55%, 01/15/2035 | | | | | | | 656 | | | | 636,130 | |
Moody’s Corp.
5.00%, 08/05/2034 | | | | | | | 472 | | | | 469,073 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,105,203 | |
| | | | | | | | | | | | |
Technology – 0.6% | | | | | | | | | | | | |
Broadcom, Inc.
4.15%, 02/15/2028 | | | | | | | 138 | | | | 135,487 | |
5.05%, 07/12/2027 | | | | | | | 346 | | | | 349,380 | |
Hewlett Packard Enterprise Co.
4.40%, 09/25/2027 | | | | | | | 373 | | | | 369,878 | |
Honeywell International, Inc.
4.125%, 11/02/2034 | | | EUR | | | | 1,853 | | | | 2,116,643 | |
TSMC Arizona Corp.
3.875%, 04/22/2027 | | | U.S.$ | | | | 1,009 | | | | 990,949 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,962,337 | |
| | | | | | | | | | | | |
Transportation - Airlines – 0.1% | | | | | | | | | | | | |
AS Mileage Plan IP Ltd.
5.021%, 10/20/2029(b) | | | | | | | 270 | | | | 261,984 | |
| | |
| |
6 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
5.308%, 10/20/2031(b) | | | U.S.$ | | | | 348 | | | $ | 336,258 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 598,242 | |
| | | | | | | | | | | | |
Transportation - Railroads – 0.1% | |
Lima Metro Line 2 Finance Ltd.
4.35%, 04/05/2036(b) | | | | | | | 198 | | | | 181,113 | |
5.875%, 07/05/2034(b) | | | | | | | 248 | | | | 246,969 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 428,082 | |
| | | | | | | | | | | | |
Transportation - Services – 0.0% | |
ENA Master Trust
4.00%, 05/19/2048(b) | | | | | | | 303 | | | | 228,259 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 33,630,043 | |
| | | | | | | | | | | | |
Utility – 0.9% | |
Electric – 0.9% | |
AES Panama Generation Holdings SRL
4.375%, 05/31/2030(b) | | | | | | | 346 | | | | 305,264 | |
Alexander Funding Trust II
7.467%, 07/31/2028(b) | | | | | | | 656 | | | | 694,140 | |
American Electric Power Co., Inc.
6.95%, 12/15/2054 | | | | | | | 565 | | | | 590,159 | |
CenterPoint Energy Houston Electric LLC
5.05%, 03/01/2035 | | | | | | | 718 | | | | 715,846 | |
Duke Energy Carolinas NC Storm Funding LLC
Series A-2
2.617%, 07/01/2041 | | | | | | | 1,183 | | | | 920,315 | |
Electricite de France SA
9.125%, 03/15/2033(b)(c) | | | | | | | 415 | | | | 471,191 | |
Engie Energia Chile SA
3.40%, 01/28/2030(b) | | | | | | | 751 | | | | 669,892 | |
6.375%, 04/17/2034(b) | | | | | | | 240 | | | | 244,596 | |
FIEMEX Energia – Banco Actinver SA Institucion de Banca Multiple
7.25%, 01/31/2041(b) | | | | | | | 398 | | | | 397,851 | |
Israel Electric Corp., Ltd.
Series G
4.25%, 08/14/2028(b) | | | | | | | 503 | | | | 474,329 | |
NextEra Energy Capital Holdings, Inc.
6.70%, 09/01/2054 | | | | | | | 83 | | | | 85,175 | |
Pacific Gas and Electric Co.
5.55%, 05/15/2029 | | | | | | | 151 | | | | 153,774 | |
Vistra Operations Co., LLC
6.95%, 10/15/2033(b) | | | | | | | 272 | | | | 296,140 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,018,672 | |
| | | | | | | | | | | | |
Total Corporates - Investment Grade
(cost $78,803,747) | | | | | | | | | | | 78,937,236 | |
| | | | | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
ASSET-BACKED SECURITIES – 6.0% | | | | | | | | | | | | |
Other ABS - Fixed Rate – 2.8% | | | | | | | | | | | | |
AB Issuer LLC
Series 2021-1, Class A2
3.734%, 07/30/2051(b) | | | U.S.$ | | | | 1,428 | | | $ | 1,298,654 | |
Affirm Asset Securitization Trust
Series 2021-Z2, Class A
1.17%, 11/16/2026(b) | | | | | | | 26 | | | | 25,854 | |
Series 2022-X1, Class A
1.75%, 02/15/2027(b) | | | | | | | 7 | | | | 7,004 | |
Series 2024-X1, Class A
6.27%, 05/15/2029(b) | | | | | | | 523 | | | | 525,046 | |
Amur Equipment Finance Receivables XI LLC
Series 2022-2A, Class A2
5.30%, 06/21/2028(b) | | | | | | | 424 | | | | 424,387 | |
Atalaya Equipment Leasing Trust
Series 2021-1A, Class B
2.08%, 02/15/2027(b) | | | | | | | 263 | | | | 260,901 | |
BHG Securitization Trust
Series 2022-A, Class D
3.56%, 02/20/2035(b) | | | | | | | 1,350 | | | | 1,227,697 | |
Cajun Global LLC
Series 2021-1, Class A2
3.931%, 11/20/2051(b) | | | | | | | 450 | | | | 422,578 | |
College Ave Student Loans LLC
Series 2021-C, Class B
2.72%, 07/26/2055(b) | | | | | | | 468 | | | | 417,461 | |
Dext ABS LLC
Series 2021-1, Class B
1.76%, 02/15/2028(b) | | | | | | | 187 | | | | 185,655 | |
Series 2023-1, Class A2
5.99%, 03/15/2032(b) | | | | | | | 1,461 | | | | 1,472,662 | |
Diamond Issuer LLC
Series 2021-1A, Class A
2.305%, 11/20/2051(b) | | | | | | | 2,152 | | | | 1,986,854 | |
Equify ABS LLC
Series 2024-1A, Class A
5.43%, 04/18/2033(b)(e) | | | | | | | 914 | | | | 913,931 | |
GCI Funding I LLC
Series 2021-1, Class A
2.38%, 06/18/2046(b) | | | | | | | 408 | | | | 367,445 | |
Marlette Funding Trust
Series 2024-1A, Class A
5.95%, 07/17/2034(b) | | | | | | | 350 | | | | 351,817 | |
MVW LLC
Series 2021-2A, Class B
1.83%, 05/20/2039(b) | | | | | | | 441 | | | | 414,477 | |
| | |
| |
8 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Neighborly Issuer LLC
Series 2022-1A, Class A2
3.695%, 01/30/2052(b) | | | U.S.$ | | | | 1,619 | | | $ | 1,460,034 | |
Series 2023-1A, Class A2
7.308%, 01/30/2053(b) | | | | | | | 1,931 | | | | 1,970,124 | |
Nelnet Student Loan Trust
Series 2021-CA, Class B
2.53%, 04/20/2062(b) | | | | | | | 758 | | | | 629,493 | |
Series 2021-DA, Class B
2.90%, 04/20/2062(b) | | | | | | | 793 | | | | 681,063 | |
NMEF Funding LLC
Series 2022-B, Class A2
6.07%, 06/15/2029(b) | | | | | | | 336 | | | | 337,920 | |
Oportun Funding Trust
Series 2024-3, Class A
5.26%, 08/15/2029(b)(e) | | | | | | | 992 | | | | 992,157 | |
Pagaya AI Debt Grantor Trust
Series 2024-5, Class A
6.278%, 10/15/2031(b) | | | | | | | 613 | | | | 617,781 | |
Pagaya AI Debt Trust
Series 2024-2, Class A
6.319%, 08/15/2031(b) | | | | | | | 464 | | | | 468,062 | |
Series 2024-3, Class A
6.258%, 10/15/2031(b) | | | | | | | 582 | | | | 587,022 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,046,079 | |
| | | | | | | | | | | | |
Autos - Fixed Rate – 2.8% | |
ACM Auto Trust
Series 2024-1A, Class A
7.71%, 01/21/2031(b) | | | | | | | 414 | | | | 415,918 | |
Series 2024-2A, Class A
6.06%, 02/20/2029(b) | | | | | | | 1,497 | | | | 1,498,284 | |
Arivo Acceptance Auto Loan Receivables Trust
Series 2024-1A, Class A
6.46%, 04/17/2028(b) | | | | | | | 186 | | | | 187,449 | |
Avis Budget Rental Car Funding AESOP LLC
Series 2023-3A, Class A
5.44%, 02/22/2028(b) | | | | | | | 1,294 | | | | 1,304,226 | |
Carvana Auto Receivables Trust
Series 2021-N3, Class C | | | | | | | | | | | | |
1.02%, 06/12/2028 | | | | | | | 119 | | | | 112,995 | |
Series 2021-N4, Class D
2.30%, 09/11/2028 | | | | | | | 319 | | | | 309,091 | |
Series 2021-P4, Class D
2.61%, 09/11/2028 | | | | | | | 1,206 | | | | 1,115,223 | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CPS Auto Receivables Trust
Series 2021-C, Class D
1.69%, 06/15/2027(b) | | U.S.$ | | | 736 | | | $ | 724,171 | |
Series 2022-A, Class C
2.17%, 04/16/2029(b) | | | | | 833 | | | | 828,011 | |
FHF Trust
Series 2021-2A, Class A
0.83%, 12/15/2026(b) | | | | | 74 | | | | 73,692 | |
Flagship Credit Auto Trust
Series 2024-3, Class A
4.88%, 11/15/2028(b) | | | | | 615 | | | | 614,836 | |
Ford Credit Auto Owner Trust
Series 2021-1, Class D
2.31%, 10/17/2033(b) | | | | | 1,000 | | | | 953,469 | |
GLS Auto Receivables Issuer Trust
Series 2024-3A, Class A2
5.35%, 08/16/2027(b) | | | | | 1,144 | | | | 1,146,659 | |
Hertz Vehicle Financing III LLC
Series 2022-1A, Class C
2.63%, 06/25/2026(b) | | | | | 1,660 | | | | 1,633,148 | |
LAD Auto Receivables Trust
Series 2022-1A, Class A
5.21%, 06/15/2027(b) | | | | | 484 | | | | 484,557 | |
Lendbuzz Securitization Trust
Series 2023-2A, Class A2
7.09%, 10/16/2028(b) | | | | | 733 | | | | 745,730 | |
Octane Receivables Trust
Series 2021-2A, Class B
2.02%, 09/20/2028(b) | | | | | 1,508 | | | | 1,466,701 | |
Research-Driven Pagaya Motor Asset Trust VII
Series 2022-3A, Class A
5.38%, 11/25/2030(b) | | | | | 635 | | | | 634,366 | |
Research-Driven Pagaya Motor Trust
Series 2024-1A, Class A
7.09%, 06/25/2032(b) | | | | | 537 | | | | 542,349 | |
Santander Bank Auto Credit-Linked Notes
Series 2022-A, Class B
5.281%, 05/15/2032(b) | | | | | 336 | | | | 335,622 | |
Series 2022-B, Class B
5.721%, 08/16/2032(b) | | | | | 149 | | | | 149,159 | |
Santander Bank NA - SBCLN
Series 2021-1A, Class B
1.833%, 12/15/2031(b) | | | | | 41 | | | | 40,796 | |
Santander Drive Auto Receivables Trust
Series 2024-4, Class A2
5.41%, 07/15/2027 | | | | | 1,187 | | | | 1,190,591 | |
| | |
| |
10 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Tesla Auto Lease Trust
Series 2024-A, Class A3
5.30%, 06/21/2027(b) | | | U.S.$ | | | | 517 | | | $ | 519,726 | |
Tricolor Auto Securitization Trust
Series 2024-2A, Class A
6.36%, 12/15/2027(b) | | | | | | | 477 | | | | 480,105 | |
United Auto Credit Securitization Trust
Series 2024-1, Class A
6.17%, 08/10/2026(b) | | | | | | | 130 | | | | 130,028 | |
Westlake Automobile Receivables Trust
Series 2023-2A, Class A2A
5.87%, 07/15/2026(b) | | | | | | | 162 | | | | 161,734 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,798,636 | |
| | | | | | | | | | | | |
Credit Cards - Fixed Rate – 0.4% | |
Brex Commercial Charge Card Master Trust
Series 2024-1, Class A1
6.05%, 07/15/2027(b) | | | | | | | 987 | | | | 996,715 | |
Mission Lane Credit Card Master Trust
Series 2024-B, Class A
5.83%, 01/15/2030(b) | | | | | | | 1,624 | | | | 1,623,841 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,620,556 | |
| | | | | | | | | | | | |
| | | |
Total Asset-Backed Securities
(cost $39,502,458) | | | | | | | | | | | 38,465,271 | |
| | | | | |
| | | | | | | | | | | | |
COLLATERALIZED MORTGAGE OBLIGATIONS – 4.9% | | | | | | | | | | | | |
Risk Share Floating Rate – 4.7% | | | | | | | | | | | | |
Bellemeade Re Ltd.
Series 2021-3A, Class A2
5.857% (CME Term SOFR + 1.00%),
09/25/2031(b)(d) | | | | | | | 1,699 | | | | 1,701,591 | |
Series 2022-1, Class M1B
7.007% (CME Term SOFR + 2.15%),
01/26/2032(b)(d) | | | | | | | 1,170 | | | | 1,175,131 | |
Series 2022-2, Class M1A
8.857% (CME Term SOFR + 4.00%),
09/27/2032(b)(d) | | | | | | | 2,078 | | | | 2,111,680 | |
Connecticut Avenue Securities Trust
Series 2022-R01, Class 1M2
6.757% (CME Term SOFR + 1.90%),
12/25/2041(b)(d) | | | | | | | 2,899 | | | | 2,934,932 | |
Series 2022-R03, Class 1M2
8.357% (CME Term SOFR + 3.50%),
03/25/2042(b)(d) | | | | | | | 2,283 | | | | 2,395,114 | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2022-R04, Class 1M2
7.957% (CME Term SOFR + 3.10%),
03/25/2042(b)(d) | | U.S.$ | | | 573 | | | $ | 595,236 | |
Series 2023-R02, Class 1M1
7.157% (CME Term SOFR + 2.30%),
01/25/2043(b)(d) | | | | | 819 | | | | 839,309 | |
Eagle Re Ltd.
Series 2021-2, Class M1B
6.907% (CME Term SOFR + 2.05%),
04/25/2034(b)(d) | | | | | 68 | | | | 68,267 | |
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2015-HQA2, Class M3
9.771% (CME Term SOFR + 4.91%),
05/25/2028(d) | | | | | 57 | | | | 59,186 | |
Series 2021-DNA5, Class M2
6.507% (CME Term SOFR + 1.65%),
01/25/2034(b)(d) | | | | | 273 | | | | 273,725 | |
Series 2021-DNA6, Class M2
6.357% (CME Term SOFR + 1.50%),
10/25/2041(b)(d) | | | | | 2,561 | | | | 2,569,537 | |
Series 2021-HQA4, Class M2
7.207% (CME Term SOFR + 2.35%),
12/25/2041(b)(d) | | | | | 1,765 | | | | 1,781,919 | |
Series 2022-DNA1, Class M1B
6.707% (CME Term SOFR + 1.85%),
01/25/2042(b)(d) | | | | | 1,542 | | | | 1,557,618 | |
Series 2022-DNA2, Class M1B
7.257% (CME Term SOFR + 2.40%),
02/25/2042(b)(d) | | | | | 2,468 | | | | 2,523,611 | |
Series 2022-DNA3, Class M1B
7.757% (CME Term SOFR + 2.90%),
04/25/2042(b)(d) | | | | | 1,069 | | | | 1,105,386 | |
Series 2022-DNA4, Class M1B
8.207% (CME Term SOFR + 3.35%),
05/25/2042(b)(d) | | | | | 2,051 | | | | 2,135,973 | |
Series 2022-DNA5, Class M1B
9.357% (CME Term SOFR + 4.50%),
06/25/2042(b)(d) | | | | | 3,681 | | | | 3,954,419 | |
Series 2024-DNA1, Class M1
6.207% (CME Term SOFR + 1.35%),
02/25/2044(b)(d) | | | | | 1,097 | | | | 1,097,927 | |
Federal National Mortgage Association Connecticut Avenue Securities
Series 2015-C04, Class 1M2
10.671% (CME Term SOFR + 5.81%), 04/25/2028(d) | | | | | 282 | | | | 292,550 | |
| | |
| |
12 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2021-R02, Class 2M2
6.857% (CME Term SOFR + 2.00%), 11/25/2041(b)(d) | | | U.S.$ | | | | 1,221 | | | $ | 1,227,400 | |
PMT Credit Risk Transfer Trust
Series 2020-1R, Class A
8.321% (CME Term SOFR + 3.46%), 02/25/2025(b)(d) | | | | | | | 130 | | | | 130,022 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 30,530,533 | |
| | | | | | | | | | | | |
Agency Floating Rate – 0.2% | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp. REMICs
Series 3955, Class SD | | | | | | | | | | | | |
1.476% (6.49% – CME Term SOFR), 11/15/2041(d)(f) | | | | | | | 1,442 | | | | 153,024 | |
Series 4693, Class SL
1.026% (6.04% – CME Term SOFR), 06/15/2047(d)(f) | | | | | | | 937 | | | | 112,999 | |
Series 4954, Class SL
1.079% (5.94% – CME Term SOFR), 02/25/2050(d)(f) | | | | | | | 1,115 | | | | 121,215 | |
Series 4981, Class HS
1.129% (5.99% – CME Term SOFR), 06/25/2050(d)(f) | | | | | | | 2,288 | | | | 236,305 | |
Federal National Mortgage Association REMICs
Series 2014-78, Class SE
1.129% (5.99% – CME Term SOFR), 12/25/2044(d)(f) | | | | | | | 643 | | | | 65,575 | |
Series 2016-77, Class DS
1.029% (5.89% – CME Term SOFR), 10/25/2046(d)(f) | | | | | | | 712 | | | | 84,246 | |
Series 2017-62, Class AS
1.179% (6.04% – CME Term SOFR), 08/25/2047(d)(f) | | | | | | | 772 | | | | 95,767 | |
Series 2017-97, Class LS
1.229% (6.09% – CME Term SOFR), 12/25/2047(d)(f) | | | | | | | 1,098 | | | | 133,176 | |
Government National Mortgage Association
Series 2017-122, Class SA
1.326% (6.09% – CME Term SOFR 1 Month), 08/20/2047(d)(f) | | | | | | | 605 | | | | 80,563 | |
Series 2017-134, Class MS
1.326% (6.09% – CME Term SOFR 1 Month), 09/20/2047(d)(f) | | | | | | | 685 | | | | 94,282 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,177,152 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Non-Agency Floating Rate – 0.0% | | | | | | | | | | | | |
JPMorgan Chase Bank, NA
Series 2019-CL1, Class M3
6.952% (CME Term SOFR 1 Month + 2.21%), 04/25/2047(b)(d) | | | U.S.$ | | | | 122 | | | $ | 123,206 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Mortgage Obligations
(cost $30,784,178) | | | | | | | | | | | 31,830,891 | |
| | | | | |
| | | | | | | | | | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.3% | | | | | | | | | | | | |
Non-Agency Floating Rate CMBS – 0.8% | | | | | | | | | | | | |
BAMLL Commercial Mortgage Securities Trust
Series 2017-SCH, Class AF
5.851% (CME Term SOFR 1 Month + 1.05%), 11/15/2033(b)(d) | | | | | | | 1,755 | | | | 1,754,241 | |
BBCMS Mortgage Trust
Series 2020-BID, Class A
7.059% (CME Term SOFR 1 Month + 2.25%), 10/15/2037(b)(d) | | | | | | | 1,383 | | | | 1,381,271 | |
BX Commercial Mortgage Trust
Series 2019-IMC, Class D | | | | | | | | | | | | |
6.75% (CME Term SOFR 1 Month + 1.95%), 04/15/2034(b)(d) | | | | | | | 185 | | | | 182,007 | |
Series 2019-IMC, Class E
7.00% (CME Term SOFR 1 Month + 2.20%), 04/15/2034(b)(d) | | | | | | | 895 | | | | 873,917 | |
Federal Home Loan Mortgage Corp.
Series 2021-MN1, Class M1
6.857% (CME Term SOFR + 2.00%), 01/25/2051(b)(d) | | | | | | | 91 | | | | 90,422 | |
HFX Funding Issuer
Series 2017-1A, Class A3
3.647%, 03/15/2035(g) | | | | | | | 324 | | | | 323,024 | |
Natixis Commercial Mortgage Securities Trust
Series 2019-MILE, Class A
6.383% (CME Term SOFR 1 Month + 1.58%), 07/15/2036(b)(d) | | | | | | | 391 | | | | 353,088 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,957,970 | |
| | | | | | | | | | | | |
Non-Agency Fixed Rate CMBS – 0.5% | | | | | | | | | | | | |
BAMLL Commercial Mortgage Securities Trust
Series 2013-WBRK, Class D
3.534%, 03/10/2037(b) | | | | | | | 520 | | | | 479,764 | |
| | |
| |
14 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
GS Mortgage Securities Trust
Series 2011-GC5, Class D
5.151%, 08/10/2044(b) | | | U.S.$ | | | | 19 | | | $ | 10,211 | |
GSF
Series 2021-1, Class A1
1.433%, 08/15/2026(g) | | | | | | | 484 | | | | 472,280 | |
Series 2021-1, Class A2
2.435%, 08/15/2026(g) | | | | | | | 1,421 | | | | 1,379,471 | |
Series 2021-1, Class AS
2.638%, 08/15/2026(g) | | | | | | | 40 | | | | 37,922 | |
JPMBB Commercial Mortgage Securities Trust
Series 2014-C22, Class XA
0.389%, 09/15/2047(h) | | | | | | | 1,467 | | | | 15 | |
LB-UBS Commercial Mortgage Trust
Series 2006-C6, Class AJ
5.452%, 09/15/2039 | | | | | | | 78 | | | | 25,898 | |
Morgan Stanley Bank of America Merrill Lynch Trust
Series 2015-C25, Class XA
1.024%, 10/15/2048(h) | | | | | | | 8,823 | | | | 36,779 | |
Wells Fargo Commercial Mortgage Trust
Series 2016-LC25, Class C
4.33%, 12/15/2059 | | | | | | | 330 | | | | 296,249 | |
Series 2016-NXS6, Class C
4.392%, 11/15/2049 | | | | | | | 525 | | | | 484,815 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,223,404 | |
| | | | | | | | | | | | |
Total Commercial Mortgage-Backed Securities
(cost $8,476,699) | | | | | | | | | | | 8,181,374 | |
| | | | | |
| | | | | | | | | | | | |
MORTGAGE PASS-THROUGHS – 0.8% | | | | | | | | | | | | |
Agency Fixed Rate 30-Year – 0.8% | | | | | | | | | | | | |
Federal National Mortgage Association
Series 2022
3.00%, 02/01/2052
(cost $6,049,095) | | | | | | | 5,892 | | | | 5,132,183 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
COLLATERALIZED LOAN OBLIGATIONS – 0.7% | | | | | | | | | | | | |
CLO - Floating Rate – 0.7% | | | | | | | | | | | | |
AGL CLO 16 Ltd.
Series 2021-16A, Class D
7.979% (CME Term SOFR 3 Month + 3.36%), 01/20/2035(b)(d) | | | | | | | 650 | | | | 651,214 | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Balboa Bay Loan Funding Ltd.
Series 2020-1A, Class DR
8.029% (CME Term SOFR 3 Month + 3.41%), 01/20/2032(b)(d) | | | U.S.$ | | | | 415 | | | $ | 415,000 | |
Crown Point CLO 11 Ltd.
Series 2021-11A, Class D
8.509% (CME Term SOFR 3 Month + 3.86%), 01/17/2034(b)(d) | | | | | | | 400 | | | | 400,724 | |
Dryden 98 CLO Ltd.
Series 2022-98A, Class D
7.717% (CME Term SOFR 3 Month + 3.10%), 04/20/2035(b)(d) | | | | | | | 500 | | | | 491,970 | |
New Mountain CLO 3 Ltd.
Series CLO-3A, Class A
6.059% (CME Term SOFR 3 Month + 1.44%), 10/20/2034(b)(d) | | | | | | | 500 | | | | 500,248 | |
Pikes Peak CLO 8
Series 2021-8A, Class A
6.049% (CME Term SOFR 3 Month + 1.43%), 07/20/2034(b)(d) | | | | | | | 1,450 | | | | 1,450,652 | |
Sixth Street CLO XVII Ltd.
Series 2021-17A, Class A
6.119% (CME Term SOFR 3 Month + 1.50%), 01/20/2034(b)(d) | | | | | | | 381 | | | | 382,290 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Loan Obligations
(cost $4,288,829) | | | | | | | | | | | 4,292,098 | |
| | | | | |
| | | | | | | | | | | | |
CORPORATES - NON-INVESTMENT GRADE – 0.6% | | | | | | | | | | | | |
Industrial – 0.5% | | | | | | | | | | | | |
Communications - Media – 0.2% | | | | | | | | | | | | |
DISH DBS Corp.
5.75%, 12/01/2028(b) | | | | | | | 1,067 | | | | 933,828 | |
VZ Vendor Financing II BV
2.875%, 01/15/2029(b) | | | EUR | | | | 561 | | | | 559,219 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,493,047 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.0% | | | | | | | | | | | | |
Altice France SA
3.375%, 01/15/2028(b) | | | | | | | 307 | | | | 254,819 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Other – 0.1% | | | | | | | | | | | | |
Hilton Domestic Operating Co., Inc.
5.875%, 04/01/2029(b) | | | U.S.$ | | | | 383 | | | | 386,279 | |
6.125%, 04/01/2032(b) | | | | | | | 220 | | | | 222,270 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 608,549 | |
| | | | | | | | | | | | |
| | |
| |
16 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Consumer Non-Cyclical – 0.1% | | | | | | | | | | | | |
Organon & Co./Organon Foreign Debt Co-Issuer BV
2.875%, 04/30/2028(b) | | | EUR | | | | 550 | | | $ | 577,371 | |
| | | | | | | | | | | | |
| | | |
Services – 0.1% | | | | | | | | | | | | |
Belron UK Finance PLC
5.75%, 10/15/2029(b) | | | U.S.$ | | | | 290 | | | | 290,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,224,386 | |
| | | | | | | | | | | | |
Utility – 0.1% | | | | | | | | | | | | |
Electric – 0.1% | | | | | | | | | | | | |
Vistra Corp.
7.00%, 12/15/2026(b)(c) | | | | | | | 751 | | | | 758,277 | |
| | | | | | | | | | | | |
| | | |
Total Corporates - Non-Investment Grade
(cost $4,295,357) | | | | | | | | | | | 3,982,663 | |
| | | | | |
| | | | | | | | | | | | |
EMERGING MARKETS - CORPORATE BONDS – 0.5% | | | | | | | | | | | | |
Industrial – 0.4% | | | | | | | | | | | | |
Basic – 0.1% | | | | | | | | | | | | |
Braskem Netherlands Finance BV
8.00%, 10/15/2034(b) | | | | | | | 364 | | | | 362,319 | |
Volcan Cia Minera SAA
8.75%, 01/24/2030(b) | | | | | | | 126 | | | | 115,101 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 477,420 | |
| | | | | | | | | | | | |
Communications - Media – 0.0% | | | | | | | | | | | | |
Globo Comunicacao e Participacoes SA
4.875%, 01/22/2030(b) | | | | | | | 232 | | | | 212,280 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Other – 0.1% | | | | | | | | | | | | |
Wynn Macau Ltd.
5.625%, 08/26/2028(b) | | | | | | | 483 | | | | 463,704 | |
| | | | | | | | | | | | |
| | | |
Consumer Non-Cyclical – 0.0% | | | | | | | | | | | | |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018(e)(g)(i)(j)(k) | | | | | | | 650 | | | | 65 | |
| | | | | | | | | | | | |
| | | |
Energy – 0.2% | | | | | | | | | | | | |
Ecopetrol SA
8.625%, 01/19/2029 | | | | | | | 1,134 | | | | 1,198,751 | |
Oleoducto Central SA
4.00%, 07/14/2027(b) | | | | | | | 229 | | | | 217,344 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,416,095 | |
| | | | | |
| | | | | | | | | | | 2,569,564 | |
| | | | | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Utility – 0.1% | | | | | | | | | | | | |
Electric – 0.0% | | | | | | | | | | | | |
Terraform Global Operating LP
6.125%, 03/01/2026(b) | | | U.S.$ | | | | 89 | | | $ | 89,020 | |
| | | | | | | | | | | | |
| | | |
Other Utility – 0.1% | | | | | | | | | | | | |
Aegea Finance SARL
6.75%, 05/20/2029(b) | | | | | | | 374 | | | | 370,961 | |
| | | | | | | | | | | | |
| | | | 459,981 | |
| | | | | |
Total Emerging Markets - Corporate Bonds
(cost $3,346,984) | | | | | | | | | | | 3,029,545 | |
| | | | | |
| | | | | | | | | | | | |
QUASI-SOVEREIGNS – 0.3% | | | | | | | | | | | | |
Quasi-Sovereign Bonds – 0.3% | | | | | | | | | | | | |
Hungary – 0.2% | | | | | | | | | | | | |
Magyar Export-Import Bank Zrt
6.125%, 12/04/2027(b) | | | | | | | 1,197 | | | | 1,218,696 | |
| | | | | | | | | | | | |
|
Mexico – 0.1% | |
Comision Federal de Electricidad
4.688%, 05/15/2029(b) | | | | | | | 1,016 | | | | 962,660 | |
| | | | | | | | | | | | |
| | | |
Total Quasi-Sovereigns
(cost $2,209,806) | | | | | | | | | | | 2,181,356 | |
| | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.2% | | | | | | | | | | | | |
United States – 0.2% | | | | | | | | | | | | |
University of California
Series 2021-B
3.071%, 05/15/2051
(cost $1,451,584) | | | | | | | 1,465 | | | | 1,009,118 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.1% | | | | | | | | | | | | |
Chile – 0.1% | | | | | | | | | | | | |
Chile Electricity Lux Mpc II SARL
5.58%, 10/20/2035(b) | | | | | | | 699 | | | | 694,422 | |
| | | | | | | | | | | | |
| | | |
Colombia – 0.0% | | | | | | | | | | | | |
Colombia Government International Bond
3.125%, 04/15/2031 | | | | | | | 248 | | | | 197,408 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Sovereign Bonds
(cost $946,756) | | | | | | | | | | | 891,830 | |
| | | | | |
| | |
| |
18 | AB BOND INFLATION STRATEGY | | abfunds.com |
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(b)
(cost $922,000) | | | U.S.$ | | | | 922 | | | $ | 839,942 | |
| | | | | | | | | | | | |
| | | |
| | | | | | Shares | | | | |
SHORT-TERM INVESTMENTS – 2.5% | | | | | | | | | | | | |
Investment Companies – 2.5% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,
4.72%(l)(m)(n)
(cost $16,304,911) | | | | | | | 16,304,911 | | | | 16,304,911 | |
| | | | | | | | | |
| | | |
Total Investments – 103.3%
(cost $673,562,874) | | | | | | | | | | | 667,731,242 | |
Other assets less liabilities – (3.3)% | | | | | | | | | | | (21,058,072 | ) |
| | | | | | | | | | | | |
| | | |
Net Assets – 100.0% | | | | | | | | | | $ | 646,673,170 | |
| | | | | |
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 | | | 1,228 | | | | December 2024 | | | $ | 252,900,843 | | | $ | (2,263,444 | ) |
U.S. T-Note 5 Yr (CBT) Futures | | | 186 | | | | December 2024 | | | | 19,945,594 | | | | (329,848 | ) |
| | | | | | | | | | | | | | | | |
Sold Contracts | |
U.S. 10 Yr Ultra Futures | | | 259 | | | | December 2024 | | | | 29,461,250 | | | | 1,069,351 | |
U.S. Ultra Bond (CBT) Futures | | | 22 | | | | December 2024 | | | | 2,763,750 | | | | 172,122 | |
| | | | | | | | | | | | | | | | |
| | | $ | (1,351,819 | ) |
| | | | | |
FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
NatWest Markets PLC | | | EUR | | | | 4,045 | | | | USD | | | | 4,372 | | | | 12/20/2024 | | | $ | (36,536 | ) |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 19 |
PORTFOLIO OF INVESTMENTS (continued)
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
October 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Buy Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
iTraxx Australia Series 42, 5 Year Index, 12/20/2029* | | | (1.00 | )% | | | Quarterly | | | | 0.66 | % | | | USD 32,150 | | | $ | (536,263 | ) | | $ | (535,478 | ) | | $ | (785 | ) |
Sale Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-NAIG Series 43, 5 Year Index, 12/20/2029* | | | 1.00 | | | | Quarterly | | | | 0.54 | | | | USD 32,150 | | | | 719,549 | | | | 711,179 | | | | 8,370 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 183,286 | | | $ | 175,701 | | | $ | 7,585 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | 64,600 | | | | 02/26/2025 | | | | 1.589% | | | | CPI# | | | Maturity | | $ | 9,290,171 | | | $ | – 0 | – | | $ | 9,290,171 | |
| USD | | | 38,550 | | | | 02/28/2025 | | | | 1.527% | | | | CPI# | | | Maturity | | | 5,665,652 | | | | – 0 | – | | | 5,665,652 | |
| USD | | | 27,280 | | | | 04/15/2026 | | | | 2.430% | | | | CPI# | | | Maturity | | | (19,740 | ) | | | – 0 | – | | | (19,740 | ) |
| USD | | | 27,630 | | | | 04/15/2026 | | | | 2.583% | | | | CPI# | | | Maturity | | | (102,023 | ) | | | – 0 | – | | | (102,023 | ) |
| USD | | | 61,010 | | | | 05/13/2027 | | | | 3.263% | | | | CPI# | | | Maturity | | | (173,414 | ) | | | – 0 | – | | | (173,414 | ) |
| USD | | | 29,760 | | | | 07/08/2027 | | | | 2.770% | | | | CPI# | | | Maturity | | | 390,145 | | | | – 0 | – | | | 390,145 | |
| USD | | | 29,760 | | | | 07/08/2027 | | | | 2.778% | | | | CPI# | | | Maturity | | | 378,917 | | | | – 0 | – | | | 378,917 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | $ | 15,429,708 | | | $ | – 0 | – | | $ | 15,429,708 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| # | Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI). |
CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Rate Type | | | | | | | | | | | |
Notional
Amount
(000) | | | Termination
Date | | | Payments
made
by the
Fund | | Payments
received
by the
Fund | | Payment
Frequency
Paid/
Received | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
| USD | | | 1,160 | | | | 06/09/2025 | | | 2.000% | | 1 Day SOFR | | Annual | | $ | 31,396 | | | $ | 18,979 | | | $ | 12,417 | |
| USD | | | 2,106 | | | | 08/04/2025 | | | 1.970% | | 1 Day SOFR | | Annual | | | 52,856 | | | | 42,703 | | | | 10,153 | |
| USD | | | 5,400 | | | | 10/04/2026 | | | 1.170% | | 1 Day SOFR | | Annual | | | 292,229 | | | | 306,083 | | | | (13,854 | ) |
| USD | | | 1,080 | | | | 11/08/2026 | | | 1.451% | | 1 Day SOFR | | Annual | | | 93,004 | | | | 57,750 | | | | 35,254 | |
| USD | | | 1,080 | | | | 11/09/2026 | | | 1.470% | | 1 Day SOFR | | Annual | | | 92,305 | | | | 57,785 | | | | 34,520 | |
| USD | | | 7,030 | | | | 04/04/2027 | | | 2.235% | | 1 Day SOFR | | Annual | | | 393,189 | | | | 314,483 | | | | 78,706 | |
| USD | | | 20,920 | | | | 06/05/2027 | | | 0.345% | | 1 Day SOFR | | Annual | | | 2,238,447 | | | | 1,904,825 | | | | 333,622 | |
| USD | | | 715 | | | | 07/12/2027 | | | 2.000% | | 1 Day SOFR | | Annual | | | 41,206 | | | | 37,808 | | | | 3,398 | |
| USD | | | 5,395 | | | | 06/04/2029 | | | 1.985% | | 1 Day SOFR | | Annual | | | 482,009 | | | | 421,390 | | | | 60,619 | |
| USD | | | 3,170 | | | | 09/27/2029 | | | 1.300% | | 1 Day SOFR | | Annual | | | 362,392 | | | | 352,365 | | | | 10,027 | |
| USD | | | 40,300 | | | | 05/21/2031 | | | 1.394% | | 1 Day SOFR | | Annual | | | 6,243,236 | | | | 5,311,119 | | | | 932,117 | |
| | |
| |
20 | AB BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Rate Type | | | | | | | | | | | |
Notional
Amount
(000) | | | Termination
Date | | | Payments
made
by the
Fund | | | Payments
received
by the
Fund | | Payment
Frequency
Paid/
Received | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
| USD | | | 1,490 | | | | 11/10/2035 | | | | 2.410% | | | 1 Day SOFR | | Annual | | $ | 227,167 | | | $ | 158,292 | | | $ | 68,875 | |
| USD | | | 595 | | | | 03/06/2042 | | | | 3.500% | | | 1 Day SOFR | | Annual | | | 30,575 | | | | – 0 | – | | | 30,575 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 10,580,011 | | | $ | 8,983,582 | | | $ | 1,596,429 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
REVERSE REPURCHASE AGREEMENTS (see Note D)
| | | | | | | | | | | | | | | | | | | | |
| Broker | | Currency | | | Principal
Amount
(000) | | | Interest Rate | | | Maturity | | | U.S. $
Value at
October 31,
2024 | |
HSBC Securities (USA), Inc.† | | | USD | | | | 15,038 | | | | 5.03 | % | | | — | | | $ | 15,236,730 | |
| † | The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2024. |
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 | | $ | 15,236,730 | | | $ | – 0 – | | | $ | – 0 – | | | $ | – 0 – | | | $ | 15,236,730 | |
| (a) | Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements. |
| (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 October 31, 2024, the aggregate market value of these securities amounted to $120,177,288 or 18.6% of net assets. |
| (c) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
| (d) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2024. |
| (e) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (f) | Inverse interest only security. |
| (g) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.34% of net assets as of October 31, 2024, 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 -
09/06/2022 |
| | $ | 466,222 | | | $ | 472,280 | | | | 0.07 | % |
GSF
Series 2021-1, Class A2
2.435%, 08/15/2026 | |
| 02/25/2021 -
10/01/2024 |
| | | 1,438,294 | | | | 1,379,471 | | | | 0.21 | % |
GSF
Series 2021-1, Class AS
2.638%, 08/15/2026 | |
| 02/25/2021 -
04/01/2021 |
| | | 40,406 | | | | 37,922 | | | | 0.01 | % |
HFX Funding Issuer
Series 2017-1A, Class A3
3.647%, 03/15/2035 | |
| 11/19/2020 -
10/01/2024 |
| | | 342,642 | | | | 323,024 | | | | 0.05 | % |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018 | |
| 01/24/2014 -
09/01/2024 |
| | | 360,620 | | | | 65 | | | | 0.00 | % |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| (i) | Non-income producing security. |
| (j) | Defaulted matured security. |
| (k) | Fair valued by the Adviser. |
| (l) | Affiliated investments. |
| (m) | 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. |
| (n) | The rate shown represents the 7-day yield as of period end. |
Currency Abbreviations:
EUR – Euro
USD – United States Dollar
Glossary:
ABS – Asset-Backed Securities
CBT – Chicago Board of Trade
CDX-NAIG – North American Investment Grade Credit Default Swap Index
CLO – Collateralized Loan Obligations
CMBS – Commercial Mortgage-Backed Securities
CME – Chicago Mercantile 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.
| | |
| |
22 | AB BOND INFLATION STRATEGY | | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $657,257,963) | | $ | 651,426,331 | |
Affiliated issuers (cost $16,304,911) | | | 16,304,911 | |
Cash | | | 6,280 | |
Cash collateral due from broker | | | 8,871,464 | |
Foreign currencies, at value (cost $13,074) | | | 13,149 | |
Receivable for investment securities sold | | | 11,672,758 | |
Interest receivable | | | 2,112,665 | |
Receivable for capital stock sold | | | 354,054 | |
Receivable for variation margin on centrally cleared swaps | | | 229,701 | |
Receivable due from Adviser | | | 36,093 | |
Affiliated dividends receivable | | | 31,268 | |
| | | | |
Total assets | | | 691,058,674 | |
| | | | |
| Liabilities | |
Payable for investment securities purchased and foreign currency transactions | | | 28,028,313 | |
Payable for reverse repurchase agreements | | | 15,236,730 | |
Payable for capital stock redeemed | | | 288,808 | |
Advisory fee payable | | | 260,961 | |
Payable for variation margin on futures | | | 83,937 | |
Administrative fee payable | | | 73,909 | |
Distribution fee payable | | | 37,816 | |
Unrealized depreciation on forward currency exchange contracts | | | 36,536 | |
Transfer Agent fee payable | | | 11,703 | |
Foreign capital gains tax payable | | | 10,445 | |
Directors’ fees payable | | | 2,404 | |
Accrued expenses | | | 313,942 | |
| | | | |
Total liabilities | | | 44,385,504 | |
| | | | |
Net Assets | | $ | 646,673,170 | |
| | | | |
| Composition of Net Assets | |
Capital stock, at par | | $ | 63,052 | |
Additional paid-in capital | | | 770,900,695 | |
Accumulated loss | | | (124,290,577 | ) |
| | | | |
| Net Assets | | $ | 646,673,170 | |
| | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 23 |
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 | | $ | 36,110,513 | | | | 3,466,652 | | | $ | 10.42 | * |
| |
| C | | $ | 4,328,086 | | | | 430,798 | | | $ | 10.05 | |
| |
| Advisor | | $ | 190,046,740 | | | | 18,216,503 | | | $ | 10.43 | |
| |
| I | | $ | 6,303,410 | | | | 612,664 | | | $ | 10.29 | |
| |
| 1 | | $ | 342,511,852 | | | | 33,706,661 | | | $ | 10.16 | |
| |
| 2 | | $ | 35,768,036 | | | | 3,521,311 | | | $ | 10.16 | |
| |
| Z | | $ | 31,604,533 | | | | 3,097,421 | | | $ | 10.20 | |
| |
| * | The maximum offering price per share for Class A shares was $10.66 which reflects a sales charge of 2.25%. |
See notes to financial statements.
| | |
| |
24 | AB BOND INFLATION STRATEGY | | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended October 31, 2024
| | | | | | | | |
| Investment Income | |
Interest | | $ | 28,485,409 | | | | | |
Dividends | |
Unaffiliated issuers | | | 493,141 | | | | | |
Affiliated issuers | | | 386,984 | | | $ | 29,365,534 | |
| | | | | | | | |
| Expenses | |
Advisory fee (see Note B) | | | 3,165,755 | | | | | |
Distribution fee—Class A | | | 102,402 | | | | | |
Distribution fee—Class C | | | 64,221 | | | | | |
Distribution fee—Class R | | | 6,635 | | | | | |
Distribution fee—Class K | | | 5,048 | | | | | |
Distribution fee—Class 1 | | | 312,892 | | | | | |
Transfer agency—Class A | | | 54,446 | | | | | |
Transfer agency—Class C | | | 8,722 | | | | | |
Transfer agency—Advisor Class | | | 266,511 | | | | | |
Transfer agency—Class R | | | 3,450 | | | | | |
Transfer agency—Class K | | | 3,972 | | | | | |
Transfer agency—Class I | | | 7,396 | | | | | |
Transfer agency—Class 1 | | | 49,967 | | | | | |
Transfer agency—Class 2 | | | 5,866 | | | | | |
Transfer agency—Class Z | | | 5,982 | | | | | |
Registration fees | | | 131,214 | | | | | |
Administrative | | | 128,087 | | | | | |
Audit and tax | | | 121,582 | | | | | |
Custody and accounting | | | 92,519 | | | | | |
Printing | | | 89,436 | | | | | |
Legal | | | 50,923 | | | | | |
Directors’ fees | | | 28,541 | | | | | |
Miscellaneous | | | 36,814 | | | | | |
| | | | | | | | |
Total expenses before interest expense | | | 4,742,381 | | | | | |
Interest expense | | | 575,355 | | | | | |
| | | | | | | | |
Total expenses | | | 5,317,736 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (1,097,038 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 4,220,698 | |
| | | | | | | | |
Net investment income | | | | | | | 25,144,836 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 25 |
STATEMENT OF OPERATIONS (continued)
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions(a) | | | | | | $ | (5,675,012 | ) |
Forward currency exchange contracts | | | | | | | 17,885 | |
Futures | | | | | | | 1,079,506 | |
Swaps | | | | | | | 1,604,047 | |
Foreign currency transactions | | | | | | | (150,923 | ) |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments(b) | | | | | | | 33,058,508 | |
Forward currency exchange contracts | | | | | | | (55,322 | ) |
Futures | | | | | | | 722,504 | |
Swaps | | | | | | | (2,312,149 | ) |
Foreign currency denominated assets and liabilities | | | | | | | 17,611 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 28,306,655 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 53,451,491 | |
| | | | | | | | |
| (a) | Net of foreign realized capital gains taxes of $2,921. |
| (b) | Net of increase in accrued foreign capital gains taxes on unrealized gains of $6,740. |
See notes to financial statements.
| | |
| |
26 | AB BOND INFLATION STRATEGY | | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 25,144,836 | | | $ | 36,906,876 | |
Net realized loss on investment and foreign currency transactions | | | (3,124,497 | ) | | | (98,734,747 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 31,431,152 | | | | 84,223,181 | |
| | | | | | | | |
Net increase in net assets from operations | | | 53,451,491 | | | | 22,395,310 | |
Distributions to Shareholders | | | | | | | | |
Class A | | | (1,699,586 | ) | | | (2,383,662 | ) |
Class C | | | (231,627 | ) | | | (415,252 | ) |
Advisor Class | | | (9,013,026 | ) | | | (15,525,103 | ) |
Class R | | | (53,398 | ) | | | (97,892 | ) |
Class K | | | (82,429 | ) | | | (199,485 | ) |
Class I | | | (283,517 | ) | | | (259,635 | ) |
Class 1 | | | (13,769,656 | ) | | | (16,743,802 | ) |
Class 2 | | | (1,677,452 | ) | | | (2,102,742 | ) |
Class Z | | | (1,132,164 | ) | | | (522,386 | ) |
| Capital Stock Transactions | |
Net decrease | | | (63,470,113 | ) | | | (358,017,074 | ) |
| | | | | | | | |
Total decrease | | | (37,961,477 | ) | | | (373,871,723 | ) |
| Net Assets | |
Beginning of period | | | 684,634,647 | | | | 1,058,506,370 | |
| | | | | | | | |
End of period | | $ | 646,673,170 | | | $ | 684,634,647 | |
| | | | | | | | |
See notes to financial statements.
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| abfunds.com | | AB BOND INFLATION STRATEGY | 27 |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024
NOTE A
Significant Accounting Policies
AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of seven 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 (the “Fund”), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class I, Class 1, Class 2 and Class Z shares. Class B, Class R, Class K, and Class T shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class A shares are sold with a maximum sales charge of 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. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares automatically convert to Class A shares eight 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.
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
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28 | AB BOND INFLATION STRATEGY | | 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
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 29 |
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.
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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| abfunds.com | | AB BOND INFLATION STRATEGY | 31 |
NOTES TO FINANCIAL STATEMENTS (continued)
widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Inflation-Linked Securities | | $ | – 0 | – | | $ | 472,652,824 | | | $ | – 0 | – | | $ | 472,652,824 | |
Corporates – Investment Grade | | | – 0 | – | | | 78,937,236 | | | | – 0 | – | | | 78,937,236 | |
Asset-Backed Securities | | | – 0 | – | | | 36,559,183 | | | | 1,906,088 | | | | 38,465,271 | |
Collateralized Mortgage Obligations | | | – 0 | – | | | 31,830,891 | | | | – 0 | – | | | 31,830,891 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 8,181,374 | | | | – 0 | – | | | 8,181,374 | |
Mortgage Pass-Throughs | | | – 0 | – | | | 5,132,183 | | | | – 0 | – | | | 5,132,183 | |
Collateralized Loan Obligations | | | – 0 | – | | | 4,292,098 | | | | – 0 | – | | | 4,292,098 | |
Corporates – Non-Investment Grade | | | – 0 | – | | | 3,982,663 | | | | – 0 | – | | | 3,982,663 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | 3,029,480 | | | | 65 | | | | 3,029,545 | |
Quasi-Sovereigns | | | – 0 | – | | | 2,181,356 | | | | – 0 | – | | | 2,181,356 | |
Local Governments – US Municipal Bonds | | | – 0 | – | | | 1,009,118 | | | | – 0 | – | | | 1,009,118 | |
Governments – Sovereign Bonds | | | – 0 | – | | | 891,830 | | | | – 0 | – | | | 891,830 | |
Emerging Markets – Sovereigns | | | – 0 | – | | | 839,942 | | | | – 0 | – | | | 839,942 | |
Short-Term Investments | | | 16,304,911 | | | | – 0 | – | | | – 0 | – | | | 16,304,911 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 16,304,911 | | | | 649,520,178 | | | | 1,906,153 | | | | 667,731,242 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | | 1,241,473 | | | | – 0 | – | | | – 0 | – | | | 1,241,473 | (b) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | 719,549 | | | | – 0 | – | | | 719,549 | (b) |
Centrally Cleared Inflation (CPI) Swaps | | | – 0 | – | | | 15,724,885 | | | | – 0 | – | | | 15,724,885 | (b) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | 10,580,011 | | | | – 0 | – | | | 10,580,011 | (b) |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (2,593,292 | ) | | | – 0 | – | | | – 0 | – | | | (2,593,292 | )(b) |
Forward Currency Exchange Contracts | | | – 0 | – | | | (36,536 | ) | | | – 0 | – | | | (36,536 | ) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | (536,263 | ) | | | – 0 | – | | | (536,263 | )(b) |
Centrally Cleared Inflation (CPI) Swaps | | | – 0 | – | | | (295,177 | ) | | | – 0 | – | | | (295,177 | )(b) |
| | | | | | | | | | | | | | | | |
Total | | $ | 14,953,092 | | | $ | 675,676,647 | | | $ | 1,906,153 | | | $ | 692,535,892 | |
| | | | | | | | | | | | | | | | |
| (a) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments 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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32 | AB BOND INFLATION STRATEGY | | abfunds.com |
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 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.
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| abfunds.com | | AB BOND INFLATION STRATEGY | 33 |
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 real estate investment trust (“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.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
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
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34 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
invest), on an annual basis (“Expense Caps”) to .75%, 1.50%, .50%, .50%, .60%, .50% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, 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, 2025 and then may be extended for additional one-year terms. For the year ended October 31, 2024, such reimbursement amounted to $1,085,442.
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2024, the reimbursement for such services amounted to $128,087.
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 $132,865 for the year ended October 31, 2024.
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 $2,080 from the sale of Class A shares and received $3,166 and $300 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2024, such waiver amounted to $11,596.
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| abfunds.com | | AB BOND INFLATION STRATEGY | 35 |
NOTES TO FINANCIAL STATEMENTS (continued)
A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
10/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
10/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | – 0 – | | | $ | 271,655 | | | $ | 255,350 | | | $ | 16,305 | | | $ | 387 | |
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the 1940 Act. 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 $305,368, $65,531, $62,315 and $1,583,267 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, and the share class is active, 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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36 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 82,986,219 | | | $ | 77,983,606 | |
U.S. government securities | | | 233,236,154 | | | | 281,189,287 | |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 674,208,831 | |
| | | | |
Gross unrealized appreciation | | $ | 22,883,466 | |
Gross unrealized depreciation | | | (13,840,357 | ) |
| | | | |
Net unrealized appreciation | | $ | 9,043,109 | |
| | | | |
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:
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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly.
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| abfunds.com | | AB BOND INFLATION STRATEGY | 37 |
NOTES TO FINANCIAL STATEMENTS (continued)
Such receipts, payments or adjustments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.
Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the year ended October 31, 2024, 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 year ended October 31, 2024, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.
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38 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund may enter into swaps for investment purposes or 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, rates or indexes for a specified amount of an underlying asset or inflation. 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, inflation 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 subject to mandatory central clearing.
| | |
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| abfunds.com | | AB BOND INFLATION STRATEGY | 39 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
| | |
| |
40 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).
During the year ended October 31, 2024, 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 year ended October 31, 2024, 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
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 41 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024, 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.
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42 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.
During the year ended October 31, 2024, 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 | | $ | 1,241,473 | * | | Payable for variation margin on futures | | $ | 2,593,292 | * |
| | | | |
Credit contracts | | Receivable for variation margin on centrally cleared swaps | | | 8,370 | * | | Payable for variation margin on centrally cleared swaps | | | 785 | * |
| | | | |
Interest rate contracts | | Receivable for variation margin on centrally cleared swaps | | | 17,335,168 | * | | Payable for variation margin on centrally cleared swaps | | | 309,031 | * |
| | | | |
Foreign currency contracts | | | | | | | | Unrealized depreciation on forward currency exchange contracts | | | 36,536 | |
| | | | | | | | | | | | |
Total | | | | $ | 18,585,011 | | | | | $ | 2,939,644 | |
| | | | | | | | | | | | |
| * | 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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| abfunds.com | | AB BOND INFLATION STRATEGY | 43 |
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) | |
Interest rate contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | $ | 1,079,506 | | | $ | 722,504 | |
| | | |
Foreign currency contracts | | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts | | | 17,885 | | | | (55,322 | ) |
| | | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | 2,168,362 | | | | (2,262,807 | ) |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (564,315 | ) | | | (49,342 | ) |
| | | | | | | | | | |
Total | | | | $ | 2,701,438 | | | $ | (1,644,967 | ) |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 214,734,492 | |
Average notional amount of sale contracts | | $ | 17,247,415 | |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 899,607 | (a) |
Average principal amount of sale contracts | | $ | 5,625,136 | |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 90,441,000 | |
Centrally Cleared Inflation Swaps: | | | | |
Average notional amount | | $ | 251,428,462 | |
Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 1,408,642 | (b) |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 36,266,577 | |
Average notional amount of sale contracts | | $ | 32,201,480 | |
| (a) | Positions were open for four months during the year. |
| (b) | Positions were open for nine months during the year. |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
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44 | AB BOND INFLATION STRATEGY | | abfunds.com |
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 October 31, 2024. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Liabilities
Subject
to a MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net
Amount of
Derivative
Liabilities | |
NatWest Markets PLC | | $ | 36,536 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 36,536 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 36,536 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 36,536 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | The actual collateral received/pledged may be more than the amount reported due to over-collateralization. |
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty. |
See Note D.3 for additional disclosure of netting arrangements regarding reverse repurchase agreements.
2. Currency Transactions
The Fund may invest 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. 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
| | |
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| abfunds.com | | AB BOND INFLATION STRATEGY | 45 |
NOTES TO FINANCIAL STATEMENTS (continued)
repurchase price. Under the MRA and other master agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2024, the carrying value of the payable for the reverse repurchase agreements approximated its fair value. If measured at fair value, borrowings under the reverse repurchase agreements would have been considered as a Level 1 investment. For the year ended October 31, 2024, the average amount of reverse repurchase agreements outstanding was $10,207,840 and the daily weighted average interest rate was 5.40%. At October 31, 2024, the Fund had reverse repurchase agreements outstanding in the amount of $15,236,730 as reported on the statement of assets and liabilities.
The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | |
Counterparty | | RVP Liabilities
Subject to a MRA | | | Securities
Collateral
Pledged†* | | | Net Amount of
RVP Liabilities | |
HSBC Securities (USA), Inc. | | $ | 15,236,730 | | | $ | (15,193,045 | ) | | $ | 43,685 | |
| | | | | | | | | | | | |
| † | Including accrued interest. |
| * | The actual collateral pledged may be more than the amount reported due to overcollateralization. |
NOTE E
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | |
Shares sold | | | 886,608 | | | | 1,374,148 | | | | | | | $ | 9,161,416 | | | $ | 14,206,566 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 116,127 | | | | 177,750 | | | | | | | | 1,193,753 | | | | 1,841,367 | | | | | |
| | | | | |
Shares converted from Class C | | | 39,076 | | | | 25,396 | | | | | | | | 404,222 | | | | 260,530 | | | | | |
| | | | | |
Shares redeemed | | | (2,254,698 | ) | | | (3,113,596 | ) | | | | | | | (23,324,374 | ) | | | (32,165,303 | ) | | | | |
| | | | | |
Net decrease | | | (1,212,887 | ) | | | (1,536,302 | ) | | | | | | $ | (12,564,983 | ) | | $ | (15,856,840 | ) | | | | |
| | | | | |
| | |
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46 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class C | | | | | |
Shares sold | | | 2,682 | | | | 107,722 | | | | | | | $ | 26,763 | | | $ | 1,079,055 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 19,246 | | | | 34,730 | | | | | | | | 190,962 | | | | 348,336 | | | | | |
| | | | | |
Shares converted to Class A | | | (40,485 | ) | | | (26,256 | ) | | | | | | | (404,222 | ) | | | (260,530 | ) | | | | |
| | | | | |
Shares redeemed | | | (374,575 | ) | | | (846,986 | ) | | | | | | | (3,752,011 | ) | | | (8,475,373 | ) | | | | |
| | | | | |
Net decrease | | | (393,132 | ) | | | (730,790 | ) | | | | | | $ | (3,938,508 | ) | | $ | (7,308,512 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | |
Shares sold | | | 6,655,568 | | | | 8,103,379 | | | | | | | $ | 68,892,877 | | | $ | 84,039,313 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 640,266 | | | | 1,049,467 | | | | | | | | 6,599,131 | | | | 10,891,755 | | | | | |
| | | | | |
Shares redeemed | | | (11,102,736 | ) | | | (36,258,220 | ) | | | | | | | (114,822,897 | ) | | | (377,020,172 | ) | | | | |
| | | | | |
Net decrease | | | (3,806,902 | ) | | | (27,105,374 | ) | | | | | | $ | (39,330,889 | ) | | $ | (282,089,104 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | |
Shares sold | | | 64,431 | | | | 62,283 | | | | | | | $ | 669,013 | | | $ | 647,299 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 5,201 | | | | 9,426 | | | | | | | | 53,397 | | | | 97,891 | | | | | |
| | | | | |
Shares redeemed | | | (309,251 | ) | | | (87,272 | ) | | | | | | | (3,193,722 | ) | | | (905,130 | ) | | | | |
| | | | | |
Net decrease | | | (239,619 | ) | | | (15,563 | ) | | | | | | $ | (2,471,312 | ) | | $ | (159,940 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class K | | | | | |
Shares sold | | | 72,121 | | | | 131,607 | | | | | | | $ | 744,293 | | | $ | 1,359,848 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 8,080 | | | | 19,301 | | | | | | | | 82,429 | | | | 199,485 | | | | | |
| | | | | |
Shares redeemed | | | (535,829 | ) | | | (120,706 | ) | | | | | | | (5,498,942 | ) | | | (1,233,703 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (455,628 | ) | | | 30,202 | | | | | | | $ | (4,672,220 | ) | | $ | 325,630 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | | |
Shares sold | | | 330,434 | | | | 260,243 | | | | | | | $ | 3,370,446 | | | $ | 2,649,082 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 27,868 | | | | 25,398 | | | | | | | | 283,511 | | | | 259,635 | | | | | |
| | | | | |
Shares redeemed | | | (305,121 | ) | | | (356,853 | ) | | | | | | | (3,113,419 | ) | | | (3,634,655 | ) | | | | |
| | | | | |
Net increase (decrease) | | | 53,181 | | | | (71,212 | ) | | | | | | $ | 540,538 | | | $ | (725,938 | ) | | | | |
| | | | | |
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 47 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class 1 | | | | | |
Shares sold | | | 8,901,070 | | | | 6,139,563 | | | | | | | $ | 90,409,953 | | | $ | 62,318,139 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 961,987 | | | | 1,228,769 | | | | | | | | 9,656,661 | | | | 12,427,665 | | | | | |
| | | | | |
Shares redeemed | | | (10,973,081 | ) | | | (11,321,158 | ) | | | | | | | (110,551,411 | ) | | | (114,476,455 | ) | | | | |
| | | | | |
Net decrease | | | (1,110,024 | ) | | | (3,952,826 | ) | | | | | | $ | (10,484,797 | ) | | $ | (39,730,651 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class 2 | | | | | |
Shares sold | | | 592,429 | | | | 394,500 | | | | | | | $ | 5,980,619 | | | $ | 4,022,442 | | | | | |
| | | | | |
Share issued in reinvestment of dividends | | | 147,533 | | | | 178,128 | | | | | | | | 1,480,571 | | | | 1,800,737 | | | | | |
| | | | | |
Shares redeemed | | | (1,471,879 | ) | | | (2,212,509 | ) | | | | | | | (14,806,373 | ) | | | (22,375,665 | ) | | | | |
| | | | | |
Net decrease | | | (731,917 | ) | | | (1,639,881 | ) | | | | | | $ | (7,345,183 | ) | | $ | (16,552,486 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z | | | | | |
Shares sold | | | 2,401,771 | | | | 637,043 | | | | | | | $ | 24,254,662 | | | $ | 6,411,147 | | | | | |
| | | | | |
Share issued in reinvestment of dividends | | | 111,148 | | | | 51,428 | | | | | | | | 1,123,294 | | | | 521,312 | | | | | |
| | | | | |
Shares redeemed | | | (844,397 | ) | | | (281,603 | ) | | | | | | | (8,580,715 | ) | | | (2,851,692 | ) | | | | |
| | | | | |
Net increase | | | 1,668,522 | | | | 406,868 | | | | | | | $ | 16,797,241 | | | $ | 4,080,767 | | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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.
| | |
| |
48 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. 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 effects of potential central bank monetary policy, and government fiscal policy, initiatives and 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. 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, reference rate or index, 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
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 49 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 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.
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.
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.
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50 | AB BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (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.
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 year ended October 31, 2024.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended October 31, 2024 and October 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 27,942,855 | | | $ | 38,249,959 | |
| | | | | | | | |
Total taxable distributions paid | | $ | 27,942,855 | | | $ | 38,249,959 | |
| | | | | | | | |
As of October 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 1,028,016 | |
Accumulated capital and other losses | | | (134,067,547 | )(a) |
Unrealized appreciation (depreciation) | | | 9,036,459 | (b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (124,003,072 | )(c) |
| | | | |
| (a) | As of October 31, 2024, the Fund had a net capital loss carryforward of $134,067,547. |
| (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 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
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 51 |
NOTES TO FINANCIAL STATEMENTS (continued)
either short-term or long-term capital losses. As of October 31, 2024, the Fund had a net short-term capital loss carryforward of $57,034,851 and a net long-term capital loss carryforward of $77,032,696, which may be carried forward for an indefinite period.
During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.
NOTE I
Recent Accounting Pronouncements
In 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.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
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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52 | AB BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 10.02 | | | | $ 10.29 | | | | $ 11.97 | | | | $ 11.56 | | | | $ 10.95 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .39 | | | | .43 | | | | .64 | | | | .51 | | | | .25 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .44 | | | | (.26 | ) | | | (1.66 | ) | | | .35 | | | | .59 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .83 | | | | .17 | | | | (1.02 | ) | | | .86 | | | | .84 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.43 | ) | | | (.44 | ) | | | (.62 | ) | | | (.45 | ) | | | (.23 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.43 | ) | | | (.44 | ) | | | (.66 | ) | | | (.45 | ) | | | (.23 | ) |
| | | | |
Net asset value, end of period | | | $ 10.42 | | | | $ 10.02 | | | | $ 10.29 | | | | $ 11.97 | | | | $ 11.56 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.46 | % | | | 1.70 | % | | | (8.93 | )% | | | 7.63 | % | | | 7.64 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $36,111 | | | | $46,881 | | | | $63,936 | | | | $54,687 | | | | $31,248 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .84 | % | | | .86 | % | | | .84 | % | | | .78 | % | | | .91 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | 1.08 | % | | | 1.09 | % | | | 1.04 | % | | | 1.00 | % | | | 1.18 | % |
| | | | | |
Net investment income(b) | | | 3.76 | % | | | 4.16 | % | | | 5.69 | % | | | 4.29 | % | | | 2.26 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 53 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 9.68 | | | | $ 9.96 | | | | $ 11.63 | | | | $ 11.25 | | | | $ 10.67 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .31 | | | | .33 | | | | .54 | | | | .44 | | | | .18 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .42 | | | | (.24 | ) | | | (1.62 | ) | | | .31 | | | | .56 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .73 | | | | .09 | | | | (1.08 | ) | | | .75 | | | | .74 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.36 | ) | | | (.37 | ) | | | (.55 | ) | | | (.37 | ) | | | (.16 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.36 | ) | | | (.37 | ) | | | (.59 | ) | | | (.37 | ) | | | (.16 | ) |
| | | | |
Net asset value, end of period | | | $ 10.05 | | | | $ 9.68 | | | | $ 9.96 | | | | $ 11.63 | | | | $ 11.25 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 7.64 | % | | | .85 | % | | | (9.58 | )% | | | 6.87 | % | | | 6.92 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $4,328 | | | | $7,973 | | | | $15,480 | | | | $12,915 | | | | $3,823 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | 1.59 | % | | | 1.62 | % | | | 1.59 | % | | | 1.53 | % | | | 1.64 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | 1.83 | % | | | 1.85 | % | | | 1.78 | % | | | 1.75 | % | | | 1.91 | % |
| | | | | |
Net investment income(b) | | | 3.06 | % | | | 3.33 | % | | | 4.91 | % | | | 3.79 | % | | | 1.62 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
| |
54 | AB BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 10.03 | | | | $ 10.30 | | | | $ 11.99 | | | | $ 11.57 | | | | $ 10.96 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .42 | | | | .44 | | | | .67 | | | | .57 | | | | .27 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .44 | | | | (.25 | ) | | | (1.67 | ) | | | .33 | | | | .60 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .86 | | | | .19 | | | | (1.00 | ) | | | .90 | | | | .87 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.46 | ) | | | (.46 | ) | | | (.65 | ) | | | (.48 | ) | | | (.26 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.46 | ) | | | (.46 | ) | | | (.69 | ) | | | (.48 | ) | | | (.26 | ) |
| | | | |
Net asset value, end of period | | | $ 10.43 | | | | $ 10.03 | | | | $ 10.30 | | | | $ 11.99 | | | | $ 11.57 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.63 | % | | | 1.93 | % | | | (8.72 | )% | | | 7.98 | % | | | 7.93 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $190,047 | | | | $220,987 | | | | $506,033 | | | | $475,604 | | | | $135,677 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .59 | % | | | .62 | % | | | .59 | % | | | .53 | % | | | .66 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | .83 | % | | | .85 | % | | | .78 | % | | | .74 | % | | | .92 | % |
| | | | | |
Net investment income(b) | | | 4.07 | % | | | 4.23 | % | | | 5.95 | % | | | 4.76 | % | | | 2.44 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 55 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class I | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 9.90 | | | | $ 10.17 | | | | $ 11.84 | | | | $ 11.44 | | | | $ 10.84 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .43 | | | | .46 | | | | .66 | | | | .51 | | | | .27 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .42 | | | | (.26 | ) | | | (1.64 | ) | | | .37 | | | | .59 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .85 | | | | .20 | | | | (.98 | ) | | | .88 | | | | .86 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.46 | ) | | | (.47 | ) | | | (.65 | ) | | | (.48 | ) | | | (.26 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.46 | ) | | | (.47 | ) | | | (.69 | ) | | | (.48 | ) | | | (.26 | ) |
| | | | |
Net asset value, end of period | | | $ 10.29 | | | | $ 9.90 | | | | $ 10.17 | | | | $ 11.84 | | | | $ 11.44 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.74 | % | | | 1.88 | % | | | (8.67 | )% | | | 7.88 | % | | | 7.97 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $6,303 | | | | $5,539 | | | | $6,414 | | | | $6,093 | | | | $8,297 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .59 | % | | | .61 | % | | | .59 | % | | | .53 | % | | | .65 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | .82 | % | | | .83 | % | | | .78 | % | | | .74 | % | | | .88 | % |
| | | | | |
Net investment income(b) | | | 4.19 | % | | | 4.50 | % | | | 5.92 | % | | | 4.31 | % | | | 2.42 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
| |
56 | AB BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class 1 | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 9.78 | | | | $ 10.06 | | | | $ 11.73 | | | | $ 11.35 | | | | $ 10.77 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .40 | | | | .44 | | | | .64 | | | | .52 | | | | .26 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .43 | | | | (.26 | ) | | | (1.62 | ) | | | .34 | | | | .59 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .83 | | | | .18 | | | | (.98 | ) | | | .86 | | | | .85 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.45 | ) | | | (.46 | ) | | | (.65 | ) | | | (.48 | ) | | | (.27 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.45 | ) | | | (.46 | ) | | | (.69 | ) | | | (.48 | ) | | | (.27 | ) |
| | | | |
Net asset value, end of period | | | $ 10.16 | | | | $ 9.78 | | | | $ 10.06 | | | | $ 11.73 | | | | $ 11.35 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.53 | % | | | 1.84 | % | | | (8.75 | )% | | | 7.77 | % | | | 7.84 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $342,511 | | | | $340,649 | | | | $390,055 | | | | $377,333 | | | | $312,381 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .69 | % | | | .71 | % | | | .69 | % | | | .63 | % | | | .75 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | .81 | % | | | .83 | % | | | .78 | % | | | .75 | % | | | .88 | % |
| | | | | |
Net investment income(b) | | | 3.92 | % | | | 4.34 | % | | | 5.76 | % | | | 4.44 | % | | | 2.42 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 57 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class 2 | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 9.78 | | | | $ 10.06 | | | | $ 11.73 | | | | $ 11.34 | | | | $ 10.76 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .41 | | | | .44 | | | | .64 | | | | .53 | | | | .28 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .43 | | | | (.25 | ) | | | (1.61 | ) | | | .35 | | | | .58 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .84 | | | | .19 | | | | (.97 | ) | | | .88 | | | | .86 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.46 | ) | | | (.47 | ) | | | (.66 | ) | | | (.49 | ) | | | (.28 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.46 | ) | | | (.47 | ) | | | (.70 | ) | | | (.49 | ) | | | (.28 | ) |
| | | | |
Net asset value, end of period | | | $ 10.16 | | | | $ 9.78 | | | | $ 10.06 | | | | $ 11.73 | | | | $ 11.34 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.75 | % | | | 1.94 | % | | | (8.77 | )% | | | 7.98 | % | | | 7.96 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $35,768 | | | | $41,599 | | | | $59,262 | | | | $66,348 | | | | $60,289 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .59 | % | | | .61 | % | | | .58 | % | | | .53 | % | | | .65 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | .72 | % | | | .73 | % | | | .67 | % | | | .65 | % | | | .78 | % |
| | | | | |
Net investment income(b) | | | 4.09 | % | | | 4.38 | % | | | 5.75 | % | | | 4.51 | % | | | 2.53 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
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58 | AB BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 9.82 | | | | $ 10.10 | | | | $ 11.77 | | | | $ 11.38 | | | | $ 10.80 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .42 | | | | .46 | | | | .67 | | | | .56 | | | | .24 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .42 | | | | (.27 | ) | | | (1.65 | ) | | | .32 | | | | .62 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .84 | | | | .19 | | | | (.98 | ) | | | .88 | | | | .86 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.46 | ) | | | (.47 | ) | | | (.65 | ) | | | (.49 | ) | | | (.28 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.46 | ) | | | (.47 | ) | | | (.69 | ) | | | (.49 | ) | | | (.28 | ) |
| | | | |
Net asset value, end of period | | | $ 10.20 | | | | $ 9.82 | | | | $ 10.10 | | | | $ 11.77 | | | | $ 11.38 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(c) | | | 8.71 | % | | | 1.83 | % | | | (8.65 | )% | | | 7.94 | % | | | 7.92 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $31,605 | | | | $14,036 | | | | $10,320 | | | | $20,910 | | | | $11,016 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(d) | | | .59 | % | | | .60 | % | | | .58 | % | | | .53 | % | | | .67 | % |
| | | | | |
Expenses, before waivers/reimbursements(d) | | | .73 | % | | | .74 | % | | | .68 | % | | | .65 | % | | | .81 | % |
| | | | | |
Net investment income(b) | | | 4.15 | % | | | 4.53 | % | | | 6.02 | % | | | 4.81 | % | | | 2.16 | % |
| | | | | |
Portfolio turnover rate | | | 50 | % | | | 125 | % | | | 79 | % | | | 62 | % | | | 48 | % |
See footnote summary on page 60.
| | |
| |
| abfunds.com | | AB BOND INFLATION STRATEGY | 59 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| (a) | Based on average shares outstanding. |
| (b) | Net of expenses waived/reimbursed by the Adviser. |
| (c) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized. |
| (d) | The expense ratios presented below exclude interest/bank overdraft expense: |
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
Class A | |
Net of waivers/reimbursements | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % |
Before waivers/reimbursements | | | .99 | % | | | .98 | % | | | .95 | % | | | .97 | % | | | 1.01 | % |
Class C | |
Net of waivers/reimbursements | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % |
Before waivers/reimbursements | | | 1.74 | % | | | 1.73 | % | | | 1.69 | % | | | 1.72 | % | | | 1.77 | % |
Advisor Class | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .74 | % | | | .73 | % | | | .69 | % | | | .72 | % | | | .77 | % |
Class I | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .73 | % | | | .72 | % | | | .69 | % | | | .71 | % | | | .73 | % |
Class 1 | |
Net of waivers/reimbursements | | | .60 | % | | | .60 | % | | | .60 | % | | | .60 | % | | | .60 | % |
Before waivers/reimbursements | | | .72 | % | | | .72 | % | | | .69 | % | | | .72 | % | | | .73 | % |
Class 2 | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .62 | % | | | .62 | % | | | .59 | % | | | .62 | % | | | .63 | % |
Class Z | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .63 | % | | | .63 | % | | | .60 | % | | | .62 | % | | | .63 | % |
See notes to financial statements.
| | |
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60 | AB BOND INFLATION STRATEGY | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
AB Bond Inflation Strategy
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
| | |
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| abfunds.com | | AB BOND INFLATION STRATEGY | 61 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of the AB investment companies since 1968.
New York, New York
December 23, 2024
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62 | AB BOND INFLATION STRATEGY | | abfunds.com |
2024 FEDERAL TAX INFORMATION
(unaudited)
For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2024. For foreign shareholders, 89.95% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.
Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2025.
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| abfunds.com | | AB BOND INFLATION STRATEGY | 63 |
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 July 30-31, 2024 (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
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64 | AB BOND INFLATION STRATEGY | | abfunds.com |
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 2022 and 2023 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
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| abfunds.com | | AB BOND INFLATION STRATEGY | 65 |
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 Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2024 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 noted the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.
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66 | AB BOND INFLATION STRATEGY | | abfunds.com |
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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year and reflected the impact of 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 equal to the median of a peer group
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| abfunds.com | | AB BOND INFLATION STRATEGY | 67 |
and above the median of a peer universe. 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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68 | AB BOND INFLATION STRATEGY | | abfunds.com |
AB BOND INFLATION STRATEGY
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
BIS-0151-1024 
OCT 10.31.24
ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
GOVERNMENTS - TREASURIES – 46.7% | | | | | | | | | | | | |
Brazil – 1.9% | | | | | | | | | | | | |
Brazil Letras do Tesouro Nacional
Series LTN
Zero Coupon, 04/01/2025 | | | BRL | | | | 289,350 | | | $ | 47,826,914 | |
| | | | | | | | | | | | |
| | | |
United States – 44.8% | | | | | | | | | | | | |
U.S. Treasury Bonds
3.00%, 08/15/2052(a) | | | U.S.$ | | | | 39,563 | | | | 30,030,790 | |
4.25%, 02/15/2054 | | | | | | | 93,128 | | | | 89,620,956 | |
4.25%, 08/15/2054 | | | | | | | 4,985 | | | | 4,801,178 | |
4.50%, 02/15/2044(a) | | | | | | | 82,973 | | | | 82,091,412 | |
4.625%, 05/15/2044 | | | | | | | 26,634 | | | | 26,771,332 | |
U.S. Treasury Notes
3.50%, 09/30/2029 | | | | | | | 29,553 | | | | 28,693,922 | |
3.75%, 12/31/2028 | | | | | | | 21,242 | | | | 20,903,456 | |
3.875%, 08/15/2034 | | | | | | | 23,885 | | | | 23,108,737 | |
4.00%, 07/31/2029 | | | | | | | 17,300 | | | | 17,181,062 | |
4.125%, 09/30/2027(a)(b) | | | | | | | 272,609 | | | | 272,566,205 | |
4.125%, 07/31/2028 | | | | | | | 88,642 | | | | 88,531,597 | |
4.125%, 03/31/2029 | | | | | | | 15,230 | | | | 15,203,823 | |
4.125%, 10/31/2029 | | | | | | | 16,350 | | | | 16,327,008 | |
4.25%, 06/30/2029 | | | | | | | 11,500 | | | | 11,541,328 | |
4.50%, 11/15/2033 | | | | | | | 3,262 | | | | 3,316,128 | |
4.625%, 04/30/2029 | | | | | | | 11,700 | | | | 11,919,375 | |
4.75%, 07/31/2025 | | | | | | | 197,318 | | | | 197,810,794 | |
4.875%, 10/31/2028 | | | | | | | 36,260 | | | | 37,194,828 | |
5.00%, 08/31/2025 | | | | | | | 148,000 | | | | 148,670,625 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,126,284,556 | |
| | | | | | | | | | | | |
Total Governments - Treasuries
(cost $1,183,297,551) | | | | | | | | | | | 1,174,111,470 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
MORTGAGE PASS-THROUGHS – 28.3% | | | | | | | | | |
Agency Fixed Rate 30-Year – 28.3% | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp.
Series 2023
6.00%, 10/01/2053 | | | | | | | 4,315 | | | | 4,344,035 | |
6.00%, 11/01/2053 | | | | | | | 4,346 | | | | 4,375,097 | |
6.50%, 11/01/2053 | | | | | | | 7,995 | | | | 8,160,428 | |
Federal National Mortgage Association
Series 1998
8.00%, 06/01/2028 | | | | | | | 0 | ** | | | 228 | |
Series 1999
7.50%, 11/01/2029 | | | | | | | 3 | | | | 3,456 | |
Series 2020
2.50%, 12/01/2050 | | | | | | | 80,540 | | | | 66,737,593 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2022
3.00%, 03/01/2052 | | | U.S.$ | | | | 19,676 | | | $ | 17,008,645 | |
3.00%, 08/01/2052 | | | | | | | 12,913 | | | | 11,129,244 | |
Series 2024
3.00%, 07/01/2052 | | | | | | | 9,446 | | | | 8,147,569 | |
Government National Mortgage Association
Series 2021
4.50%, 11/20/2054, TBA | | | | | | | 57,336 | | | | 54,737,562 | |
Series 2023
5.00%, 05/20/2053 | | | | | | | 7,298 | | | | 7,142,087 | |
5.00%, 09/20/2053 | | | | | | | 778 | | | | 759,998 | |
5.50%, 05/20/2053 | | | | | | | 38,235 | | | | 38,074,042 | |
5.50%, 08/20/2053 | | | | | | | 31,333 | | | | 31,181,653 | |
Series 2024
5.00%, 04/20/2054 | | | | | | | 3,159 | | | | 3,088,243 | |
Uniform Mortgage-Backed Security
Series 2022
2.00%, 11/14/2054, TBA | | | | | | | 41,300 | | | | 32,759,288 | |
2.50%, 11/14/2054, TBA | | | | | | | 15,800 | | | | 13,086,843 | |
4.00%, 11/14/2054, TBA | | | | | | | 44,832 | | | | 41,453,676 | |
Series 2023
3.00%, 11/14/2054, TBA | | | | | | | 91,074 | | | | 78,437,588 | |
3.50%, 11/14/2054, TBA | | | | | | | 61,081 | | | | 54,653,484 | |
4.50%, 11/14/2054, TBA | | | | | | | 5,755 | | | | 5,466,368 | |
5.00%, 11/14/2054, TBA | | | | | | | 71,077 | | | | 69,072,638 | |
5.50%, 11/15/2054, TBA | | | | | | | 9,700 | | | | 9,607,168 | |
6.00%, 11/15/2054, TBA | | | | | | | 87,400 | | | | 87,959,902 | |
6.50%, 11/15/2054, TBA | | | | | | | 62,500 | | | | 63,793,944 | |
| | | | | | | | | | | | |
| | | |
Total Mortgage Pass-Throughs
(cost $711,587,125) | | | | | | | | | | | 711,180,779 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
CORPORATES - INVESTMENT GRADE – 16.0% | | | | | | | | | | | | |
Industrial – 7.3% | | | | | | | | | | | | |
Basic – 0.9% | | | | | | | | | | | | |
Alpek SAB de CV
4.25%, 09/18/2029(c) | | | | | | | 1,380 | | | | 1,290,438 | |
Anglo American Capital PLC
2.625%, 09/10/2030(c) | | | | | | | 707 | | | | 615,677 | |
2.875%, 03/17/2031(c) | | | | | | | 3,700 | | | | 3,229,397 | |
Celulosa Arauco y Constitucion SA
4.25%, 04/30/2029(c) | | | | | | | 1,355 | | | | 1,275,746 | |
Freeport Indonesia PT
4.763%, 04/14/2027(c) | | | | | | | 964 | | | | 959,180 | |
Inversiones CMPC SA
6.125%, 02/26/2034(c) | | | | | | | 429 | | | | 437,151 | |
| | |
| |
2 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Nexa Resources SA
5.375%, 05/04/2027(c) | | | U.S.$ | | | | 405 | | | $ | 402,149 | |
6.75%, 04/09/2034(c) | | | | | | | 2,066 | | | | 2,122,815 | |
Orbia Advance Corp. SAB de CV
1.875%, 05/11/2026(c) | | | | | | | 529 | | | | 499,429 | |
2.875%, 05/11/2031(c) | | | | | | | 3,275 | | | | 2,704,167 | |
4.00%, 10/04/2027(c) | | | | | | | 255 | | | | 243,805 | |
Sociedad Quimica y Minera de Chile SA
4.25%, 05/07/2029(c) | | | | | | | 704 | | | | 677,600 | |
5.50%, 09/10/2034(c) | | | | | | | 800 | | | | 768,400 | |
6.50%, 11/07/2033(c) | | | | | | | 1,016 | | | | 1,060,694 | |
Suzano Austria GmbH
6.00%, 01/15/2029 | | | | | | | 5,115 | | | | 5,177,339 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,463,987 | |
| | | | | | | | | | | | |
Capital Goods – 0.5% | | | | | | | | | | | | |
Boeing Co. (The)
3.25%, 02/01/2028 | | | | | | | 2,117 | | | | 1,988,011 | |
3.625%, 02/01/2031 | | | | | | | 1,656 | | | | 1,494,971 | |
5.15%, 05/01/2030 | | | | | | | 2,203 | | | | 2,176,366 | |
6.298%, 05/01/2029(c) | | | | | | | 2,856 | | | | 2,958,902 | |
6.528%, 05/01/2034(c) | | | | | | | 3,285 | | | | 3,463,145 | |
St. Marys Cement, Inc. Canada
5.75%, 04/02/2034(c) | | | | | | | 579 | | | | 581,895 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,663,290 | |
| | | | | | | | | | | | |
Communications - Media – 0.9% | | | | | | | | | | | | |
DirecTV Financing LLC
8.875%, 02/01/2030(c) | | | | | | | 2,242 | | | | 2,215,230 | |
DirecTV Financing LLC/DirecTV Financing Co-Obligor, Inc.
5.875%, 08/15/2027(c) | | | | | | | 2,691 | | | | 2,591,433 | |
Grupo Televisa SAB
4.625%, 01/30/2026(d) | | | | | | | 1,290 | | | | 1,264,832 | |
6.625%, 03/18/2025 | | | | | | | 205 | | | | 204,900 | |
Paramount Global
4.20%, 06/01/2029 | | | | | | | 379 | | | | 354,714 | |
4.20%, 05/19/2032 | | | | | | | 1,121 | | | | 975,763 | |
4.95%, 01/15/2031 | | | | | | | 764 | | | | 709,504 | |
5.50%, 05/15/2033 | | | | | | | 685 | | | | 635,077 | |
6.875%, 04/30/2036 | | | | | | | 764 | | | | 763,603 | |
7.875%, 07/30/2030 | | | | | | | 734 | | | | 790,577 | |
Prosus NV
3.061%, 07/13/2031(c) | | | | | | | 3,143 | | | | 2,675,479 | |
3.68%, 01/21/2030(c) | | | | | | | 5,224 | | | | 4,775,062 | |
Warnermedia Holdings, Inc.
3.755%, 03/15/2027 | | | | | | | 1,400 | | | | 1,347,934 | |
4.279%, 03/15/2032 | | | | | | | 1,286 | | | | 1,128,079 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Weibo Corp.
3.375%, 07/08/2030 | | | U.S.$ | | | | 3,312 | | | $ | 2,971,858 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 23,404,045 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 1.8% | | | | | | | | | | | | |
Ford Motor Co.
3.25%, 02/12/2032 | | | | | | | 9,159 | | | | 7,669,563 | |
Ford Motor Credit Co., LLC
6.05%, 03/05/2031 | | | | | | | 3,380 | | | | 3,400,686 | |
6.125%, 03/08/2034 | | | | | | | 1,474 | | | | 1,459,142 | |
General Motors Financial Co., Inc.
2.35%, 01/08/2031 | | | | | | | 1,660 | | | | 1,397,969 | |
2.70%, 06/10/2031 | | | | | | | 5,419 | | | | 4,602,790 | |
3.60%, 06/21/2030 | | | | | | | 832 | | | | 762,753 | |
5.75%, 02/08/2031 | | | | | | | 6,336 | | | | 6,453,659 | |
Harley-Davidson Financial Services, Inc.
5.95%, 06/11/2029(c) | | | | | | | 5,180 | | | | 5,191,033 | |
Hyundai Capital America
4.55%, 09/26/2029(c) | | | | | | | 2,007 | | | | 1,958,150 | |
5.25%, 01/08/2027(c) | | | | | | | 949 | | | | 956,042 | |
5.30%, 06/24/2029(c) | | | | | | | 2,780 | | | | 2,800,711 | |
5.35%, 03/19/2029(c) | | | | | | | 4,737 | | | | 4,777,786 | |
6.50%, 01/16/2029(c) | | | | | | | 1,536 | | | | 1,613,629 | |
Nissan Motor Acceptance Co., LLC
5.30%, 09/13/2027(c) | | | | | | | 2,675 | | | | 2,630,702 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 45,674,615 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.1% | | | | | | | | | | | | |
Carnival Corp.
4.00%, 08/01/2028(c) | | | | | | | 2,838 | | | | 2,706,657 | |
Hasbro, Inc.
6.05%, 05/14/2034 | | | | | | | 954 | | | | 974,006 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,680,663 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 0.2% | | | | | | | | | | | | |
Flutter Treasury DAC
5.00%, 04/29/2029(c) | | | EUR | | | | 179 | | | | 199,665 | |
6.375%, 04/29/2029(c) | | | U.S.$ | | | | 347 | | | | 355,106 | |
GENM Capital Labuan Ltd.
3.882%, 04/19/2031(c) | | | | | | | 1,673 | | | | 1,493,675 | |
Resorts World Las Vegas LLC/RWLV Capital, Inc.
4.625%, 04/16/2029(c) | | | | | | | 1,100 | | | | 970,024 | |
Sands China Ltd.
2.85%, 03/08/2029(e) | | | | | | | 318 | | | | 285,106 | |
5.125%, 08/08/2025(e) | | | | | | | 2,880 | | | | 2,867,731 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,171,307 | |
| | | | | | | | | | | | |
| | |
| |
4 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Consumer Cyclical - Retailers – 0.1% | | | | | | | | | | | | |
Zhongsheng Group Holdings Ltd.
5.98%, 01/30/2028(c) | | | U.S.$ | | | | 1,530 | | | $ | 1,506,086 | |
| | | | | | | | | | | | |
| | | |
Consumer Non-Cyclical – 0.9% | | | | | | | | | | | | |
Cencosud SA
5.95%, 05/28/2031(c) | | | | | | | 1,289 | | | | 1,305,242 | |
CVS Health Corp.
5.55%, 06/01/2031 | | | | | | | 9,473 | | | | 9,549,068 | |
Imperial Brands Finance PLC
5.50%, 02/01/2030(c) | | | | | | | 5,863 | | | | 5,924,268 | |
Philip Morris International, Inc.
5.50%, 09/07/2030 | | | | | | | 5,999 | | | | 6,174,111 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 22,952,689 | |
| | | | | | | | | | | | |
Energy – 1.0% | | | | | | | | | | | | |
Continental Resources, Inc./OK
2.875%, 04/01/2032(c) | | | | | | | 865 | | | | 715,147 | |
5.75%, 01/15/2031(c) | | | | | | | 5,823 | | | | 5,825,038 | |
EQM Midstream Partners LP
4.75%, 01/15/2031(c) | | | | | | | 538 | | | | 511,159 | |
5.50%, 07/15/2028 | | | | | | | 2,700 | | | | 2,688,633 | |
KazMunayGas National Co. JSC
5.375%, 04/24/2030(c) | | | | | | | 3,920 | | | | 3,863,670 | |
Occidental Petroleum Corp.
5.20%, 08/01/2029 | | | | | | | 3,682 | | | | 3,668,487 | |
5.375%, 01/01/2032 | | | | | | | 3,830 | | | | 3,779,329 | |
Ovintiv, Inc.
6.50%, 02/01/2038 | | | | | | | 1,097 | | | | 1,129,680 | |
Raizen Fuels Finance SA
6.45%, 03/05/2034(c) | | | | | | | 1,769 | | | | 1,804,592 | |
Var Energi ASA
8.00%, 11/15/2032(c) | | | | | | | 1,436 | | | | 1,627,907 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,613,642 | |
| | | | | | | | | | | | |
Technology – 0.4% | | | | | | | | | | | | |
Baidu, Inc.
3.425%, 04/07/2030 | | | | | | | 225 | | | | 209,506 | |
Entegris, Inc.
4.75%, 04/15/2029(c) | | | | | | | 7,688 | | | | 7,444,060 | |
Lenovo Group Ltd.
3.421%, 11/02/2030(c) | | | | | | | 509 | | | | 461,440 | |
SK Hynix, Inc.
5.50%, 01/16/2029(c) | | | | | | | 2,000 | | | | 2,021,100 | |
Western Digital Corp.
2.85%, 02/01/2029 | | | | | | | 185 | | | | 163,764 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,299,870 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Transportation - Airlines – 0.2% | | | | | | | | | | | | |
Air Canada
3.875%, 08/15/2026(c) | | | U.S.$ | | | | 300 | | | $ | 290,400 | |
AS Mileage Plan IP Ltd.
5.021%, 10/20/2029(c) | | | | | | | 1,635 | | | | 1,586,457 | |
5.308%, 10/20/2031(c) | | | | | | | 2,127 | | | | 2,055,235 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,932,092 | |
| | | | | | | | | | | | |
Transportation - Railroads – 0.1% | | | | | | | | | | | | |
Lima Metro Line 2 Finance Ltd.
4.35%, 04/05/2036(c) | | | | | | | 483 | | | | 441,887 | |
5.875%, 07/05/2034(c) | | | | | | | 1,382 | | | | 1,375,203 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,817,090 | |
| | | | | | | | | | | | |
Transportation - Services – 0.2% | | | | | | | | | | | | |
Adani Ports & Special Economic Zone Ltd.
4.00%, 07/30/2027(c) | | | | | | | 4,585 | | | | 4,355,750 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 183,535,126 | |
| | | | | | | | | | | | |
Financial Institutions – 6.8% | | | | | | | | | | | | |
Banking – 4.8% | | | | | | | | | | | | |
Ally Financial, Inc.
6.848%, 01/03/2030 | | | | | | | 2,409 | | | | 2,503,842 | |
6.992%, 06/13/2029 | | | | | | | 4,859 | | | | 5,070,172 | |
8.00%, 11/01/2031 | | | | | | | 75 | | | | 83,436 | |
Series B
4.70%, 05/15/2026(f) | | | | | | | 3,727 | | | | 3,357,878 | |
Banco de Credito del Peru SA
5.85%, 01/11/2029(c) | | | | | | | 146 | | | | 148,689 | |
Banco Santander SA
3.225%, 11/22/2032 | | | | | | | 200 | | | | 172,586 | |
4.175%, 03/24/2028 | | | | | | | 2,800 | | | | 2,745,372 | |
5.552%, 03/14/2028 | | | | | | | 800 | | | | 808,304 | |
6.921%, 08/08/2033 | | | | | | | 5,400 | | | | 5,811,210 | |
Bank Leumi Le-Israel BM
7.129%, 07/18/2033(c) | | | | | | | 1,300 | | | | 1,303,250 | |
Bank of Ireland Group PLC
5.601%, 03/20/2030(c) | | | | | | | 2,576 | | | | 2,621,853 | |
Barclays PLC
4.942%, 09/10/2030 | | | | | | | 2,380 | | | | 2,353,201 | |
5.674%, 03/12/2028 | | | | | | | 1,312 | | | | 1,332,467 | |
BBVA Bancomer SA/Texas
5.25%, 09/10/2029(c) | | | | | | | 1,260 | | | | 1,246,770 | |
BPCE SA
Series E
0.75%, 03/03/2031(c) | | | EUR | | | | 2,000 | | | | 1,832,772 | |
4.125%, 03/08/2033(c) | | | | | | | 400 | | | | 443,728 | |
CaixaBank SA
5.673%, 03/15/2030(c) | | | U.S.$ | | | | 3,239 | | | | 3,291,083 | |
6.84%, 09/13/2034(c) | | | | | | | 3,893 | | | | 4,211,720 | |
| | |
| |
6 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Capital One Financial Corp.
5.70%, 02/01/2030 | | U.S.$ | | | 1,096 | | | $ | 1,116,813 | |
6.377%, 06/08/2034 | | | | | 4,743 | | | | 4,969,953 | |
7.624%, 10/30/2031 | | | | | 3,035 | | | | 3,372,219 | |
Citigroup, Inc.
5.827%, 02/13/2035 | | | | | 691 | | | | 696,908 | |
Series V
4.70%, 01/30/2025(f) | | | | | 1,811 | | | | 1,799,555 | |
Series X
3.875%, 02/18/2026(f) | | | | | 3,286 | | | | 3,177,036 | |
Danske Bank A/S
3.244%, 12/20/2025(c) | | | | | 200 | | | | 199,250 | |
Deutsche Bank AG/New York NY
4.999%, 09/11/2030 | | | | | 1,537 | | | | 1,513,376 | |
7.079%, 02/10/2034 | | | | | 2,615 | | | | 2,743,893 | |
7.146%, 07/13/2027 | | | | | 962 | | | | 993,275 | |
Discover Financial Services
7.964%, 11/02/2034 | | | | | 2,530 | | | | 2,902,871 | |
HSBC Holdings PLC
5.546%, 03/04/2030 | | | | | 7,485 | | | | 7,600,868 | |
7.399%, 11/13/2034 | | | | | 4,230 | | | | 4,724,276 | |
Lloyds Banking Group PLC
5.462%, 01/05/2028 | | | | | 1,262 | | | | 1,276,664 | |
NatWest Group PLC
3.032%, 11/28/2035 | | | | | 723 | | | | 628,236 | |
4.964%, 08/15/2030 | | | | | 3,835 | | | | 3,801,520 | |
6.475%, 06/01/2034 | | | | | 982 | | | | 1,016,380 | |
PNC Financial Services Group, Inc. (The)
Series R
8.317% (CME Term SOFR 3 Month + 3.30%), 12/02/2024(f)(g) | | | | | 2,740 | | | | 2,744,083 | |
Santander Holdings USA, Inc.
5.353%, 09/06/2030 | | | | | 2,717 | | | | 2,689,477 | |
6.174%, 01/09/2030 | | | | | 1,512 | | | | 1,547,759 | |
Societe Generale SA
5.519%, 01/19/2028(c) | | | | | 10,276 | | | | 10,311,144 | |
Standard Chartered PLC
6.364% (CME Term SOFR 3 Month + 1.51%), 01/30/2027(c)(f)(g) | | | | | 7,500 | | | | 6,910,425 | |
Synchrony Financial
5.935%, 08/02/2030 | | | | | 2,476 | | | | 2,511,234 | |
Toronto-Dominion Bank (The)
5.146%, 09/10/2034 | | | | | 1,362 | | | | 1,338,546 | |
Truist Financial Corp.
Series N
6.669%, 03/01/2025(f) | | | | | 7,249 | | | | 7,226,673 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
UBS Group AG
6.373%, 07/15/2026(c) | | | U.S.$ | | | | 1,114 | | | $ | 1,122,867 | |
9.25%, 11/13/2028(c)(f) | | | | | | | 586 | | | | 637,890 | |
9.25%, 11/13/2033(c)(f) | | | | | | | 513 | | | | 592,823 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 119,504,347 | |
| | | | | | | | | | | | |
Finance – 0.4% | | | | | | | | | | | | |
Aircastle Ltd.
5.25%, 06/15/2026(c)(f) | | | | | | | 1,264 | | | | 1,245,091 | |
Aviation Capital Group LLC
4.125%, 08/01/2025(c) | | | | | | | 1,592 | | | | 1,579,869 | |
4.875%, 10/01/2025(c) | | | | | | | 1,315 | | | | 1,312,554 | |
Huarong Finance 2017 Co., Ltd.
4.75%, 04/27/2027(c) | | | | | | | 250 | | | | 245,000 | |
Huarong Finance II Co., Ltd.
Series E
4.625%, 06/03/2026 | | | | | | | 630 | | | | 618,975 | |
4.875%, 11/22/2026(c) | | | | | | | 498 | | | | 490,997 | |
5.50%, 01/16/2025(c) | | | | | | | 5,167 | | | | 5,159,249 | |
REC Ltd.
5.625%, 04/11/2028(c) | | | | | | | 648 | | | | 655,018 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,306,753 | |
| | | | | | | | | | | | |
Insurance – 1.3% | | | | | | | | | | | | |
Athene Global Funding
1.985%, 08/19/2028(c) | | | | | | | 2,152 | | | | 1,920,230 | |
2.55%, 11/19/2030(c) | | | | | | | 1,860 | | | | 1,598,614 | |
2.717%, 01/07/2029(c) | | | | | | | 2,165 | | | | 1,964,629 | |
5.583%, 01/09/2029(c) | | | | | | | 4,595 | | | | 4,661,535 | |
Credit Agricole Assurances SA
4.75%, 09/27/2048(c) | | | EUR | | | | 3,200 | | | | 3,589,749 | |
Generali
Series E
5.50%, 10/27/2047(c) | | | | | | | 6,630 | | | | 7,599,343 | |
Hartford Financial Services Group, Inc. (The)
Series ICON
7.505% (CME Term SOFR 3 Month + 2.39%), 02/12/2047(c)(g) | | | U.S.$ | | | | 3,275 | | | | 3,028,785 | |
MetLife Capital Trust IV
7.875%, 12/15/2037(c) | | | | | | | 4,117 | | | | 4,534,464 | |
Swiss Re Subordinated Finance PLC
5.698%, 04/05/2035(c) | | | | | | | 4,000 | | | | 4,019,560 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 32,916,909 | |
| | | | | | | | | | | | |
REITs – 0.3% | | | | | | | | | | | | |
Newmark Group, Inc.
7.50%, 01/12/2029 | | | | | | | 2,276 | | | | 2,409,283 | |
| | |
| |
8 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Trust Fibra Uno
4.869%, 01/15/2030(c) | | | U.S.$ | | | | 4,085 | | | $ | 3,667,921 | |
5.25%, 01/30/2026(c) | | | | | | | 1,038 | | | | 1,034,367 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,111,571 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 170,839,580 | |
| | | | | | | | | | | | |
Utility – 1.9% | | | | | | | | | | | | |
Electric – 1.9% | | | | | | | | | | | | |
Adani Transmission Step-One Ltd.
4.00%, 08/03/2026(c) | | | | | | | 3,064 | | | | 2,952,440 | |
AES Panama Generation Holdings SRL
4.375%, 05/31/2030(c) | | | | | | | 2,388 | | | | 2,109,563 | |
Alexander Funding Trust II
7.467%, 07/31/2028(c) | | | | | | | 2,973 | | | | 3,145,850 | |
American Electric Power Co., Inc.
6.95%, 12/15/2054 | | | | | | | 1,582 | | | | 1,652,446 | |
Buffalo Energy Mexico Holdings/Buffalo Energy Infrastructure/Buffalo Energy
7.875%, 02/15/2039(c) | | | | | | | 1,081 | | | | 1,114,381 | |
Chile Electricity PEC SpA
Zero Coupon, 01/25/2028(c) | | | | | | | 3,131 | | | | 2,595,827 | |
ComEd Financing III
6.35%, 03/15/2033 | | | | | | | 3,462 | | | | 3,524,247 | |
Cometa Energia SA de CV
6.375%, 04/24/2035(c) | | | | | | | 1,855 | | | | 1,818,794 | |
Electricite de France SA
9.125%, 03/15/2033(c)(f) | | | | | | | 1,132 | | | | 1,285,273 | |
Empresa Electrica Cochrane SpA
5.50%, 05/14/2027(c) | | | | | | | 193 | | | | 186,689 | |
Engie Energia Chile SA
6.375%, 04/17/2034(c) | | | | | | | 2,633 | | | | 2,683,422 | |
FIEMEX Energia – Banco Actinver SA Institucion de Banca Multiple
7.25%, 01/31/2041(c) | | | | | | | 419 | | | | 418,843 | |
Israel Electric Corp., Ltd.
7.75%, 12/15/2027(c) | | | | | | | 1,175 | | | | 1,232,493 | |
Series G
4.25%, 08/14/2028(c)(d) | | | | | | | 4,923 | | | | 4,642,389 | |
Kallpa Generacion SA
4.125%, 08/16/2027(c) | | | | | | | 992 | | | | 963,170 | |
LLPL Capital Pte Ltd.
6.875%, 02/04/2039(c) | | | | | | | 2,638 | | | | 2,685,907 | |
Minejesa Capital BV
4.625%, 08/10/2030(c) | | | | | | | 3,547 | | | | 3,460,259 | |
NextEra Energy Capital Holdings, Inc.
6.70%, 09/01/2054 | | | | | | | 1,177 | | | | 1,207,837 | |
Niagara Energy SAC
5.746%, 10/03/2034(c) | | | | | | | 1,325 | | | | 1,298,500 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
NRG Energy, Inc.
5.75%, 07/15/2029(c) | | | U.S.$ | | | | 2,079 | | | $ | 2,061,015 | |
7.00%, 03/15/2033(c) | | | | | | | 992 | | | | 1,074,951 | |
Pacific Gas and Electric Co.
5.55%, 05/15/2029 | | | | | | | 1,512 | | | | 1,539,775 | |
Vistra Operations Co., LLC
6.95%, 10/15/2033(c) | | | | | | | 3,770 | | | | 4,104,588 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 47,758,659 | |
| | | | | | | | | | | | |
Other Utility – 0.0% | | | | | | | | | | | | |
Buffalo Energy Mexico Holdings/Buffalo Energy Infrastructure/Buffalo Energy
7.875%, 02/15/2039(c) | | | | | | | 667 | | | | 687,597 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 48,446,256 | |
| | | | | | | | | | | | |
Total Corporates - Investment Grade
(cost $399,588,332) | | | | | | | | | | | 402,820,962 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
CORPORATES - NON-INVESTMENT GRADE – 9.6% | | | | | | | | | | | | |
Industrial – 8.4% | | | | | | | | | | | | |
Basic – 0.6% | | | | | | | | | | | | |
ASP Unifrax Holdings, Inc.
7.10% (5.85% Cash and 1.25% PIK), 09/30/2029(c)(h) | | | | | | | 485 | | | | 287,459 | |
Cleveland-Cliffs, Inc.
7.00%, 03/15/2032(c) | | | | | | | 2,874 | | | | 2,877,305 | |
ERP Iron Ore LLC
9.034%, 12/31/2019(h)(i)(j)(k)(l) | | | | | | | 118 | | | | – 0 | – |
FMG Resources (August 2006) Pty Ltd.
4.375%, 04/01/2031(c) | | | | | | | 350 | | | | 318,437 | |
6.125%, 04/15/2032(c) | | | | | | | 3,761 | | | | 3,772,020 | |
Graphic Packaging International LLC
4.75%, 07/15/2027(c) | | | | | | | 32 | | | | 31,395 | |
INEOS Finance PLC
7.50%, 04/15/2029(c) | | | | | | | 1,966 | | | | 2,031,586 | |
INEOS Quattro Finance 2 PLC
9.625%, 03/15/2029(c) | | | | | | | 2,592 | | | | 2,745,602 | |
INEOS Styrolution Ludwigshafen GmbH
2.25%, 01/16/2027(c) | | | EUR | | | | 107 | | | | 112,879 | |
Magnetation LLC/Mag Finance Corp.
11.00%, 05/15/2018(i)(j)(k)(l)(m) | | | U.S.$ | | | | 1,407 | | | | – 0 | – |
SCIL IV LLC/SCIL USA Holdings LLC
5.375%, 11/01/2026(c) | | | | | | | 1,782 | | | | 1,761,453 | |
Vallourec SACA
7.50%, 04/15/2032(c) | | | | | | | 1,708 | | | | 1,789,642 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,727,778 | |
| | | | | | | | | | | | |
| | |
| |
10 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Capital Goods – 0.4% | | | | | | | | | | | | |
Arcosa, Inc.
6.875%, 08/15/2032(c) | | | U.S.$ | | | | 571 | | | $ | 585,698 | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.
2.125%, 08/15/2026(c) | | | EUR | | | | 2,191 | | | | 2,013,807 | |
4.125%, 08/15/2026(c)(d) | | | U.S.$ | | | | 438 | | | | 381,139 | |
Bombardier, Inc.
6.00%, 02/15/2028(c) | | | | | | | 7 | | | | 6,993 | |
7.25%, 07/01/2031(c) | | | | | | | 1,976 | | | | 2,042,907 | |
7.50%, 02/01/2029(c) | | | | | | | 16 | | | | 16,671 | |
7.875%, 04/15/2027(c) | | | | | | | 32 | | | | 32,046 | |
Eco Material Technologies, Inc.
7.875%, 01/31/2027(c) | | | | | | | 2,807 | | | | 2,825,610 | |
Esab Corp.
6.25%, 04/15/2029(c) | | | | | | | 956 | | | | 972,883 | |
LSB Industries, Inc.
6.25%, 10/15/2028(c)(e) | | | | | | | 1,402 | | | | 1,357,669 | |
Trinity Industries, Inc.
7.75%, 07/15/2028(c) | | | | | | | 1,163 | | | | 1,203,426 | |
Trivium Packaging Finance BV
3.75%, 08/15/2026(c) | | | EUR | | | | 100 | | | | 107,921 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,546,770 | |
| | | | | | | | | | | | |
Communications - Media – 1.1% | | | | | | | | | | | | |
AMC Networks, Inc.
10.25%, 01/15/2029(c) | | | U.S.$ | | | | 2,649 | | | | 2,727,145 | |
Banijay Entertainment SAS
7.00%, 05/01/2029(c) | | | EUR | | | | 1,730 | | | | 1,971,607 | |
8.125%, 05/01/2029(c) | | | U.S.$ | | | | 1,456 | | | | 1,509,028 | |
CCO Holdings LLC/CCO Holdings Capital Corp.
4.50%, 08/15/2030(c) | | | | | | | 688 | | | | 614,040 | |
4.50%, 06/01/2033(c) | | | | | | | 6,459 | | | | 5,370,723 | |
4.75%, 02/01/2032(c) | | | | | | | 519 | | | | 449,200 | |
CSC Holdings LLC
11.75%, 01/31/2029(c) | | | | | | | 2,548 | | | | 2,485,243 | |
LCPR Senior Secured Financing DAC
6.75%, 10/15/2027(c) | | | | | | | 2,841 | | | | 2,663,125 | |
McGraw-Hill Education, Inc.
5.75%, 08/01/2028(c) | | | | | | | 2,291 | | | | 2,246,898 | |
Neptune Bidco US, Inc.
9.29%, 04/15/2029(c) | | | | | | | 2,658 | | | | 2,485,496 | |
Paramount Global
6.375%, 03/30/2062 | | | | | | | 1,669 | | | | 1,545,644 | |
Sinclair Television Group, Inc.
5.50%, 03/01/2030(c) | | | | | | | 391 | | | | 269,321 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Sirius XM Radio, Inc.
3.875%, 09/01/2031(c) | | | U.S.$ | | | | 264 | | | $ | 227,106 | |
Univision Communications, Inc.
8.00%, 08/15/2028(c) | | | | | | | 3,712 | | | | 3,772,171 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,336,747 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.3% | | | | | | | | | | | | |
Altice Financing SA
5.75%, 08/15/2029(c) | | | | | | | 611 | | | | 498,845 | |
Altice France SA
5.125%, 07/15/2029(c) | | | | | | | 1,984 | | | | 1,484,369 | |
5.50%, 01/15/2028(c) | | | | | | | 878 | | | | 679,133 | |
5.50%, 10/15/2029(c) | | | | | | | 1,528 | | | | 1,153,884 | |
Optics Bidco SpA
6.00%, 09/30/2034(c) | | | | | | | 1,080 | | | | 1,055,992 | |
Vmed O2 UK Financing I PLC
4.75%, 07/15/2031(c) | | | | | | | 1,329 | | | | 1,150,941 | |
7.75%, 04/15/2032(c) | | | | | | | 1,585 | | | | 1,586,696 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,609,860 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.5% | | | | | | | | | | | | |
Aston Martin Capital Holdings Ltd.
10.00%, 03/31/2029(c) | | | | | | | 3,987 | | | | 3,871,816 | |
Exide Technologies
(Exchange Priority)
11.00%, 10/31/2024(j)(k)(l)(m)(n) | | | | | | | 2,273 | | | | – 0 | – |
(First Lien)
11.00%, 10/31/2024(j)(k)(l)(m)(n) | | | | | | | 933 | | | | – 0 | – |
Goodyear Tire & Rubber Co. (The)
5.25%, 04/30/2031 | | | | | | | 156 | | | | 137,077 | |
5.25%, 07/15/2031 | | | | | | | 454 | | | | 398,626 | |
IHO Verwaltungs GmbH
8.75% (8.75% Cash or 9.50% PIK), 05/15/2028(c)(h) | | | EUR | | | | 506 | | | | 583,580 | |
PM General Purchaser LLC
9.50%, 10/01/2028(c) | | | U.S.$ | | | | 1,509 | | | | 1,531,016 | |
Tenneco, Inc.
8.00%, 11/17/2028(c) | | | | | | | 3,028 | | | | 2,801,809 | |
ZF North America Capital, Inc.
6.75%, 04/23/2030(c) | | | | | | | 1,381 | | | | 1,361,431 | |
6.875%, 04/14/2028(c) | | | | | | | 1,328 | | | | 1,339,341 | |
6.875%, 04/23/2032(c) | | | | | | | 239 | | | | 233,486 | |
7.125%, 04/14/2030(c) | | | | | | | 163 | | | | 163,681 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,421,863 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.2% | | | | | | | | | | | | |
Carnival Corp.
5.75%, 03/01/2027(c) | | | | | | | 1,601 | | | | 1,605,531 | |
| | |
| |
12 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Royal Caribbean Cruises Ltd.
5.50%, 08/31/2026(c) | | | U.S.$ | | | | 82 | | | $ | 82,074 | |
SeaWorld Parks & Entertainment, Inc.
5.25%, 08/15/2029(c) | | | | | | | 964 | | | | 926,404 | |
Viking Cruises Ltd.
5.875%, 09/15/2027(c) | | | | | | | 1,057 | | | | 1,050,478 | |
Viking Ocean Cruises Ship VII Ltd.
5.625%, 02/15/2029(c) | | | | | | | 1,376 | | | | 1,357,754 | |
VOC Escrow Ltd.
5.00%, 02/15/2028(c) | | | | | | | 75 | | | | 72,957 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,095,198 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 0.4% | | | | | | | | | | | | |
Builders FirstSource, Inc.
6.375%, 03/01/2034(c) | | | | | | | 2,339 | | | | 2,355,771 | |
Hilton Domestic Operating Co., Inc.
5.875%, 04/01/2029(c) | | | | | | | 2,099 | | | | 2,116,967 | |
6.125%, 04/01/2032(c) | | | | | | | 1,203 | | | | 1,215,415 | |
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc
4.875%, 07/01/2031(c) | | | | | | | 140 | | | | 125,100 | |
5.00%, 06/01/2029(c) | | | | | | | 1,864 | | | | 1,746,848 | |
Installed Building Products, Inc.
5.75%, 02/01/2028(c) | | | | | | | 846 | | | | 840,349 | |
Masterbrand, Inc.
7.00%, 07/15/2032(c) | | | | | | | 967 | | | | 990,517 | |
Standard Building Solutions, Inc.
6.50%, 08/15/2032(c) | | | | | | | 761 | | | | 766,053 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,157,020 | |
| | | | | | | | | | | | |
Consumer Cyclical - Restaurants – 0.2% | | | | | | | | | | | | |
1011778 BC ULC/New Red Finance, Inc.
6.125%, 06/15/2029(c) | | | | | | | 4,500 | | | | 4,574,430 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Retailers – 0.4% | | | | | | | | | | | | |
Arko Corp.
5.125%, 11/15/2029(c) | | | | | | | 845 | | | | 778,972 | |
Asbury Automotive Group, Inc.
4.625%, 11/15/2029(c) | | | | | | | 123 | | | | 115,179 | |
Bath & Body Works, Inc.
6.75%, 07/01/2036 | | | | | | | 704 | | | | 705,823 | |
6.875%, 11/01/2035 | | | | | | | 2,710 | | | | 2,749,512 | |
9.375%, 07/01/2025(c) | | | | | | | 185 | | | | 189,610 | |
Cougar JV Subsidiary LLC
8.00%, 05/15/2032(c) | | | | | | | 1,644 | | | | 1,718,079 | |
Kontoor Brands, Inc.
4.125%, 11/15/2029(c) | | | | | | | 2,225 | | | | 2,071,631 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
PetSmart, Inc./PetSmart Finance Corp.
7.75%, 02/15/2029(c) | | | U.S.$ | | | | 480 | | | $ | 466,190 | |
Sonic Automotive, Inc.
4.875%, 11/15/2031(c) | | | | | | | 753 | | | | 676,028 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,471,024 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 1.1% | | | | | | | | | | | | |
Bausch + Lomb Corp.
8.375%, 10/01/2028(c) | | | | | | | 7,165 | | | | 7,528,910 | |
Cheplapharm Arzneimittel GmbH
5.50%, 01/15/2028(c) | | | | | | | 287 | | | | 276,966 | |
CHS/Community Health Systems, Inc.
6.875%, 04/15/2029(c) | | | | | | | 2,079 | | | | 1,753,553 | |
DaVita, Inc.
4.625%, 06/01/2030(c) | | | | | | | 5,479 | | | | 5,039,803 | |
Embecta Corp.
5.00%, 02/15/2030(c) | | | | | | | 652 | | | | 591,064 | |
Endo Finance Holdings, Inc.
8.50%, 04/15/2031(c) | | | | | | | 1,073 | | | | 1,147,563 | |
Fortrea Holdings, Inc.
7.50%, 07/01/2030(c) | | | | | | | 816 | | | | 803,319 | |
MPH Acquisition Holdings LLC
5.75%, 11/01/2028(c) | | | | | | | 2,960 | | | | 1,339,489 | |
Neogen Food Safety Corp.
8.625%, 07/20/2030(c) | | | | | | | 1,594 | | | | 1,725,872 | |
Organon & Co./Organon Foreign Debt Co-Issuer BV
5.125%, 04/30/2031(c) | | | | | | | 1,717 | | | | 1,565,561 | |
Owens & Minor, Inc.
4.50%, 03/31/2029(c) | | | | | | | 243 | | | | 218,890 | |
6.625%, 04/01/2030(c) | | | | | | | 892 | | | | 852,083 | |
Post Holdings, Inc.
6.25%, 02/15/2032(c) | | | | | | | 3,474 | | | | 3,517,251 | |
6.25%, 10/15/2034(c) | | | | | | | 365 | | | | 360,810 | |
US Foods, Inc.
5.75%, 04/15/2033(c) | | | | | | | 340 | | | | 334,914 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 27,056,048 | |
| | | | | | | | | | | | |
Energy – 2.1% | | | | | | | | | | | | |
Blue Racer Midstream LLC/Blue Racer Finance Corp.
7.00%, 07/15/2029(c) | | | | | | | 619 | | | | 634,122 | |
7.25%, 07/15/2032(c) | | | | | | | 549 | | | | 566,788 | |
Buckeye Partners LP
6.875%, 07/01/2029(c) | | | | | | | 1,523 | | | | 1,547,185 | |
CITGO Petroleum Corp.
8.375%, 01/15/2029(c) | | | | | | | 6,469 | | | | 6,729,377 | |
| | |
| |
14 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Civitas Resources, Inc.
8.375%, 07/01/2028(c) | | | U.S.$ | | | | 2,280 | | | $ | 2,357,452 | |
8.625%, 11/01/2030(c) | | | | | | | 1,250 | | | | 1,313,525 | |
8.75%, 07/01/2031(c) | | | | | | | 2,213 | | | | 2,318,582 | |
CNX Resources Corp.
6.00%, 01/15/2029(c) | | | | | | | 437 | | | | 433,246 | |
7.25%, 03/01/2032(c) | | | | | | | 3,405 | | | | 3,506,980 | |
Crescent Energy Finance LLC
7.375%, 01/15/2033(c) | | | | | | | 256 | | | | 248,251 | |
7.625%, 04/01/2032(c) | | | | | | | 731 | | | | 721,994 | |
Howard Midstream Energy Partners LLC
7.375%, 07/15/2032(c) | | | | | | | 822 | | | | 838,144 | |
Kodiak Gas Services LLC
7.25%, 02/15/2029(c) | | | | | | | 300 | | | | 308,649 | |
Murphy Oil Corp.
6.00%, 10/01/2032 | | | | | | | 358 | | | | 344,629 | |
New Fortress Energy, Inc.
6.50%, 09/30/2026(c) | | | | | | | 5,164 | | | | 4,776,442 | |
6.75%, 09/15/2025(c) | | | | | | | 1,156 | | | | 1,152,994 | |
8.75%, 03/15/2029(c) | | | | | | | 4,524 | | | | 3,778,852 | |
NGL Energy Operating LLC/NGL Energy Finance Corp.
8.125%, 02/15/2029(c) | | | | | | | 2,055 | | | | 2,069,159 | |
8.375%, 02/15/2032(c) | | | | | | | 2,055 | | | | 2,074,358 | |
Permian Resources Operating LLC
6.25%, 02/01/2033(c) | | | | | | | 1,036 | | | | 1,028,572 | |
Sunoco LP
7.00%, 05/01/2029(c) | | | | | | | 350 | | | | 361,448 | |
Sunoco LP/Sunoco Finance Corp.
4.50%, 05/15/2029 | | | | | | | 693 | | | | 658,696 | |
4.50%, 04/30/2030 | | | | | | | 348 | | | | 326,595 | |
Venture Global Calcasieu Pass LLC
3.875%, 11/01/2033(c) | | | | | | | 699 | | | | 606,900 | |
4.125%, 08/15/2031(c) | | | | | | | 752 | | | | 684,621 | |
6.25%, 01/15/2030(c) | | | | | | | 1,749 | | | | 1,788,125 | |
Venture Global LNG, Inc.
7.00%, 01/15/2030(c) | | | | | | | 351 | | | | 353,106 | |
8.125%, 06/01/2028(c) | | | | | | | 1,342 | | | | 1,392,607 | |
8.375%, 06/01/2031(c) | | | | | | | 1,340 | | | | 1,390,840 | |
9.00%, 09/30/2029(c)(f) | | | | | | | 2,265 | | | | 2,264,049 | |
9.50%, 02/01/2029(c) | | | | | | | 2,886 | | | | 3,190,877 | |
9.875%, 02/01/2032(c) | | | | | | | 2,881 | | | | 3,144,467 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 52,911,632 | |
| | | | | | | | | | | | |
Other Industrial – 0.0% | | | | | | | | | | | | |
Velocity Vehicle Group LLC
8.00%, 06/01/2029(c) | | | | | | | 457 | | | | 470,011 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Services – 0.5% | | | | | | | | | | | | |
ADT Security Corp. (The)
4.875%, 07/15/2032(c) | | | U.S.$ | | | | 90 | | | $ | 83,794 | |
Allied Universal Holdco LLC
7.875%, 02/15/2031(c) | | | | | | | 696 | | | | 708,535 | |
ANGI Group LLC
3.875%, 08/15/2028(c) | | | | | | | 458 | | | | 414,797 | |
Belron UK Finance PLC
4.625%, 10/15/2029(c) | | | EUR | | | | 368 | | | | 405,440 | |
5.75%, 10/15/2029(c) | | | U.S.$ | | | | 352 | | | | 352,729 | |
Block, Inc.
6.50%, 05/15/2032(c) | | | | | | | 4,247 | | | | 4,324,083 | |
Cars.com, Inc.
6.375%, 11/01/2028(c) | | | | | | | 2,427 | | | | 2,426,053 | |
Millennium Escrow Corp.
6.625%, 08/01/2026(c) | | | | | | | 3,319 | | | | 2,125,089 | |
Monitronics International, Inc.
9.125%, 04/01/2020(i)(j)(k)(l)(n) | | | | | | | 1,835 | | | | – 0 | – |
Raven Acquisition Holdings LLC
6.875%, 11/15/2031(c) | | | | | | | 801 | | | | 799,294 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,639,814 | |
| | | | | | | | | | | | |
Technology – 0.1% | | | | | | | | | | | | |
Amentum Holdings, Inc.
7.25%, 08/01/2032(c) | | | | | | | 215 | | | | 222,867 | |
Veritas US, Inc./Veritas Bermuda Ltd.
7.50%, 09/01/2025(c) | | | | | | | 349 | | | | 332,000 | |
Virtusa Corp.
7.125%, 12/15/2028(c) | | | | | | | 947 | | | | 919,187 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,474,054 | |
| | | | | | | | | | | | |
Transportation - Airlines – 0.0% | | | | | | | | | | | | |
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd.
8.00%, 09/20/2025(c)(d) | | | | | | | 1,668 | | | | 1,043,310 | |
| | | | | | | | | | | | |
| | | |
Transportation - Services – 0.5% | | | | | | | | | | | | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.
8.25%, 01/15/2030(c) | | | | | | | 1,187 | | | | 1,211,844 | |
Hertz Corp. (The)
12.625%, 07/15/2029(c) | | | | | | | 3,422 | | | | 3,627,765 | |
Loxam SAS
4.50%, 02/15/2027(c) | | | EUR | | | | 2,338 | | | | 2,558,825 | |
NAC Aviation 29 DAC
4.75%, 06/30/2026 | | | U.S.$ | | | | 4,894 | | | | 4,675,276 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,073,710 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 211,609,269 | |
| | | | | | | | | | | | |
| | |
| |
16 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Financial Institutions – 0.8% | | | | | | | | | | | | |
Banking – 0.2% | | | | | | | | | | | | |
Bread Financial Holdings, Inc.
7.00%, 01/15/2026(c) | | | U.S.$ | | | | 314 | | | $ | 313,447 | |
9.75%, 03/15/2029(c) | | | | | | | 2,904 | | | | 3,064,011 | |
Synchrony Financial
7.25%, 02/02/2033 | | | | | | | 350 | | | | 357,931 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,735,389 | |
| | | | | | | | | | | | |
Brokerage – 0.3% | | | | | | | | | | | | |
Aretec Group, Inc.
10.00%, 08/15/2030(c) | | | | | | | 2,053 | | | | 2,237,626 | |
Osaic Holdings, Inc.
10.75%, 08/01/2027(c) | | | | | | | 4,330 | | | | 4,468,344 | |
VFH Parent LLC/Valor Co-Issuer, Inc.
7.50%, 06/15/2031(c) | | | | | | | 1,627 | | | | 1,673,239 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,379,209 | |
| | | | | | | | | | | | |
Finance – 0.3% | | | | | | | | | | | | |
Curo Group Holdings Corp.
13.00%, 08/01/2028(j)(k) | | | | | | | 1,043 | | | | 1,082,096 | |
Enova International, Inc.
11.25%, 12/15/2028(c) | | | | | | | 3,510 | | | | 3,779,673 | |
GGAM Finance Ltd.
7.75%, 05/15/2026(c) | | | | | | | 1,041 | | | | 1,060,508 | |
8.00%, 02/15/2027(c) | | | | | | | 186 | | | | 192,179 | |
Navient Corp.
4.875%, 03/15/2028 | | | | | | | 243 | | | | 231,448 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,345,904 | |
| | | | | | | | | | | | |
Insurance – 0.0% | | | | | | | | | | | | |
Ardonagh Finco Ltd.
6.875%, 02/15/2031(c) | | | EUR | | | | 1,099 | | | | 1,206,853 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,667,355 | |
| | | | | | | | | | | | |
Utility – 0.4% | | | | | | | | | | | | |
Electric – 0.4% | | | | | | | | | | | | |
Alpha Generation LLC
6.75%, 10/15/2032(c) | | | U.S.$ | | | | 398 | | | | 403,871 | |
Lightning Power LLC
7.25%, 08/15/2032(c) | | | | | | | 1,207 | | | | 1,256,258 | |
Vistra Corp.
7.00%, 12/15/2026(c)(f) | | | | | | | 3,399 | | | | 3,431,936 | |
8.00%, 10/15/2026(c)(f) | | | | | | | 4,113 | | | | 4,229,891 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,321,956 | |
| | | | | | | | | | | | |
Total Corporates - Non-Investment Grade
(cost $244,299,870) | | | | | | | | | | | 240,598,580 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
COLLATERALIZED LOAN OBLIGATIONS – 5.0% | | | | | | | | | | | | |
CLO - Floating Rate – 5.0% | | | | | | | | | | | | |
AIMCO CLO
Series 2018-AA, Class A
5.929% (CME Term SOFR 3 Month + 1.28%), 04/17/2031(c)(g) | | | U.S.$ | | | | 1,485 | | | $ | 1,486,204 | |
Allegro CLO XI Ltd.
Series 2019-2A, Class A1AR
5.867% (CME Term SOFR 3 Month + 1.25%), 01/19/2033(c)(g) | | | | | | | 3,850 | | | | 3,852,695 | |
Series 2019-2A, Class BR
6.517% (CME Term SOFR 3 Month + 1.90%), 01/19/2033(c)(g) | | | | | | | 2,479 | | | | 2,484,328 | |
Apidos CLO XXX
Series XXXA, Class A1AR
5.712% (CME Term SOFR 3 Month + 1.08%), 10/18/2031(c)(g) | | | | | | | 4,341 | | | | 4,342,301 | |
Apidos CLO XXXII Ltd.
Series 2019-32A
5.717% (CME Term SOFR 3 Month + 1.10%), 01/20/2033(c)(g) | | | | | | | 10,000 | | | | 10,005,860 | |
Apidos Loan Fund Ltd.
Series 2024-1A, Class A1
5.896% (CME Term SOFR 3 Month + 1.27%), 04/25/2035(c)(g) | | | | | | | 5,135 | | | | 5,138,312 | |
Ares XXXIV CLO Ltd.
Series 2015-2A, Class CR
6.909% (CME Term SOFR 3 Month + 2.26%), 04/17/2033(c)(g) | | | | | | | 9,437 | | | | 9,449,939 | |
Bain Capital Credit CLO
Series 2019-2A, Class AR2
5.778% (CME Term SOFR 3 Month + 1.13%), 10/17/2032(c)(g) | | | | | | | 5,238 | | | | 5,238,018 | |
Bain Capital Credit CLO Ltd.
Series 2019-1A, Class AR2
5.847% (CME Term SOFR 3 Month + 1.23%), 04/19/2034(c)(g) | | | | | | | 2,850 | | | | 2,850,544 | |
Series 2020-1A, Class A1R
5.882% (CME Term SOFR 3 Month + 1.25%), 04/18/2033(c)(g) | | | | | | | 5,200 | | | | 5,203,567 | |
Series 2021-4A, Class A1R
5.82% (CME Term SOFR 3 Month + 1.20%), 10/20/2034(c)(g) | | | | | | | 5,176 | | | | 5,176,911 | |
Balboa Bay Loan Funding Ltd.
Series 2021-1A, Class D
7.929% (CME Term SOFR 3 Month + 3.31%), 07/20/2034(c)(g) | | | | | | | 2,750 | | | | 2,684,080 | |
| | |
| |
18 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Black Diamond CLO Ltd.
Series 2016-1A, Class A2AR
6.629% (CME Term SOFR 3 Month + 2.01%), 04/26/2031(c)(g) | | U.S.$ | | | 5,300 | | | $ | 5,304,351 | |
CBAM Ltd.
Series 2018-7A, Class B1
6.479% (CME Term SOFR 3 Month + 1.86%), 07/20/2031(c)(g) | | | | | 1,996 | | | | 2,000,796 | |
Dryden 113 CLO Ltd.
Series 2022-113A, Class AR2
5.867% (CME Term SOFR 3 Month + 1.25%), 10/15/2037(c)(g) | | | | | 5,250 | | | | 5,250,515 | |
Galaxy 30 CLO Ltd.
Series 2022-30A, Class D
8.006% (CME Term SOFR 3 Month + 3.35%), 04/15/2035(c)(g) | | | | | 6,350 | | | | 6,358,820 | |
Goldentree Loan Management US CLO 8 Ltd.
Series 2020-8A, Class ARR
5.752% (CME Term SOFR 3 Month + 1.15%), 10/20/2034(c)(g) | | | | | 4,950 | | | | 4,950,871 | |
Greywolf CLO VI Ltd.
Series 2018-1A, Class A2
6.509% (CME Term SOFR 3 Month + 1.89%), 04/26/2031(c)(g) | | | | | 5,300 | | | | 5,305,634 | |
Halcyon Loan Advisors Funding Ltd.
Series 2018-1A, Class A2
6.679% (CME Term SOFR 3 Month + 2.06%), 07/21/2031(c)(g) | | | | | 1,826 | | | | 1,826,507 | |
Juniper Valley Park CLO Ltd.
Series 2023-1A
5.867% (CME Term SOFR 3 Month + 1.25%), 07/20/2036(c)(g) | | | | | 2,500 | | | | 2,504,933 | |
OCP CLO Ltd.
Series 2021-21A, Class D
7.829% (CME Term SOFR 3 Month + 3.21%), 07/20/2034(c)(g) | | | | | 4,750 | | | | 4,757,999 | |
OZLM XVIII Ltd.
Series 2018-18A, Class B
6.468% (CME Term SOFR 3 Month + 1.81%), 04/15/2031(c)(g) | | | | | 5,450 | | | | 5,462,840 | |
Regatta XIX Funding Ltd.
Series 2022-1A, Class D
7.917% (CME Term SOFR 3 Month + 3.30%), 04/20/2035(c)(g) | | | | | 4,423 | | | | 4,437,103 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 19 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Regatta XVI Funding Ltd.
Series 2019-2A, Class A1R
5.856% (CME Term SOFR 3 Month + 1.20%), 01/15/2033(c)(g) | | | U.S.$ | | | | 6,500 | | | $ | 6,500,319 | |
Rockford Tower CLO Ltd.
Series 2021-2A, Class D
8.129% (CME Term SOFR 3 Month + 3.51%), 07/20/2034(c)(g) | | | | | | | 950 | | | | 952,829 | |
Venture 41 CLO Ltd.
Series 2021-41A, Class A1NR
6.047% (CME Term SOFR 3 Month + 1.43%), 01/20/2034(c)(g) | | | | | | | 2,650 | | | | 2,655,597 | |
VERDE CLO Ltd.
Series 2019-1A, Class ARR
5.766% (CME Term SOFR 3 Month + 1.11%), 04/15/2032(c)(g) | | | | | | | 6,108 | | | | 6,109,058 | |
Voya CLO Ltd.
Series 2018-3A, Class A1R2
5.856% (CME Term SOFR 3 Month + 1.20%), 10/15/2031(c)(g) | | | | | | | 3,903 | | | | 3,904,527 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Loan Obligations
(cost $126,147,383) | | | | | | | | | | | 126,195,458 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
EMERGING MARKETS - CORPORATE BONDS – 2.9% | | | | | | | | | | | | |
Industrial – 2.6% | | | | | | | | | | | | |
Basic – 1.3% | | | | | | | | | | | | |
Braskem Idesa SAPI
6.99%, 02/20/2032(c) | | | | | | | 2,510 | | | | 1,862,922 | |
7.45%, 11/15/2029(c)(d) | | | | | | | 3,551 | | | | 2,805,290 | |
Braskem Netherlands Finance BV
4.50%, 01/10/2028(c) | | | | | | | 4,810 | | | | 4,498,793 | |
8.00%, 10/15/2034(c) | | | | | | | 595 | | | | 592,251 | |
8.50%, 01/12/2031(c) | | | | | | | 1,952 | | | | 2,018,368 | |
CSN Inova Ventures
6.75%, 01/28/2028(c) | | | | | | | 1,286 | | | | 1,229,336 | |
CSN Resources SA
4.625%, 06/10/2031(c) | | | | | | | 2,693 | | | | 2,132,519 | |
Eregli Demir ve Celik Fabrikalari TAS
8.375%, 07/23/2029(c)(d) | | | | | | | 1,415 | | | | 1,450,375 | |
First Quantum Minerals Ltd.
9.375%, 03/01/2029(c) | | | | | | | 1,474 | | | | 1,561,865 | |
Indika Energy Tbk. PT
8.75%, 05/07/2029(c) | | | | | | | 1,291 | | | | 1,324,889 | |
JSW Steel Ltd.
5.05%, 04/05/2032(c) | | | | | | | 456 | | | | 413,375 | |
| | |
| |
20 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Navoi Mining & Metallurgical Combinat
6.70%, 10/17/2028(c) | | | U.S.$ | | | | 689 | | | $ | 693,072 | |
Periama Holdings LLC/DE
5.95%, 04/19/2026(c) | | | | | | | 400 | | | | 398,996 | |
Sasol Financing USA LLC
5.50%, 03/18/2031 | | | | | | | 1,307 | | | | 1,125,245 | |
8.75%, 05/03/2029(c) | | | | | | | 2,570 | | | | 2,651,116 | |
Stillwater Mining Co.
4.00%, 11/16/2026(c) | | | | | | | 3,347 | | | | 3,148,255 | |
4.50%, 11/16/2029(c) | | | | | | | 891 | | | | 728,393 | |
UPL Corp. Ltd.
4.50%, 03/08/2028(c) | | | | | | | 1,456 | | | | 1,318,135 | |
4.625%, 06/16/2030(c) | | | | | | | 2,029 | | | | 1,734,166 | |
Volcan Cia Minera SAA
8.75%, 01/24/2030(c) | | | | | | | 1,580 | | | | 1,443,330 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 33,130,691 | |
| | | | | | | | | | | | |
Capital Goods – 0.0% | | | | | | | | | | | | |
Usiminas International SARL
5.875%, 07/18/2026(c) | | | | | | | 702 | | | | 694,004 | |
| | | | | | | | | | | | |
| | | |
Communications - Media – 0.0% | | | | | | | | | | | | |
Globo Comunicacao e Participacoes SA
4.875%, 01/22/2030(c) | | | | | | | 427 | | | | 390,705 | |
5.50%, 01/14/2032(c) | | | | | | | 808 | | | | 734,523 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,125,228 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.0% | | | | | | | | | | | | |
CT Trust
5.125%, 02/03/2032(c) | | | | | | | 617 | | | | 559,156 | |
Digicel Group Holdings Ltd.
Zero Coupon, 12/31/2030(j)(k)(m) | | | | | | | 90 | | | | 1,255 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 560,411 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 0.1% | | | | | | | | | | | | |
MGM China Holdings Ltd.
5.25%, 06/18/2025(c) | | | | | | | 895 | | | | 889,966 | |
5.875%, 05/15/2026(c) | | | | | | | 598 | | | | 592,767 | |
Studio City Co., Ltd.
7.00%, 02/15/2027(c) | | | | | | | 336 | | | | 337,050 | |
Wynn Macau Ltd.
5.50%, 01/15/2026(c) | | | | | | | 1,168 | | | | 1,154,451 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,974,234 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 0.2% | | | | | | | | | | | | |
MARB BondCo PLC
3.95%, 01/29/2031(c) | | | | | | | 4,774 | | | | 4,119,962 | |
Natura &Co. Luxembourg Holdings SARL
4.125%, 05/03/2028(c) | | | | | | | 1,043 | | | | 972,597 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018(i)(j)(k)(l)(m) | | | U.S.$ | | | | 4,705 | | | $ | 471 | |
10.875%, 01/13/2020(i)(j)(k)(l)(m) | | | | | | | 750 | | | | 75 | |
11.75%, 02/09/2022(j)(k)(l)(m) | | | | | | | 1,678 | | | | 168 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,093,273 | |
| | | | | | | | | | | | |
Energy – 0.9% | | | | | | | | | | | | |
Acu Petroleo Luxembourg SARL
7.50%, 01/13/2032(c) | | | | | | | 2,107 | | | | 2,114,264 | |
Canacol Energy Ltd.
5.75%, 11/24/2028(c) | | | | | | | 1,797 | | | | 932,194 | |
Ecopetrol SA
4.625%, 11/02/2031 | | | | | | | 1,138 | | | | 937,712 | |
6.875%, 04/29/2030 | | | | | | | 3,520 | | | | 3,427,424 | |
8.625%, 01/19/2029 | | | | | | | 770 | | | | 813,967 | |
Geopark Ltd.
5.50%, 01/17/2027(c) | | | | | | | 834 | | | | 785,786 | |
Gran Tierra Energy, Inc.
9.50%, 10/15/2029(c) | | | | | | | 2,675 | | | | 2,461,000 | |
Greenko Solar Mauritius Ltd.
5.55%, 01/29/2025(c)(d) | | | | | | | 558 | | | | 555,974 | |
Greenko Wind Projects Mauritius Ltd.
5.50%, 04/06/2025(c) | | | | | | | 3,169 | | | | 3,155,659 | |
Leviathan Bond Ltd.
6.125%, 06/30/2025(c) | | | | | | | 4,448 | | | | 4,390,741 | |
6.50%, 06/30/2027(c) | | | | | | | 850 | | | | 803,786 | |
Medco Maple Tree Pte Ltd.
8.96%, 04/27/2029(c) | | | | | | | 720 | | | | 756,900 | |
SierraCol Energy Andina LLC
6.00%, 06/15/2028(c) | | | | | | | 903 | | | | 819,129 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,954,536 | |
| | | | | | | | | | | | |
Transportation - Services – 0.1% | | | | | | | | | | | | |
Kingston Airport Revenue Finance Ltd.
6.75%, 12/15/2036(c) | | | | | | | 1,315 | | | | 1,331,267 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 66,863,644 | |
| | | | | | | | | | | | |
Utility – 0.3% | | | | | | | | | | | | |
Electric – 0.3% | | | | | | | | | | | | |
AES Andes SA
6.35%, 10/07/2079(c) | | | | | | | 1,050 | | | | 1,040,592 | |
8.15%, 06/10/2055(c) | | | | | | | 1,930 | | | | 1,968,600 | |
India Clean Energy Holdings
4.50%, 04/18/2027(c) | | | | | | | 2,686 | | | | 2,532,898 | |
Investment Energy Resources Ltd.
6.25%, 04/26/2029(c) | | | | | | | 1,306 | | | | 1,259,584 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,801,674 | |
| | | | | | | | | | | | |
Total Emerging Markets - Corporate Bonds
(cost $80,475,062) | | | | | | | | | | | 73,665,318 | |
| | | | | | | | | | | | |
| | |
| |
22 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
EMERGING MARKETS - SOVEREIGNS – 2.2% | | | | | | | | | | | | |
Angola – 0.2% | | | | | | | | | | | | |
Angolan Government International Bond
8.00%, 11/26/2029(c) | | | U.S.$ | | | | 6,169 | | | $ | 5,640,780 | |
| | | | | | | | | | | | |
| | | |
Dominican Republic – 1.4% | | | | | | | | | | | | |
Dominican Republic Central Bank Notes
10.50%, 01/17/2025(c) | | | DOP | | | | 1,560,000 | | | | 25,806,932 | |
Dominican Republic International Bond
4.50%, 01/30/2030(c) | | | U.S.$ | | | | 5,298 | | | | 4,913,895 | |
6.875%, 01/29/2026(c) | | | | | | | 4,928 | | | | 4,982,208 | |
8.625%, 04/20/2027(c) | | | | | | | 824 | | | | 851,604 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 36,554,639 | |
| | | | | | | | | | | | |
El Salvador – 0.1% | | | | | | | | | | | | |
El Salvador Government International Bond
8.625%, 02/28/2029(c) | | | | | | | 1,330 | | | | 1,306,725 | |
| | | | | | | | | | | | |
| | | |
Guatemala – 0.1% | | | | | | | | | | | | |
Guatemala Government Bond
6.05%, 08/06/2031(c) | | | | | | | 1,285 | | | | 1,277,290 | |
| | | | | | | | | | | | |
| | | |
Ivory Coast – 0.1% | | | | | | | | | | | | |
Ivory Coast Government International Bond
4.875%, 01/30/2032(c) | | | EUR | | | | 1,195 | | | | 1,134,532 | |
5.75%, 12/31/2032(c)(e) | | | U.S.$ | | | | 990 | | | | 936,699 | |
6.375%, 03/03/2028(c) | | | | | | | 1,377 | | | | 1,367,540 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,438,771 | |
| | | | | | | | | | | | |
Kenya – 0.1% | | | | | | | | | | | | |
Republic of Kenya Government International Bond
7.00%, 05/22/2027(c) | | | | | | | 1,680 | | | | 1,658,479 | |
| | | | | | | | | | | | |
| | | |
Nigeria – 0.0% | | | | | | | | | | | | |
Nigeria Government International Bond
6.125%, 09/28/2028(c) | | | | | | | 233 | | | | 210,137 | |
7.143%, 02/23/2030(c) | | | | | | | 211 | | | | 190,296 | |
7.875%, 02/16/2032(c) | | | | | | | 226 | | | | 202,905 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 603,338 | |
| | | | | | | | | | | | |
Senegal – 0.1% | | | | | | | | | | | | |
Senegal Government International Bond
4.75%, 03/13/2028(c) | | | EUR | | | | 1,465 | | | | 1,474,535 | |
6.25%, 05/23/2033(c) | | | U.S.$ | | | | 1,185 | | | | 976,973 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,451,508 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 23 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Ukraine – 0.1% | | | | | | | | | | | | |
Ukraine Government International Bond
0.00%, 02/01/2030(c)(e) | | | U.S.$ | | | | 214 | | | $ | 102,347 | |
0.00%, 02/01/2034(c)(e) | | | | | | | 799 | | | | 292,938 | |
0.00%, 02/01/2035(c)(e) | | | | | | | 675 | | | | 327,594 | |
0.00%, 02/01/2036(c)(e) | | | | | | | 563 | | | | 271,588 | |
1.75%, 02/01/2034(c)(e) | | | | | | | 1,124 | | | | 526,535 | |
1.75%, 02/01/2035(c)(e) | | | | | | | 1,549 | | | | 708,815 | |
1.75%, 02/01/2036(c)(e) | | | | | | | 1,242 | | | | 559,109 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,788,926 | |
| | | | | | | | | | | | |
Total Emerging Markets - Sovereigns
(cost $57,009,501) | | | | | | | | | | | 55,720,456 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
ASSET-BACKED SECURITIES – 2.1% | | | | | | | | | | | | |
Other ABS - Fixed Rate – 1.6% | | | | | | | | | | | | |
Affirm Asset Securitization Trust
Series 2022-Z1, Class A
4.55%, 06/15/2027(c) | | | | | | | 283 | | | | 282,144 | |
Series 2023-A, Class 1A
6.61%, 01/18/2028(c) | | | | | | | 250 | | | | 250,719 | |
Series 2023-A, Class A
6.61%, 01/18/2028(c) | | | | | | | 9,617 | | | | 9,643,917 | |
Avant Loans Funding Trust
Series 2024-REV1, Class A
5.92%, 10/15/2033(c) | | | | | | | 5,275 | | | | 5,298,289 | |
BHG Securitization Trust
Series 2023-A, Class A
5.55%, 04/17/2036(c) | | | | | | | 2,631 | | | | 2,633,297 | |
Cherry Securitization Trust
Series 2024-1A, Class A
5.70%, 04/15/2032(c) | | | | | | | 5,250 | | | | 5,183,018 | |
Consumer Loan Underlying Bond Club Certificate Issuer Trust I
Series 2019-36, Class PT
4.857%, 10/17/2044(m) | | | | | | | 7 | | | | 6,606 | |
Pagaya AI Debt Grantor Trust
Series 2024-S1, Class ABC
7.237%, 09/15/2031(c)(k) | | | | | | | 6,174 | | | | 6,274,355 | |
Pagaya AI Debt Trust
Series 2022-6, Class A4
24.50%, 05/15/2030(c)(k) | | | | | | | 80 | | | | 83,365 | |
Series 2023-1, Class A
7.556%, 07/15/2030(c) | | | | | | | 514 | | | | 515,275 | |
Republic Finance Issuance Trust
Series 2024-A, Class A
5.91%, 08/20/2032(c) | | | | | | | 5,840 | | | | 5,870,043 | |
| | |
| |
24 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2024-B, Class A
5.56%, 11/20/2037(c) | | | U.S.$ | | | | 3,800 | | | $ | 3,799,806 | |
Theorem Funding Trust
Series 2022-3A, Class A
7.60%, 04/15/2029(c) | | | | | | | 1,894 | | | | 1,910,256 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 41,751,090 | |
| | | | | | | | | | | | |
Autos - Fixed Rate – 0.4% | | | | | | | | | | | | |
Flagship Credit Auto Trust
Series 2019-4, Class E
4.11%, 03/15/2027(c) | | | | | | | 2,970 | | | | 2,943,390 | |
Hertz Vehicle Financing III LLC
Series 2024-1A, Class A
5.44%, 01/25/2029(c) | | | | | | | 3,486 | | | | 3,497,185 | |
Lendbuzz Securitization Trust
Series 2023-1A, Class A2
6.92%, 08/15/2028(c) | | | | | | | 3,382 | | | | 3,433,759 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,874,334 | |
| | | | | | | | | | | | |
Other ABS - Floating Rate – 0.1% | | | | | | | | | | | | |
Capital Street Master Trust
Series 2024-1, Class A
4.99% (CME Term SOFR + 1.35%), 10/16/2028(c)(g)(k) | | | | | | | 1,749 | | | | 1,748,930 | |
| | | | | | | | | | | | |
| | | |
Total Asset-Backed Securities
(cost $53,241,972) | | | | | | | | | | | 53,374,354 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
COLLATERALIZED MORTGAGE OBLIGATIONS – 1.7% | | | | | | | | | | | | |
Risk Share Floating Rate – 1.2% | | | | | | | | | | | | |
Connecticut Avenue Securities Trust
Series 2022-R03, Class 1M2
8.357% (CME Term SOFR + 3.50%), 03/25/2042(c)(g) | | | | | | | 2,657 | | | | 2,787,754 | |
Series 2023-R05, Class 1M1
6.757% (CME Term SOFR + 1.90%), 06/25/2043(c)(g) | | | | | | | 4,111 | | | | 4,154,520 | |
Series 2023-R07, Class 2M1
6.807% (CME Term SOFR + 1.95%), 09/25/2043(c)(g) | | | | | | | 2,799 | | | | 2,809,183 | |
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2015-DNA2, Class B
12.521% (CME Term SOFR + 7.66%), 12/25/2027(g) | | | | | | | 1,169 | | | | 1,211,403 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 25 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2015-DNA3, Class B
14.321% (CME Term SOFR + 9.46%), 04/25/2028(g) | | U.S.$ | | | 2,449 | | | $ | 2,624,961 | |
Series 2015-HQA1, Class B
13.771% (CME Term SOFR + 8.91%), 03/25/2028(g) | | | | | 1,565 | | | | 1,628,123 | |
Series 2016-DNA1, Class B
14.971% (CME Term SOFR + 10.11%), 07/25/2028(g) | | | | | 2,210 | | | | 2,408,714 | |
Series 2023-HQA2, Class M1A
6.857% (CME Term SOFR + 2.00%), 06/25/2043(c)(g) | | | | | 2,542 | | | | 2,554,113 | |
Series 2023-HQA3, Class A1
6.707% (CME Term SOFR + 1.85%), 11/25/2043(c)(g) | | | | | 1,805 | | | | 1,825,157 | |
Federal National Mortgage Association Connecticut Avenue Securities
Series 2015-C04, Class 2M2
10.521% (CME Term SOFR + 5.66%), 04/25/2028(g) | | | | | 662 | | | | 671,691 | |
Series 2016-C01, Class 2M2
11.921% (CME Term SOFR + 7.06%), 08/25/2028(g) | | | | | 210 | | | | 220,409 | |
Series 2016-C02, Class 1M2
10.971% (CME Term SOFR + 6.11%), 09/25/2028(g) | | | | | 843 | | | | 865,929 | |
Series 2016-C05, Class 2B
15.72% (CME Term SOFR + 10.86%), 01/25/2029(g) | | | | | 2,725 | | | | 3,097,276 | |
Series 2016-C07, Class 2B
14.471% (CME Term SOFR + 9.61%), 05/25/2029(g) | | | | | 1,184 | | | | 1,345,456 | |
JPMorgan Madison Avenue Securities Trust
Series 2014-CH1, Class M2
9.221% (CME Term SOFR + 4.36%), 11/25/2024(c)(g) | | | | | 285 | | | | 298,257 | |
Series 2015-CH1, Class M2
10.471% (CME Term SOFR + 5.61%), 10/25/2025(c)(g) | | | | | 535 | | | | 548,814 | |
PMT Credit Risk Transfer Trust
Series 2020-1R, Class A
8.321% (CME Term SOFR + 3.46%), 02/25/2025(c)(g) | | | | | 1,432 | | | | 1,432,196 | |
| | |
| |
26 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Wells Fargo Credit Risk Transfer Securities Trust
Series 2015-WF1, Class 1M2
10.221% (CME Term SOFR + 5.36%), 11/25/2025(c)(g) | | | U.S.$ | | | | 193 | | | $ | 199,640 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 30,683,596 | |
| | | | | | | | | | | | |
Agency Floating Rate – 0.4% | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp. REMICs
Series 3119, Class PI
2.076% (7.09% – CME Term SOFR), 02/15/2036(g)(p) | | | | | | | 647 | | | | 90,479 | |
Series 3856, Class KS
1.426% (6.44% – CME Term SOFR), 05/15/2041(g)(p) | | | | | | | 3,634 | | | | 449,458 | |
Series 4248, Class SL
0.926% (5.94% – CME Term SOFR), 05/15/2041(g)(p) | | | | | | | 372 | | | | 31,211 | |
Series 4372, Class JS
0.976% (5.99% – CME Term SOFR), 08/15/2044(g)(p) | | | | | | | 2,146 | | | | 237,620 | |
Series 4570, Class ST
0.876% (5.89% – CME Term SOFR), 04/15/2046(g)(p) | | | | | | | 1,012 | | | | 108,753 | |
Series 4735, Class SA
1.076% (6.09% – CME Term SOFR), 12/15/2047(g)(p) | | | | | | | 4,967 | | | | 631,813 | |
Series 4763, Class SB
1.876% (6.89% – CME Term SOFR), 03/15/2048(g)(p) | | | | | | | 7,090 | | | | 1,174,457 | |
Series 4774, Class BS
1.076% (6.09% – CME Term SOFR), 02/15/2048(g)(p) | | | | | | | 3,430 | | | | 500,287 | |
Series 4774, Class SL
1.076% (6.09% – CME Term SOFR), 04/15/2048(g)(p) | | | | | | | 4,747 | | | | 589,957 | |
Series 4927, Class SJ
1.079% (5.94% – CME Term SOFR), 11/25/2049(g)(p) | | | | | | | 1,939 | | | | 198,057 | |
Federal National Mortgage Association REMICs
Series 2013-4, Class ST
1.179% (6.04% – CME Term SOFR), 02/25/2043(g)(p) | | | | | | | 1,552 | | | | 166,273 | |
Series 2014-88, Class BS
1.179% (6.04% – CME Term SOFR), 01/25/2045(g)(p) | | | | | | | 1,196 | | | | 136,562 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 27 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2015-90, Class SA
1.179% (6.04% – CME Term SOFR), 12/25/2045(g)(p) | | | U.S.$ | | | | 10,480 | | | $ | 1,279,393 | |
Series 2016-69, Class DS
1.129% (5.99% – CME Term SOFR), 10/25/2046(g)(p) | | | | | | | 13,256 | | | | 1,138,575 | |
Series 2017-49, Class SP
1.179% (6.04% – CME Term SOFR), 07/25/2047(g)(p) | | | | | | | 1,409 | | | | 173,033 | |
Series 2018-32, Class SB
1.229% (6.09% – CME Term SOFR), 05/25/2048(g)(p) | | | | | | | 2,613 | | | | 361,434 | |
Series 2018-45, Class SL
1.229% (6.09% – CME Term SOFR), 06/25/2048(g)(p) | | | | | | | 1,933 | | | | 243,914 | |
Series 2018-57, Class SL
1.229% (6.09% – CME Term SOFR), 08/25/2048(g)(p) | | | | | | | 5,147 | | | | 777,440 | |
Series 2018-58, Class SA
1.229% (6.09% – CME Term SOFR), 08/25/2048(g)(p) | | | | | | | 2,572 | | | | 308,613 | |
Series 2018-59, Class HS
1.229% (6.09% – CME Term SOFR), 08/25/2048(g)(p) | | | | | | | 6,243 | | | | 753,790 | |
Series 2019-25, Class SA
1.079% (5.94% – CME Term SOFR), 06/25/2049(g)(p) | | | | | | | 2,416 | | | | 259,005 | |
Series 2019-60, Class SJ
1.079% (5.94% – CME Term SOFR), 10/25/2049(g)(p) | | | | | | | 2,284 | | | | 266,710 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,876,834 | |
| | | | | | | | | | | | |
Non-Agency Fixed Rate – 0.1% | | | | | | | | | | | | |
Alternative Loan Trust
Series 2006-24CB, Class A15
5.75%, 08/25/2036 | | | | | | | 798 | | | | 403,873 | |
CHL Mortgage Pass-Through Trust
Series 2007-3, Class A30
5.75%, 04/25/2037 | | | | | | | 437 | | | | 200,139 | |
Series 2007-HY4, Class 1A1
4.989%, 09/25/2047 | | | | | | | 132 | | | | 118,846 | |
Citigroup Mortgage Loan Trust
Series 2007-AR4, Class 1A1A
4.709%, 03/25/2037 | | | | | | | 72 | | | | 59,707 | |
Wells Fargo Mortgage Backed Securities Trust
Series 2007-AR7, Class A1
6.661%, 12/28/2037 | | | | | | | 403 | | | | 352,483 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,135,048 | |
| | | | | | | | | | | | |
| | |
| |
28 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Non-Agency Floating Rate – 0.0% | | | | | | | | | | | | |
First Horizon Alternative Mortgage Securities Trust
Series 2007-FA2, Class 1A10
5.102% (CME Term SOFR 1 Month + 0.36%), 04/25/2037(g) | | | U.S.$ | | | | 319 | | | $ | 73,926 | |
Lehman XS Trust
Series 2007-10H, Class 2AIO
2.041% (6.89% – CME Term SOFR 1 Month), 07/25/2037(g)(p) | | | | | | | 151 | | | | 13,919 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 87,845 | |
| | | | | | | | | | | | |
Agency Fixed Rate – 0.0% | | | | | | | | | | | | |
Federal National Mortgage Association REMICs
Series 2016-26, Class IO
5.00%, 05/25/2046(q) | | | | | | | 260 | | | | 35,775 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Mortgage Obligations
(cost $39,938,173) | | | | | | | | | | | 41,819,098 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.5% | | | | | | | | | | | | |
Non-Agency Fixed Rate CMBS – 1.5% | | | | | | | | | | | | |
BANK
Series 2020-BN25, Class XA
0.871%, 01/15/2063(q) | | | | | | | 61,984 | | | | 2,212,134 | |
Bank of America Merrill Lynch Commercial Mortgage Trust
Series 2016-UB10, Class C
4.824%, 07/15/2049 | | | | | | | 372 | | | | 354,728 | |
Barclays Commercial Mortgage Trust
Series 2019-C3, Class XA
1.309%, 05/15/2052(q) | | | | | | | 10,312 | | | | 475,586 | |
CD Mortgage Trust
Series 2017-CD3, Class XA
0.95%, 02/10/2050(q) | | | | | | | 13,340 | | | | 229,726 | |
CFCRE Commercial Mortgage Trust
Series 2016-C4, Class XA
1.566%, 05/10/2058(q) | | | | | | | 10,384 | | | | 157,123 | |
Citigroup Commercial Mortgage Trust
Series 2016-GC36, Class A5
3.616%, 02/10/2049 | | | | | | | 4,350 | | | | 4,236,044 | |
Commercial Mortgage Trust
Series 2015-CR27, Class XA
0.90%, 10/10/2048(q) | | | | | | | 5,884 | | | | 27,395 | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 29 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CSAIL Commercial Mortgage Trust
Series 2019-C15, Class B
4.476%, 03/15/2052 | | U.S.$ | | | 960 | | | $ | 881,684 | |
GS Mortgage Securities Trust
Series 2011-GC5, Class C
5.151%, 08/10/2044(c) | | | | | 375 | | | | 290,116 | |
Series 2011-GC5, Class D
5.151%, 08/10/2044(c) | | | | | 4,025 | | | | 2,195,927 | |
Series 2016-GS3, Class XA
1.184%, 10/10/2049(q) | | | | | 28,858 | | | | 448,514 | |
Series 2019-GC39, Class XA
1.079%, 05/10/2052(q) | | | | | 12,049 | | | | 493,889 | |
JPMBB Commercial Mortgage Securities Trust
Series 2014-C24, Class C
4.547%, 11/15/2047 | | | | | 5,869 | | | | 4,839,333 | |
JPMDB Commercial Mortgage Securities Trust
Series 2019-COR6, Class XA
0.917%, 11/13/2052(q) | | | | | 36,595 | | | | 1,213,358 | |
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2012-LC9, Class E
3.567%, 12/15/2047(c) | | | | | 7,500 | | | | 6,114,785 | |
Series 2012-LC9, Class G
3.567%, 12/15/2047(c) | | | | | 831 | | | | 453,785 | |
Series 2016-JP2, Class XA
1.787%, 08/15/2049(q) | | | | | 12,831 | | | | 248,356 | |
LB-UBS Commercial Mortgage Trust
Series 2006-C6, Class AJ
5.452%, 09/15/2039 | | | | | 632 | | | | 210,456 | |
LCCM
Series 2017-LC26, Class XA
1.515%, 07/12/2050(c)(q) | | | | | 31,563 | | | | 918,778 | |
Morgan Stanley Bank of America Merrill Lynch Trust
Series 2013-C9, Class D
3.809%, 05/15/2046(c) | | | | | 680 | | | | 589,953 | |
Series 2014-C18, Class C
4.727%, 10/15/2047 | | | | | 2,721 | | | | 2,646,342 | |
Series 2015-C22, Class XA
0.973%, 04/15/2048(q) | | | | | 10,410 | | | | 3,731 | |
UBS Commercial Mortgage Trust
Series 2017-C1, Class XA
1.49%, 06/15/2050(q) | | | | | 5,964 | | | | 167,082 | |
Series 2019-C16, Class XA
1.519%, 04/15/2052(q) | | | | | 13,865 | | | | 639,137 | |
| | |
| |
30 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2019-C18, Class XA
0.994%, 12/15/2052(q) | | | U.S.$ | | | | 42,453 | | | $ | 1,486,048 | |
UBS-Barclays Commercial Mortgage Trust
Series 2013-C5, Class B
3.649%, 03/10/2046(c) | | | | | | | 1,033 | | | | 948,700 | |
Series 2013-C5, Class C
3.72%, 03/10/2046(c) | | | | | | | 782 | | | | 668,168 | |
Wells Fargo Commercial Mortgage Trust
Series 2015-LC20, Class XA
1.362%, 04/15/2050(q) | | | | | | | 5,401 | | | | 4,561 | |
Series 2016-C36, Class XA
1.16%, 11/15/2059(q) | | | | | | | 40,152 | | | | 657,605 | |
Series 2016-LC24, Class XA
1.60%, 10/15/2049(q) | | | | | | | 25,220 | | | | 565,440 | |
Series 2016-LC25, Class XA
0.818%, 12/15/2059(q) | | | | | | | 16,115 | | | | 213,520 | |
Series 2019-C52, Class XA
1.559%, 08/15/2052(q) | | | | | | | 16,997 | | | | 970,082 | |
WF-RBS Commercial Mortgage Trust
Series 2011-C4, Class E
4.983%, 06/15/2044(c) | | | | | | | 489 | | | | 421,249 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 35,983,335 | |
| | | | | | | | | | | | |
Agency CMBS – 0.0% | | | | | | | | | | | | |
Government National Mortgage Association
Series 2006-32, Class XM
0.124%, 11/16/2045(q) | | | | | | | 83 | | | | 1 | |
| | | | | | | | | | | | |
| | | |
Total Commercial Mortgage-Backed Securities
(cost $41,700,111) | | | | | | | | | | | 35,983,336 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
AGENCIES – 1.2% | | | | | | | | | | | | |
Agency Debentures – 1.2% | | | | | | | | | | | | |
Federal Home Loan Banks
5.50%, 07/15/2036 | | | | | | | 8,695 | | | | 9,439,466 | |
Federal Home Loan Mortgage Corp.
6.25%, 07/15/2032(d) | | | | | | | 10,400 | | | | 11,711,304 | |
6.75%, 03/15/2031 | | | | | | | 4,000 | | | | 4,540,452 | |
Series GDIF
6.75%, 09/15/2029 | | | | | | | 4,606 | | | | 5,127,654 | |
| | | | | | | | | | | | |
| | | |
Total Agencies
(cost $33,705,403) | | | | | | | | | | | 30,818,876 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 31 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
BANK LOANS – 1.2% | | | | | | | | | | | | |
Industrial – 1.0% | | | | | | | | | | | | |
Capital Goods – 0.0% | | | | | | | | | | | | |
Chariot Buyer LLC
8.035% (SOFR 1 Month + 3.25%), 11/03/2028(r) | | | U.S.$ | | | | 224 | | | $ | 223,201 | |
| | | | | | | | | | | | |
| | | |
Communications - Media – 0.1% | | | | | | | | | | | | |
Coral-US Co-Borrower LLC
7.918% (SOFR 1 Month + 3.00%), 10/15/2029(r) | | | | | | | 1,046 | | | | 1,040,734 | |
DirecTV Financing LLC
10.097% (SOFR 3 Month + 5.25%), 08/02/2029(r) | | | | | | | 1,696 | | | | 1,647,343 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,688,077 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.3% | | | | | | | | | | | | |
Crown Subsea Communications Holding, Inc.
8.685% (SOFR 1 Month + 4.00%), 01/30/2031(r) | | | | | | | 3,761 | | | | 3,778,212 | |
Zacapa SARL
8.35% (SOFR 3 Month + 3.25%), 03/22/2029(r) | | | | | | | 3,225 | | | | 3,225,056 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,003,268 | |
| | | | | | | | | | | | |
Consumer Cyclical - Restaurants – 0.0% | | | | | | | | | | | | |
IRB Holding Corp.
7.535% (SOFR 1 Month + 2.75%), 12/15/2027(r) | | | | | | | 532 | | | | 531,556 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Retailers – 0.0% | | | | | | | | | | | | |
Great Outdoors Group LLC
8.550% (SOFR 1 Month + 3.75%), 03/06/2028(r) | | | | | | | 1,165 | | | | 1,167,079 | |
| | | | | | | | | | | | |
| | | |
Consumer Non-Cyclical – 0.2% | | | | | | | | | | | | |
PetSmart LLC
8.535% (SOFR 1 Month + 3.75%), 02/11/2028(r) | | | | | | | 4,228 | | | | 4,200,028 | |
| | | | | | | | | | | | |
| | | |
Energy – 0.1% | | | | | | | | | | | | |
GIP II Blue Holding LP
8.595% (SOFR 1 Month + 3.75%), 09/29/2028(r) | | | | | | | 1,898 | | | | 1,901,631 | |
| | | | | | | | | | | | |
| | |
| |
32 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Other Industrial – 0.1% | | | | | | | | | | | | |
Dealer Tire Financial LLC
8.185% (SOFR 1 Month + 3.50%), 07/02/2031(r) | | | U.S.$ | | | | 1,274 | | | $ | 1,273,693 | |
| | | | | | | | | | | | |
| | | |
Technology – 0.2% | | | | | | | | | | | | |
Ascend Learning LLC
10.535% (SOFR 1 Month + 5.75%), 12/10/2029(r) | | | | | | | 930 | | | | 912,953 | |
Boxer Parent Company, Inc.
8.335% (SOFR 3 Month + 3.75%), 07/30/2031(r) | | | | | | | 3,327 | | | | 3,315,812 | |
FINThrive Software Intermediate Holdings, Inc.
11.550% (SOFR 1 Month + 6.75%), 12/17/2029(r) | | | | | | | 580 | | | | 240,700 | |
Loyalty Ventures, Inc.
14.000% (PRIME 3 Month + 5.50%), 11/03/2027(j)(k)(o)(r) | | | | | | | 4,133 | | | | 30,999 | |
Peraton Corp.
8.535% (SOFR 1 Month + 3.75%), 02/01/2028(r) | | | | | | | 1,568 | | | | 1,514,706 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,015,170 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 25,003,703 | |
| | | | | | | | | | | | |
Financial Institutions – 0.2% | | | | | | | | | | | | |
Finance – 0.0% | | | | | | | | | | | | |
Orbit Private Holdings I Ltd.
10.014% (SOFR 6 Month + 4.50%), 12/11/2028(k)(r) | | | | | | | 370 | | | | 369,550 | |
| | | | | | | | | | | | |
| | | |
Insurance – 0.2% | | | | | | | | | | | | |
Asurion LLC
9.035% (SOFR 1 Month + 4.25%), 08/19/2028(r) | | | | | | | 1,684 | | | | 1,673,823 | |
Hub International Ltd.
7.367% (SOFR 3 Month + 2.75%), 06/20/2030(r) | | | | | | | 1,646 | | | | 1,648,764 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,322,587 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,692,137 | |
| | | | | | | | | | | | |
Total Bank Loans
(cost $33,025,283) | | | | | | | | | | | 28,695,840 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
QUASI-SOVEREIGNS – 1.1% | | | | | | | | | | | | |
Quasi-Sovereign Bonds – 1.1% | | | | | | | | | | | | |
Azerbaijan – 0.1% | | | | | | | | | | | | |
Southern Gas Corridor CJSC
6.875%, 03/24/2026(c) | | | | | | | 3,265 | | | | 3,329,288 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 33 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Chile – 0.1% | | | | | | | | | | | | |
Corp. Nacional del Cobre de Chile
5.125%, 02/02/2033(c) | | | U.S.$ | | | | 480 | | | $ | 462,750 | |
5.95%, 01/08/2034(c) | | | | | | | 832 | | | | 842,140 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,304,890 | |
| | | | | | | | | | | | |
Hungary – 0.1% | | | | | | | | | | | | |
Magyar Export-Import Bank Zrt
6.125%, 12/04/2027(c) | | | | | | | 1,330 | | | | 1,354,106 | |
MFB Magyar Fejlesztesi Bank Zrt
6.50%, 06/29/2028(c) | | | | | | | 554 | | | | 569,235 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,923,341 | |
| | | | | | | | | | | | |
Indonesia – 0.1% | | | | | | | | | | | | |
Indonesia Asahan Aluminium PT/Mineral Industri Indonesia Persero PT
4.75%, 05/15/2025(c) | | | | | | | 2,044 | | | | 2,037,050 | |
| | | | | | | | | | | | |
| | | |
Kazakhstan – 0.0% | | | | | | | | | | | | |
Development Bank of Kazakhstan JSC
5.25%, 10/23/2029(c) | | | | | | | 974 | | | | 971,565 | |
| | | | | | | | | | | | |
| | | |
Mexico – 0.5% | | | | | | | | | | | | |
Comision Federal de Electricidad
4.688%, 05/15/2029(c) | | | | | | | 3,231 | | | | 3,061,373 | |
4.75%, 02/23/2027(c) | | | | | | | 2,180 | | | | 2,141,261 | |
5.70%, 01/24/2030(c) | | | | | | | 1,320 | | | | 1,287,000 | |
Petroleos Mexicanos
6.375%, 01/23/2045 | | | | | | | 1,944 | | | | 1,358,370 | |
6.49%, 01/23/2027 | | | | | | | 1,455 | | | | 1,434,470 | |
6.50%, 01/23/2029 | | | | | | | 587 | | | | 550,952 | |
8.75%, 06/02/2029 | | | | | | | 4,450 | | | | 4,495,921 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,329,347 | |
| | | | | | | | | | | | |
South Africa – 0.2% | | | | | | | | | | | | |
Eskom Holdings SOC Ltd.
7.125%, 02/11/2025(c) | | | | | | | 3,231 | | | | 3,225,960 | |
Transnet SOC Ltd.
8.25%, 02/06/2028(c) | | | | | | | 1,294 | | | | 1,317,858 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,543,818 | |
| | | | | | | | | | | | |
Total Quasi-Sovereigns
(cost $28,490,809) | | | | | | | | | | | 28,439,299 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.5% | | | | | | | | | | | | |
Colombia – 0.1% | | | | | | | | | | | | |
Colombia Government International Bond
3.125%, 04/15/2031 | | | | | | | 864 | | | | 687,744 | |
8.00%, 11/14/2035 | | | | | | | 1,493 | | | | 1,510,916 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,198,660 | |
| | | | | | | | | | | | |
| | |
| |
34 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Panama – 0.2% | | | | | | | | | | | | |
Panama Government International Bond
6.875%, 01/31/2036 | | | U.S.$ | | | | 677 | | | $ | 668,326 | |
Panama Notas del Tesoro
3.75%, 04/17/2026 | | | | | | | 5,027 | | | | 4,890,668 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,558,994 | |
| | | | | | | | | | | | |
Romania – 0.2% | | | | | | | | | | | | |
Romanian Government International Bond
5.75%, 03/24/2035(c) | | | | | | | 5,280 | | | | 4,966,896 | |
| | | | | | | | | | | | |
| | | |
Trinidad & Tobago – 0.0% | | | | | | | | | | | | |
Trinidad & Tobago Government International Bond
4.50%, 08/04/2026(c) | | | | | | | 484 | | | | 472,384 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Sovereign Bonds
(cost $13,811,886) | | | | | | | | | | | 13,196,934 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.4% | | | | | | | | | | | | |
United States – 0.4% | | | | | | | | | | | | |
Texas Department of Transportation State Highway Fund
Series 2010-B
5.178%, 04/01/2030 | | | | | | | 2,560 | | | | 2,571,019 | |
Wisconsin Public Finance Authority
(Catholic Bishop of Chicago (The))
Series 2021
5.75%, 07/25/2041(m) | | | | | | | 6,915 | | | | 6,255,593 | |
| | | | | | | | | | | | |
| | | |
Total Local Governments - US Municipal Bonds
(cost $9,475,000) | | | | | | | | | | | 8,826,612 | |
| | | | | | | | | | | | |
| | | |
| | | | | | Shares | | | | |
COMMON STOCKS – 0.1% | | | | | | | | | | | | |
Financials – 0.1% | | | | | | | | | | | | |
Banks – 0.1% | | | | | | | | | | | | |
Nordic Aviation Capital DAC(j)(k)(l) | | | | | | | 103,735 | | | | 1,970,965 | |
| | | | | | | | | | | | |
| | | |
Financial Services – 0.0% | | | | | | | | | | | | |
Curo Group Holdings Corp.(j)(k)(l) | | | | | | | 135,587 | | | | 632,479 | |
Paysafe Ltd.(l) | | | | | | | 8,409 | | | | 178,607 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 811,086 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,782,051 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 35 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Industrials – 0.0% | | | | | | | | | | | | |
Electrical Equipment – 0.0% | | | | | | | | | | | | |
Exide Technologies(j)(k)(l) | | | | | | | 497 | | | $ | 143,136 | |
| | | | | | | | | | | | |
| | | |
Consumer Staples – 0.0% | | | | | | | | | | | | |
Southeastern Grocers, Inc.(j)(k)(l) | | | | | | | 71,086 | | | | 26,657 | |
| | | | | | | | | | | | |
| | | |
Consumer Discretionary – 0.0% | | | | | | | | | | | | |
Broadline Retail – 0.0% | | | | | | | | | | | | |
ATD New Holdings, Inc.(k)(l) | | | | | | | 29,486 | | | | 20,640 | |
| | | | | | | | | | | | |
| | | |
Diversified Consumer Services – 0.0% | | | | | | | | | | | | |
Paysafe AG Tracker(k)(l) | | | | | | | 53,417 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,640 | |
| | | | | | | | | | | | |
Energy – 0.0% | | | | | | | | | | | | |
Oil, Gas & Consumable Fuels – 0.0% | | | | | | | | | | | | |
SandRidge Energy, Inc. | | | | | | | 105 | | | | 1,165 | |
| | | | | | | | | | | | |
| | | |
Total Common Stocks
(cost $5,167,080) | | | | | | | | | | | 2,973,649 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
PREFERRED STOCKS – 0.1% | | | | | | | | | | | | |
Industrial – 0.1% | | | | | | | | | | | | |
Auto Components – 0.1% | | | | | | | | | | | | |
Exide International Holdings LP
0.00%(c)(j)(k)(l)
(cost $2,325,936) | | | | | | | 3,093 | | | | 2,901,234 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
SHORT-TERM INVESTMENTS – 0.4% | | | | | | | | | | | | |
Investment Companies – 0.4% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,
4.72%(s)(t)(u)
(cost $10,094,188) | | | | | | | 10,094,188 | | | | 10,094,188 | |
| | | | | | | | | | | | |
| | | |
Total Investments – 121.0%
(cost $3,073,380,665) | | | | | | | | | | | 3,041,416,443 | |
Other assets less liabilities – (21.0)% | | | | | | | | | | | (527,723,940 | ) |
| | | | | | | | | | | | |
| | | |
Net Assets – 100.0% | | | | | | | | | | $ | 2,513,692,503 | |
| | | | | | | | | | | | |
| | |
| |
36 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
FUTURES (see Note D)
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Month | | | Current
Notional | | | Value and
Unrealized
Appreciation
(Depreciation) | |
Purchased Contracts | |
Long Gilt Futures | | | 10 | | | | December 2024 | | | $ | 1,212,599 | | | $ | (69,744 | ) |
U.S. 10 Yr Ultra Futures | | | 324 | | | | December 2024 | | | | 36,855,000 | | | | (113,764 | ) |
U.S. Long Bond (CBT) Futures | | | 120 | | | | December 2024 | | | | 14,156,250 | | | | (662,173 | ) |
U.S. T-Note 5 Yr (CBT) Futures | | | 5,070 | | | | December 2024 | | | | 543,678,281 | | | | (9,580,071 | ) |
U.S. T-Note 10 Yr (CBT) Futures | | | 1,790 | | | | December 2024 | | | | 197,739,063 | | | | (6,077,608 | ) |
|
Sold Contracts | |
U.S. T-Note 2 Yr (CBT) Futures | | | 1,556 | | | | December 2024 | | | | 320,450,905 | | | | 2,276,578 | |
U.S. Ultra Bond (CBT) Futures | | | 49 | | | | December 2024 | | | | 6,155,625 | | | | 133,985 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (14,092,797 | ) |
| | | | | | | | | | | | | | | | |
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 | | CAD | 2,911 | | | USD | 2,148 | | | | 11/07/2024 | | | $ | 56,598 | |
Bank of America, NA | | DOP | 1,641,900 | | | USD | 26,992 | | | | 01/17/2025 | | | | (126,586 | ) |
Citibank, NA | | BRL | 289,350 | | | USD | 56,047 | | | | 04/08/2025 | | | | 7,041,764 | |
UBS AG | | EUR | 21,740 | | | USD | 23,478 | | | | 12/20/2024 | | | | (216,005 | ) |
| | | | | | | | | | | | | | | | |
| | | $ | 6,755,771 | |
| | | | | | | | | | | | | | | | |
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
October 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Buy Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
iTraxx Australia Series 42, 5 Year Index, 12/20/2029* | | | (1.00 | )% | | | Quarterly | | | | 0.66 | % | | USD | 104,760 | | | $ | (1,747,399 | ) | | $ | (1,744,841 | ) | | $ | (2,558 | ) |
Kingdom of Saudi Arabia, 12/20/2029* | | | (1.00 | ) | | | Quarterly | | | | 0.62 | | | USD | 13,130 | | | | (245,489 | ) | | | (215,295 | ) | | | (30,194 | ) |
State of Qatar, 12/20/2029* | | | (1.00 | ) | | | Quarterly | | | | 0.42 | | | USD | 18,195 | | | | (513,283 | ) | | | (475,931 | ) | | | (37,352 | ) |
Sale Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-NAHY Series 43, 5 Year Index, 12/20/2029* | | | 5.00 | | | | Quarterly | | | | 3.36 | | | USD | 17,100 | | | | 1,271,885 | | | | 1,195,368 | | | | 76,517 | |
CDX-NAIG Series 43, 5 Year Index, 12/20/2029* | | | 1.00 | | | | Quarterly | | | | 0.54 | | | USD | 54,460 | | | | 1,218,869 | | | | 1,204,691 | | | | 14,178 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (15,417 | ) | | $ | (36,008 | ) | | $ | 20,591 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB INCOME FUND | 37 |
PORTFOLIO OF INVESTMENTS (continued)
REVERSE REPURCHASE AGREEMENTS (see Note D)
| | | | | | | | | | | | | | | | | | | | |
| Broker | | Currency | | | Principal
Amount
(000) | | | Interest
Rate | | | Maturity | | | U.S. $
Value at
October 31, 2024 | |
HSBC Securities (USA), Inc.† | | | USD | | | | 12,285 | | | | 4.60 | % | | | — | | | $ | 12,352,499 | |
Jefferies LLC† | | | USD | | | | 661 | | | | 0.00 | % | | | — | | | | 661,195 | |
Jefferies LLC | | | USD | | | | 207 | | | | 1.00 | % | | | 11/01/2024 | | | | 206,661 | |
Jefferies LLC† | | | USD | | | | 372 | | | | 3.25 | % | | | — | | | | 376,933 | |
Jefferies LLC† | | | USD | | | | 2,310 | | | | 4.25 | % | | | — | | | | 2,334,600 | |
Jefferies LLC† | | | USD | | | | 561 | | | | 4.50 | % | | | — | | | | 563,244 | |
Nomura UK† | | | USD | | | | 3,037 | | | | 2.50 | % | | | — | | | | 3,037,229 | |
Nomura UK† | | | USD | | | | 718 | | | | 4.25 | % | | | — | | | | 720,517 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | $ | 20,252,878 | |
| | | | | | | | | | | | | | | | | | | | |
| † | The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2024. |
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 | |
Agencies | | $ | 12,352,499 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 12,352,499 | |
Corporates – Investment Grade | | | 3,055,117 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 3,055,117 | |
Corporates – Non-Investment Grade | | | 1,038,128 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 1,038,128 | |
Emerging Markets – Corporate Bonds | | | 3,600,473 | | | | 206,661 | | | | – 0 | – | | | – 0 | – | | | 3,807,134 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 20,046,217 | | | $ | 206,661 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 20,252,878 | |
| | | | | | | | | | | | | | | | | | | | |
| ** | Principal amount less than 500. |
| (a) | Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. |
| (b) | Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps. |
| (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 October 31, 2024, the aggregate market value of these securities amounted to $816,197,890 or 32.5% of net assets. |
| (d) | Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements. |
| (e) | Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at October 31, 2024. |
| (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 October 31, 2024. |
| (h) | Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2024. |
| (i) | Defaulted matured security. |
| (j) | Fair valued by the Adviser. |
| | |
| |
38 | AB INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| (k) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (l) | Non-income producing security. |
| (m) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.25% of net assets as of October 31, 2024, 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 Club Certificate Issuer Trust I Series 2019-36, Class PT
4.857%, 10/17/2044 | | | 09/04/2019 | | | $ | 6,844 | | | $ | 6,606 | | | | 0.00 | % |
Digicel Group Holdings Ltd.
Zero Coupon, 12/31/2030 | | | 11/16/2023 | | | | 9,822 | | | | 1,255 | | | | 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 -
12/01/2019 |
| | | 692,006 | | | | – 0 | – | | | 0.00 | % |
Magnetation LLC/Mag Finance Corp.
11.00%, 05/15/2018 | | | 02/19/2015 | | | | 861,788 | | | | – 0 | – | | | 0.00 | % |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018 | |
| 06/13/2013 -
01/27/2014 |
| | | 3,480,601 | | | | 471 | | | | 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 -
02/03/2014 |
| | | 909,735 | | | | 168 | | | | 0.00 | % |
Wisconsin Public Finance Authority
(Catholic Bishop of Chicago (The))
Series 2021
5.75%, 07/25/2041 | | | 08/03/2021 | | | | 6,915,000 | | | | 6,255,593 | | | | 0.25 | % |
| (p) | Inverse interest only security. |
| (r) | The stated coupon rate represents the greater of the SOFR or an alternate base rate such as the PRIME or the SOFR/PRIME floor rate plus a spread at October 31, 2024. |
| (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:
BRL – Brazilian Real
CAD – Canadian Dollar
DOP – Dominican Peso
EUR – Euro
USD – United States Dollar
| | |
| |
| abfunds.com | | AB INCOME FUND | 39 |
PORTFOLIO OF INVESTMENTS (continued)
Glossary:
ABS – Asset-Backed Securities
CBT – Chicago Board of Trade
CDX-NAHY – North American High Yield Credit Default Swap Index
CDX-NAIG – North American Investment Grade Credit Default Swap Index
CJSC – Closed Joint Stock Company
CLO – Collateralized Loan Obligations
CMBS – Commercial Mortgage-Backed Securities
CME – Chicago Merchantile Exchange
JSC – Joint Stock Company
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.
| | |
| |
40 | AB INCOME FUND | | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $3,063,286,477) | | $ | 3,031,322,255 | |
Affiliated issuers (cost $10,094,188) | | | 10,094,188 | |
Cash | | | 2,754,788 | |
Foreign currencies, at value (cost $2,301,302) | | | 2,316,937 | |
Unaffiliated interest and dividends receivable | | | 25,062,594 | |
Unrealized appreciation on forward currency exchange contracts | | | 7,098,362 | |
Receivable for capital stock sold | | | 3,711,242 | |
Receivable for investment securities sold | | | 381,946 | |
Receivable due from Adviser | | | 100,099 | |
Affiliated dividends receivable | | | 55,626 | |
| | | | |
Total assets | | | 3,082,898,037 | |
| | | | |
| Liabilities | |
Payable for investment securities purchased | | | 532,551,549 | |
Payable for reverse repurchase agreements | | | 20,252,878 | |
Cash collateral due to broker | | | 6,930,000 | |
Payable for capital stock redeemed | | | 4,882,054 | |
Payable for variation margin on futures | | | 1,094,964 | |
Dividends payable | | | 1,014,012 | |
Advisory fee payable | | | 977,338 | |
Unrealized depreciation on forward currency exchange contracts | | | 342,591 | |
Foreign capital gains tax payable | | | 335,591 | |
Distribution fee payable | | | 92,872 | |
Administrative fee payable | | | 62,747 | |
Payable for variation margin on centrally cleared swaps | | | 42,855 | |
Transfer Agent fee payable | | | 41,610 | |
Directors’ fees payable | | | 4,625 | |
Accrued expenses and other liabilities | | | 579,848 | |
| | | | |
Total liabilities | | | 569,205,534 | |
| | | | |
Net Assets | | $ | 2,513,692,503 | |
| | | | |
| Composition of Net Assets | |
Capital stock, at par | | $ | 392,492 | |
Additional paid-in capital | | | 3,299,563,912 | |
Accumulated loss | | | (786,263,901 | ) |
| | | | |
Net Assets | | $ | 2,513,692,503 | |
| | | | |
Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 119,623,474 | | | | 18,701,349 | | | $ | 6.40 | * |
| |
| C | | $ | 77,463,634 | | | | 12,094,101 | | | $ | 6.41 | |
| |
| Advisor | | $ | 2,304,043,603 | | | | 359,735,701 | | | $ | 6.40 | |
| |
| Z | | $ | 12,561,792 | | | | 1,960,373 | | | $ | 6.41 | |
| |
| * | The maximum offering price per share for Class A shares was $6.68 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB INCOME FUND | 41 |
STATEMENT OF OPERATIONS
Year Ended October 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Interest | | $ | 146,152,883 | | | | | |
Dividends | | | | | | | | |
Affiliated issuers | | | 1,001,971 | | | | | |
Unaffiliated issuers | | | 34,501 | | | | | |
Other income | | | 144,636 | | | $ | 147,333,991 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 11,515,211 | | | | | |
Distribution fee—Class A | | | 314,639 | | | | | |
Distribution fee—Class C | | | 825,088 | | | | | |
Transfer agency—Class A | | | 98,364 | | | | | |
Transfer agency—Class C | | | 64,532 | | | | | |
Transfer agency—Advisor Class | | | 1,824,836 | | | | | |
Transfer agency—Class Z | | | 3,114 | | | | | |
Printing | | | 278,634 | | | | | |
Custody and accounting | | | 167,850 | | | | | |
Audit and tax | | | 150,390 | | | | | |
Administrative | | | 108,480 | | | | | |
Registration fees | | | 108,019 | | | | | |
Legal | | | 65,158 | | | | | |
Directors’ fees | | | 54,637 | | | | | |
Miscellaneous | | | 83,609 | | | | | |
| | | | | | | | |
Total expenses before interest expense/bank overdraft | | | 15,662,561 | | | | | |
Interest expense/bank overdraft | | | 841,016 | | | | | |
Total expenses | | | | | | | 16,503,577 | |
| | | | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (1,211,425 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 15,292,152 | |
| | | | | | | | |
Net investment income | | | | | | | 132,041,839 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions(a) | | | | | | | (503,663 | ) |
Forward currency exchange contracts | | | | | | | (36,498 | ) |
Futures | | | | | | | 20,893,812 | |
Options written | | | | | | | 188,680 | |
Swaps | | | | | | | (2,150,440 | ) |
Foreign currency transactions | | | | | | | (751,510 | ) |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments(b) | | | | | | | 111,716,529 | |
Forward currency exchange contracts | | | | | | | 6,683,768 | |
Futures | | | | | | | 21,261,397 | |
Options written | | | | | | | (98,590 | ) |
Swaps | | | | | | | 3,038,989 | |
Foreign currency denominated assets and liabilities | | | | | | | 148,044 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 160,390,518 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 292,432,357 | |
| | | | | | | | |
| (a) | Net of foreign realized capital gains taxes of $61,687. |
| (b) | Net of increase in accrued foreign capital gains taxes on unrealized gains of $38,390. |
See notes to financial statements.
| | |
| |
42 | AB INCOME FUND | | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 132,041,839 | | | $ | 116,479,126 | |
Net realized gain (loss) on investment and foreign currency transactions | | | 17,640,381 | | | | (257,509,640 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 142,750,137 | | | | 197,307,168 | |
| | | | | | | | |
Net increase in net assets from operations | | | 292,432,357 | | | | 56,276,654 | |
| Distributions to Shareholders | | | | | | | | |
Class A | | | (6,427,266 | ) | | | (6,139,059 | ) |
Class C | | | (3,587,037 | ) | | | (3,570,199 | ) |
Advisor Class | | | (125,347,943 | ) | | | (98,818,254 | ) |
Class Z | | | (774,369 | ) | | | (932,157 | ) |
| Return of Capital | | | | | | | | |
Class A | | | – 0 | – | | | (1,234,366 | ) |
Class C | | | – 0 | – | | | (717,851 | ) |
Advisor Class | | | – 0 | – | | | (19,869,152 | ) |
Class Z | | | – 0 | – | | | (187,427 | ) |
| Capital Stock Transactions | | | | | | | | |
Net decrease | | | (44,698,442 | ) | | | (152,901,365 | ) |
| | | | | | | | |
Total increase (decrease) | | | 111,597,300 | | | | (228,093,176 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 2,402,095,203 | | | | 2,630,188,379 | |
| | | | | | | | |
End of period | | $ | 2,513,692,503 | | | $ | 2,402,095,203 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB INCOME FUND | 43 |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024
NOTE A
Significant Accounting Policies
AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of seven 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 offers Class A, Class C, Advisor Class and Class Z shares. Class B, Class R, Class K, Class I, Class T, Class 1 and Class 2 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. Class C shares automatically convert to Class A shares eight 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 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.
| | |
| |
44 | AB INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. 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
| | |
| |
| abfunds.com | | AB INCOME FUND | 45 |
NOTES TO FINANCIAL STATEMENTS (continued)
contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded 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
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issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Governments – Treasuries | | $ | – 0 | – | | $ | 1,174,111,470 | | | $ | – 0 | – | | $ | 1,174,111,470 | |
Mortgage Pass-Throughs | | | – 0 | – | | | 711,180,779 | | | | – 0 | – | | | 711,180,779 | |
Corporates – Investment Grade | | | – 0 | – | | | 402,820,962 | | | | – 0 | – | | | 402,820,962 | |
Corporates – Non-Investment Grade | | | – 0 | – | | | 239,516,484 | | | | 1,082,096 | (a) | | | 240,598,580 | |
Collateralized Loan Obligations | | | – 0 | – | | | 126,195,458 | | | | – 0 | – | | | 126,195,458 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | 73,663,349 | | | | 1,969 | | | | 73,665,318 | |
Emerging Markets – Sovereigns | | | – 0 | – | | | 55,720,456 | | | | – 0 | – | | | 55,720,456 | |
Asset-Backed Securities | | | – 0 | – | | | 45,267,704 | | | | 8,106,650 | | | | 53,374,354 | |
Collateralized Mortgage Obligations | | | – 0 | – | | | 41,819,098 | | | | – 0 | – | | | 41,819,098 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 35,983,336 | | | | – 0 | – | | | 35,983,336 | |
Agencies | | | – 0 | – | | | 30,818,876 | | | | – 0 | – | | | 30,818,876 | |
Bank Loans | | | – 0 | – | | | 28,295,291 | | | | 400,549 | | | | 28,695,840 | |
Quasi-Sovereigns | | | – 0 | – | | | 28,439,299 | | | | – 0 | – | | | 28,439,299 | |
Governments – Sovereign Bonds | | | – 0 | – | | | 13,196,934 | | | | – 0 | – | | | 13,196,934 | |
Local Governments – US Municipal Bonds | | | – 0 | – | | | 8,826,612 | | | | – 0 | – | | | 8,826,612 | |
Common Stocks | | | 179,772 | | | | – 0 | – | | | 2,793,877 | (a) | | | 2,973,649 | |
Preferred Stocks | | | – 0 | – | | | – 0 | – | | | 2,901,234 | | | | 2,901,234 | |
Short-Term Investments | | | 10,094,188 | | | | – 0 | – | | | – 0 | – | | | 10,094,188 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 10,273,960 | | | | 3,015,856,108 | | | | 15,286,375 | (a) | | | 3,041,416,443 | |
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| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Other Financial Instruments(b): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | $ | 2,410,563 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 2,410,563 | (c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | 7,098,362 | | | | – 0 | – | | | 7,098,362 | |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | 2,490,754 | | | | – 0 | – | | | 2,490,754 | (c) |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (16,503,360 | ) | | | – 0 | – | | | – 0 | – | | | (16,503,360 | )(c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | (342,591 | ) | | | – 0 | – | | | (342,591 | ) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | (2,506,171 | ) | | | – 0 | – | | | (2,506,171 | )(c) |
| | | | | | | | | | | | | | | | |
Total | | $ | (3,818,837 | ) | | $ | 3,022,596,462 | | | $ | 15,286,375 | (a) | | $ | 3,034,064,000 | |
| | | | | | | | | | | | | | | | |
| (a) | The Fund held securities with zero market value at period end. |
| (b) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments 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 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.
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NOTES TO FINANCIAL STATEMENTS (continued)
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 real estate investment trust (“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
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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. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
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 year ended October 31, 2024, such reimbursement/waivers amounted to $1,182,270. The Expense Caps may not be terminated by the Adviser before January 31, 2025.
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2024, the reimbursement for such services amounted to $108,480.
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 $458,233 for the year ended October 31, 2024.
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 $7,364 from the sale of Class A shares and received $5,535 and $2,876 in contingent deferred sales charges imposed upon
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NOTES TO FINANCIAL STATEMENTS (continued)
redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2024, such waiver amounted to $29,155.
A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
10/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
10/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 10,866 | | | $ | 881,536 | | | $ | 882,308 | | | $ | 10,094 | | | $ | 1,002 | |
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the 1940 Act. 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 $1,235,445 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, and the share class is active, the rate of
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the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 717,314,066 | | | $ | 656,474,220 | |
U.S. government securities | | | 7,591,089,310 | | | | 7,601,618,544 | |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 3,076,298,126 | |
| | | | |
Gross unrealized appreciation | | $ | 46,984,471 | |
Gross unrealized depreciation | | | (81,976,906 | ) |
| | | | |
Net unrealized depreciation | | $ | (34,992,435 | ) |
| | | | |
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:
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”.
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At the time the Fund enters into futures, the Fund deposits with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.
Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the year ended October 31, 2024, 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
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appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.
During the year ended October 31, 2024, the Fund held forward currency exchange contracts for hedging purposes.
For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.
The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call purchased option by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call purchased options are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the written option. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from written options. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the
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underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of the written option by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.
During the year ended October 31, 2024, the Fund held purchased options for hedging purposes.
During the year ended October 31, 2024, the Fund held written options for hedging purposes.
The Fund may enter into swaps for investment purposes or 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, rates or indexes for a specified amount of an underlying asset or inflation. 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, inflation 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
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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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
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compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.
During the year ended October 31, 2024, the Fund held inflation (CPI) 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 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
| | |
| |
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NOTES TO FINANCIAL STATEMENTS (continued)
issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.
During the year ended October 31, 2024, the Fund held credit default swaps for non-hedging purposes.
The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.
The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.
| | |
| |
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NOTES TO FINANCIAL STATEMENTS (continued)
During the year ended October 31, 2024, 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 | |
$ |
2,410,563 |
* | |
Payable for variation margin on futures | |
$ |
16,503,360 |
* |
| | | | |
Credit contracts | |
Receivable for variation margin on centrally cleared swaps | |
|
90,695 |
* | |
Payable for variation margin on centrally cleared swaps | |
|
70,104 |
* |
| | | | |
Foreign currency contracts | |
Unrealized appreciation on forward currency exchange contracts | |
|
7,098,362 |
| |
Unrealized depreciation on forward currency exchange contracts | |
|
342,591 |
|
| | | | | | | | | | | | |
Total | | | | $ | 9,599,620 | | | | | $ | 16,916,055 | |
| | | | | | | | | | | | |
| * | 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 | | $ | 20,893,812 | | | $ | 21,261,397 | |
| | | |
Foreign currency contracts | | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts | | | (36,498 | ) | | | 6,683,768 | |
| | | |
Equity contracts | | Net realized gain (loss) on investment transactions; Net change in unrealized appreciation (depreciation) of investments | | | (325,496 | ) | | | (241,174 | ) |
| | |
| |
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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) | |
| | | |
Equity contracts | | Net realized gain (loss) on options written; Net change in unrealized appreciation (depreciation) of options written | | $ | 188,680 | | | $ | (98,590 | ) |
| | | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (273,350 | ) | | | (59,217 | ) |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (1,877,090 | ) | | | 3,098,206 | |
| | | | | | | | | | |
Total | | | | $ | 18,570,058 | | | $ | 30,644,390 | |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 926,747,235 | |
Average notional amount of sale contracts | | $ | 456,246,432 | |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 1,956,138 | (a) |
Average principal amount of sale contracts | | $ | 60,494,026 | |
Purchased Options: | | | | |
Average notional amount | | $ | 32,916,000 | (b) |
Options Written: | | | | |
Average notional amount | | $ | 31,044,000 | (b) |
Centrally Cleared Inflation Swaps: | | | | |
Average notional amount | | $ | 48,600,000 | (b) |
Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 49,870,856 | (c) |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 107,169,615 | |
Average notional amount of sale contracts | | $ | 106,808,709 | |
| (a) | Positions were open for five months during the year. |
| (b) | Positions were open for less than one month during the year. |
| (c) | Positions were open for nine months during the year. |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
| | |
| |
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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 October 31, 2024. 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 | | $ | 56,598 | | | $ | (56,598 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – |
Citibank, NA | | | 7,041,764 | | | | – 0 | – | | | (6,930,000 | ) | | | – 0 | – | | | 111,764 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 7,098,362 | | | $ | (56,598 | ) | | $ | (6,930,000 | ) | | $ | – 0 | – | | $ | 111,764 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | 126,586 | | | $ | (56,598 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | 69,988 | |
UBS AG | | | 216,005 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 216,005 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 342,591 | | | $ | (56,598 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | 285,993 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | 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
| | |
| |
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NOTES TO FINANCIAL STATEMENTS (continued)
mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.
The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2024, the Fund earned drop income of $288,458 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. If measured at fair value, borrowings under the reverse repurchase agreements would have been considered as a Level 1 investment. For the year ended October 31, 2024, the average amount of reverse repurchase agreements outstanding was $18,745,478 and the daily weighted average interest rate was 4.39%. At October 31, 2024, the Fund had reverse repurchase agreements outstanding in the amount of $20,252,878 as reported on the statement of assets and liabilities.
| | |
| |
| abfunds.com | | AB INCOME FUND | 63 |
NOTES TO FINANCIAL STATEMENTS (continued)
The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2024:
| | | | | | | | | | | | |
Counterparty | | RVP
Liabilities
Subject to a
MRA | | | Securities
Collateral
Pledged†* | | | Net Amount
of RVP
Liabilities | |
HSBC Securities (USA), Inc. | | $ | 12,352,499 | | | $ | (12,170,580 | ) | | $ | 181,919 | |
Jefferies LLC | | | 4,142,633 | | | | (4,142,633 | ) | | | – 0 | – |
Nomura UK | | | 3,757,746 | | | | (3,644,881 | ) | | | 112,865 | |
| | | | | | | | | | | | |
Total | | $ | 20,252,878 | | | $ | (19,958,094 | ) | | $ | 294,784 | |
| | | | | | | | | | | | |
| † | Including accrued interest. |
| * | The actual collateral pledged may be more than the amount reported due to overcollateralization. |
NOTE E
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 3,408,640 | | | | 5,375,800 | | | | | | | $ | 21,914,241 | | | $ | 34,188,667 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 679,162 | | | | 788,190 | | | | | | | | 4,345,765 | | | | 5,039,591 | | | | | |
| | | | | |
Shares converted from Class C | | | 801,475 | | | | 778,379 | | | | | | | | 5,125,116 | | | | 4,907,291 | | | | | |
| | | | | |
Shares redeemed | | | (7,204,997 | ) | | | (11,739,591 | ) | | | | | | | (45,970,707 | ) | | | (74,338,740 | ) | | | | |
| | | | | |
Net decrease | | | (2,315,720 | ) | | | (4,797,222 | ) | | | | | | $ | (14,585,585 | ) | | $ | (30,203,191 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,518,113 | | | | 1,415,028 | | | | | | | $ | 9,786,895 | | | $ | 9,121,503 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 344,130 | | | | 420,906 | | | | | | | | 2,204,980 | | | | 2,696,794 | | | | | |
| | | | | |
Shares converted to Class A | | | (800,319 | ) | | | (777,719 | ) | | | | | | | (5,125,116 | ) | | | (4,907,291 | ) | | | | |
| | | | | |
Shares redeemed | | | (3,188,371 | ) | | | (5,219,417 | ) | | | | | | | (20,367,778 | ) | | | (33,362,726 | ) | | | | |
| | | | | |
Net decrease | | | (2,126,447 | ) | | | (4,161,202 | ) | | | | | | $ | (13,501,019 | ) | | $ | (26,451,720 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 128,466,875 | | | | 124,730,756 | | | | | | | $ | 823,329,350 | | | $ | 800,267,067 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 13,353,017 | | | | 12,237,569 | | | | | | | | 85,558,562 | | | | 78,257,364 | | | | | |
| | | | | |
Shares redeemed | | | (143,652,624 | ) | | | (152,016,152 | ) | | | | | | | (917,813,910 | ) | | | (973,162,989 | ) | | | | |
| | | | | |
Net decrease | | | (1,832,732 | ) | | | (15,047,827 | ) | | | | | | $ | (8,925,998 | ) | | $ | (94,638,558 | ) | | | | |
| | | | | |
| | |
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64 | AB INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class Z | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 999,232 | | | | 1,082,163 | | | | | | | $ | 6,307,515 | | | $ | 6,936,690 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 100,708 | | | | 151,270 | | | | | | | | 645,244 | | | | 967,293 | | | | | |
| | | | | |
Shares redeemed | | | (2,280,291 | ) | | | (1,484,578 | ) | | | | | | | (14,638,599 | ) | | | (9,511,879 | ) | | | | |
| | | | | |
Net decrease | | | (1,180,351 | ) | | | (251,145 | ) | | | | | | $ | (7,685,840) | | | $ | (1,607,896 | ) | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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.
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
| | |
| |
| abfunds.com | | AB INCOME FUND | 65 |
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 effects of potential central bank monetary policy, and government fiscal policy, initiatives and 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 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 become difficult to purchase or sell. Difficulty in selling such
| | |
| |
66 | AB INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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, reference rate or index, 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.
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
| | |
| |
| abfunds.com | | AB INCOME FUND | 67 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended October 31, 2024 and October 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 136,136,615 | | | $ | 109,459,669 | |
| | | | | | | | |
Total taxable distributions paid | | $ | 136,136,615 | | | $ | 109,459,669 | |
Return of Capital | | | 0 | | | | 22,008,796 | |
| | | | | | | | |
Total distributions paid | | $ | 136,136,615 | | | $ | 131,468,465 | |
| | | | | | | | |
As of October 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Accumulated capital and other losses | | $ | (740,730,113 | )(a) |
Unrealized appreciation (depreciation) | | | (39,642,026 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (780,372,139 | )(c) |
| | | | |
| (a) | As of October 31, 2024, the Fund had a net capital loss carryforward of $737,334,616. During the fiscal year, the Fund utilized $51,271,983 of capital loss carry forwards to offset current year net realized gains. As of October 31, 2024, the cumulative deferred loss on straddles was $3,395,497. |
| (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 tax treatment of defaulted securities, the accrual of foreign capital gains tax, and dividends payable. |
For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as
| | |
| |
68 | AB INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
either short-term or long-term capital losses. As of October 31, 2024, the Fund had a net short-term capital loss carryforward of $188,828,393 and a net long-term capital loss carryforward of $548,506,223, which may be carried forward for an indefinite period.
During the current fiscal year, permanent differences primarily due to taxable overdistributions resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.
NOTE I
Recent Accounting Pronouncements
In 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.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
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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| abfunds.com | | AB INCOME FUND | 69 |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.00 | | | | $ 6.19 | | | | $ 7.89 | | | | $ 7.96 | | | | $ 7.98 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .32 | | | | .28 | | | | .23 | | | | .24 | | | | .26 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .41 | | | | (.16 | ) | | | (1.69 | ) | | | (.04 | ) | | | .02 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .73 | | | | .12 | | | | (1.46 | ) | | | .20 | | | | .28 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.33 | ) | | | (.26 | ) | | | (.24 | ) | | | (.27 | ) | | | (.30 | ) |
| | | | | |
Return of capital | | | – 0 | – | | | (.05 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.33 | ) | | | (.31 | ) | | | (.24 | ) | | | (.27 | ) | | | (.30 | ) |
| | | | |
Net asset value, end of period | | | $ 6.40 | | | | $ 6.00 | | | | $ 6.19 | | | | $ 7.89 | | | | $ 7.96 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(e)* | | | 12.24 | % | | | 1.76 | % | | | (18.83 | )% | | | 2.48 | % | | | 3.55 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $119,623 | | | | $126,078 | | | | $159,887 | | | | $265,990 | | | | $289,619 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .80 | % | | | 1.81 | % | | | 1.04 | % | | | .79 | % | | | .78 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .85 | % | | | 1.86 | % | | | 1.08 | % | | | .80 | % | | | .80 | % |
| | | | | |
Net investment income(b) | | | 4.95 | % | | | 4.30 | % | | | 3.15 | % | | | 3.04 | % | | | 3.24 | % |
| | | | | |
Portfolio turnover rate** | | | 278 | % | | | 231 | % | | | 167 | % | | | 166 | % | | | 246 | % |
See footnote summary on page 74.
| | |
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70 | AB INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | | | | $ 7.99 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .27 | | | | .23 | | | | .17 | | | | .18 | | | | .20 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .41 | | | | (.16 | ) | | | (1.68 | ) | | | (.04 | ) | | | .02 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .68 | | | | .07 | | | | (1.51 | ) | | | .14 | | | | .22 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.28 | ) | | | (.22 | ) | | | (.19 | ) | | | (.21 | ) | | | (.24 | ) |
| | | | | |
Return of capital | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.28 | ) | | | (.26 | ) | | | (.19 | ) | | | (.21 | ) | | | (.24 | ) |
| | | | |
Net asset value, end of period | | | $ 6.41 | | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(e)* | | | 11.38 | % | | | 1.00 | % | | | (19.41 | )% | | | 1.71 | % | | | 2.77 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $77,464 | | | | $85,418 | | | | $113,982 | | | | $194,363 | | | | $217,968 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | 1.55 | % | | | 2.54 | % | | | 1.79 | % | | | 1.54 | % | | | 1.53 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | 1.60 | % | | | 2.60 | % | | | 1.82 | % | | | 1.55 | % | | | 1.55 | % |
| | | | | |
Net investment income(b) | | | 4.19 | % | | | 3.57 | % | | | 2.39 | % | | | 2.29 | % | | | 2.49 | % |
| | | | | |
Portfolio turnover rate** | | | 278 | % | | | 231 | % | | | 167 | % | | | 166 | % | | | 246 | % |
See footnote summary on page 74.
| | |
| |
| abfunds.com | | AB INCOME FUND | 71 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | | | | $ 7.99 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .33 | | | | .29 | | | | .24 | | | | .26 | | | | .27 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .40 | | | | (.15 | ) | | | (1.68 | ) | | | (.04 | ) | | | .03 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .73 | | | | .14 | | | | (1.44 | ) | | | .22 | | | | .30 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.34 | ) | | | (.27 | ) | | | (.26 | ) | | | (.29 | ) | | | (.32 | ) |
| | | | | |
Return of capital | | | – 0 | – | | | (.06 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.34 | ) | | | (.33 | ) | | | (.26 | ) | | | (.29 | ) | | | (.32 | ) |
| | | | |
Net asset value, end of period | | | $ 6.40 | | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value(e)* | | | 12.33 | % | | | 2.02 | % | | | (18.60 | )% | | | 2.73 | % | | | 3.80 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000,000’s omitted) | | | $2,304 | | | | $2,172 | | | | $2,334 | | | | $4,152 | | | | $4,097 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .55 | % | | | 1.55 | % | | | .79 | % | | | .54 | % | | | .53 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .60 | % | | | 1.61 | % | | | .82 | % | | | .55 | % | | | .55 | % |
| | | | | |
Net investment income(b) | | | 5.19 | % | | | 4.54 | % | | | 3.38 | % | | | 3.28 | % | | | 3.48 | % |
| | | | | |
Portfolio turnover rate** | | | 278 | % | | | 231 | % | | | 167 | % | | | 166 | % | | | 246 | % |
See footnote summary on page 74.
| | |
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72 | AB INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Year Ended October 31, | | | November 20, 2019(g) to October 31, 2020 | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | | | | $ 7.97 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .33 | | | | .29 | | | | .25 | | | | .27 | | | | .27 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .41 | | | | (.15 | ) | | | (1.69 | ) | | | (.05 | ) | | | .03 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .74 | | | | .14 | | | | (1.44 | ) | | | .22 | | | | .30 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.34 | ) | | | (.27 | ) | | | (.26 | ) | | | (.29 | ) | | | (.30 | ) |
| | | | | |
Return of capital | | | – 0 | – | | | (.06 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total distributions | | | (.34 | ) | | | (.33 | ) | | | (.26 | ) | | | (.29 | ) | | | (.30 | ) |
| | | | |
Net asset value, end of period | | | $ 6.41 | | | | $ 6.01 | | | | $ 6.20 | | | | $ 7.90 | | | | $ 7.97 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(e)* | | | 12.51 | % | | | 2.02 | % | | | (18.57 | )% | | | 2.78 | % | | | 3.89 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $12,562 | | | | $18,861 | | | | $21,026 | | | | $30,118 | | | | $18,492 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/ reimbursements(f) | | | .54 | % | | | 1.55 | % | | | .78 | % | | | .49 | % | | | .48 | %^ |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .54 | % | | | 1.55 | % | | | .78 | % | | | .49 | % | | | .48 | %^ |
| | | | | |
Net investment income(b) | | | 5.18 | % | | | 4.56 | % | | | 3.44 | % | | | 3.32 | % | | | 3.49 | %^ |
| | | | | |
Portfolio turnover rate** | | | 278 | % | | | 231 | % | | | 167 | % | | | 166 | % | | | 246 | % |
See footnote summary on page 74.
| | |
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| abfunds.com | | AB INCOME FUND | 73 |
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 fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized. |
| (f) | The expense ratios, excluding interest expense are: |
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net of waivers/reimbursements | | | .77 | % | | | .77 | % | | | .77 | % | | | .77 | % | | | .77 | % |
| | | | | |
Before waivers/reimbursements | | | .82 | % | | | .83 | % | | | .80 | % | | | .78 | % | | | .79 | % |
Class C | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net of waivers/reimbursements | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % |
| | | | | |
Before waivers/reimbursements | | | 1.57 | % | | | 1.58 | % | | | 1.55 | % | | | 1.53 | % | | | 1.54 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net of waivers/reimbursements | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % |
| | | | | |
Before waivers/reimbursements | | | .57 | % | | | .58 | % | | | .55 | % | | | .53 | % | | | .54 | % |
Class Z | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net of waivers/reimbursements | | | .51 | % | | | .51 | % | | | .49 | % | | | .47 | % | | | .46 | %^ |
| | | | | |
Before waivers/reimbursements | | | .51 | % | | | .52 | % | | | .49 | % | | | .47 | % | | | .46 | %^ |
| (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. |
See notes to financial statements.
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74 | AB INCOME FUND | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of AB Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Income Fund (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included
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| abfunds.com | | AB INCOME FUND | 75 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
confirmation of securities owned as of October 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of the AB investment companies since 1968.
New York, New York
December 27, 2024
| | |
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76 | AB INCOME FUND | | abfunds.com |
2024 FEDERAL TAX INFORMATION
(unaudited)
For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2024. For foreign shareholders, 71.58% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.
Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2025.
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| abfunds.com | | AB INCOME FUND | 77 |
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 July 30-31, 2024 (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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78 | AB INCOME FUND | | abfunds.com |
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 2022 and 2023 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
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| abfunds.com | | AB INCOME FUND | 79 |
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 Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5-and 10-year periods ended May 31, 2024 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 noted the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.
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80 | AB INCOME FUND | | abfunds.com |
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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year and reflected the impact of 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 explanation 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 and that the Fund’s net assets were at the first breakpoint level. Accordingly, the Fund’s current effective advisory fee rate would be reduced if the net assets of the Fund increase in the future. 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 increase in the future.
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| abfunds.com | | AB INCOME FUND | 81 |
NOTES
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82 | AB INCOME FUND | | abfunds.com |
NOTES
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| abfunds.com | | AB INCOME FUND | 83 |
NOTES
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84 | AB INCOME FUND | | abfunds.com |
AB INCOME FUND
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
IF-0151-1024 
OCT 10.31.24
ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
MUNICIPAL OBLIGATIONS – 96.5% | |
Long-Term Municipal Bonds – 94.1% | |
Alabama – 4.1% | |
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 | | | $ | 3,940,526 | |
Black Belt Energy Gas District
(Goldman Sachs Group, Inc. (The))
Series 2023-A
5.25%, 01/01/2054 | | | 1,830 | | | | 1,969,710 | |
Series 2023-D
5.086% (SOFR + 1.85%), 06/01/2049(a) | | | 2,500 | | | | 2,570,103 | |
Black Belt Energy Gas District
(Pacific Mutual Holding Co.)
Series 2024-C
5.00%, 05/01/2055 | | | 1,100 | | | | 1,174,246 | |
Black Belt Energy Gas District
(Royal Bank of Canada)
Series 2021
4.00%, 06/01/2051 | | | 16,155 | | | | 16,349,540 | |
Series 2022-D
4.00%, 07/01/2052 | | | 2,555 | | | | 2,582,317 | |
Infirmary Health System Special Care
Facilities Financing Authority of Mobile
(Infirmary Health System Obligated Group)
Series 2016
5.00%, 02/01/2025 | | | 2,110 | | | | 2,115,041 | |
Series 2021
4.00%, 02/01/2039 | | | 1,675 | | | | 1,603,473 | |
Southeast Alabama Gas Supply District (The)
(Pacific Mutual Holding Co.)
Series 2024-A
5.00%, 08/01/2054 | | | 2,000 | | | | 2,140,965 | |
Southeast Energy Authority A Cooperative
District
(Goldman Sachs Group, Inc. (The))
Series 2022-B
5.00%, 05/01/2053 | | | 1,000 | | | | 1,043,263 | |
Southeast Energy Authority A Cooperative
District
(Morgan Stanley)
Series 2021-B
4.00%, 12/01/2051 | | | 18,485 | | | | 18,491,237 | |
| | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Southeast Energy Authority A Cooperative District
(Royal Bank of Canada)
Series 2023-B
5.00%, 01/01/2054 | | $ | 2,000 | | | $ | 2,122,117 | |
Southeast Energy Authority A Cooperative District
(Sumitomo Mitsui Financial Group, Inc.)
Series 2023-A
5.25%, 01/01/2054 | | | 3,000 | | | | 3,174,928 | |
| | | | | | | | |
| | | | | | | 59,277,466 | |
| | | | | | | | |
Alaska – 0.3% | |
Alaska Housing Finance Corp.
(Pre-refunded – Others)
Series 2023
4.39%, 07/01/2026(b) | | | 4,000 | | | | 4,014,015 | |
| | | | | | | | |
|
American Samoa – 0.1% | |
American Samoa Economic Development Authority
(Territory of American Samoa)
Series 2015-A
6.625%, 09/01/2035 | | | 1,335 | | | | 1,358,757 | |
Series 2018
6.50%, 09/01/2028(b) | | | 245 | | | | 256,254 | |
7.125%, 09/01/2038(b) | | | 280 | | | | 300,206 | |
| | | | | | | | |
| | | | | | | 1,915,217 | |
| | | | | | | | |
Arizona – 2.3% | |
Arizona Industrial Development Authority
(Equitable School Revolving Fund LLC Obligated Group)
Series 2020
4.00%, 11/01/2030 | | | 935 | | | | 962,708 | |
5.00%, 11/01/2031 | | | 800 | | | | 874,255 | |
5.00%, 11/01/2032 | | | 650 | | | | 708,724 | |
5.00%, 11/01/2033 | | | 900 | | | | 978,227 | |
Arizona Industrial Development Authority
(KIPP NYC Public Charter Schools)
Series 2021-B
4.00%, 07/01/2041 | | | 500 | | | | 468,302 | |
Arizona Industrial Development Authority
(Legacy Cares, Inc.)
Series 2020
6.50%, 07/01/2026(c)(d)(e) | | | 1,000 | | | | 40,000 | |
6.75%, 07/01/2030(c)(d)(e) | | | 1,000 | | | | 40,000 | |
| | |
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2 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Arizona Industrial Development Authority
(Phoenix Children’s Hospital Obligated Group)
Series 2021
4.00%, 02/01/2039 | | $ | 1,800 | | | $ | 1,810,485 | |
Chandler Industrial Development Authority
(Intel Corp.)
Series 2022
5.00%, 09/01/2052 | | | 5,000 | | | | 5,120,210 | |
Series 2024
4.00%, 06/01/2049 | | | 2,000 | | | | 2,000,445 | |
City of Glendale AZ
(City of Glendale AZ COP)
Series 2021
2.542%, 07/01/2033 | | | 4,000 | | | | 3,368,850 | |
City of Phoenix Civic Improvement Corp.
(Phoenix Sky Harbor International Airport)
Series 2018
5.00%, 07/01/2043 | | | 4,000 | | | | 4,084,509 | |
City of Tempe AZ
(City of Tempe AZ COP)
Series 2021
1.951%, 07/01/2031 | | | 2,400 | | | | 2,020,353 | |
Industrial Development Authority of the County of Pima (The)
(La Posada at Park Centre, Inc. Obligated Group)
Series 2022
5.125%, 11/15/2029(b) | | | 1,500 | | | | 1,512,126 | |
Maricopa County Industrial Development Authority
(HonorHealth Obligated Group)
Series 2024-D
5.00%, 12/01/2043 | | | 1,000 | | | | 1,085,397 | |
5.00%, 12/01/2044 | | | 1,000 | | | | 1,080,308 | |
State of Arizona Lottery Revenue
(Pre-refunded – US Treasuries)
Series 2019
5.00%, 07/01/2028 | | | 5,000 | | | | 5,357,588 | |
Yuma Industrial Development Authority
Series 2024
5.00%, 08/01/2041 | | | 1,600 | | | | 1,740,842 | |
| | | | | | | | |
| | | | | | | 33,253,329 | |
| | | | | | | | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Arkansas – 0.1% | |
Arkansas Development Finance Authority
(Hybar LLC)
Series 2024
7.375%, 07/01/2048(b) | | $ | 1,000 | | | $ | 1,114,217 | |
City of Fayetteville AR Sales & Use Tax Revenue
Series 2022
2.875%, 11/01/2032 | | | 1,000 | | | | 956,764 | |
| | | | | | | | |
| | | | | | | 2,070,981 | |
| | | | | | | | |
California – 7.8% | |
Align Affordable Housing Bond Fund LP
(Park Landing LP)
Series 2022-2
5.66%, 08/01/2052 | | | 2,000 | | | | 1,996,370 | |
Align Affordable Housing Bond Fund LP
(SHI – Lake Worth LLC)
Series 2021
3.25%, 12/01/2051(b) | | | 2,500 | | | | 2,253,126 | |
ARC70 II TRUST
Series 2023
4.84%, 04/01/2065(e)(f) | | | 4,762 | | | | 4,463,186 | |
California Community Choice Financing Authority
Series 2024
5.00%, 02/01/2055(g) | | | 2,315 | | | | 2,495,937 | |
5.00%, 08/01/2055 | | | 1,000 | | | | 1,071,498 | |
California Community Choice Financing Authority
(American International Group, Inc.)
Series 2023-D
5.50%, 05/01/2054 | | | 2,000 | | | | 2,137,759 | |
California Community Choice Financing Authority
(Deutsche Bank AG)
Series 2023
5.25%, 01/01/2054 | | | 4,925 | | | | 5,287,792 | |
California Community Choice Financing Authority
(Goldman Sachs Group, Inc. (The))
Series 2023
5.25%, 11/01/2054 | | | 1,125 | | | | 1,214,621 | |
California Community Housing Agency
(California Community Housing Agency Brio Apartments & Next on Lex Apartments)
Series 2021-A
4.00%, 08/01/2047(b) | | | 3,315 | | | | 2,720,857 | |
| | |
| |
4 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
California Community Housing Agency
(California Community Housing Agency Fountains at Emerald Park)
Series 2021
4.00%, 08/01/2046(b) | | $ | 985 | | | $ | 844,232 | |
California Housing Finance Agency
Series 2021-1, Class A
3.50%, 11/20/2035 | | | 945 | | | | 906,485 | |
Series 2021-2, Class A
3.75%, 03/25/2035 | | | 4,794 | | | | 4,718,178 | |
Series 2021-2, Class X
0.82%, 03/25/2035(h) | | | 2,397 | | | | 105,401 | |
Series 2021-3, Class A
3.25%, 08/20/2036 | | | 1,909 | | | | 1,771,991 | |
California Infrastructure & Economic Development Bank
(DesertXpress Enterprises LLC)
Series 2024
8.00%, 01/01/2050(b) | | | 1,000 | | | | 1,030,499 | |
California Pollution Control Financing Authority
(Rialto Bioenergy Facility LLC)
Series 2019
7.50%, 12/01/2040(c)(d)(e)(i) | | | 250 | | | | 25 | |
California State University
Series 2021-B
2.374%, 11/01/2035 | | | 1,000 | | | | 788,119 | |
City of Los Angeles CA
Series 2024
5.00%, 06/26/2025 | | | 6,000 | | | | 6,074,547 | |
City of Los Angeles Department of Airports
Series 2021
5.00%, 05/15/2035 | | | 4,000 | | | | 4,284,830 | |
Series 2022
5.00%, 05/15/2028 | | | 4,000 | | | | 4,225,070 | |
County of Los Angeles CA
Series 2024
5.00%, 06/30/2025 | | | 1,000 | | | | 1,012,507 | |
CSCDA Community Improvement Authority
(CSCDA Community Improvement Authority Acacia on Santa Rosa Creek)
Series 2021
4.00%, 10/01/2046(b) | | | 2,000 | | | | 1,598,599 | |
CSCDA Community Improvement Authority
(CSCDA Community Improvement Authority Millennium South Bay-Hawthorne)
Series 2021
3.375%, 07/01/2043(b) | | | 3,200 | | | | 2,696,588 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CSCDA Community Improvement Authority
(CSCDA Community Improvement Authority Theo Apartments)
Series 2021
3.50%, 05/01/2047(b) | | $ | 2,300 | | | $ | 1,935,096 | |
CSCDA Community Improvement Authority
(CSCDA Community Improvement Authority Vineyard Gardens Apartments)
Series 2021
4.00%, 10/01/2048(b) | | | 2,000 | | | | 1,494,558 | |
Los Angeles Unified School District/CA
Series 2024-A
5.00%, 07/01/2031 | | | 6,500 | | | | 7,473,347 | |
Sacramento County Water Financing Authority
(Sacramento County Water Agency)
NATL Series 2007-B
4.106% (CME Term SOFR 3 Month + 0.57%), 06/01/2039(a) | | | 5,000 | | | | 4,533,281 | |
San Francisco Intl Airport
Series 2019-H
5.00%, 05/01/2025 | | | 5,480 | | | | 5,509,299 | |
Series 2023-E
5.50%, 05/01/2040 | | | 5,000 | | | | 5,582,572 | |
Series 2024
5.00%, 05/01/2036 | | | 5,960 | | | | 6,480,050 | |
5.00%, 05/01/2037 | | | 2,000 | | | | 2,167,041 | |
5.00%, 05/01/2039 | | | 4,975 | | | | 5,340,146 | |
5.25%, 05/01/2044 | | | 3,380 | | | | 3,647,483 | |
Southern California Public Power Authority
(American International Group, Inc.)
Series 2024-A
5.00%, 04/01/2055 | | | 1,400 | | | | 1,488,018 | |
State of California
Series 2023
5.00%, 09/01/2037 | | | 10,000 | | | | 11,308,316 | |
5.10%, 03/01/2029 | | | 1,200 | | | | 1,230,254 | |
| | | | | | | | |
| | | | | | | 111,887,678 | |
| | | | | | | | |
Colorado – 4.0% | |
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 | | | | 2,694,168 | |
| | |
| |
6 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
City & County of Denver CO Airport System Revenue
Series 2022-A
5.00%, 11/15/2031 | | $ | 7,910 | | | $ | 8,533,988 | |
5.00%, 11/15/2033 | | | 10,000 | | | | 10,777,963 | |
City & County of Denver CO Airport System Revenue
(Denver Intl Airport)
Series 2018-A
5.00%, 12/01/2028 | | | 2,090 | | | | 2,204,433 | |
Colorado Health Facilities Authority
(AdventHealth Obligated Group)
Series 2021
5.00%, 11/15/2041 | | | 2,600 | | | | 2,793,837 | |
Series 2023
5.00%, 11/15/2058 | | | 5,280 | | | | 5,646,630 | |
Colorado Health Facilities Authority
(CommonSpirit Health)
Series 2019-A
5.00%, 08/01/2030 | | | 1,015 | | | | 1,091,004 | |
5.00%, 08/01/2032 | | | 640 | | | | 680,658 | |
5.00%, 08/01/2033 | | | 750 | | | | 796,909 | |
Colorado Health Facilities Authority
(Intermountain Healthcare Obligated Group)
Series 2019-B
4.00%, 01/01/2040 | | | 1,445 | | | | 1,444,645 | |
Colorado Health Facilities Authority
(Sanford Obligated Group)
Series 2019-A
5.00%, 11/01/2033 | | | 1,525 | | | | 1,639,789 | |
Colorado State Education Loan Program
Series 2024-A
5.00%, 06/30/2025 | | | 7,000 | | | | 7,081,694 | |
E-470 Public Highway Authority
Series 2024-B
3.979% (SOFR + 0.75%), 09/01/2039(a) | | | 2,000 | | | | 1,999,629 | |
Johnstown Plaza Metropolitan District
Series 2022
4.25%, 12/01/2046 | | | 1,826 | | | | 1,636,537 | |
Platte River Metropolitan District
Series 2023-A
6.50%, 08/01/2053(b) | | | 306 | | | | 316,208 | |
State of Colorado
(State of Colorado COP)
Series 2022
6.00%, 12/15/2041 | | | 6,000 | | | | 7,037,684 | |
| | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Sterling Ranch Community Authority Board
(Sterling Ranch Metropolitan District No. 3)
Series 2022
6.50%, 12/01/2042 | | $ | 1,000 | | | $ | 1,063,190 | |
Vauxmont Metropolitan District
AGM Series 2019
5.00%, 12/15/2024 | | | 260 | | | | 260,365 | |
| | | | | | | | |
| | | | | | | 57,699,331 | |
| | | | | | | | |
Connecticut – 2.6% | |
City of New Haven CT
Series 2018-A
5.50%, 08/01/2035 | | | 1,920 | | | | 2,027,047 | |
Connecticut State Health & Educational Facilities Authority
(Stamford Hospital Obligated Group (The))
Series 2022
4.00%, 07/01/2037 | | | 3,665 | | | | 3,664,016 | |
4.00%, 07/01/2040 | | | 1,500 | | | | 1,453,773 | |
Connecticut State Health & Educational Facilities Authority
(Yale University)
Series 2022
1.10%, 07/01/2049 | | | 8,000 | | | | 7,930,883 | |
Series 2023-A
2.80%, 07/01/2048 | | | 7,710 | | | | 7,660,753 | |
State of Connecticut
Series 2015-B
5.00%, 06/15/2028 | | | 2,840 | | | | 2,870,414 | |
Series 2016-A
5.00%, 03/15/2032 | | | 2,160 | | | | 2,205,982 | |
Series 2018-B
5.00%, 04/15/2028 | | | 1,440 | | | | 1,542,576 | |
State of Connecticut
(Pre-refunded – Others)
Series 2014-F
5.00%, 11/15/2026 | | | 1,275 | | | | 1,278,947 | |
State of Connecticut Special Tax Revenue
Series 2020
5.00%, 05/01/2038 | | | 3,040 | | | | 3,276,473 | |
Series 2023-A
5.25%, 07/01/2042 | | | 3,000 | | | | 3,386,571 | |
| | | | | | | | |
| | | | | | | 37,297,435 | |
| | | | | | | | |
| | |
| |
8 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
District of Columbia – 2.8% | |
District of Columbia
(District of Columbia International School Obligated Group)
Series 2019
5.00%, 07/01/2039 | | $ | 2,400 | | | $ | 2,470,509 | |
District of Columbia
(Plenary Infrastructure DC LLC State Lease)
Series 2022
5.00%, 08/31/2029 | | | 4,765 | | | | 5,061,964 | |
5.00%, 08/31/2030 | | | 5,025 | | | | 5,373,582 | |
5.00%, 02/29/2032 | | | 5,475 | | | | 5,907,263 | |
District of Columbia Income Tax Revenue
Series 2022-A
5.00%, 07/01/2042 | | | 5,795 | | | | 6,306,411 | |
Series 2024-A
5.00%, 10/01/2035 | | | 3,750 | | | | 4,307,246 | |
Metropolitan Washington Airports Authority Aviation Revenue
Series 2018-A
5.00%, 10/01/2026 | | | 3,065 | | | | 3,158,218 | |
Series 2024-A
5.00%, 10/01/2034 | | | 2,000 | | | | 2,162,156 | |
5.00%, 10/01/2042 | | | 1,000 | | | | 1,050,941 | |
5.25%, 10/01/2041 | | | 2,000 | | | | 2,179,543 | |
Washington Metropolitan Area Transit Authority Dedicated Revenue
(Washington Metropolitan Area Transit Authority Dedicated Revenue Lease)
Series 2023
5.00%, 07/15/2040 | | | 2,540 | | | | 2,793,879 | |
| | | | | | | | |
| | | | | | | 40,771,712 | |
| | | | | | | | |
Florida – 4.1% | |
City of Palmetto FL
(Renaissance Arts and Education, Inc.)
Series 2022
5.125%, 06/01/2042 | | | 2,400 | | | | 2,452,889 | |
County of Broward FL Airport System Revenue
Series 2019-C
2.384%, 10/01/2026 | | | 2,600 | | | | 2,501,214 | |
County of Miami-Dade FL
(County of Miami-Dade FL Non-Ad Valorem)
Series 2015-A
5.00%, 06/01/2026 | | | 2,885 | | | | 2,910,022 | |
5.00%, 06/01/2027 | | | 4,515 | | | | 4,556,801 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
County of Miami-Dade FL Aviation Revenue
Series 2024-A
5.00%, 10/01/2034 | | $ | 3,130 | | | $ | 3,375,110 | |
5.00%, 10/01/2036 | | | 4,970 | | | | 5,317,987 | |
County of Miami-Dade Seaport Department
Series 2023-A
5.00%, 10/01/2036 | | | 1,715 | | | | 1,861,738 | |
5.00%, 10/01/2038 | | | 2,835 | | | | 3,059,012 | |
County of Osceola FL Transportation Revenue
Series 2020-A
Zero Coupon, 10/01/2030 | | | 115 | | | | 90,178 | |
Zero Coupon, 10/01/2031 | | | 140 | | | | 105,199 | |
Zero Coupon, 10/01/2032 | | | 100 | | | | 72,065 | |
Zero Coupon, 10/01/2033 | | | 115 | | | | 79,363 | |
Zero Coupon, 10/01/2034 | | | 125 | | | | 82,615 | |
County of Palm Beach FL Airport System Revenue
Series 2024-B
5.25%, 10/01/2040(g) | | | 1,710 | | | | 1,879,417 | |
5.25%, 10/01/2041(g) | | | 1,750 | | | | 1,913,994 | |
5.25%, 10/01/2042(g) | | | 1,100 | | | | 1,197,932 | |
County of Pasco FL
(H Lee Moffitt Cancer Center & Research Institute Obligated Group)
Series 2023
5.00%, 07/01/2030(b) | | | 8,000 | | | | 8,687,512 | |
Florida Municipal Power Agency
(Florida Municipal Power Agency All-Requirements Power Supply Project Revenue)
Series 2021
1.425%, 10/01/2026 | | | 500 | | | | 472,467 | |
Florida State Board of Governors
(Florida State University Athletics Association, Inc.)
BAM Series 2024-A
5.00%, 10/01/2042 | | | 4,500 | | | | 4,941,676 | |
Hillsborough County Aviation Authority
Series 2024
5.25%, 10/01/2043 | | | 2,000 | | | | 2,180,964 | |
Hillsborough County Industrial Development Authority
(BayCare Obligated Group)
Series 2024
5.00%, 11/15/2034 | | | 1,000 | | | | 1,135,068 | |
| | |
| |
10 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Jacksonville Transportation Authority
Series 2025
5.00%, 08/01/2027(g) | | $ | 1,000 | | | $ | 1,040,609 | |
Miami-Dade County Educational Facilities Authority
Series 2024-A
5.00%, 04/01/2045(g) | | | 1,700 | | | | 1,826,856 | |
Series 2025-B
5.25%, 04/01/2040(g) | | | 1,000 | | | | 1,112,390 | |
Orange County Health Facilities Authority
(Presbyterian Retirement Communities, Inc. Obligated Group)
Series 2023
4.00%, 08/01/2036 | | | 1,000 | | | | 997,920 | |
Polk County Industrial Development Authority/FL
(Mineral Development LLC)
Series 2020
5.875%, 01/01/2033(b) | | | 950 | | | | 847,304 | |
School District of Broward County/FL
Series 2024
4.00%, 01/29/2025 | | | 2,000 | | | | 2,002,716 | |
Village Community Development District No. 14
(Village Community Development District No. 14 Series 2022 Phase I Special Asmnts)
Series 2022
5.50%, 05/01/2053 | | | 2,640 | | | | 2,743,468 | |
| | | | | | | | |
| | | | | | | 59,444,486 | |
| | | | | | | | |
Georgia – 3.2% | |
Augusta Development Authority
(WellStar Health System Obligated Group)
Series 2018
5.00%, 07/01/2034 | | | 4,490 | | | | 4,711,549 | |
City of Atlanta GA Department of Aviation
Series 2022-B
5.00%, 07/01/2038 | | | 3,440 | | | | 3,643,628 | |
5.00%, 07/01/2042 | | | 6,830 | | | | 7,136,558 | |
Cobb County Kennestone Hospital Authority
(WellStar Health System Obligated Group)
Series 2021
5.00%, 04/01/2025 | | | 1,650 | | | | 1,660,292 | |
Main Street Natural Gas, Inc.
(Citigroup, Inc.)
Series 2022-A
4.00%, 09/01/2052 | | | 2,075 | | | | 2,097,592 | |
Series 2024-C
5.00%, 12/01/2054 | | | 4,000 | | | | 4,262,325 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Main Street Natural Gas, Inc.
(Pre-refunded – Others)
Series 2019-B
4.00%, 08/01/2049 | | $ | 2,000 | | | $ | 2,000,732 | |
Main Street Natural Gas, Inc.
(Royal Bank of Canada)
Series 2023-B
5.00%, 07/01/2053 | | | 8,000 | | | | 8,478,591 | |
Municipal Electric Authority of Georgia
Series 2024
5.00%, 01/01/2043 | | | 1,150 | | | | 1,237,829 | |
Private Colleges & Universities Authority
(Emory University)
Series 2023
5.00%, 09/01/2033(b) | | | 10,000 | | | | 11,193,973 | |
| | | | | | | | |
| | | | | | | 46,423,069 | |
| | | | | | | | |
Hawaii – 0.2% | |
City & County Honolulu HI Wastewater System Revenue
Series 2025
5.00%, 07/01/2038(g) | | | 2,000 | | | | 2,258,814 | |
| | | | | | | | |
|
Illinois – 6.6% | |
Chicago Board of Education
Series 2018-A
5.00%, 12/01/2027 | | | 1,200 | | | | 1,235,968 | |
Series 2019-B
5.00%, 12/01/2030 | | | 135 | | | | 139,847 | |
5.00%, 12/01/2031 | | | 265 | | | | 273,778 | |
5.00%, 12/01/2033 | | | 100 | | | | 102,651 | |
Series 2023
5.25%, 04/01/2033 | | | 1,375 | | | | 1,527,294 | |
5.25%, 04/01/2040 | | | 1,720 | | | | 1,850,031 | |
Chicago Housing Authority
Series 2018-A
5.00%, 01/01/2034 | | | 2,500 | | | | 2,596,611 | |
5.00%, 01/01/2037 | | | 5,260 | | | | 5,438,210 | |
5.00%, 01/01/2038 | | | 1,000 | | | | 1,031,887 | |
Chicago O’Hare International Airport
Series 2016-C
5.00%, 01/01/2033 | | | 5,000 | | | | 5,060,947 | |
Series 2022
4.00%, 01/01/2042 | | | 2,000 | | | | 1,983,839 | |
5.00%, 01/01/2028 | | | 680 | | | | 709,856 | |
5.00%, 01/01/2031 | | | 600 | | | | 640,079 | |
5.00%, 01/01/2042 | | | 3,850 | | | | 3,979,566 | |
Series 2024-A
5.00%, 01/01/2039 | | | 3,400 | | | | 3,588,803 | |
| | |
| |
12 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Chicago O’Hare International Airport
(Pre-refunded – US Treasuries)
Series 2015-B
5.00%, 01/01/2029 | | $ | 5,000 | | | $ | 5,011,751 | |
Illinois Finance Authority
(Illinois Institute of Technology)
Series 2019
5.00%, 09/01/2026 | | | 100 | | | | 99,816 | |
5.00%, 09/01/2027 | | | 100 | | | | 100,119 | |
5.00%, 09/01/2029 | | | 100 | | | | 100,371 | |
5.00%, 09/01/2033 | | | 200 | | | | 199,561 | |
5.00%, 09/01/2034 | | | 100 | | | | 99,304 | |
Illinois Finance Authority
(Pre-refunded – US Treasuries)
Series 2015
4.00%, 05/01/2044 | | | 1,500 | | | | 1,504,673 | |
Illinois Finance Authority
(Washington and Jane Smith
Community – Orland Park)
Series 2022
4.00%, 10/15/2040 | | | 9,375 | | | | 8,110,795 | |
Illinois Housing Development Authority
(Drexel Court & Lake Park East)
Series 2022
7.17%, 11/01/2038 | | | 125 | | | | 129,607 | |
Series 2024
5.67%, 11/01/2038(e) | | | 1,190 | | | | 1,187,236 | |
Illinois State Toll Highway Authority
Series 2021-A
5.00%, 01/01/2041 | | | 14,805 | | | | 16,064,258 | |
5.00%, 01/01/2043 | | | 6,700 | | | | 7,205,224 | |
State of Illinois
Series 2014
5.25%, 02/01/2032 | | | 2,305 | | | | 2,312,768 | |
Series 2016
5.00%, 11/01/2024 | | | 4,325 | | | | 4,325,000 | |
Series 2022-A
5.50%, 03/01/2042 | | | 2,945 | | | | 3,218,125 | |
Series 2022-B
5.25%, 10/01/2037 | | | 3,000 | | | | 3,295,542 | |
Series 2024
5.00%, 02/01/2026 | | | 1,500 | | | | 1,528,952 | |
Series 2024-B
5.00%, 05/01/2038 | | | 1,000 | | | | 1,091,349 | |
5.00%, 05/01/2041 | | | 1,400 | | | | 1,506,734 | |
5.25%, 05/01/2043 | | | 3,000 | | | | 3,259,579 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
State of Illinois
(Pre-refunded – US Treasuries)
Series 2014
5.00%, 05/01/2030 | | $ | 3,810 | | | $ | 3,821,320 | |
| | | | | | | | |
| | | | | | | 94,331,451 | |
| | | | | | | | |
Indiana – 2.7% | |
City of Whiting IN
(BP PLC)
Series 2023
4.40%, 11/01/2045 | | | 5,000 | | | | 5,147,633 | |
Indiana Finance Authority
(Brightmark Plastics Renewal Indiana LLC)
Series 2019
7.00%, 03/01/2039(e) | | | 2,220 | | | | 1,040,689 | |
Indiana Finance Authority
(CWA Authority, Inc.)
Series 2024
5.00%, 10/01/2033 | | | 2,000 | | | | 2,282,848 | |
Indiana Finance Authority
(Duke Energy Indiana LLC)
Series 2022
3.75%, 03/01/2031 | | | 5,750 | | | | 5,765,135 | |
4.50%, 05/01/2035 | | | 7,555 | | | | 7,607,898 | |
Indiana Finance Authority
(Good Samaritan Hospital Obligated Group)
Series 2022
4.00%, 04/01/2035 | | | 1,210 | | | | 1,160,421 | |
Indiana Finance Authority
(Indiana University Health, Inc. Obligated Group)
Series 2021
0.70%, 12/01/2046 | | | 7,150 | | | | 6,906,296 | |
Indiana Finance Authority
(Ohio Valley Electric Corp.)
Series 2021-B
2.50%, 11/01/2030 | | | 495 | | | | 453,381 | |
Indiana Finance Authority
(Parkview Health System Obligated Group)
Series 2024-B
4.084% (SOFR + 0.71%), 11/01/2046(a)(e) | | | 1,965 | | | | 1,962,289 | |
Indiana Finance Authority
(University of Evansville)
Series 2022
5.25%, 09/01/2037 | | | 5,000 | | | | 5,188,654 | |
| | |
| |
14 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Indianapolis Local Public Improvement Bond Bank
Series 2023
5.00%, 02/01/2043 | | $ | 1,030 | | | $ | 1,116,635 | |
| | | | | | | | |
| | | | | | | 38,631,879 | |
| | | | | | | | |
Iowa – 1.6% | |
Iowa Finance Authority
Series 2022-E
4.181% (SOFR + 0.80%), 01/01/2052(a) | | | 8,000 | | | | 8,002,334 | |
Iowa Higher Education Loan Authority
(Simpson College)
Series 2020
5.25%, 11/01/2040 | | | 2,275 | | | | 2,185,501 | |
Iowa Tobacco Settlement Authority
Series 2021-A
4.00%, 06/01/2034 | | | 500 | | | | 509,527 | |
4.00%, 06/01/2035 | | | 515 | | | | 524,067 | |
4.00%, 06/01/2040 | | | 500 | | | | 498,129 | |
5.00%, 06/01/2031 | | | 900 | | | | 971,690 | |
PEFA, Inc.
(Goldman Sachs Group, Inc. (The))
Series 2019
5.00%, 09/01/2049 | | | 9,300 | | | | 9,513,680 | |
| | | | | | | | |
| | | | | | | 22,204,928 | |
| | | | | | | | |
Kansas – 0.1% | |
Kansas Development Finance Authority
(Pre-refunded – US Treasuries)
Series 2021
5.00%, 11/15/2054 | | | 720 | | | | 766,278 | |
| | | | | | | | |
|
Kentucky – 1.8% | |
City of Ashland KY
(Royal Blue Health LLC Obligated Group)
Series 2019
5.00%, 02/01/2026 | | | 180 | | | | 182,178 | |
5.00%, 02/01/2027 | | | 195 | | | | 200,605 | |
5.00%, 02/01/2030 | | | 125 | | | | 132,178 | |
5.00%, 02/01/2031 | | | 150 | | | | 155,308 | |
Kenton County Airport Board
Series 2024-A
5.25%, 01/01/2042 | | | 2,000 | | | | 2,166,925 | |
Kentucky Public Energy Authority
(Morgan Stanley)
Series 2018-C
3.945% (CPI + 1.05%), 12/01/2049(a) | | | 20,000 | | | | 19,928,954 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Kentucky State Property & Building Commission
(Commonwealth of Kentucky Lease)
Series 2024-B
5.00%, 11/01/2024 | | $ | 3,000 | | | $ | 3,000,000 | |
| | | | | | | | |
| | | | | | | 25,766,148 | |
| | | | | | | | |
Louisiana – 0.8% | |
City of New Orleans LA
Series 2024-A
5.00%, 12/01/2041 | | | 1,910 | | | | 2,081,621 | |
Jefferson Sales Tax District
AGM Series 2017-B
5.00%, 12/01/2034 | | | 1,800 | | | | 1,877,552 | |
Louisiana Local Government Environmental
Facilities & Community Development Auth
(LCDA 2023-ELL)
Series 2023-ELL, Class A1
5.081%, 06/01/2031 | | | 2,578 | | | | 2,603,660 | |
Parish of St. James LA
(NuStar Logistics LP)
Series 2020
5.85%, 08/01/2041(b) | | | 340 | | | | 343,603 | |
6.10%, 06/01/2038(b) | | | 455 | | | | 503,085 | |
6.10%, 12/01/2040(b) | | | 390 | | | | 432,310 | |
State of Louisiana Gasoline & Fuels Tax Revenue
Series 2022-A
3.874% (SOFR + 0.50%), 05/01/2043(a) | | | 4,015 | | | | 3,999,397 | |
| | | | | | | | |
| | | | | | | 11,841,228 | |
| | | | | | | | |
Maryland – 0.5% | |
Maryland Stadium Authority
Series 2024
5.00%, 06/01/2038 | | | 2,190 | | | | 2,461,554 | |
State of Maryland
Series 2017-B
5.00%, 08/01/2025 | | | 1,000 | | | | 1,014,505 | |
Series 2022-A
5.00%, 06/01/2035 | | | 1,000 | | | | 1,126,352 | |
State of Maryland Department of Transportation
Series 2017
5.00%, 05/01/2026 | | | 3,210 | | | | 3,239,593 | |
| | | | | | | | |
| | | | | | | 7,842,004 | |
| | | | | | | | |
Massachusetts – 1.4% | |
City of Quincy MA
Series 2024
5.00%, 07/25/2025 | | | 1,000 | | | | 1,014,520 | |
| | |
| |
16 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Commonwealth of Massachusetts
Series 2017-D
5.00%, 07/01/2025 | | $ | 3,000 | | | $ | 3,037,272 | |
Series 2024-A
5.00%, 01/01/2040 | | | 2,000 | | | | 2,235,608 | |
Series 2024-B
5.00%, 05/01/2043 | | | 2,000 | | | | 2,207,101 | |
Commonwealth of Massachusetts
(Commonwealth of Massachusetts COVID-19 Recovery Assessment Revenue)
Series 2022-B
4.11%, 07/15/2031 | | | 1,267 | | | | 1,241,941 | |
Massachusetts Development Finance Agency
(Tufts Medicine Obligated Group)
Series 2024
8.50%, 10/01/2026 | | | 1,000 | | | | 1,014,917 | |
Massachusetts Port Authority
Series 2019-A
5.00%, 07/01/2038 | | | 2,500 | | | | 2,602,005 | |
Series 2019-C
5.00%, 07/01/2039 | | | 3,050 | | | | 3,165,335 | |
Massachusetts Water Resources Authority
Series 2024-C
5.00%, 08/01/2040 | | | 2,810 | | | | 3,186,084 | |
| | | | | | | | |
| | | | | | | 19,704,783 | |
| | | | | | | | |
Michigan – 2.0% | |
City of Detroit MI
Series 2018
5.00%, 04/01/2035 | | | 750 | | | | 775,922 | |
5.00%, 04/01/2036 | | | 305 | | | | 315,058 | |
City of Detroit MI Sewage Disposal System Revenue
(Great Lakes Water Authority Sewage Disposal System Revenue)
AGM Series 2006-D
3.853% (CME Term SOFR 3 Month + 0.60%), 07/01/2032(a) | | | 2,605 | | | | 2,550,309 | |
Detroit Downtown Development Authority
(Detroit Downtown Development Authority Catalyst Development Area)
Series 2024
5.00%, 07/01/2048 | | | 1,125 | | | | 1,169,624 | |
Great Lakes Water Authority Sewage Disposal System Revenue
Series 2016-B
5.00%, 07/01/2025 | | | 2,120 | | | | 2,144,902 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Great Lakes Water Authority Water Supply System Revenue
Series 2016-C
5.00%, 07/01/2025 | | $ | 1,000 | | | $ | 1,011,746 | |
Michigan Finance Authority
Series 2024-A
5.00%, 08/20/2025 | | | 2,500 | | | | 2,531,650 | |
Michigan Finance Authority
(Bronson Health Care Group Obligated Group)
Series 2019
3.75%, 11/15/2049 | | | 11,080 | | | | 11,103,112 | |
Michigan Finance Authority
(City of Detroit MI)
Series 2016-C
5.00%, 04/01/2027 | | | 1,735 | | | | 1,796,117 | |
Michigan Finance Authority
(Corewell Health Obligated Group)
Series 2022
5.00%, 04/15/2025 | | | 3,000 | | | | 3,021,182 | |
Michigan Finance Authority
(Henry Ford Health System Obligated Group)
Series 2016
5.00%, 11/15/2031 | | | 1,785 | | | | 1,840,198 | |
Michigan Finance Authority
(Michigan Finance Authority Tobacco Settlement Revenue)
Series 2020-A
3.267%, 06/01/2039 | | | 1,000 | | | | 933,667 | |
| | | | | | | | |
| | | | | | | 29,193,487 | |
| | | | | | | | |
Minnesota – 0.7% | |
City of Brooklyn Park MN
(Brooklyn Park AH I LLLP)
Series 2023
6.205%, 01/01/2042(b)(j) | | | 1,500 | | | | 1,557,969 | |
City of St. Cloud MN
Series 2024
5.00%, 05/01/2041 | | | 1,000 | | | | 1,092,499 | |
Dakota County Community Development Agency
(Rosemont AH I LLLP)
Series 2023
5.30%, 07/01/2028(b) | | | 375 | | | | 374,712 | |
5.66%, 07/01/2041(b) | | | 1,000 | | | | 998,522 | |
| | |
| |
18 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Minneapolis-St. Paul Metropolitan Airports Commission
Series 2022-B
4.00%, 01/01/2038 | | $ | 4,250 | | | $ | 4,190,877 | |
5.00%, 01/01/2039 | | | 2,105 | | | | 2,206,695 | |
| | | | | | | | |
| | | | | | | 10,421,274 | |
| | | | | | | | |
Mississippi – 0.1% | |
Mississippi Development Bank
(Magnolia Regional Health Center)
Series 2021
5.00%, 10/01/2033(b) | | | 1,000 | | | | 1,010,719 | |
| | | | | | | | |
|
Missouri – 0.1% | |
Howard Bend Levee District
XLCA Series 2005
5.75%, 03/01/2025 | | | 135 | | | | 135,428 | |
5.75%, 03/01/2027 | | | 120 | | | | 124,097 | |
Lee’s Summit Industrial Development Authority
(John Knox Village Obligated Group)
Series 2016-A
5.00%, 08/15/2036 | | | 1,675 | | | | 1,683,925 | |
| | | | | | | | |
| | | | | | | 1,943,450 | |
| | | | | | | | |
Montana – 0.2% | |
Montana Facility Finance Authority
(Benefis Health System Obligated Group)
Series 2016
5.00%, 02/15/2031 | | | 1,925 | | | | 1,981,415 | |
5.00%, 02/15/2033 | | | 1,350 | | | | 1,386,213 | |
| | | | | | | | |
| | | | | | | 3,367,628 | |
| | | | | | | | |
Nebraska – 0.8% | |
Central Plains Energy Project
(Bank of Montreal)
Series 2023-A
5.00%, 05/01/2054 | | | 2,000 | | | | 2,109,917 | |
Central Plains Energy Project
(Royal Bank of Canada)
Series 2019
4.00%, 12/01/2049 | | | 6,115 | | | | 6,135,395 | |
Lincoln Airport Authority
Series 2021
4.00%, 07/01/2035 | | | 3,045 | | | | 3,005,296 | |
| | | | | | | | |
| | | | | | | 11,250,608 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 19 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Nevada – 1.2% | |
Las Vegas Valley Water District
Series 2022-A
4.00%, 06/01/2036 | | $ | 5,000 | | | $ | 5,112,975 | |
4.00%, 06/01/2037 | | | 6,350 | | | | 6,475,575 | |
Reno-Tahoe Airport Authority
Series 2024
5.00%, 07/01/2036 | | | 1,000 | | | | 1,075,297 | |
State of Nevada Department of Business & Industry
(DesertXpress Enterprises LLC)
Series 2024
8.125%, 01/01/2050 | | | 1,000 | | | | 1,030,497 | |
Tahoe-Douglas Visitors Authority
Series 2020
5.00%, 07/01/2029 | | | 2,625 | | | | 2,765,332 | |
5.00%, 07/01/2035 | | | 805 | | | | 837,507 | |
| | | | | | | | |
| | | | | | | 17,297,183 | |
| | | | | | | | |
New Hampshire – 1.6% | |
National Finance Authority
Series 2022-2, Class X
0.675%, 10/01/2036(h) | | | 4,864 | | | | 220,461 | |
New Hampshire Business Finance Authority
Series 2020-1, Class A
4.125%, 01/20/2034 | | | 1,441 | | | | 1,440,070 | |
Series 2022-1, Class A
4.375%, 09/20/2036 | | | 9,699 | | | | 9,676,006 | |
Series 2022-1, Class X
0.334%, 09/20/2036(h) | | | 8,244 | | | | 171,830 | |
Series 2022-2, Class A
4.00%, 10/20/2036 | | | 4,864 | | | | 4,705,898 | |
Series 2024
4.15%, 10/20/2040 | | | 2,000 | | | | 1,993,335 | |
5.00%, 12/01/2028(b)(g) | | | 1,000 | | | | 999,488 | |
5.125%, 12/15/2030 | | | 1,000 | | | | 988,278 | |
New Hampshire Business Finance Authority
(Bridgeland Water & Utility Districts 490, 491 & 158)
Series 2024
5.375%, 12/15/2035(b) | | | 1,000 | | | | 1,001,377 | |
New Hampshire Business Finance Authority
(Tamarron Project)
Series 2024
5.25%, 12/01/2035(b) | | | 1,000 | | | | 980,304 | |
| | | | | | | | |
| | | | | | | 22,177,047 | |
| | | | | | | | |
| | |
| |
20 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
New Jersey – 6.0% | |
Essex County Improvement Authority
(County of Essex NJ)
Series 2024
5.00%, 06/18/2025 | | $ | 2,000 | | | $ | 2,022,530 | |
Illinois Housing Development Authority
(FCR 2019-B)
Series 2019-B, Class 1
3.87%, 11/15/2035(b) | | | 12,227 | | | | 11,168,542 | |
New Jersey Economic Development Authority
(New Jersey-American Water Co., Inc.)
Series 2023
3.75%, 11/01/2034 | | | 2,000 | | | | 1,995,351 | |
New Jersey Educational Facilities
Authority
(Ramapo College of New Jersey)
AGM Series 2022-A
4.00%, 07/01/2039 | | | 550 | | | | 551,487 | |
4.00%, 07/01/2040 | | | 750 | | | | 749,766 | |
4.00%, 07/01/2041 | | | 835 | | | | 833,295 | |
5.00%, 07/01/2034 | | | 845 | | | | 940,065 | |
5.00%, 07/01/2035 | | | 400 | | | | 443,211 | |
5.00%, 07/01/2036 | | | 600 | | | | 663,066 | |
5.00%, 07/01/2037 | | | 600 | | | | 660,182 | |
5.00%, 07/01/2038 | | | 745 | | | | 816,576 | |
New Jersey Transportation Trust Fund
Authority
Series 2024-A
4.00%, 06/15/2042 | | | 3,530 | | | | 3,466,174 | |
5.00%, 06/15/2037 | | | 3,750 | | | | 4,170,669 | |
New Jersey Transportation Trust Fund
Authority
(New Jersey Transportation Fed Hwy Grant)
Series 2016
5.00%, 06/15/2029 | | | 4,390 | | | | 4,499,448 | |
Series 2018-A
5.00%, 06/15/2028 | | | 4,170 | | | | 4,281,288 | |
5.00%, 06/15/2029 | | | 17,500 | | | | 17,944,661 | |
5.00%, 06/15/2030 | | | 1,500 | | | | 1,535,781 | |
5.00%, 06/15/2031 | | | 3,000 | | | | 3,067,436 | |
New Jersey Transportation Trust Fund
Authority
(New Jersey Transportation Trust Fund
Authority State Lease)
Series 2023-B
5.00%, 06/15/2040 | | | 3,265 | | | | 3,571,196 | |
5.00%, 06/15/2043 | | | 1,250 | | | | 1,345,850 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
New Jersey Transportation Trust Fund
Authority
(Pre-refunded – US Treasuries)
Series 2014-C
5.25%, 06/15/2032 | | $ | 2,960 | | | $ | 2,970,412 | |
New Jersey Turnpike Authority
Series 2017-A
5.00%, 01/01/2033 | | | 7,300 | | | | 7,573,067 | |
Series 2021-B
0.897%, 01/01/2025 | | | 1,000 | | | | 993,599 | |
1.713%, 01/01/2029 | | | 1,350 | | | | 1,209,349 | |
Series 2024-C
5.00%, 01/01/2043 | | | 2,400 | | | | 2,638,733 | |
5.00%, 01/01/2044 | | | 1,000 | | | | 1,096,100 | |
Tobacco Settlement Financing Corp./NJ
Series 2018-A
5.00%, 06/01/2030 | | | 4,750 | | | | 4,993,016 | |
| | | | | | | | |
| | | | | | | 86,200,850 | |
| | | | | | | | |
New Mexico – 0.1% | |
State of New Mexico Severance Tax
Permanent Fund
Series 2022-A
5.00%, 07/01/2031 | | | 1,000 | | | | 1,120,563 | |
| | | | | | | | |
|
New York – 8.3% | |
City of New York NY
Series 2021
1.396%, 08/01/2027 | | | 3,120 | | | | 2,876,729 | |
Series 2021-A
4.00%, 08/01/2041 | | | 2,000 | | | | 2,001,242 | |
Series 2021-F
5.00%, 06/01/2044(j) | | | 2,500 | | | | 2,523,506 | |
Series 2024-A
5.00%, 08/01/2025 | | | 2,590 | | | | 2,625,270 | |
Series 2024-C
5.25%, 09/01/2050 | | | 3,000 | | | | 3,282,547 | |
County of Nassau NY
Series 2022-A
4.00%, 04/01/2042 | | | 2,205 | | | | 2,187,934 | |
Empire State Development Corp.
(State of New York Pers Income Tax)
Series 2022
5.00%, 09/15/2029 | | | 37,115 | | | | 40,893,738 | |
Metropolitan Transportation Authority
Series 2016-A
5.00%, 11/15/2024 | | | 1,130 | | | | 1,130,445 | |
| | |
| |
22 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2016-B
5.00%, 11/15/2027 | | $ | 1,370 | | | $ | 1,411,912 | |
Series 2017
5.00%, 11/15/2025 | | | 1,935 | | | | 1,969,582 | |
5.00%, 11/15/2026 | | | 555 | | | | 576,946 | |
Series 2017-C
5.00%, 11/15/2027 | | | 1,745 | | | | 1,849,411 | |
Series 2020-A
5.00%, 11/15/2045 | | | 5,120 | | | | 5,506,405 | |
New York City Municipal Water Finance Authority
Series 2023
5.00%, 06/15/2034 | | | 2,000 | | | | 2,313,227 | |
New York City Transitional Finance Authority
(New York City Transitional Finance Authority Future Tax Secured Revenue)
Series 2024
5.00%, 11/01/2038 | | | 6,800 | | | | 7,620,932 | |
5.00%, 11/01/2039 | | | 1,900 | | | | 2,122,053 | |
New York Liberty Development Corp.
(3 World Trade Center LLC)
Series 2014
5.375%, 11/15/2040(b) | | | 200 | | | | 200,047 | |
New York State Dormitory Authority
Series 2024
4.00%, 05/01/2054 | | | 1,000 | | | | 933,815 | |
Series 2025
5.00%, 05/01/2027(g) | | | 2,245 | | | | 2,339,110 | |
New York State Dormitory Authority
(New York State Sales Tax)
Series 2018-C
5.00%, 03/15/2040 | | | 2,000 | | | | 2,083,138 | |
New York State Dormitory Authority
(State of New York Pers Income Tax)
Series 2021
2.202%, 03/15/2034 | | | 2,000 | | | | 1,610,175 | |
2.252%, 03/15/2032 | | | 2,000 | | | | 1,690,770 | |
Series 2021-A
4.00%, 03/15/2039 | | | 1,000 | | | | 1,010,144 | |
Series 2022-A
4.00%, 03/15/2039 | | | 2,000 | | | | 2,023,060 | |
New York State Environmental Facilities Corp.
(State of New York SRF)
Series 2021
4.00%, 08/15/2038 | | | 800 | | | | 821,430 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 23 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
New York Transportation Development Corp.
(JFK International Air Terminal LLC)
Series 2022
5.00%, 12/01/2042 | | $ | 1,610 | | | $ | 1,660,336 | |
New York Transportation Development Corp.
(Laguardia Gateway Partners LLC)
Series 2016-A
5.00%, 07/01/2046 | | | 345 | | | | 342,614 | |
Suffolk Tobacco Asset Securitization Corp.
Series 2021
5.00%, 06/01/2028 | | | 2,265 | | | | 2,392,559 | |
5.00%, 06/01/2032 | | | 2,245 | | | | 2,434,602 | |
Town of Oyster Bay NY
Series 2024
4.00%, 08/21/2025 | | | 3,470 | | | | 3,491,484 | |
Triborough Bridge & Tunnel Authority
(Metropolitan Transportation Authority Payroll Mobility Tax Revenue)
Series 2021-A
2.00%, 05/15/2045 | | | 2,945 | | | | 2,859,680 | |
2.591%, 05/15/2036 | | | 2,000 | | | | 1,593,147 | |
2.917%, 05/15/2040 | | | 1,000 | | | | 763,125 | |
Series 2022
4.279% (SOFR + 1.05%), 04/01/2026(a) | | | 6,000 | | | | 5,993,143 | |
Series 2024
5.00%, 11/15/2035 | | | 3,000 | | | | 3,447,130 | |
| | | | | | | | |
| | | | | | | 118,581,388 | |
| | | | | | | | |
North Carolina – 0.9% | |
Fayetteville State University
Series 2023
5.00%, 04/01/2032(b) | | | 655 | | | | 708,339 | |
State of North Carolina
(State of North Carolina Fed Hwy Grant)
Series 2015
5.00%, 03/01/2025 | | | 5,360 | | | | 5,390,637 | |
5.00%, 03/01/2026 | | | 6,710 | | | | 6,749,496 | |
| | | | | | | | |
| | | | | | | 12,848,472 | |
| | | | | | | | |
North Dakota – 0.0% | |
County of Grand Forks ND
(Red River Biorefinery LLC)
Series 2021
6.625%, 12/15/2031(c)(d)(e)(i)(k) | | | 425 | | | | – 0 | – |
7.00%, 12/15/2043(c)(d)(e)(i)(k) | | | 440 | | | | – 0 | – |
| | | | | | | | |
| | | | | | | – 0 | – |
| | | | | | | | |
| | |
| |
24 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Ohio – 2.5% | |
American Municipal Power, Inc.
(American Municipal Power Combined Hydroelectric Revenue)
Series 2016-A
5.00%, 02/15/2036 | | $ | 5,000 | | | $ | 5,087,750 | |
City of Chillicothe OH
(Adena Health System Obligated Group)
Series 2017
5.00%, 12/01/2037 | | | 3,385 | | | | 3,470,938 | |
City of Cleveland OH Income Tax Revenue
Series 2017-B1
5.00%, 10/01/2027 | | | 2,500 | | | | 2,655,458 | |
County of Hamilton OH
(Christ Hospital Obligated Group)
Series 2023
5.00%, 06/01/2042 | | | 1,000 | | | | 1,044,987 | |
County of Washington OH
(Marietta Area Health Care, Inc. Obligated Group)
Series 2022
6.375%, 12/01/2037 | | | 2,000 | | | | 2,155,981 | |
Ohio Higher Educational Facility Commission (University of Dayton)
Series 2022
5.00%, 02/01/2038 | | | 1,250 | | | | 1,360,179 | |
5.00%, 02/01/2039 | | | 3,860 | | | | 4,184,345 | |
Reynoldsburg City School District
Series 2013
4.919%, 09/01/2030 | | | 1,000 | | | | 1,022,903 | |
Series 2014
4.939%, 09/01/2032 | | | 1,000 | | | | 1,031,087 | |
State of Ohio
(Cleveland Clinic Health System Obligated Group)
Series 2024
5.00%, 01/01/2035 | | | 3,400 | | | | 3,880,193 | |
University of Toledo
Series 2023-B
4.281% (SOFR + 0.90%), 06/01/2036(a)(e) | | | 9,770 | | | | 9,553,930 | |
| | | | | | | | |
| | | | | | | 35,447,751 | |
| | | | | | | | |
Oklahoma – 0.3% | |
Oklahoma Development Finance Authority
Series 2022
4.38%, 11/01/2045 | | | 2,500 | | | | 2,322,213 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 25 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Oklahoma Development Finance Authority
(OU Medicine Obligated Group)
Series 2022-A
5.50%, 08/15/2037 | | $ | 2,000 | | | $ | 2,082,323 | |
| | | | | | | | |
| | | | | | | 4,404,536 | |
| | | | | | | | |
Oregon – 0.8% | |
Deschutes County Hospital Facilities
Authority
(St. Charles Health System Obligated Group)
Series 2016-A
4.00%, 01/01/2033 | | | 1,000 | | | | 1,000,714 | |
Oregon Health & Science University
(Oregon Health & Science University Obligated Group)
Series 2021-B
5.00%, 07/01/2046 | | | 4,750 | | | | 5,096,412 | |
Port of Portland OR Airport Revenue
Series 2022-2
4.00%, 07/01/2040 | | | 3,175 | | | | 3,096,151 | |
Series 2023
5.25%, 07/01/2041 | | | 2,175 | | | | 2,365,624 | |
| | | | | | | | |
| | | | | | | 11,558,901 | |
| | | | | | | | |
Other – 0.6% | |
Federal Home Loan Mortgage Corp.
Series 2021-ML10, Class ACA
2.046%, 06/25/2038 | | | 958 | | | | 764,551 | |
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates
Series 2024-ML23, Class AUS
4.563%, 04/25/2042(b) | | | 1,999 | | | | 2,092,719 | |
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates
Series 2021-ML12, Class AUS
2.34%, 07/25/2041 | | | 2,424 | | | | 1,966,329 | |
Series 2022-ML13, Class XCA
0.96%, 07/25/2036(h) | | | 1,142 | | | | 60,679 | |
Series 2022-ML13, Class XUS
0.98%, 09/25/2036(h) | | | 2,032 | | | | 134,362 | |
Series M052, Class A
2.65%, 06/15/2036 | | | 3,640 | | | | 3,175,632 | |
| | | | | | | | |
| | | | | | | 8,194,272 | |
| | | | | | | | |
| | |
| |
26 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Pennsylvania – 6.4% | |
Allegheny County Hospital Development Authority
(UPMC Obligated Group)
Series 2022
3.94% (MUNIPSA + 0.70%), 11/15/2047(a) | | $ | 5,000 | | | $ | 4,950,762 | |
Berks County Municipal Authority (The)
Series 2024
0.00%, 06/30/2044(j) | | | 933 | | | | 664,814 | |
5.00%, 06/30/2039 | | | 2,200 | | | | 2,173,768 | |
8.00%, 06/30/2034 | | | 325 | | | | 333,424 | |
Series 2024-A
6.00%, 06/30/2034 | | | 155 | | | | 167,529 | |
Bucks County Industrial Development Authority
(Grand View Hospital/Sellersville PA Obligated Group)
Series 2021
5.00%, 07/01/2032 | | | 1,150 | | | | 1,176,087 | |
5.00%, 07/01/2033 | | | 1,150 | | | | 1,172,681 | |
5.00%, 07/01/2034 | | | 1,300 | | | | 1,321,484 | |
5.00%, 07/01/2035 | | | 1,050 | | | | 1,064,199 | |
Chester County Industrial Development Authority
(Collegium Charter School)
Series 2022
5.00%, 10/15/2032(b) | | | 845 | | | | 860,819 | |
City of Philadelphia PA
Series 2017
5.00%, 08/01/2028 | | | 12,990 | | | | 13,672,897 | |
City of Philadelphia PA Water & Wastewater
Revenue
Series 2017-A
5.00%, 10/01/2032 | | | 1,000 | | | | 1,044,462 | |
5.00%, 10/01/2033 | | | 1,135 | | | | 1,184,381 | |
Hospitals & Higher Education Facilities
Authority of Philadelphia (The)
(Temple University Health System
Obligated Group)
AGM Series 2022
4.00%, 07/01/2040 | | | 10,000 | | | | 9,833,096 | |
Lancaster County Hospital Authority/PA
(St. Anne’s Retirement Community
Obligated Group)
Series 2022
3.50%, 03/01/2025 | | | 485 | | | | 482,381 | |
5.00%, 03/01/2033 | | | 1,600 | | | | 1,550,837 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 27 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Montgomery County Higher Education and Health Authority
(Thomas Jefferson University Obligated Group)
Series 2018
5.00%, 09/01/2034 | | $ | 1,500 | | | $ | 1,563,628 | |
Series 2022
4.00%, 05/01/2036 | | | 1,100 | | | | 1,087,758 | |
Moon Industrial Development Authority
(Baptist Homes Society)
Series 2015
5.125%, 07/01/2025 | | | 455 | | | | 445,086 | |
Pennsylvania Economic Development
Financing Authority
(PA Bridges Finco LP)
Series 2015
5.00%, 06/30/2042 | | | 1,000 | | | | 1,010,229 | |
Pennsylvania Economic Development
Financing Authority
(UPMC Obligated Group)
Series 2022-C
4.21% (MUNIPSA + 0.70%),
11/15/2047(a) | | | 5,000 | | | | 5,001,096 | |
Pennsylvania Turnpike Commission
Series 2016
5.00%, 06/01/2026 | | | 2,000 | | | | 2,038,694 | |
Series 2016-A
5.00%, 06/01/2025 | | | 3,000 | | | | 3,029,304 | |
Series 2017
5.00%, 12/01/2028 | | | 1,750 | | | | 1,855,345 | |
5.00%, 12/01/2029 | | | 1,255 | | | | 1,329,083 | |
Series 2021-A
3.00%, 12/01/2042 | | | 1,245 | | | | 1,054,358 | |
Series 2021-B
4.00%, 12/01/2039 | | | 2,000 | | | | 2,015,950 | |
Series 2022-A
5.00%, 12/01/2036 | | | 1,000 | | | | 1,114,987 | |
Series 2024
5.00%, 12/01/2038 | | | 5,800 | | | | 6,541,851 | |
Philadelphia Authority for Industrial
Development
(MaST Community Charter School III)
Series 2021
5.00%, 08/01/2040 | | | 1,000 | | | | 1,002,721 | |
Pittsburgh Water & Sewer Authority
AGM Series 2023-C
4.174% (SOFR + 0.80%), 09/01/2040(a)(b) | | | 10,000 | | | | 9,761,109 | |
| | |
| |
28 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
School District of Philadelphia (The)
Series 2016-F
5.00%, 09/01/2034 | | $ | 5,000 | | | $ | 5,102,457 | |
Series 2023-A
5.25%, 09/01/2039 | | | 2,000 | | | | 2,238,977 | |
5.25%, 09/01/2043 | | | 4,000 | | | | 4,390,120 | |
| | | | | | | | |
| | | | | | | 92,236,374 | |
| | | | | | | | |
Puerto Rico – 0.1% | |
Commonwealth of Puerto Rico
Series 2021-A
4.00%, 07/01/2046 | | | 3 | | | | 2,950 | |
Series 2022-C
Zero Coupon, 11/01/2043 | | | 18 | | | | 11,519 | |
Puerto Rico Electric Power Authority
AGM Series 2007-V
5.25%, 07/01/2031 | | | 970 | | | | 968,917 | |
| | | | | | | | |
| | | | | | | 983,386 | |
| | | | | | | | |
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 | | | | 3,457,663 | |
| | | | | | | | |
|
South Carolina – 1.5% | |
Columbia Housing Authority/SC
(Garden Lakes Apartments)
Series 2022
4.80%, 11/01/2024 | | | 525 | | | | 525,000 | |
5.26%, 11/01/2032 | | | 100 | | | | 99,128 | |
5.41%, 11/01/2039 | | | 1,315 | | | | 1,293,402 | |
6.28%, 11/01/2039 | | | 100 | | | | 98,447 | |
Orangeburg County School District
Series 2024
5.00%, 08/13/2025 | | | 2,400 | | | | 2,430,683 | |
South Carolina Jobs-Economic
Development Authority
(Last Step Recycling LLC)
Series 2021
6.25%, 06/01/2040(c)(d)(e) | | | 1,000 | | | | 150,000 | |
South Carolina Jobs-Economic
Development Authority
(Novant Health Obligated Group)
Series 2024
4.50%, 11/01/2054 | | | 2,000 | | | | 1,989,517 | |
5.25%, 11/01/2044 | | | 2,500 | | | | 2,763,755 | |
5.50%, 11/01/2050 | | | 2,500 | | | | 2,762,982 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 29 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
South Carolina Public Service Authority
Series 2016-A
5.00%, 12/01/2034 | | $ | 1,000 | | | $ | 1,021,762 | |
5.00%, 12/01/2036 | | | 1,535 | | | | 1,566,108 | |
Series 2016-B
5.00%, 12/01/2037 | | | 5,040 | | | | 5,168,758 | |
Series 2016-C
5.00%, 12/01/2035 | | | 930 | | | | 955,452 | |
| | | | | | | | |
| | | | | | | 20,824,994 | |
| | | | | | | | |
Tennessee – 2.2% | |
Bristol Industrial Development Board
(Bristol Industrial Development Board Sales Tax)
Series 2016-A
5.00%, 12/01/2035(b) | | | 1,410 | | | | 1,377,128 | |
Series 2016-B
Zero Coupon, 12/01/2031(b) | | | 1,000 | | | | 688,046 | |
Knox County Industrial Development Board
(Tompaul Knoxville LLC)
Series 2022
8.75%, 11/01/2032(b) | | | 1,000 | | | | 1,022,300 | |
9.25%, 11/01/2042(b) | | | 1,000 | | | | 1,022,164 | |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board
Series 2024
5.00%, 07/01/2034 | | | 2,000 | | | | 2,263,498 | |
Metropolitan Nashville Airport Authority (The)
Series 2022-B
5.50%, 07/01/2037 | | | 1,000 | | | | 1,119,504 | |
5.50%, 07/01/2038 | | | 1,300 | | | | 1,451,049 | |
5.50%, 07/01/2042 | | | 1,485 | | | | 1,631,205 | |
Tennergy Corp./TN
(Morgan Stanley)
Series 2021-A
4.00%, 12/01/2051 | | | 9,015 | | | | 9,089,905 | |
Tennergy Corp./TN
(Nomura Holdings, Inc.)
Series 2022-A
5.50%, 10/01/2053 | | | 5,000 | | | | 5,408,217 | |
Tennessee Energy Acquisition Corp.
(Goldman Sachs Group, Inc. (The))
Series 2023-A
5.00%, 05/01/2053 | | | 4,000 | | | | 4,159,188 | |
| | |
| |
30 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Wilson County Health & Educational Facilities
Board
(Limestone Trail Apartments)
Series 2021
4.00%, 12/01/2039 | | $ | 1,000 | | | $ | 850,944 | |
4.25%, 12/01/2024 | | | 1,000 | | | | 996,654 | |
| | | | | | | | |
| | | | | | | 31,079,802 | |
| | | | | | | | |
Texas – 4.0% | |
Central Texas Regional Mobility Authority
Series 2021-B
5.00%, 01/01/2034 | | | 1,575 | | | | 1,699,493 | |
5.00%, 01/01/2037 | | | 1,675 | | | | 1,792,937 | |
5.00%, 01/01/2039 | | | 1,000 | | | | 1,062,593 | |
Central Texas Turnpike System
Series 2024-A
5.00%, 08/15/2038 | | | 1,000 | | | | 1,104,441 | |
Series 2024-C
5.00%, 08/15/2038 | | | 2,200 | | | | 2,424,074 | |
City of Austin TX Airport System Revenue Series 2022
5.00%, 11/15/2042 | | | 2,500 | | | | 2,616,887 | |
City of Houston TX Airport System Revenue
AGM Series 2023
5.00%, 07/01/2033 | | | 4,000 | | | | 4,337,929 | |
City of Houston TX Combined Utility System
Revenue Series 2019-B
4.00%, 11/15/2039 | | | 1,015 | | | | 1,019,908 | |
City of San Antonio TX Electric & Gas Systems Revenue
Series 2021-A
5.00%, 02/01/2038 | | | 1,750 | | | | 1,886,626 | |
5.00%, 02/01/2039 | | | 2,000 | | | | 2,144,339 | |
Conroe Local Government Corp.
(Conroe Local Government Corp. Conroe Convention Center Hotel)
Series 2021
4.00%, 10/01/2041 | | | 905 | | | | 879,613 | |
Harris County Cultural Education Facilities Finance Corp.
(Memorial Hermann Health System Obligated Group)
Series 2022
4.36% (MUNIPSA + 0.85%), 07/01/2049(a) | | | 1,000 | | | | 1,000,347 | |
Series 2024
5.00%, 07/01/2034 | | | 2,000 | | | | 2,261,736 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 31 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Lower Colorado River Authority
(LCRA Transmission Services Corp.)
Series 2021
5.00%, 05/15/2029 | | $ | 800 | | | $ | 866,124 | |
McKinney Independent School District
Series 2024
5.00%, 02/15/2025 | | | 1,500 | | | | 1,507,232 | |
New Hope Cultural Education Facilities Finance Corp.
(Buckingham Senior Living Community, Inc. Obligated Group)
Series 2021
2.00%, 11/15/2061(c)(d)(j) | | | 945 | | | | 343,752 | |
7.50%, 11/15/2036(c)(d) | | | 225 | | | | 191,042 | |
7.50%, 11/15/2037(c)(d) | | | 35 | | | | 28,737 | |
New Hope Cultural Education Facilities Finance Corp.
(Dwyer Workforce Development)
Series 2023
8.50%, 09/01/2027(e) | | | 1,310 | | | | 1,314,227 | |
New Hope Cultural Education Facilities Finance Corp.
(Morningside Ministries Obligated Group)
Series 2022
4.00%, 01/01/2042 | | | 1,825 | | | | 1,410,951 | |
North Texas Tollway Authority
(North Texas Tollway System)
Series 2021-B
4.00%, 01/01/2032 | | | 1,080 | | | | 1,103,242 | |
Port of Beaumont Navigation District
(Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group)
Series 2024
10.00%, 07/01/2026(b) | | | 1,000 | | | | 1,023,012 | |
Port of Beaumont Navigation District
(Jefferson Railport Terminal II LLC)
Series 2021
2.00%, 01/01/2027(b) | | | 550 | | | | 525,019 | |
San Antonio Independent School District/TX
Series 2015
5.00%, 02/15/2025 | | | 2,000 | | | | 2,009,934 | |
Tarrant County Cultural Education Facilities Finance Corp.
(CHRISTUS Health Obligated Group)
Series 2018-A
5.00%, 07/01/2030 | | | 2,465 | | | | 2,624,520 | |
5.00%, 07/01/2031 | | | 10,940 | | | | 11,659,015 | |
| | |
| |
32 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Texas Municipal Gas Acquisition & Supply Corp. IV
(BP PLC)
Series 2023-A
5.50%, 01/01/2054 | | $ | 7,260 | | | $ | 7,818,403 | |
Texas State University System
Series 2024
5.00%, 03/15/2043 | | | 1,000 | | | | 1,084,377 | |
| | | | | | | | |
| | | | | | | 57,740,510 | |
| | | | | | | | |
|
Utah – 0.2% | |
Intermountain Power Agency
Series 2023
5.00%, 07/01/2039 | | | 2,000 | | | | 2,199,005 | |
| | | | | | | | |
|
Virginia – 0.7% | |
Chesterfield County Economic Development Authority
(County of Chesterfield VA)
Series 2024
5.00%, 04/01/2042 | | | 2,000 | | | | 2,205,683 | |
US Bank Trust Co. NA
(Park Landing LP)
Series 2022-B
5.90%, 08/01/2052 | | | 1,626 | | | | 1,485,196 | |
Virginia College Building Authority
(Virginia College Building Authority State Lease)
Series 2019-A
5.00%, 02/01/2025 | | | 3,000 | | | | 3,011,318 | |
Virginia Public Building Authority
(Virginia Public Building Authority State Lease)
Series 2024-A
5.00%, 08/01/2044 | | | 1,085 | | | | 1,205,073 | |
Virginia Small Business Financing Authority
(Pure Salmon Virginia LLC)
Series 2023
5.00%, 11/01/2052 | | | 2,000 | | | | 2,000,318 | |
| | | | | | | | |
| | | | | | | 9,907,588 | |
| | | | | | | | |
Washington – 3.7% | |
Energy Northwest
(Bonneville Power Administration)
Series 2015-C
5.00%, 07/01/2026 | | | 2,000 | | | | 2,023,393 | |
Series 2021-A
4.00%, 07/01/2042 | | | 1,000 | | | | 1,001,027 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 33 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Port of Seattle WA
Series 2018-A
5.00%, 05/01/2029 | | $ | 8,280 | | | $ | 8,546,772 | |
5.00%, 05/01/2030 | | | 6,200 | | | | 6,389,282 | |
5.00%, 05/01/2038 | | | 1,000 | | | | 1,020,464 | |
Series 2021
4.00%, 08/01/2041 | | | 13,380 | | | | 12,930,907 | |
Series 2024
5.25%, 07/01/2043 | | | 1,835 | | | | 1,971,542 | |
State of Washington
Series 2015-R
5.00%, 07/01/2026 | | | 13,325 | | | | 13,366,831 | |
Series 2024-R
5.00%, 07/01/2025 | | | 2,000 | | | | 2,023,787 | |
Washington State Housing Finance Commission
Series 2021-1, Class A
3.50%, 12/20/2035 | | | 949 | | | | 892,530 | |
Series 2021-1, Class X
0.726%, 12/20/2035(h) | | | 949 | | | | 39,926 | |
Series 2023-1, Class X
1.449%, 04/20/2037(h) | | | 2,976 | | | | 309,591 | |
Washington State Housing Finance Commission
(Presbyterian Retirement Communities Northwest Obligated Group)
Series 2016
5.00%, 01/01/2036(b) | | | 2,125 | | | | 2,126,501 | |
| | | | | | | | |
| | | | | | | 52,642,553 | |
| | | | | | | | |
West Virginia – 0.4% | |
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) | | | 1,185 | | | | 948,591 | |
Tobacco Settlement Finance Authority/WV
Series 2020
4.875%, 06/01/2049 | | | 2,195 | | | | 2,110,299 | |
West Virginia Economic Development Authority
(Wyoming County Coal LLC)
Series 2023
9.00%, 06/01/2038(b) | | | 2,500 | | | | 2,579,325 | |
| | | | | | | | |
| | | | | | | 5,638,215 | |
| | | | | | | | |
Wisconsin – 1.4% | |
St. Croix Chippewa Indians of Wisconsin
Series 2021
5.00%, 09/30/2041(b) | | | 1,000 | | | | 918,994 | |
| | |
| |
34 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
State of Wisconsin
Series 2025-2
5.00%, 05/01/2026(g) | | $ | 1,900 | | | $ | 1,943,612 | |
Wisconsin Health & Educational Facilities Authority
(Advocate Aurora Health Obligated Group)
Series 2023
5.00%, 08/15/2054 | | | 2,000 | | | | 2,043,626 | |
Wisconsin Housing & Economic Development Authority
(Roers Sun Prairie Apartments Owner LLC)
Series 2022
4.625%, 03/15/2040(b) | | | 280 | | | | 251,523 | |
Series 2022-A
3.875%, 12/01/2039(b) | | | 1,285 | | | | 1,148,460 | |
Wisconsin Public Finance Authority
Series 2024-1
4.10%, 09/25/2039(b) | | | 1,250 | | | | 1,234,650 | |
Wisconsin Public Finance Authority
(Catholic Bishop of Chicago (The))
Series 2021
5.75%, 07/25/2041(e) | | | 5,000 | | | | 4,523,206 | |
Wisconsin Public Finance Authority
(CFC-SA LLC)
Series 2022
5.50%, 02/01/2042(b) | | | 3,100 | | | | 3,219,142 | |
Wisconsin Public Finance Authority
(National Senior Communities, Inc. Obligated Group)
Series 2022
4.00%, 01/01/2042 | | | 1,375 | | | | 1,283,751 | |
Wisconsin Public Finance Authority
(Pre-refunded – US Treasuries)
Series 2022
4.00%, 04/01/2032(b) | | | 15 | | | | 15,553 | |
Wisconsin Public Finance Authority
(Renown Regional Medical Center Obligated Group)
Series 2020
4.00%, 06/01/2035 | | | 1,220 | | | | 1,195,060 | |
Wisconsin Public Finance Authority
(Signorelli Projects)
Series 2024
5.375%, 12/15/2032(b) | | | 1,000 | | | | 1,000,482 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 35 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Wisconsin Public Finance Authority
(UNC Health Appalachian Obligated Group)
Series 2021
5.00%, 07/01/2035 | | $ | 300 | | | $ | 307,012 | |
5.00%, 07/01/2036 | | | 350 | | | | 357,275 | |
5.00%, 07/01/2038 | | | 375 | | | | 380,952 | |
| | | | | | | | |
| | | | | | | 19,823,298 | |
| | | | | | | | |
Total Long-Term Municipal Bonds
(cost $1,374,641,286) | | | | | | | 1,348,953,749 | |
| | | | | |
| | | | | | | | |
| Short-Term Municipal Notes – 2.4% | |
California – 0.1% | |
Nuveen California AMT-Free Quality Municipal Income Fund
Series 2017
3.69%, 10/01/2047(b)(l) | | | 1,000 | | | | 1,000,000 | |
| | | | | | | | |
|
Iowa – 1.0% | |
Iowa Finance Authority
Series 2018
3.90%, 07/01/2041(l) | | | 15,000 | | | | 15,000,000 | |
| | | | | | | | |
|
New York – 0.2% | |
City of New York NY
Series 2008-L
3.90%, 04/01/2038(l) | | | 3,000 | | | | 3,000,000 | |
| | | | | | | | |
|
Ohio – 0.7% | |
State of Ohio
Series 2018
3.95%, 01/15/2046(l) | | | 10,230 | | | | 10,230,000 | |
| | | | | | | | |
|
Other – 0.4% | |
Nuveen AMT-Free Municipal Credit Income Fund
Series 2019
3.69%, 03/01/2029(l) | | | 2,000 | | | | 2,000,000 | |
Nuveen AMT-Free Quality Municipal Income Fund
Series 2021
3.69%, 03/01/2029(l) | | | 4,000 | | | | 4,000,000 | |
| | | | | | | | |
| | | | | | | 6,000,000 | |
| | | | | | | | |
Total Short-Term Municipal Notes
(cost $35,230,000) | | | | | | | 35,230,000 | |
| | | | | |
Total Municipal Obligations
(cost $1,409,871,286) | | | | | | | 1,384,183,749 | |
| | | | | |
| | |
| |
36 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CORPORATES - INVESTMENT GRADE – 0.8% | | | | | | | | |
Industrial – 0.8% | | | | | | | | |
Consumer Non-Cyclical – 0.8% | | | | | | | | |
Baylor Scott & White Holdings
Series 2021
0.827%, 11/15/2025 | | $ | 1,000 | | | $ | 959,470 | |
1.777%, 11/15/2030 | | | 1,000 | | | | 845,900 | |
Hackensack Meridian Health, Inc.
Series 2020
2.675%, 09/01/2041 | | | 1,790 | | | | 1,264,009 | |
Ochsner LSU Health System of North Louisiana
Series 2021
2.51%, 05/15/2031 | | | 2,300 | | | | 1,763,134 | |
Sutter Health
Series 20A
3.161%, 08/15/2040 | | | 1,000 | | | | 770,290 | |
UPMC
Series D-1
3.60%, 04/03/2025 | | | 5,600 | | | | 5,561,080 | |
| | | | | | | | |
| | |
Total Corporates - Investment Grade
(cost $12,719,653) | | | | | | | 11,163,883 | |
| | | | | |
| | | | | | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.5% | | | | | | | | |
Agency CMBS – 0.3% | | | | | | | | |
Federal Home Loan Mortgage Corp.
Series 2024-ML22, Class AUS
4.545%, 10/25/2040 | | | 2,493 | | | | 2,569,054 | |
Federal Home Loan Mortgage Corp.
Multifamily ML Certificates
Series 2024
4.155%, 05/25/2041 | | | 1,998 | | | | 1,976,798 | |
| | | | | | | | |
| | | | | | | 4,545,852 | |
| | | | | | | | |
Non-Agency Fixed Rate CMBS – 0.1% | | | | | | | | |
City of Fort Wayne IN
10.75%, 12/01/2029(c)(d) | | | 87 | | | | 8 | |
New Hampshire Business Finance Authority
Series 2024-3
4.03%, 10/20/2041 | | | 1,997 | | | | 1,917,479 | |
| | | | | | | | |
| | | | | | | 1,917,487 | |
| | | | | | | | |
Non-Agency Floating Rate CMBS – 0.1% | | | | | | | | |
New Hampshire Business Finance Authority
Series 2024-1, Class X
0.49%, 07/01/2051(h) | | | 2,174 | | | | 83,772 | |
Series 2024-2, Class X
0.51%, 08/20/2039(h) | | | 998 | | | | 41,348 | |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 37 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Washington State Housing Finance
Commission
Series 2024-2
4.084%, 03/20/2040 | | $ | 1,000 | | | $ | 962,776 | |
| | | | | | | | |
| | | | | | | 1,087,896 | |
| | | | | | | | |
Total Commercial Mortgage-Backed
Securities
(cost $7,763,222) | | | | | | | 7,551,235 | |
| | | | | |
| | |
CORPORATES – NON-INVESTMENT GRADE – 0.2% | | | | | | | | |
Industrial – 0.2% | |
Communications - Media – 0.2% | |
CCO Holdings LLC/CCO Holdings Capital Corp.
4.25%, 01/15/2034(b) | | | 1,933 | | | | 1,547,251 | |
DISH DBS Corp.
5.25%, 12/01/2026(b) | | | 959 | | | | 887,641 | |
5.75%, 12/01/2028(b) | | | 996 | | | | 871,689 | |
| | | | | | | | |
| | |
Total Corporates - Non-Investment Grade
(cost $3,887,487) | | | | | | | 3,306,581 | |
| | | | | |
|
ASSET-BACKED SECURITIES – 0.2% | |
Other ABS - Fixed Rate – 0.2% | |
HTA HRRB Custodial Trust
5.25%, 07/01/2036 | | | 19 | | | | 19,413 | |
HTA TRRB Custodial Trust
Series 2022
5.25%, 07/01/2034 | | | 830 | | | | 805,129 | |
5.25%, 07/01/2036 | | | 900 | | | | 903,443 | |
5.25%, 07/01/2041 | | | 649 | | | | 626,988 | |
Tarrant County Cultural Education Facilities Finance Corp.
5.00%, 11/15/2025(c)(d)(i)(k) | | | 904 | | | | – 0 | – |
| | | | | | | | |
| | |
Total Asset-Backed Securities
(cost $3,340,248) | | | | | | | 2,354,973 | |
| | | | | | | | |
| | |
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.0% | | | | | | | | |
Risk Share Floating Rate – 0.0% | |
Federal National Mortgage Association Connecticut Avenue Securities
Series 2015-C02, Class 1M2
8.971% (CME Term SOFR + 4.11%), 05/25/2025(a)
(cost $35,100) | | | 35 | | | | 35,559 | |
| | | | | | | | |
| | |
| |
38 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | | Shares | | | U.S. $ Value | |
| |
SHORT-TERM INVESTMENTS – 2.4% | |
Investment Companies – 2.4% | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.72%(m)(n)(o)
(cost $33,809,693) | | | 33,809,693 | | | $ | 33,809,693 | |
| | | | | | | | |
| | |
Total Investments – 100.6% | | | | | | | | |
(cost $1,471,426,689) | | | | | | | 1,442,405,673 | |
Other assets less liabilities – (0.6)% | | | | | | | (8,979,952 | ) |
| | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 1,433,425,721 | |
| | | | | |
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
October 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Buy Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-NAHY Series 43, 5 Year Index, 12/20/2029* | | | (5.00 | )% | | | Quarterly | | | | 3.36 | % | | | USD 19,310 | | | $ | (1,437,389 | ) | | $ | (1,384,499 | ) | | $ | (52,890 | ) |
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 | | | 25,000 | | | | 10/04/2026 | | | | 2.725 | % | | | CPI | # | | Maturity | | $ | 1,492,819 | | | $ | – 0 | – | | $ | 1,492,819 | |
| | USD | | | 24,000 | | | | 01/15/2028 | | | | 3.232 | % | | | CPI | # | | Maturity | | | 1,174,346 | | | | – 0 | – | | | 1,174,346 | |
| | USD | | | 19,310 | | | | 01/15/2028 | | | | 1.230 | % | | | CPI | # | | Maturity | | | 3,712,143 | | | | – 0 | – | | | 3,712,143 | |
| | USD | | | 14,770 | | | | 01/15/2028 | | | | 0.735 | % | | | CPI | # | | Maturity | | | 3,393,343 | | | | – 0 | – | | | 3,393,343 | |
| | USD | | | 25,000 | | | | 10/04/2028 | | | | 2.661 | % | | | CPI | # | | Maturity | | | 1,478,394 | | | | – 0 | – | | | 1,478,394 | |
| | USD | | | 12,000 | | | | 08/29/2029 | | | | 1.748 | % | | | CPI | # | | Maturity | | | 1,977,445 | | | | – 0 | – | | | 1,977,445 | |
| | USD | | | 4,825 | | | | 01/15/2030 | | | | 1.572 | % | | | CPI | # | | Maturity | | | 870,528 | | | | – 0 | – | | | 870,528 | |
| | USD | | | 4,825 | | | | 01/15/2030 | | | | 1.587 | % | | | CPI | # | | Maturity | | | 863,677 | | | | – 0 | – | | | 863,677 | |
| | USD | | | 1,670 | | | | 01/15/2030 | | | | 1.714 | % | | | CPI | # | | Maturity | | | 278,728 | | | | – 0 | – | | | 278,728 | |
| | USD | | | 1,670 | | | | 01/15/2030 | | | | 1.731 | % | | | CPI | # | | Maturity | | | 276,007 | | | | – 0 | – | | | 276,007 | |
| | USD | | | 7,850 | | | | 01/15/2031 | | | | 2.782 | % | | | CPI | # | | Maturity | | | 564,101 | | | | – 0 | – | | | 564,101 | |
| | USD | | | 6,150 | | | | 01/15/2031 | | | | 2.680 | % | | | CPI | # | | Maturity | | | 505,260 | | | | – 0 | – | | | 505,260 | |
| | USD | | | 5,000 | | | | 04/01/2036 | | | | 2.438 | % | | | CPI | # | | Maturity | | | 496,910 | | | | – 0 | – | | | 496,910 | |
| | USD | | | 32,000 | | | | 04/29/2036 | | | | 2.503 | % | | | CPI | # | | Maturity | | | 2,839,778 | | | | – 0 | – | | | 2,839,778 | |
| | USD | | | 10,000 | | | | 05/01/2036 | | | | 2.510 | % | | | CPI | # | | Maturity | | | 875,910 | | | | – 0 | – | | | 875,910 | |
| | USD | | | 10,000 | | | | 08/03/2036 | | | | 2.488 | % | | | CPI | # | | Maturity | | | 773,788 | | | | – 0 | – | | | 773,788 | |
| | USD | | | 20,000 | | | | 08/06/2036 | | | | 2.440 | % | | | CPI | # | | Maturity | | | 1,660,348 | | | | – 0 | – | | | 1,660,348 | |
| | USD | | | 40,000 | | | | 10/04/2036 | | | | 2.510 | % | | | CPI | # | | Maturity | | | 2,542,707 | | | | – 0 | – | | | 2,542,707 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | 25,776,232 | | | $ | – 0 | – | | $ | 25,776,232 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| # | Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI). |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 39 |
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 | | | 17,600 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.785% | | Annual | | $ | (1,406 | ) | | $ | – 0 | – | | $ | (1,406 | ) |
USD | | | 6,374 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.814% | | Annual | | | 7,630 | | | | – 0 | – | | | 7,630 | |
USD | | | 6,363 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.740% | | Annual | | | (14,034 | ) | | | – 0 | – | | | (14,034 | ) |
USD | | | 6,363 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.761% | | Annual | | | (8,293 | ) | | | – 0 | – | | | (8,293 | ) |
USD | | | 21,800 | | | | 07/31/2031 | | | 1 Day SOFR | | 4.059% | | Annual | | | 300,714 | | | | 2,326 | | | | 298,388 | |
USD | | | 2,500 | | | | 09/15/2031 | | | 1 Day SOFR | | 3.358% | | Annual | | | (68,039 | ) | | | – 0 | – | | | (68,039 | ) |
USD | | | 14,400 | | | | 03/31/2033 | | | 3.553% | | 1 Day SOFR | | Annual | | | 381,708 | | | | – 0 | – | | | 381,708 | |
USD | | | 15,700 | | | | 08/15/2034 | | | 3.264% | | 1 Day SOFR | | Annual | | | 699,743 | | | | 467 | | | | 699,276 | |
USD | | | 8,600 | | | | 08/15/2034 | | | 3.304% | | 1 Day SOFR | | Annual | | | 367,661 | | | | – 0 | – | | | 367,661 | |
USD | | | 6,700 | | | | 08/15/2034 | | | 3.272% | | 1 Day SOFR | | Annual | | | 288,483 | | | | – 0 | – | | | 288,483 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,954,167 | | | $ | 2,793 | | | $ | 1,951,374 | |
| | | | | | | | | | | | |
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 | 145,000 | | | | 07/15/2030 | | | 2.730% | | CPI# | | Maturity | | $ | 1,031,861 | | | $ | – 0 | – | | $ | 1,031,861 | |
| Bank of America, NA | | USD | 25,000 | | | | 02/02/2032 | | | 2.403% | | CPI# | | Maturity | | | 2,403,640 | | | | – 0 | – | | | 2,403,640 | |
| Bank of America, NA | | USD | 50,000 | | | | 02/15/2041 | | | 2.403% | | CPI# | | Maturity | | | 1,139,482 | | | | – 0 | – | | | 1,139,482 | |
| Bank of America, NA | | USD | 30,000 | | | | 02/15/2041 | | | 2.463% | | CPI# | | Maturity | | | 419,122 | | | | – 0 | – | | | 419,122 | |
| Bank of America, NA | | USD | 20,000 | | | | 02/15/2045 | | | 2.359% | | CPI# | | Maturity | | | 420,624 | | | | – 0 | – | | | 420,624 | |
| Bank of America, NA | | USD | 16,500 | | | | 02/15/2046 | | | 2.429% | | CPI# | | Maturity | | | 151,726 | | | | – 0 | – | | | 151,726 | |
| Bank of America, NA | | USD | 11,500 | | | | 02/15/2046 | | | 2.442% | | CPI# | | Maturity | | | 80,298 | | | | – 0 | – | | | 80,298 | |
| Barclays Bank PLC | | USD | 16,000 | | | | 04/15/2026 | | | 2.218% | | CPI# | | Maturity | | | 53,911 | | | | – 0 | – | | | 53,911 | |
| Barclays Bank PLC | | USD | 20,000 | | | | 06/06/2032 | | | 2.145% | | CPI# | | Maturity | | | 2,731,779 | | | | – 0 | – | | | 2,731,779 | |
| Barclays Bank PLC | | USD | 14,000 | | | | 09/01/2032 | | | 2.128% | | CPI# | | Maturity | | | 1,989,763 | | | | – 0 | – | | | 1,989,763 | |
| Barclays Bank PLC | | USD | 22,000 | | | | 08/29/2033 | | | 2.368% | | CPI# | | Maturity | | | 2,146,212 | | | | – 0 | – | | | 2,146,212 | |
| Barclays Bank PLC | | USD | 24,500 | | | | 02/15/2046 | | | 2.520% | | CPI# | | Maturity | | | (145,159 | ) | | | – 0 | – | | | (145,159 | ) |
| Citibank, NA | | USD | 370,000 | | | | 07/15/2025 | | | 3.130% | | CPI# | | Maturity | | | 1,091,881 | | | | – 0 | – | | | 1,091,881 | |
| Citibank, NA | | USD | 18,000 | | | | 04/15/2026 | | | 2.155% | | CPI# | | Maturity | | | 82,515 | | | | – 0 | – | | | 82,515 | |
| Citibank, NA | | USD | 12,000 | | | | 11/05/2033 | | | 2.273% | | CPI# | | Maturity | | | 1,361,761 | | | | – 0 | – | | | 1,361,761 | |
| Citibank, NA | | USD | 13,000 | | | | 02/15/2041 | | | 2.744% | | CPI# | | Maturity | | | 68,831 | | | | – 0 | – | | | 68,831 | |
| Goldman Sachs International | | USD | 30,000 | | | | 04/15/2025 | | | 4.740% | | CPI# | | Maturity | | | 42,003 | | | | – 0 | – | | | 42,003 | |
| Goldman Sachs International | | USD | 29,000 | | | | 04/15/2025 | | | 4.759% | | CPI# | | Maturity | | | 15,778 | | | | – 0 | – | | | 15,778 | |
| Goldman Sachs International | | USD | 29,000 | | | | 01/15/2027 | | | 3.534% | | CPI# | | Maturity | | | 1,085,474 | | | | – 0 | – | | | 1,085,474 | |
| Goldman Sachs International | | USD | 75,000 | | | | 07/15/2030 | | | 2.413% | | CPI# | | Maturity | | | 174,363 | | | | – 0 | – | | | 174,363 | |
| Goldman Sachs International | | USD | 18,000 | | | | 04/15/2032 | | | 2.994% | | CPI# | | Maturity | | | 726,666 | | | | – 0 | – | | | 726,666 | |
| Goldman Sachs International | | USD | 14,000 | | | | 02/15/2041 | | | 2.380% | | CPI# | | Maturity | | | 895,866 | | | | – 0 | – | | | 895,866 | |
| Goldman Sachs International | | USD | 7,000 | | | | 02/15/2041 | | | 2.413% | | CPI# | | Maturity | | | 412,307 | | | | – 0 | – | | | 412,307 | |
| | |
| |
40 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
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) | |
| Goldman Sachs International | | USD | 11,500 | | | | 02/15/2046 | | | | 2.449% | | | | CPI# | | | | Maturity | | | $ | 68,019 | | | $ | – 0 | – | | $ | 68,019 | |
| Goldman Sachs International | | USD | 11,500 | | | | 02/15/2046 | | | | 2.450% | | | | CPI# | | | | Maturity | | | | 66,128 | | | | – 0 | – | | | 66,128 | |
| JPMorgan Chase Bank, NA | | USD | 13,000 | | | | 03/01/2027 | | | | 2.279% | | | | CPI# | | | | Maturity | | | | 1,392,450 | | | | – 0 | – | | | 1,392,450 | |
| JPMorgan Chase Bank, NA | | USD | 10,000 | | | | 07/03/2028 | | | | 2.356% | | | | CPI# | | | | Maturity | | | | 990,385 | | | | – 0 | – | | | 990,385 | |
| JPMorgan Chase Bank, NA | | USD | 25,000 | | | | 11/05/2028 | | | | 2.234% | | | | CPI# | | | | Maturity | | | | 2,809,742 | | | | – 0 | – | | | 2,809,742 | |
| JPMorgan Chase Bank, NA | | USD | 18,000 | | | | 04/17/2030 | | | | 2.378% | | | | CPI# | | | | Maturity | | | | 1,729,291 | | | | – 0 | – | | | 1,729,291 | |
| JPMorgan Chase Bank, NA | | USD | 29,000 | | | | 04/15/2032 | | | | 2.944% | | | | CPI# | | | | Maturity | | | | 1,332,283 | | | | – 0 | – | | | 1,332,283 | |
| JPMorgan Chase Bank, NA | | USD | 24,000 | | | | 11/17/2032 | | | | 2.183% | | | | CPI# | | | | Maturity | | | | 3,154,966 | | | | – 0 | – | | | 3,154,966 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | 29,923,968 | | | $ | – 0 | – | | $ | 29,923,968 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| # | 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 | | $ | 886,085 | | | $ | – 0 | – | | $ | 886,085 | |
| * | Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index. |
| (a) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2024. |
| (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 October 31, 2024, the aggregate market value of these securities amounted to $99,216,505 or 6.9% of net assets. |
| (c) | Non-income producing security. |
| (e) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 1.69% of net assets as of October 31, 2024, are considered illiquid and restricted. Additional information regarding such securities follows: |
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
ARC70 II TRUST
Series 2023
4.84%, 04/01/2065 | | | 07/18/2023 | | | $ | 4,761,643 | | | $ | 4,463,186 | | | | 0.31 | % |
Arizona Industrial Development Authority
(Legacy Cares, Inc.)
Series 2020
6.50%, 07/01/2026 | | | 06/13/2022 | | | | 1,038,658 | | | | 40,000 | | | | 0.00 | % |
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 41 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Arizona Industrial Development Authority
(Legacy Cares, Inc.)
Series 2020
6.75%, 07/01/2030 | | | 07/21/2022 | | | $ | 1,036,663 | | | $ | 40,000 | | | | 0.00 | % |
California Pollution Control Financing Authority
(Rialto Bioenergy Facility LLC)
Series 2019
7.50%, 12/01/2040 | | | 05/16/2019 | | | | 251,678 | | | | 25 | | | | 0.00 | % |
County of Grand Forks ND
(Red River Biorefinery LLC)
Series 2021
6.625%, 12/15/2031 | | | 05/21/2021 | | | | 425,000 | | | | – 0 | – | | | 0.00 | % |
County of Grand Forks ND
(Red River Biorefinery LLC)
Series 2021
7.00%, 12/15/2043 | | | 05/21/2021 | | | | 440,000 | | | | – 0 | – | | | 0.00 | % |
Illinois Housing Development Authority
(Drexel Court & Lake Park East)
Series 2024
5.67%, 11/01/2038 | | | 10/19/2022 | | | | 1,190,000 | | | | 1,187,236 | | | | 0.08 | % |
Indiana Finance Authority
(Brightmark Plastics Renewal Indiana LLC)
Series 2019
7.00%, 03/01/2039 | | | 03/28/2019 | | | | 2,195,139 | | | | 1,040,689 | | | | 0.07 | % |
Indiana Finance Authority
(Parkview Health System Obligated Group)
Series 2024-B
4.084%, 11/01/2046 | | | 06/24/2024 | | | | 1,965,000 | | | | 1,962,289 | | | | 0.14 | % |
New Hope Cultural Education Facilities Finance Corp.
(Dwyer Workforce Development)
Series 2023
8.50%, 09/01/2027 | | | 02/03/2023 | | | | 1,310,000 | | | | 1,314,227 | | | | 0.09 | % |
South Carolina Jobs-Economic Development Authority
(Last Step Recycling LLC)
Series 2021
6.25%, 06/01/2040 | | | 06/16/2021 | | | | 1,000,000 | | | | 150,000 | | | | 0.01 | % |
University of Toledo
Series 2023-B
4.281%, 06/01/2036 | | | 06/30/2023 | | | | 9,770,000 | | | | 9,553,930 | | | | 0.67 | % |
| | |
| |
42 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Wisconsin Public Finance Authority
(Catholic Bishop of Chicago (The))
Series 2021
5.75%, 07/25/2041 | | | 08/03/2021 | | | $ | 5,000,000 | | | $ | 4,523,206 | | | | 0.32 | % |
| (f) | Inverse floater security. |
| (g) | When-Issued or delayed delivery security. |
| (i) | Fair valued by the Adviser. |
| (j) | Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at October 31, 2024. |
| (k) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (l) | 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. |
| (m) | Affiliated investments. |
| (n) | The rate shown represents the 7-day yield as of period end. |
| (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. |
As of October 31, 2024, 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 3.3% and 0.0%, respectively.
Glossary:
ABS – Asset-Backed Securities
AGM – Assured Guaranty Municipal
AMT – Alternative Minimum Tax (subject to)
BAM – Build American Mutual
CDX-NAHY – North American High Yield Credit Default Swap Index
CMBS – Commercial Mortgage-Backed Securities
CME – Chicago Mercantile Exchange
COP – Certificate of Participation
CPI – Consumer Price Index
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 | 43 |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $1,437,616,996) | | $ | 1,408,595,980 | |
Affiliated issuers (cost $33,809,693) | | | 33,809,693 | |
Cash collateral due from broker | | | 13,069,361 | |
Unrealized appreciation on inflation swaps | | | 30,069,127 | |
Interest receivable | | | 17,251,719 | |
Receivable for terminated centrally cleared inflation swaps | | | 1,452,089 | |
Receivable for capital stock sold | | | 956,904 | |
Unrealized appreciation on interest rate swaps | | | 886,085 | |
Receivable for investment securities sold | | | 122,000 | |
Affiliated dividends receivable | | | 65,035 | |
Receivable due from Adviser | | | 21,877 | |
| | | | |
Total assets | | | 1,506,299,870 | |
| | | | |
| Liabilities | |
Due to custodian | | | 25,872,227 | |
Cash collateral due to broker | | | 21,858,394 | |
Payable for investment securities purchased | | | 21,447,622 | |
Payable for variation margin on centrally cleared swaps | | | 1,287,717 | |
Payable for capital stock redeemed | | | 1,159,320 | |
Advisory fee payable | | | 598,270 | |
Unrealized depreciation on inflation swaps | | | 145,159 | |
Distribution fee payable | | | 81,797 | |
Administrative fee payable | | | 56,982 | |
Transfer Agent fee payable | | | 13,362 | |
Directors’ fees payable | | | 3,369 | |
Accrued expenses | | | 349,930 | |
| | | | |
Total liabilities | | | 72,874,149 | |
| | | | |
Net Assets | | $ | 1,433,425,721 | |
| | | | |
| Composition of Net Assets | |
Capital stock, at par | | $ | 133,637 | |
Additional paid-in capital | | | 1,484,474,752 | |
Accumulated loss | | | (51,182,668 | ) |
| | | | |
Net Assets | | $ | 1,433,425,721 | |
| | | | |
Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 141,375,200 | | | | 13,140,891 | | | $ | 10.76 | * |
| |
| C | | $ | 14,848,381 | | | | 1,381,840 | | | $ | 10.75 | |
| |
| Advisor | | $ | 553,108,445 | | | | 51,377,178 | | | $ | 10.77 | |
| |
| 1 | | $ | 484,090,020 | | | | 45,295,860 | | | $ | 10.69 | |
| |
| 2 | | $ | 240,003,675 | | | | 22,440,738 | | | $ | 10.69 | |
| |
| * | The maximum offering price per share for Class A shares was $11.09 which reflects a sales charge of 3.00%. |
See notes to financial statements.
| | |
| |
44 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended October 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Interest | | $ | 47,134,401 | | | | | |
Dividends—Affiliated issuers | | | 661,281 | | | $ | 47,795,682 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 7,480,630 | | | | | |
Distribution fee—Class A | | | 399,873 | | | | | |
Distribution fee—Class C | | | 170,006 | | | | | |
Distribution fee—Class 1 | | | 480,606 | | | | | |
Transfer agency—Class A | | | 71,118 | | | | | |
Transfer agency—Class C | | | 7,641 | | | | | |
Transfer agency—Advisor Class | | | 258,311 | | | | | |
Transfer agency—Class 1 | | | 27,119 | | | | | |
Transfer agency—Class 2 | | | 14,252 | | | | | |
Custody and accounting | | | 141,702 | | | | | |
Administrative | | | 97,585 | | | | | |
Audit and tax | | | 92,705 | | | | | |
Printing | | | 87,167 | | | | | |
Registration fees | | | 57,268 | | | | | |
Legal | | | 54,955 | | | | | |
Directors’ fees | | | 40,324 | | | | | |
Miscellaneous | | | 121,916 | | | | | |
| | | | | | | | |
Total expenses | | | 9,603,178 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (1,034,672 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 8,568,506 | |
| | | | | | | | |
Net investment income | | | | | | | 39,227,176 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions | | | | | | | (33,076,199 | ) |
Swaps | | | | | | | 20,996,638 | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments | | | | | | | 118,487,572 | |
Swaps | | | | | | | (34,173,182 | ) |
| | | | | | | | |
Net gain on investment transactions | | | | | | | 72,234,829 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 111,462,005 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 45 |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 39,227,176 | | | $ | 41,976,874 | |
Net realized loss on investment transactions | | | (12,079,561 | ) | | | (2,159,509 | ) |
Net change in unrealized appreciation (depreciation) of investments | | | 84,314,390 | | | | 27,161,690 | |
| | | | | | | | |
Net increase in net assets from operations | | | 111,462,005 | | | | 66,979,055 | |
Distributions to Shareholders | | | | | | | | |
Class A | | | (3,957,926 | ) | | | (4,978,141 | ) |
Class C | | | (288,658 | ) | | | (322,763 | ) |
Advisor Class | | | (15,990,481 | ) | | | (19,005,152 | ) |
Class 1 | | | (12,678,473 | ) | | | (13,585,528 | ) |
Class 2 | | | (6,928,342 | ) | | | (7,460,044 | ) |
| Capital Stock Transactions | | | | | | | | |
Net decrease | | | (216,488,578 | ) | | | (636,425,654 | ) |
| | | | | | | | |
Total decrease | | | (144,870,453 | ) | | | (614,798,227 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 1,578,296,174 | | | | 2,193,094,401 | |
| | | | | | | | |
End of period | | $ | 1,433,425,721 | | | $ | 1,578,296,174 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
46 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024
NOTE A
Significant Accounting Policies
AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of seven 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. Class C shares automatically convert to Class A shares eight 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 approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the
| | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 47 |
NOTES TO FINANCIAL STATEMENTS (continued)
“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 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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48 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
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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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 49 |
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 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.
Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.
Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Long-Term Municipal Bonds | | $ | – 0 | – | | $ | 1,348,953,749 | | | $ | 0 | (a) | | $ | 1,348,953,749 | |
Short-Term Municipal Notes | | | – 0 | – | | | 35,230,000 | | | | – 0 | – | | | 35,230,000 | |
Corporates – Investment Grade | | | – 0 | – | | | 11,163,883 | | | | – 0 | – | | | 11,163,883 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 7,551,235 | | | | – 0 | – | | | 7,551,235 | |
Corporates – Non-Investment Grade | | | – 0 | – | | | 3,306,581 | | | | – 0 | – | | | 3,306,581 | |
Asset-Backed Securities | | | – 0 | – | | | 2,354,973 | | | | – 0 | – | | | 2,354,973 | |
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50 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Collateralized Mortgage Obligations | | $ | – 0 | – | | $ | 35,559 | | | $ | – 0 | – | | $ | 35,559 | |
Short-Term Investments | | | 33,809,693 | | | | – 0 | – | | | – 0 | – | | | 33,809,693 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 33,809,693 | | | | 1,408,595,980 | | | | 0 | (a) | | | 1,442,405,673 | |
Other Financial Instruments(b): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Centrally Cleared Inflation (CPI) Swaps | | | – 0 | – | | | 25,776,232 | | | | – 0 | – | | | 25,776,232 | (c) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | 2,045,939 | | | | – 0 | – | | | 2,045,939 | (c) |
Inflation (CPI) Swaps | | | – 0 | – | | | 30,069,127 | | | | – 0 | – | | | 30,069,127 | |
Interest Rate Swaps | | | – 0 | – | | | 886,085 | | | | – 0 | – | | | 886,085 | |
Liabilities: | | | | | | | | | | | | | | | | |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | (1,437,389 | ) | | | – 0 | – | | | (1,437,389 | )(c) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | (91,772 | ) | | | – 0 | – | | | (91,772 | )(c) |
Credit Default Swaps | | | – 0 | – | | | (145,159 | ) | | | – 0 | – | | | (145,159 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 33,809,693 | | | $ | 1,465,699,043 | | | $ | 0 | (a) | | $ | 1,499,508,736 | |
| | | | | | | | | | | | | | | | |
| (a) | The Fund held securities with zero market value at period end. |
| (b) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments 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 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
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 51 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 real estate investment trust (“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.
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.
7. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
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
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52 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
and/or expense reimbursement agreement will remain in effect until January 31, 2025 and then may be extended by the Adviser for additional one-year terms. For the year ended October 31, 2024, such reimbursements/waivers amounted to $1,013,507.
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2024, the reimbursement for such services amounted to $97,585.
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 $95,095 for the year ended October 31, 2024.
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 $45 from the sale of Class A shares and received $2,300 and $927 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2024, such waiver amounted to $21,165.
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 53 |
NOTES TO FINANCIAL STATEMENTS (continued)
A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
10/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
10/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 6,662 | | | $ | 470,517 | | | $ | 443,369 | | | $ | 33,810 | | | $ | 661 | |
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the 1940 Act. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class and Class 2 shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $523,782 and $1,796,873 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, and the share class is active, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 352,488,594 | | | $ | 633,422,077 | |
U.S. government securities | | | 6,751,594 | | | | 114,377 | |
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54 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 1,471,781,964 | |
| | | | |
Gross unrealized appreciation | | $ | 71,682,922 | |
Gross unrealized depreciation | | | (42,643,571 | ) |
| | | | |
Net unrealized appreciation | | $ | 29,039,351 | |
| | | | |
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:
The Fund may enter into swaps for investment purposes or 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, rates or indexes for a specified amount of an underlying asset or inflation. 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, inflation 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
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 55 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024, the Fund held interest rate swaps for hedging purposes.
Inflation (CPI) Swaps:
Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.
During the year ended October 31, 2024, 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
| | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 57 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024, 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
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NOTES TO FINANCIAL STATEMENTS (continued)
default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.
The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.
During the year ended October 31, 2024, 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 | | $ | 52,890 | * |
| | | | |
Interest rate contracts | | Receivable for variation margin on centrally cleared swaps | | $ | 27,819,378 | * | | Payable for variation margin on centrally cleared swaps | | | 91,772 | |
| | | | |
Interest rate contracts | | Unrealized appreciation on interest rate swaps | | | 886,085 | | | | | | | |
| | | | |
Interest rate contracts | | Unrealized appreciation on inflation swaps | | | 30,069,127 | | | Unrealized depreciation on inflation swaps | | | 145,159 | |
| | | | | | | | | | | | |
Total | | | | $ | 58,774,590 | | | | | $ | 289,821 | |
| | | | | | | | | | | | |
| * | 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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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) | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | $ | 22,413,900 | | | $ | (34,062,321 | ) |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (1,417,262 | ) | | | (110,861 | ) |
| | | | | | | | | | |
Total | | | | $ | 20,996,638 | | | $ | (34,173,182 | ) |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2024:
| | | | |
Interest Rate Swaps: | | | | |
Average notional amount | | $ | 11,075,000 | |
Inflation Swaps: | | | | |
Average notional amount | | $ | 1,031,884,615 | |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 91,838,462 | |
Centrally Cleared Inflation Swaps: | | | | |
Average notional amount | | $ | 447,791,538 | |
Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 1,214,503 | (a) |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 15,330,692 | |
Average notional amount of sale contracts | | $ | 1,554,300 | (b) |
| (a) | Positions were open for nine months during the year. |
| (b) | Positions were open for one month during the year. |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2024. Exchange-traded derivatives
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NOTES TO FINANCIAL STATEMENTS (continued)
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 | | $ | 5,646,753 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (5,248,397 | ) | | $ | 398,356 | |
Barclays Bank PLC | | | 6,921,665 | | | | (145,159 | ) | | | (6,631,500 | ) | | | – 0 | – | | | 145,006 | |
Citibank, NA | | | 3,491,073 | | | | – 0 | – | | | (3,491,073 | ) | | | – 0 | – | | | – 0 | – |
Goldman Sachs International | | | 3,486,604 | | | | – 0 | – | | | – 0 | – | | | (3,486,604 | ) | | | – 0 | – |
JPMorgan Chase Bank, NA | | | 11,409,117 | | | | – 0 | – | | | (11,352,000 | ) | | | – 0 | – | | | 57,117 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 30,955,212 | | | $ | (145,159 | ) | | $ | (21,474,573 | ) | | $ | (8,735,001 | ) | | $ | 600,479 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Liabilities
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net Amount
of Derivative
Liabilities | |
Barclays Bank PLC | | $ | 145,159 | | | $ | (145,159 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 145,159 | | | $ | (145,159 | ) | | $ | – 0 | – | | $ | – 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. |
NOTE E
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for Class A, Class C, Advisor Class, Class 1 and Class 2 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | |
Shares sold | | | 2,136,396 | | | | 3,487,357 | | | | | | | $ | 22,889,300 | | | $ | 36,572,812 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 228,720 | | | | 292,953 | | | | | | | | 2,444,857 | | | | 3,073,982 | | | | | |
| | | | | |
Shares converted from Class C | | | 54,227 | | | | 55,084 | | | | | | | | 579,133 | | | | 577,398 | | | | | |
| | | | | |
Shares redeemed | | | (7,361,147 | ) | | | (15,928,322 | ) | | | | | | | (78,759,878 | ) | | | (167,072,852 | ) | | | | |
| | | | | |
Net decrease | | | (4,941,804 | ) | | | (12,092,928 | ) | | | | | | $ | (52,846,588 | ) | | $ | (126,848,660 | ) | | | | |
| | | | | |
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NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class C | | | | | |
Shares sold | | | 144,757 | | | | 336,732 | | | | | | | $ | 1,551,558 | | | $ | 3,519,598 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 20,352 | | | | 24,027 | | | | | | | | 217,500 | | | | 252,105 | | | | | |
| | | | | |
Shares converted to Class A | | | (54,288 | ) | | | (55,153 | ) | | | | | | | (579,133 | ) | | | (577,398 | ) | | | | |
| | | | | |
Shares redeemed | | | (565,210 | ) | | | (1,010,750 | ) | | | | | | | (6,057,587 | ) | | | (10,597,238 | ) | | | | |
| | | | | |
Net decrease | | | (454,389 | ) | | | (705,144 | ) | | | | | | $ | (4,867,662 | ) | | $ | (7,402,933 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | |
Shares sold | | | 19,040,101 | | | | 27,383,477 | | | | | | | $ | 204,074,117 | | | $ | 287,848,170 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 909,873 | | | | 1,175,811 | | | | | | | | 9,738,632 | | | | 12,350,382 | | | | | |
| | | | | |
Shares redeemed | | | (27,947,357 | ) | | | (61,754,813 | ) | | | | | | | (299,048,243 | ) | | | (649,022,834 | ) | | | | |
| | | | | |
Net decrease | | | (7,997,383 | ) | | | (33,195,525 | ) | | | | | | $ | (85,235,494 | ) | | $ | (348,824,282 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class 1 | | | | | |
Shares sold | | | 8,014,259 | | | | 7,223,576 | | | | | | | $ | 85,581,583 | | | $ | 75,546,207 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 827,451 | | | | 940,761 | | | | | | | | 8,790,476 | | | | 9,816,809 | | | | | |
| | | | | |
Shares redeemed | | | (12,980,418 | ) | | | (17,097,406 | ) | | | | | | | (138,177,287 | ) | | | (178,630,464 | ) | | | | |
| | | | | |
Net decrease | | | (4,138,708 | ) | | | (8,933,069 | ) | | | | | | $ | (43,805,228 | ) | | $ | (93,267,448 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class 2 | | | | | |
Shares sold | | | 2,897,826 | | | | 2,589,026 | | | | | | | $ | 30,871,528 | | | $ | 27,123,232 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 373,686 | | | | 388,681 | | | | | | | | 3,973,568 | | | | 4,058,383 | | | | | |
| | | | | |
Shares redeemed | | | (6,052,907 | ) | | | (8,712,862 | ) | | | | | | | (64,578,702 | ) | | | (91,263,946 | ) | | | | |
| | | | | |
Net decrease | | | (2,781,395 | ) | | | (5,735,155 | ) | | | | | | $ | (29,733,606 | ) | | $ | (60,082,331 | ) | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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
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NOTES TO FINANCIAL STATEMENTS (continued)
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. 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 effects of potential central bank monetary policy, and government fiscal policy, initiatives and 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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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 63 |
NOTES TO FINANCIAL STATEMENTS (continued)
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, reference rate or index, 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 go down.
Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.
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NOTES TO FINANCIAL STATEMENTS (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.
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 year ended October 31, 2024.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended October 31, 2024 and October 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 1,601,312 | | | $ | 7,006,894 | |
| | | | | | | | |
Total taxable distributions | | $ | 1,601,312 | | | $ | 7,006,894 | |
Tax-exempt distributions | | | 38,242,568 | | | | 38,344,734 | |
| | | | | | | | |
Total distributions paid | | $ | 39,843,880 | | | $ | 45,351,628 | |
| | | | | | | | |
As of October 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed tax-exempt income | | $ | 26,873 | |
Accumulated capital and other losses | | | (80,249,826 | )(a) |
Unrealized appreciation (depreciation) | | | 29,039,663 | (b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (51,183,290 | ) |
| | | | |
| (a) | As of October 31, 2024, the Fund had a net capital loss carryforward of $80,249,826. |
| (b) | The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of bond restructuring. |
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, 2024, the Fund had a net short-term capital loss carryforward of $73,839,602 and
| | |
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 65 |
NOTES TO FINANCIAL STATEMENTS (continued)
a net long-term capital loss carryforward of $6,410,224, which may be carried forward for an indefinite period.
During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.
NOTE I
Recent Accounting Pronouncements
In 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.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
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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66 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.28 | | | | $ 10.24 | | | | $ 11.03 | | | | $ 10.30 | | | | $ 10.24 | |
| | | | |
Income From Investment Operations | |
| | | | | |
Net investment income(a)(b) | | | .26 | | | | .21 | | | | .13 | | | | .16 | | | | .22 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .48 | | | | .06 | | | | (.79 | ) | | | .75 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .74 | | | | .27 | | | | (.66 | ) | | | .91 | | | | .29 | |
| | | | |
Less: Dividends | |
| | | | | |
Dividends from net investment income | | | (.26 | ) | | | (.23 | ) | | | (.13 | ) | | | (.18 | ) | | | (.23 | ) |
| | | | |
Net asset value, end of period | | | $ 10.76 | | | | $ 10.28 | | | | $ 10.24 | | | | $ 11.03 | | | | $ 10.30 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e)* | | | 7.29 | % | | | 2.60 | % | | | (6.06 | )% | | | 8.89 | % | | | 2.85 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $141,375 | | | | $185,881 | | | | $308,986 | | | | $364,599 | | | | $138,454 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .84 | % | | | .85 | % | | | .82 | % | | | .84 | % | | | .85 | % |
| | | | | |
Net investment income(b) | | | 2.44 | % | | | 2.02 | % | | | 1.24 | % | | | 1.51 | % | | | 2.14 | % |
| | | | | |
Portfolio turnover rate | | | 25 | % | | | 26 | % | | | 27 | % | | | 10 | % | | | 29 | % |
See footnote summary on page 72.
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 67 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.27 | | | | $ 10.23 | | | | $ 11.02 | | | | $ 10.29 | | | | $ 10.22 | |
| | | | |
Income From Investment Operations | |
| | | | | |
Net investment income(a)(b) | | | .18 | | | | .13 | | | | .06 | | | | .08 | | | | .14 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .48 | | | | .06 | | | | (.80 | ) | | | .74 | | | | .08 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .01 | | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .66 | | | | .19 | | | | (.74 | ) | | | .83 | | | | .22 | |
| | | | |
Less: Dividends | |
| | | | | |
Dividends from net investment income | | | (.18 | ) | | | (.15 | ) | | | (.05 | ) | | | (.10 | ) | | | (.15 | ) |
| | | | |
Net asset value, end of period | | | $ 10.75 | | | | $ 10.27 | | | | $ 10.23 | | | | $ 11.02 | | | | $ 10.29 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e)* | | | 6.47 | % | | | 1.83 | % | | | (6.75 | )% | | | 8.12 | % | | | 2.16 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $14,848 | | | | $18,850 | | | | $25,986 | | | | $20,086 | | | | $6,710 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | 1.50 | % | | | 1.51 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | 1.59 | % | | | 1.60 | % | | | 1.58 | % | | | 1.59 | % | | | 1.61 | % |
| | | | | |
Net investment income(b) | | | 1.69 | % | | | 1.28 | % | | | .54 | % | | | .75 | % | | | 1.43 | % |
| | | | | |
Portfolio turnover rate | | | 25 | % | | | 26 | % | | | 27 | % | | | 10 | % | | | 29 | % |
See footnote summary on page 72.
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68 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.29 | | | | $ 10.25 | | | | $ 11.04 | | | | $ 10.31 | | | | $ 10.24 | |
| | | | |
Income From Investment Operations | |
| | | | | |
Net investment income(a)(b) | | | .29 | | | | .24 | | | | .16 | | | | .18 | | | | .25 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .48 | | | | .06 | | | | (.80 | ) | | | .75 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .01 | | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .77 | | | | .30 | | | | (.64 | ) | | | .94 | | | | .32 | |
| | | | |
Less: Dividends | |
| | | | | |
Dividends from net investment income | | | (.29 | ) | | | (.26 | ) | | | (.15 | ) | | | (.21 | ) | | | (.25 | ) |
| | | | |
Net asset value, end of period | | | $ 10.77 | | | | $ 10.29 | | | | $ 10.25 | | | | $ 11.04 | | | | $ 10.31 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e)* | | | 7.56 | % | | | 2.85 | % | | | (5.82 | )% | | | 9.14 | % | | | 3.19 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $553,109 | | | | $610,806 | | | | $948,603 | | | | $837,132 | | | | $185,829 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .59 | % | | | .60 | % | | | .58 | % | | | .59 | % | | | .60 | % |
| | | | | |
Net investment income(b) | | | 2.69 | % | | | 2.28 | % | | | 1.52 | % | | | 1.70 | % | | | 2.43 | % |
| | | | | |
Portfolio turnover rate | | | 25 | % | | | 26 | % | | | 27 | % | | | 10 | % | | | 29 | % |
See footnote summary on page 72.
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 69 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class 1 | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.21 | | | | $ 10.18 | | | | $ 10.97 | | | | $ 10.25 | | | | $ 10.19 | |
| | | | |
Income From Investment Operations | |
| | | | | |
Net investment income(a)(b) | | | .28 | | | | .23 | | | | .15 | | | | .18 | | | | .23 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .48 | | | | .05 | | | | (.79 | ) | | | .74 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .76 | | | | .28 | | | | (.64 | ) | | | .92 | | | | .30 | |
| | | | |
Less: Dividends | |
| | | | | |
Dividends from net investment income | | | (.28 | ) | | | (.25 | ) | | | (.15 | ) | | | (.20 | ) | | | (.24 | ) |
| | | | |
Net asset value, end of period | | | $ 10.69 | | | | $ 10.21 | | | | $ 10.18 | | | | $ 10.97 | | | | $ 10.25 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e)* | | | 7.51 | % | | | 2.71 | % | | | (5.92 | )% | | | 9.01 | % | | | 3.04 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $484,090 | | | | $504,943 | | | | $594,155 | | | | $555,642 | | | | $444,500 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .60 | % | | | .61 | % | | | .60 | % | | | .60 | % | | | .60 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .65 | % | | | .66 | % | | | .64 | % | | | .66 | % | | | .67 | % |
| | | | | |
Net investment income(b) | | | 2.59 | % | | | 2.19 | % | | | 1.43 | % | | | 1.72 | % | | | 2.33 | % |
| | | | | |
Portfolio turnover rate | | | 25 | % | | | 26 | % | | | 27 | % | | | 10 | % | | | 29 | % |
See footnote summary on page 72.
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70 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class 2 | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.22 | | | | $ 10.19 | | | | $ 10.98 | | | | $ 10.25 | | | | $ 10.19 | |
| | | | |
Income From Investment Operations | |
| | | | | |
Net investment income(a)(b) | | | .29 | | | | .24 | | | | .17 | | | | .20 | | | | .24 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .47 | | | | .05 | | | | (.80 | ) | | | .74 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .77 | | | | .29 | | | | (.63 | ) | | | .94 | | | | .31 | |
| | | | |
Less: Dividends | |
| | | | | |
Dividends from net investment income | | | (.29 | ) | | | (.26 | ) | | | (.16 | ) | | | (.21 | ) | | | (.25 | ) |
| | | | |
Net asset value, end of period | | | $ 10.69 | | | | $ 10.22 | | | | $ 10.19 | | | | $ 10.98 | | | | $ 10.25 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e)* | | | 7.51 | % | | | 2.81 | % | | | (5.83 | )% | | | 9.21 | % | | | 3.14 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $240,004 | | | | $257,816 | | | | $315,364 | | | | $238,315 | | | | $215,763 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(f) | | | .50 | % | | | .51 | % | | | .50 | % | | | .50 | % | | | .50 | % |
| | | | | |
Expenses, before waivers/reimbursements(f) | | | .55 | % | | | .56 | % | | | .55 | % | | | .56 | % | | | .57 | % |
| | | | | |
Net investment income(b) | | | 2.69 | % | | | 2.28 | % | | | 1.56 | % | | | 1.84 | % | | | 2.43 | % |
| | | | | |
Portfolio turnover rate. | | | 25 | % | | | 26 | % | | | 27 | % | | | 10 | % | | | 29 | % |
See footnote summary on page 72.
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 71 |
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: |
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
Class A | |
Net of waivers/reimbursements | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % | | | .75 | % |
Before waivers/reimbursements | | | .84 | % | | | .84 | % | | | .82 | % | | | .84 | % | | | .85 | % |
Class C | |
Net of waivers/reimbursements | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % |
Before waivers/reimbursements | | | 1.59 | % | | | 1.59 | % | | | 1.58 | % | | | 1.59 | % | | | 1.61 | % |
Advisor Class | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .59 | % | | | .59 | % | | | .58 | % | | | .59 | % | | | .60 | % |
Class 1 | |
Net of waivers/reimbursements | | | .60 | % | | | .60 | % | | | .60 | % | | | .60 | % | | | .60 | % |
Before waivers/reimbursements | | | .65 | % | | | .65 | % | | | .64 | % | | | .66 | % | | | .67 | % |
Class 2 | |
Net of waivers/reimbursements | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .55 | % | | | .55 | % | | | .55 | % | | | .56 | % | | | .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. |
See notes to financial statements.
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72 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
AB Municipal Bond Inflation Strategy
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Municipal Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 73 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of the AB investment companies since 1968.
New York, New York
December 23, 2024
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74 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
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 July 30-31, 2024 (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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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 75 |
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 2022 and 2023 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
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76 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
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 Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2024 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 noted the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 77 |
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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year and reflected the impact of 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.
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78 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
NOTES
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| abfunds.com | | AB MUNICIPAL BOND INFLATION STRATEGY | 79 |
NOTES
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80 | AB MUNICIPAL BOND INFLATION STRATEGY | | abfunds.com |
AB MUNICIPAL BOND INFLATION STRATEGY
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
MBIS-0151-1024 
OCT 10.31.24
ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CORPORATES - INVESTMENT GRADE – 31.6% | | | | | | | | | | | | |
Industrial – 15.4% | | | | | |
Basic – 0.6% | | | | | | | | | | | | |
Freeport Indonesia PT
4.763%, 04/14/2027(a) | | | U.S.$ | | | | 390 | | | $ | 388,050 | |
Glencore Funding LLC
5.338%, 04/04/2027(a) | | | | | | | 322 | | | | 325,564 | |
6.50%, 10/06/2033(a) | | | | | | | 94 | | | | 100,991 | |
Nexa Resources SA
6.75%, 04/09/2034(a) | | | | | | | 200 | | | | 205,500 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,020,105 | |
| | | | | | | | | | | | |
Capital Goods – 1.8% | |
Boeing Co. (The)
3.25%, 02/01/2028 | | | | | | | 126 | | | | 118,323 | |
3.625%, 02/01/2031 | | | | | | | 66 | | | | 59,582 | |
5.15%, 05/01/2030 | | | | | | | 94 | | | | 92,864 | |
6.298%, 05/01/2029(a) | | | | | | | 90 | | | | 93,243 | |
6.528%, 05/01/2034(a) | | | | | | | 131 | | | | 138,104 | |
Caterpillar Financial Services Corp.
4.45%, 10/16/2026 | | | | | | | 417 | | | | 417,396 | |
CNH Industrial Capital LLC
5.10%, 04/20/2029 | | | | | | | 266 | | | | 267,841 | |
Embraer Netherlands Finance BV
5.40%, 02/01/2027 | | | | | | | 540 | | | | 546,242 | |
Flowserve Corp.
2.80%, 01/15/2032 | | | | | | | 425 | | | | 360,612 | |
Regal Rexnord Corp.
6.05%, 02/15/2026 | | | | | | | 401 | | | | 405,050 | |
Waste Management, Inc.
4.50%, 03/15/2028 | | | | | | | 402 | | | | 401,317 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,900,574 | |
| | | | | | | | | | | | |
Communications - Media – 1.5% | |
Charter Communications Operating LLC/Charter Communications Operating Capital
2.25%, 01/15/2029 | | | | | | | 97 | | | | 85,142 | |
5.125%, 07/01/2049 | | | | | | | 198 | | | | 155,283 | |
6.10%, 06/01/2029 | | | | | | | 183 | | | | 186,752 | |
Discovery Communications LLC
5.20%, 09/20/2047 | | | | | | | 178 | | | | 139,103 | |
5.30%, 05/15/2049 | | | | | | | 81 | | | | 63,070 | |
Fox Corp.
6.50%, 10/13/2033 | | | | | | | 375 | | | | 399,304 | |
Paramount Global
7.875%, 07/30/2030 | | | | | | | 378 | | | | 407,136 | |
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Prosus NV
3.061%, 07/13/2031(a) | | | U.S.$ | | | | 361 | | | $ | 307,301 | |
3.257%, 01/19/2027(a) | | | | | | | 219 | | | | 209,145 | |
Tencent Holdings Ltd.
3.24%, 06/03/2050(a) | | | | | | | 328 | | | | 231,037 | |
Warnermedia Holdings, Inc.
3.755%, 03/15/2027 | | | | | | | 207 | | | | 199,302 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,382,575 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.1% | | | | | | | | | | | | |
AT&T, Inc.
4.50%, 05/15/2035 | | | | | | | 109 | | | | 102,147 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Automotive – 1.5% | | | | | | | | | | | | |
Ford Motor Co.
3.25%, 02/12/2032 | | | | | | | 536 | | | | 448,836 | |
General Motors Financial Co., Inc.
5.75%, 02/08/2031 | | | | | | | 442 | | | | 450,208 | |
Harley-Davidson Financial Services, Inc.
3.05%, 02/14/2027(a) | | | | | | | 501 | | | | 473,916 | |
6.50%, 03/10/2028(a) | | | | | | | 20 | | | | 20,517 | |
Hyundai Capital America 5.25%, 01/08/2027(a) | | | | | | | 103 | | | | 103,764 | |
5.30%, 03/19/2027(a) | | | | | | | 82 | | | | 82,854 | |
6.10%, 09/21/2028(a) | | | | | | | 234 | | | | 242,227 | |
Nissan Motor Co., Ltd.
4.345%, 09/17/2027(a) | | | | | | | 522 | | | | 501,308 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,323,630 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.1% | | | | | | | | | | | | |
Hasbro, Inc.
6.05%, 05/14/2034 | | | | | | | 104 | | | | 106,181 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Other – 0.6% | | | | | | | | | | | | |
DR Horton, Inc.
5.00%, 10/15/2034 | | | | | | | 252 | | | | 245,937 | |
Marriott International, Inc./MD
4.90%, 04/15/2029 | | | | | | | 384 | | | | 384,764 | |
5.35%, 03/15/2035 | | | | | | | 24 | | | | 23,880 | |
MDC Holdings, Inc.
6.00%, 01/15/2043 | | | | | | | 346 | | | | 354,245 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,008,826 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 2.9% | |
Altria Group, Inc.
3.40%, 05/06/2030 | | | | | | | 750 | | | | 691,755 | |
| | |
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2 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
BAT Capital Corp.
2.259%, 03/25/2028 | | | U.S.$ | | | | 864 | | | $ | 792,651 | |
Cargill, Inc.
5.125%, 10/11/2032(a) | | | | | | | 248 | | | | 252,087 | |
CVS Health Corp.
5.70%, 06/01/2034 | | | | | | | 297 | | | | 298,375 | |
General Mills, Inc.
4.70%, 01/30/2027 | | | | | | | 123 | | | | 123,093 | |
Imperial Brands Finance PLC
5.875%, 07/01/2034(a) | | | | | | | 413 | | | | 416,469 | |
JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL
6.75%, 03/15/2034(a) | | | | | | | 212 | | | | 227,563 | |
Ochsner LSU Health System of North Louisiana
Series 2021
2.51%, 05/15/2031 | | | | | | | 520 | | | | 398,622 | |
Philip Morris International, Inc.
5.375%, 02/15/2033 | | | | | | | 469 | | | | 475,289 | |
Pilgrim’s Pride Corp.
6.875%, 05/15/2034 | | | | | | | 349 | | | | 378,648 | |
Roche Holdings, Inc.
4.203%, 09/09/2029(a) | | | | | | | 417 | | | | 409,940 | |
Tyson Foods, Inc.
5.70%, 03/15/2034 | | | | | | | 143 | | | | 145,883 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,610,375 | |
| | | | | | | | | | | | |
Energy – 3.2% | |
Columbia Pipelines Holding Co., LLC
5.097%, 10/01/2031(a) | | | | | | | 132 | | | | 128,989 | |
Continental Resources, Inc./OK
2.875%, 04/01/2032(a) | | | | | | | 550 | | | | 454,718 | |
5.75%, 01/15/2031(a) | | | | | | | 237 | | | | 237,083 | |
Devon Energy Corp.
5.20%, 09/15/2034 | | | | | | | 421 | | | | 404,804 | |
Energy Transfer LP
5.60%, 09/01/2034 | | | | | | | 414 | | | | 417,076 | |
Marathon Oil Corp.
6.80%, 03/15/2032 | | | | | | | 650 | | | | 714,578 | |
Occidental Petroleum Corp.
5.20%, 08/01/2029 | | | | | | | 128 | | | | 127,530 | |
5.375%, 01/01/2032 | | | | | | | 136 | | | | 134,201 | |
6.625%, 09/01/2030 | | | | | | | 138 | | | | 145,009 | |
ONEOK, Inc.
6.05%, 09/01/2033 | | | | | | | 183 | | | | 190,230 | |
Ovintiv, Inc.
6.50%, 02/01/2038 | | | | | | | 43 | | | | 44,281 | |
| | |
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Plains All American Pipeline LP/PAA Finance Corp.
5.70%, 09/15/2034 | | | U.S.$ | | | | 414 | | | $ | 417,714 | |
Saudi Arabian Oil Co.
5.75%, 07/17/2054(a) | | | | | | | 412 | | | | 396,406 | |
Suncor Energy, Inc.
6.80%, 05/15/2038 | | | | | | | 291 | | | | 317,059 | |
Var Energi ASA
7.50%, 01/15/2028(a) | | | | | | | 314 | | | | 333,540 | |
8.00%, 11/15/2032(a) | | | | | | | 402 | | | | 455,723 | |
Williams Cos., Inc. (The)
4.80%, 11/15/2029 | | | | | | | 189 | | | | 187,828 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,106,769 | |
| | | | | | | | | | | | |
Other Industrial – 0.0% | |
LKQ Corp.
6.25%, 06/15/2033 | | | | | | | 26 | | | | 26,832 | |
| | | | | | | | | | | | |
|
Services – 0.5% | |
Booking Holdings, Inc.
4.50%, 11/15/2031 | | | EUR | | | | 320 | | | | 373,316 | |
Mastercard, Inc.
4.55%, 01/15/2035 | | | U.S.$ | | | | 298 | | | | 288,973 | |
Moody’s Corp.
5.00%, 08/05/2034 | | | | | | | 214 | | | | 212,673 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 874,962 | |
| | | | | | | | | | | | |
Technology – 1.9% | |
Apple, Inc.
4.10%, 08/08/2062 | | | | | | | 350 | | | | 289,859 | |
Broadcom, Inc.
4.15%, 02/15/2028 | | | | | | | 63 | | | | 61,853 | |
4.926%, 05/15/2037(a) | | | | | | | 410 | | | | 393,137 | |
5.05%, 07/12/2027 | | | | | | | 157 | | | | 158,534 | |
Entegris, Inc.
4.75%, 04/15/2029(a) | | | | | | | 395 | | | | 382,467 | |
Hewlett Packard Enterprise Co.
4.40%, 09/25/2027 | | | | | | | 171 | | | | 169,569 | |
Honeywell International, Inc.
4.125%, 11/02/2034 | | | EUR | | | | 410 | | | | 468,334 | |
Infor, Inc.
1.75%, 07/15/2025(a) | | | U.S.$ | | | | 279 | | | | 271,576 | |
NXP BV/NXP Funding LLC
5.55%, 12/01/2028 | | | | | | | 277 | | | | 282,967 | |
NXP BV/NXP Funding LLC/NXP USA, Inc.
3.40%, 05/01/2030 | | | | | | | 298 | | | | 274,705 | |
TSMC Arizona Corp.
3.875%, 04/22/2027 | | | | | | | 241 | | | | 236,688 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,989,689 | |
| | | | | | | | | | | | |
| | |
| |
4 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Transportation - Airlines – 0.4% | |
AS Mileage Plan IP Ltd.
5.021%, 10/20/2029(a) | | | U.S.$ | | | | 129 | | | $ | 125,170 | |
5.308%, 10/20/2031(a) | | | | | | | 164 | | | | 158,467 | |
Delta Air Lines, Inc./SkyMiles IP Ltd.
4.75%, 10/20/2028(a) | | | | | | | 401 | | | | 396,280 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 679,917 | |
| | | | | | | | | | | | |
Transportation - Railroads – 0.1% | |
Lima Metro Line 2 Finance Ltd.
5.875%, 07/05/2034(a) | | | | | | | 145 | | | | 144,065 | |
| | | | | | | | | | | | |
|
Transportation - Services – 0.2% | |
Ryder System, Inc.
5.375%, 03/15/2029 | | | | | | | 347 | | | | 352,715 | |
| | | | | | | | | | | | |
| | | | 24,629,362 | |
| | | | | |
| | | |
Financial Institutions – 14.2% | | | | | | | | | | | | |
Banking – 11.4% | |
Ally Financial, Inc.
6.992%, 06/13/2029 | | | | | | | 270 | | | | 281,734 | |
American Express Co.
5.098%, 02/16/2028 | | | | | | | 436 | | | | 439,248 | |
Banco Bilbao Vizcaya Argentaria SA
7.883%, 11/15/2034 | | | | | | | 200 | | | | 223,836 | |
Banco de Credito del Peru SA
3.125%, 07/01/2030(a) | | | | | | | 635 | | | | 618,617 | |
Banco Santander SA
4.175%, 03/24/2028 | | | | | | | 400 | | | | 392,196 | |
9.625%, 05/21/2033(b) | | | | | | | 200 | | | | 231,032 | |
Bank of America Corp.
2.687%, 04/22/2032 | | | | | | | 207 | | | | 179,519 | |
2.972%, 02/04/2033 | | | | | | | 535 | | | | 464,385 | |
Bank of Ireland Group PLC
5.601%, 03/20/2030(a) | | | | | | | 212 | | | | 215,774 | |
6.253%, 09/16/2026(a) | | | | | | | 215 | | | | 216,914 | |
Bank of New York Mellon Corp. (The)
5.606%, 07/21/2039 | | | | | | | 133 | | | | 135,075 | |
Barclays PLC
6.224%, 05/09/2034 | | | | | | | 232 | | | | 243,113 | |
BNP Paribas SA
5.497%, 05/20/2030(a) | | | | | | | 436 | | | | 442,004 | |
BPCE SA
6.508%, 01/18/2035(a) | | | | | | | 443 | | | | 455,510 | |
CaixaBank SA
6.037%, 06/15/2035(a) | | | | | | | 200 | | | | 205,126 | |
6.684%, 09/13/2027(a) | | | | | | | 235 | | | | 242,090 | |
| | |
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Capital One Financial Corp.
5.468%, 02/01/2029 | | U.S.$ | | | 118 | | | $ | 119,418 | |
6.377%, 06/08/2034 | | | | | 319 | | | | 334,264 | |
Citigroup, Inc.
4.542%, 09/19/2030 | | | | | 421 | | | | 412,420 | |
Series W
4.00%, 12/10/2025(b) | | | | | 329 | | | | 320,821 | |
Credit Agricole SA
6.251%, 01/10/2035(a) | | | | | 359 | | | | 370,922 | |
Danske Bank A/S
4.613%, 10/02/2030(a) | | | | | 208 | | | | 203,045 | |
Deutsche Bank AG/New York NY
3.961%, 11/26/2025 | | | | | 265 | | | | 264,656 | |
7.146%, 07/13/2027 | | | | | 298 | | | | 307,688 | |
Discover Bank
Series B
5.974%, 08/09/2028 | | | | | 250 | | | | 253,360 | |
Goldman Sachs Group, Inc. (The)
2.615%, 04/22/2032 | | | | | 500 | | | | 430,045 | |
2.65%, 10/21/2032 | | | | | 34 | | | | 28,992 | |
Series V
4.125%, 11/10/2026(b) | | | | | 268 | | | | 256,723 | |
HSBC Holdings PLC
4.583%, 06/19/2029 | | | | | 224 | | | | 220,255 | |
7.39%, 11/03/2028 | | | | | 315 | | | | 335,560 | |
7.399%, 11/13/2034 | | | | | 277 | | | | 309,368 | |
Intesa Sanpaolo SpA
7.20%, 11/28/2033(a) | | | | | 219 | | | | 241,956 | |
JPMorgan Chase & Co.
2.963%, 01/25/2033 | | | | | 619 | | | | 540,746 | |
KBC Group NV
4.932%, 10/16/2030(a) | | | | | 408 | | | | 403,879 | |
Lloyds Banking Group PLC
4.976%, 08/11/2033 | | | | | 304 | | | | 296,421 | |
5.462%, 01/05/2028 | | | | | 361 | | | | 365,195 | |
7.50%, 09/27/2025(b) | | | | | 381 | | | | 382,924 | |
Mizuho Financial Group, Inc.
5.376%, 05/26/2030 | | | | | 208 | | | | 211,143 | |
Morgan Stanley
0.406%, 10/29/2027 | | EUR | | | 309 | | | | 319,027 | |
Series G
2.239%, 07/21/2032 | | U.S.$ | | | 287 | | | | 240,322 | |
Nationwide Building Society
2.972%, 02/16/2028(a) | | | | | 398 | | | | 380,038 | |
NatWest Group PLC
3.032%, 11/28/2035 | | | | | 204 | | | | 177,262 | |
8.125%, 11/10/2033(b) | | | | | 249 | | | | 266,208 | |
| | |
| |
6 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
PNC Financial Services Group, Inc. (The)
Series R
8.317% (CME Term SOFR 3 Month + 3.30%), 12/02/2024(b)(c) | | | U.S.$ | | | | 62 | | | $ | 62,092 | |
Santander Holdings USA, Inc.
6.174%, 01/09/2030 | | | | | | | 50 | | | | 51,183 | |
6.499%, 03/09/2029 | | | | | | | 28 | | | | 28,870 | |
Santander UK Group Holdings PLC
6.833%, 11/21/2026 | | | | | | | 607 | | | | 616,779 | |
Skandinaviska Enskilda Banken AB
5.125%, 03/05/2027(a) | | | | | | | 207 | | | | 209,455 | |
Societe Generale SA
2.797%, 01/19/2028(a) | | | | | | | 537 | | | | 508,571 | |
Standard Chartered PLC
3.971%, 03/30/2026(a) | | | | | | | 268 | | | | 266,213 | |
6.364% (CME Term SOFR 3 Month + 1.51%), 01/30/2027(a)(b)(c) | | | | | | | 400 | | | | 368,556 | |
Sumitomo Mitsui Financial Group, Inc.
5.316%, 07/09/2029 | | | | | | | 263 | | | | 268,365 | |
Sumitomo Mitsui Trust Bank Ltd.
4.45%, 09/10/2027(a) | | | | | | | 201 | | | | 199,472 | |
Toronto-Dominion Bank (The)
5.146%, 09/10/2034 | | | | | | | 145 | | | | 142,503 | |
UBS Group AG
3.875%, 06/02/2026(a)(b) | | | | | | | 312 | | | | 295,392 | |
6.373%, 07/15/2026(a) | | | | | | | 369 | | | | 371,937 | |
UniCredit SpA
1.982%, 06/03/2027(a) | | | | | | | 205 | | | | 195,326 | |
2.569%, 09/22/2026(a) | | | | | | | 391 | | | | 381,268 | |
3.127%, 06/03/2032(a) | | | | | | | 356 | | | | 310,881 | |
Wells Fargo & Co.
3.35%, 03/02/2033 | | | | | | | 598 | | | | 531,616 | |
5.574%, 07/25/2029 | | | | | | | 98 | | | | 100,049 | |
Series BB
3.90%, 03/15/2026(b) | | | | | | | 273 | | | | 264,179 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,151,538 | |
| | | | | | | | | | | | |
Brokerage – 0.3% | |
Charles Schwab Corp. (The)
Series I
4.00%, 06/01/2026(b) | | | | | | | 469 | | | | 449,996 | |
| | | | | | | | | | | | |
|
Finance – 0.7% | |
Aircastle Ltd.
5.95%, 02/15/2029(a) | | | | | | | 62 | | | | 63,317 | |
Aviation Capital Group LLC
1.95%, 01/30/2026(a) | | | | | | | 449 | | | | 431,220 | |
1.95%, 09/20/2026(a) | | | | | | | 133 | | | | 125,603 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
3.50%, 11/01/2027(a) | | | U.S.$ | | | | 90 | | | $ | 85,730 | |
4.125%, 08/01/2025(a) | | | | | | | 5 | | | | 4,962 | |
4.875%, 10/01/2025(a) | | | | | | | 153 | | | | 152,715 | |
5.50%, 12/15/2024(a) | | | | | | | 294 | | | | 293,997 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,157,544 | |
| | | | | | | | | | | | |
Insurance – 1.2% | | | | | | | | | | | | |
Athene Global Funding
1.985%, 08/19/2028(a) | | | | | | | 142 | | | | 126,707 | |
2.55%, 11/19/2030(a) | | | | | | | 34 | | | | 29,222 | |
2.717%, 01/07/2029(a) | | | | | | | 53 | | | | 48,095 | |
5.583%, 01/09/2029(a) | | | | | | | 20 | | | | 20,290 | |
5.62%, 05/08/2026(a) | | | | | | | 250 | | | | 252,257 | |
MetLife Capital Trust IV
7.875%, 12/15/2037(a) | | | | | | | 699 | | | | 769,878 | |
Principal Life Global Funding II
5.10%, 01/25/2029(a) | | | | | | | 286 | | | | 289,037 | |
Swiss Re Finance Luxembourg SA
5.00%, 04/02/2049(a) | | | | | | | 200 | | | | 199,944 | |
Swiss Re Subordinated Finance PLC
5.698%, 04/05/2035(a) | | | | | | | 200 | | | | 200,978 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,936,408 | |
| | | | | | | | | | | | |
REITs – 0.6% | | | | | | | | | | | | |
American Tower Corp.
2.10%, 06/15/2030 | | | | | | | 147 | | | | 126,207 | |
5.20%, 02/15/2029 | | | | | | | 141 | | | | 142,526 | |
Crown Castle, Inc.
5.60%, 06/01/2029 | | | | | | | 100 | | | | 102,557 | |
GLP Capital LP/GLP Financing II, Inc.
3.25%, 01/15/2032 | | | | | | | 310 | | | | 267,645 | |
4.00%, 01/15/2031 | | | | | | | 114 | | | | 104,591 | |
Trust Fibra Uno
5.25%, 01/30/2026(a) | | | | | | | 252 | | | | 251,118 | |
| | | | | | | | | | | | |
| | | | 994,644 | |
| | | | | |
| | | | 22,690,130 | |
| | | | | |
Utility – 2.0% | |
Electric – 2.0% | |
AES Panama Generation Holdings SRL
4.375%, 05/31/2030(a) | | | | | | | 264 | | | | 233,638 | |
Alexander Funding Trust II
7.467%, 07/31/2028(a) | | | | | | | 184 | | | | 194,698 | |
American Electric Power Co., Inc.
6.95%, 12/15/2054 | | | | | | | 153 | | | | 159,813 | |
CenterPoint Energy Houston Electric LLC
5.05%, 03/01/2035 | | | | | | | 299 | | | | 298,103 | |
| | |
| |
8 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Duke Energy Carolinas NC Storm Funding LLC
Series A-2
2.617%, 07/01/2041 | | | U.S.$ | | | | 306 | | | $ | 238,053 | |
Electricite de France SA
9.125%, 03/15/2033(a)(b) | | | | | | | 283 | | | | 321,318 | |
Enel Finance International NV
5.50%, 06/26/2034(a) | | | | | | | 413 | | | | 416,015 | |
Engie Energia Chile SA
3.40%, 01/28/2030(a) | | | | | | | 349 | | | | 311,308 | |
Israel Electric Corp., Ltd.
Series G
4.25%, 08/14/2028(a) | | | | | | | 245 | | | | 231,035 | |
NextEra Energy Capital Holdings, Inc.
6.70%, 09/01/2054 | | | | | | | 45 | | | | 46,179 | |
Niagara Mohawk Power Corp.
5.29%, 01/17/2034(a) | | | | | | | 161 | | | | 159,852 | |
NRG Energy, Inc.
7.00%, 03/15/2033(a) | | | | | | | 362 | | | | 392,270 | |
Pacific Gas and Electric Co.
5.55%, 05/15/2029 | | | | | | | 81 | | | | 82,488 | |
Vistra Operations Co., LLC
6.95%, 10/15/2033(a) | | | | | | | 134 | | | | 145,893 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,230,663 | |
| | | | | | | | | | | | |
Total Corporates - Investment Grade
(cost $51,338,504) | | | | | | | | | | | 50,550,155 | |
| | | | | |
| | | | | | | | | | | | |
MORTGAGE PASS-THROUGHS – 22.2% | | | | | | | | | | | | |
Agency Fixed Rate 30-Year – 21.4% | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp.
Series 2019
3.50%, 10/01/2049 | | | | | | | 149 | | | | 135,889 | |
3.50%, 11/01/2049 | | | | | | | 200 | | | | 181,926 | |
Series 2022
2.00%, 03/01/2052 | | | | | | | 1,707 | | | | 1,364,801 | |
2.50%, 04/01/2052 | | | | | | | 2,030 | | | | 1,701,868 | |
3.00%, 03/01/2052 | | | | | | | 1,131 | | | | 984,853 | |
Federal Home Loan Mortgage Corp. Gold
Series 2005
5.50%, 01/01/2035 | | | | | | | 59 | | | | 60,266 | |
Series 2007
5.50%, 07/01/2035 | | | | | | | 9 | | | | 9,034 | |
Series 2016
4.00%, 02/01/2046 | | | | | | | 441 | | | | 419,811 | |
Series 2017
4.00%, 07/01/2044 | | | | | | | 296 | | | | 280,795 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2018
4.50%, 03/01/2048 | | U.S.$ | | | 114 | | | $ | 110,160 | |
4.50%, 10/01/2048 | | | | | 278 | | | | 269,309 | |
4.50%, 11/01/2048 | | | | | 337 | | | | 326,632 | |
5.00%, 11/01/2048 | | | | | 147 | | | | 145,720 | |
Federal National Mortgage Association
Series 2003
5.50%, 04/01/2033 | | | | | 17 | | | | 17,287 | |
5.50%, 07/01/2033 | | | | | 38 | | | | 38,444 | |
Series 2004
5.50%, 04/01/2034 | | | | | 5 | | | | 4,787 | |
5.50%, 05/01/2034 | | | | | 11 | | | | 11,567 | |
5.50%, 11/01/2034 | | | | | 17 | | | | 17,249 | |
5.50%, 01/01/2035 | | | | | 163 | | | | 166,823 | |
Series 2005
5.50%, 02/01/2035 | | | | | 23 | | | | 23,849 | |
Series 2007
5.50%, 08/01/2037 | | | | | 116 | | | | 118,228 | |
Series 2010
4.00%, 12/01/2040 | | | | | 178 | | | | 169,362 | |
Series 2012
3.50%, 02/01/2042 | | | | | 116 | | | | 106,999 | |
3.50%, 11/01/2042 | | | | | 1,240 | | | | 1,145,933 | |
3.50%, 01/01/2043 | | | | | 209 | | | | 192,672 | |
Series 2013
3.50%, 04/01/2043 | | | | | 727 | | | | 670,387 | |
4.00%, 10/01/2043 | | | | | 426 | | | | 403,000 | |
Series 2016
3.50%, 01/01/2047 | | | | | 328 | | | | 297,996 | |
Series 2018
4.50%, 09/01/2048 | | | | | 593 | | | | 573,372 | |
Series 2019
3.50%, 08/01/2049 | | | | | 471 | | | | 428,183 | |
3.50%, 09/01/2049 | | | | | 219 | | | | 199,588 | |
3.50%, 11/01/2049 | | | | | 434 | | | | 394,446 | |
Series 2021
2.00%, 07/01/2051 | | | | | 1,820 | | | | 1,449,360 | |
2.00%, 12/01/2051 | | | | | 1,842 | | | | 1,463,724 | |
2.50%, 01/01/2052 | | | | | 572 | | | | 479,375 | |
Series 2022
2.50%, 03/01/2052 | | | | | 1,251 | | | | 1,049,194 | |
2.50%, 04/01/2052 | | | | | 1,263 | | | | 1,058,061 | |
2.50%, 05/01/2052 | | | | | 1,694 | | | | 1,419,584 | |
3.00%, 02/01/2052 | | | | | 1,495 | | | | 1,302,503 | |
3.00%, 03/01/2052 | | | | | 1,889 | | | | 1,645,295 | |
Government National Mortgage Association
Series 2016
3.00%, 04/20/2046 | | | | | 62 | | | | 54,655 | |
| | |
| |
10 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
3.00%, 05/20/2046 | | | U.S.$ | | | | 149 | | | $ | 131,806 | |
Series 2021
4.50%, 11/20/2054, TBA | | | | | | | 994 | | | | 949,256 | |
Series 2023
5.00%, 11/15/2054, TBA | | | | | | | 2,900 | | | | 2,832,846 | |
5.50%, 04/20/2053 | | | | | | | 989 | | | | 984,775 | |
Series 2024
6.00%, 11/15/2054, TBA | | | | | | | 2,807 | | | | 2,827,879 | |
Uniform Mortgage-Backed Security
Series 2023
3.00%, 11/14/2054, TBA | | | | | | | 968 | | | | 833,690 | |
5.50%, 11/15/2054, TBA | | | | | | | 3,163 | | | | 3,132,729 | |
6.00%, 11/15/2054, TBA | | | | | | | 1,614 | | | | 1,624,777 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 34,210,745 | |
| | | | | | | | | | | | |
Agency Fixed Rate 15-Year – 0.8% | |
Federal National Mortgage Association
Series 2016 | | | | | | | | | | | | |
2.50%, 08/01/2031 | | | | | | | 74 | | | | 70,243 | |
2.50%, 11/01/2031 | | | | | | | 322 | | | | 304,502 | |
2.50%, 12/01/2031 | | | | | | | 438 | | | | 414,061 | |
2.50%, 01/01/2032 | | | | | | | 104 | | | | 98,651 | |
Series 2017
2.50%, 02/01/2032 | | | | | | | 495 | | | | 468,401 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,355,858 | |
| | | | | | | | | | | | |
Agency ARMs – 0.0% | |
Federal Home Loan Mortgage Corp.
Series 2006
6.25% (RFUCCT1Y + 2.00%), 01/01/2037(c) | | | | | | | 7 | | | | 7,486 | |
| | | | | | | | | | | | |
| | | |
Total Mortgage Pass-Throughs
(cost $38,174,796) | | | | | | | | | | | 35,574,089 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - TREASURIES – 19.5% | |
United States – 19.5% | |
U.S. Treasury Bonds
1.25%, 05/15/2050 | | | | | | | 358 | | | | 179,806 | |
3.25%, 05/15/2042 | | | | | | | 517 | | | | 434,667 | |
3.375%, 08/15/2042 | | | | | | | 992 | | | | 848,106 | |
3.625%, 05/15/2053 | | | | | | | 481 | | | | 413,682 | |
3.875%, 02/15/2043 | | | | | | | 3,078 | | | | 2,815,591 | |
3.875%, 05/15/2043 | | | | | | | 213 | | | | 193,840 | |
4.00%, 11/15/2042 | | | | | | | 2,061 | | | | 1,920,772 | |
4.125%, 08/15/2053 | | | | | | | 119 | | | | 111,916 | |
4.375%, 08/15/2043 | | | | | | | 286 | | | | 279,329 | |
4.50%, 02/15/2044 | | | | | | | 270 | | | | 266,933 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
4.625%, 05/15/2044 | | | U.S.$ | | | | 4,190 | | | $ | 4,211,806 | |
4.625%, 05/15/2054 | | | | | | | 2,143 | | | | 2,194,594 | |
4.75%, 11/15/2043 | | | | | | | 638 | | | | 652,641 | |
4.75%, 11/15/2053 | | | | | | | 497 | | | | 518,744 | |
U.S. Treasury Notes
4.125%, 03/31/2029 | | | | | | | 3,157 | | | | 3,151,474 | |
4.25%, 02/28/2029 | | | | | | | 5,050 | | | | 5,066,858 | |
4.375%, 08/31/2028 | | | | | | | 1,227 | | | | 1,235,718 | |
4.375%, 11/30/2028 | | | | | | | 1,783 | | | | 1,796,550 | |
4.875%, 10/31/2028 | | | | | | | 4,850 | | | | 4,974,936 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Treasuries
(cost $31,843,920) | | | | | | | | | | | 31,267,963 | |
| | | | | |
| | | | | | | | | | | | |
ASSET-BACKED SECURITIES – 8.0% | | | | | | | | | | | | |
Autos - Fixed Rate – 4.2% | | | | | | | | | | | | |
ACM Auto Trust
Series 2024-1A, Class A
7.71%, 01/21/2031(a) | | | | | | | 146 | | | | 146,403 | |
Arivo Acceptance Auto Loan Receivables Trust
Series 2024-1A, Class A
6.46%, 04/17/2028(a) | | | | | | | 99 | | | | 99,537 | |
Avis Budget Rental Car Funding AESOP LLC
Series 2023-3A, Class A
5.44%, 02/22/2028(a) | | | | | | | 475 | | | | 478,754 | |
Carvana Auto Receivables Trust
Series 2021-N3, Class C
1.02%, 06/12/2028 | | | | | | | 48 | | | | 45,518 | |
Series 2021-N4, Class D
2.30%, 09/11/2028 | | | | | | | 93 | | | | 89,758 | |
CPS Auto Receivables Trust
Series 2021-C, Class D
1.69%, 06/15/2027(a) | | | | | | | 320 | | | | 315,148 | |
Enterprise Fleet Financing LLC
Series 2023-2, Class A2
5.56%, 04/22/2030(a) | | | | | | | 349 | | | | 351,646 | |
FHF Trust
Series 2021-2A, Class A
0.83%, 12/15/2026(a) | | | | | | | 30 | | | | 29,604 | |
Series 2023-1A, Class A2
6.57%, 06/15/2028(a) | | | | | | | 112 | | | | 113,612 | |
Flagship Credit Auto Trust
Series 2019-3, Class E
3.84%, 12/15/2026(a) | | | | | | | 960 | | | | 954,914 | |
Series 2020-1, Class E
3.52%, 06/15/2027(a) | | | | | | | 1,000 | | | | 984,626 | |
| | |
| |
12 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Ford Credit Auto Owner Trust
Series 2021-1, Class D
2.31%, 10/17/2033(a) | | | U.S.$ | | | | 542 | | | $ | 516,780 | |
Hertz Vehicle Financing III LLC
Series 2022-1A, Class C
2.63%, 06/25/2026(a) | | | | | | | 450 | | | | 442,721 | |
Lendbuzz Securitization Trust
Series 2023-1A, Class A2
6.92%, 08/15/2028(a) | | | | | | | 356 | | | | 361,477 | |
Series 2023-2A, Class A2
7.09%, 10/16/2028(a) | | | | | | | 155 | | | | 158,128 | |
Lobel Automobile Receivables Trust
Series 2023-2, Class A
7.59%, 04/16/2029(a) | | | | | | | 201 | | | | 202,860 | |
Octane Receivables Trust
Series 2021-2A, Class C
2.53%, 05/21/2029(a) | | | | | | | 541 | | | | 521,462 | |
Research-Driven Pagaya Motor Trust
Series 2024-1A, Class A
7.09%, 06/25/2032(a) | | | | | | | 146 | | | | 147,528 | |
Santander Bank Auto Credit-Linked Notes
Series 2022-A, Class B
5.281%, 05/15/2032(a) | | | | | | | 66 | | | | 66,175 | |
Santander Drive Auto Receivables Trust
Series 2023-3, Class B
5.61%, 07/17/2028 | | | | | | | 228 | | | | 229,871 | |
Tesla Auto Lease Trust
Series 2024-A, Class A3
5.30%, 06/21/2027(a) | | | | | | | 141 | | | | 141,743 | |
Tricolor Auto Securitization Trust
Series 2024-2A, Class A
6.36%, 12/15/2027(a) | | | | | | | 137 | | | | 137,485 | |
United Auto Credit Securitization Trust
Series 2024-1, Class A
6.17%, 08/10/2026(a) | | | | | | | 37 | | | | 37,370 | |
US Bank NA
Series 2023-1, Class B
6.789%, 08/25/2032(a) | | | | | | | 240 | | | | 242,585 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,815,705 | |
| | | | | | | | | | | | |
Other ABS - Fixed Rate – 3.6% | |
AB Issuer LLC
Series 2021-1, Class A2
3.734%, 07/30/2051(a) | | | | | | | 725 | | | | 659,058 | |
ACHV ABS Trust
Series 2023-4CP, Class B
7.24%, 11/25/2030(a) | | | | | | | 228 | | | | 229,145 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Affirm Asset Securitization Trust
Series 2021-Z2, Class A
1.17%, 11/16/2026(a) | | U.S.$ | | | 8 | | | $ | 7,967 | |
Series 2022-X1, Class A
1.75%, 02/15/2027(a) | | | | | 2 | | | | 1,773 | |
Atalaya Equipment Leasing Trust
Series 2021-1A, Class C
2.69%, 06/15/2028(a) | | | | | 600 | | | | 584,310 | |
Cajun Global LLC
Series 2021-1, Class A2
3.931%, 11/20/2051(a) | | | | | 137 | | | | 128,413 | |
College Ave Student Loans LLC
Series 2021-C, Class C
3.06%, 07/26/2055(a) | | | | | 188 | | | | 171,254 | |
Conn’s Receivables Funding LLC
Series 2024-A, Class A
7.05%, 01/16/2029(a) | | | | | 10 | | | | 9,678 | |
Dext ABS LLC
Series 2021-1, Class C
2.29%, 09/15/2028(a) | | | | | 519 | | | | 505,364 | |
Series 2021-1, Class D
2.81%, 03/15/2029(a) | | | | | 260 | | | | 249,826 | |
Series 2023-1, Class A2
5.99%, 03/15/2032(a) | | | | | 318 | | | | 320,174 | |
Diamond Issuer LLC
Series 2021-1A, Class B
2.701%, 11/20/2051(a) | | | | | 566 | | | | 512,839 | |
GCI Funding I LLC
Series 2021-1, Class A
2.38%, 06/18/2046(a) | | | | | 214 | | | | 193,193 | |
Granite Park Equipment Leasing LLC
Series 2023-1A, Class A3
6.46%, 09/20/2032(a) | | | | | 206 | | | | 214,202 | |
MVW LLC
Series 2021-2A, Class C
2.23%, 05/20/2039(a) | | | | | 338 | | | | 315,810 | |
Neighborly Issuer LLC
Series 2022-1A, Class A2
3.695%, 01/30/2052(a) | | | | | 357 | | | | 321,821 | |
Series 2023-1A, Class A2
7.308%, 01/30/2053(a) | | | | | 388 | | | | 396,030 | |
Nelnet Student Loan Trust
Series 2021-BA, Class B
2.68%, 04/20/2062(a) | | | | | 220 | | | | 189,989 | |
Pagaya AI Debt Trust
Series 2024-1, Class A
6.66%, 07/15/2031(a) | | | | | 198 | | | | 200,563 | |
| | |
| |
14 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2024-2, Class A
6.319%, 08/15/2031(a) | | | U.S.$ | | | | 117 | | | $ | 118,190 | |
Series 2024-3, Class A
6.258%, 10/15/2031(a) | | | | | | | 211 | | | | 212,604 | |
Prosper Marketplace Issuance Trust
Series 2024-1A, Class A
6.12%, 08/15/2029(a) | | | | | | | 209 | | | | 209,485 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,751,688 | |
| | | | | | | | | | | | |
Credit Cards - Fixed Rate – 0.2% | |
Brex Commercial Charge Card Master Trust
Series 2024-1, Class A1
6.05%, 07/15/2027(a) | | | | | | | 251 | | | | 253,471 | |
| | | | | | | | | | | | |
| | | |
Total Asset-Backed Securities
(cost $13,132,782) | | | | | | | | | | | 12,820,864 | |
| | | | | |
| | | | | | | | | | | | |
COLLATERALIZED MORTGAGE OBLIGATIONS – 6.2% | | | | | | | | | | | | |
Risk Share Floating Rate – 5.0% | | | | | | | | | | | | |
Bellemeade Re Ltd.
Series 2022-1, Class M1C
8.557% (CME Term SOFR + 3.70%), 01/26/2032(a)(c) | | | | | | | 672 | | | | 686,537 | |
Series 2023-1, Class M1A
7.057% (CME Term SOFR + 2.20%), 10/25/2033(a)(c) | | | | | | | 254 | | | | 256,289 | |
Connecticut Avenue Securities Trust
Series 2020-R01, Class 1B1
8.221% (CME Term SOFR + 3.36%), 01/25/2040(a)(c) | | | | | | | 500 | | | | 516,565 | |
Series 2022-R01, Class 1B1
8.007% (CME Term SOFR + 3.15%), 12/25/2041(a)(c) | | | | | | | 625 | | | | 640,861 | |
Series 2022-R02, Class 2M1
6.057% (CME Term SOFR + 1.20%), 01/25/2042(a)(c) | | | | | | | 185 | | | | 185,202 | |
Series 2023-R02, Class 1M1
7.157% (CME Term SOFR + 2.30%), 01/25/2043(a)(c) | | | | | | | 173 | | | | 177,322 | |
Series 2023-R07, Class 2M1
6.807% (CME Term SOFR + 1.95%), 09/25/2043(a)(c) | | | | | | | 328 | | | | 329,490 | |
Series 2024-R02, Class 1M1
5.957% (CME Term SOFR + 1.10%), 02/25/2044(a)(c) | | | | | | | 139 | | | | 139,427 | |
Series 2024-R04, Class 1M1
5.957% (CME Term SOFR + 1.10%), 05/25/2044(a)(c) | | | | | | | 243 | | | | 243,115 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2015-HQA2, Class M3
9.771% (CME Term SOFR + 4.91%), 05/25/2028(c) | | U.S.$ | | | 104 | | | $ | 107,285 | |
Series 2019-FTR3, Class B2
10.195% (CME Term SOFR + 4.91%), 09/25/2047(a)(c) | | | | | 700 | | | | 741,579 | |
Series 2021-HQA4, Class M2
7.207% (CME Term SOFR + 2.35%), 12/25/2041(a)(c) | | | | | 513 | | | | 517,475 | |
Series 2022-DNA2, Class M2
8.607% (CME Term SOFR + 3.75%), 02/25/2042(a)(c) | | | | | 605 | | | | 633,267 | |
Series 2024-DNA1, Class M1
6.207% (CME Term SOFR + 1.35%), 02/25/2044(a)(c) | | | | | 296 | | | | 296,279 | |
Series 2024-HQA1, Class M1
6.107% (CME Term SOFR + 1.25%), 03/25/2044(a)(c) | | | | | 308 | | | | 308,389 | |
Federal National Mortgage Association Connecticut Avenue Securities
Series 2016-C02, Class 1B
17.221% (CME Term SOFR + 12.36%), 09/25/2028(c) | | | | | 148 | | | | 168,904 | |
Series 2016-C03, Class 1B
16.721% (CME Term SOFR + 11.86%), 10/25/2028(c) | | | | | 99 | | | | 112,842 | |
Series 2016-C06, Class 1B
14.221% (CME Term SOFR + 9.36%), 04/25/2029(c) | | | | | 375 | | | | 419,314 | |
Series 2016-C07, Class 2B
14.471% (CME Term SOFR + 9.61%), 05/25/2029(c) | | | | | 377 | | | | 428,594 | |
Series 2017-C04, Class 2M2
7.821% (CME Term SOFR + 2.96%), 11/25/2029(c) | | | | | 152 | | | | 156,916 | |
Series 2021-R02, Class 2B1
8.157% (CME Term SOFR + 3.30%), 11/25/2041(a)(c) | | | | | 441 | | | | 454,456 | |
Home Re Ltd.
Series 2023-1, Class M1A
7.007% (CME Term SOFR + 2.15%), 10/25/2033(a)(c) | | | | | 200 | | | | 200,542 | |
JPMorgan Madison Avenue Securities Trust
Series 2014-CH1, Class M2
9.221% (CME Term SOFR + 4.36%), 11/25/2024(a)(c) | | | | | 16 | | | | 16,713 | |
| | |
| |
16 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
PMT Credit Risk Transfer Trust
Series 2020-1R, Class A
8.321% (CME Term SOFR + 3.46%), 02/25/2025(a)(c) | | | U.S.$ | | | | 130 | | | $ | 130,022 | |
Wells Fargo Credit Risk Transfer Securities Trust
Series 2015-WF1, Class 1M2
10.221% (CME Term SOFR + 5.36%), 11/25/2025(a)(c) | | | | | | | 99 | | | | 102,405 | |
Series 2015-WF1, Class 2M2
10.471% (CME Term SOFR + 5.61%), 11/25/2025(a)(c) | | | | | | | 22 | | | | 23,421 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 7,993,211 | |
| | | | | | | | | | | | |
Agency Floating Rate – 0.4% | |
Federal Home Loan Mortgage Corp. REMICs
Series 4719, Class JS
1.026% (6.04% – CME Term SOFR), 09/15/2047(c)(d) | | | | | | | 502 | | | | 57,310 | |
Series 4981, Class HS
1.129% (5.99% – CME Term SOFR), 06/25/2050(c)(d) | | | | | | | 1,488 | | | | 153,667 | |
Federal National Mortgage Association REMICs
Series 2015-90, Class SL
1.179% (6.04% – CME Term SOFR), 12/25/2045(c)(d) | | | | | | | 650 | | | | 66,510 | |
Series 2016-77, Class DS
1.029% (5.89% – CME Term SOFR), 10/25/2046(c)(d) | | | | | | | 532 | | | | 62,963 | |
Series 2017-26, Class TS
0.979% (5.84% – CME Term SOFR), 04/25/2047(c)(d) | | | | | | | 683 | | | | 87,051 | |
Series 2017-62, Class AS
1.179% (6.04% – CME Term SOFR), 08/25/2047(c)(d) | | | | | | | 580 | | | | 71,899 | |
Series 2017-97, Class LS
1.229% (6.09% – CME Term SOFR), 12/25/2047(c)(d) | | | | | | | 678 | | | | 82,256 | |
Government National Mortgage Association
Series 2017-65, Class ST
1.276% (6.04% – CME Term SOFR 1 Month), 04/20/2047(c)(d) | | | | | | | 658 | | | | 80,047 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 661,703 | |
| | | | | | | | | | | | |
Non-Agency Fixed Rate – 0.3% | |
Alternative Loan Trust
Series 2006-24CB, Class A16
5.75%, 08/25/2036 | | | | | | | 174 | | | | 88,062 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Series 2006-J1, Class 1A13
5.50%, 02/25/2036 | | U.S.$ | | | 71 | | | $ | 47,793 | |
CHL Mortgage Pass-Through Trust
Series 2006-13, Class 1A19
6.25%, 09/25/2036 | | | | | 46 | | | | 19,804 | |
JPMorgan Alternative Loan Trust
Series 2006-A3, Class 2A1
4.86%, 07/25/2036 | | | | | 327 | | | | 260,039 | |
Structured Asset Securities Corp. Mortgage Pass-Through Certificates
Series 2002-3, Class B3
6.50%, 03/25/2032 | | | | | 452 | | | | 87,223 | |
| | | | | | | | | | |
| | | | 502,921 | |
| | | | | |
Non-Agency Floating Rate – 0.3% | |
Deutsche Alt-A Securities Mortgage Loan Trust
Series 2006-AR4, Class A2
5.232% (CME Term SOFR 1 Month + 0.49%), 12/25/2036(c) | | | | | 409 | | | | 129,604 | |
HomeBanc Mortgage Trust
Series 2005-1, Class A1
5.352% (CME Term SOFR 1 Month + 0.61%), 03/25/2035(c) | | | | | 56 | | | | 43,111 | |
Impac Secured Assets Corp.
Series 2005-2, Class A2D
5.712% (CME Term SOFR 1 Month + 0.97%), 03/25/2036(c) | | | | | 105 | | | | 85,079 | |
JPMorgan Chase Bank, NA
Series 2019-CL1, Class M3
6.952% (CME Term SOFR 1 Month + 2.21%), 04/25/2047(a)(c) | | | | | 79 | | | | 79,204 | |
Residential Accredit Loans, Inc. Trust
Series 2007-QS4, Class 2A4
5.192% (CME Term SOFR 1 Month + 0.45%), 03/25/2037(c) | | | | | 487 | | | | 92,610 | |
| | | | | | | | | | |
| | | | 429,608 | |
| | | | | |
Agency Fixed Rate – 0.2% | |
Federal National Mortgage Association Grantor Trust
Series 2004-T5, Class AB4
4.324%, 05/28/2035 | | | | | 47 | | | | 46,536 | |
Federal National Mortgage Association REMICs
Series 2016-31, Class IO
5.00%, 06/25/2046(e) | | | | | 1,961 | | | | 278,538 | |
| | | | | | | | | | |
| | | | 325,074 | |
| | | | | |
Total Collateralized Mortgage Obligations
(cost $10,671,996) | | | | | | | | | 9,912,517 | |
| | | | | |
| | |
| |
18 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 4.8% | | | | | | | | | | | | |
Non-Agency Fixed Rate CMBS – 2.8% | | | | | | | | | | | | |
BAMLL Commercial Mortgage Securities Trust
Series 2013-WBRK, Class D
3.534%, 03/10/2037(a) | | | U.S.$ | | | | 960 | | | $ | 885,718 | |
GS Mortgage Securities Trust
Series 2011-GC5, Class D
5.151%, 08/10/2044(a) | | | | | | | 252 | | | | 137,307 | |
GSF
Series 2021-1, Class A1
1.433%, 08/15/2026(f) | | | | | | | 234 | | | | 228,502 | |
Series 2021-1, Class A2
2.435%, 08/15/2026(f) | | | | | | | 719 | | | | 697,987 | |
Series 2021-1, Class AS
2.638%, 08/15/2026(f) | | | | | | | 25 | | | | 23,702 | |
JPMBB Commercial Mortgage Securities Trust
Series 2014-C24, Class C
4.547%, 11/15/2047 | | | | | | | 890 | | | | 733,887 | |
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2012-C6, Class D
4.964%, 05/15/2045 | | | | | | | 349 | | | | 336,717 | |
LB-UBS Commercial Mortgage Trust
Series 2006-C6, Class AJ
5.452%, 09/15/2039 | | | | | | | 77 | | | | 25,578 | |
Wells Fargo Commercial Mortgage Trust
Series 2016-LC24, Class XA
1.60%, 10/15/2049(e) | | | | | | | 7,071 | | | | 158,534 | |
Series 2016-LC25, Class C
4.33%, 12/15/2059 | | | | | | | 545 | | | | 489,259 | |
Series 2016-NXS6, Class C
4.392%, 11/15/2049 | | | | | | | 600 | | | | 554,074 | |
WF-RBS Commercial Mortgage Trust
Series 2013-C11, Class B
3.714%, 03/15/2045 | | | | | | | 134 | | | | 129,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,400,865 | |
| | | | | | | | | | | | |
Non-Agency Floating Rate CMBS – 2.0% | | | | | | | | | | | | |
BAMLL Commercial Mortgage Securities Trust
Series 2017-SCH, Class AF
5.851% (CME Term SOFR 1 Month + 1.05%), 11/15/2033(a)(c) | | | | | | | 1,330 | | | | 1,329,425 | |
BBCMS Mortgage Trust
Series 2020-BID, Class A
7.059% (CME Term SOFR 1 Month + 2.25%), 10/15/2037(a)(c) | | | | | | | 692 | | | | 691,135 | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 19 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
BX Commercial Mortgage Trust
Series 2019-IMC, Class D
6.75% (CME Term SOFR 1 Month + 1.95%), 04/15/2034(a)(c) | | | U.S.$ | | | | 142 | | | $ | 138,993 | |
Series 2019-IMC, Class E
7.00% (CME Term SOFR 1 Month + 2.20%), 04/15/2034(a)(c) | | | | | | | 566 | | | | 552,800 | |
Federal Home Loan Mortgage Corp.
Series 2021-MN1, Class M1
6.857% (CME Term SOFR + 2.00%), 01/25/2051(a)(c) | | | | | | | 59 | | | | 58,971 | |
HFX Funding Issuer
Series 2017-1A, Class A3
3.647%, 03/15/2035(f) | | | | | | | 215 | | | | 214,343 | |
Natixis Commercial Mortgage Securities Trust
Series 2019-MILE, Class A
6.383% (CME Term SOFR 1 Month + 1.58%), 07/15/2036(a)(c) | | | | | | | 322 | | | | 290,246 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,275,913 | |
| | | | | | | | | | | | |
Agency CMBS – 0.0% | |
Government National Mortgage Association
Series 2006-39, Class IO
0.117%, 07/16/2046(e) | | | | | | | 142 | | | | 1 | |
| | | | | | | | | | | | |
| | | |
Total Commercial Mortgage-Backed Securities
(cost $8,283,794) | | | | | | | | | | | 7,676,779 | |
| | | | | |
| | | | | | | | | | | | |
INFLATION-LINKED SECURITIES – 1.5% | | | | | | | | | | | | |
United States – 1.5% | | | | | | | | | | | | |
U.S. Treasury Inflation Index
0.25%, 07/15/2029 (TIPS)
(cost $2,375,614) | | | | | | | 2,608 | | | | 2,433,659 | |
| | | | | |
| | | |
EMERGING MARKETS - CORPORATE BONDS – 1.3% | | | | | | | | | | | | |
Industrial – 1.1% | | | | | | | | | | | | |
Basic – 0.6% | | | | | | | | | | | | |
Braskem Netherlands Finance BV
4.50%, 01/10/2028(a) | | | | | | | 438 | | | | 409,661 | |
Stillwater Mining Co.
4.00%, 11/16/2026(a) | | | | | | | 446 | | | | 419,517 | |
Volcan Cia Minera SAA
8.75%, 01/24/2030(a) | | | | | | | 76 | | | | 69,426 | |
| | | | | | | | | | | | |
| | | | 898,604 | |
| | | | | |
Consumer Cyclical - Other – 0.2% | |
Wynn Macau Ltd.
5.625%, 08/26/2028(a) | | | | | | | 330 | | | | 316,816 | |
| | | | | | | | | | | | |
| | |
| |
20 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Consumer Non-Cyclical – 0.0% | |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018(f)(g)(h)(i)(j) | | | U.S.$ | | | | 655 | | | $ | 66 | |
| | | | | | | | | | | | |
|
Energy – 0.3% | |
Ecopetrol SA
8.625%, 01/19/2029 | | | | | | | 271 | | | | 286,474 | |
Oleoducto Central SA
4.00%, 07/14/2027(a) | | | | | | | 217 | | | | 205,955 | |
| | | | | | | | | | | | |
| | | | 492,429 | |
| | | | | |
| | | | 1,707,915 | |
| | | | | |
Utility – 0.2% | |
Electric – 0.0% | |
Terraform Global Operating LP
6.125%, 03/01/2026(a) | | | | | | | 60 | | | | 60,013 | |
| | | | | | | | | | | | |
|
Other Utility – 0.2% | |
Aegea Finance SARL
6.75%, 05/20/2029(a) | | | | | | | 260 | | | | 257,888 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 317,901 | |
| | | | | | | | | | | | |
Total Emerging Markets - Corporate Bonds
(cost $2,377,939) | | | | | | | | | | | 2,025,816 | |
| | | | | |
| | | | | | | | | | | | |
CORPORATES - NON-INVESTMENT GRADE – 1.2% | | | | | | | | | | | | |
Industrial – 1.0% | | | | | | | | | | | | |
Basic – 0.2% | |
Sealed Air Corp.
4.00%, 12/01/2027(a) | | | | | | | 379 | | | | 362,911 | |
| | | | | | | | | | | | |
|
Communications - Media – 0.3% | |
DISH DBS Corp.
5.75%, 12/01/2028(a) | | | | | | | 322 | | | | 281,811 | |
VZ Vendor Financing II BV
2.875%, 01/15/2029(a) | | | EUR | | | | 181 | | | | 180,426 | |
| | | | | | | | | | | | |
| | | | 462,237 | |
| | | | | |
Communications - Telecommunications – 0.1% | | | | | | | | | | | | |
Altice France SA
3.375%, 01/15/2028(a) | | | | | | | 181 | | | | 150,235 | |
| | | | | | | | | | | | |
|
Consumer Cyclical - Other – 0.1% | |
Hilton Domestic Operating Co., Inc.
5.875%, 04/01/2029(a) | | | U.S.$ | | | | 106 | | | | 106,907 | |
6.125%, 04/01/2032(a) | | | | | | | 61 | | | | 61,630 | |
| | | | | | | | | | | | |
| | | | 168,537 | |
| | | | | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Consumer Non-Cyclical – 0.1% | |
Organon & Co./Organon Foreign Debt Co-Issuer BV
2.875%, 04/30/2028(a) | | | EUR | | | | 100 | | | $ | 104,977 | |
| | | | | | | | | | | | |
|
Energy – 0.1% | |
Sunoco LP
7.00%, 05/01/2029(a) | | | U.S.$ | | | | 66 | | | | 68,159 | |
7.25%, 05/01/2032(a) | | | | | | | 92 | | | | 95,848 | |
Sunoco LP/Sunoco Finance Corp.
4.50%, 05/15/2029 | | | | | | | 68 | | | | 64,634 | |
4.50%, 04/30/2030 | | | | | | | 32 | | | | 30,032 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 258,673 | |
| | | | | | | | | | | | |
Services – 0.1% | |
Block, Inc.
6.50%, 05/15/2032(a) | | | | | | | 133 | | | | 135,414 | |
| | | | | | | | | | | | |
| | | | 1,642,984 | |
| | | | | |
Utility – 0.2% | |
Electric – 0.2% | |
Vistra Corp.
7.00%, 12/15/2026(a)(b) | | | | | | | 218 | | | | 220,112 | |
| | | | | | | | | | | | |
| | | |
Total Corporates - Non-Investment Grade
(cost $1,986,850) | | | | | | | | | | | 1,863,096 | |
| | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 1.0% | | | | | | | | | | | | |
United States – 1.0% | | | | | | | | | | | | |
State of California
Series 2010
7.625%, 03/01/2040 | | | | | | | 970 | | | | 1,170,516 | |
University of California
Series 2021-B
3.071%, 05/15/2051 | | | | | | | 730 | | | | 502,837 | |
| | | | | | | | | | | | |
| | | |
Total Local Governments - US Municipal Bonds
(cost $2,043,298) | | | | | | | | | | | 1,673,353 | |
| | | | | |
| | | | | | | | | | | | |
COLLATERALIZED LOAN OBLIGATIONS – 0.7% | | | | | | | | | | | | |
CLO - Floating Rate – 0.7% | |
Pikes Peak CLO 8
Series 2021-8A, Class A
6.049% (CME Term SOFR 3 Month + 1.43%), 07/20/2034(a)(c) | | | | | | | 675 | | | | 675,304 | |
| | |
| |
22 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Rockford Tower CLO Ltd.
Series 2021-2A, Class A1
6.039% (CME Term SOFR 3 Month + 1.42%), 07/20/2034(a)(c) | | | U.S.$ | | | | 504 | | | $ | 504,163 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Loan Obligations
(cost $1,178,814) | | | | | | | | | | | 1,179,467 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
QUASI-SOVEREIGNS – 0.6% | | | | | | | | | | | | |
Quasi-Sovereign Bonds – 0.6% | | | | | | | | | | | | |
Chile – 0.2% | |
Corp. Nacional del Cobre de Chile
6.44%, 01/26/2036(a) | | | | | | | 340 | | | | 353,600 | |
| | | | | | | | | | | | |
|
Hungary – 0.2% | |
Magyar Export-Import Bank Zrt
6.125%, 12/04/2027(a) | | | | | | | 387 | | | | 394,014 | |
| | | | | | | | | | | | |
|
Mexico – 0.2% | |
Comision Federal de Electricidad
4.688%, 05/15/2029(a) | | | | | | | 295 | | | | 279,513 | |
| | | | | | | | | | | | |
| | | |
Total Quasi-Sovereigns
(cost $1,028,472) | | | | | | | | | | | 1,027,127 | |
| | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.2% | | | | | | | | | | | | |
Colombia – 0.2% | | | | | | | | | | | | |
Colombia Government International Bond
3.125%, 04/15/2031
(cost $374,136) | | | | | | | 375 | | | | 298,500 | |
| | | | | |
| | | |
EMERGING MARKETS - SOVEREIGNS – 0.1% | | | | | | | | | | | | |
Dominican Republic – 0.1% | | | | | | | | | | | | |
Dominican Republic International Bond
4.875%, 09/23/2032(a)
(cost $217,000) | | | | | | | 217 | | | | 197,687 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 23 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | |
Shares | | | U.S. $ Value | |
| |
SHORT-TERM INVESTMENTS – 8.0% | | | | | | | | | | | | |
Investment Companies – 8.0% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.72%(k)(l)(m)
(cost $12,757,173) | | | | | | | 12,757,173 | | | $ | 12,757,173 | |
| | | | | | | | | | | | |
| | | |
Total Investments – 106.9%
(cost $177,785,088) | | | | | | | | | | | 171,258,245 | |
Other assets less liabilities – (6.9)% | | | | | | | | | | | (11,071,380 | ) |
| | | | | |
| | | |
Net Assets – 100.0% | | | | | | | | | | $ | 160,186,865 | |
| | | | | |
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 | | | 47 | | | | December 2024 | | | $ | 9,679,430 | | | $ | (19,388 | ) |
U.S. T-Note 5 Yr (CBT) Futures | | | 173 | | | | December 2024 | | | | 18,551,547 | | | | (351,440 | ) |
U.S. Ultra Bond (CBT) Futures | | | 74 | | | | December 2024 | | | | 9,296,250 | | | | (522,297 | ) |
|
Sold Contracts | |
U.S. 10 Yr Ultra Futures | | | 16 | | | | December 2024 | | | | 1,820,000 | | | | 35,649 | |
| | | | | | | | | | | | | | | | |
| | | $ | (857,476 | ) |
| | | | | | | | | | | | | | | | |
FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)
| | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
NatWest Markets PLC | | | EUR 1,434 | | | | USD 1,550 | | | | 12/20/2024 | | | $ | (12,952 | ) |
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
October 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Buy Contracts | |
CDX-NAHY Series 43, 5 Year Index, 12/20/2029* | | | (5.00 | )% | | | Quarterly | | | | 3.36 | % | | | USD 5,570 | | | $ | (414,617 | ) | | $ | (399,361 | ) | | $ | (15,256 | ) |
iTraxx Australia Series 42, 5 Year Index, 12/20/2029* | | | (1.00 | ) | | | Quarterly | | | | 0.66 | | | | USD 7,590 | | | | (126,602 | ) | | | (126,416 | ) | | | (186 | ) |
| | |
| |
24 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
October 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Sale Contracts | |
CDX-NAIG Series 43, 5 Year Index, 12/20/2029* | | | 1.00 | % | | | Quarterly | | | | 0.54 | % | | | USD 7,590 | | | $ | 169,872 | | | $ | 167,896 | | | $ | 1,976 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | (371,347 | ) | | $ | (357,881 | ) | | $ | (13,466 | ) |
| | | | | | | | | | | | | |
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 | | $ | 275,339 | | | $ | 152,242 | | | $ | 123,097 | |
| (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 October 31, 2024, the aggregate market value of these securities amounted to $50,592,103 or 31.6% of net assets. |
| (b) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
| (c) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2024. |
| (d) | Inverse interest only security. |
| (f) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.72% of net assets as of October 31, 2024, 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 -
08/03/2023 |
| | $ | 223,885 | | | $ | 228,502 | | | | 0.14 | % |
GSF
Series 2021-1, Class A2
2.435%, 08/15/2026 | |
| 02/25/2021 -
09/06/2022 |
| | | 727,649 | | | | 697,987 | | | | 0.44 | % |
GSF
Series 2021-1, Class AS
2.638%, 08/15/2026 | |
| 02/25/2021 -
04/01/2021 |
| | | 25,254 | | | | 23,702 | | | | 0.01 | % |
HFX Funding Issuer
Series 2017-1A, Class A3
3.647%, 03/15/2035 | | | 11/19/2020 | | | | 227,360 | | | | 214,343 | | | | 0.13 | % |
Virgolino de Oliveira Finance SA
10.50%, 01/28/2018 | |
| 01/24/2014 -
01/27/2014 |
| | | 363,375 | | | | 66 | | | | 0.00 | % |
| (g) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (h) | Non-income producing security. |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 25 |
PORTFOLIO OF INVESTMENTS (continued)
| (i) | Defaulted matured security. |
| (j) | Fair valued by the Adviser. |
| (k) | Affiliated investments. |
| (l) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
| (m) | The rate shown represents the 7-day yield as of period end. |
Currency Abbreviations:
EUR – Euro
USD – United States Dollar
Glossary:
ABS – Asset-Backed Securities
ARMs – Adjustable Rate Mortgages
CBT – Chicago Board of Trade
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
CME – Chicago Mercantile Exchange
REIT – Real Estate Investment Trust
REMICs – Real Estate Mortgage Investment Conduits
RFUCCT1Y – Refinitiv USD IBOR Consumer Cash Fallbacks Term 1 Year
SOFR – Secured Overnight Financing Rate
TBA – To Be Announced
TIPS – Treasury Inflation Protected Security
See notes to financial statements.
| | |
| |
26 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $165,027,915) | | $ | 158,501,072 | |
Affiliated issuers (cost $12,757,173) | | | 12,757,173 | |
Cash collateral due from broker | | | 1,179,637 | |
Foreign currencies, at value (cost $2,912) | | | 2,929 | |
Receivable for investment securities sold | | | 2,052,136 | |
Interest receivable | | | 1,264,421 | |
Receivable for capital stock sold | | | 87,246 | |
Receivable due from Adviser | | | 76,221 | |
Receivable for variation margin on centrally cleared swaps | | | 18,148 | |
Affiliated dividends receivable | | | 11,493 | |
Other assets | | | 14,492 | |
| | | | |
Total assets | | | 175,964,968 | |
| | | | |
| Liabilities | |
Due to custodian | | | 2,879 | |
Payable for investment securities purchased and foreign currency transactions | | | 15,106,976 | |
Payable for capital stock redeemed | | | 118,836 | |
Dividends payable | | | 86,607 | |
Advisory fee payable | | | 61,822 | |
Administrative fee payable | | | 60,666 | |
Payable for variation margin on futures | | | 39,210 | |
Distribution fee payable | | | 27,273 | |
Unrealized depreciation on forward currency exchange contracts | | | 12,952 | |
Transfer Agent fee payable | | | 12,367 | |
Foreign capital gains tax payable | | | 6,554 | |
Directors’ fees payable | | | 1,905 | |
Accrued expenses | | | 240,056 | |
| | | | |
Total liabilities | | | 15,778,103 | |
| | | | |
Net Assets | | $ | 160,186,865 | |
| | | | |
| Composition of Net Assets | |
Capital stock, at par | | $ | 17,174 | |
Additional paid-in capital | | | 207,360,150 | |
Accumulated loss | | | (47,190,459 | ) |
| | | | |
Net Assets | | $ | 160,186,865 | |
| | | | |
Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 121,965,489 | | | | 13,078,110 | | | $ | 9.33 | * |
| |
| C | | $ | 1,277,601 | | | | 137,353 | | | $ | 9.30 | |
| |
| Advisor | | $ | 33,477,905 | | | | 3,587,893 | | | $ | 9.33 | |
| |
| I | | $ | 478,221 | | | | 51,223 | | | $ | 9.34 | |
| |
| Z | | $ | 2,987,649 | | | | 319,626 | | | $ | 9.35 | |
| |
| * | The maximum offering price per share for Class A shares was $9.74 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 27 |
STATEMENT OF OPERATIONS
Year Ended October 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Interest | | $ | 8,248,967 | | | | | |
Dividends | | | | | | | | |
Unaffiliated issuers | | | 326,376 | | | | | |
Affiliated issuers | | | 87,786 | | | $ | 8,663,129 | |
| | | | | | | | |
| Expenses | |
Advisory fee (see Note B) | | | 759,431 | | | | | |
Distribution fee—Class A | | | 317,635 | | | | | |
Distribution fee—Class C | | | 18,234 | | | | | |
Distribution fee—Class R | | | 1,239 | | | | | |
Distribution fee—Class K | | | 2,695 | | | | | |
Transfer agency—Class A | | | 185,589 | | | | | |
Transfer agency—Class C | | | 2,812 | | | | | |
Transfer agency—Advisor Class | | | 51,290 | | | | | |
Transfer agency—Class R | | | 645 | | | | | |
Transfer agency—Class K | | | 2,156 | | | | | |
Transfer agency—Class I | | | 575 | | | | | |
Transfer agency—Class Z | | | 982 | | | | | |
Audit and tax | | | 110,830 | | | | | |
Registration fees | | | 106,291 | | | | | |
Administrative | | | 59,452 | | | | | |
Printing | | | 57,927 | | | | | |
Legal | | | 47,508 | | | | | |
Custody and accounting | | | 43,439 | | | | | |
Directors’ fees | | | 22,187 | | | | | |
Miscellaneous | | | 23,263 | | | | | |
| | | | | | | | |
Total expenses | | | 1,814,180 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (598,560 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 1,215,620 | |
| | | | | | | | |
Net investment income | | | | | | | 7,447,509 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions(a) | | | | | | | (2,773,678 | ) |
Forward currency exchange contracts | | | | | | | 7,518 | |
Futures | | | | | | | 557,544 | |
Swaps | | | | | | | (875,190 | ) |
Foreign currency transactions | | | | | | | (56,634 | ) |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments | | | | | | | 13,123,209 | |
Forward currency exchange contracts | | | | | | | (19,831 | ) |
Futures | | | | | | | 1,531,866 | |
Swaps | | | | | | | (165,887 | ) |
Foreign currency denominated assets and liabilities | | | | | | | 4,661 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 11,333,578 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 18,781,087 | |
| | | | | | | | |
| (a) | Net of foreign realized capital gains taxes of $5,060. |
See notes to financial statements.
| | |
| |
28 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 7,447,509 | | | $ | 7,758,090 | |
Net realized loss on investment and foreign currency transactions | | | (3,140,440 | ) | | | (13,466,264 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 14,474,018 | | | | 9,154,416 | |
| | | | | | | | |
Net increase in net assets from operations | | | 18,781,087 | | | | 3,446,242 | |
Distributions to Shareholders | |
Class A | | | (5,354,847 | ) | | | (6,036,127 | ) |
Class C | | | (63,520 | ) | | | (86,032 | ) |
Advisor Class | | | (1,572,163 | ) | | | (1,689,006 | ) |
Class R | | | (9,786 | ) | | | (16,563 | ) |
Class K | | | (44,848 | ) | | | (101,738 | ) |
Class I | | | (21,249 | ) | | | (30,439 | ) |
Class Z | | | (126,948 | ) | | | (115,328 | ) |
Return of capital | | | | | | | | |
Class A | | | – 0 | – | | | (473,258 | ) |
Class C | | | – 0 | – | | | (6,745 | ) |
Advisor Class | | | – 0 | – | | | (132,425 | ) |
Class R | | | – 0 | – | | | (1,299 | ) |
Class K | | | – 0 | – | | | (7,977 | ) |
Class I | | | – 0 | – | | | (2,387 | ) |
Class Z | | | – 0 | – | | | (9,042 | ) |
| Capital Stock Transactions | | | | | | | | |
Net decrease | | | (19,477,180 | ) | | | (28,355,924 | ) |
| | | | | | | | |
Total decrease | | | (7,889,454 | ) | | | (33,618,048 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 168,076,319 | | | | 201,694,367 | |
| | | | | | | | |
End of period | | $ | 160,186,865 | | | $ | 168,076,319 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 29 |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024
NOTE A
Significant Accounting Policies
AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of seven 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”), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class I and Class Z shares. Class B, Class R, Class K and Class T shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. 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. Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. 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 (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
| | |
| |
30 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 | 31 |
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.
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
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NOTES TO FINANCIAL STATEMENTS (continued)
for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Corporates – Investment Grade | | $ | – 0 | – | | $ | 50,550,155 | | | $ | – 0 | – | | $ | 50,550,155 | |
Mortgage Pass-Throughs | | | – 0 | – | | | 35,574,089 | | | | – 0 | – | | | 35,574,089 | |
Governments – Treasuries | | | – 0 | – | | | 31,267,963 | | | | – 0 | – | | | 31,267,963 | |
Asset-Backed Securities | | | – 0 | – | | | 12,820,864 | | | | – 0 | – | | | 12,820,864 | |
Collateralized Mortgage Obligations | | | – 0 | – | | | 9,912,517 | | | | – 0 | – | | | 9,912,517 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 7,676,779 | | | | – 0 | – | | | 7,676,779 | |
Inflation-Linked Securities | | | – 0 | – | | | 2,433,659 | | | | – 0 | – | | | 2,433,659 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | 2,025,750 | | | | 66 | | | | 2,025,816 | |
Corporates – Non-Investment Grade | | | – 0 | – | | | 1,863,096 | | | | – 0 | – | | | 1,863,096 | |
Local Governments – US Municipal Bonds | | | – 0 | – | | | 1,673,353 | | | | – 0 | – | | | 1,673,353 | |
Collateralized Loan Obligations | | | – 0 | – | | | 1,179,467 | | | | – 0 | – | | | 1,179,467 | |
Quasi-Sovereigns | | | – 0 | – | | | 1,027,127 | | | | – 0 | – | | | 1,027,127 | |
Governments – Sovereign Bonds | | | – 0 | – | | | 298,500 | | | | – 0 | – | | | 298,500 | |
Emerging Markets – Sovereigns | | | – 0 | – | | | 197,687 | | | | – 0 | – | | | 197,687 | |
Short-Term Investments | | | 12,757,173 | | | | – 0 | – | | | – 0 | – | | | 12,757,173 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 12,757,173 | | | | 158,501,006 | | | | 66 | | | | 171,258,245 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | | 35,649 | | | | – 0 | – | | | – 0 | – | | | 35,649 | (b) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | 169,872 | | | | – 0 | – | | | 169,872 | (b) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | 275,339 | | | | – 0 | – | | | 275,339 | (b) |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (893,125 | ) | | | – 0 | – | | | – 0 | – | | | (893,125 | )(b) |
Forward Currency Exchange Contracts | | | – 0 | – | | | (12,952 | ) | | | – 0 | – | | | (12,952 | ) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | (541,219 | ) | | | – 0 | – | | | (541,219 | )(b) |
| | | | | | | | | | | | | | | | |
Total | | $ | 11,899,697 | | | $ | 158,392,046 | | | $ | 66 | | | $ | 170,291,809 | |
| | | | | | | | | | | | | | | | |
| (a) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments 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 real estate investment trust (“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.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the next $2.5 billion up to $5 billion, .35% of the excess over $5 billion up to $8 billion and .30% in excess of $8 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding interest expense) on an annual basis (the “Expense Caps”) to .77%, 1.52%, .52%, .52%, and .52% of the daily average net assets for the Class A, Class C, Advisor Class, Class I and Class Z shares, respectively. This waiver extends through January 31, 2025 and then may be extended by the Adviser for additional one year terms. For the year ended October 31, 2024, such reimbursements/waivers amounted to $596,551.
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NOTES TO FINANCIAL STATEMENTS (continued)
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2024, the reimbursement for such services amounted to $59,452.
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 $103,092 for the year ended October 31, 2024.
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 $1,580 from the sale of Class A shares and received $503 and $185 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2024, such waiver amounted to $2,009.
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
10/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
10/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 281 | | | $ | 85,879 | | | $ | 73,403 | | | $ | 12,757 | | | $ | 88 | |
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NOTES TO FINANCIAL STATEMENTS (continued)
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the 1940 Act. 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 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 $1,215,467, $150,395 and $71,483 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, and the share class is active, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 32,476,092 | | | $ | 35,429,136 | |
U.S. government securities | | | 241,198,351 | | | | 238,909,868 | |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 177,960,366 | |
| | | | |
Gross unrealized appreciation | | $ | 2,434,196 | |
Gross unrealized depreciation | | | (9,061,374 | ) |
| | | | |
Net unrealized depreciation | | $ | (6,627,178 | ) |
| | | | |
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NOTES TO FINANCIAL STATEMENTS (continued)
1. Derivative Financial Instruments
The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.
The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:
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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
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NOTES TO FINANCIAL STATEMENTS (continued)
vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the year ended October 31, 2024, 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 year ended October 31, 2024, the Fund held forward currency exchange contracts for hedging purposes.
The Fund may enter into swaps for investment purposes or 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, rates or indexes for a specified amount of an underlying asset or inflation. 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.
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NOTES TO FINANCIAL STATEMENTS (continued)
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, inflation 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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments are known as variation margin and are recorded by the
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NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024, 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
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NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024, 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
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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 table below for additional details.
During the year ended October 31, 2024, 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 | | $ | 35,649 | * | | Payable for variation margin on futures | | $ | 893,125 | * |
| | | | |
Credit contracts | | Receivable for variation margin on centrally cleared swaps | | | 1,976 | * | | Payable for variation margin on centrally cleared swaps | | | 15,442 | * |
| | | | |
Interest rate contracts | | Receivable for variation margin on centrally cleared swaps | | | 123,097 | * | | | | | | |
| | | | |
Foreign currency contracts | | | | | | | | Unrealized depreciation on forward currency exchange contracts | | | 12,952 | |
| | | | | | | | | | | | |
Total | | | | $ | 160,722 | | | | | $ | 921,519 | |
| | | | | | | | | | | | |
| * | 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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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) | |
Interest rate contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | $ | 557,544 | | | $ | 1,531,866 | |
| | | |
Foreign currency contracts | | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts | | | 7,518 | | | | (19,831 | ) |
| | | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | 25,187 | | | | (54,839 | ) |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (900,377 | ) | | | (111,048 | ) |
| | | | | | | | | | |
Total | | | | $ | (310,128) | | | $ | 1,346,148 | |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 40,195,218 | |
Average notional amount of sale contracts | | $ | 2,531,603 | (a) |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 389,284 | (b) |
Average principal amount of sale contracts | | $ | 2,014,175 | |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 2,000,000 | |
Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 106,639 | |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 15,590,600 | |
Average notional amount of sale contracts | | $ | 7,689,381 | |
| (a) | Positions were open for eleven months during the year. |
| (b) | Positions were open for four months during the year. |
| (c) | Positions were open for nine months during the year. |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 45 |
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 October 31, 2024. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.
Total Return Bond Portfolio
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative
Liabilities
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net Amount
of Derivative
Liabilities | |
NatWest Markets PLC | | $ | 12,952 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 12,952 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 12,952 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 12,952 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | 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,
| | |
| |
46 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.
The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2024, the Fund had a drop loss of $16,131 which is included as an adjustment to interest income in the accompanying statement of operations.
NOTE E
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | |
Shares sold | | | 423,491 | | | | 561,094 | | | | | | | $ | 3,942,735 | | | $ | 5,196,575 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 437,025 | | | | 535,994 | | | | | | | | 4,061,287 | | | | 4,965,237 | | | | | |
| | | | | |
Shares converted from Class C | | | 76,654 | | | | 63,834 | | | | | | | | 722,835 | | | | 583,370 | | | | | |
| | | | | |
Shares redeemed | | | (2,505,581 | ) | | | (2,915,158 | ) | | | | | | | (23,225,064 | ) | | | (26,937,136 | ) | | | | |
| | | | | |
Net decrease | | | (1,568,411 | ) | | | (1,754,236 | ) | | | | | | $ | (14,498,207 | ) | | $ | (16,191,954 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | |
Shares sold | | | 40,901 | | | | 49,025 | | | | | | | $ | 377,876 | | | $ | 452,702 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 5,113 | | | | 6,820 | | | | | | | | 47,322 | | | | 63,084 | | | | | |
| | | | | |
Shares converted to Class A | | | (76,821 | ) | | | (63,991 | ) | | | | | | | (722,835 | ) | | | (583,370 | ) | | | | |
| | | | | |
Shares redeemed | | | (45,047 | ) | | | (104,353 | ) | | | | | | | (414,487 | ) | | | (963,722 | ) | | | | |
| | | | | |
Net decrease | | | (75,854 | ) | | | (112,499 | ) | | | | | | $ | (712,124 | ) | | $ | (1,031,306 | ) | | | | |
| | | | | |
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 47 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | | | Year Ended
October 31,
2024 | | | Year Ended
October 31,
2023 | | | | |
| | | | | | | | |
| Advisor Class | | | | | |
Shares sold | | | 1,229,406 | | | | 888,746 | | | | | | | $ | 11,380,073 | | | $ | 8,268,729 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 117,268 | | | | 141,979 | | | | | | | | 1,090,486 | | | | 1,316,024 | | | | | |
| | | | | |
Shares redeemed | | | (1,454,451 | ) | | | (2,329,519 | ) | | | | | | | (13,586,690 | ) | | | (21,543,120 | ) | | | | |
| | | | | |
Net decrease | | | (107,777 | ) | | | (1,298,794 | ) | | | | | | $ | (1,116,131 | ) | | $ | (11,958,367 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | |
Shares sold | | | 4,655 | | | | 10,799 | | | | | | | $ | 43,005 | | | $ | 99,601 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 991 | | | | 1,921 | | | | | | | | 9,148 | | | | 17,771 | | | | | |
| | | | | |
Shares redeemed | | | (55,115 | ) | | | (5,291 | ) | | | | | | | (503,848 | ) | | | (48,682 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (49,469 | ) | | | 7,429 | | | | | | | $ | (451,695 | ) | | $ | 68,690 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class K | | | | | |
Shares sold | | | 15,807 | | | | 53,228 | | | | | | | $ | 146,507 | | | $ | 498,699 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 4,583 | | | | 11,843 | | | | | | | | 42,323 | | | | 109,692 | | | | | |
| | | | | |
Shares redeemed | | | (294,180 | ) | | | (44,462 | ) | | | | | | | (2,704,243 | ) | | | (416,566 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (273,790 | ) | | | 20,609 | | | | | | | $ | (2,515,413 | ) | | $ | 191,825 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | | |
Shares sold | | | 33,116 | | | | 11,143 | | | | | | | $ | 307,214 | | | $ | 102,992 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 2,202 | | | | 3,473 | | | | | | | | 20,495 | | | | 32,238 | | | | | |
| | | | | |
Shares redeemed | | | (46,287 | ) | | | (36,319 | ) | | | | | | | (429,259 | ) | | | (335,980 | ) | | | | |
| | | | | |
Net decrease | | | (10,969 | ) | | | (21,703 | ) | | | | | | $ | (101,550 | ) | | $ | (200,750 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z | | | | | |
Shares sold | | | 105,146 | | | | 116,291 | | | | | | | $ | 984,266 | | | $ | 1,081,338 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 13,349 | | | | 13,346 | | | | | | | | 124,368 | | | | 123,608 | | | | | |
| | | | | |
Shares redeemed | | | (127,960 | ) | | | (47,607 | ) | | | | | | | (1,190,694 | ) | | | (439,008 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (9,465 | ) | | | 82,030 | | | | | | | $ | (82,060 | ) | | $ | 765,938 | | | | | |
| | | | | |
| | |
| |
48 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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.
Interest-Rate Risk—Changes in interest rates will affect the value of the Fund’s 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 effects of potential central bank monetary policy, and government fiscal policy, initiatives and 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 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
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 49 |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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.
| | |
| |
50 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
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, reference rate or index, 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. lliquid 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.
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”)
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 51 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 year ended October 31, 2024.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal year ended October 31, 2024 and the year ended October 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 7,193,361 | | | $ | 8,075,233 | |
| | | | | | | | |
Total taxable distributions paid | | | 7,193,361 | | | | 8,075,233 | |
Return of Capital | | | – 0 | – | | | 633,133 | |
| | | | | | | | |
Total distributions paid | | $ | 7,193,361 | | | $ | 8,708,366 | |
| | | | | | | | |
As of October 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 102,035 | |
Accumulated capital and other losses | | | (40,234,148 | )(a) |
Unrealized appreciation (depreciation) | | | (6,627,161 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (46,759,274 | )(c) |
| | | | |
| (a) | As of October 31, 2024, the Fund had a net capital loss carryforward of $40,121,101. As of October 31, 2024, the cumulative deferred loss on straddles was $113,047. |
| (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, 2024, the Fund had a net short-term capital loss carryforward of $17,037,977 and a net long-term capital loss carryforward of $23,083,124, which may be carried forward for an indefinite period.
During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.
| | |
| |
52 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
NOTE J
Subsequent Events
At meetings held on November 5-7 2024, the Board approved the reorganization of the Fund into AB Core Plus Bond ETF (the “Acquiring Portfolio”) a series of AB Active ETFs, Inc., an existing exchange-traded fund (“ETF”) (the “Acquisition”), which is managed by the Adviser. Pursuant to an Agreement and Plan of Acquisition and Termination, the Fund will be converted into the Acquiring Portfolio. The closing date of the Acquisition is expected to occur on or about February 10, 2025. The Acquisition does not require stockholder approval and stockholders are not being asked to vote. An Information Statement/Prospectus addressing the Acquisition dated December 18, 2024 has been filed with the Securities and Exchange Commission.
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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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 53 |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.72 | | | | $ 9.02 | | | | $ 11.25 | | | | $ 11.53 | | | | $ 11.35 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .41 | | | | .37 | | | | .26 | | | | .25 | | | | .29 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .59 | | | | (.25 | ) | | | (2.21 | ) | | | (.11 | ) | | | .22 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.00 | | | | .12 | | | | (1.95 | ) | | | .14 | | | | .51 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.39 | ) | | | (.39 | ) | | | (.26 | ) | | | (.28 | ) | | | (.33 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | (.14 | ) | | | – 0 | – |
| | | | | |
Return of Capital Distributions | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.39 | ) | | | (.42 | ) | | | (.28 | ) | | | (.42 | ) | | | (.33 | ) |
| | | | |
Net asset value, end of period | | | $ 9.33 | | | | $ 8.72 | | | | $ 9.02 | | | | $ 11.25 | | | | $ 11.53 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(c) | | | 11.59 | % | | | 1.13 | % | | | (17.57 | )% | | | 1.22 | % | | | 4.60 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $121,965 | | | | $127,732 | | | | $148,009 | | | | $203,168 | | | | $224,484 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements | | | .77 | % | | | .77 | % | | | .77 | % | | | .77 | % | | | .77 | % |
| | | | | |
Expenses, before waivers/reimbursements | | | 1.13 | % | | | 1.17 | % | | | 1.06 | % | | | .99 | % | | | .99 | % |
| | | | | |
Net investment income(b) | | | 4.37 | % | | | 4.05 | % | | | 2.51 | % | | | 2.23 | % | | | 2.58 | % |
| | | | | |
Portfolio turnover rate** | | | 168 | % | | | 197 | % | | | 141 | % | | | 128 | % | | | 83 | % |
See footnote summary on page 59.
| | |
| |
54 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.70 | | | | $ 9.00 | | | | $ 11.23 | | | | $ 11.50 | | | | $ 11.32 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .34 | | | | .30 | | | | .17 | | | | .17 | | | | .21 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .58 | | | | (.25 | ) | | | (2.19 | ) | | | (.11 | ) | | | .22 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | .92 | | | | .05 | | | | (2.02 | ) | | | .06 | | | | .43 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.32 | ) | | | (.32 | ) | | | (.19 | ) | | | (.19 | ) | | | (.25 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | (.14 | ) | | | – 0 | – |
| | | | | |
Return of Capital Distributions | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.32 | ) | | | (.35 | ) | | | (.21 | ) | | | (.33 | ) | | | (.25 | ) |
| | | | |
Net asset value, end of period | | | $ 9.30 | | | | $ 8.70 | | | | $ 9.00 | | | | $ 11.23 | | | | $ 11.50 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(c) | | | 10.67 | % | | | .37 | % | | | (18.22 | )% | | | .55 | % | | | 3.83 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $1,278 | | | | $1,855 | | | | $2,932 | | | | $5,682 | | | | $10,128 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % |
| | | | | |
Expenses, before waivers/reimbursements | | | 1.88 | % | | | 1.92 | % | | | 1.81 | % | | | 1.74 | % | | | 1.75 | % |
| | | | | |
Net investment income(b) | | | 3.64 | % | | | 3.29 | % | | | 1.69 | % | | | 1.51 | % | | | 1.84 | % |
| | | | | |
Portfolio turnover rate** | | | 168 | % | | | 197 | % | | | 141 | % | | | 128 | % | | | 83 | % |
See footnote summary on page 59.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 55 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.73 | | | | $ 9.03 | | | | $ 11.26 | | | | $ 11.53 | | | | $ 11.35 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .43 | | | | .40 | | | | .28 | | | | .28 | | | | .32 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .59 | | | | (.26 | ) | | | (2.20 | ) | | | (.10 | ) | | | .22 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.02 | | | | .14 | | | | (1.92 | ) | | | .18 | | | | .54 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.42 | ) | | | (.41 | ) | | | (.29 | ) | | | (.31 | ) | | | (.36 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | (.14 | ) | | | – 0 | – |
| | | | | |
Return of Capital Distributions | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.42 | ) | | | (.44 | ) | | | (.31 | ) | | | (.45 | ) | | | (.36 | ) |
| | | | |
Net asset value, end of period | | | $ 9.33 | | | | $ 8.73 | | | | $ 9.03 | | | | $ 11.26 | | | | $ 11.53 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(c) | | | 11.74 | % | | | 1.38 | %+ | | | (17.44 | )% | | | 1.56 | % | | | 4.86 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $33,478 | | | | $32,248 | | | | $45,095 | | | | $102,827 | | | | $122,108 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % |
| | | | | |
Expenses, before waivers/reimbursements | | | .87 | % | | | .92 | % | | | .80 | % | | | .74 | % | | | .74 | % |
| | | | | |
Net investment income(b) | | | 4.61 | % | | | 4.28 | % | | | 2.66 | % | | | 2.47 | % | | | 2.82 | % |
| | | | | |
Portfolio turnover rate** | | | 168 | % | | | 197 | % | | | 141 | % | | | 128 | % | | | 83 | % |
See footnote summary on page 59.
| | |
| |
56 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class I | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.73 | | | | $ 9.04 | | | | $ 11.27 | | | | $ 11.55 | | | | $ 11.36 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .43 | | | | .40 | | | | .28 | | | | .28 | | | | .32 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .59 | | | | (.27 | ) | | | (2.20 | ) | | | (.11 | ) | | | .23 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.02 | | | | .13 | | | | (1.92 | ) | | | .17 | | | | .55 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.41 | ) | | | (.41 | ) | | | (.29 | ) | | | (.31 | ) | | | (.36 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | (.14 | ) | | | – 0 | – |
| | | | | |
Return of Capital Distributions | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.41 | ) | | | (.44 | ) | | | (.31 | ) | | | (.45 | ) | | | (.36 | ) |
| | | | |
Net asset value, end of period | | | $ 9.34 | | | | $ 8.73 | | | | $ 9.04 | | | | $ 11.27 | | | | $ 11.55 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(c) | | | 11.82 | % | | | 1.26 | %+ | | | (17.44 | )% | | | 1.46 | % | | | 4.93 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $478 | | | | $543 | | | | $758 | | | | $1,819 | | | | $2,743 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % |
| | | | | |
Expenses, before waivers/reimbursements | | | .85 | % | | | .89 | % | | | .75 | % | | | .68 | % | | | .70 | % |
| | | | | |
Net investment income(b) | | | 4.59 | % | | | 4.29 | % | | | 2.67 | % | | | 2.48 | % | | | 2.85 | % |
| | | | | |
Portfolio turnover rate** | | | 168 | % | | | 197 | % | | | 141 | % | | | 128 | % | | | 83 | % |
See footnote summary on page 59.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 57 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class Z | |
| | | Year Ended October 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 8.74 | | | | $ 9.04 | | | | $ 11.27 | | | | $ 11.55 | | | | $ 11.37 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .43 | | | | .40 | | | | .28 | | | | .29 | | | | .32 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .59 | | | | (.26 | ) | | | (2.20 | ) | | | (.12 | ) | | | .22 | |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.02 | | | | .14 | | | | (1.92 | ) | | | .17 | | | | .54 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.41 | ) | | | (.41 | ) | | | (.29 | ) | | | (.31 | ) | | | (.36 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | (.14 | ) | | | – 0 | – |
| | | | | |
Return of Capital Distributions | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.41 | ) | | | (.44 | ) | | | (.31 | ) | | | (.45 | ) | | | (.36 | ) |
| | | | |
Net asset value, end of period | | | $ 9.35 | | | | $ 8.74 | | | | $ 9.04 | | | | $ 11.27 | | | | $ 11.55 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(c) | | | 11.84 | % | | | 1.38 | % | | | (17.34 | )% | | | 1.46 | % | | | 4.84 | % |
|
Ratios/Supplemental Data | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $2,988 | | | | $2,877 | | | | $2,234 | | | | $3,193 | | | | $5,824 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % | | | .52 | % |
| | | | | |
Expenses, before waivers/reimbursements | | | .76 | % | | | .81 | % | | | .70 | % | | | .64 | % | | | .64 | % |
| | | | | |
Net investment income(b) | | | 4.60 | % | | | 4.30 | % | | | 2.70 | % | | | 2.51 | % | | | 2.82 | % |
| | | | | |
Portfolio turnover rate** | | | 168 | % | | | 197 | % | | | 141 | % | | | 128 | % | | | 83 | % |
See footnote summary on page 59.
| | |
| |
58 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| (a) | Based on average shares outstanding. |
| (b) | Net of expenses waived/reimbursed by the Adviser. |
| (c) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized. |
| + | 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 Fund accounts for dollar roll transactions as purchases and sales. |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 59 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
AB Total Return Bond Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Total Return Bond Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
| | |
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60 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more of the AB investment companies since 1968.
New York, New York
December 23, 2024
| | |
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 61 |
2024 FEDERAL TAX INFORMATION
(unaudited)
For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2024. For foreign shareholders, 78.65% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.
Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2025.
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62 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
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 (the “Fund”) at a meeting held in-person on July 30-31, 2024 (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 judg-
| | |
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 63 |
ment. 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 2022 and 2023 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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64 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the 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 Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2024 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 noted that it was equal to the median. They also noted that the Adviser’s total rate of compensation, taking into account the administrative expense reimbursement paid to the Adviser in the latest fiscal year, was above the median.
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| abfunds.com | | AB TOTAL RETURN BOND PORTFOLIO | 65 |
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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year and reflected the impact of 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
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66 | AB TOTAL RETURN BOND PORTFOLIO | | abfunds.com |
Fund’s expense ratio was in line with the medians. 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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NOTES
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AB TOTAL RETURN BOND PORTFOLIO
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
TRB-0151-1024 
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There were no disagreements with accountants during the reporting period.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
ABF – AB All Market Real Return Portfolio
At a Special Meeting held on July 18, 2024, shareholders of AB All Market Real Return Portfolio (the “Fund”), a series of AB Bond Fund, Inc., elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklin and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | Broker Non-Votes |
Jorge A. Bermudez | | | 569,016,292.601 | | | | 61,523,285.298 | | | N/A | | N/A |
Alexander Chaloff | | | 625,504,935.690 | | | | 5,034,642.209 | | | N/A | | N/A |
R. Jay Gerken | | | 625,142,617.785 | | | | 5,396,960.114 | | | N/A | | N/A |
Jeffrey R. Holland | | | 625,417,104.544 | | | | 5,122,473.355 | | | N/A | | N/A |
Jeanette W. Loeb | | | 527,628,025.087 | | | | 102,911,552.812 | | | N/A | | N/A |
Carol C. McMullen | | | 569,273,581.612 | | | | 61,265,996.287 | | | N/A | | N/A |
Garry L. Moody | | | 566,371,638.369 | | | | 64,167,939.530 | | | N/A | | N/A |
Emilie D. Wrapp | | | 624,337,448.713 | | | | 6,202,129.186 | | | N/A | | N/A |
ABF – AB Bond Inflation Strategy
At a Special Meeting held on July 18, 2024, shareholders of AB Bond Inflation Strategy (the “Fund”), a series of AB Bond Fund, Inc., elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklin and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | Broker Non-Votes |
Jorge A. Bermudez | | | 569,016,292.601 | | | | 61,523,285.298 | | | N/A | | N/A |
Alexander Chaloff | | | 625,504,935.690 | | | | 5,034,642.209 | | | N/A | | N/A |
R. Jay Gerken | | | 625,142,617.785 | | | | 5,396,960.114 | | | N/A | | N/A |
Jeffrey R. Holland | | | 625,417,104.544 | | | | 5,122,473.355 | | | N/A | | N/A |
Jeanette W. Loeb | | | 527,628,025.087 | | | | 102,911,552.812 | | | N/A | | N/A |
Carol C. McMullen | | | 569,273,581.612 | | | | 61,265,996.287 | | | N/A | | N/A |
Garry L. Moody | | | 566,371,638.369 | | | | 64,167,939.530 | | | N/A | | N/A |
Emilie D. Wrapp | | | 624,337,448.713 | | | | 6,202,129.186 | | | N/A | | N/A |
ABF – AB Income Fund
At a Special Meeting held on July 18, 2024, shareholders of AB Income Fund (the “Fund”), a series of AB Bond Fund, Inc., elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklin and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | Broker Non-Votes |
Jorge A. Bermudez | | | 569,016,292.601 | | | | 61,523,285.298 | | | N/A | | N/A |
Alexander Chaloff | | | 625,504,935.690 | | | | 5,034,642.209 | | | N/A | | N/A |
R. Jay Gerken | | | 625,142,617.785 | | | | 5,396,960.114 | | | N/A | | N/A |
Jeffrey R. Holland | | | 625,417,104.544 | | | | 5,122,473.355 | | | N/A | | N/A |
Jeanette W. Loeb | | | 527,628,025.087 | | | | 102,911,552.812 | | | N/A | | N/A |
Carol C. McMullen | | | 569,273,581.612 | | | | 61,265,996.287 | | | N/A | | N/A |
Garry L. Moody | | | 566,371,638.369 | | | | 64,167,939.530 | | | N/A | | N/A |
Emilie D. Wrapp | | | 624,337,448.713 | | | | 6,202,129.186 | | | N/A | | N/A |
ABF – AB Municipal Bond Inflation Strategy
At a Special Meeting held on July 18, 2024, shareholders of AB Municpal Bond Inflation Strategy (the “Fund”), a series of AB Bond Fund, Inc., elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklin and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | Broker Non-Votes |
Jorge A. Bermudez | | | 569,016,292.601 | | | | 61,523,285.298 | | | N/A | | N/A |
Alexander Chaloff | | | 625,504,935.690 | | | | 5,034,642.209 | | | N/A | | N/A |
R. Jay Gerken | | | 625,142,617.785 | | | | 5,396,960.114 | | | N/A | | N/A |
Jeffrey R. Holland | | | 625,417,104.544 | | | | 5,122,473.355 | | | N/A | | N/A |
Jeanette W. Loeb | | | 527,628,025.087 | | | | 102,911,552.812 | | | N/A | | N/A |
Carol C. McMullen | | | 569,273,581.612 | | | | 61,265,996.287 | | | N/A | | N/A |
Garry L. Moody | | | 566,371,638.369 | | | | 64,167,939.530 | | | N/A | | N/A |
Emilie D. Wrapp | | | 624,337,448.713 | | | | 6,202,129.186 | | | N/A | | N/A |
ABF – AB Total Return Bond Portfolio
At a Special Meeting held on July 18, 2024, shareholders of AB Total Return Bond Portfolio (the “Fund”), a series of AB Bond Fund, Inc., elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklin and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | Broker Non-Votes |
Jorge A. Bermudez | | | 569,016,292.601 | | | | 61,523,285.298 | | | N/A | | N/A |
Alexander Chaloff | | | 625,504,935.690 | | | | 5,034,642.209 | | | N/A | | N/A |
R. Jay Gerken | | | 625,142,617.785 | | | | 5,396,960.114 | | | N/A | | N/A |
Jeffrey R. Holland | | | 625,417,104.544 | | | | 5,122,473.355 | | | N/A | | N/A |
Jeanette W. Loeb | | | 527,628,025.087 | | | | 102,911,552.812 | | | N/A | | N/A |
Carol C. McMullen | | | 569,273,581.612 | | | | 61,265,996.287 | | | N/A | | N/A |
Garry L. Moody | | | 566,371,638.369 | | | | 64,167,939.530 | | | N/A | | N/A |
Emilie D. Wrapp | | | 624,337,448.713 | | | | 6,202,129.186 | | | N/A | | N/A |
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Aggregate remuneration paid to all Directors and advisory board members are included within the Financial Statements under Item 7 of this Form N-CSR.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Statement regarding basis for Approval of Investment Advisory Contract included within the Financial Statements under Item 7 of this Form N-CSR.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY OF AND AFFILIDATED PURCHASERS.
Not applicable to the registrant.
ITEM 15. 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 16. 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 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable to the registrant
ITEM 19. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
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.
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| By: | | /s/ Onur Erzan |
| | Onur Erzan |
| | President |
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.
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| By: | | /s/ Onur Erzan |
| | Onur Erzan |
| | President |
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| By: | | /s/ Stephen M. Woetzel |
| | Stephen M. Woetzel |
| | Treasurer and Chief Financial Officer |
