AB Sustainable Thematic Credit Portfolio
Portfolio of Investments
July 31, 2023 (unaudited)
Principal (000) | U.S. $ Value | |||||||||||
CORPORATES - INVESTMENT GRADE – 94.1% |
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Industrial – 53.0% |
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Basic – 1.3% |
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Arkema SA | EUR | 200 | $ | 197,250 | ||||||||
Ecolab, Inc. | U.S.$ | 525 | 333,902 | |||||||||
Inversiones CMPC SA | 905 | 809,957 | ||||||||||
Packaging Corp. of America | 300 | 236,666 | ||||||||||
Sealed Air Corp. | 1,485 | 1,316,031 | ||||||||||
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2,893,806 | ||||||||||||
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Capital Goods – 6.0% |
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CNH Industrial Capital LLC | 1,605 | 1,437,892 | ||||||||||
5.45%, 10/14/2025 | 360 | 359,402 | ||||||||||
Eaton Corp. | 380 | 359,741 | ||||||||||
4.35%, 05/18/2028 | 249 | 243,998 | ||||||||||
4.70%, 08/23/2052 | 380 | 359,525 | ||||||||||
Emerson Electric Co. | 715 | 689,642 | ||||||||||
John Deere Capital Corp. | 420 | 417,741 | ||||||||||
4.75%, 01/20/2028 | 933 | 930,670 | ||||||||||
4.85%, 10/11/2029 | 263 | 264,865 | ||||||||||
4.95%, 07/14/2028 | 428 | 430,799 | ||||||||||
Parker-Hannifin Corp. | 1,305 | 1,193,987 | ||||||||||
4.45%, 11/21/2044 | 325 | 286,411 | ||||||||||
6.25%, 05/15/2038 | 490 | 522,475 | ||||||||||
Regal Rexnord Corp. | 104 | 103,579 | ||||||||||
6.40%, 04/15/2033(a) | 123 | 122,526 | ||||||||||
Republic Services, Inc. | 1,275 | 995,468 | ||||||||||
Siemens Financieringsmaatschappij NV | 960 | 870,494 | ||||||||||
Trane Technologies Financing Ltd. | 154 | 155,176 | ||||||||||
Trane Technologies Global Holding Co., Ltd. | 495 | 501,920 | ||||||||||
Trane Technologies Luxembourg Finance SA | 405 | 387,558 | ||||||||||
Waste Management, Inc. | 470 | 372,763 | ||||||||||
2.95%, 06/01/2041 | 710 | 524,837 |
1
Principal (000) | U.S. $ Value | |||||||||||
Xylem, Inc./NY | U.S.$ | 1,725 | $ | 1,518,533 | ||||||||
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13,050,002 | ||||||||||||
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Communications - Media – 1.6% |
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Charter Communications Operating LLC/Charter Communications Operating Capital | 390 | 343,081 | ||||||||||
6.384%, 10/23/2035 | 545 | 535,330 | ||||||||||
6.834%, 10/23/2055 | 630 | 595,799 | ||||||||||
Comcast Corp. | 590 | 582,713 | ||||||||||
TCI Communications, Inc. | 845 | 897,889 | ||||||||||
Thomson Reuters Corp. | 570 | 564,334 | ||||||||||
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3,519,146 | ||||||||||||
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Communications - Telecommunications – 6.0% |
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AT&T, Inc. | 397 | 327,002 | ||||||||||
4.50%, 05/15/2035 | 573 | 516,766 | ||||||||||
British Telecommunications PLC | 760 | 933,605 | ||||||||||
Corning, Inc. | 62 | 57,560 | ||||||||||
5.45%, 11/15/2079 | 280 | 257,231 | ||||||||||
Sprint Capital Corp. | 1,070 | 1,289,680 | ||||||||||
T-Mobile USA, Inc. | 1,765 | 1,451,333 | ||||||||||
3.60%, 11/15/2060 | 445 | 306,995 | ||||||||||
3.875%, 04/15/2030 | 358 | 329,008 | ||||||||||
5.05%, 07/15/2033 | 1,029 | 1,006,392 | ||||||||||
5.80%, 09/15/2062 | 285 | 285,453 | ||||||||||
Telefonica Emisiones SA | 695 | 576,581 | ||||||||||
5.213%, 03/08/2047 | 1,116 | 969,582 | ||||||||||
TELUS Corp. | 1,194 | 1,010,763 | ||||||||||
4.30%, 06/15/2049 | 505 | 406,498 | ||||||||||
Verizon Communications, Inc. | 416 | 332,000 | ||||||||||
2.85%, 09/03/2041 | 1,135 | 797,323 | ||||||||||
3.875%, 02/08/2029 | 835 | 785,772 | ||||||||||
Vodafone Group PLC | 930 | 738,576 | ||||||||||
4.875%, 06/19/2049 | 617 | 539,883 | ||||||||||
5.125%, 06/19/2059 | 265 | 232,825 | ||||||||||
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13,150,828 | ||||||||||||
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Consumer Cyclical - Automotive – 3.9% |
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Aptiv PLC | 407 | 393,561 | ||||||||||
4.40%, 10/01/2046 | 180 | 140,468 | ||||||||||
5.40%, 03/15/2049 | 215 | 193,015 |
2
Principal (000) | U.S. $ Value | |||||||||||
Aptiv PLC/Aptiv Corp. | U.S.$ | 605 | $ | 518,402 | ||||||||
4.15%, 05/01/2052 | 395 | 302,253 | ||||||||||
Ford Motor Co. | 871 | 688,254 | ||||||||||
General Motors Co. | 1,353 | 1,324,822 | ||||||||||
5.95%, 04/01/2049 | 395 | 369,930 | ||||||||||
General Motors Financial Co., Inc. | 365 | 293,202 | ||||||||||
3.85%, 01/05/2028 | 435 | 406,986 | ||||||||||
5.80%, 06/23/2028 | 311 | 312,277 | ||||||||||
5.85%, 04/06/2030 | 562 | 561,430 | ||||||||||
6.05%, 10/10/2025 | 360 | 362,682 | ||||||||||
Harley-Davidson, Inc. | 548 | 529,179 | ||||||||||
Lear Corp. | 1,827 | 1,435,886 | ||||||||||
4.25%, 05/15/2029 | 415 | 392,030 | ||||||||||
5.25%, 05/15/2049 | 345 | 305,683 | ||||||||||
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8,530,060 | ||||||||||||
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Consumer Cyclical - Other – 1.8% |
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DR Horton, Inc. | 1,355 | 1,306,705 | ||||||||||
PulteGroup, Inc. | 410 | 419,672 | ||||||||||
6.375%, 05/15/2033 | 965 | 1,013,464 | ||||||||||
7.875%, 06/15/2032 | 1,003 | 1,145,249 | ||||||||||
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3,885,090 | ||||||||||||
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Consumer Cyclical - Retailers – 1.7% |
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Home Depot, Inc. (The) | 1,425 | 1,223,585 | ||||||||||
Lowe’s Cos., Inc. | 665 | 512,704 | ||||||||||
5.50%, 10/15/2035 | 660 | 667,271 | ||||||||||
5.80%, 09/15/2062 | 645 | 640,273 | ||||||||||
VF Corp. | 622 | 515,266 | ||||||||||
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3,559,099 | ||||||||||||
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Consumer Non-Cyclical – 13.4% |
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Abbott Laboratories | 1,065 | 1,067,960 | ||||||||||
AbbVie, Inc. | 474 | 459,418 | ||||||||||
4.45%, 05/14/2046 | 435 | 384,190 | ||||||||||
4.875%, 11/14/2048 | 1,275 | 1,195,240 | ||||||||||
Amgen, Inc. | 805 | 689,373 | ||||||||||
AstraZeneca PLC | 445 | 506,520 | ||||||||||
Baxalta, Inc. | 942 | 915,738 | ||||||||||
Baxter International, Inc. | 1,405 | 980,659 |
3
Principal (000) | U.S. $ Value | |||||||||||
Becton Dickinson and Co. | U.S.$ | 1,130 | $ | 986,471 | ||||||||
Biogen, Inc. | 1,485 | 1,225,506 | ||||||||||
3.15%, 05/01/2050 | 150 | 101,107 | ||||||||||
Bristol-Myers Squibb Co. | 510 | 403,779 | ||||||||||
3.90%, 03/15/2062 | 495 | 389,238 | ||||||||||
4.25%, 10/26/2049 | 725 | 629,719 | ||||||||||
Cigna Group (The) | 410 | 340,689 | ||||||||||
4.80%, 08/15/2038 | 600 | 562,007 | ||||||||||
4.90%, 12/15/2048 | 260 | 239,847 | ||||||||||
Conagra Brands, Inc. | 545 | 514,984 | ||||||||||
CVS Health Corp. | 900 | 829,646 | ||||||||||
4.875%, 07/20/2035 | 1,305 | 1,237,806 | ||||||||||
5.00%, 02/20/2026 | 385 | 383,568 | ||||||||||
6.00%, 06/01/2063 | 936 | 949,208 | ||||||||||
Danaher Corp. | 225 | 148,539 | ||||||||||
4.375%, 09/15/2045 | 610 | 553,751 | ||||||||||
DH Europe Finance II SARL | 450 | 347,227 | ||||||||||
Eli Lilly & Co. | 958 | 920,533 | ||||||||||
Fresenius Medical Care US Finance III, Inc. | 945 | 739,820 | ||||||||||
Gilead Sciences, Inc. | 320 | 288,478 | ||||||||||
4.75%, 03/01/2046 | 375 | 351,806 | ||||||||||
4.80%, 04/01/2044 | 410 | 387,442 | ||||||||||
HCA, Inc. | 425 | 291,822 | ||||||||||
4.625%, 03/15/2052(a) | 660 | 541,663 | ||||||||||
5.50%, 06/01/2033 | 525 | 522,547 | ||||||||||
5.50%, 06/15/2047 | 735 | 685,480 | ||||||||||
Kaiser Foundation Hospitals | 200 | 145,129 | ||||||||||
Kenvue, Inc. | 288 | 290,055 | ||||||||||
Medtronic, Inc. | 365 | 352,331 | ||||||||||
Merck & Co., Inc. | 1,800 | 1,574,261 | ||||||||||
2.90%, 12/10/2061 | 225 | 145,712 | ||||||||||
Pfizer Investment Enterprises Pte Ltd. | 423 | 418,365 | ||||||||||
Pfizer, Inc. | 775 | 689,881 | ||||||||||
7.20%, 03/15/2039 | 285 | 349,007 | ||||||||||
Roche Holdings, Inc. | 1,970 | 1,879,589 | ||||||||||
Stryker Corp. | 1,008 | 933,915 |
4
Principal (000) | U.S. $ Value | |||||||||||
Sutter Health | U.S.$ | 182 | �� | $ | 181,201 | |||||||
Takeda Pharmaceutical Co., Ltd. | 340 | 236,887 | ||||||||||
Thermo Fisher Scientific, Inc. | 1,275 | 938,371 | ||||||||||
Wyeth LLC | 265 | 287,531 | ||||||||||
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29,194,016 | ||||||||||||
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Services – 3.1% |
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Global Payments, Inc. | 1,970 | 1,734,391 | ||||||||||
5.95%, 08/15/2052 | 405 | 394,661 | ||||||||||
Mastercard, Inc. | 2,565 | 2,189,595 | ||||||||||
Moody’s Corp. | 265 | 256,706 | ||||||||||
PayPal Holdings, Inc. | 600 | 581,609 | ||||||||||
RELX Capital, Inc. | 60 | 58,523 | ||||||||||
S&P Global, Inc. | 590 | 333,322 | ||||||||||
2.90%, 03/01/2032 | 863 | 745,840 | ||||||||||
3.90%, 03/01/2062 | 235 | 191,935 | ||||||||||
4.25%, 05/01/2029 | 58 | 56,449 | ||||||||||
Verisk Analytics, Inc. | 264 | 272,971 | ||||||||||
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6,816,002 | ||||||||||||
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Technology – 13.2% |
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Apple, Inc. | 190 | 165,427 | ||||||||||
Autodesk, Inc. | 1,824 | 1,496,892 | ||||||||||
Broadcom, Inc. | 643 | 521,834 | ||||||||||
3.187%, 11/15/2036(a) | 694 | 523,927 | ||||||||||
3.419%, 04/15/2033(a) | 641 | 535,924 | ||||||||||
Broadridge Financial Solutions, Inc. | 1,460 | 1,202,788 | ||||||||||
2.90%, 12/01/2029 | 569 | 493,142 | ||||||||||
CDW LLC/CDW Finance Corp. | 986 | 867,851 | ||||||||||
4.125%, 05/01/2025 | 1,545 | 1,499,746 | ||||||||||
Cisco Systems, Inc. | 1,075 | 1,138,847 | ||||||||||
5.90%, 02/15/2039 | 50 | 55,040 | ||||||||||
Entegris Escrow Corp. | 390 | 364,046 | ||||||||||
Fiserv, Inc. | 500 | 419,332 | ||||||||||
HP, Inc. | 650 | 531,271 | ||||||||||
5.50%, 01/15/2033 | 740 | 729,835 |
5
Principal (000) | U.S. $ Value | |||||||||||
International Business Machines Corp. | U.S.$ | 575 | $ | 416,708 | ||||||||
4.00%, 06/20/2042 | 865 | 730,523 | ||||||||||
4.90%, 07/27/2052 | 735 | 686,345 | ||||||||||
Jabil, Inc. | 1,429 | 1,366,677 | ||||||||||
5.45%, 02/01/2029 | 115 | 114,413 | ||||||||||
KLA Corp. | 510 | 494,614 | ||||||||||
5.00%, 03/15/2049 | 900 | 867,457 | ||||||||||
Lam Research Corp. | 1,220 | 839,798 | ||||||||||
3.125%, 06/15/2060 | 480 | 320,114 | ||||||||||
Micron Technology, Inc. | 1,610 | 1,279,310 | ||||||||||
5.375%, 04/15/2028 | 25 | 24,779 | ||||||||||
5.875%, 02/09/2033 | 144 | 144,098 | ||||||||||
6.75%, 11/01/2029 | 189 | 198,593 | ||||||||||
Microsoft Corp. | 500 | 330,077 | ||||||||||
NXP BV/NXP Funding LLC/NXP USA, Inc. | 515 | 476,066 | ||||||||||
3.25%, 05/11/2041 | 705 | 512,239 | ||||||||||
5.00%, 01/15/2033 | 365 | 349,988 | ||||||||||
Oracle Corp. | 673 | 529,946 | ||||||||||
4.65%, 05/06/2030 | 538 | 520,590 | ||||||||||
6.90%, 11/09/2052 | 489 | 547,939 | ||||||||||
QUALCOMM, Inc. | 1,465 | 1,456,794 | ||||||||||
Salesforce.com, Inc. | 642 | 443,005 | ||||||||||
SK Hynix, Inc. | 485 | 493,158 | ||||||||||
Skyworks Solutions, Inc. | 2,426 | 2,013,557 | ||||||||||
Texas Instruments, Inc. | 272 | 237,143 | ||||||||||
4.60%, 02/15/2028 | 545 | 545,443 | ||||||||||
VMware, Inc. | 545 | 517,849 | ||||||||||
Western Digital Corp. | 956 | 769,435 | ||||||||||
3.10%, 02/01/2032 | 500 | 367,847 | ||||||||||
Workday, Inc. | 56 | 52,253 | ||||||||||
3.80%, 04/01/2032 | 694 | 622,763 | ||||||||||
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28,815,423 | ||||||||||||
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Transportation - Railroads – 0.8% |
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Canadian Pacific Railway Co. | 1,000 | 1,047,880 | ||||||||||
CSX Corp. | 599 | 648,122 | ||||||||||
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1,696,002 | ||||||||||||
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6
Principal (000) | U.S. $ Value | |||||||||||
Transportation - Services – 0.2% |
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Ashtead Capital, Inc. | U.S.$ | 436 | $ | 435,270 | ||||||||
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115,544,744 | ||||||||||||
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Financial Institutions – 32.6% |
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Banking – 24.2% |
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ABN AMRO Bank NV | 1,800 | 1,525,165 | ||||||||||
4.80%, 04/18/2026(a) | 600 | 578,025 | ||||||||||
AIB Group PLC | 1,133 | 1,113,268 | ||||||||||
7.583%, 10/14/2026(a) | 323 | 331,137 | ||||||||||
Ally Financial, Inc. | 503 | 506,638 | ||||||||||
American Express Co. | 872 | 871,666 | ||||||||||
Banco Santander SA | 1,000 | 786,415 | ||||||||||
4.175%, 03/24/2028 | 400 | 376,308 | ||||||||||
4.25%, 04/11/2027 | 400 | 380,102 | ||||||||||
5.179%, 11/19/2025 | 200 | 195,419 | ||||||||||
5.294%, 08/18/2027 | 400 | 392,961 | ||||||||||
Bank of America Corp. | 470 | 406,830 | ||||||||||
3.705%, 04/24/2028 | 530 | 497,617 | ||||||||||
3.846%, 03/08/2037 | 985 | 849,208 | ||||||||||
4.376%, 04/27/2028 | 375 | 361,208 | ||||||||||
Series U | 355 | 354,886 | ||||||||||
Bank of Ireland Group PLC | 1,009 | 1,005,757 | ||||||||||
Barclays PLC | 539 | 527,126 | ||||||||||
5.088%, 06/20/2030 | 535 | 494,708 | ||||||||||
6.224%, 05/09/2034 | 297 | 299,138 | ||||||||||
7.119%, 06/27/2034 | 321 | 325,459 | ||||||||||
7.385%, 11/02/2028 | 219 | 230,371 | ||||||||||
BNP Paribas SA | 1,475 | 1,239,219 | ||||||||||
2.871%, 04/19/2032(a) | 200 | 164,988 | ||||||||||
6.625%, 03/25/2024(a) (c) | 200 | 195,430 | ||||||||||
7.375%, 08/19/2025(a) (c) | 690 | 679,732 | ||||||||||
BPCE SA | 855 | 837,680 | ||||||||||
5.15%, 07/21/2024(a) | 375 | 369,395 | ||||||||||
5.975%, 01/18/2027(a) | 277 | 275,937 | ||||||||||
CaixaBank SA | 259 | 259,965 | ||||||||||
Capital One Financial Corp. | 726 | 525,778 | ||||||||||
5.468%, 02/01/2029 | 116 | 113,296 | ||||||||||
6.312%, 06/08/2029 | 365 | 366,453 |
7
Principal (000) | U.S. $ Value | |||||||||||
Citigroup, Inc. | U.S.$ | 887 | $ | 745,894 | ||||||||
Cooperatieve Rabobank UA | 1,160 | 1,094,899 | ||||||||||
4.375%, 06/29/2027(a) (c) | EUR | 200 | 196,341 | |||||||||
Series E | U.S.$ | 800 | 780,596 | |||||||||
Credit Agricole SA | 1,285 | 1,148,333 | ||||||||||
5.589%, 07/05/2026(a) | 291 | 291,101 | ||||||||||
Series E | EUR | 200 | 188,664 | |||||||||
Deutsche Bank AG/New York NY | U.S.$ | 877 | 769,904 | |||||||||
3.742%, 01/07/2033 | 920 | 699,071 | ||||||||||
6.72%, 01/18/2029 | 249 | 253,701 | ||||||||||
7.079%, 02/10/2034 | 391 | 375,292 | ||||||||||
7.146%, 07/13/2027 | 203 | 206,999 | ||||||||||
Discover Financial Services | 213 | 218,207 | ||||||||||
Goldman Sachs Group, Inc. (The) | 805 | 717,958 | ||||||||||
3.691%, 06/05/2028 | 500 | 470,984 | ||||||||||
4.223%, 05/01/2029 | 350 | 331,889 | ||||||||||
4.482%, 08/23/2028 | 380 | 367,973 | ||||||||||
Series P | 441 | 438,541 | ||||||||||
HSBC Holdings PLC | 563 | 524,614 | ||||||||||
3.973%, 05/22/2030 | 550 | 496,695 | ||||||||||
4.755%, 06/09/2028 | 513 | 494,543 | ||||||||||
6.161%, 03/09/2029 | 200 | 202,677 | ||||||||||
6.547%, 06/20/2034 | 860 | 858,508 | ||||||||||
Intesa Sanpaolo SpA | 460 | 415,626 | ||||||||||
5.017%, 06/26/2024(a) | 730 | 712,395 | ||||||||||
Series XR | 1,170 | 1,021,931 | ||||||||||
JPMorgan Chase & Co. | 206 | 207,214 | ||||||||||
KBC Group NV | 229 | 228,868 | ||||||||||
Lloyds Banking Group PLC | 310 | 281,912 | ||||||||||
4.65%, 03/24/2026 | 630 | 606,908 | ||||||||||
4.716%, 08/11/2026 | 380 | 372,063 | ||||||||||
5.871%, 03/06/2029 | 287 | 286,105 | ||||||||||
7.50%, 06/27/2024(c) | 288 | 280,404 | ||||||||||
7.953%, 11/15/2033 | 533 | 581,650 |
8
Principal (000) | U.S. $ Value | |||||||||||
Mitsubishi UFJ Financial Group, Inc. | EUR | 200 | $ | 188,293 | ||||||||
1.64%, 10/13/2027 | U.S.$ | 461 | 407,527 | |||||||||
5.354%, 09/13/2028 | 370 | 368,231 | ||||||||||
5.475%, 02/22/2031 | 242 | 240,337 | ||||||||||
5.541%, 04/17/2026 | 596 | 593,099 | ||||||||||
Mizuho Financial Group, Inc. | 565 | 490,682 | ||||||||||
5.414%, 09/13/2028 | 498 | 494,762 | ||||||||||
5.667%, 05/27/2029 | 485 | 485,022 | ||||||||||
5.739%, 05/27/2031 | 485 | 484,285 | ||||||||||
5.748%, 07/06/2034 | 259 | 260,456 | ||||||||||
Morgan Stanley | 555 | 533,205 | ||||||||||
5.123%, 02/01/2029 | 417 | 412,394 | ||||||||||
6.296%, 10/18/2028 | 705 | 728,845 | ||||||||||
Nationwide Building Society | 1,065 | 962,617 | ||||||||||
NatWest Group PLC | 551 | 496,996 | ||||||||||
4.269%, 03/22/2025 | 403 | 397,784 | ||||||||||
7.472%, 11/10/2026 | 265 | 273,383 | ||||||||||
PNC Financial Services Group, Inc. (The) | 190 | 183,421 | ||||||||||
Santander Holdings USA, Inc. | 290 | 281,389 | ||||||||||
5.807%, 09/09/2026 | 659 | 654,620 | ||||||||||
6.499%, 03/09/2029 | 419 | 420,759 | ||||||||||
6.565%, 06/12/2029 | 499 | 497,978 | ||||||||||
Santander UK Group Holdings PLC | 514 | 451,348 | ||||||||||
6.534%, 01/10/2029 | 489 | 493,899 | ||||||||||
6.833%, 11/21/2026 | 905 | 918,162 | ||||||||||
Shinhan Bank Co., Ltd. | 385 | 348,155 | ||||||||||
Societe Generale SA | 960 | 856,958 | ||||||||||
2.889%, 06/09/2032(a) | 1,480 | 1,170,267 | ||||||||||
Standard Chartered PLC | 920 | 820,215 | ||||||||||
6.187%, 07/06/2027(a) | 390 | 393,301 | ||||||||||
Sumitomo Mitsui Financial Group, Inc. | 920 | 788,277 | ||||||||||
Svenska Handelsbanken AB | 1,000 | 791,027 | ||||||||||
Synchrony Bank | 570 | 540,795 | ||||||||||
UniCredit SpA | 621 | 548,763 | ||||||||||
Westpac Banking Corp. | 554 | 516,748 | ||||||||||
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52,799,745 | ||||||||||||
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Finance – 0.2% |
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Synchrony Financial | 295 | 263,310 |
9
Principal (000) | U.S. $ Value | |||||||||||
4.875%, 06/13/2025 | U.S.$ | 285 | $ | 275,497 | ||||||||
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538,807 | ||||||||||||
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Insurance – 2.6% |
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Allianz SE | 1,400 | 1,072,435 | ||||||||||
Assicurazioni Generali SpA | EUR | 545 | 496,919 | |||||||||
2.429%, 07/14/2031(a) | 470 | 427,740 | ||||||||||
Centene Corp. | U.S.$ | 1,295 | 1,036,492 | |||||||||
2.625%, 08/01/2031 | 708 | 565,950 | ||||||||||
Humana, Inc. | 635 | 499,380 | ||||||||||
5.75%, 03/01/2028 | 177 | 181,138 | ||||||||||
Prudential Financial, Inc. | 1,150 | 1,136,164 | ||||||||||
Zurich Finance Ireland Designated Activity Co. | 200 | 157,716 | ||||||||||
|
| |||||||||||
5,573,934 | ||||||||||||
|
| |||||||||||
Other Finance – 0.1% |
| |||||||||||
GPS Blue Financing DAC | 200 | 206,389 | ||||||||||
|
| |||||||||||
REITs – 5.5% |
| |||||||||||
Alexandria Real Estate Equities, Inc. | 385 | 294,831 | ||||||||||
2.95%, 03/15/2034 | 1,158 | 927,233 | ||||||||||
American Tower Corp. | 163 | 131,638 | ||||||||||
2.95%, 01/15/2051 | 475 | 295,793 | ||||||||||
3.70%, 10/15/2049 | 510 | 362,700 | ||||||||||
3.80%, 08/15/2029 | 285 | 261,191 | ||||||||||
5.25%, 07/15/2028 | 270 | 267,385 | ||||||||||
5.55%, 07/15/2033 | 361 | 360,993 | ||||||||||
Boston Properties LP | 300 | 217,047 | ||||||||||
4.50%, 12/01/2028 | 1,400 | 1,299,109 | ||||||||||
6.50%, 01/15/2034 | 164 | 166,017 | ||||||||||
6.75%, 12/01/2027 | 183 | 187,287 | ||||||||||
Crown Castle, Inc. | 587 | 514,202 | ||||||||||
Digital Dutch Finco BV | EUR | 800 | 656,433 | |||||||||
Equinix, Inc. | U.S.$ | 771 | 649,610 | |||||||||
2.15%, 07/15/2030 | 711 | 576,683 | ||||||||||
3.90%, 04/15/2032 | 762 | 685,516 | ||||||||||
Healthpeak OP LLC | 677 | 591,632 | ||||||||||
Kilroy Realty LP | 242 | 217,922 |
10
Principal (000) | U.S. $ Value | |||||||||||
Omega Healthcare Investors, Inc. | U.S.$ | 765 | $ | 579,617 | ||||||||
Prologis LP | 1,155 | 896,832 | ||||||||||
3.00%, 04/15/2050 | 240 | 163,141 | ||||||||||
Simon Property Group LP | 384 | 387,130 | ||||||||||
Ventas Realty LP | 290 | 272,040 | ||||||||||
Welltower OP LLC | 765 | 682,833 | ||||||||||
Weyerhaeuser Co. | 390 | 335,015 | ||||||||||
7.375%, 03/15/2032 | 22 | 24,859 | ||||||||||
|
| |||||||||||
12,004,689 | ||||||||||||
|
| |||||||||||
71,123,564 | ||||||||||||
|
| |||||||||||
Utility – 8.5% |
| |||||||||||
Electric – 8.2% |
| |||||||||||
Avangrid, Inc. | 1,515 | 1,446,842 | ||||||||||
3.80%, 06/01/2029 | 673 | 617,110 | ||||||||||
Commonwealth Edison Co. | 205 | 140,197 | ||||||||||
Series 133 | 465 | 370,742 | ||||||||||
Consolidated Edison Co. of New York, Inc. | 505 | 365,669 | ||||||||||
4.50%, 05/15/2058 | 855 | 716,340 | ||||||||||
Series 05-A | 225 | 221,630 | ||||||||||
Series A | 155 | 125,826 | ||||||||||
Consorcio Transmantaro SA | 890 | 829,436 | ||||||||||
EDP Finance BV | 2,720 | 2,329,445 | ||||||||||
Electricite de France SA | 206 | 217,155 | ||||||||||
Enel Finance International NV | 1,270 | 1,003,150 | ||||||||||
6.80%, 09/15/2037(a) | 280 | 296,492 | ||||||||||
7.50%, 10/14/2032(a) | 200 | 223,214 | ||||||||||
Engie SA | EUR | 200 | 213,860 | |||||||||
Florida Power & Light Co. | U.S.$ | 595 | 611,414 | |||||||||
Iberdrola International BV | EUR | 1,100 | 957,520 | |||||||||
National Grid PLC | U.S.$ | 339 | 342,943 | |||||||||
NextEra Energy Capital Holdings, Inc. | 1,381 | 1,194,037 | ||||||||||
2.25%, 06/01/2030 | 440 | 365,688 |
11
Principal (000) | U.S. $ Value | |||||||||||
4.80%, 12/01/2077 | U.S.$ | 325 | $ | 288,345 | ||||||||
5.00%, 07/15/2032 | 540 | 530,463 | ||||||||||
Niagara Mohawk Power Corp. | 1,611 | 1,292,628 | ||||||||||
5.783%, 09/16/2052(a) | 370 | 372,792 | ||||||||||
Public Service Electric and Gas Co. | 1,219 | 1,066,490 | ||||||||||
3.80%, 03/01/2046 | 615 | 497,189 | ||||||||||
3.85%, 05/01/2049 | 460 | 375,478 | ||||||||||
San Diego Gas & Electric Co. | 1,275 | 862,407 | ||||||||||
|
| |||||||||||
17,874,502 | ||||||||||||
|
| |||||||||||
Other Utility – 0.3% |
| |||||||||||
American Water Capital Corp. | 735 | 529,351 | ||||||||||
3.45%, 05/01/2050 | 195 | 145,322 | ||||||||||
|
| |||||||||||
674,673 | ||||||||||||
|
| |||||||||||
18,549,175 | ||||||||||||
|
| |||||||||||
Total Corporates - Investment Grade | 205,217,483 | |||||||||||
|
| |||||||||||
CORPORATES - NON-INVESTMENT GRADE – 2.4% |
| |||||||||||
Industrial – 1.8% |
| |||||||||||
Capital Goods – 0.3% |
| |||||||||||
Clean Harbors, Inc. | 95 | 91,129 | ||||||||||
GFL Environmental, Inc. | 251 | 223,808 | ||||||||||
5.125%, 12/15/2026(a) | 445 | 433,076 | ||||||||||
|
| |||||||||||
748,013 | ||||||||||||
|
| |||||||||||
Communications - Media – 0.3% |
| |||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 889 | 736,402 | ||||||||||
|
| |||||||||||
Consumer Cyclical - Automotive – 0.7% |
| |||||||||||
Dana, Inc. | 935 | 799,569 | ||||||||||
Ford Motor Co. | 285 | 275,778 | ||||||||||
ZF North America Capital, Inc. | 200 | 203,161 | ||||||||||
7.125%, 04/14/2030(a) | 200 | 205,758 | ||||||||||
|
| |||||||||||
1,484,266 | ||||||||||||
|
| |||||||||||
Consumer Non-Cyclical – 0.2% |
| |||||||||||
US Acute Care Solutions LLC | 455 | 397,727 | ||||||||||
|
|
12
Principal (000) | U.S. $ Value | |||||||||||
Services – 0.1% |
| |||||||||||
Block, Inc. | U.S.$ | 200 | $ | 167,546 | ||||||||
|
| |||||||||||
Technology – 0.2% |
| |||||||||||
Seagate HDD Cayman | 305 | 319,454 | ||||||||||
|
| |||||||||||
3,853,408 | ||||||||||||
|
| |||||||||||
Financial Institutions – 0.6% |
| |||||||||||
REITs – 0.6% |
| |||||||||||
MPT Operating Partnership LP/MPT Finance Corp. | 1,445 | 1,267,229 | ||||||||||
|
| |||||||||||
Total Corporates - Non-Investment Grade | 5,120,637 | |||||||||||
|
| |||||||||||
EMERGING MARKETS - CORPORATE BONDS – 1.1% |
| |||||||||||
Industrial – 0.9% |
| |||||||||||
Basic – 0.8% |
| |||||||||||
Klabin Austria GmbH | 2,040 | 1,644,791 | ||||||||||
|
| |||||||||||
Energy – 0.1% |
| |||||||||||
ReNew Power Pvt Ltd. | 291 | 273,138 | ||||||||||
|
| |||||||||||
1,917,929 | ||||||||||||
|
| |||||||||||
Financial Institutions – 0.2% |
| |||||||||||
Banking – 0.2% |
| |||||||||||
Itau Unibanco Holding SA/Cayman Island | 480 | 439,911 | ||||||||||
|
| |||||||||||
Total Emerging Markets - Corporate Bonds | 2,357,840 | |||||||||||
|
| |||||||||||
SUPRANATIONALS – 0.4% |
| |||||||||||
International Bank for Reconstruction & Development | 970 | 876,997 | ||||||||||
|
| |||||||||||
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.0% |
| |||||||||||
United States – 0.0% |
| |||||||||||
Metropolitan Transportation Authority | 65 | 59,541 | ||||||||||
|
|
13
Company | Shares | U.S. $ Value | ||||||||||
SHORT-TERM INVESTMENTS – 0.8% |
| |||||||||||
Investment Companies – 0.8% |
| |||||||||||
AB Fixed Income Shares, Inc. - Government Money Market Portfolio - Class AB, 5.19%(d) (e) (f) | 1,809,446 | $ | 1,809,446 | |||||||||
|
| |||||||||||
Principal Amount (000) | ||||||||||||
Time Deposits – 0.0% |
| |||||||||||
SEB, Stockholm | EUR | 40 | 43,455 | |||||||||
|
| |||||||||||
Total Short-Term Investments | 1,852,901 | |||||||||||
|
| |||||||||||
Total Investments – 98.8% | 215,485,399 | |||||||||||
Other assets less liabilities – 1.2% | 2,546,249 | |||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 218,031,648 | ||||||||||
|
|
FUTURES
Description | Number of Contracts | Expiration Month | Current Notional | Value and Unrealized Appreciation (Depreciation) | ||||||||||||||||
Purchased Contracts | ||||||||||||||||||||
U.S. T-Note 2 Yr (CBT) Futures | 13 | September 2023 | $ | 2,639,406 | $ | (42,047 | ) | |||||||||||||
U.S. Ultra Bond (CBT) Futures | 74 | September 2023 | 9,784,188 | (156,414 | ) | |||||||||||||||
Sold Contracts | ||||||||||||||||||||
Euro-BOBL Futures | 6 | September 2023 | 764,526 | 9,500 | ||||||||||||||||
Euro-Bund Futures | 10 | September 2023 | 1,462,335 | 13,744 | ||||||||||||||||
Euro-Schatz Futures | 7 | September 2023 | 808,517 | 5,311 | ||||||||||||||||
U.S. 10 Yr Ultra Futures | 46 | September 2023 | 5,381,281 | 101,805 | ||||||||||||||||
U.S. T-Note 5 Yr (CBT) Futures | 15 | September 2023 | 1,602,305 | 18,633 | ||||||||||||||||
|
| |||||||||||||||||||
$ | (49,468 | ) | ||||||||||||||||||
|
|
FORWARD CURRENCY EXCHANGE CONTRACTS
Counterparty | Contracts to Deliver (000) | In Exchange For (000) | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||||
Barclays Bank PLC | EUR | 3,083 | USD | 3,400 | 10/12/2023 | $ (2,008) |
(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 July 31, 2023, the aggregate market value of these securities amounted to $44,917,287 or 20.6% of net assets. |
(b) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at July 31, 2023. |
(c) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
14
(d) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
(e) | The rate shown represents the 7-day yield as of period end. |
(f) | Affiliated investments. |
(g) | As of July 31, 2023, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $902,236 and gross unrealized depreciation of investments was $(28,649,130), resulting in net unrealized depreciation of $(27,746,894). |
Currency Abbreviations:
EUR – Euro
USD – United States Dollar
Glossary:
BOBL – Bundesobligationen
CBT – Chicago Board of Trade
LIBOR – London Interbank Offered Rate
REIT – Real Estate Investment Trust
SOFR – Secured Overnight Financing Rate
15
COUNTRY BREAKDOWN1 July 31, 2023 (unaudited) |
69.1 | % | United States | ||
7.4 | % | United Kingdom | ||
3.7 | % | France | ||
2.5 | % | Germany | ||
2.4 | % | Italy | ||
2.3 | % | Japan | ||
2.3 | % | Spain | ||
1.9 | % | Netherlands | ||
1.7 | % | Canada | ||
1.2 | % | Ireland | ||
1.1 | % | Portugal | ||
1.0 | % | Brazil | ||
0.4 | % | Supranational | ||
2.1 | % | Other | ||
0.9 | % | Short-Term Investments | ||
|
| |||
100.0 | % | Total Investments | ||
|
|
1 | The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.4% or less in the following: Australia, Belgium, Chile, India, Peru, South Korea, Sweden and Switzerland. |
16
AB Sustainable Thematic Credit Portfolio
July 31, 2023 (unaudited)
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). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
• | Level 1 - quoted prices in active markets for identical investments |
• | Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.
Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.
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.
17
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of July 31, 2023:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Corporates - Investment Grade | $ | -0- | $ | 205,217,483 | $ | -0- | $ | 205,217,483 | ||||||||
Corporates - Non-Investment Grade | -0- | 5,120,637 | -0- | 5,120,637 | ||||||||||||
Emerging Markets - Corporate Bonds | -0- | 2,357,840 | -0- | 2,357,840 | ||||||||||||
Supranationals | -0- | 876,997 | -0- | 876,997 | ||||||||||||
Local Governments - US Municipal Bonds | -0- | 59,541 | -0- | 59,541 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Investment Companies | 1,809,446 | -0- | -0- | 1,809,446 | ||||||||||||
Time Deposits | -0- | 43,455 | -0- | 43,455 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | 1,809,446 | 213,675,953 | -0- | 215,485,399 | ||||||||||||
Other Financial Instruments*: | ||||||||||||||||
Assets | ||||||||||||||||
Futures | 148,993 | -0- | -0- | 148,993 | ||||||||||||
Liabilities | ||||||||||||||||
Futures | (198,461 | ) | -0- | -0- | (198,461 | ) | ||||||||||
Forward Currency Exchange Contracts | -0- | (2,008 | ) | -0- | (2,008 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,759,978 | $ | 213,673,945 | $ | -0- | $ | 215,433,923 | ||||||||
|
|
|
|
|
|
|
|
* | Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation (depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, written options and written swaptions which are valued at market value. |
A summary of the Fund’s transactions in AB mutual funds for the nine months ended July 31, 2023 is as follows:
Fund | Market Value 10/31/22 (000) | Purchases at Cost (000) | Sales (000) | Market Value (000) | Dividend Income (000) | |||||||||||||||
Government Money Market Portfolio | $ | 6,929 | $ | 43,442 | $ | 48,562 | $ | 1,809 | $ | 81 |
18