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: 811-04791
AB MUNICIPAL INCOME FUND, INC.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Joseph J. Mantineo
AllianceBernstein L.P.
1345 Avenue of the Americas
New York, New York 10105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 221-5672
Date of fiscal year end: May 31, 2017
Date of reporting period: November 30, 2016
ITEM 1. REPORTS TO STOCKHOLDERS.
NOV 11.30.16
SEMI-ANNUAL REPORT
AB MUNICIPAL INCOME FUND
| + | | AB CALIFORNIA PORTFOLIO |
| + | | AB HIGH INCOME MUNICIPAL 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 on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.
AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.
January 18, 2017
Semi-Annual Report
This report provides management’s discussion of fund performance for the portfolios of AB Municipal Income Fund (the “Fund”) for the semi-annual reporting period ended November 30, 2016. The Fund has four portfolios: AB California Portfolio, AB High Income Municipal Portfolio, AB National Portfolio and AB New York Portfolio (individually a “Portfolio”, collectively, the “Portfolios”).
Investment Objective and Policies
The investment objective of the California, National and New York Portfolios is to earn the highest level of current income, exempt from federal income tax, and in the case of the California and New York Portfolios, state taxation of the respective state, that is available without assuming what AllianceBernstein L.P. (the “Adviser”) considers to be undue risk to principal or income. Each of the California, National and New York Portfolios invests principally in high-yielding, predominantly investment-grade municipal securities. The investment objective of the High Income Municipal Portfolio is to earn the highest level of current income, exempt from federal income tax, that is available consistent with what the Adviser considers to be an appropriate level of risk. The High Income Municipal Portfolio invests principally in high-yielding municipal securities that may be non-investment-grade or investment-grade.
Each Portfolio invests, under normal circumstances, at least 80%
of its net assets in municipal securities with interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal Alternative Minimum Tax (“AMT”) for certain taxpayers. Each of the Portfolios that invests in a named state pursues its objective by investing at least 80% of its net assets in municipal securities issued by the named state or municipal securities with interest that is otherwise exempt from the named state’s income tax. The National Portfolio may invest 25% or more of its net assets in a single state.
The California, National and New York Portfolios may also invest in forward commitments, tender option bond transactions (“TOBs”), zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities and derivatives, such as options, futures contracts, forwards and swaps.
The AB High Income Municipal Portfolio may invest without limit in lower-rated securities (“junk bonds”), which may include securities having the lowest rating, and in unrated securities that, in the Adviser’s judgment, would be lower-rated securities if rated. The Portfolio may invest in fixed-income securities with any maturity or duration. The Portfolio will seek to increase income for shareholders by investing in longer-maturity bonds. Consistent with its objective of seeking a higher level of income, the Portfolio may experience greater volatility and a higher risk
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| AB MUNICIPAL INCOME FUND • | | | 1 | |
of loss of principal than other municipal funds. The Portfolio may also invest in forward commitments; zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities and certain types of mortgage related securities. The Portfolio may invest in derivatives, such as options, futures contracts, forwards and swaps. The Portfolio may make short sales of securities or maintain a short position, and may use other investment techniques. The Portfolio may use leverage for investment purposes to increase income through the use of TOBs and derivative instruments, such as interest rate swaps.
Investment Results
The tables on pages 9–12 show performance for each Portfolio compared with its benchmark, the Bloomberg Barclays Municipal Bond Index, for the six- and 12-month periods ended November 30, 2016.
California Portfolio – For both periods, Class A and Advisor Class shares outperformed the benchmark, while Class B and C shares underperformed, before sales charges. For the six-month period, security selection in the special tax, local general obligation, transportation and education sectors contributed to relative performance. During the 12-month period, security selection in the special tax, education, local general obligation and health care sectors contributed. Yield-curve positioning negatively impacted returns for both periods.
High Income Municipal Portfolio – All share classes of the Portfolio underperformed the benchmark for the six-month period; Class A and Advisor Class shares outperformed the benchmark for the 12-month period, while Class C shares underperformed, before sales charges. For the six-month period, yield-curve positioning detracted as the Portfolio was overweight longer bonds compared to the benchmark, given its income-oriented focus. Security selection was flat, as a beneficial selection in health care was offset by negative selection in the industrial sector. For the 12-month period, security selection in the health care, housing, special tax and water sectors contributed to performance, while security selection within the industrials sector detracted.
National Portfolio – For both periods, Class A and Advisor Class shares outperformed the benchmark, while Class B and C shares underperformed, before sales charges. For the six-month period, security selection in the special tax, local general obligation, health care and education sectors contributed to relative performance, while security selection in the water sector detracted. During the 12-month period, security selection in the special tax, health care, water and local general obligation sectors contributed.
New York Portfolio – For both periods, Class A and Advisor Class shares outperformed the benchmark,
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| 2 | | • AB MUNICIPAL INCOME FUND |
while Class B and C shares underperformed, before sales charges. During the six-month period, security selection in the education, industrials, health care and transportation sectors contributed to relative performance, while security selection in the special tax sector detracted. For the 12-month period, security selection within the health care, education, industrial, transportation and local general obligation sectors contributed to performance; security selection in the leasing sector detracted.
The California, National and New York Portfolios utilized derivatives in the form of inflation (“CPI”) swaps for hedging purposes, which had no material impact on absolute performance.
The High Income Portfolio utilized interest rate swaps, CPI swaps and purchased options for hedging purposes; credit default swaps were used for investment purposes. CPI swaps and credit default swaps had no material impact on absolute performance for either period; interest rate swaps had no material impact on performance for the six-month period and added for the 12-month period. Purchased options were not utilized during the six-month period, and had no material impact on performance for the 12-month period.
Market Review and Investment Strategy
After generally declining for the first half of the 12-month period, municipal bond yields for matur-
ities beyond five years rose over the latter half. In large part, the increase in yields happened in November as the bond market quickly reflected higher market expectations of inflation following President-elect Trump’s win. Given the large increases in November, longer-maturity bonds rose the most over the six-month period. Prior to November, yields for shorter-maturity bonds had already moved higher to reflect a higher probability of the Federal Reserve raising its target for the Federal Funds rate, and as a change in regulations for money market funds led to a reduced demand for very short-term instruments. As a result, over the course of the entire 12-month period, yields were higher by 0.30% to 0.60%, depending on the maturity. Municipal credit fundamentals remained consistent with continued slow economic growth as tax revenues continued to increase, though in some cases at a slower rate, and default rates remained low across the broad municipal market.
The Portfolios may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most fund insurers, insurance has less value than it did in the past. The market now values
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| AB MUNICIPAL INCOME FUND • | | | 3 | |
insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline.
| | | | | | | | |
| Portfolio | | Insured
Bonds* | | | Pre-refunded/
ETM†/
Insured
Bonds* | |
California | | | 6.32 | % | | | 0.21 | % |
High Income | | | 3.21 | % | | | 0.00 | % |
National | | | 7.73 | % | | | 2.12 | % |
New York | | | 5.91 | % | | | 0.00 | % |
| * | | Breakdowns expressed as a percentage of investments in municipal bonds. |
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| 4 | | • AB MUNICIPAL INCOME FUND |
DISCLOSURES AND RISKS
Benchmark Disclosure
The Bloomberg Barclays Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Portfolios.
A Word About Risk
Market Risk: The value of the Portfolios’ assets will fluctuate as the bond market fluctuates. The value of the Portfolios’ investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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.
Below Investment Grade Securities Risk (High Income Municipal Portfolio): Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative performance of the junk bond market generally and less secondary market liquidity.
Leverage Risk (High Income Municipal Portfolio): To the extent the Portfolio uses leveraging techniques, such as TOBs, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Portfolio’s investments.
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 Portfolios’ investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal secu-
(Disclosures, Risks and Note about Historical Performance continued on next page)
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| AB MUNICIPAL INCOME FUND • | | | 5 | |
Disclosures and Risks
DISCLOSURES AND RISKS
(continued from previous page)
rities, or the rights of investors in these securities. To the extent that the Portfolios invest more of their assets in a particular state’s municipal securities, the Portfolios may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Portfolios’ 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.
The Portfolios may invest in the municipal securities of Puerto Rico and other US territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other US issuers of municipal securities. Like many US states and municipalities, Puerto Rico experienced a significant downturn during the recent recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. Municipal securities issued by Puerto Rico issuers have extremely low credit ratings and are on “negative watch” by credit rating organizations. Some Puerto Rico issuers are in default on principal and interest payments. The Government Development Bank, which provides liquidity to Puerto Rico’s government agencies, recently defaulted on a $400 million debt payment. This default casts doubts on the ability of Puerto Rico and its government agencies to make future payments. If this and the general economic situation in Puerto Rico persist or worsen, the volatility and credit quality of Puerto Rican municipal securities could be adversely affected, and the market for such securities may experience continued volatility. In addition, Puerto Rico’s difficulties have resulted in increased volatility in portions of the broader municipal securities market from time to time, and this may recur in the future.
Tax Risk: There is no guarantee that all of the Portfolios’ income will remain exempt from federal or state income taxes. From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Portfolios by increasing taxes on that income. In such event, the Portfolios’ NAV could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions
(Disclosures, Risks and Note about Historical Performance continued on next page)
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| 6 | | • AB MUNICIPAL INCOME FUND |
Disclosures and Risks
DISCLOSURES AND RISKS
(continued from previous page)
of the Portfolios’ shares as investors anticipate adverse effects on the Portfolios or seek higher yields to offset the potential loss of the tax deduction. As a result, the Portfolios would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Portfolios’ yield.
Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. The Portfolios may be subject to a heightened risk of rising rates as the current period of historically low interest rates may be ending. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.
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 Portfolios’ assets can decline as can the value of the Portfolios’ distributions. This risk is significantly greater for fixed-income securities with longer maturities.
Liquidity Risk: Liquidity risk occurs when certain investments become difficult to purchase or sell. Difficulty in selling less liquid securities may result in sales at disadvantageous prices affecting the value of your investment in the Portfolios. Causes of liquidity risk may include low trading volumes, large positions and heavy redemptions of Portfolio shares. Over recent years liquidity risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Liquidity risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline. Municipal securities may have more liquidity risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.
(Disclosures, Risks and Note about Historical Performance continued on next page)
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| AB MUNICIPAL INCOME FUND • | | | 7 | |
Disclosures and Risks
DISCLOSURES AND RISKS
(continued from previous page)
Derivatives Risk: Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Portfolios, and may be subject to counterparty risk to a greater degree than more traditional investments.
Management Risk: The Portfolios are subject to management risk because they are actively managed investment funds. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.
These risks are fully discussed in the Portfolios’ prospectus. As with all investments, you may lose money by investing in the Portfolios.
An Important Note About Historical Performance
The investment return and principal value of an investment in the Portfolios will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown on the following pages represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.
All fees and expenses related to the operation of the Portfolios have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Portfolios’ quoted performance would be lower. SEC returns and the Portfolios’ returns shown in the line graphs reflect the applicable sales charges for each share class: a 3% maximum front-end sales charge for Class A shares; the applicable contingent deferred sales charge for Class B shares (3% year 1, 2% year 2, 1% year 3, 0% year 4); a 1% 1-year contingent deferred sales charge for Class C shares. Prior to October 1, 2009, the maximum front-end sales charge for Class A shares of the Portfolios was 4.25%. If the Class A annualized returns for the Portfolios and the National, California and New York Portfolio returns shown in the line graphs reflected the deduction of the former maximum front-end sales charge, their returns would be lower. Returns for the different share classes will vary due to their different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.
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| 8 | | • AB MUNICIPAL INCOME FUND |
Disclosures and Risks
AB CALIFORNIA PORTFOLIO
HISTORICAL PERFORMANCE
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THE PORTFOLIO VS. ITS BENCHMARK PERIODS ENDED NOVEMBER 30, 2016 (unaudited) | | NAV Returns | | | | |
| | 6 Months | | | 12 Months | | | | |
| AB California Portfolio | | | | | | | | | | | | |
Class A | | | -3.41% | | | | -0.17% | | | | | |
| |
Class B* | | | -3.77% | | | | -0.92% | | | | | |
| |
Class C | | | -3.77% | | | | -0.91% | | | | | |
| |
Advisor Class† | | | -3.29% | | | | 0.08% | | | | | |
| |
| Bloomberg Barclays Municipal Bond Index | | | -3.52% | | | | -0.22% | | | | | |
| |
* Effective January 31, 2009, Class B shares are no longer available for purchase to new investors. Please see Note A for more information. † Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. | |
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See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
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| AB MUNICIPAL INCOME FUND • | | | 9 | |
Historical Performance
AB HIGH INCOME MUNICIPAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
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THE PORTFOLIO VS. ITS BENCHMARK PERIODS ENDED NOVEMBER 30, 2016 (unaudited) | | NAV Returns | | | | |
| | 6 Months | | | 12 Months | | | | |
| AB High Income Municipal Portfolio | | | | | | | | | | | | |
Class A | | | -4.89% | | | | 0.38% | | | | | |
| |
Class C | | | -5.17% | | | | -0.28% | | | | | |
| |
Advisor Class* | | | -4.69% | | | | 0.73% | | | | | |
| |
| Bloomberg Barclays Municipal Bond Index | | | -3.52% | | | | -0.22% | | | | | |
| |
* Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. | |
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See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
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Historical Performance
AB NATIONAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
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THE PORTFOLIO VS. ITS BENCHMARK PERIODS ENDED NOVEMBER 30, 2016 (unaudited) | | NAV Returns | | | | |
| | 6 Months | | | 12 Months | | | | |
| AB National Portfolio | | | | | | | | | | | | |
Class A | | | -3.47% | | | | 0.34% | | | | | |
| |
Class B* | | | -3.97% | | | | -0.45% | | | | | |
| |
Class C | | | -3.83% | | | | -0.41% | | | | | |
| |
Advisor Class† | | | -3.35% | | | | 0.59% | | | | | |
| |
| Bloomberg Barclays Municipal Bond Index | | | -3.52% | | | | -0.22% | | | | | |
| |
* Effective January 31, 2009, Class B shares are no longer available for purchase to new investors. Please see Note A for more information. † Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. | |
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See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
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| AB MUNICIPAL INCOME FUND • | | | 11 | |
Historical Performance
AB NEW YORK PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
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THE PORTFOLIO VS. ITS BENCHMARK PERIODS ENDED NOVEMBER 30, 2016 (unaudited) | | NAV Returns | | | | |
| | 6 Months | | | 12 Months | | | | |
| AB New York Portfolio | | | | | | | | | | | | |
Class A | | | -3.48% | | | | 0.20% | | | | | |
| |
Class B* | | | -3.84% | | | | -0.55% | | | | | |
| |
Class C | | | -3.94% | | | | -0.65% | | | | | |
| |
Advisor Class† | | | -3.36% | | | | 0.45% | | | | | |
| |
| Bloomberg Barclays Municipal Bond Index | | | -3.52% | | | | -0.22% | | | | | |
| |
* Effective January 31, 2009, Class B shares are no longer available for purchase to new investors. Please see Note A for more information. † Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. | |
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See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
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Historical Performance
AB CALIFORNIA PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
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| AVERAGE ANNUAL RETURNS AS OF NOVEMBER 30, 2016 (unaudited) | |
| | | NAV Returns | | | SEC Returns
(reflects applicable
sales charges) | | | SEC Yields* | | | Taxable
Equivalent
Yields† | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | 1.52 | % | | | 2.70 | % |
1 Year | | | -0.17 | % | | | -3.16 | % | | | | | | | | |
5 Years | | | 3.73 | % | | | 3.09 | % | | | | | | | | |
10 Years | | | 3.81 | % | | | 3.50 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | 0.74 | % | | | 1.31 | % |
1 Year | | | -0.92 | % | | | -3.82 | % | | | | | | | | |
5 Years | | | 2.99 | % | | | 2.99 | % | | | | | | | | |
10 Years(a) | | | 3.39 | % | | | 3.39 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | 0.80 | % | | | 1.42 | % |
1 Year | | | -0.91 | % | | | -1.88 | % | | | | | | | | |
5 Years | | | 2.99 | % | | | 2.99 | % | | | | | | | | |
10 Years | | | 3.08 | % | | | 3.08 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | 1.82 | % | | | 3.23 | % |
1 Year | | | 0.08 | % | | | 0.08 | % | | | | | | | | |
5 Years | | | 4.02 | % | | | 4.02 | % | | | | | | | | |
Since Inception^ | | | 4.74 | % | | | 4.74 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
SEC AVERAGE ANNUAL RETURNS AS OF THE MOST RECENT CALENDAR QUARTER-END DECEMBER 31, 2016 (unaudited) | |
| | | | | | | | | | | | SEC Returns
(reflects applicable
sales charges) | |
| Class A Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -3.39 | % |
5 Years | | | | | | | | | | | | | | | 2.81 | % |
10 Years | | | | | | | | | | | | | | | 3.60 | % |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -4.06 | % |
5 Years | | | | | | | | | | | | | | | 2.69 | % |
10 Years(a) | | | | | | | | | | | | | | | 3.48 | % |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -2.22 | % |
5 Years | | | | | | | | | | | | | | | 2.68 | % |
10 Years | | | | | | | | | | | | | | | 3.18 | % |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -0.17 | % |
5 Years | | | | | | | | | | | | | | | 3.72 | % |
Since Inception^ | | | | | | | | | | | | | | | 4.77 | % |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance and footnotes continued on next page)
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 13 | |
Historical Performance
AB CALIFORNIA PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
The Portfolio’s current prospectus fee table shows the Portfolio’s total annual operating expense ratios as 0.80%, 1.56%, 1.56% and 0.55% for Class A, Class B, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements will limit the Portfolio’s annual operating expenses, exclusive of any interest expense, to 0.75%, 1.50%, 1.50% and 0.50% for Class A, Class B, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to September 30, 2017 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.
| * | | SEC yields are calculated based on SEC guidelines for the 30-day period ended November 30, 2016. |
| † | | Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable. |
| (a) | | Assumes conversion of Class B shares into Class A shares after six years. |
| ‡ | | This share class is offered at NAV to eligible investors and its SEC returns are the same as its NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. |
| ^ | | Inception date: 8/6/2008. |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
| | |
| 14 | | • AB MUNICIPAL INCOME FUND |
Historical Performance
AB HIGH INCOME MUNICIPAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL RETURNS AS OF NOVEMBER 30, 2016 (unaudited) | |
| | | NAV Returns | | | SEC Returns
(reflects applicable
sales charges) | | | SEC Yields* | | | Taxable
Equivalent
Yields† | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | 3.36 | % | | | 5.17 | % |
1 Year | | | 0.38 | % | | | -2.63 | % | | | | | | | | |
5 Years | | | 6.08 | % | | | 5.43 | % | | | | | | | | |
Since Inception^ | | | 6.37 | % | | | 5.89 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | 2.69 | % | | | 4.14 | % |
1 Year | | | -0.28 | % | | | -1.25 | % | | | | | | | | |
5 Years | | | 5.35 | % | | | 5.35 | % | | | | | | | | |
Since Inception^ | | | 5.62 | % | | | 5.62 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | 3.72 | % | | | 5.72 | % |
1 Year | | | 0.73 | % | | | 0.73 | % | | | | | | | | |
5 Years | | | 6.40 | % | | | 6.40 | % | | | | | | | | |
Since Inception^ | | | 6.67 | % | | | 6.67 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
SEC AVERAGE ANNUAL RETURNS AS OF THE MOST RECENT CALENDAR QUARTER-END DECEMBER 31, 2016 (unaudited) | |
| | | | | | | | | | | | SEC Returns
(reflects applicable
sales charges) | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -3.13 | % |
5 Years | | | | | | | | | | | | | | | 5.12 | % |
Since Inception^ | | | | | | | | | | | | | | | 5.90 | % |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -1.77 | % |
5 Years | | | | | | | | | | | | | | | 5.02 | % |
Since Inception^ | | | | | | | | | | | | | | | 5.62 | % |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | 0.19 | % |
5 Years | | | | | | | | | | | | | | | 6.07 | % |
Since Inception^ | | | | | | | | | | | | | | | 6.68 | % |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance and footnotes continued on next page)
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 15 | |
Historical Performance
AB HIGH INCOME MUNICIPAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
The Portfolio’s current prospectus fee table shows the Portfolio’s total annual operating expense ratios as 0.88%, 1.63% and 0.63% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements will limit the Portfolio’s annual operating expenses, exclusive of any interest expense to 0.80%, 1.55% and 0.55% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to September 30, 2017 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.
| * | | SEC yields are calculated based on SEC guidelines for the 30-day period ended November 30, 2016. |
| † | | Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable. |
| ‡ | | This share class is offered at NAV to eligible investors and its SEC returns are the same as its NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. |
| ^ | | Inception date: 1/26/2010. |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
| | |
| 16 | | • AB MUNICIPAL INCOME FUND |
Historical Performance
AB NATIONAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL RETURNS AS OF NOVEMBER 30, 2016 (unaudited) | |
| | | NAV Returns | | | SEC Returns
(reflects applicable
sales charges) | | | SEC Yields* | | | Taxable
Equivalent Yields† | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | 1.88 | % | | | 2.89 | % |
1 Year | | | 0.34 | % | | | -2.69 | % | | | | | | | | |
5 Years | | | 3.55 | % | | | 2.92 | % | | | | | | | | |
10 Years | | | 3.72 | % | | | 3.40 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | 1.19 | % | | | 1.83 | % |
1 Year | | | -0.45 | % | | | -3.37 | % | | | | | | | | |
5 Years | | | 2.83 | % | | | 2.83 | % | | | | | | | | |
10 Years(a) | | | 3.30 | % | | | 3.30 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | 1.18 | % | | | 1.82 | % |
1 Year | | | -0.41 | % | | | -1.38 | % | | | | | | | | |
5 Years | | | 2.81 | % | | | 2.81 | % | | | | | | | | |
10 Years | | | 2.99 | % | | | 2.99 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | 2.20 | % | | | 3.38 | % |
1 Year | | | 0.59 | % | | | 0.59 | % | | | | | | | | |
5 Years | | | 3.84 | % | | | 3.84 | % | | | | | | | | |
Since Inception^ | | | 4.64 | % | | | 4.64 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
SEC AVERAGE ANNUAL RETURNS AS OF THE MOST RECENT CALENDAR QUARTER-END DECEMBER 31, 2016 (unaudited) | |
| | | | | | | | | | | | SEC Returns (reflects applicable
sales charges) | |
| Class A Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -2.67 | % |
5 Years | | | | | | | | | | | | | | | 2.72 | % |
10 Years | | | | | | | | | | | | | | | 3.52 | % |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -3.37 | % |
5 Years | | | | | | | | | | | | | | | 2.62 | % |
10 Years(a) | | | | | | | | | | | | | | | 3.41 | % |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -1.38 | % |
5 Years | | | | | | | | | | | | | | | 2.61 | % |
10 Years | | | | | | | | | | | | | | | 3.11 | % |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | 0.59 | % |
5 Years | | | | | | | | | | | | | | | 3.63 | % |
Since Inception^ | | | | | | | | | | | | | | | 4.71 | % |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance and footnotes continued on next page)
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 17 | |
Historical Performance
AB NATIONAL PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
The Portfolio’s current prospectus fee table shows the Portfolio’s total annual operating expense ratios as 0.80%, 1.58%, 1.56% and 0.55% for Class A, Class B, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements will limit the Portfolio’s annual operating expenses to 0.75%, 1.50%, 1.50% and 0.50% for Class A, Class B, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to September 30, 2017 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.
| * | | SEC yields are calculated based on SEC guidelines for the 30-day period ended November 30, 2016. |
| † | | Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable. |
| (a) | | Assumes conversion of Class B shares into Class A shares after six years. |
| ‡ | | This share class is offered at NAV to eligible investors and its SEC returns are the same as its NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. |
| ^ | | Inception date: 8/6/2008. |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance continued on next page)
| | |
| 18 | | • AB MUNICIPAL INCOME FUND |
Historical Performance
AB NEW YORK PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL RETURNS AS OF NOVEMBER 30, 2016 (unaudited) | |
| | | NAV Returns | | | SEC Returns (reflects applicable
sales charges) | | | SEC Yields* | | | Taxable
Equivalent Yields† | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | 1.67 | % | | | 2.82 | % |
1 Year | | | 0.20 | % | | | -2.82 | % | | | | | | | | |
5 Years | | | 2.75 | % | | | 2.12 | % | | | | | | | | |
10 Years | | | 3.37 | % | | | 3.06 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | 0.96 | % | | | 1.62 | % |
1 Year | | | -0.55 | % | | | -3.47 | % | | | | | | | | |
5 Years | | | 2.02 | % | | | 2.02 | % | | | | | | | | |
10 Years(a) | | | 2.96 | % | | | 2.96 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | 0.96 | % | | | 1.62 | % |
1 Year | | | -0.65 | % | | | -1.62 | % | | | | | | | | |
5 Years | | | 2.00 | % | | | 2.00 | % | | | | | | | | |
10 Years | | | 2.65 | % | | | 2.65 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | 1.98 | % | | | 3.34 | % |
1 Year | | | 0.45 | % | | | 0.45 | % | | | | | | | | |
5 Years | | | 3.02 | % | | | 3.02 | % | | | | | | | | |
Since Inception^ | | | 4.05 | % | | | 4.05 | % | | | | | | | | |
| | | | | | | | | | | | | | | | |
SEC AVERAGE ANNUAL RETURNS AS OF THE MOST RECENT CALENDAR QUARTER-END DECEMBER 31, 2016 (unaudited) | |
| | | | | | | | | | | | SEC Returns
(reflects applicable
sales charges) | |
| | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -2.89 | % |
5 Years | | | | | | | | | | | | | | | 1.94 | % |
10 Years | | | | | | | | | | | | | | | 3.18 | % |
| | | | | | | | | | | | | | | | |
| Class B Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -3.56 | % |
5 Years | | | | | | | | | | | | | | | 1.83 | % |
10 Years(a) | | | | | | | | | | | | | | | 3.08 | % |
| | | | | | | | | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | -1.61 | % |
5 Years | | | | | | | | | | | | | | | 1.84 | % |
10 Years | | | | | | | | | | | | | | | 2.78 | % |
| | | | | | | | | | | | | | | | |
| Advisor Class Shares‡ | | | | | | | | | | | | | | | | |
1 Year | | | | | | | | | | | | | | | 0.36 | % |
5 Years | | | | | | | | | | | | | | | 2.86 | % |
Since Inception^ | | | | | | | | | | | | | | | 4.12 | % |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
(Historical Performance and footnotes continued on next page)
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 19 | |
Historical Performance
AB NEW YORK PORTFOLIO
HISTORICAL PERFORMANCE
(continued from previous page)
The Portfolio’s current prospectus fee table shows the Portfolio’s total annual operating expense ratios as 0.83%, 1.61%, 1.58% and 0.58% for Class A, Class B, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements will limit the Portfolio’s annual operating expenses, excluding any interest expense, to 0.75%, 1.50%, 1.50% and 0.50% for Class A, Class B, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to September 30, 2017 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.
| * | | SEC yields are calculated based on SEC guidelines for the 30-day period ended November 30, 2016. |
| † | | Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable. |
| (a) | | Assumes conversion of Class B shares into Class A shares after six years. |
| ‡ | | This share class is offered at NAV to eligible investors and its SEC returns are the same as its NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Portfolios. |
| ^ | | Inception date: 8/6/2008. |
See Disclosures, Risks and Note about Historical Performance on pages 5-8.
| | |
| 20 | | • AB MUNICIPAL INCOME FUND |
Historical Performance
EXPENSE EXAMPLE
(unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 21 | |
Expense Example
EXPENSE EXAMPLE
(unaudited)
(continued from previous page)
AB California Portfolio
| | | | | | | | | | | | | | | | |
| | | Beginning
Account Value
June 1, 2016 | | | Ending
Account Value
November 30, 2016 | | | Expenses
Paid During
Period* | | | Annualized
Expense
Ratio* | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 965.90 | | | $ | 3.75 | | | | 0.76 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.26 | | | $ | 3.85 | | | | 0.76 | % |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 962.30 | | | $ | 7.43 | | | | 1.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.50 | | | $ | 7.64 | | | | 1.51 | % |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 962.30 | | | $ | 7.43 | | | | 1.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.50 | | | $ | 7.64 | | | | 1.51 | % |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 967.10 | | | $ | 2.51 | | | | 0.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,022.51 | | | $ | 2.59 | | | | 0.51 | % |
AB High Income Municipal Portfolio
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Account
Value
June 1,
2016 | | | Ending
Account
Value
November 30,
2016 | | | Expenses
Paid
During
Period* | | | Annualized
Expense
Ratio* | | | Effective
Expenses
Paid
During
Period+ | | | Effective
Annualized
Expense
Ratio+ | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 951.10 | | | $ | 4.50 | | | | 0.92 | % | | $ | 4.55 | | | | 0.93 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,020.46 | | | $ | 4.66 | | | | 0.92 | % | | $ | 4.71 | | | | 0.93 | % |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 948.30 | | | $ | 8.16 | | | | 1.67 | % | | $ | 8.21 | | | | 1.68 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,016.70 | | | $ | 8.44 | | | | 1.67 | % | | $ | 8.49 | | | | 1.68 | % |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 953.10 | | | $ | 3.28 | | | | 0.67 | % | | $ | 3.33 | | | | 0.68 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.71 | | | $ | 3.40 | | | | 0.67 | % | | $ | 3.45 | | | | 0.68 | % |
AB National Portfolio
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
Account
Value
June 1,
2016 | | | Ending
Account
Value
November 30,
2016 | | | Expenses
Paid
During
Period* | | | Annualized
Expense
Ratio* | | | Effective
Expenses
Paid
During
Period+ | | | Effective
Annualized
Expense
Ratio+ | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 965.30 | | | $ | 3.70 | | | | 0.75 | % | | $ | 3.74 | | | | 0.76 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.31 | | | $ | 3.80 | | | | 0.75 | % | | $ | 3.85 | | | | 0.76 | % |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 960.30 | | | $ | 7.37 | | | | 1.50 | % | | $ | 7.42 | | | | 1.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.55 | | | $ | 7.59 | | | | 1.50 | % | | $ | 7.64 | | | | 1.51 | % |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 961.70 | | | $ | 7.38 | | | | 1.50 | % | | $ | 7.43 | | | | 1.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.55 | | | $ | 7.59 | | | | 1.50 | % | | $ | 7.64 | | | | 1.51 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 966.50 | | | $ | 2.46 | | | | 0.50 | % | | $ | 2.51 | | | | 0.51 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,022.56 | | | $ | 2.54 | | | | 0.50 | % | | $ | 2.59 | | | | 0.51 | % |
| | |
| 22 | | • AB MUNICIPAL INCOME FUND |
Expense Example
EXPENSE EXAMPLE
(unaudited)
(continued from previous page)
AB New York Portfolio
| | | | | | | | | | | | | | | | |
| | | Beginning
Account Value
June 1, 2016 | | | Ending
Account Value
November 30, 2016 | | | Expenses
Paid During
Period* | | | Annualized
Expense
Ratio* | |
| Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 965.20 | | | $ | 3.69 | | | | 0.75 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.31 | | | $ | 3.80 | | | | 0.75 | % |
| Class B | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 961.60 | | | $ | 7.38 | | | | 1.50 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.55 | | | $ | 7.59 | | | | 1.50 | % |
| Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 960.60 | | | $ | 7.37 | | | | 1.50 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,017.55 | | | $ | 7.59 | | | | 1.50 | % |
| Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 966.40 | | | $ | 2.46 | | | | 0.50 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,022.56 | | | $ | 2.54 | | | | 0.50 | % |
| * | | Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one half-year period). |
| ** | | Assumes 5% annual return before expenses. |
| + | | The Portfolio’s investments in affiliated/unaffiliated underlying portfolios incur no direct expenses, but bear proportionate shares of the acquired fund fees (i.e., operating, administrative and investment advisory fee) of the affiliated/unaffiliated underlying portfolios. Currently the Adviser has voluntarily agreed to waive its investment advisory fee from the Portfolio in an amount equal to the Portfolio’s share of the advisory fees of the affiliated underlying portfolios, as borne indirectly by the Portfolio as an acquired fund fee and expense. The Portfolio’s effective expenses are equal to the classes’ annualized expense ratio plus the Portfolio’s pro-rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 23 | |
Expense Example
PORTFOLIO SUMMARY
November 30, 2016 (unaudited)
QUALITY RATING BREAKDOWN*
Highest of S&P, Moody’s and Fitch
| * | | All data are as of November 30, 2016. The Portfolio’s quality rating breakdown is expressed as a percentage of the Portfolio’s total investments in municipal securities and may vary over time. The Portfolio also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). The quality ratings are determined by using the Standard & Poor’s Ratings Services (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Portfolio considers the credit ratings issued by S&P, Moody’s, and Fitch and uses the highest rating issued by the agencies, including when there is a split rating. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the Pre-refunded category includes bonds which are secured by U.S. government securities and therefore are deemed high-quality investment grade by the Adviser. If applicable, not applicable (N/A) includes non-creditworthy investments; such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment. |
| | |
| 24 | | • AB MUNICIPAL INCOME FUND |
Portfolio Summary
PORTFOLIO SUMMARY
November 30, 2016 (unaudited)
QUALITY RATING BREAKDOWN*
Highest of S&P, Moody’s and Fitch
| * | | All data are as of November 30, 2016. The Portfolio’s quality rating breakdown is expressed as a percentage of the Portfolio’s total investments in municipal securities and may vary over time. The Portfolio also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). The quality ratings are determined by using the S&P, Moody’s and Fitch ratings services. The Portfolio considers the credit ratings issued by S&P, Moody’s, and Fitch and uses the highest rating issued by the agencies, including when there is a split rating. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. government securities and therefore are deemed high-quality investment grade by the Adviser. If applicable, not applicable (N/A) includes non-creditworthy investments; such as, equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment. |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 25 | |
Portfolio Summary
AB CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 2016 (unaudited)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
MUNICIPAL OBLIGATIONS – 101.2% | | | | | | | | |
Long-Term Municipal Bonds – 101.2% | | | | | | | | |
California – 98.9% | | | | | | | | |
Alameda Corridor Transportation Authority
Series 2016B
5.00%, 10/01/35-10/01/36 | | $ | 11,350 | | | $ | 12,132,011 | |
Anaheim Housing & Public Improvements Authority
(Anaheim Electric Utility Fund)
Series 2016A
5.00%, 10/01/34-10/01/36 | | | 10,930 | | | | 11,968,422 | |
Antelope Valley-East Kern Water Agency
Series 2016
5.00%, 6/01/33-6/01/35 | | | 3,300 | | | | 3,711,449 | |
Bay Area Toll Authority
Series 2009F-1
5.25%, 4/01/27 (Pre-refunded/ETM) | | | 7,500 | | | | 8,142,975 | |
Series 2010S-2
5.00%, 10/01/30 | | | 2,350 | | | | 2,595,340 | |
Series 2013S
5.00%, 4/01/31-4/01/33 | | | 12,700 | | | | 14,201,806 | |
Beaumont Financing Authority
AMBAC Series 2007C
5.00%, 9/01/26 | | | 3,305 | | | | 3,362,011 | |
California Econ Recovery
Series 2009A
5.25%, 7/01/21 (Pre-refunded/ETM) | | | 5,725 | | | | 6,276,833 | |
California Educational Facilities Authority
(Chapman University)
Series 2015
5.00%, 4/01/35 | | | 4,415 | | | | 4,875,926 | |
California Educational Facilities Authority
(University of the Pacific)
Series 2012A
5.00%, 11/01/30 | | | 1,250 | | | | 1,407,550 | |
Series 2015
5.00%, 11/01/31 | | | 2,000 | | | | 2,270,360 | |
California Health Facilities Financing Authority
(Cedars-Sinai Medical Center)
Series 2015
5.00%, 11/15/30 | | | 2,000 | | | | 2,259,800 | |
California Health Facilities Financing Authority
(Dignity Health Obligated Group)
Series 2008G
5.50%, 7/01/25 | | | 3,180 | | | | 3,364,599 | |
| | |
| 26 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California Health Facilities Financing Authority
(St Joseph Health System Obligated Group)
Series 2013A
5.00%, 7/01/33 | | $ | 5,000 | | | $ | 5,526,400 | |
California Infrastructure & Economic Development Bank
(Academy of Motion Picture Arts and Sciences Obligated Group)
Series 2015
5.00%, 11/01/33-11/01/34 | | | 4,035 | | | | 4,611,623 | |
California Infrastructure & Economic Development Bank
(Salvation Army Western Territory (The))
Series 2016
4.00%, 9/01/34 | | | 1,000 | | | | 1,016,110 | |
5.00%, 9/01/32 | | | 1,000 | | | | 1,118,460 | |
California Municipal Finance Authority
(American Heritage Education Foundation/CA)
Series 2016A
5.00%, 6/01/36 | | | 1,000 | | | | 1,068,530 | |
California Municipal Finance Authority
(Azusa Pacific University)
Series 2015B
5.00%, 4/01/35-4/01/41 | | | 5,960 | | | | 6,302,405 | |
California Municipal Finance Authority
(Goodwill Industries of Sacramento Valley & Northern Nevada, Inc.)
Series 2014
5.25%, 1/01/45 | | | 1,295 | | | | 1,206,966 | |
California Municipal Finance Authority
(UTS Bioenergy LLC)
Series 2011A-1
7.50%, 12/01/32(a) | | | 2,745 | | | | 1,977,169 | |
California Pollution Control Financing Authority
(Poseidon Resources Channelside LP)
Series 2012
5.00%, 7/01/37(b) | | | 11,550 | | | | 11,556,699 | |
California School Finance Authority
(ACE Charter Schools Obligated Group)
Series 2016A
5.00%, 6/01/42(b) | | | 2,750 | | | | 2,472,470 | |
California School Finance Authority
(Alliance College-Ready Public Schools Facilities Corp.)
Series 2015A
5.00%, 7/01/45(b) | | | 8,000 | | | | 8,415,280 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 27 | |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California School Finance Authority
(Downtown College Prep Obligated Group)
Series 2016
5.00%, 6/01/46-6/01/51(b) | | $ | 4,325 | | | $ | 4,043,406 | |
California School Finance Authority
(Green DOT Public Schools Obligated Group)
Series 2015A
5.00%, 8/01/45(b) | | | 1,000 | | | | 1,019,650 | |
California School Finance Authority
(Kipp LA)
Series 2014A
5.00%, 7/01/34 | | | 600 | | | | 644,526 | |
California School Finance Authority
(Launchpad Development Obligated Group)
Series 2016A
5.00%, 6/01/36-6/01/46(b) | | | 3,500 | | | | 3,458,625 | |
California School Finance Authority
(View Park Elementary & Middle Schools)
Series 2014A
5.625%, 10/01/34 | | | 575 | | | | 601,772 | |
5.875%, 10/01/44 | | | 1,000 | | | | 1,051,370 | |
6.00%, 10/01/49 | | | 715 | | | | 755,076 | |
California State Public Works Board
(California State Public Works Board Lease)
Series 2012A
5.00%, 4/01/37 | | | 5,000 | | | | 5,421,700 | |
California State University
Series 2016A
4.00%, 11/01/34 | | | 1,000 | | | | 1,011,710 | |
California Statewide Communities Development Authority
(American Baptist Homes of the West)
Series 2015
5.00%, 10/01/26-10/01/45 | | | 5,645 | | | | 5,961,513 | |
California Statewide Communities Development Authority
(Buck Institute for Research on Aging)
AGM Series 2014
5.00%, 11/15/34-11/15/44 | | | 4,500 | | | | 4,977,905 | |
California Statewide Communities Development Authority
(Highland Creek Associates LP/CA)
Series 2001K
5.40%, 4/01/34 | | | 5,010 | | | | 5,025,331 | |
| | |
| 28 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California Statewide Communities Development Authority
(Loma Linda University Medical Center)
Series 2016A
5.00%, 12/01/36(b) | | $ | 5,000 | | | $ | 5,026,250 | |
California Statewide Communities Development Authority
(Moldaw Residences)
Series 2014A
5.25%, 11/01/44 | | | 1,800 | | | | 1,887,678 | |
5.375%, 11/01/49 | | | 2,500 | | | | 2,650,875 | |
Capistrano Unified School District School Facilities Improvement District No 1
AGM Series 2001B
Zero Coupon, 8/01/25 | | | 8,000 | | | | 5,971,520 | |
City of Encinitas CA
(City of Encinitas CA CFD No 1)
Series 2012
5.00%, 9/01/26-9/01/29 | | | 2,795 | | | | 3,097,147 | |
City of Irvine CA
(City of Irvine CA Assessment Dist No 13-1)
Series 2013
5.00%, 9/02/27-9/02/29 | | | 1,760 | | | | 1,953,670 | |
City of Long Beach CA
(City of Long Beach CA Marina Revenue)
Series 2015
5.00%, 5/15/32-5/15/45 | | | 5,600 | | | | 5,978,614 | |
City of Los Angeles CA Wastewater System Revenue
Series 2013B
5.00%, 6/01/31 | | | 5,000 | | | | 5,620,150 | |
City of Los Angeles Department of Airports
(Los Angeles Intl Airport)
Series 2009A
5.25%, 5/15/29 | | | 8,340 | | | | 9,064,746 | |
Series 2010A
5.00%, 5/15/25-5/15/27 | | | 12,475 | | | | 13,825,695 | |
City of Palm Springs CA COP
Series 1991B
Zero Coupon, 4/15/21 (Pre-refunded/ETM) | | | 37,500 | | | | 34,249,500 | |
City of Palo Alto CA
(City of Palo Alto CA University Avenue AD)
Series 2012
5.00%, 9/02/25-9/02/30 | | | 3,290 | | | | 3,575,808 | |
City of Redding CA
NATL Series 1992
11.352%, 7/01/22 (Pre-refunded/ETM)(c) | | | 775 | | | | 974,214 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 29 | |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
City of Riverside CA Sewer Revenue
Series 2015A
5.00%, 8/01/33 | | $ | 10,090 | | | $ | 11,275,272 | |
City of Roseville CA
(HP Campus Oaks Community Facilities District No 1)
Series 2016
5.00%, 9/01/36 | | | 755 | | | | 741,010 | |
City of San Francisco CA Public Utilities Commission Water Revenue
Series 2009B
5.00%, 11/01/27 (Pre-refunded/ETM) | | | 4,705 | | | | 5,177,053 | |
City of San Jose CA Hotel Tax Revenue
Series 2011
6.125%, 5/01/31 | | | 5,000 | | | | 5,762,800 | |
City of Santa Clara CA Electric Revenue
Series 2011A
5.00%, 7/01/30 | | | 1,810 | | | | 2,010,946 | |
County of Orange CA COP
AMBAC Series 1991
6.00%, 6/01/21 (Pre-refunded/ETM) | | | 480 | | | | 518,400 | |
County of Sacramento CA
(North Vineyard District 2005-2)
Series 2016
5.00%, 9/01/40-9/01/45 | | | 2,265 | | | | 2,392,057 | |
County of San Bernardino CA COP
Series 2009A
5.25%, 8/01/26 | | | 1,635 | | | | 1,760,257 | |
El Dorado Irrigation District / El Dorado County Water Agency
Series 2016C
5.00%, 3/01/31-3/01/35 | | | 9,500 | | | | 10,700,942 | |
Fremont Community Facilities District No 1
Series 2015
5.00%, 9/01/40 | | | 4,000 | | | | 4,181,160 | |
Garden Grove Unified School District
Series 2013C
5.00%, 8/01/32 | | | 2,535 | | | | 2,906,200 | |
Imperial Irrigation District Electric System Revenue
Series 2016C
5.00%, 11/01/31-11/01/36 | | | 5,000 | | | | 5,674,075 | |
Lake Elsinore Public Financing Authority
Series 2015
5.00%, 9/01/31-9/01/35 | | | 4,925 | | | | 5,230,752 | |
| | |
| 30 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Long Beach Bond Finance Authority
(Aquarium of the Pacific)
Series 2012
5.00%, 11/01/28-11/01/30 | | $ | 11,485 | | | $ | 12,862,464 | |
Los Angeles County Metropolitan Transportation Authority
(Los Angeles County Metropolitan Transportation Authority Sales Tax)
Series 2016A
5.00%, 6/01/31-6/01/32 | | | 6,000 | | | | 6,935,855 | |
Los Angeles County Sanitation Districts Financing Authority
Series 2015A
5.00%, 10/01/34 | | | 5,000 | | | | 5,564,800 | |
Los Angeles Unified School District/CA
Series 2010KRY
5.25%, 7/01/25(d) | | | 8,000 | | | | 8,992,000 | |
Los Angeles Unified School District/CA COP
Series 2012B
5.00%, 10/01/28-10/01/29 | | | 9,220 | | | | 10,522,888 | |
Municipal Improvement Corp. of Los Angeles
(Municipal Improvement Corp. of Los Angeles Lease)
Series 2016B
4.00%, 11/01/35 | | | 12,480 | | | | 12,414,106 | |
Norco Community Redevelopment Agency Successor Agency
(Norco Redevelopment Agency Project No 1)
Series 2010
5.875%, 3/01/32 | | | 1,580 | | | | 1,783,773 | |
6.00%, 3/01/36 | | | 1,125 | | | | 1,265,782 | |
AMBAC Series 2005
5.00%, 3/01/26 | | | 1,900 | | | | 1,905,320 | |
Oakland Unified School District/Alameda County
Series 2015A
5.00%, 8/01/31-8/01/33 | | | 5,340 | | | | 6,031,530 | |
Series 2016
5.00%, 8/01/30-8/01/31 | | | 5,000 | | | | 5,749,075 | |
Orange County Transportation Authority
Series 2013
5.00%, 8/15/29 | | | 2,360 | | | | 2,694,955 | |
Oxnard Financing Authority
AGM Series 2014
5.00%, 6/01/31 | | | 5,250 | | | | 5,735,887 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 31 | |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Palomar Health
Series 2016
5.00%, 11/01/36 | | $ | 5,000 | | | $ | 5,271,450 | |
Series 2016A
5.00%, 8/01/31 | | | 1,285 | | | | 1,448,452 | |
Port of Los Angeles
Series 2009C
5.00%, 8/01/26 | | | 21,450 | | | | 23,350,041 | |
Poway Unified School District
(Poway Unified School District CFD No 6)
Series 2012
5.00%, 9/01/26 | | | 970 | | | | 1,065,632 | |
Poway Unified School District Public Financing Authority
Series 2015A
5.00%, 9/01/33-9/01/34 | | | 2,500 | | | | 2,702,620 | |
Redding Joint Powers Financing Authority
Series 2015A
5.00%, 6/01/30 | | | 1,350 | | | | 1,521,652 | |
Riverside County Transportation Commission
(Riverside County Transportation Commission Sales Tax)
Series 2013A
5.25%, 6/01/32 | | | 9,165 | | | | 10,384,220 | |
Rocklin Unified School District Community Facilities District
NATL Series 2004
5.00%, 9/01/25 | | | 1,000 | | | | 1,002,980 | |
Sacramento Area Flood Control Agency
5.00%, 10/01/35-10/01/36(e) | | | 9,010 | | | | 10,046,671 | |
Sacramento Regional Transit District
Series 2012
5.00%, 3/01/36-3/01/42 | | | 4,250 | | | | 4,651,567 | |
San Diego County Water Authority Financing Corp
Series 2011B
5.00%, 5/01/30 | | | 6,115 | | | | 6,873,810 | |
San Diego County Water Authority Financing Corp.
Series 2011B
5.00%, 5/01/29 | | | 10,000 | | | | 11,249,900 | |
San Diego Public Facilities Financing Authority
(San Diego Public Facilities Financing Authority Lease)
Series 2010A
5.25%, 3/01/25 | | | 15,000 | | | | 16,758,900 | |
| | |
| 32 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
San Diego Unified School District/CA
Series 2013C
5.00%, 7/01/32 | | $ | 3,180 | | | $ | 3,669,434 | |
Series 2016S
4.00%, 7/01/32 | | | 5,250 | | | | 5,427,240 | |
San Francisco City & County Airport Comm-San Francisco International Airport
(San Francisco Intl Airport)
Series 2010A
4.90%, 5/01/29 | | | 2,200 | | | | 2,404,820 | |
Series 2012A
5.00%, 5/01/27-5/01/28 | | | 7,000 | | | | 7,891,970 | |
AGM Series 2000A
6.125%, 1/01/27 | | | 1,480 | | | | 1,487,208 | |
San Francisco City & County Redevelopment Agency
(Mission Bay South Public Imp)
Series 2013A
5.00%, 8/01/29 | | | 1,310 | | | | 1,400,259 | |
San Francisco City & County Redevelopment Agency
(Successor Agency to the Redev of San Francisco – Mission Bay South)
Series 2016B
5.00%, 8/01/33-8/01/35 | | | 2,000 | | | | 2,288,900 | |
Series 2016C
5.00%, 8/01/32-8/01/35 | | | 2,000 | | | | 2,220,580 | |
San Joaquin Hills Transportation Corridor Agency
Series 1993
Zero Coupon, 1/01/20-1/01/21
(Pre-refunded/ETM) | | | 40,000 | | | | 37,461,000 | |
Zero Coupon, 1/01/23 (Pre-refunded/ETM)(f) | | | 25,000 | | | | 21,889,750 | |
San Mateo Joint Powers Financing Authority
(San Mateo Joint Powers Financing Authority Lease)
Series 2016A
4.00%, 7/15/32-7/15/35 | | | 6,605 | | | | 6,803,184 | |
Santa Ana Unified School District
Series 2008A
5.25%, 8/01/28 | | | 5,400 | | | | 5,754,564 | |
Southern California Public Power Authority
Series 2009A
5.00%, 7/01/23 | | | 3,200 | | | | 3,426,976 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 33 | |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Southern California Public Power Authority
(Los Angeles Department of Water & Power PWR)
Series 2014A
5.00%, 7/01/33-7/01/34 | | $ | 8,200 | | | $ | 9,399,314 | |
State of California
Series 2004
5.30%, 4/01/29 | | | 5 | | | | 5,015 | |
Series 2013
5.00%, 2/01/31-11/01/31 | | | 10,000 | | | | 11,158,600 | |
Series 2014
5.00%, 12/01/30 | | | 2,000 | | | | 2,254,540 | |
Series 2015
5.00%, 8/01/32 | | | 6,050 | | | | 6,823,492 | |
State of California
(Inland Regional Center)
Series 2015
5.00%, 6/15/32 | | | 5,000 | | | | 5,517,750 | |
State of California Department of Water Resources
Series 2008
5.00%, 12/01/24 | | | 95 | | | | 100,180 | |
Series 2008AE
5.00%, 12/01/24 (Pre-refunded/ETM) | | | 4,905 | | | | 5,185,223 | |
5.00%, 12/01/27 (Pre-refunded/ETM) | | | 2,580 | | | | 2,727,395 | |
5.00%, 12/01/27 | | | 100 | | | | 105,438 | |
Series 2009A
5.00%, 12/01/29 (Pre-refunded/ETM) | | | 1,295 | | | | 1,390,636 | |
5.00%, 12/01/29 | | | 930 | | | | 996,960 | |
Stockton Redevelopment Agency Successor Agency
AGM Series 2016A
5.00%, 9/01/33-9/01/34 | | | 3,800 | | | | 4,157,358 | |
Successor Agency to Richmond Community Redevelopment Agency
Series 2010A
5.75%, 9/01/24-9/01/25 | | | 1,985 | | | | 2,219,006 | |
6.00%, 9/01/30 | | | 1,395 | | | | 1,572,974 | |
Successor Agency to the Redev of San Francisco – Mission Bay North
Series 2016A
5.00%, 8/01/32-8/01/36 | | | 3,335 | | | | 3,734,996 | |
Tejon Ranch Public Facilities Finance Authority (Tejon Ranch Public Facilities Finance Authority CFD No 1)
Series 2012
5.25%, 9/01/26-9/01/28 | | | 2,375 | | | | 2,474,540 | |
5.50%, 9/01/30-9/01/33 | | | 2,135 | | | | 2,225,447 | |
| | |
| 34 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Tustin Community Facilities District No 06-1
Series 2015A
5.00%, 9/01/32-9/01/35 | | $ | 3,780 | | | $ | 4,198,497 | |
University of California
Series 2013A
5.00%, 5/15/32 | | | 9,000 | | | | 10,216,710 | |
Walnut Energy Center Authority
Series 2014
5.00%, 1/01/31-1/01/32 | | | 7,700 | | | | 8,894,628 | |
West Contra Costa Healthcare District
Series 2011
6.00%, 7/01/32 | | | 1,050 | | | | 1,147,923 | |
AMBAC Series 2004
5.375%, 7/01/21-7/01/24 | | | 4,720 | | | | 4,799,071 | |
| | | | | | | | |
| | | | | | | 680,238,477 | |
| | | | | | | | |
Massachusetts – 0.8% | | | | | | | | |
Commonwealth of Massachusetts
NATL Series 2000E
0.585%, 12/01/30(g) | | | 3,125 | | | | 2,847,841 | |
NATL Series 2000G
0.545%, 12/01/30(g) | | | 3,150 | | | | 2,870,850 | |
| | | | | | | | |
| | | | | | | 5,718,691 | |
| | | | | | | | |
Nevada – 0.3% | | | | | | | | |
Henderson Local Improvement Districts
AGM Series 2007A
5.00%, 3/01/22 | | | 2,155 | | | | 2,210,815 | |
| | | | | | | | |
| | |
New York – 0.2% | | | | | | | | |
New York State Energy Research & Development Authority
(Consolidated Edison Co. of New York, Inc.)
XLCA Series 2004A
1.295%, 1/01/39(g) | | | 1,300 | | | | 1,185,789 | |
| | | | | | | | |
| | |
Ohio – 0.2% | | | | | | | | |
Ohio Water Development Authority Water Pollution Control Loan Fund
(FirstEnergy Nuclear Generation LLC)
Series 2016A
4.375%, 6/01/33 | | | 1,700 | | | | 1,552,831 | |
| | | | | | | | |
| | |
Puerto Rico – 0.0% | | | | | | | | |
Puerto Rico Housing Finance Authority
(Puerto Rico Housing Finance Authority Cap Fd Prog)
Series 2008
5.125%, 12/01/27 | | | 295 | | | | 309,490 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 35 | |
AB California Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Texas – 0.8% | | | | | | | | |
Texas Private Activity Bond Surface Transportation Corp.
(LBJ Infrastructure Group LLC)
Series 2010
7.00%, 6/30/40 | | $ | 3,050 | | | $ | 3,486,638 | |
Texas Private Activity Bond Surface Transportation Corp.
(NTE Mobility Partners LLC)
Series 2009
6.875%, 12/31/39 | | | 1,525 | | | | 1,732,720 | |
| | | | | | | | |
| | | | | | | 5,219,358 | |
| | | | | | | | |
Total Municipal Obligations
(cost $663,485,540) | | | | | | | 696,435,451 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
SHORT-TERM INVESTMENTS – 0.9% | | | | | | | | |
Investment Companies – 0.9% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.30%(h)(i)
(cost $6,289,443) | | | 6,289,442 | | | | 6,289,443 | |
| | | | | | | | |
| | |
Total Investments – 102.1%
(cost $669,774,983) | | | | | | | 702,724,894 | |
Other assets less liabilities – (2.1)% | | | | | | | (14,556,776 | ) |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 688,168,118 | |
| | | | | | | | |
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 | | | Unrealized
Appreciation/
(Depreciation) | |
Citibank, NA | | $ | 6,500 | | | | 1/25/26 | | | | SIFMA* | | | | 4.108% | | | $ | 1,320,884 | |
Merrill Lynch Capital Services, Inc. | | | 14,500 | | | | 7/30/26 | | | | 4.090% | | | | SIFMA* | | | | (3,023,159 | ) |
Merrill Lynch Capital Services, Inc. | | | 5,000 | | | | 11/15/26 | | | | 4.378% | | | | SIFMA* | | | | (1,187,393 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (2,889,668 | ) |
| | | | | | | | | | | | | | | | | | | | |
| * | | Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index. |
| | |
| 36 | | • AB MUNICIPAL INCOME FUND |
AB California Portfolio—Portfolio of Investments
| (a) | | Restricted and illiquid security. |
| | | | | | | | | | | | | | | | |
Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
California Municipal Finance Authority
(UTS Bioenergy LLC)
Series 2011A-1
7.50%, 12/01/2032 | | | 12/22/11 | | | $ | 2,745,000 | | | $ | 1,977,169 | | | | 0.29 | % |
| (b) | | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2016, the aggregate market value of these securities amounted to $35,992,380 or 5.2% of net assets. |
| (c) | | Variable rate coupon, rate shown as of November 30, 2016. |
| (d) | | Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note I). |
| (e) | | When-Issued or delayed delivery security. |
| (f) | | Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding. |
| (g) | | An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of November 30, 2016 and the aggregate market value of these securities amounted to $6,904,480 or 1.00% of net assets. |
| (h) | | Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end. |
| (i) | | To obtain a copy of the fund’s financial statements, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
As of November 30, 2016, 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 6.3% and 0.2%, respectively.
Glossary:
| AGM | | – Assured Guaranty Municipal |
| AMBAC | | – Ambac Assurance Corporation |
| CFD | | – Community Facilities District |
| COP | | – Certificate of Participation |
| DOT | | – Department of Transportation |
| ETM | | – Escrowed to Maturity |
| NATL | | – National Interstate Corporation |
| XLCA | | – XL Capital Assurance Inc. |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 37 | |
AB California Portfolio—Portfolio of Investments
AB HIGH INCOME MUNICIPAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 2016 (unaudited)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
MUNICIPAL OBLIGATIONS – 102.6% | | | | | | | | |
Long-Term Municipal Bonds – 102.6% | | | | | | | | |
Alabama – 2.0% | | | | | | | | |
Alabama Special Care Facilities Financing Authority-Birmingham AL
(Methodist Home for the Aging)
Series 2016-2015-1
6.00%, 6/01/50 | | $ | 3,150 | | | $ | 3,358,719 | |
County of Jefferson AL
(County of Jefferson AL Sch Warrants) Series 2004A
4.75%, 1/01/25 | | | 530 | | | | 533,959 | |
County of Jefferson AL Sewer Revenue
Series 2013D
6.00%, 10/01/42 | | | 35,865 | | | | 40,225,108 | |
Cullman County Health Care Authority
(Cullman Regional Medical Center, Inc.)
Series 2009A
6.25%, 2/01/23 | | | 1,000 | | | | 1,042,390 | |
7.00%, 2/01/36 | | | 3,130 | | | | 3,313,543 | |
| | | | | | | | |
| | | | | | | 48,473,719 | |
| | | | | | | | |
Alaska – 0.2% | | | | | | | | |
City of Koyukuk AK
Series 2011
7.75%, 10/01/41 | | | 4,550 | | | | 5,318,996 | |
| | | | | | | | |
| | |
American Samoa – 0.2% | | | | | | | | |
American Samoa Economic Development Authority
(Territory of American Samoa)
Series 2015A
6.625%, 9/01/35 | | | 5,000 | | | | 4,794,800 | |
| | | | | | | | |
| | |
Arizona – 1.4% | | | | | | | | |
Arizona Health Facilities Authority
(Beatitudes Campus (The))
Series 2007
5.10%, 10/01/22 | | | 2,590 | | | | 2,593,652 | |
5.20%, 10/01/37 | | | 6,855 | | | | 6,859,250 | |
Glendale Industrial Development Authority
(Glencroft Retirement Community Obligated Group)
Series 2016
5.25%, 11/15/46-11/15/51 | | | 1,950 | | | | 1,710,751 | |
Industrial Development Authority of the City of Phoenix (The)
(Deer Valley Assisted Living Facility LLC) Series 2016A
5.125%, 7/01/36 | | | 4,400 | | | | 3,858,976 | |
| | |
| 38 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Industrial Development Authority of the City of Phoenix (The)
(Great Hearts Academies)
Series 2012
6.30%, 7/01/42 | | $ | 1,000 | | | $ | 1,057,940 | |
Series 2014
5.00%, 7/01/44 | | | 10,690 | | | | 11,011,341 | |
Maricopa County Industrial Development Authority
(Reid Traditional Schools Painted Rock Academy)
Series 2016
5.00%, 7/01/47 | | | 1,375 | | | | 1,401,139 | |
Quechan Indian Tribe of Fort Yuma
Series 2012A
9.75%, 5/01/25 | | | 2,400 | | | | 2,651,400 | |
Tempe Industrial Development Authority
(Friendship Village of Tempe)
Series 2012A
6.25%, 12/01/42-12/01/46 | | | 3,000 | | | | 3,122,160 | |
| | | | | | | | |
| | | | | | | 34,266,609 | |
| | | | | | | | |
California – 8.8% | | | | | | | | |
Abag Finance Authority for Nonprofit Corps.
(Episcopal Senior Communities)
Series 2011
6.125%, 7/01/41 | | | 2,400 | | | | 2,638,440 | |
Alameda Corridor Transportation Authority
Series 2016B
5.00%, 10/01/35 | | | 5,000 | | | | 5,352,200 | |
California Municipal Finance Authority
Series 2011B
7.75%, 4/01/31 | | | 2,870 | | | | 3,443,254 | |
California Municipal Finance Authority
(Goodwill Industries of Sacramento Valley & Northern Nevada, Inc.)
Series 2012A
6.625%, 1/01/32(a) | | | 1,000 | | | | 1,086,400 | |
6.875%, 1/01/42(a) | | | 3,500 | | | | 3,779,265 | |
Series 2014
5.00%, 1/01/35 | | | 1,050 | | | | 992,607 | |
5.25%, 1/01/45 | | | 3,025 | | | | 2,819,360 | |
California Municipal Finance Authority
(Partnerships to Uplift Communities Lakeview Terrace and Los Angeles Project)
Series 2012A
5.30%, 8/01/47 | | | 1,675 | | | | 1,687,881 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 39 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California Municipal Finance Authority
(Rocketship Education)
Series 2014A
7.00%, 6/01/34 | | $ | 3,800 | | | $ | 4,136,528 | |
7.25%, 6/01/43 | | | 6,565 | | | | 7,135,236 | |
California Municipal Finance Authority
(Rocketship Seven-Alma Academy)
Series 2012A
6.25%, 6/01/43 | | | 3,340 | | | | 3,510,440 | |
California Municipal Finance Authority
(UTS Bioenergy LLC)
Series 2011A-1
7.50%, 12/01/32(b) | | | 3,795 | | | | 2,733,463 | |
California Pollution Control Financing Authority
(Poseidon Resources Channelside LP)
Series 2012
5.00%, 11/21/45(a) | | | 16,720 | | | | 17,470,728 | |
California School Finance Authority
(ACE Charter Schools Obligated Group)
Series 2016A
5.00%, 6/01/52(a) | | | 2,045 | | | | 1,775,367 | |
California School Finance Authority
(Alliance College-Ready Public Schools Facilities Corp.)
Series 2016A
5.00%, 7/01/46-7/01/51(a) | | | 5,250 | | | | 5,511,013 | |
California School Finance Authority
(Kipp LA)
Series 2014A
5.125%, 7/01/44 | | | 2,850 | | | | 3,040,323 | |
California School Finance Authority
(Partnerships to Uplift Communities Valley Project)
Series 2014A
6.40%, 8/01/34 | | | 1,000 | | | | 1,091,430 | |
6.75%, 8/01/44 | | | 6,180 | | | | 6,788,297 | |
California School Finance Authority
(Tri-Valley Learning Corp.)
Series 2012A
7.00%, 6/01/47(b)(c)(d) | | | 8,995 | | | | 5,397,000 | |
California Statewide Communities Development Authority
(Amino Inglewood CA High School)
Series 2011A
7.25%, 8/01/41 | | | 2,000 | | | | 2,189,000 | |
California Statewide Communities Development Authority
(Eskaton Properties, Inc. Obligated Group)
Series 2012
5.25%, 11/15/34 | | | 3,470 | | | | 3,663,557 | |
| | |
| 40 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California Statewide Communities Development Authority
(Front Porch Communities & Services)
Series 2007A
5.125%, 4/01/37(a) | | $ | 3,300 | | | $
| 3,306,336
|
|
California Statewide Communities Development Authority
(John Muir Health)
Series 2016A
5.00%, 8/15/41 | | | 1,000 | | | | 1,094,800 | |
California Statewide Communities Development Authority
(Loma Linda University Medical Center)
Series 2016A
5.00%, 12/01/46(a) | | | 1,000 | | | | 996,910 | |
California Statewide Communities Development Authority
(Moldaw Residences)
Series 2014A
5.375%, 11/01/49 | | | 4,500 | | | | 4,771,575 | |
California Statewide Communities Development Authority
(Rocketship Four-Mosaic Elementary)
Series 2011A
8.50%, 12/01/41 | | | 4,000 | | | | 4,573,480 | |
California Statewide Communities Development Authority
(Rocklin Academy)
Series 2011A
8.25%, 6/01/41 | | | 4,050 | | | | 4,645,147 | |
California Statewide Communities Development Authority
(Terraces at San Joaquin Gardens (The))
Series 2012A
5.625%, 10/01/32 | | | 1,000 | | | | 1,064,360 | |
6.00%, 10/01/47 | | | 1,000 | | | | 1,071,250 | |
City of Roseville CA
(HP Campus Oaks Community Facilities District No 1)
Series 2016
5.50%, 9/01/46 | | | 1,500 | | | | 1,540,845 | |
City of San Buenaventura CA
(Community Memorial Health System)
Series 2011
7.50%, 12/01/41 | | | 4,500 | | | | 5,197,140 | |
City of San Jose CA Airport Revenue
AMBAC Series 2007A
5.00%, 3/01/37 | | | 6,245 | | | | 6,297,645 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 41 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Los Angeles CA Dept Wtr Pwr
5.00%, 7/01/31(e) | | $ | 9,000 | | | $ | 10,267,830 | |
Los Angeles County Public Works Financing Authority
(Los Angeles County Public Works Financing Authority Lease)
Series 2016D
5.00%, 12/01/45 | | | 6,150 | | | | 6,751,716 | |
Los Angeles Unified School District/CA
Series 2010KRY
5.25%, 7/01/25(e) | | | 1,000 | | | | 1,124,000 | |
Municipal Improvement Corp. of Los Angeles
(Municipal Improvement Corp. of Los Angeles Lease)
Series 2016B
4.00%, 11/01/33-11/01/36 | | | 14,750 | | | | 14,733,156 | |
Norco Community Redevelopment Agency Successor Agency
(Norco Redevelopment Agency Project No 1)
Series 2010
6.00%, 3/01/36 | | | 450 | | | | 506,313 | |
Oakland Unified School District/Alameda County
Series 2012A
5.50%, 8/01/32 | | | 1,500 | | | | 1,750,545 | |
San Francisco City & County Redevelopment Agency
(Successor Agency to the Redev of San Francisco – Mission Bay South)
NATL Series 2016C
5.00%, 8/01/41 | | | 2,750 | | | | 2,986,692 | |
San Joaquin Hills Transportation Corridor Agency
Series 2014A
5.00%, 1/15/44 | | | 5,600 | | | | 5,795,944 | |
Series 2014B
5.25%, 1/15/44 | | | 4,000 | | | | 4,243,640 | |
Southern CA Pub Pwr Auth
(Los Angeles CA Dept W&P Pwr)
5.25%, 7/01/27(e) | | | 9,960 | | | | 11,288,266 | |
Southern California Logistics Airport Authority
XLCA Series 2006
5.00%, 12/01/36 | | | 3,600 | | | | 3,515,508 | |
| | |
| 42 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Successor Agency to Richmond Community Redevelopment Agency
Series 2010A
6.00%, 9/01/30 | | $ | 1,235 | | | $ | 1,392,561 | |
University of California
Series 2013A
5.00%, 5/15/32(e) | | | 10,000 | | | | 11,351,900 | |
Series 2016A
5.00%, 5/15/41 | | | 5,000 | | | | 5,594,400 | |
University of California CA Revenues
5.00%, 5/15/33(e) | | | 9,000 | | | | 10,176,930 | |
West Contra Costa Healthcare District
Series 2011
6.25%, 7/01/42 | | | 5,900 | | | | 6,537,790 | |
| | | | | | | | |
| | | | | | | 218,818,468 | |
| | | | | | | | |
Colorado – 1.4% | | | | | | | | |
Castle Oaks Metropolitan District No 3
Series 2015
6.25%, 12/01/44 | | | 1,000 | | | | 1,048,340 | |
Central Platte Valley Metropolitan District
Series 2014
5.00%, 12/01/43 | | | 1,250 | | | | 1,263,213 | |
Colorado Educational & Cultural Facilities Authority
(STEM School Academy)
Series 2014
5.00%, 11/01/44 | | | 890 | | | | 840,160 | |
5.125%, 11/01/49 | | | 765 | | | | 718,243 | |
Colorado Health Facilities Authority
(Catholic Health Initiatives)
Series 2013
5.25%, 1/01/40 | | | 5,795 | | | | 6,262,946 | |
Colorado Health Facilities Authority
(Christian Living Communities)
Series 2016
5.00%, 1/01/31-1/01/37 | | | 3,050 | | | | 3,077,151 | |
Colorado Health Facilities Authority
(Evangelical Lutheran Good Samaritan Obligated Group)
Series 2012
5.00%, 12/01/42 | | | 2,690 | | | | 2,732,529 | |
Colorado Health Facilities Authority
(Sunny Vista Living Center)
Series 2015A
6.125%, 12/01/45(a) | | | 1,750 | | | | 1,812,930 | |
6.25%, 12/01/50(a) | | | 1,000 | | | | 1,041,110 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 43 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Copperleaf Metropolitan District No 2
Series 2015
5.75%, 12/01/45 | | $ | 1,000 | | | $ | 1,003,410 | |
E-470 Public Highway Authority
Series 2010C
5.25%, 9/01/25 | | | 600 | | | | 642,990 | |
Fitzsimons Village Metropolitan District No 1
Series 2010A
7.50%, 3/01/40 | | | 1,391 | | | | 1,466,197 | |
Plaza Metropolitan District No 1
Series 2013
5.00%, 12/01/40(a) | | | 1,000 | | | | 1,023,350 | |
Regional Transportation District
(Denver Transit Partners LLC)
Series 2010
6.00%, 1/15/41 | | | 5,810 | | | | 6,364,564 | |
Sterling Ranch Community Authority Board
Series 2015A
5.75%, 12/01/45 | | | 1,610 | | | | 1,486,690 | |
Three Springs Metropolitan District No 3
Series 2010
7.75%, 12/01/39 | | | 2,550 | | | | 2,635,170 | |
| | | | | | | | |
| | | | | | | 33,418,993 | |
| | | | | | | | |
Connecticut – 0.7% | | | | | | | | |
Connecticut State Health & Educational Facility Authority
(Quinnipiac University)
Series 2015L
5.00%, 7/01/45 | | | 3,250 | | | | 3,513,185 | |
Connecticut State Health & Educational Facility Authority
(Stamford Hospital Obligated Group (The))
Series 2016K
4.00%, 7/01/46 | | | 4,550 | | | | 4,243,330 | |
State of Connecticut
Series 2013E
5.00%, 8/15/31(e) | | | 7,850 | | | | 8,735,087 | |
| | | | | | | | |
| | | | | | | 16,491,602 | |
| | | | | | | | |
Delaware – 0.0% | | | | | | | | |
Delaware State Economic Development Authority
(Newark Charter School, Inc.)
Series 2012
5.00%, 9/01/42 | | | 575 | | | | 618,493 | |
| | | | | | | | |
| | |
| 44 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
District of Columbia – 1.1% | | | | | | | | |
District of Columbia
(American Society of Hematology, Inc. (The))
Series 2009
5.00%, 7/01/36 | | $ | 3,000 | | | $ | 3,320,310 | |
District of Columbia
(Center for Strategic International Studies, Inc.)
Series 2011
6.625%, 3/01/41 | | | 1,850 | | | | 2,020,885 | |
District of Columbia
(Friendship Public Charter School, Inc.)
Series 2012
5.00%, 6/01/42 | | | 2,660 | | | | 2,820,744 | |
Series 2016A
5.00%, 6/01/41-6/01/46 | | | 3,705 | | | | 3,970,845 | |
District of Columbia
(KIPP DC)
Series 2013
6.00%, 7/01/48 | | | 2,900 | | | | 3,237,531 | |
District of Columbia Pers Income Tax
5.00%, 12/01/29(e) | | | 10,000 | | | | 11,346,500 | |
| | | | | | | | |
| | | | | | | 26,716,815 | |
| | | | | | | | |
Florida – 5.0% | | | | | | | | |
Alachua County Health Facilities Authority
(Bonita Springs Retirement Village, Inc.)
Series 2011A
8.125%, 11/15/46 | | | 5,000 | | | | 5,658,100 | |
Alachua County Health Facilities Authority
(East Ridge Retirement Village, Inc.)
Series 2014
6.25%, 11/15/44 | | | 3,150 | | | | 3,392,613 | |
Alachua County Health Facilities Authority
(Oak Hammock at the University of Florida, Inc.)
Series 2012A
8.00%, 10/01/42-10/01/46 | | | 4,065 | | | | 4,776,877 | |
Alachua County Health Facilities Authority
(Shands Teaching Hospital and Clinics Obligated Group)
Series 2014A
5.00%, 12/01/44 | | | 4,000 | | | | 4,212,480 | |
Bexley Community Development District
Series 2016
4.875%, 5/01/47 | | | 2,090 | | | | 1,809,835 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 45 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Cape Coral Health Facilities Authority
(Gulf Care, Inc. Obligated Group)
Series 2015
6.00%, 7/01/50(a) | | $ | 1,200 | | | $ | 1,252,176 | |
Capital Trust Agency, Inc.
(Million Air One LLC)
Series 2011
7.75%, 1/01/41(b) | | | 15,030 | | | | 12,903,105 | |
City of Lakeland FL
(Florida Southern College)
Series 2012A
5.00%, 9/01/37-9/01/42 | | | 1,500 | | | | 1,595,140 | |
City of Tallahassee FL
(Tallahassee Memorial HealthCare, Inc.)
Series 2015A
5.00%, 12/01/44 | | | 6,830 | | | | 6,957,653 | |
Collier County Health Facilities Authority
(The Moorings)
Series 2015A
5.00%, 5/01/45 | | | 4,325 | | | | 4,659,798 | |
Collier County Industrial Development Authority
(Arlington of Naples (The))
Series 2014A
8.125%, 5/15/44(a) | | | 7,900 | | | | 8,865,459 | |
Series 2015A
6.50%, 5/15/49(a) | | | 1,000 | | | | 952,110 | |
Florida Development Finance Corp.
(Tuscan Isle ChampionsGate Obligated Group)
Series 2016A
6.375%, 6/01/46(a) | | | 3,500 | | | | 3,358,845 | |
Florida Development Finance Corp.
(Tuscan Isle Obligated Group)
Series 2015A
7.00%, 6/01/45(a) | | | 4,200 | | | | 4,266,948 | |
Lakewood Ranch Stewardship District
(Villages of Lakewood Ranch South Project)
Series 2016
5.125%, 5/01/46 | | | 2,885 | | | | 2,729,066 | |
Martin County Health Facilities Authority
(Martin Memorial Medical Center, Inc.)
Series 2012
5.50%, 11/15/32-11/15/42 | | | 9,050 | | | | 9,592,662 | |
Martin County Industrial Development Authority
(Indiantown Cogeneration LP)
Series 2013
4.20%, 12/15/25 | | | 6,710 | | | | 6,835,544 | |
| | |
| 46 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Miami Beach Health Facilities Authority
(Mount Sinai Medical Center of Florida, Inc.)
Series 2012
5.00%, 11/15/29 | | $ | 4,365 | | | $ | 4,715,989 | |
Series 2014
5.00%, 11/15/39-11/15/44 | | | 14,850 | | | | 15,760,713 | |
Mid-Bay Bridge Authority
Series 2011A
7.25%, 10/01/40 | | | 1,035 | | | | 1,281,413 | |
Palm Beach County Health Facilities Authority
Series 2007
5.875%, 11/15/37 | | | 4,250 | | | | 4,439,720 | |
St Johns County Industrial Development Authority
Series 2010A
5.875%, 8/01/40 | | | 4,000 | | | | 4,574,080 | |
Town of Davie FL
(Nova Southeastern University, Inc.)
Series 2013A
6.00%, 4/01/42 | | | 9,050 | | | | 10,489,493 | |
| | | | | | | | |
| | | | | | | 125,079,819 | |
| | | | | | | | |
Georgia – 0.2% | | | | | | | | |
Private Colleges & Universities Authority
(Savannah College of Art & Design, Inc.)
Series 2014
5.00%, 4/01/44 | | | 5,000 | | | | 5,135,350 | |
| | | | | | | | |
| | |
Guam – 0.1% | | | | | | | | |
Guam Department of Education COP
Series 2010A
6.875%, 12/01/40 | | | 910 | | | | 973,272 | |
Territory of Guam
Series 2009A
7.00%, 11/15/39 | | | 1,000 | | | | 1,152,200 | |
| | | | | | | | |
| | | | | | | 2,125,472 | |
| | | | | | | | |
Idaho – 0.5% | | | | | | | | |
Idaho Health Facilities Authority
(The Terraces at Boise)
Series 2014A
8.00%, 10/01/44 | | | 7,850 | | | | 8,330,027 | |
Idaho Housing & Finance Association
(Battelle Energy Alliance LLC)
Series 2010A
7.00%, 2/01/36 | | | 4,000 | | | | 4,500,600 | |
| | | | | | | | |
| | | | | | | 12,830,627 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 47 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Illinois – 12.2% | | | | | | | | |
Chicago Board of Education
Series 2011A
5.25%, 12/01/41 | | $ | 5,000 | | | $ | 3,891,300 | |
Series 2012A
5.00%, 12/01/42 | | | 8,580 | | | | 6,415,523 | |
Series 2015C
5.25%, 12/01/35-12/01/39 | | | 15,500 | | | | 12,412,865 | |
Chicago O’Hare International Airport
(Chicago O’Hare International Airport Customer Facility Charge)
Series 2013
5.75%, 1/01/43 | | | 2,055 | | | | 2,293,997 | |
Chicago Transit Authority
(Chicago Transit Authority Sales Tax)
Series 2011
5.25%, 12/01/31 | | | 5,000 | | | | 5,421,150 | |
Series 2014
5.25%, 12/01/49 | | | 8,000 | | | | 8,649,600 | |
City of Chicago IL
Series 2003B
5.00%, 1/01/18 | | | 1,000 | | | | 1,012,570 | |
Series 2008A
5.00%, 1/01/18-1/01/19 | | | 4,955 | | | | 5,017,384 | |
Series 2010A
4.00%, 12/01/18 | | | 595 | | | | 595,785 | |
5.00%, 1/01/18-1/01/19 | | | 2,240 | | | | 2,272,031 | |
Series 20152
5.00%, 1/01/18 | | | 1,150 | | | | 1,164,456 | |
Series 2015A
5.00%, 1/01/19 | | | 600 | | | | 611,322 | |
City of Chicago IL
(Asphalt Operating Services of Chicago LLC)
Series 2010
6.125%, 12/01/18 | | | 1,195 | | | | 1,209,053 | |
City of Chicago IL
(Goldblatts Supportive Living Project)
Series 2013
6.375%, 12/01/52(f) | | | 7,950 | | | | 6,833,025 | |
City of Chicago IL
(Metramarket of Chicago LLC)
Series 2010A
6.87%, 2/15/24 | | | 889 | | | | 889,489 | |
Illinois Finance Authority
Series 2010A
6.00%, 5/15/39 | | | 3,715 | | | | 4,191,152 | |
Series 2010B
6.00%, 5/01/34 | | | 2,025 | | | | 2,296,067 | |
| | |
| 48 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Illinois Finance Authority
(Ascension Health Credit Group)
Series 2012A
5.00%, 11/15/42 | | $ | 6,400 | | | $ | 6,974,784 | |
Illinois Finance Authority
(Greenfields of Geneva)
Series 2010A
8.125%, 2/15/40(b) | | | 3,950 | | | | 2,705,316 | |
8.25%, 2/15/46(b) | | | 1,950 | | | | 1,334,912 | |
Illinois Finance Authority
(Illinois Institute of Technology)
Series 2006A
5.00%, 4/01/19-4/01/36 | | | 7,675 | | | | 7,274,156 | |
Illinois Finance Authority
(Lake Forest College)
Series 2012A
6.00%, 10/01/48 | | | 1,300 | | | | 1,352,221 | |
Illinois Finance Authority
(Lutheran Home & Services Obligated Group)
Series 2012
5.625%, 5/15/42 | | | 7,525 | | | | 7,656,838 | |
5.75%, 5/15/46 | | | 4,740 | | | | 4,788,253 | |
Illinois Finance Authority
(Mercy Health System Obligated Group)
Series 2016
5.00%, 12/01/40 | | | 16,000 | | | | 16,675,040 | |
Illinois Finance Authority
(OSF Healthcare System Obligated Group)
Series 2010A
6.00%, 5/15/39 | | | 2,070 | | | | 2,284,597 | |
Illinois Finance Authority
(Park Place of Elmhurst)
Series 2016A
6.33%, 5/15/48 | | | 4,344 | | | | 4,194,214 | |
6.44%, 5/15/55 | | | 8,560 | | | | 8,196,577 | |
Series 2016C
2.00%, 5/15/55(c)(d)(f) | | | 2,277 | | | | 97,069 | |
Illinois Finance Authority
(Plymouth Place, Inc.)
Series 2013
6.00%, 5/15/43 | | | 7,500 | | | | 8,328,900 | |
Series 2015
5.25%, 5/15/50 | | | 2,300 | | | | 2,375,923 | |
Illinois Finance Authority
(Presence Health Network Obligated Group)
Series 2016C
5.00%, 2/15/32-2/15/36 | | | 12,535 | | | | 12,799,655 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 49 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Illinois Finance Authority
(Silver Cross Hospital Obligated Group)
Series 2015C
5.00%, 8/15/44 | | $ | 4,500 | | | $ | 4,647,060 | |
Illinois Finance Authority
(Swedish Covenant Hospital)
Series 2010A
6.00%, 8/15/38 | | | 3,360 | | | | 3,787,123 | |
Illinois State Toll Highway Authority
Series 2015B
5.00%, 1/01/36-1/01/40 | | | 22,300 | | | | 23,968,802 | |
Series 2016A
5.00%, 12/01/32 | | | 7,735 | | | | 8,636,360 | |
State of Illinois
5.00%, 11/01/35 | | | 5,000 | | | | 4,927,650 | |
Series 2014
5.00%, 5/01/29-4/01/38 | | | 39,355 | | | | 38,684,765 | |
Series 2016
5.00%, 2/01/27-2/01/29 | | | 32,125 | | | | 32,828,065 | |
Village of Antioch IL
(Village of Antioch IL Spl Tax)
Series 2016A
4.50%, 3/01/33 | | | 11,000 | | | | 10,139,030 | |
Series 2016B
7.00%, 3/01/33 | | | 4,655 | | | | 4,346,979 | |
Village of Matteson IL
Series 2010
8.00%, 12/01/29(g) | | | 5,000 | | | | 3,462,800 | |
Village of Pingree Grove IL Special Service Area No 7
Series 2015A
4.50%, 3/01/25 | | | 3,551 | | | | 3,591,694 | |
5.00%, 3/01/36 | | | 8,969 | | | | 8,957,340 | |
Series 2015B
6.00%, 3/01/36 | | | 3,036 | | | | 3,133,152 | |
| | | | | | | | |
| | | | | | | 303,326,044 | |
| | | | | | | | |
Indiana – 2.2% | | | | | | | | |
Indiana Finance Authority
(Bethany Circle of King’s Daughters’ of Madison Indiana, Inc. (The))
Series 2010
5.50%, 8/15/40-8/15/45 | | | 8,010 | | | | 8,548,038 | |
Indiana Finance Authority
(I-69 Development Partners LLC)
Series 2014
5.00%, 9/01/46 | | | 7,000 | | | | 6,518,820 | |
5.25%, 9/01/34-9/01/40 | | | 7,500 | | | | 7,377,155 | |
| | |
| 50 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Indiana Finance Authority
(Marquette Manor LLC)
Series 2012
4.75%, 3/01/32 | | $ | 5,535 | | | $ | 5,394,024 | |
Indiana Finance Authority
(Marquette Manor)
Series 2015A
5.00%, 3/01/39 | | | 2,675 | | | | 2,743,801 | |
Indiana Finance Authority
(WVB East End Partners LLC)
Series 2013A
5.00%, 7/01/44-7/01/48 | | | 22,595 | | | | 23,011,920 | |
Town of Chesterton IN
(StoryPoint Obligated Group)
Series 2016
6.375%, 1/15/51(a) | | | 2,000 | | | | 1,857,760 | |
| | | | | | | | |
| | | | | | | 55,451,518 | |
| | | | | | | | |
Iowa – 0.2% | | | | | | | | |
Xenia Rural Water District
Series 2016
5.00%, 12/01/41 | | | 4,000 | | | | 4,202,200 | |
| | | | | | | | |
| | |
Kansas – 0.1% | | | | | | | | |
Wichita KS Hlth Care FACS Revenue
(Kansas Masonic Home)
Series 2016I
5.375%, 12/01/46 | | | 2,100 | | | | 1,999,557 | |
Wyandotte County-Kansas City Unified Government
(Wyandotte County-Kansas City Unified Government Sales Tax)
Series 2010B
Zero Coupon, 6/01/21 | | | 25 | | | | 19,779 | |
| | | | | | | | |
| | | | | | | 2,019,336 | |
| | | | | | | | |
Kentucky – 1.6% | | | | | | | | |
Kentucky Economic Development Finance Authority
(Catholic Health Initiatives)
Series 2013
5.375%, 1/01/40 | | | 3,250 | | | | 3,534,342 | |
Kentucky Economic Development Finance Authority
(Masonic Home Independent Living II, Inc.)
Series 2016A
5.00%, 5/15/46-5/15/51 | | | 8,000 | | | | 7,129,090 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 51 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Kentucky Economic Development Finance Authority
(Masonic Homes of Kentucky, Inc. Obligated Group)
Series 2012
5.375%, 11/15/42 | | $ | 7,765 | | | $ | 7,435,143 | |
5.50%, 11/15/45 | | | 2,350 | | | | 2,277,197 | |
Kentucky Economic Development Finance Authority
(Next Generation Kentucky Information Highway)
Series 2015A
5.00%, 1/01/45 | | | 2,475 | | | | 2,557,219 | |
Kentucky Economic Development Finance Authority
(Owensboro Health, Inc.)
Series 2010A
6.00%, 6/01/30 | | | 6,210 | | | | 6,840,067 | |
6.375%, 6/01/40 | | | 2,900 | | | | 3,189,594 | |
6.50%, 3/01/45 | | | 3,725 | | | | 4,121,265 | |
Kentucky Economic Development Finance Authority
(Rosedale Green)
Series 2015
5.75%, 11/15/50 | | | 2,650 | | | | 2,506,768 | |
| | | | | | | | |
| | | | | | | 39,590,685 | |
| | | | | | | | |
Louisiana – 1.7% | | | | | | | | |
Jefferson Parish Hospital Service District No 2
Series 2011
6.375%, 7/01/41 | | | 5,775 | | | | 6,100,537 | |
Louisiana Local Government Environmental Facilities & Community Development Auth
(St James Place of Baton Rouge)
Series 2015A
6.25%, 11/15/45 | | | 7,625 | | | | 7,829,426 | |
Louisiana Local Government Environmental Facilities & Community Development Auth
(Woman’s Hospital Foundation)
Series 2010A
5.625%, 10/01/30 | | | 1,200 | | | | 1,339,092 | |
5.875%, 10/01/40 | | | 4,200 | | | | 4,702,110 | |
6.00%, 10/01/44 | | | 1,740 | | | | 1,960,614 | |
Louisiana Public Facilities Authority
(Louisiana Pellets, Inc.)
Series 2013B
10.50%, 7/01/39(b)(d) | | | 7,250 | | | | 2,537,500 | |
Series 2014A
8.375%, 7/01/39(b)(d) | | | 17,000 | | | | 5,950,000 | |
| | |
| 52 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Louisiana Public Facilities Authority
(Ochsner Clinic Foundation)
Series 2016
5.00%, 5/15/47 | | $ | 7,105 | | | $ | 7,425,791 | |
St Tammany Parish Finance Authority (Christwood)
Series 2015
5.25%, 11/15/37 | | | 4,600 | | | | 4,608,740 | |
| | | | | | | | |
| | | | | | | 42,453,810 | |
| | | | | | | | |
Maine – 0.7% | | | | | | | | |
Maine Health & Higher Educational Facilities Authority
(MaineGeneral Health Obligated Group)
Series 2011
6.75%, 7/01/36-7/01/41 | | | 8,440 | | | | 9,135,879 | |
Maine Health & Higher Educational Facilities Authority
(Stephens Memorial Hospital Association)
Series 2015
5.00%, 7/01/39 | | | 8,100 | | | | 8,734,149 | |
| | | | | | | | |
| | | | | | | 17,870,028 | |
| | | | | | | | |
Maryland – 0.4% | | | | | | | | |
City of Westminster MD
(Lutheran Village at Miller’s Grant, Inc. (The))
Series 2014A
6.00%, 7/01/34 | | | 1,500 | | | | 1,569,480 | |
6.125%, 7/01/39 | | | 750 | | | | 781,972 | |
6.25%, 7/01/44 | | | 2,000 | | | | 2,088,000 | |
County of Anne Arundel MD
(National Business Park North)
Series 2010
6.10%, 7/01/40 | | | 1,000 | | | | 1,036,440 | |
Maryland Health & Higher Educational Facilities Authority
(Meritus Medical Center, Inc.)
Series 2015
5.00%, 7/01/40-7/01/45 | | | 5,275 | | | | 5,603,219 | |
| | | | | | | | |
| | | | | | | 11,079,111 | |
| | | | | | | | |
Massachusetts – 3.0% | | | | | | | | |
Commonwealth of Massachusetts
Series 2016A
5.00%, 3/01/46 | | | 5,000 | | | | 5,495,800 | |
NATL Series 2000D
0.525%, 12/01/30(h) | | | 1,550 | | | | 1,412,523 | |
NATL Series 2000E
0.585%, 12/01/30(h) | | | 5,400 | | | | 4,921,068 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 53 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
NATL Series 2000F
0.54%, 12/01/30(h) | | $ | 11,275 | | | $ | 10,274,998 | |
Massachusetts Development Finance Agency (Dana-Farber Cancer Institute Obligated Group)
Series 2016N
5.00%, 12/01/34-12/01/36 | | | 4,000 | | | | 4,413,400 | |
Massachusetts Development Finance Agency (Emmanuel College/MA)
Series 2016A
5.00%, 10/01/35-10/01/43 | | | 8,000 | | | | 8,201,710 | |
Massachusetts Development Finance Agency (Merrimack College)
Series 2012A
5.25%, 7/01/42 | | | 5,000 | | | | 5,376,450 | |
Series 2014
5.125%, 7/01/44 | | | 1,000 | | | | 1,053,470 | |
Massachusetts Development Finance Agency (North Hill Communities, Inc. Obligated Group)
Series 2013A
6.25%, 11/15/33(a) | | | 2,000 | | | | 2,086,700 | |
6.50%, 11/15/43(a) | | | 3,750 | | | | 3,904,650 | |
Massachusetts School Building Authority (Massachusetts School Building Authority Sales Tax)
Series 2012B
5.00%, 8/15/30(e) | | | 10,000 | | | | 11,251,100 | |
Series 2015C
5.00%, 8/15/37 | | | 15,000 | | | | 16,744,800 | |
| | | | | | | | |
| | | | | | | 75,136,669 | |
| | | | | | | | |
Michigan – 5.2% | | | | | | | | |
City of Detroit MI Sewage Disposal System Revenue
(Great Lakes Water Authority Sewage Disposal System)
Series 2012A
5.25%, 7/01/39 | | | 11,115 | | | | 12,097,566 | |
City of Detroit MI Water Supply System Revenue
(Great Lakes Water Authority Water Supply System)
Series 2011C
5.00%, 7/01/41 | | | 1,425 | | | | 1,498,559 | |
5.25%, 7/01/27 | | | 5,000 | | | | 5,477,200 | |
Detroit City School District
Series 2012A
5.00%, 5/01/30-5/01/31 | | | 4,015 | | | | 4,289,745 | |
| | |
| 54 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Great Lakes Water Authority
(Great Lakes Water Authority Water Supply System)
Series 2016B
5.00%, 7/01/46 | | $ | 10,000 | | | $ | 10,560,300 | |
Series 2016D
5.00%, 7/01/36 | | | 8,500 | | | | 9,065,675 | |
Michigan Finance Authority
(City of Detroit MI Sewage Disposal System Revenue)
Series 2014C-1
5.00%, 7/01/44 | | | 11,970 | | | | 12,678,744 | |
Michigan Finance Authority
(City of Detroit MI Water Supply System Revenue)
Series 2014D-4
5.00%, 7/01/29 | | | 1,400 | | | | 1,538,600 | |
Michigan Finance Authority
(Great Lakes Water Authority Sewage Disposal System)
Series 2014C-2
5.00%, 7/01/44 | | | 2,000 | | | | 2,063,660 | |
Series 2014C-6
5.00%, 7/01/33 | | | 2,750 | | | | 2,974,702 | |
Michigan Finance Authority
(Great Lakes Water Authority Water Supply System)
Series 2014D-4
5.00%, 7/01/30 | | | 1,000 | | | | 1,093,430 | |
Michigan Finance Authority
(Public Lighting Authority)
Series 2014B
5.00%, 7/01/39 | | | 13,580 | | | | 14,477,502 | |
Michigan Strategic Fund
(Canterbury Health Care, Inc. Obligated Group)
Series 2016
5.00%, 7/01/46-7/01/51(a) | | | 3,785 | | | | 3,253,601 | |
Michigan Strategic Fund
(Detroit Renewable Energy Obligated Group)
Series 2013
8.50%, 12/01/30(a) | | | 10,490 | | | | 10,789,070 | |
Series 2014
9.00%, 12/01/25 | | | 6,540 | | | | 6,989,233 | |
Series 2016
9.00%, 12/01/25(a)(g)(i) | | | 2,890 | | | | 2,286,452 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 55 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Michigan Strategic Fund
(Evangelical Homes of Michigan Obligated Group)
Series 2013
5.50%, 6/01/47 | | $ | 1,750 | | | $ | 1,817,025 | |
Michigan Tobacco Settlement Finance Authority
Series 2007A
6.00%, 6/01/48 | | | 23,470 | | | | 20,661,814 | |
Waterford Township Economic Development Corp
(Canterbury Health Care, Inc. Obligated Group)
Series 2016A
5.00%, 7/01/46-7/01/51(a) | | | 4,940 | | | | 4,237,699 | |
| | | | | | | | |
| | | | | | | 127,850,577 | |
| | | | | | | | |
Minnesota – 0.2% | | | | | | | | |
City of St Louis Park MN
Series 2009
5.75%, 7/01/39 | | | 3,000 | | | | 3,318,900 | |
Housing & Redevelopment Authority of The City of St Paul Minnesota
(HealthEast Obligated Group)
Series 2015A
5.00%, 11/15/44 | | | 1,000 | | | | 1,050,740 | |
| | | | | | | | |
| | | | | | | 4,369,640 | |
| | | | | | | | |
Mississippi – 0.3% | | | | | | | | |
Mississippi Hospital Equipment & Facilities Authority
(Baptist Memorial Health Care Obligated Group)
Series 2016A
5.00%, 9/01/36 | | | 6,400 | | | | 6,863,616 | |
| | | | | | | | |
| | |
Missouri – 1.2% | | | | | | | | |
Health & Educational Facilities Authority of the State of Missouri
(Lutheran Senior Services Obligated Group)
Series 2010
5.50%, 2/01/42 | | | 1,520 | | | | 1,580,937 | |
Series 2011
6.00%, 2/01/41 | | | 1,750 | | | | 1,891,715 | |
Kansas City Industrial Development Authority
(Kansas City Industrial Development Authority Sales Tax)
Series 2016A
5.00%, 4/01/36-4/01/46(a) | | | 2,150 | | | | 1,897,723 | |
| | |
| 56 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Kansas City Industrial Development Authority
(Kingswood Senior Living Community)
Series 2016
6.00%, 11/15/51(a) | | $ | 8,000 | | | $ | 7,481,280 | |
Lees Summit Industrial Development Authority
(John Knox Village Obligated Group)
Series 2016A
5.00%, 8/15/46-8/15/51 | | | 10,000 | | | | 9,546,229 | |
Missouri State Environmental Improvement & Energy Resources Authority
(Union Electric Co.)
NATL Series 1998A
1.46%, 9/01/33(h) | | | 8,000 | | | | 7,231,256 | |
| | | | | | | | |
| | | | | | | 29,629,140 | |
| | | | | | | | |
Montana – 0.1% | | | | | | | | |
Montana Facility Finance Authority
(Benefis Health System Obligated Group)
5.00%, 2/15/41 | | | 1,420 | | | | 1,509,701 | |
| | | | | | | | |
| | |
Nebraska – 1.0% | | | | | | | | |
Central Plains Energy Project
(Goldman Sachs Group, Inc. (The))
Series 2012
5.00%, 9/01/32-9/01/42 | | | 17,050 | | | | 18,077,687 | |
5.25%, 9/01/37 | | | 1,500 | | | | 1,613,520 | |
Douglas County Hospital Authority No 2
(Madonna Rehabilitation Hospital)
Series 2014
5.00%, 5/15/44 | | | 4,015 | | | | 4,156,087 | |
| | | | | | | | |
| | | | | | | 23,847,294 | |
| | | | | | | | |
Nevada – 0.3% | | | | | | | | |
City of Reno NV
Series 2007A
5.25%, 6/01/41 | | | 4,730 | | | | 4,828,242 | |
Las Vegas Redevelopment Agency
Series 2016
5.00%, 6/15/45 | | | 3,000 | | | | 3,218,490 | |
| | | | | | | | |
| | | | | | | 8,046,732 | |
| | | | | | | | |
New Hampshire – 0.4% | | | | | | | | |
New Hampshire Health and Education Facilities Authority Act
(Southern New Hampshire University)
Series 2012
5.00%, 1/01/42 | | | 4,585 | | | | 4,966,243 | |
Series 2016
5.00%, 1/01/41-1/01/46 | | | 5,460 | | | | 5,932,786 | |
| | | | | | | | |
| | | | | | | 10,899,029 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 57 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New Jersey – 5.6% | | | | | | | | |
City of Bayonne NJ
BAM Series 2016
5.00%, 7/01/39 | | $ | 2,500 | | | $ | 2,711,625 | |
New Jersey Economic Development Authority
(New Jersey Economic Development Authority State Lease)
Series 2014U
5.00%, 6/15/40 | | | 8,500 | | | | 8,552,870 | |
Series 2015W
5.25%, 6/15/40 | | | 5,000 | | | | 5,162,950 | |
New Jersey Economic Development Authority
(NYNJ Link Borrower LLC)
Series 2013
5.125%, 1/01/34 | | | 9,780 | | | | 10,433,011 | |
New Jersey Economic Development Authority
(UMM Energy Partners LLC)
Series 2012A
5.125%, 6/15/43 | | | 7,515 | | | | 7,746,237 | |
New Jersey Economic Development Authority (United Airlines, Inc.)
Series 1999
4.875%, 9/15/19 | | | 965 | | | | 1,012,632 | |
5.25%, 9/15/29 | | | 4,140 | | | | 4,389,890 | |
Series 2000B
5.625%, 11/15/30 | | | 4,525 | | | | 5,026,506 | |
New Jersey Health Care Facilities Financing Authority
Series 2008
6.625%, 7/01/38 | | | 1,500 | | | | 1,624,380 | |
New Jersey Health Care Facilities Financing Authority
(Holy Name Medical Center, Inc.)
Series 2010
5.00%, 7/01/25 | | | 5,240 | | | | 5,658,833 | |
New Jersey Health Care Facilities Financing Authority
(Trinitas Regional Medical Center)
Series 2007A
5.25%, 7/01/30 | | | 2,000 | | | | 2,019,820 | |
New Jersey Transportation Trust Fund Authority
(New Jersey Transportation Fed Hwy Grant)
Series 2016
5.00%, 6/15/28 | | | 6,215 | | | | 6,537,186 | |
| | |
| 58 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New Jersey Turnpike Authority
Series 2012B
5.00%, 1/01/30 | | $ | 9,360 | | | $ | 10,413,936 | |
Series 2015E
5.00%, 1/01/45 | | | 18,000 | | | | 19,411,020 | |
South Jersey Transportation Authority LLC
Series 2014A
5.00%, 11/01/39 | | | 7,765 | | | | 8,120,404 | |
Tobacco Settlement Financing Corp./NJ
Series 2007-1A
5.00%, 6/01/41 | | | 45,910 | | | | 38,863,274 | |
| | | | | | | | |
| | | | | | | 137,684,574 | |
| | | | | | | | |
New Mexico – 0.7% | | | | | | | | |
New Mexico Hospital Equipment Loan Council
(Gerald Champion Regional Medical Center)
Series 2012
5.50%, 7/01/42 | | | 8,155 | | | | 8,664,117 | |
New Mexico Hospital Equipment Loan Council
(Presbyterian Healthcare Services Obligated
Group)
Series 2012A
5.00%, 8/01/42 | | | 7,000 | | | | 7,688,590 | |
| | | | | | | | |
| | | | | | | 16,352,707 | |
| | | | | | | | |
New York – 9.1% | | | | | | | | |
Build NYC Resource Corp.
(Metropolitan College of New York)
Series 2014
5.00%, 11/01/39 | | | 6,950 | | | | 6,865,627 | |
5.50%, 11/01/44 | | | 2,875 | | | | 2,941,384 | |
City of Newburgh NY
Series 2012A
5.25%, 6/15/27 | | | 1,010 | | | | 1,105,031 | |
5.625%, 6/15/34 | | | 1,235 | | | | 1,336,171 | |
Jefferson County Industrial Development Agency
(ReEnergy Black River LLC)
Series 2015
12.00%, 1/01/22(b) | | | 5,000 | | | | 4,971,100 | |
Metropolitan Transportation Authority
Series 2015A
5.00%, 11/15/45 | | | 4,830 | | | | 5,223,500 | |
Series 2016C
5.00%, 11/15/36 | | | 5,000 | | | | 5,523,450 | |
AGM Series 2016B
5.00%, 11/15/33-11/15/35 | | | 20,220 | | | | 22,449,251 | |
Metropolitan Trnsp Auth NY
(Metro Trnsp Auth NY Ded Tax)
5.00%, 11/15/31(e) | | | 10,740 | | | | 12,077,130 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 59 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Nassau County Industrial Development Agency
(Amsterdam House Continuing Care Retirement Community, Inc.)
Series 2014A
5.875%, 1/01/23 | | $ | 1,121 | | | $ | 1,140,345 | |
6.50%, 1/01/32 | | | 1,399 | | | | 1,406,261 | |
6.70%, 1/01/49 | | | 5,999 | | | | 5,898,414 | |
Series 2014B
5.50%, 7/01/20 | | | 703 | | | | 709,730 | |
Series 2014C
2.00%, 1/01/49(c)(d)(f) | | | 1,933 | | | | 328,612 | |
New York City Municipal Water Finance Authority
Series 2013D
5.00%, 6/15/34(e) | | | 10,000 | | | | 11,196,500 | |
New York City NY Transitional
5.00%, 11/01/28-2/01/32(e) | | | 18,640 | | | | 21,017,354 | |
New York Liberty Development Corp.
(7 World Trade Center II LLC)
Series 2012
5.00%, 3/15/44 | | | 1,900 | | | | 2,048,504 | |
New York NY GO
Series 2013A-1
5.00%, 10/01/28(e) | | | 9,500 | | | | 10,790,100 | |
New York NY Transitional Fin Auth
Series 2011D-1
5.00%, 2/01/26(e) | | | 10,000 | | | | 11,089,100 | |
New York State Energy Research & Development Authority
(Brooklyn Union Gas Co. (The))
NATL Series 1997A-1
0.963%, 12/01/20(h) | | | 2,000 | | | | 1,881,100 | |
New York State Energy Research & Development Authority
(Consolidated Edison Co. of New York, Inc.)
XLCA Series 2004A
1.295%, 1/01/39(h) | | | 11,025 | | | | 10,056,399 | |
New York Transportation Development Corp.
(Laguardia Gateway Partners LLC)
Series 2016A
5.00%, 7/01/41 | | | 22,110 | | | | 22,527,658 | |
5.25%, 1/01/50 | | | 8,000 | | | | 8,205,600 | |
Onondaga Civic Development Corp.
Series 2012
5.00%, 7/01/42 | | | 3,765 | | | | 4,332,009 | |
| | |
| 60 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Orange County Funding Corp.
(The Hamlet at Wallkill)
Series 2013
6.50%, 1/01/46 | | $ | 6,375 | | | $ | 5,995,815 | |
Port Authority of New York & New Jersey
Series 2012
5.00%, 10/01/33 | | | 5,000 | | | | 5,511,600 | |
Port Authority of New York & New Jersey
(Delta Air Lines, Inc.)
Series 2010
6.00%, 12/01/42 | | | 2,285 | | | | 2,580,336 | |
Triborough Bridge & Tunnel Authority
Series 2012B
5.00%, 11/15/28-11/15/29(e) | | | 11,175 | | | | 12,737,735 | |
Ulster County Capital Resource Corp.
(Kingston Regional Senior Living Corp.)
Series 2014A
7.50%, 9/15/44(a)(g) | | | 2,025 | | | | 1,753,508 | |
Series 2014B
7.00%, 9/15/44(a) | | | 2,350 | | | | 2,377,683 | |
Ulster County Industrial Development Agency
(Kingston Regional Senior Living Corp.)
Series 2007A
6.00%, 9/15/27-9/15/37 | | | 10,380 | | | | 10,085,082 | |
Westchester County Local Development Corp.
(Westchester County Health Care Corp. Obligated Group)
Series 2016
5.00%, 11/01/46 | | | 10,000 | | | | 10,237,800 | |
| | | | | | | | |
| | | | | | | 226,399,889 | |
| | | | | | | | |
North Carolina – 0.1% | | | | | | | | |
North Carolina Medical Care Commission
(Aldersgate United Methodist Retirement Community, Inc.)
Series 2015
5.00%, 7/01/45 | | | 1,325 | | | | 1,337,826 | |
North Carolina Medical Care Commission
(Pennybyrn at Maryfield)
Series 2015
5.00%, 10/01/35 | | | 1,625 | | | | 1,687,741 | |
| | | | | | | | |
| | | | | | | 3,025,567 | |
| | | | | | | | |
North Dakota – 0.2% | | | | | | | | |
County of Burleigh ND
Series 2014A
5.00%, 7/01/35 | | | 4,120 | | | | 4,643,982 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 61 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Ohio – 3.4% | | | | | | | | |
Buckeye Tobacco Settlement Financing Authority
Series 2007A-2
5.875%, 6/01/47 | | $ | 44,080 | | | $ | 37,094,643 | |
County of Franklin OH
(First Community Village Obligated Group)
Series 2013
5.625%, 7/01/47 | | | 11,835 | | | | 10,846,186 | |
County of Hamilton OH
(Life Enriching Communities Obligated Group)
Series 2012
5.00%, 1/01/42 | | | 1,000 | | | | 1,013,020 | |
Dayton-Montgomery County Port Authority
(StoryPoint Troy Project)
Series 2015-1
7.00%, 1/15/40 | | | 5,265 | | | | 5,083,621 | |
7.125%, 1/15/50 | | | 1,560 | | | | 1,499,659 | |
Ohio Air Quality Development Authority
(FirstEnergy Generation LLC)
Series 2009D
4.25%, 8/01/29 | | | 12,525 | | | | 11,467,514 | |
Ohio Air Quality Development Authority
(FirstEnergy Nuclear Generation LLC)
Series 2009A
4.375%, 6/01/33 | | | 2,730 | | | | 2,493,664 | |
Ohio Water Development Authority Water Pollution Control Loan Fund
(FirstEnergy Nuclear Generation LLC)
Series 2016A
4.375%, 6/01/33 | | | 1,510 | | | | 1,379,279 | |
State of Ohio
(Portsmouth Gateway Group LLC)
Series 2015
5.00%, 6/30/53 | | | 11,000 | | | | 11,276,980 | |
Toledo-Lucas County Port Authority
(StoryPoint Obligated Group)
Series 2016
6.375%, 1/15/51(a) | | | 1,000 | | | | 928,880 | |
| | | | | | | | |
| | | | | | | 83,083,446 | |
| | | | | | | | |
Oklahoma – 0.3% | | | | | | | | |
Oklahoma Development Finance Authority
(Inverness Village an Oklahoma not for Profit Corp.)
Series 2012
5.75%, 1/01/27 | | | 2,930 | | | | 2,990,446 | |
| | |
| 62 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Tulsa Airports Improvement Trust
(American Airlines, Inc.)
Series 2013A
5.50%, 6/01/35 | | $ | 3,875 | | | $ | 4,070,920 | |
| | | | | | | | |
| | | | | | | 7,061,366 | |
| | | | | | | | |
Oregon – 1.1% | | | | | | | | |
Deschutes County Hospital Facilities Authority
(St Charles Health Systems, Inc.)
Series 2016A
5.00%, 1/01/48 | | | 5,000 | | | | 5,306,800 | |
Hospital Facilities Authority of Multnomah County Oregon
(Mirabella at South Waterfront)
Series 2014A
5.40%, 10/01/44 | | | 2,750 | | | | 2,937,660 | |
5.50%, 10/01/49 | | | 5,650 | | | | 6,053,297 | |
Klamath Falls Intercommunity Hospital Authority
(Sky Lakes Medical Center, Inc.)
Series 2016
5.00%, 9/01/46 | | | 1,000 | | | | 1,057,600 | |
Oregon St Dept of Transportation
Series 2013A
5.00%, 11/15/29-11/15/30(e) | | | 10,000 | | | | 11,615,700 | |
| | | | | | | | |
| | | | | | | 26,971,057 | |
| | | | | | | | |
Pennsylvania – 4.4% | | | | | | | | |
Centre County Hospital Authority
(Mount Nittany Medical Center Obligated Group)
Series 2016A
5.00%, 11/15/46 | | | 1,250 | | | | 1,360,838 | |
Commonwealth of Pennsylvania
Series 2011
5.00%, 11/15/29(e) | | | 10,000 | | | | 11,299,900 | |
Crawford County Hospital Authority
(Meadville Medical Center Obligated Group)
Series 2016A
6.00%, 6/01/46-6/01/51 | | | 6,390 | | | | 6,112,824 | |
Cumberland County Municipal Authority
(Asbury Pennsylvania Obligated Group)
Series 2010
6.125%, 1/01/45 | | | 4,170 | | | | 4,384,213 | |
Series 2012
5.25%, 1/01/32-1/01/41 | | | 3,720 | | | | 3,862,892 | |
Lehigh County General Purpose Authority
(Good Shepherd Obligated Group (The))
Series 2016
4.00%, 11/01/46 | | | 2,500 | | | | 2,378,400 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 63 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Montgomery County Industrial Development Authority/PA
(Philadelphia Presbytery Homes, Inc.)
Series 2010
6.50%, 12/01/25 | | $ | 4,000 | | | $ | 4,568,520 | |
Montgomery County Industrial Development Authority/PA
(Whitemarsh Continuing Care Retirement Community)
Series 2015
5.375%, 1/01/50 | | | 3,000 | | | | 2,838,450 | |
Moon Industrial Development Authority
(Baptist Home Society Obligated Group)
Series 2015
6.00%, 7/01/45 | | | 18,125 | | | | 19,092,512 | |
Norristown Area School District COP
Series 2012
5.00%, 4/01/32 | | | 3,900 | | | | 4,049,097 | |
Northeastern Pennsylvania Hospital & Education Authority
(Wilkes University)
Series 2012A
5.25%, 3/01/42 | | | 2,135 | | | | 2,254,347 | |
Pennsylvania Economic Development Financing Authority
(National Railroad Passenger Corp. (The))
Series 2012A
5.00%, 11/01/41 | | | 3,620 | | | | 3,837,924 | |
Pennsylvania Economic Development Financing Authority
(PA Bridges Finco LP)
Series 2015
5.00%, 12/31/34-6/30/42 | | | 11,930 | | | | 12,210,213 | |
Philadelphia Authority for Industrial Development
(Greater Philadelphia Health Action, Inc.) Series 2015A
6.375%, 6/01/40 | | | 1,300 | | | | 1,277,484 | |
6.50%, 6/01/45 | | | 2,390 | | | | 2,368,538 | |
6.625%, 6/01/50 | | | 4,150 | | | | 4,151,287 | |
Scranton-Lackawanna Health & Welfare Authority
(Scranton Parking System Concession Project)
Series 2016A
5.00%, 1/01/51-1/01/57(a) | | | 12,395 | | | | 12,119,526 | |
Series 2016B
6.08%, 1/01/26(a) | | | 1,090 | | | | 1,061,409 | |
| | |
| 64 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Series 2016C
Zero Coupon, 1/01/36(a) | | $ | 3,010 | | | $ | 971,146 | |
Series 2016D
Zero Coupon, 1/01/57(a) | | | 62,965 | | | | 3,586,486 | |
State Public School Building Authority
(Harrisburg School District)
AGM Series 2016A
5.00%, 12/01/29 | | | 5,635 | | | | 6,247,074 | |
| | | | | | | | |
| | | | | | | 110,033,080 | |
| | | | | | | | |
Puerto Rico – 0.5% | | | | | | | | |
Puerto Rico Industrial Tourist Educational Medical & Envirml Ctl Facs Fing Auth
(AES Puerto Rico LP)
Series 2000
6.625%, 6/01/26 | | | 11,205 | | | | 10,672,763 | |
Puerto Rico Industrial Tourist Educational Medical & Envirml Ctl Facs Fing Auth
(Sistema Universitario Ana G Mendez Incorporado)
Series 2012
5.375%, 4/01/42 | | | 1,665 | | | | 1,505,526 | |
| | | | | | | | |
| | | | | | | 12,178,289 | |
| | | | | | | | |
Rhode Island – 0.7% | | | | | | | | |
Rhode Island Health & Educational Building Corp.
(Lifespan Obligated Group)
Series 2016
5.00%, 5/15/31-5/15/34 | | | 6,240 | | | | 6,685,300 | |
Rhode Island Health & Educational Building Corp.
(Tockwotton Home)
Series 2011
8.375%, 1/01/46 | | | 8,500 | | | | 9,693,655 | |
| | | | | | | | |
| | | | | | | 16,378,955 | |
| | | | | | | | |
Tennessee – 1.6% | | | | | | | | |
Bristol Industrial Development Board
(Bristol Industrial Development Board Sales Tax)
Series 2016A
5.125%, 12/01/42(a) | | | 15,000 | | | | 13,300,950 | |
Chattanooga Health Educational & Housing
Facility Board
(Catholic Health Initiatives)
Series 2013
5.25%, 1/01/45 | | | 4,850 | | | | 5,208,949 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 65 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Johnson City Health & Educational Facilities Board
(Mountain States Health Alliance Obligated Group)
Series 2012
5.00%, 8/15/42 | | $ | 2,455 | | | $ | 2,585,164 | |
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd
(Vanderbilt University Medical Center)
Series 2016
5.00%, 7/01/46 | | | 5,650 | | | | 6,012,221 | |
Shelby County Health Educational & Housing Facilities Board
(Village at Germantown, Inc. (The))
Series 2012
5.00%, 12/01/32 | | | 2,200 | | | | 2,134,022 | |
5.25%, 12/01/42 | | | 5,700 | | | | 5,481,291 | |
5.375%, 12/01/47 | | | 1,700 | | | | 1,648,881 | |
Series 2014
5.25%, 12/01/44-12/01/49 | | | 4,325 | | | | 4,109,142 | |
| | | | | | | | |
| | | | | | | 40,480,620 | |
| | | | | | | | |
Texas – 11.3% | | | | | | | | |
Arlington Higher Education Finance Corp.
(Uplift Education)
Series 2016A
5.00%, 12/01/46 | | | 2,175 | | | | 2,233,507 | |
Arlington Higher Education Finance Corp.
(Wayside Schools)
Series 2016A
4.625%, 8/15/46 | | | 2,120 | | | | 1,948,471 | |
Austin Convention Enterprises, Inc.
Series 2006B
6.00%, 1/01/20(a) | | | 1,195 | | | | 1,197,008 | |
Board of Managers Joint Guadalupe County-City of Seguin Hospital
Series 2015
5.00%, 12/01/40-12/01/45 | | | 6,425 | | | | 6,447,469 | |
5.25%, 12/01/35 | | | 1,200 | | | | 1,253,292 | |
Central Texas Regional Mobility Authority
Series 2011
6.00%, 1/01/41 | | | 5,600 | | | | 6,471,752 | |
Series 2015A
5.00%, 1/01/35-1/01/45 | | | 24,030 | | | | 25,504,353 | |
Series 2016
5.00%, 1/01/46 | | | 15,475 | | | | 16,304,924 | |
City of Houston TX
(City of Houston TX Hotel Occupancy Tax)
Series 2015
5.00%, 9/01/40 | | | 4,715 | | | | 5,087,721 | |
| | |
| 66 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
City of Houston TX Airport System Revenue
(United Airlines, Inc.)
Series 2014
5.00%, 7/01/29 | | $ | 12,845 | | | $ | 13,624,691 | |
Series 2015B
5.00%, 7/15/30-7/15/35 | | | 4,655 | | | | 4,893,685 | |
Clifton Higher Education Finance Corp.
(IDEA Public Schools)
Series 2011
5.75%, 8/15/41 | | | 1,000 | | | | 1,083,850 | |
Series 2012
5.00%, 8/15/32-8/15/42 | | | 6,470 | | | | 6,805,485 | |
Series 2013
6.00%, 8/15/43 | | | 1,000 | | | | 1,099,740 | |
County of Harris TX
(County of Harris TX Toll Road)
Series 2016A
5.00%, 8/15/41-8/15/47 | | | 10,000 | | | | 11,071,040 | |
Dallas County Flood Control District No 1
Series 2015
5.00%, 4/01/32(a) | | | 2,000 | | | | 2,000,940 | |
Dallas/Fort Worth International Airport
Series 2013A
5.00%, 11/01/29 | | | 5,155 | | | | 5,673,851 | |
Decatur Hospital Authority
(Wise Regional Health System)
Series 2014A
5.25%, 9/01/44 | | | 6,300 | | | | 6,480,999 | |
Grand Parkway Transportation Corp.
Series 2013B
5.00%, 4/01/53 | | | 5,100 | | | | 5,612,448 | |
Houston TX Util Sys
Series 2011D
5.00%, 11/15/28(e) | | | 9,600 | | | | 10,838,304 | |
Kerrville Health Facilities Development Corp.
(Sid Peterson Memorial Hospital)
Series 2015
5.00%, 8/15/35 | | | 1,800 | | | | 1,879,866 | |
Mesquite Health Facility Development Corp.
(Christian Care Centers, Inc.)
Series 2014
5.125%, 2/15/42 | | | 2,000 | | | | 2,045,120 | |
Mission Economic Development Corp.
(Natgasoline LLC)
Series 2016B
5.75%, 10/01/31(a) | | | 6,985 | | | | 7,307,428 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 67 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New Hope Cultural Education Facilities Finance Corp.
(Carillon, Inc.)
Series 2016
5.00%, 7/01/36-7/01/46 | | $ | 6,150 | | | $ | 5,837,710 | |
New Hope Cultural Education Facilities Finance Corp.
(Legacy at Willow Bend Retirement Community, Inc. (The))
Series 2016
5.00%, 11/01/46 | | | 2,900 | | | | 2,947,444 | |
New Hope Cultural Education Facilities Finance Corp.
(MRC Crestview)
Series 2016
5.00%, 11/15/46 | | | 1,850 | | | | 1,761,755 | |
New Hope Cultural Education Facilities Finance Corp.
(The Langford at College Station)
Series 2016A
5.375%, 11/15/36 | | | 500 | | | | 457,940 | |
5.50%, 11/15/46-11/15/52 | | | 2,150 | | | | 1,913,948 | |
New Hope Cultural Education Facilities Finance Corp.
(Wesleyan Homes, Inc.)
Series 2014
5.50%, 1/01/49 | | | 3,100 | | | | 3,105,859 | |
New Hope Cultural Education Facilities Finance Corp.
(Westminster Manor)
Series 2016
5.00%, 11/01/40 | | | 1,000 | | | | 1,012,430 | |
North East Texas Regional Mobility Authority
Series 2016
5.00%, 1/01/41-1/01/46 | | | 15,250 | | | | 16,078,060 | |
North Texas Education Finance Corp.
(Uplift Education)
Series 2012A
5.125%, 12/01/42 | | | 9,860 | | | | 10,268,697 | |
North Texas Tollway Authority
Series 2015A
5.00%, 1/01/38 | | | 5,000 | | | | 5,471,800 | |
Red River Education Finance Corp.
(St Edward’s University, Inc.)
Series 2016
5.00%, 6/01/46 | | | 2,000 | | | | 2,095,420 | |
| | |
| 68 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Red River Health Facilities Development Corp.
(MRC Crossings Proj)
Series 2014A
7.75%, 11/15/44 | | $ | 2,000 | | | $ | 2,238,620 | |
Red River Health Facilities Development Corp.
(Wichita Falls Retirement Foundation)
Series 2012
5.125%, 1/01/41 | | | 4,360 | | | | 4,466,297 | |
Sanger Industrial Development Corp.
(Texas Pellets, Inc.)
Series 2012B
8.00%, 7/01/38(b) | | | 5,720 | | | | 2,574,000 | |
Tarrant County Cultural Education Facilities Finance Corp.
Series 2010
8.125%, 11/15/44 | | | 5,000 | | | | 6,183,800 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Baylor Scott & White Health Obligated Group)
Series 2016A
5.00%, 11/15/45 | | | 2,000 | | | | 2,154,340 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Buckingham Senior Living Community, Inc.)
Series 2007
5.50%, 11/15/22 | | | 4,000 | | | | 4,099,880 | |
Series 2014
5.625%, 11/15/41 | | | 3,250 | | | | 3,418,707 | |
Series 2015I
5.50%, 11/15/45 | | | 1,880 | | | | 1,964,995 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Stayton at Museum Way)
Series 2009A
8.00%, 11/15/28 | | | 2,000 | | | | 2,140,840 | |
8.25%, 11/15/44 | | | 10,700 | | | | 11,417,542 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Trinity Terrace Project)
Series 2014A-1
5.00%, 10/01/44-10/01/49 | | | 3,960 | | | | 4,002,355 | |
Texas Private Activity Bond Surface Transportation Corp.
(Blueridge Transportation Group LLC)
2016
5.00%, 12/31/45 | | | 1,000 | | | | 1,020,430 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 69 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Series 2016
5.00%, 12/31/50 | | $ | 3,500 | | | $ | 3,550,855 | |
Texas Private Activity Bond Surface Transportation Corp.
(LBJ Infrastructure Group LLC)
Series 2010
7.00%, 6/30/40 | | | 7,810 | | | | 8,928,080 | |
Texas Private Activity Bond Surface Transportation Corp.
(NTE Mobility Partners LLC)
Series 2009
6.875%, 12/31/39 | | | 6,450 | | | | 7,328,554 | |
Travis County Cultural Education Facilities Finance Corp.
(Wayside Schools)
Series 2012A
5.00%, 8/15/27 | | | 500 | | | | 522,705 | |
5.25%, 8/15/42 | | | 2,375 | | | | 2,422,262 | |
Travis County Health Facilities Development Corp.
(Longhorn Village)
Series 2012A
7.00%, 1/01/32 | | | 8,155 | | | | 8,940,490 | |
7.125%, 1/01/46 | | | 860 | | | | 937,434 | |
Viridian Municipal Management District
Series 2011
9.00%, 12/01/37 | | | 3,000 | | | | 3,943,920 | |
| | | | | | | | |
| | | | | | | 280,073,113 | |
| | | | | | | | |
Utah – 0.5% | | | | | | | | |
Timber Lakes Water Special Service District
Series 2011
8.125%, 6/15/31 | | | 3,565 | | | | 3,753,410 | |
Utah Charter School Finance Authority
Series 2010
8.25%, 7/15/46 | | | 2,000 | | | | 2,259,000 | |
Utah Charter School Finance Authority
(Early Light Academy, Inc.)
Series 2010
8.50%, 7/15/46 | | | 2,000 | | | | 2,192,700 | |
Utah Charter School Finance Authority
(North Star Academy)
Series 2010A
7.00%, 7/15/45 | | | 1,840 | | | | 1,983,998 | |
Utah Charter School Finance Authority
(Vista at Entrada School of Performing Arts & Technology)
Series 2012
6.30%, 7/15/32 | | | 850 | | | | 882,802 | |
6.55%, 7/15/42 | | | 1,890 | | | | 1,946,001 | |
| | | | | | | | |
| | | | | | | 13,017,911 | |
| | | | | | | | |
| | |
| 70 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Vermont – 0.1% | | | | | | | | |
Vermont Economic Development Authority
(Wake Robin Corp.)
Series 2012
5.40%, 5/01/33 | | $ | 3,100 | | | $ | 3,284,233 | |
| | | | | | | | |
| | |
Virginia – 4.4% | | | | | | | | |
Chesapeake Bay Bridge & Tunnel District
5.00%, 7/01/46 | | | 1,750 | | | | 1,860,775 | |
Chesterfield County Economic Development Authority
(Brandermill Woods)
Series 2012
5.125%, 1/01/43 | | | 1,970 | | | | 1,988,735 | |
City of Chesapeake VA Chesapeake Expressway Toll Road Revenue
Series 2012A
5.00%, 7/15/47 | | | 4,600 | | | | 4,796,098 | |
Fairfax County Economic Development Authority
(Goodwin House, Inc.)
Series 2016
5.00%, 10/01/42 | | | 1,000 | | | | 1,053,080 | |
Fairfax County Economic Development Authority
(Vinson Hall LLC)
Series 2013A
5.00%, 12/01/42-12/01/47 | | | 6,520 | | | | 6,573,538 | |
Mosaic District Community Development Authority
Series 2011A
6.875%, 3/01/36 | | | 2,915 | | | | 3,208,715 | |
Prince William County Industrial Development Authority
(Westminster at Lake Ridge)
Series 2016
5.00%, 1/01/46(i) | | | 3,500 | | | | 3,315,305 | |
Tobacco Settlement Financing Corp./VA
Series 2007B-1
5.00%, 6/01/47 | | | 40,835 | | | | 32,933,836 | |
Virginia College Bldg Auth
(Virginia Lease 21st Century College Prog)
Series 2013A
5.00%, 2/01/28(e) | | | 9,200 | | | | 10,487,448 | |
Virginia College Building Authority
(Marymount University)
Series 2015A
5.00%, 7/01/35-7/01/45(a) | | | 4,310 | | | | 3,993,869 | |
Series 2015B
5.00%, 7/01/45(a) | | | 4,000 | | | | 3,675,680 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 71 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Virginia Commonwealth Transp Brd Tr
Series 2011
5.00%, 5/15/26(e) | | $ | 8,275 | | | $ | 9,385,919 | |
Virginia Small Business Financing Authority
(Elizabeth River Crossings OpCo LLC)
Series 2012
5.25%, 1/01/32 | | | 6,240 | | | | 6,638,112 | |
5.50%, 1/01/42 | | | 17,045 | | | | 18,135,198 | |
| | | | | | | | |
| | | | | | | 108,046,308 | |
| | | | | | | | |
Washington – 4.1% | | | | | | | | |
King County Public Hospital District No 4
Series 2015A
5.00%, 12/01/38 | | | 5,700 | | | | 5,284,128 | |
Seattle WA Mun Light & Pwr
Series 2011A
5.00%, 2/01/26(e) | | | 7,500 | | | | 8,364,150 | |
Washington Health Care Facilities Authority
Series 2012
5.00%, 12/01/42 | | | 9,390 | | | | 10,702,065 | |
Washington Health Care Facilities Authority
(Catholic Health Initiatives)
Series 2013A
5.25%, 1/01/40 | | | 3,355 | | | | 3,625,916 | |
Washington Health Care Facilities Authority
(Multicare Health System Obligated Group)
Series 2012A
5.00%, 8/15/44 | | | 4,000 | | | | 4,279,440 | |
Washington Health Care Facilities Authority
(Providence Health & Services Obligated Group)
Series 2012A
5.00%, 10/01/42 | | | 11,850 | | | | 12,713,865 | |
Washington Higher Education Facilities Authority
(Whitworth University)
Series 2012
5.25%, 10/01/46 | | | 3,250 | | | | 3,518,905 | |
Washington St GO
5.00%, 7/01/24(e) | | | 5,000 | | | | 5,556,600 | |
Series 2011B
5.00%, 7/01/25(e) | | | 10,000 | | | | 11,105,901 | |
Washington State Housing Finance Commission
(Mirabella)
Series 2012A
6.75%, 10/01/47 | | | 18,350 | | | | 19,770,841 | |
| | |
| 72 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Washington State Housing Finance Commission
(Presbyterian Retirement Communities Northwest Obligated Group)
Series 2016A
5.00%, 1/01/46-1/01/51(a) | | $ | 6,900 | | | $ | 6,526,530 | |
Washington State Housing Finance Commission
(Riverview Retirement Community Obligated Group)
Series 2012
5.00%, 1/01/48 | | | 5,315 | | | | 5,367,459 | |
Washington State Housing Finance Commission
(Rockwood Retirement Communities)
Series 2014A
7.375%, 1/01/44(a) | | | 4,185 | | | | 4,649,744 | |
| | | | | | | | |
| | | | | | | 101,465,544 | |
| | | | | | | | |
West Virginia – 0.6% | | | | | | | | |
West Virginia Economic Development Authority
(Morgantown Energy Associates)
Series 2016
2.875%, 12/15/26 | | | 6,340 | | | | 5,859,745 | |
West Virginia Hospital Finance Authority
(West Virginia United Health System Obligated Group)
AGM Series 2004C
1.085%, 2/15/34(h) | | | 1,950 | | | | 1,718,340 | |
West Virginia Hospital Finance Authority
(West Virginia United Health System, Inc.)
Series 2013A
5.50%, 6/01/44 | | | 7,050 | | | | 7,823,244 | |
| | | | | | | | |
| | | | | | | 15,401,329 | |
| | | | | | | | |
Wisconsin – 1.5% | | | | | | | | |
Oneida Tribe of Indians of Wisconsin
(Oneida Tribe of Indians of Wisconsin Sales Tax)
Series 2011
6.50%, 2/01/31(a) | | | 435 | | | | 488,179 | |
University of Wisconsin Hospitals & Clinics
Series 2013A
5.00%, 4/01/38 | | | 6,485 | | | | 7,109,181 | |
Wisconsin Public Finance Authority
(Bancroft Neurohealth/Bancroft Rehabilitation Services Obligated Group)
Series 2016
5.125%, 6/01/48(a) | | | 4,310 | | | | 3,741,037 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 73 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Wisconsin Public Finance Authority
(Celanese US Holdings LLC)
Series 2016C
4.30%, 11/01/30 | | $ | 5,090 | | | $ | 5,074,017 | |
Series 2016D
4.05%, 11/01/30 | | | 1,780 | | | | 1,774,322 | |
Wisconsin Public Finance Authority
(Natgasoline LLC)
Series 2016
10.00%, 6/30/21(a) | | | 13,750 | | | | 13,316,325 | |
Wisconsin Public Finance Authority
(Rose Villa)
Series 2014A
5.75%, 11/15/44 | | | 1,100 | | | | 1,141,822 | |
6.00%, 11/15/49 | | | 1,500 | | | | 1,576,230 | |
Wisconsin Public Finance Authority
(Roseman University of Health Sciences)
Series 2015
5.875%, 4/01/45 | | | 1,740 | | | | 1,775,966 | |
Wisconsin Public Finance Authority
(Seabury Retirement Community)
Series 2015A
5.00%, 9/01/38(a) | | | 1,725 | | | | 1,658,535 | |
| | | | | | | | |
| | | | | | | 37,655,614 | |
| | | | | | | | |
Total Municipal Obligations
(cost $2,542,635,336) | | | | | | | 2,541,472,477 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
SHORT-TERM INVESTMENTS – 0.5% | | | | | | | | |
Investment Companies – 0.4% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.30%(j)(k)
(cost $10,554,719) | | | 10,554,719 | | | | 10,554,719 | |
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | | |
Corporates - Investment Grade – 0.1% | | | | | | | | |
Capital Goods – 0.1% | | | | | | | | |
Texas Pellets, Inc./German Pellets Texas LLC
8.00%, 12/31/16(l)
(cost $2,260,000) | | $ | 2,260 | | | | 2,258,440 | |
| | | | | | | | |
| | |
Total Short-Term Investments
(cost $12,814,719) | | | | | | | 12,813,159 | |
| | | | | | | | |
| | |
Total Investments – 103.1%
(cost $2,555,450,055) | | | | | | | 2,554,285,636 | |
Other assets less liabilities – (3.1)% | | | | | | | (76,010,238 | ) |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 2,478,275,398 | |
| | | | | | | | |
| | |
| 74 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
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 | | Unrealized
Appreciation/
(Depreciation) | |
Bank of America, NA | | $ | 41,500 | | | | 8/03/23 | | | 0.876% | | SIFMA* | | $ | 1,862,109 | |
| * | | Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index. |
| (a) | | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2016, the aggregate market value of these securities amounted to $178,019,866 or 7.2% of net assets. |
| (b) | | Restricted and illiquid security. |
| | | | | | | | | | | | | | | | |
| Restricted & Illiquid Securities | | Acquisition
Date | | | Cost | | | Market Value | | | Percentage of
Net Assets | |
California Municipal Finance Authority
(UTS Bioenergy LLC)
Series 2011A-1
7.50%, 12/01/32 | | | 12/22/11 | | | $ | 3,795,000 | | | $ | 2,733,463 | | | | 0.11 | % |
California School Finance Authority
(Tri-Valley Learning Corp.)
Series 2012A
7.00%, 6/01/47 | | | 9/07/12 | | | | 8,995,000 | | | | 5,397,000 | | | | 0.22 | % |
Capital Trust Agency, Inc.
(Million Air One LLC)
Series 2011
7.75%, 1/01/41 | | | 4/15/16 | | | | 14,977,665 | | | | 12,903,105 | | | | 0.52 | % |
Illinois Finance Authority
(Greenfields of Geneva)
Series 2010A
8.125%, 2/15/40 | | | 12/18/13 | | | | 3,800,307 | | | | 2,705,316 | | | | 0.11 | % |
Illinois Finance Authority
(Greenfields of Geneva)
Series 2010A
8.25%, 2/15/46 | | | 8/20/10 | | | | 1,928,653 | | | | 1,334,912 | | | | 0.05 | % |
Jefferson County Industrial Development Agency
(ReEnergy Black River LLC)
Series 2015
12.00%, 1/01/22 | | | 7/10/15 | | | | 5,000,000 | | | | 4,971,100 | | | | 0.20 | % |
Louisiana Public Facilities Authority
(Louisiana Pellets, Inc.)
Series 2014A
8.375%, 7/01/39 | | | 7/31/14 | | | | 17,000,000 | | | | 5,950,000 | | | | 0.24 | % |
Louisiana Public Facilities Authority
(Louisiana Pellets, Inc.)
Series 2013B
10.50%, 7/01/39 | | | 11/22/13 | | | | 7,250,000 | | | | 2,537,500 | | | | 0.10 | % |
Sanger Industrial Development Corp.
(Texas Pellets, Inc.)
Series 2012B
8.00%, 7/01/38 | | | 8/31/12 | | | | 5,720,000 | | | | 2,574,000 | | | | 0.10 | % |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 75 | |
AB High Income Municipal Portfolio—Portfolio of Investments
| (c) | | Non-income producing security. |
| (e) | | Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note I). |
| (g) | | Indicates a security that has a zero coupon that remains in effect until a predetermined date at which time the stated coupon rate becomes effective until final maturity. |
| (h) | | An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of November 30, 2016 and the aggregate market value of these securities amounted to $37,495,684 or 1.51% of net assets. |
| (i) | | When-Issued or delayed delivery security. |
| (j) | | Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end. |
| (k) | | To obtain a copy of the fund’s financial statements, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
| (l) | | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.09% of net assets as of November 30, 2016, are considered illiquid and restricted. Additional information regarding such securities follows: |
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market Value | | | Percentage of
Net Assets | |
Texas Pellets, Inc./German Pellets Texas LLC
8.00%, 12/31/16 | | | 6/15/16 | | | $ | 2,260,000 | | | $ | 2,258,440 | | | | 0.09 | % |
As of November 30, 2016, 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 3.2% and 0.0%, respectively.
Glossary:
AGM – Assured Guaranty Municipal
AMBAC – Ambac Assurance Corporation
BAM – Build American Mutual
COP – Certificate of Participation
GO – General Obligation
NATL – National Interstate Corporation
OSF – Order of St. Francis
XLCA – XL Capital Assurance Inc.
See notes to financial statements.
| | |
| 76 | | • AB MUNICIPAL INCOME FUND |
AB High Income Municipal Portfolio—Portfolio of Investments
AB NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 2016 (unaudited)
| | | | | | | | |
| | | Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
MUNICIPAL OBLIGATIONS – 99.9% | | | | | | | | |
Long-Term Municipal Bonds – 96.9% | | | | | | | | |
Alabama – 2.1% | | | | | | | | |
County of Jefferson AL
(County of Jefferson AL Sch Warrants)
Series 2004A
5.25%, 1/01/18-1/01/23 | | $ | 3,900 | | | $ | 3,938,268 | |
AGM Series 2004
5.50%, 1/01/21 | | | 1,000 | | | | 1,007,490 | |
Infirmary Health System Special Care Facilities Financing Authority of Mobile
Series 2016A
5.00%, 2/01/36 | | | 2,500 | | | | 2,662,325 | |
University of Alabama (The)
Series 2008A
5.75%, 9/01/22 (Pre-refunded/ETM) | | | 3,000 | | | | 3,230,880 | |
Water Works Board of the City of Birmingham (The)
Series 2011
5.00%, 1/01/31 (Pre-refunded/ETM) | | | 10,000 | | | | 11,209,100 | |
Series 2015A
5.00%, 1/01/33-1/01/34 | | | 4,390 | | | | 4,891,594 | |
| | | | | | | | |
| | | | | | | 26,939,657 | |
| | | | | | | | |
Arizona – 2.0% | | | | | | | | |
Arizona Health Facilities Authority
(Scottsdale Healthcare Hospitals Obligated Group)
Series 2014A
5.00%, 12/01/33-12/01/34 | | | 12,615 | | | | 14,041,265 | |
Estrella Mountain Ranch Community Facilities District
(Estrella Mountain Ranch CFD Desert Village)
Series 2002
7.375%, 7/01/27 | | | 1,653 | | | | 1,656,703 | |
Salt River Project Agricultural Improvement & Power District
Series 2016A
5.00%, 1/01/34(a) | | | 5,000 | | | | 5,704,850 | |
Salt Verde Financial Corp.
(Citigroup, Inc.)
Series 2007
5.25%, 12/01/23 | | | 3,685 | | | | 4,216,746 | |
Sundance Community Facilities District Assessment District No 1
Series 2002
7.75%, 7/01/22 | | | 98 | | | | 98,033 | |
| | | | | | | | |
| | | | | | | 25,717,597 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 77 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
California – 13.6% | | | | | | | | |
Alameda Corridor Transportation Authority
Series 2016B
5.00%, 10/01/35 | | $ | 10,550 | | | $ | 11,293,142 | |
Anaheim Housing & Public Improvements Authority
(Anaheim Electric Utility Fund)
Series 2016A
5.00%, 10/01/41 | | | 3,100 | | | | 3,347,380 | |
Bay Area Toll Authority | | | | | | | | |
Series 2013S
5.00%, 4/01/31 | | | 5,560 | | | | 6,233,205 | |
California Econ Recovery
Series 2009A
5.25%, 7/01/21 (Pre-refunded/ETM) | | | 1,510 | | | | 1,655,549 | |
California Educational Facilities Authority (Chapman University)
Series 2015
5.00%, 4/01/45 | | | 4,000 | | | | 4,336,560 | |
California Pollution Control Financing Authority
(Poseidon Resources Channelside LP)
Series 2012
5.00%, 7/01/37-11/21/45(b) | | | 11,000 | | | | 11,544,800 | |
California Statewide Communities Development Authority
Series 2008
6.25%, 8/15/28 (Pre-refunded/ETM) | | | 1,715 | | | | 1,858,597 | |
California Statewide Communities Development Authority
(Enloe Medical Center)
Series 2008A
5.50%, 8/15/23 | | | 80 | | | | 85,598 | |
City of Los Angeles CA Wastewater System Revenue
Series 2013A
5.00%, 6/01/33 | | | 9,310 | | | | 10,494,046 | |
City of Los Angeles Department of Airports (Los Angeles Intl Airport)
Series 2009A
5.25%, 5/15/29 | | | 9,260 | | | | 10,064,694 | |
County of San Bernardino CA COP
Series 2009A
5.25%, 8/01/26 | | | 1,910 | | | | 2,056,325 | |
Los Angeles Department of Water & Power PWR
Series 2013B
5.00%, 7/01/29-7/01/30 | | | 15,630 | | | | 17,914,712 | |
| | |
| 78 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Los Angeles Department of Water & Power WTR
Series 2013A
5.00%, 7/01/31 | | $ | 9,115 | | | $ | 10,308,974 | |
Series 2013B
5.00%, 7/01/32 | | | 1,900 | | | | 2,157,849 | |
Manteca Unified School District
(Manteca Unified School District CFD No 89-1)
NATL Series 2001
Zero Coupon, 9/01/31 | | | 11,910 | | | | 6,440,094 | |
Ontario Redevelopment Financing Authority
NATL Series 1993
5.80%, 8/01/23 (Pre-refunded/ETM) | | | 1,000 | | | | 1,089,010 | |
Port of Los Angeles
Series 2009C
5.25%, 8/01/24 | | | 17,205 | | | | 18,868,723 | |
Series 2014A
5.00%, 8/01/34 | | | 5,790 | | | | 6,442,591 | |
Sacramento Area Flood Control Agency
5.00%, 10/01/32-10/01/35(a) | | | 14,215 | | | | 15,967,561 | |
San Diego County Water Authority COP
AGM Series 2008A
5.00%, 5/01/25 (Pre-refunded/ETM) | | | 3,000 | | | | 3,162,720 | |
San Francisco City & County Airport Comm-San Francisco International Airport
(San Francisco Intl Airport)
Series 2010A
4.90%, 5/01/29 | | | 2,800 | | | | 3,060,680 | |
State of California
Series 2007
5.00%, 11/01/32 (Pre-refunded/ETM) | | | 6,160 | | | | 6,386,072 | |
5.00%, 11/01/32 | | | 3,840 | | | | 3,968,870 | |
Series 2013
5.00%, 11/01/29 | | | 8,000 | | | | 9,038,960 | |
University of California
Series 2013A
5.00%, 5/15/30 | | | 3,200 | | | | 3,661,120 | |
| | | | | | | | |
| | | | | | | 171,437,832 | |
| | | | | | | | |
Colorado – 1.3% | | | | | | | | |
Colorado Health Facilities Authority
(Evangelical Lutheran Good Samaritan Obligated Group)
Series 2006
5.25%, 6/01/19-6/01/23 | | | 635 | | | | 636,146 | |
E-470 Public Highway Authority
Series 2010C
5.25%, 9/01/25 | | | 2,900 | | | | 3,107,785 | |
5.375%, 9/01/26 | | | 3,600 | | | | 3,867,084 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 79 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Park Creek Metropolitan District
Series 2015A
5.00%, 12/01/34 | | $ | 1,300 | | | $ | 1,392,274 | |
PV Water & Sanitation Metropolitan District
Series 2006
Zero Coupon, 12/15/17(c)(d)(e) | | | 3,122 | | | | 624,400 | |
Regional Transportation District
(Denver Transit Partners LLC)
Series 2010
6.00%, 1/15/41 | | | 2,400 | | | | 2,629,080 | |
Sterling Ranch Community Authority Board
Series 2015A
5.50%, 12/01/35 | | | 1,500 | | | | 1,401,180 | |
Three Springs Metropolitan District No 3
Series 2010
7.75%, 12/01/39 | | | 1,950 | | | | 2,015,130 | |
| | | | | | | | |
| | | | | | | 15,673,079 | |
| | | | | | | | |
Connecticut – 1.2% | | | | | | | | |
State of Connecticut
Series 2015F
5.00%, 11/15/30-11/15/32 | | | 7,000 | | | | 7,807,250 | |
State of Connecticut Special Tax Revenue
Series 2012
5.00%, 1/01/29 | | | 6,445 | | | | 7,246,887 | |
| | | | | | | | |
| | | | | | | 15,054,137 | |
| | | | | | | | |
Delaware – 0.1% | | | | | | | | |
Delaware State Economic Development Authority
(Newark Charter School, Inc.)
Series 2016
5.00%, 9/01/46 | | | 550 | | | | 583,484 | |
| | | | | | | | |
| | |
District of Columbia – 2.1% | | | | | | | | |
District of Columbia
(Catholic University of America (The))
Series 2010
5.00%, 10/01/34 | | | 700 | | | | 740,866 | |
District of Columbia
(District of Columbia Pers Income Tax)
Series 2009B
5.25%, 12/01/26 | | | 9,600 | | | | 10,577,280 | |
District of Columbia Water & Sewer Authority
Series 2016A
5.00%, 10/01/36 | | | 7,000 | | | | 7,882,140 | |
Metropolitan Washington Airports Authority
Series 2016A
5.00%, 10/01/35 | | | 2,300 | | | | 2,496,857 | |
| | |
| 80 | | •�� AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Washington Convention & Sports Authority
(Washington Convention & Sports Authority Ded Tax)
AMBAC Series 2007A
5.00%, 10/01/23 | | $ | 5,000 | | | $ | 5,016,300 | |
| | | | | | | | |
| | | | | | | 26,713,443 | |
| | | | | | | | |
Florida – 3.8% | | | | | | | | |
Bexley Community Development District
Series 2016
4.70%, 5/01/36 | | | 1,750 | | | | 1,570,695 | |
Brevard County Health Facilities Authority
(Health First, Inc. Obligated Group)
Series 2014
5.00%, 4/01/33 | | | 1,500 | | | | 1,588,455 | |
Cape Coral Health Facilities Authority
(Gulf Care, Inc. Obligated Group)
Series 2015
5.875%, 7/01/40(b) | | | 1,000 | | | | 1,041,950 | |
County of Miami-Dade FL Aviation Revenue
Series 2014A
5.00%, 10/01/33 | | | 1,700 | | | | 1,795,574 | |
Series 2015A
5.00%, 10/01/38 | | | 4,300 | | | | 4,518,784 | |
County of Miami-Dade FL Spl Tax
Series 2012B
5.00%, 10/01/30-10/01/31 | | | 9,450 | | | | 10,543,783 | |
Florida Higher Educational Facilities Financial Authority
(Nova Southeastern University, Inc.)
Series 2016
5.00%, 4/01/32 | | | 1,125 | | | | 1,192,882 | |
Halifax Hospital Medical Center
(Halifax Hospital Medical Center Obligated Group)
Series 2016
5.00%, 6/01/36 | | | 2,190 | | | | 2,377,727 | |
Hollywood Community Redevelopment Agency
XLCA Series 2007
5.00%, 3/01/24 (Pre-refunded/ETM) | | | 5,000 | | | | 5,048,950 | |
Marshall Creek Community Development District
Series 2016
6.32%, 5/01/45 | | | 125 | | | | 116,451 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 81 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Marshall Creek Community Development District
(Marshall Creek Community Development District 2002A)
Series 2002
6.625%, 5/01/32(c)(d)(e) | | $ | 1,915 | | | $ | 1,803,164 | |
Miami-Dade County Expressway Authority
Series 2014B
5.00%, 7/01/31 | | | 3,750 | | | | 4,179,300 | |
Miami-Dade County Housing Finance Authority
(Golden Associates Ltd.)
Series 1997A
6.00%, 11/01/32 | | | 250 | | | | 250,858 | |
6.05%, 11/01/39 | | | 750 | | | | 752,468 | |
Orange County School Board COP
Series 2016C
5.00%, 8/01/34 | | | 5,000 | | | | 5,583,750 | |
South Florida Water Management District COP
Series 2016
5.00%, 10/01/33 | | | 5,000 | | | | 5,500,000 | |
| | | | | | | | |
| | | | | | | 47,864,791 | |
| | | | | | | | |
Guam – 0.0% | | | | | | | | |
Guam Department of Education COP
Series 2010A
6.875%, 12/01/40 | | | 515 | | | | 550,808 | |
| | | | | | | | |
| | |
Hawaii – 2.8% | | | | | | | | |
State of Hawaii
Series 2015E
4.00%, 10/01/34 | | | 2,510 | | | | 2,575,662 | |
Series 2016F
4.00%, 10/01/31-10/01/36 | | | 31,280 | | | | 32,148,898 | |
| | | | | | | | |
| | | | | | | 34,724,560 | |
| | | | | | | | |
Illinois – 6.9% | | | | | | | | |
Chicago Board of Education
AGM Series 2007B
5.00%, 12/01/24 | | | 10,000 | | | | 10,135,700 | |
City of Chicago IL
(Asphalt Operating Services of Chicago LLC)
Series 2010
6.125%, 12/01/18 | | | 1,795 | | | | 1,816,109 | |
City of Chicago IL
(Chicago IL SA Lakeshore East)
Series 2003
6.75%, 12/01/32 | | | 1,404 | | | | 1,405,952 | |
| | |
| 82 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
City of Chicago IL
(City of Chicago IL Sales Tax)
AGM Series 2005
5.00%, 1/01/25 | | $ | 6,905 | | | $ | 6,923,022 | |
Cook County Forest Preserve District
Series 2012C
5.00%, 12/15/32 | | | 7,745 | | | | 8,240,138 | |
Illinois Finance Authority
(Greenfields of Geneva)
Series 2010A
8.25%, 2/15/46(f) | | | 2,050 | | | | 1,403,368 | |
Illinois Finance Authority
(Illinois Institute of Technology)
Series 2006A
5.00%, 4/01/31 | | | 750 | | | | 750,375 | |
Illinois Finance Authority
(OSF Healthcare System Obligated Group)
Series 2015A
5.00%, 11/15/35 | | | 3,500 | | | | 3,709,580 | |
Illinois Finance Authority
(Park Place of Elmhurst)
Series 2016A
6.44%, 5/15/55 | | | 3,345 | | | | 3,202,933 | |
Series 2016C
2.00%, 5/15/55(e) | | | 590 | | | | 25,162 | |
Illinois Finance Authority
(Presence Health Network Obligated Group)
Series 2016C
5.00%, 2/15/32(c)(d) | | | 5,000 | | | | 5,160,950 | |
Illinois Sports Facilities Authority (The)
AMBAC Series 2001
5.50%, 6/15/30 | | | 4,960 | | | | 4,973,690 | |
Kane Cook & DuPage Counties School District No U-46 Elgin
Series 2015D
5.00%, 1/01/34-1/01/35 | | | 4,250 | | | | 4,488,669 | |
Metropolitan Pier & Exposition Authority
Series 2012B
5.00%, 12/15/28 | | | 21,500 | | | | 22,567,475 | |
State of Illinois
Series 2012
5.00%, 3/01/31 | | | 2,000 | | | | 2,020,040 | |
Series 2014
5.00%, 4/01/30-5/01/35 | | | 3,680 | | | | 3,655,577 | |
Village of Matteson IL
Series 2010
8.00%, 12/01/29(g) | | | 3,350 | | | | 2,320,076 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 83 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Village of Pingree Grove IL Special Service Area No 7
Series 2015A
4.50%, 3/01/25 | | $ | 923 | | | $ | 933,578 | |
5.00%, 3/01/36 | | | 2,323 | | | | 2,319,980 | |
Series 2015B
6.00%, 3/01/36 | | | 787 | | | | 812,184 | |
| | | | | | | | |
| | | | | | | 86,864,558 | |
| | | | | | | | |
Indiana – 2.1% | | | | | | | | |
Indiana Finance Authority
(CWA Authority, Inc.)
Series 2014A
5.00%, 10/01/32-10/01/34 | | | 12,320 | | | | 13,707,251 | |
Indiana Finance Authority
(I-69 Development Partners LLC)
Series 2014
5.00%, 9/01/46 | | | 3,750 | | | | 3,492,225 | |
Indiana Finance Authority
(WVB East End Partners LLC)
Series 2013A
5.00%, 7/01/44 | | | 1,930 | | | | 1,966,709 | |
Indianapolis Local Public Improvement Bond Bank
(Marion County Capital Improvement Board)
Series 2011K
5.00%, 6/01/27 | | | 6,840 | | | | 7,564,903 | |
| | | | | | | | |
| | | | | | | 26,731,088 | |
| | | | | | | | |
Iowa – 0.5% | | | | | | | | |
Xenia Rural Water District
Series 2016
5.00%, 12/01/31-12/01/36 | | | 5,375 | | | | 5,718,007 | |
| | | | | | | | |
| | |
Kentucky – 0.5% | | | | | | | | |
Kentucky Economic Development Finance Authority
(Next Generation Kentucky Information Highway)
Series 2015A
5.00%, 7/01/40 | | | 1,300 | | | | 1,347,879 | |
Louisville/Jefferson County Metropolitan Government
(Norton Healthcare Obligated Group)
Series 2016
5.00%, 10/01/30-10/01/33 | | | 5,000 | | | | 5,444,480 | |
| | | | | | | | |
| | | | | | | 6,792,359 | |
| | | | | | | | |
| | |
| 84 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Louisiana – 2.0% | | | | | | | | |
City of New Orleans LA
AGC Series 2007A
5.00%, 12/01/18 (Pre-refunded/ETM) | | $ | 2,025 | | | $ | 2,104,096 | |
5.00%, 12/01/19 (Pre-refunded/ETM) | | | 2,115 | | | | 2,197,612 | |
5.00%, 12/01/22 (Pre-refunded/ETM) | | | 1,060 | | | | 1,101,404 | |
Louisiana Agricultural Finance Authority
(Louisiana Agricultural Finance Authority State Lease)
Series 2007
5.25%, 9/15/17 | | | 320 | | | | 326,800 | |
Louisiana Local Government Environmental Facilities & Community Development Auth
Series 2009A
5.00%, 4/01/26 (Pre-refunded/ETM) | | | 715 | | | | 772,229 | |
Louisiana Local Government Environmental Facilities & Community Development Auth
(East Baton Rouge Sewerage Commission)
Series 2014
5.00%, 2/01/44 | | | 12,000 | | | | 12,824,400 | |
Louisiana Public Facilities Authority
(Ochsner Clinic Foundation)
Series 2016
5.00%, 5/15/32-5/15/34 | | | 5,500 | | | | 5,876,697 | |
| | | | | | | | |
| | | | | | | 25,203,238 | |
| | | | | | | | |
Maine – 0.8% | | | | | | | | |
Maine Health & Higher Educational Facilities Authority
(Stephens Memorial Hospital Association)
Series 2015
5.00%, 7/01/33-7/01/34 | | | 9,310 | | | | 10,099,161 | |
| | | | | | | | |
| | |
Maryland – 0.1% | | | | | | | | |
County of Anne Arundel MD
(National Business Park North)
Series 2010
6.10%, 7/01/40 | | | 885 | | | | 917,249 | |
| | | | | | | | |
| | |
Massachusetts – 2.2% | | | | | | | | |
Commonwealth of Massachusetts
NATL Series 2000G
0.615%, 12/01/30(h) | | | 3,100 | | | | 2,825,281 | |
Massachusetts Development Finance Agency
(Boston University)
Series 2016B
5.00%, 10/01/46 | | | 2,000 | | | | 2,203,720 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 85 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Massachusetts Development Finance Agency
(Dana-Farber Cancer Institute Obligated Group)
Series 2016N
5.00%, 12/01/33 | | $ | 2,000 | | | $ | 2,234,960 | |
Massachusetts Development Finance Agency
(Emerson College)
Series 2010A
5.00%, 1/01/40 | | | 2,000 | | | | 2,083,740 | |
5.50%, 1/01/30 | | | 4,750 | | | | 5,170,280 | |
Massachusetts Development Finance Agency
(President and Fellows of Harvard College)
Series 2016A
5.00%, 7/15/34 | | | 5,700 | | | | 6,619,752 | |
Massachusetts Development Finance Agency
(UMass Memorial Health Care Obligated Group)
Series 2016
5.00%, 7/01/31-7/01/36 | | | 4,085 | | | | 4,376,533 | |
Massachusetts Health & Educational Facilities Authority
(Foundation of Massachusetts Eye & Ear Obligated Group)
Series 2010C
5.375%, 7/01/35 | | | 2,245 | | | | 2,417,977 | |
| | | | | | | | |
| | | | | | | 27,932,243 | |
| | | | | | | | |
Michigan – 3.9% | | | | | | | | |
Detroit City School District
Series 2012A
5.00%, 5/01/27-5/01/30 | | | 7,965 | | | | 8,606,304 | |
Michigan Finance Authority
(Great Lakes Water Authority Water Supply System)
Series 2014D4
5.00%, 7/01/34 | | | 11,225 | | | | 12,080,906 | |
Michigan Finance Authority
(MidMichigan Obligated Group)
Series 2014
5.00%, 6/01/34 | | | 2,000 | | | | 2,194,740 | |
Michigan Finance Authority
(Public Lighting Authority)
Series 2014B
5.00%, 7/01/33 | | | 2,485 | | | | 2,682,955 | |
| | |
| 86 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Michigan State Building Authority
(Michigan State Building Authority Lease)
Series 2015I
5.00%, 4/15/33 | | $ | 7,750 | | | $ | 8,597,618 | |
Michigan Strategic Fund
(Detroit Renewable Energy Obligated Group)
Series 2013
8.50%, 12/01/30(b) | | | 6,240 | | | | 6,417,903 | |
Series 2016
9.00%, 12/01/25(a)(b)(g) | | | 1,415 | | | | 1,119,491 | |
Plymouth Educational Center Charter School
Series 2005
5.375%, 11/01/30(f) | | | 2,000 | | | | 1,626,860 | |
Wayne State University
Series 2009A
5.00%, 11/15/29 (Pre-refunded/ETM) | | | 2,480 | | | | 2,720,808 | |
5.00%, 11/15/29 | | | 2,735 | | | | 2,964,357 | |
| | | | | | | | |
| | | | | | | 49,011,942 | |
| | | | | | | | |
Minnesota – 0.9% | | | | | | | | |
City of Maple Grove MN
(Maple Grove Hospital Corp.)
Series 2007
5.00%, 5/01/22 | | | 1,350 | | | | 1,365,471 | |
City of Minneapolis MN
(Minneapolis Common Bond Fund)
Series 20102A
6.00%, 12/01/40 | | | 3,000 | | | | 3,433,080 | |
Housing & Redevelopment Authority of The City of St Paul Minnesota
(HealthEast Obligated Group)
Series 2015A
5.00%, 11/15/40 | | | 1,000 | | | | 1,056,060 | |
Minnesota Higher Education Facilities Authority
(St Olaf College)
Series 20158
5.00%, 12/01/30 | | | 1,000 | | | | 1,133,790 | |
University of Minnesota
Series 2014B
4.00%, 1/01/31-1/01/34 | | | 4,500 | | | | 4,666,415 | |
| | | | | | | | |
| | | | | | | 11,654,816 | |
| | | | | | | | |
Mississippi – 1.3% | | | | | | | | |
Mississippi Development Bank
Series 2010D
5.25%, 8/01/27 (Pre-refunded/ETM) | | | 15,000 | | | | 16,850,850 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 87 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Missouri – 1.7% | | | | | | | | |
City of Kansas City MO
Series 2008C
5.00%, 4/01/28 (Pre-refunded/ETM) | | $ | 14,000 | | | $ | 14,697,480 | |
Health & Educational Facilities Authority of the State of Missouri
(Lutheran Senior Services Obligated Group)
Series 2010
5.50%, 2/01/42 | | | 1,880 | | | | 1,955,369 | |
Joplin Industrial Development Authority
(Freeman Health System)
Series 2015
5.00%, 2/15/35 | | | 1,485 | | | | 1,605,879 | |
Kansas City Industrial Development Authority
(Kingswood Senior Living Community)
Series 2016
6.00%, 11/15/46(b) | | | 2,725 | | | | 2,599,541 | |
| | | | | | | | |
| | | | | | | 20,858,269 | |
| | | | | | | | |
Nebraska – 0.3% | | | | | | | | |
Omaha Public Power District
Series 2014A
5.00%, 2/01/32 | | | 2,775 | | | | 3,128,008 | |
| | | | | | | | |
| | |
Nevada – 1.0% | | | | | | | | |
County of Clark Department of Aviation
(Las Vegas-McCarran International Airport)
Series 2012B
5.00%, 7/01/29 | | | 6,070 | | | | 6,790,995 | |
State of Nevada
NATL Series 2007B
5.00%, 12/01/25 (Pre-refunded/ETM) | | | 5,800 | | | | 6,026,548 | |
| | | | | | | | |
| | | | | | | 12,817,543 | |
| | | | | | | | |
New Jersey – 4.3% | | | | | | | | |
Hudson County Improvement Authority
(County of Hudson NJ)
Series 2016
5.00%, 5/01/33-5/01/34 | | | 7,935 | | | | 8,925,118 | |
Morris-Union Jointure Commission COP
AGM Series 2013
5.00%, 8/01/25 | | | 2,055 | | | | 2,237,792 | |
| | |
| 88 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New Jersey Economic Development Authority
(New Jersey Economic Development Authority State Lease)
Series 2014U
5.00%, 6/15/30 | | $ | 5,840 | | | $ | 6,020,865 | |
New Jersey Health Care Facilities Financing Authority
(Inspira Health Obligated Group)
Series 2016A
5.00%, 7/01/33-7/01/34 | | | 3,520 | | | | 3,901,380 | |
New Jersey Transportation Trust Fund Authority
(New Jersey Transportation Fed Hwy Grant)
Series 2016
5.00%, 6/15/29 | | | 2,175 | | | | 2,270,483 | |
New Jersey Turnpike Authority
Series 2014A
5.00%, 1/01/33 | | | 4,750 | | | | 5,300,525 | |
Series 2015E
5.00%, 1/01/33 | | | 11,000 | | | | 12,029,930 | |
Series 2016A
5.00%, 1/01/33 | | | 8,500 | | | | 9,413,835 | |
Union County Utilities Authority
(County of Union NJ Lease)
Series 2011A
5.25%, 12/01/31 | | | 4,340 | | | | 4,571,105 | |
| | | | | | | | |
| | | | | | | 54,671,033 | |
| | | | | | | | |
New York – 10.7% | | | | | | | | |
City of New York NY
Series 2008B-1
5.25%, 9/01/23 | | | 5,000 | | | | 5,337,500 | |
Series 2012G
5.00%, 4/01/29 | | | 9,550 | | | | 10,732,576 | |
Metropolitan Transportation Authority
Series 2012F
5.00%, 11/15/27 | | | 1,680 | | | | 1,882,054 | |
Series 2013B
5.00%, 11/15/32 | | | 5,000 | | | | 5,538,700 | |
Series 2013E
5.00%, 11/15/32 | | | 5,000 | | | | 5,576,150 | |
Series 2016D
5.00%, 11/15/31 | | | 5,000 | | | | 5,652,100 | |
New York City Municipal Water Finance Authority
Series 2014D
5.00%, 6/15/35 | | | 4,000 | | | | 4,506,760 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 89 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New York City Transitional Finance Authority Future Tax Secured Revenue
Series 2012B
5.00%, 11/01/30 | | $ | 15,015 | | | $ | 16,940,524 | |
Series 2014B-1
5.00%, 8/01/32 | | | 4,000 | | | | 4,520,080 | |
Series 2014D-1
5.00%, 2/01/34 | | | 5,000 | | | | 5,578,100 | |
Series 2016B
5.00%, 8/01/32 | | | 10,000 | | | | 11,395,400 | |
New York Liberty Development Corp.
(4 World Trade Center LLC)
Series 2011
5.00%, 11/15/31 | | | 2,775 | | | | 3,083,469 | |
New York Liberty Development Corp.
(National Sports Museum)
Series 2006A
6.125%, 2/15/19(c)(d)(e) | | | 1,188 | | | | 12 | |
New York State Dormitory Authority
Series 2012D
5.00%, 2/15/29 (Pre-refunded/ETM) | | | 705 | | | | 801,000 | |
New York State Dormitory Authority
(State of New York Pers Income Tax)
Series 2012D
5.00%, 2/15/29 | | | 4,255 | | | | 4,724,029 | |
Series 2015E
5.00%, 3/15/34 | | | 11,000 | | | | 12,352,120 | |
5.25%, 3/15/33 | | | 2,000 | | | | 2,308,200 | |
New York State Energy Research & Development Authority
(Consolidated Edison Co. of New York, Inc.)
XLCA Series 2004A
1.295%, 1/01/39(h) | | | 3,700 | | | | 3,374,936 | |
New York State Energy Research & Development Authority
(Niagara Mohawk Holdings, Inc.)
AMBAC Series 1987A
1.338%, 3/01/27(h) | | | 5,370 | | | | 5,152,101 | |
New York State Thruway Authority
(New York State Thruway Authority Gen Toll Road)
Series 2016A
5.00%, 1/01/34 | | | 2,070 | | | | 2,290,869 | |
New York State Urban Development Corp.
(State of New York Pers Income Tax)
Series 2013A
5.00%, 3/15/43 | | | 5,000 | | | | 5,487,100 | |
| | |
| 90 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Port Authority of New York & New Jersey
Series 2014
5.00%, 9/01/30-9/01/31 | | $ | 13,750 | | | $ | 15,295,575 | |
Series 20161
5.00%, 11/15/35 | | | 2,255 | | | | 2,538,995 | |
| | | | | | | | |
| | | | | | | 135,068,350 | |
| | | | | | | | |
North Carolina – 1.3% | | | | | | | | |
County of Iredell NC COP
AGM Series 2008
5.25%, 6/01/22 (Pre-refunded/ETM) | | | 920 | | | | 974,538 | |
North Carolina Medical Care Commission
(United Methodist Retirement Homes, Inc. (The))
Series 2016A
5.00%, 10/01/30-10/01/35 | | | 2,000 | | | | 2,163,092 | |
North Carolina Medical Care Commission
(WakeMed Obligated Group)
Series 2009B
0.54%, 10/01/38(i) | | | 7,200 | | | | 7,200,000 | |
State of North Carolina
(State of North Carolina Fed Hwy Grant)
Series 2015
5.00%, 3/01/30 | | | 5,000 | | | | 5,639,300 | |
| | | | | | | | |
| | | | | | | 15,976,930 | |
| | | | | | | | |
Ohio – 3.4% | | | | | | | | |
City of Akron OH
(City of Akron OH Income Tax)
Series 2012A
5.00%, 12/01/31 | | | 2,345 | | | | 2,655,501 | |
Series 2014
5.00%, 12/01/33 | | | 4,250 | | | | 4,794,127 | |
City of Cleveland OH
Series 2008
5.25%, 5/15/24 (Pre-refunded/ETM) | | | 5,500 | | | | 5,809,815 | |
Cleveland Department of Public Utilities Division of Public Power
NATL Series 2006A
5.00%, 11/15/18 | | | 1,350 | | | | 1,353,713 | |
Columbus City School District
Series 2016A
5.00%, 12/01/30-12/01/31 | | | 9,000 | | | | 10,343,200 | |
Franklin County Convention Facilities Authority
(City of Columbus OH/Franklin County Lease)
Series 2014
5.00%, 12/01/31 | | | 3,855 | | | | 4,355,225 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 91 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Kent State University
Series 2012A
5.00%, 5/01/29 | | $ | 2,000 | | | $ | 2,215,020 | |
Ohio Air Quality Development Authority
(FirstEnergy Generation LLC)
Series 2009D
4.25%, 8/01/29 | | | 1,985 | | | | 1,817,406 | |
Ohio Air Quality Development Authority
(FirstEnergy Nuclear Generation LLC)
Series 2009A
4.375%, 6/01/33 | | | 950 | | | | 867,759 | |
Ohio Water Development Authority Water Pollution Control Loan Fund
(FirstEnergy Nuclear Generation LLC)
Series 2016A
4.375%, 6/01/33 | | | 1,090 | | | | 995,639 | |
Toledo-Lucas County Port Authority
(CSX Transportation, Inc.)
Series 1992
6.45%, 12/15/21 | | | 6,730 | | | | 7,975,117 | |
| | | | | | | | |
| | | | | | | 43,182,522 | |
| | | | | | | | |
Oklahoma – 0.1% | | | | | | | | |
Tulsa Airports Improvement Trust
BAM Series 2015A
5.00%, 6/01/35 | | | 1,000 | | | | 1,082,310 | |
| | | | | | | | |
| | |
Oregon – 0.3% | | | | | | | | |
Tri-County Metropolitan Transportation District of Oregon
Series 2011A
5.00%, 10/01/27 | | | 3,000 | | | | 3,348,750 | |
| | | | | | | | |
| | |
Pennsylvania – 3.8% | | | | | | | | |
Bensalem Township School District
Series 2013
5.00%, 6/01/30 | | | 5,000 | | | | 5,738,250 | |
Montgomery County Industrial Development Authority/PA
Series 2010
5.25%, 8/01/33 (Pre-refunded/ETM) | | | 4,715 | | | | 5,305,695 | |
Moon Industrial Development Authority
(Baptist Home Society Obligated Group)
Series 2015
6.00%, 7/01/45 | | | 5,375 | | | | 5,661,917 | |
| | |
| 92 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Pennsylvania Economic Development Financing Authority
(PA Bridges Finco LP)
Series 2015
5.00%, 12/31/34-12/31/38 | | $ | 5,060 | | | $ | 5,199,613 | |
Pennsylvania Industrial Development Authority
Series 2008
5.50%, 7/01/23 (Pre-refunded/ETM) | | | 3,940 | | | | 4,201,143 | |
Pennsylvania Turnpike Commission
(Pennsylvania Turnpike Commission Oil Franchise Tax)
Series 2016A
5.00%, 12/01/32 | | | 2,220 | | | | 2,516,681 | |
Philadelphia Authority for Industrial Development
(Greater Philadelphia Health Action, Inc.)
Series 2015A
6.375%, 6/01/40 | | | 3,100 | | | | 3,046,308 | |
Philadelphia Authority for Industrial Development
(LLPCS Foundation)
Series 2005A
5.25%, 7/01/24(c)(d)(e) | | | 1,030 | | | | 10,300 | |
Sports & Exhibition Authority of Pittsburgh and Allegheny County
(Sports & Exhibition Authority of Pittsburgh and Allegheny County Sales Tax)
AGM Series 2010
5.00%, 2/01/31 | | | 6,925 | | | | 7,589,523 | |
State Public School Building Authority
(School District of Philadelphia (The))
Series 2012
5.00%, 4/01/30-4/01/31 | | | 6,500 | | | | 6,810,670 | |
Township of Lower Paxton PA
Series 2014
5.00%, 4/01/31 | | | 1,685 | | | | 1,907,353 | |
| | | | | | | | |
| | | | | | | 47,987,453 | |
| | | | | | | | |
Puerto Rico – 0.1% | | | | | | | | |
Puerto Rico Housing Finance Authority
(Puerto Rico Housing Finance Authority Cap Fd Prog)
Series 2008
5.125%, 12/01/27 | | | 1,065 | | | | 1,117,313 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 93 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Rhode Island – 0.2% | | | | | | | | |
Rhode Island Commerce Corp.
(Providence Place Group LP)
AGC Series 2000
6.125%, 7/01/20 | | $ | 2,665 | | | $ | 2,676,273 | |
| | | | | | | | |
| | |
South Carolina – 0.2% | | | | | | | | |
Dorchester County School District No 2
Series 2006
5.00%, 12/01/30 (Pre-refunded/ETM) | | | 1,500 | | | | 1,500,000 | |
AGC Series 2006
5.00%, 12/01/29 (Pre-refunded/ETM) | | | 400 | | | | 400,000 | |
| | | | | | | | |
| | | | | | | 1,900,000 | |
| | | | | | | | |
South Dakota – 0.2% | | | | | | | | |
South Dakota State Building Authority
(South Dakota State Building Authority Lease)
Series 2014A
5.00%, 6/01/34 | | | 2,725 | | | | 3,049,329 | |
| | | | | | | | |
| | |
Tennessee – 0.4% | | | | | | | | |
Metropolitan Government Nashville & Davidson County Health & Educational Facs Bd
(Vanderbilt University Medical Center)
Series 2016
5.00%, 7/01/35 | | | 4,325 | | | | 4,666,026 | |
| | | | | | | | |
| | |
Texas – 12.6% | | | | | | | | |
Alvin Independent School District/TX
Series 2009B
5.00%, 2/15/28 (Pre-refunded/ETM) | | | 1,290 | | | | 1,389,988 | |
Arlington Higher Education Finance Corp.
(Harmony Public Schools)
Series 2016A
5.00%, 2/15/33 | | | 1,410 | | | | 1,586,786 | |
Arlington Higher Education Finance Corp.
(Wayside Schools)
Series 2016A
4.375%, 8/15/36 | | | 615 | | | | 565,702 | |
Bexar County Health Facilities Development Corp.
5.00%, 7/01/27 (Pre-refunded/ETM) | | | 60 | | | | 61,366 | |
Bexar County Health Facilities Development Corp.
(Army Retirement Residence Obligated Group)
5.00%, 7/01/27 | | | 305 | | | | 306,202 | |
| | |
| 94 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Camino Real Regional Mobility Authority
Series 2008
5.00%, 2/15/21 | | $ | 895 | | | $ | 897,560 | |
Central Texas Regional Mobility Authority
Series 2016
5.00%, 1/01/32-1/01/34 | | | 4,250 | | | | 4,532,223 | |
Central Texas Turnpike System
Series 2015C
5.00%, 8/15/34 | | | 10,000 | | | | 10,500,600 | |
City of El Paso TX Water & Sewer Revenue
Series 2014
5.00%, 3/01/30 | | | 1,000 | | | | 1,131,310 | |
City of Houston TX
(City of Houston TX Hotel Occupancy Tax)
Series 2015
5.00%, 9/01/31 | | | 2,500 | | | | 2,773,625 | |
City of Houston TX Airport System Revenue
AGM Series 2000P
0.94%, 7/01/30(h) | | | 1,750 | | | | 1,628,184 | |
XLCA Series 2002D
1.212%, 7/01/32(h) | | | 2,000 | | | | 1,861,082 | |
City of Houston TX Airport System Revenue
(United Airlines, Inc.)
Series 2015B
5.00%, 7/15/30 | | | 4,650 | | | | 4,919,700 | |
City of Houston TX Combined Utility System Revenue
Series 2016B
5.00%, 11/15/36 | | | 7,000 | | | | 7,887,810 | |
City of San Antonio TX Electric & Gas Systems Revenue
Series 2008
5.00%, 2/01/26 (Pre-refunded/ETM) | | | 6,830 | | | | 7,130,110 | |
Series 2009A
5.25%, 2/01/24 (Pre-refunded/ETM) | | | 3,260 | | | | 3,518,290 | |
Clifton Higher Education Finance Corp.
(IDEA Public Schools)
Series 2015
5.00%, 8/15/35-8/15/39 | | | 7,680 | | | | 8,508,748 | |
Series 2016A
5.00%, 8/15/38 | | | 1,855 | | | | 2,064,244 | |
Dallas/Fort Worth International Airport
Series 2012F
5.00%, 11/01/28 | | | 13,680 | | | | 14,790,953 | |
El Paso County Hospital District
AGC Series 2008A
5.00%, 8/15/23 | | | 5,000 | | | | 5,323,750 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 95 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Mission Economic Development Corp.
(Natgasoline LLC)
Series 2016B
5.75%, 10/01/31(b) | | $ | 1,790 | | | $ | 1,872,626 | |
North East Texas Regional Mobility Authority
Series 2016
5.00%, 1/01/36 | | | 3,400 | | | | 3,600,702 | |
North Texas Health Facilities Development Corp.
(United Regional Health Care System, Inc.)
AGM Series 2007
5.00%, 9/01/24 | | | 1,000 | | | | 1,023,580 | |
North Texas Tollway Authority
Series 2015A
5.00%, 1/01/34-1/01/35 | | | 15,585 | | | | 17,175,143 | |
Series 2015B
5.00%, 1/01/34 | | | 1,700 | | | | 1,890,570 | |
Series 2016A
5.00%, 1/01/36 | | | 1,000 | | | | 1,105,070 | |
North Texas Tollway Authority
(North Texas Tollway Authority Special Projects System)
Series 2011D
5.00%, 9/01/30 | | | 7,500 | | | | 8,407,575 | |
Tarrant County Cultural Education Facilities Finance Corp.
Series 2010
8.125%, 11/15/44 (Pre-refunded/ETM) | | | 2,150 | | | | 2,659,034 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Buckingham Senior Living Community, Inc.)
Series 2007
5.50%, 11/15/22 | | | 2,210 | | | | 2,265,184 | |
Series 2015I
5.50%, 11/15/45 | | | 1,670 | | | | 1,745,501 | |
Tarrant County Cultural Education Facilities Finance Corp.
(Edgemere Retirement Senior Quality Lifestyles Corp.)
Series 2015A
5.00%, 11/15/45 | | | 6,685 | | | | 6,694,359 | |
Series 2015B
5.00%, 11/15/36 | | | 1,850 | | | | 1,868,555 | |
| | |
| 96 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Tarrant County Cultural Education Facilities Finance Corp.
(Stayton at Museum Way)
Series 2009A
8.00%, 11/15/28 | | $ | 2,000 | | | $ | 2,140,840 | |
Texas Private Activity Bond Surface Transportation Corp.
(LBJ Infrastructure Group LLC)
Series 2010
7.00%, 6/30/40 | | | 9,040 | | | | 10,334,166 | |
Texas Private Activity Bond Surface Transportation Corp.
(NTE Mobility Partners LLC)
Series 2009
6.875%, 12/31/39 | | | 2,280 | | | | 2,590,559 | |
Texas State Public Finance Authority Charter School Finance Corp.
(KIPP Austin Public Schools, Inc.)
Series 2014A
5.00%, 8/15/32-8/15/34 | | | 3,330 | | | | 3,650,500 | |
Tyler Health Facilities Development Corp.
Series 2007
5.25%, 7/01/26 (Pre-refunded/ETM) | | | 1,750 | | | | 1,792,822 | |
Wichita Falls Independent School District
Series 2007
5.00%, 2/01/27 (Pre-refunded/ETM) | | | 6,000 | | | | 6,038,820 | |
| | | | | | | | |
| | | | | | | 158,233,839 | |
| | | | | | | | |
Utah – 0.1% | | | | | | | | |
Timber Lakes Water Special Service District
Series 2011
8.125%, 6/15/31 | | | 750 | | | | 789,638 | |
| | | | | | | | |
| | |
Vermont – 0.9% | | | | | | | | |
Vermont Educational & Health Buildings Financing Agency
(University of Vermont Health Network Obligated Group)
Series 2016A
5.00%, 12/01/34 | | | 10,000 | | | | 10,824,200 | |
| | | | | | | | |
| | |
Virginia – 0.4% | | | | | | | | |
Cherry Hill Community Development Authority
(Potomac Shores Project)
Series 2015
5.40%, 3/01/45(b) | | | 1,415 | | | | 1,438,390 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 97 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Stafford County Economic Development Authority
(Mary Washington Healthcare Obligated Group)
Series 2016
4.00%, 6/15/37 | | $ | 1,200 | | | $ | 1,167,192 | |
5.00%, 6/15/34 | | | 2,500 | | | | 2,712,925 | |
| | | | | | | | |
| | | | | | | 5,318,507 | |
| | | | | | | | |
Washington – 2.9% | | | | | | | | |
Clark County Public Utility District No 1
Series 2010
5.00%, 1/01/23 (Pre-refunded/ETM) | | | 6,155 | | | | 6,758,498 | |
5.00%, 1/01/23 | | | 6,480 | | | | 7,030,152 | |
FYI Properties
(FYI Properties WA State Lease)
Series 2009
5.00%, 6/01/27 | | | 615 | | | | 663,942 | |
5.25%, 6/01/26 | | | 4,000 | | | | 4,349,720 | |
King County School District No 414 Lake
Washington
NATL Series 2006
5.00%, 12/01/24 (Pre-refunded/ETM) | | | 4,500 | | | | 4,500,000 | |
Washington St GO
5.00%, 7/01/24(j) | | | 9,000 | | | | 10,001,880 | |
Washington State Housing Finance Commission
(Skyline at First Hill Proj)
Series 2007A
5.625%, 1/01/27-1/01/38 | | | 3,490 | | | | 3,501,831 | |
| | | | | | | | |
| | | | | | | 36,806,023 | |
| | | | | | | | |
West Virginia – 0.6% | | | | | | | | |
West Virginia Economic Development Authority
(Morgantown Energy Associates)
Series 2016
2.875%, 12/15/26 | | | 2,370 | | | | 2,190,472 | |
West Virginia Economic Development Authority
(West Virginia Lottery)
Series 2010A
5.00%, 6/15/35 | | | 5,000 | | | | 5,479,800 | |
| | | | | | | | |
| | | | | | | 7,670,272 | |
| | | | | | | | |
| | |
| 98 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Wisconsin – 1.2% | | | | | | | | |
Oneida Tribe of Indians of Wisconsin
(Oneida Tribe of Indians of Wisconsin Sales Tax)
Series 2011
6.50%, 2/01/31(b) | | $ | 2,465 | | | $ | 2,766,346 | |
Wisconsin Health & Educational Facilities
Authority
Series 2012C
5.00%, 8/15/32 (Pre-refunded/ETM) | | | 2,300 | | | | 2,656,155 | |
Wisconsin Public Finance Authority
(Celanese US Holdings LLC)
Series 2016A
5.00%, 1/01/24 | | | 3,395 | | | | 3,667,347 | |
Series 2016B
5.00%, 12/01/25 | | | 1,795 | | | | 1,946,336 | |
Wisconsin Public Finance Authority
(Pine Lake Preparatory, Inc.)
Series 2015
5.50%, 3/01/45(b) | | | 3,465 | | | | 3,459,733 | |
Wisconsin Public Finance Authority
(Roseman University of Health Sciences)
Series 2015
5.875%, 4/01/45 | | | 1,000 | | | | 1,020,670 | |
| | | | | | | | |
| | | | | | | 15,516,587 | |
| | | | | | | | |
Total Long-Term Municipal Bonds
(cost $1,205,003,205) | | | | | | | 1,219,724,074 | |
| | | | | | | | |
| | | | | | | | |
Short-Term Municipal Notes – 3.0% | | | | | | | | |
Florida – 0.5% | | | | | | | | |
Hillsborough Community College Foundation, Inc. (The)
Series 2006
0.55%, 12/01/33(i) | | | 6,715 | | | | 6,715,000 | |
| | | | | | | | |
| | |
Louisiana – 0.8% | | | | | | | | |
Louisiana Offshore Terminal Authority
(Loop LLC)
Series 1997A
0.55%, 9/01/17(i) | | | 10,000 | | | | 10,000,000 | |
| | | | | | | | |
| | |
Minnesota – 0.9% | | | | | | | | |
City of Minneapolis MN/St Paul Housing &
Redevelopment Authority
(Allina Health System)
Series 2009B
0.57%, 11/15/35(i) | | | 11,400 | | | | 11,400,000 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 99 | |
AB National Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount (000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Wyoming – 0.8% | | | | | | | | |
County of Lincoln WY
(Exxon Capital Ventures, Inc.)
Series 2014
0.52%, 10/01/44(i) | | $ | 9,400 | | | $ | 9,400,000 | |
| | | | | | | | |
| | |
Total Short-Term Municipal Notes
(cost $37,515,000) | | | | | | | 37,515,000 | |
| | | | | | | | |
| | |
Total Municipal Obligations
(cost $1,242,518,205) | | | | | | | 1,257,239,074 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
SHORT-TERM INVESTMENTS – 0.8% | | | | | | | | |
Investment Companies – 0.8% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.30%(k)(l)
(cost $10,132,541) | | | 10,132,541 | | | | 10,132,541 | |
| | | | | | | | |
| | |
Total Investments – 100.7%
(cost $1,252,650,746) | | | | | | | 1,267,371,615 | |
Other assets less liabilities – (0.7)% | | | | | | | (9,099,640 | ) |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 1,258,271,975 | |
| | | | | | | | |
| (a) | | When-Issued or delayed delivery security. |
| (b) | | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2016, the aggregate market value of these securities amounted to $32,260,780 or 2.6% of net assets. |
| (c) | | Non-income producing security. |
| (f) | | Restricted and illiquid security. |
| | | | | | | | | | | | | | | | |
Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Illinois Finance Authority (Greenfields of Geneva)
Series 2010A
8%, 02/15/2046 | | | 8/20/10 | | | $ | 2,027,558 | | | $ | 1,403,368 | | | | 0.11 | % |
Plymouth Educational Center Charter School
Series 2005
5%, 11/01/2030 | | | 11/30/05 | | | | 2,000,000 | | | | 1,626,860 | | | | 0.13 | % |
| (g) | | Indicates a security that has a zero coupon that remains in effect until a predetermined date at which time the stated coupon rate becomes effective until final maturity. |
| | |
| 100 | | • AB MUNICIPAL INCOME FUND |
AB National Portfolio—Portfolio of Investments
| (h) | | An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of November 30, 2016 and the aggregate market value of these securities amounted to $14,841,584 or 1.18% of net assets. |
| (i) | | 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. |
| (j) | | Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note I). |
| (k) | | Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end. |
| (l) | | To obtain a copy of the fund’s financial statements, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
As of November 30, 2016, 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 7.7% and 2.1%, respectively.
Glossary:
| AGC | | – Assured Guaranty Corporation |
| AGM | | – Assured Guaranty Municipal |
| AMBAC | | – Ambac Assurance Corporation |
| BAM | | – Build American Mutual |
| CFD | | – Community Facilities District |
| COP | | – Certificate of Participation |
| ETM | | – Escrowed to Maturity |
| NATL | | – National Interstate Corporation |
| OSF | | – Order of St. Francis |
| XLCA | | – XL Capital Assurance Inc. |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 101 | |
AB National Portfolio—Portfolio of Investments
AB NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
November 30, 2016 (unaudited)
| | | | | | | | |
| | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
MUNICIPAL OBLIGATIONS – 97.7% | | | | | | | | |
Long-Term Municipal Bonds – 96.6% | | | | | | | | |
New York – 94.6% | | | | | | | | |
Albany County Airport Authority
AGM Series 2010A
5.00%, 12/15/25-12/15/26 | | $ | 4,540 | | | $ | 4,968,732 | |
Albany Industrial Development Agency
Series 2008A
5.75%, 11/15/22 (Pre-refunded/ETM) | | | 795 | | | | 830,171 | |
Brookhaven Local Development Corp.
(Active Retirement Community, Inc.)
5.25%, 11/01/36(a) | | | 1,500 | | | | 1,607,415 | |
Build NYC Resource Corp.
(City University of New York (The))
Series 2014A
5.00%, 6/01/30-6/01/34 | | | 2,980 | | | | 3,392,916 | |
Build NYC Resource Corp.
(Metropolitan College of New York)
Series 2014
5.25%, 11/01/29 | | | 2,305 | | | | 2,437,676 | |
5.50%, 11/01/44 | | | 1,625 | | | | 1,662,521 | |
Build NYC Resource Corp.
(YMCA of Greater New York)
Series 2012
5.00%, 8/01/32 | | | 1,000 | | | | 1,108,230 | |
City of New York NY
Series 2007C
5.00%, 1/01/21 | | | 1,575 | | | | 1,579,457 | |
Series 2014A
5.00%, 8/01/31 | | | 2,000 | | | | 2,282,000 | |
Series 2014J
5.00%, 8/01/30 | | | 10,000 | | | | 11,446,800 | |
Series 2016C
5.00%, 8/01/32 | | | 5,000 | | | | 5,641,450 | |
Series 2016E
5.00%, 8/01/31 | | | 5,000 | | | | 5,706,600 | |
City of Newburgh NY
Series 2012A
5.25%, 6/15/28 | | | 1,065 | | | | 1,158,486 | |
5.50%, 6/15/32 | | | 1,320 | | | | 1,427,501 | |
County of Nassau NY
Series 2016A
5.00%, 1/01/34-1/01/38 | | | 5,345 | | | | 5,866,761 | |
Series 2016C
5.00%, 4/01/34-4/01/36 | | | 10,420 | | | | 11,454,334 | |
County of Onondaga NY
(Syracuse University)
Series 2011
5.00%, 12/01/28-12/01/29 | | | 2,135 | | | | 2,396,531 | |
| | |
| 102 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Dutchess County Local Development Corp.
(Health Quest Systems, Inc.)
Series 2014A
5.00%, 7/01/44 | | $ | 4,175 | | | $ | 4,539,102 | |
East Rochester Housing Authority
(St John’s Health Care Corp.)
Series 2010A
5.00%, 4/20/27 | | | 2,550 | | | | 2,808,774 | |
Erie County Fiscal Stability Authority
(Erie County Fiscal Stability Authority Sales Tax)
Series 2011C
5.00%, 12/01/28 | | | 7,260 | | | | 8,233,856 | |
Glen Cove Industrial Development Agency
Series 1992B
Zero Coupon, 10/15/19 (Pre-refunded/ETM) | | | 11,745 | | | | 11,215,183 | |
Haverstraw-Stony Point Central School District
AGM Series 2015
5.00%, 10/15/31-10/15/36 | | | 3,100 | | | | 3,514,132 | |
Hempstead Town Local Development Corp.
(Hofstra University)
Series 2011
5.00%, 7/01/28 | | | 650 | | | | 719,193 | |
Hempstead Town Local Development Corp.
(Molloy College)
Series 2014
5.00%, 7/01/34-7/01/39 | | | 2,945 | | | | 3,191,051 | |
Jefferson County Industrial Development Agency
(ReEnergy Black River LLC)
Series 2014
5.25%, 1/01/24(b) | | | 1,000 | | | | 937,510 | |
Long Island Power Authority
Series 2012B
5.00%, 9/01/27 | | | 2,500 | | | | 2,812,175 | |
Series 2014A
5.00%, 9/01/35 | | | 1,000 | | | | 1,123,210 | |
Series 2016B
5.00%, 9/01/33-9/01/36 | | | 11,550 | | | | 12,773,398 | |
Metropolitan Transportation Authority
Series 2011D
5.00%, 11/15/29 | | | 4,300 | | | | 4,841,757 | |
Series 2012F
5.00%, 11/15/27 | | | 7,070 | | | | 7,920,309 | |
Series 2014B
5.00%, 11/15/44 | | | 12,000 | | | | 12,982,440 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 103 | |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Metropolitan Transportation Authority
(Metropolitan Transportation Authority Ded Tax)
Series 2016A
5.25%, 11/15/34-11/15/35 | | $ | 15,740 | | | $ | 18,189,782 | |
Monroe County Industrial Development Agency
(Southview Towers LP)
Series 2000
6.25%, 2/01/31 | | | 1,130 | | | | 1,130,633 | |
Nassau County Industrial Development Agency
(Amsterdam House Continuing Care Retirement Community, Inc.)
Series 2014A
6.50%, 1/01/32 | | | 1,590 | | | | 1,598,538 | |
Series 2014C
2.00%, 1/01/49(c)(d)(e) | | | 572 | | | | 97,323 | |
Nassau County Local Economic Assistance Corp.
(South Nassau Communities Hospital)
Series 2012
5.00%, 7/01/31-7/01/37 | | | 6,195 | | | | 6,635,252 | |
New York City Municipal Water Finance Authority
Series 2009FF
5.00%, 6/15/27 | | | 15,110 | | | | 16,354,157 | |
Series 2013BB
5.00%, 6/15/46 | | | 5,000 | | | | 5,467,800 | |
New York City Transitional Finance Authority Building Aid Revenue
(New York City Transitional Finance Authority Building Aid Revenue State Lease)
Series 2015S
5.00%, 7/15/35 | | | 5,160 | | | | 5,726,929 | |
NATL Series 2006S-1
5.00%, 7/15/21 | | | 7,000 | | | | 7,033,950 | |
New York City Transitional Finance Authority Future Tax Secured Revenue
Series 2013I
5.00%, 5/01/32 (Pre-refunded/ETM) | | | 5 | | | | 5,822 | |
5.00%, 5/01/32-5/01/33 | | | 12,495 | | | | 14,030,953 | |
Series 2016F
5.00%, 2/01/32 | | | 10,000 | | | | 11,333,500 | |
New York City Trust for Cultural Resources
(American Museum of Natural History (The))
Series 2014A
5.00%, 7/01/33 | | | 4,080 | | | | 4,631,942 | |
| | |
| 104 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New York City Trust for Cultural Resources
(Whitney Museum of American Art)
Series 2011
5.00%, 7/01/31 | | $ | 9,675 | | | $ | 10,601,865 | |
New York Convention Center Development Corp.
(New York Convention Center Development Corp. Hotel Occupancy Tax)
Series 2015
5.00%, 11/15/34-11/15/35 | | | 15,220 | | | | 17,002,488 | |
New York Liberty Development Corp.
(4 World Trade Center LLC)
Series 2011
5.00%, 11/15/31 | | | 2,225 | | | | 2,472,331 | |
New York Liberty Development Corp.
(National Sports Museum)
Series 2006A
6.125%, 2/15/19(c)(d)(e) | | | 792 | | | | 8 | |
New York Power Authority
NATL Series 2007C
5.00%, 11/15/19-11/15/21 | | | 3,680 | | | | 3,821,331 | |
New York State Dormitory Authority
Series 2007A
5.00%, 5/01/22 (Pre-refunded/ETM) | | | 1,405 | | | | 1,428,365 | |
5.00%, 7/01/22 (Pre-refunded/ETM) | | | 1,200 | | | | 1,227,516 | |
Series 2007B
5.25%, 7/01/24 (Pre-refunded/ETM) | | | 475 | | | | 486,571 | |
Series 2008A
5.00%, 3/15/27 (Pre-refunded/ETM) | | | 2,350 | | | | 2,466,231 | |
5.00%, 7/01/29 (Pre-refunded/ETM) | | | 4,220 | | | | 4,455,392 | |
5.75%, 7/01/24 (Pre-refunded/ETM) | | | 5,165 | | | | 5,529,907 | |
New York State Dormitory Authority
(Barnard College)
Series 2015A
4.00%, 7/01/32 | | | 1,300 | | | | 1,354,600 | |
New York State Dormitory Authority
(Cabrini of Westchester)
Series 2006
5.10%, 2/15/26 | | | 1,695 | | | | 1,757,800 | |
New York State Dormitory Authority
(Cornell University)
Series 2008B
5.00%, 7/01/27 | | | 4,925 | | | | 5,515,015 | |
Series 2008C
5.00%, 7/01/29 | | | 2,000 | | | | 2,238,120 | |
Series 2009A
5.00%, 7/01/25 | | | 2,465 | | | | 2,692,988 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 105 | |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New York State Dormitory Authority
(Icahn School of Medicine at Mount Sinai)
Series 2015A
5.00%, 7/01/31-7/01/33 | | $ | 6,000 | | | $ | 6,633,390 | |
New York State Dormitory Authority
(Manhattan College)
AGC Series 2007A
5.00%, 7/01/27 | | | 2,445 | | | | 2,498,790 | |
New York State Dormitory Authority
(Mount Sinai Hospitals Group, Inc.)
Series 2010A
5.00%, 7/01/26 | | | 6,795 | | | | 7,379,234 | |
New York State Dormitory Authority
(New School (The))
Series 2016A
5.00%, 7/01/35-7/01/36 | | | 5,815 | | | | 6,348,174 | |
New York State Dormitory Authority
(New York University)
Series 2016A
5.00%, 7/01/36 | | | 2,000 | | | | 2,231,840 | |
New York State Dormitory Authority
(Northwell Health Obligated Group)
Series 2015A
5.00%, 5/01/33 | | | 5,000 | | | | 5,538,050 | |
New York State Dormitory Authority
(NYU Hospitals Center)
Series 2014
5.00%, 7/01/31 | | | 1,000 | | | | 1,095,510 | |
New York State Dormitory Authority
(Ozanam Hall of Queens Nursing Home, Inc.)
Series 2006
5.00%, 11/01/21 | | | 1,000 | | | | 1,001,580 | |
New York State Dormitory Authority
(Pratt Institute)
Series 2016
5.00%, 7/01/30 | | | 1,000 | | | | 1,146,490 | |
New York State Dormitory Authority
(Rochester Institute of Technology)
Series 2010
5.00%, 7/01/23-7/01/25 | | | 5,335 | | | | 5,878,973 | |
New York State Dormitory Authority
(St John’s University/NY)
Series 2015A
5.00%, 7/01/33-7/01/34 | | | 2,000 | | | | 2,210,330 | |
New York State Dormitory Authority
(State of New York Pers Income Tax)
Series 2015E
5.00%, 3/15/34 | | | 4,000 | | | | 4,491,680 | |
| | |
| 106 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New York State Dormitory Authority
(State University of New York Dormitory Fees)
Series 2013A
5.25%, 7/01/30 | | $ | 2,000 | | | $ | 2,306,500 | |
New York State Dormitory Authority
(State University of New York)
Series 2010A
5.00%, 7/01/27-7/01/31 | | | 9,285 | | | | 10,254,532 | |
Series 2011A
5.00%, 7/01/28 | | | 6,690 | | | | 7,494,272 | |
New York State Dormitory Authority
(Teachers College)
Series 2012
5.00%, 7/01/34 | | | 2,535 | | | | 2,824,979 | |
Series 2012A
5.00%, 7/01/31 | | | 1,200 | | | | 1,344,516 | |
New York State Energy Research & Development Authority
(Brooklyn Union Gas Co. (The))
NATL Series 1997A-1
0.963%, 12/01/20(f) | | | 1,000 | | | | 940,550 | |
New York State Energy Research & Development Authority
(Consolidated Edison Co. of New York, Inc.)
XLCA Series 2004A
1.295%, 1/01/39(f) | | | 4,975 | | | | 4,537,921 | |
New York State Energy Research & Development Authority
(New York State Electric & Gas Corp.)
NATL Series 2010C
1.666%, 4/01/34(f) | | | 900 | | | | 899,512 | |
New York State Environmental Facilities Corp.
(New York City Municipal Water Finance Authority)
Series 2010A
5.00%, 6/15/29 | | | 2,000 | | | | 2,221,420 | |
New York State Environmental Facilities Corp.
(State of New York SRF)
Series 2015D
4.00%, 9/15/34-9/15/35 | | | 11,250 | | | | 11,596,838 | |
New York State Thruway Authority
Series 2008A
5.00%, 3/15/26 (Pre-refunded/ETM) | | | 5,000 | | | | 5,334,950 | |
5.00%, 3/15/27 (Pre-refunded/ETM) | | | 6,000 | | | | 6,401,940 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 107 | |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
New York State Thruway Authority
(New York State Thruway Authority Gen Toll Road)
Series 2014
5.00%, 1/01/31-1/01/32 | | $ | 15,000 | | | $ | 16,756,400 | |
Series 2016A
5.00%, 1/01/36 | | | 5,080 | | | | 5,552,135 | |
New York State Thruway Authority
(State of New York Pers Income Tax)
Series 2010A
5.00%, 3/15/28 | | | 5,000 | | | | 5,504,700 | |
New York Transportation Development Corp.
(American Airlines, Inc.)
Series 2016
5.00%, 8/01/31 | | | 8,035 | | | | 8,317,591 | |
New York Transportation Development Corp.
(Laguardia Gateway Partners LLC)
Series 2016A
4.00%, 7/01/32-7/01/33 | | | 4,250 | | | | 4,081,020 | |
5.00%, 7/01/34-7/01/41 | | | 4,500 | | | | 4,636,680 | |
Onondaga Civic Development Corp.
Series 2012
5.00%, 7/01/42 (Pre-refunded/ETM) | | | 2,610 | | | | 3,003,066 | |
Series 2014A
5.125%, 7/01/31 (Pre-refunded/ETM) | | | 1,250 | | | | 1,362,575 | |
Onondaga County Industrial Development Agency
(Bristol-Myers Squibb Co.)
Series 1994
5.75%, 3/01/24 | | | 4,000 | | | | 4,756,600 | |
Otsego County Capital Resource Corp.
(Hartwick College)
Series 2015A
5.00%, 10/01/30-10/01/45 | | | 8,405 | | | | 8,683,610 | |
Port Authority of New York & New Jersey
Series 2010
5.00%, 7/15/31 | | | 13,000 | | | | 14,332,760 | |
Series 2013178
5.00%, 12/01/31 | | | 5,000 | | | | 5,592,800 | |
Series 2014
5.00%, 9/01/31 | | | 5,000 | | | | 5,543,700 | |
Port Authority of New York & New Jersey
(JFK International Air Terminal LLC)
NATL Series 1997
5.75%, 12/01/22 | | | 6,820 | | | | 6,949,989 | |
Seneca County Industrial Development Agency
Series 2007
5.00%, 10/01/27 (Pre-refunded/ETM) | | | 925 | | | | 955,127 | |
| | |
| 108 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Suffolk County Economic Development Corp.
Series 2011
5.00%, 7/01/28 (Pre-refunded/ETM) | | $ | 875 | | | $ | 989,546 | |
Suffolk County Economic Development Corp.
(Catholic Health Services of Long Island Obligated Group)
Series 2011
5.00%, 7/01/28 | | | 5,115 | | | | 5,542,103 | |
Series 2014C
5.00%, 7/01/31 | | | 2,500 | | | | 2,750,975 | |
Suffolk County Economic Development Corp.
(Peconic Landing at Southold, Inc.)
Series 2010
5.875%, 12/01/30 | | | 2,340 | | | | 2,542,504 | |
Syracuse Industrial Development Agency
(Carousel Center Co. LP)
Series 2016A
5.00%, 1/01/31-1/01/35 | | | 17,525 | | | | 18,779,864 | |
Triborough Bridge & Tunnel Authority
Series 2008D
5.00%, 11/15/26 | | | 10,000 | | | | 10,700,100 | |
Series 2011A
5.00%, 1/01/28 | | | 5,000 | | | | 5,632,550 | |
Series 2013C
5.00%, 11/15/32 | | | 5,000 | | | | 5,733,250 | |
Troy Capital Resource Corp.
(Rensselaer Polytechnic Institute)
Series 2010A
5.00%, 9/01/30 | | | 3,000 | | | | 3,289,620 | |
Ulster County Industrial Development Agency
(Kingston Regional Senior Living Corp.)
Series 2007A
6.00%, 9/15/27 | | | 1,175 | | | | 1,184,283 | |
Utility Debt Securitization Authority
Series 2013T
5.00%, 12/15/31 | | | 10,000 | | | | 11,546,300 | |
Westchester County Healthcare Corp./NY
Series 2010B
6.00%, 11/01/30 (Pre-refunded/ETM) | | | 870 | | | | 1,007,556 | |
Westchester County Healthcare Corp./NY
(Westchester County Health Care Corp. Obligated Group)
Series 2010B
6.00%, 11/01/30 | | | 130 | | | | 144,725 | |
Westchester County Local Development Corp.
(Kendal on Hudson)
Series 2013
5.00%, 1/01/34 | | | 1,800 | | | | 1,858,878 | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 109 | |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Westchester County Local Development Corp.
(Westchester County Health Care Corp. Obligated Group)
Series 2016
5.00%, 11/01/46 | | $ | 7,825 | | | $ | 8,011,079 | |
| | | | | | | | |
| | | | | | | 576,220,837 | |
| | | | | | | | |
Florida – 0.1% | | | | | | | | |
Marshall Creek Community Development District
Series 2016
6.32%, 5/01/45 | | | 45 | | | | 41,923 | |
Marshall Creek Community Development District
(Marshall Creek Community Development District 2002A)
Series 2002
6.625%, 5/01/32(c)(d)(e) | | | 705 | | | | 663,828 | |
| | | | | | | | |
| | | | | | | 705,751 | |
| | | | | | | | |
Ohio – 0.2% | | | | | | | | |
Columbiana County Port Authority
(Apex Environmental LLC)
Series 2004
0.00%, 8/01/25(c) | | | 1,200 | | | | 11,400 | |
Series 2014
0.00%, 8/01/25(c) | | | 162 | | | | 1,535 | |
Ohio Water Development Authority Water Pollution Control Loan Fund
(FirstEnergy Nuclear Generation LLC)
Series 2016A
4.375%, 6/01/33 | | | 1,500 | | | | 1,370,145 | |
| | | | | | | | |
| | | | | | | 1,383,080 | |
| | | | | | | | |
Puerto Rico – 0.7% | | | | | | | | |
Puerto Rico Housing Finance Authority
(Puerto Rico Housing Finance Authority Cap Fd Prog)
Series 2003
5.00%, 12/01/20 | | | 1,795 | | | | 1,864,736 | |
Series 2008
5.125%, 12/01/27 | | | 1,495 | | | | 1,568,434 | |
Puerto Rico Industrial Tourist Educational Medical & Envirml Ctl Facs Fing Auth
(Sistema Universitario Ana G Mendez Incorporado)
Series 2012
5.125%, 4/01/32 | | | 1,000 | | | | 927,190 | |
| | | | | | | | |
| | | | | | | 4,360,360 | |
| | | | | | | | |
| | |
| 110 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
| | | | | | | | |
| | |
Principal
Amount
(000) | | | U.S. $ Value | |
| |
| | | | | | | | |
Texas – 1.0% | | | | | | | | |
Texas Private Activity Bond Surface Transportation Corp.
(LBJ Infrastructure Group LLC)
Series 2010
7.00%, 6/30/40 | | $ | 2,700 | | | $ | 3,086,532 | |
7.50%, 6/30/32 | | | 1,225 | | | | 1,440,686 | |
Texas Private Activity Bond Surface Transportation Corp.
(NTE Mobility Partners LLC)
Series 2009
6.875%, 12/31/39 | | | 1,350 | | | | 1,533,883 | |
| | | | | | | | |
| | | | | | | 6,061,101 | |
| | | | | | | | |
Total Long-Term Municipal Bonds
(cost $577,187,578) | | | | | | | 588,731,129 | |
| | | | | | | | |
| | |
Short-Term Municipal Notes – 1.1% | | | | | | | | |
New York State Housing Finance Agency
(92nd & 3rd Associates LLC)
Series 2014A
0.54%, 11/01/47(g)
(cost $6,300,000) | | | 6,300 | | | | 6,300,000 | |
| | | | | | | | |
| | |
Total Municipal Obligations
(cost $583,487,578) | | | | | | | 595,031,129 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
SHORT-TERM INVESTMENTS – 1.4% | | | | | | | | |
Investment Companies – 1.4% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.30%(h)(i)
(cost $8,721,288) | | | 8,721,288 | | | | 8,721,288 | |
| | | | | | | | |
| | |
Total Investments – 99.1%
(cost $592,208,866) | | | | | | | 603,752,417 | |
Other assets less liabilities – 0.9% | | | | | | | 5,489,458 | |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 609,241,875 | |
| | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 111 | |
AB New York Portfolio—Portfolio of Investments
| (a) | | When-Issued or delayed delivery security. |
| (b) | | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.15% of net assets as of November 30, 2016, are considered illiquid and restricted. Additional information regarding such securities follows: |
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Jefferson County Industrial Development Agency
(ReEnergy Black River LLC)
Series 2014
5.25%, 1/01/24 | | | 11/13/14 | | | $ | 1,000,000 | | | $ | 937,510 | | | | 0.15 | % |
| (d) | | Non-income producing security. |
| (f) | | An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of November 30, 2016 and the aggregate market value of these securities amounted to $6,377,983 or 1.05% of net assets. |
| (g) | | Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks. |
| (h) | | Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end. |
| (i) | | To obtain a copy of the fund’s financial statements, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
As of November 30, 2016, 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 5.9% and 0.0%, respectively.
Glossary:
| AGC | | – Assured Guaranty Corporation |
| AGM | | – Assured Guaranty Municipal |
| ETM | | – Escrowed to Maturity |
| NATL | | – National Interstate Corporation |
| SRF | | – State Revolving Fund |
| XLCA | | – XL Capital Assurance Inc. |
See notes to financial statements.
| | |
| 112 | | • AB MUNICIPAL INCOME FUND |
AB New York Portfolio—Portfolio of Investments
STATEMENT OF ASSETS & LIABILITIES
November 30, 2016 (unaudited)
| | | | | | | | |
| | | AB California | | | AB High Income
Municipal | |
| Assets | | | | | | | | |
Investments in securities, at value | | | | | | | | |
Unaffiliated issuers (cost $663,485,540 and $2,544,895,336, respectively) | | $ | 696,435,451 | | | $ | 2,543,730,917 | |
Affiliated issuers (cost $6,289,443 and $10,554,719, respectively) | | | 6,289,443 | | | | 10,554,719 | |
Interest receivable | | | 6,909,577 | | | | 41,719,027 | |
Unrealized appreciation on interest rate swaps | | | 1,320,884 | | | | 1,862,109 | |
Receivable for capital stock sold | | | 861,961 | | | | 9,700,689 | |
Affiliated dividends receivable | | | 467 | | | | 1,526 | |
Receivable for investment securities sold | | | – 0 | – | | | 27,536,918 | |
| | | | | | | | |
Total assets | | | 711,817,783 | | | | 2,635,105,905 | |
| | | | | | | | |
| Liabilities | | | | | | | | |
Payable for investment securities purchased | | | 10,249,891 | | | | 3,766,875 | |
Payable for floating rate notes issued(a) | | | 4,445,000 | | | | 136,730,000 | |
Unrealized depreciation on interest rate swaps | | | 4,210,552 | | | | – 0 | – |
Payable for capital stock redeemed | | | 3,842,441 | | | | 12,343,673 | |
Dividends payable | | | 382,695 | | | | 2,078,528 | |
Advisory fee payable | | | 239,748 | | | | 1,065,569 | |
Distribution fee payable | | | 177,257 | | | | 459,740 | |
Transfer Agent fee payable | | | 6,588 | | | | 6,337 | |
Administrative fee payable | | | 5,207 | | | | 3,123 | |
Other liabilities | | | 10,856 | | | | 326,458 | |
Accrued expenses | | | 79,430 | | | | 50,204 | |
| | | | | | | | |
Total liabilities | | | 23,649,665 | | | | 156,830,507 | |
| | | | | | | | |
Net Assets | | $ | 688,168,118 | | | $ | 2,478,275,398 | |
| | | | | | | | |
| Composition of Net Assets | | | | | | | | |
Capital stock, at par | | $ | 62,729 | | | $ | 227,606 | |
Additional paid-in capital | | | 663,142,089 | | | | 2,508,876,299 | |
Undistributed (distributions in excess of) net investment income | | | (157,388 | ) | | | 1,252,257 | |
Accumulated net realized loss on investment transactions | | | (4,939,555 | ) | | | (32,778,454 | ) |
Net unrealized appreciation on investments | | | 30,060,243 | | | | 697,690 | |
| | | | | | | | |
| | $ | 688,168,118 | | | $ | 2,478,275,398 | |
| | | | | | | | |
| (a) | | Represents short-term floating rate certificates issued by tender option bond trusts (see Note I). |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 113 | |
Statement of Assets & Liabilities
Net Asset Value Per Share—54,300,000,000 shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
| AB California Portfolio | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| Class A | | $ | 471,258,125 | | | | 42,955,954 | | | $ | 10.97 | * |
| |
| Class B | | $ | 82,141 | | | | 7,485 | | | $ | 10.97 | |
| |
| Class C | | $ | 90,115,242 | | | | 8,216,272 | | | $ | 10.97 | |
| |
| Advisor Class | | $ | 126,712,610 | | | | 11,549,304 | | | $ | 10.97 | |
| |
| |
| AB High Income Municipal Portfolio | | | | |
| |
| Class A | | $ | 821,653,240 | | | | 75,430,978 | | | $ | 10.89 | * |
| |
| Class C | | $ | 326,510,967 | | | | 29,990,981 | | | $ | 10.89 | |
| |
| Advisor Class | | $ | 1,330,111,191 | | | | 122,183,974 | | | $ | 10.89 | |
| |
| * | | The maximum offering price per share for Class A of AB California Portfolio and AB High Income Municipal Portfolio were $11.31 and $11.23, respectively, which reflects a sales charge of 3.00%. |
See notes to financial statements.
| | |
| 114 | | • AB MUNICIPAL INCOME FUND |
Statement of Assets & Liabilities
| | | | | | | | |
| | | AB National | | | AB New York | |
| Assets | | | | | | | | |
Investments in securities, at value | | | | | | | | |
Unaffiliated issuers (cost $1,242,518,205 and $583,487,578, respectively) | | $ | 1,257,239,074 | | | $ | 595,031,129 | |
Affiliated issuers (cost $10,132,541 and $8,721,288, respectively) | | | 10,132,541 | | | | 8,721,288 | |
Interest receivable | | | 16,580,361 | | | | 7,796,936 | |
Receivable for investment securities sold | | | 10,973,594 | | | | – 0 | – |
Receivable for capital stock sold | | | 6,032,564 | | | | 1,519,551 | |
Affiliated dividends receivable | | | 6,894 | | | | 420 | |
| | | | | | | | |
Total assets | | | 1,300,965,028 | | | | 613,069,324 | |
| | | | | | | | |
| Liabilities | | | | | | | | |
Payable for investment securities purchased | | | 28,505,647 | | | | 1,613,655 | |
Payable for capital stock redeemed | | | 7,692,615 | | | | 1,590,347 | |
Payable for floating rate notes issued(a) | | | 5,100,000 | | | | – 0 | – |
Dividends payable | | | 577,536 | | | | 145,439 | |
Advisory fee payable | | | 436,819 | | | | 203,160 | |
Distribution fee payable | | | 257,184 | | | | 168,655 | |
Transfer Agent fee payable | | | 15,204 | | | | 7,235 | |
Administrative fee payable | | | 7,906 | | | | 7,224 | |
Other liabilities | | | 13,698 | | | | – 0 | – |
Accrued expenses | | | 86,444 | | | | 91,734 | |
| | | | | | | | |
Total liabilities | | | 42,693,053 | | | | 3,827,449 | |
| | | | | | | | |
Net Assets | | $ | 1,258,271,975 | | | $ | 609,241,875 | |
| | | | | | | | |
| Composition of Net Assets | | | | | | | | |
Capital stock, at par | | $ | 125,828 | | | $ | 62,760 | |
Additional paid-in capital | | | 1,269,522,964 | | | | 614,428,444 | |
Distributions in excess of net investment income | | | (460,294 | ) | | | (169,022 | ) |
Accumulated net realized loss on investment transactions | | | (25,637,392 | ) | | | (16,623,858 | ) |
Net unrealized appreciation on investments | | | 14,720,869 | | | | 11,543,551 | |
| | | | | | | | |
| | $ | 1,258,271,975 | | | $ | 609,241,875 | |
| | | | | | | | |
| (a) | | Represents short-term floating rate certificates issued by tender option bond trusts (see Note I). |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 115 | |
Statement of Assets & Liabilities
Net Asset Value Per Share—54,300,000,000 shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
| AB National Portfolio | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| Class A | | $ | 625,911,926 | | | | 62,586,029 | | | $ | 10.00 | * |
| |
| Class B | | $ | 470,300 | | | | 47,074 | | | $ | 9.99 | |
| |
| Class C | | $ | 145,561,624 | | | | 14,570,093 | | | $ | 9.99 | |
| |
| Advisor Class | | $ | 486,328,125 | | | | 48,624,517 | | | $ | 10.00 | |
| |
| | | |
| AB New York Portfolio | | | | | | | | | |
| |
| Class A | | $ | 456,656,952 | | | | 47,038,518 | | | $ | 9.71 | * |
| |
| Class B | | $ | 924,920 | | | | 95,401 | | | $ | 9.70 | |
| |
| Class C | | $ | 84,303,112 | | | | 8,689,474 | | | $ | 9.70 | |
| |
| Advisor Class | | $ | 67,356,891 | | | | 6,936,604 | | | $ | 9.71 | |
| |
| * | | The maximum offering price per share for Class A of AB National Portfolio and AB New York Portfolio were $10.31 and $10.01, respectively, which reflects a sales charge of 3.00%. |
See notes to financial statements.
| | |
| 116 | | • AB MUNICIPAL INCOME FUND |
Statement of Assets & Liabilities
STATEMENT OF OPERATIONS
Six Months Ended November 30, 2016 (unaudited)
| | | | | | | | |
| | | AB California | | | AB High Income
Municipal | |
| Investment Income | | | | | | | | |
Interest | | $ | 14,180,596 | | | $ | 63,794,162 | |
Dividends – Affiliated issuers | | | 10,133 | | | | 108,987 | |
| | | | | | | | |
Total income | | | 14,190,729 | | | | 63,903,149 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 1,605,312 | | | | 6,790,391 | |
Distribution fee – Class A | | | 621,276 | | | | 1,127,195 | |
Distribution fee – Class B | | | 438 | | | | – 0 | – |
Distribution fee – Class C | | | 464,547 | | | | 1,772,080 | |
Transfer agency – Class A | | | 67,438 | | | | 129,526 | |
Transfer agency – Class B | | | 25 | | | | – 0 | – |
Transfer agency – Class C | | | 12,690 | | | | 51,014 | |
Transfer agency – Advisor Class | | | 16,738 | | | | 212,681 | |
Custodian | | | 84,933 | | | | 132,472 | |
Administrative | | | 28,748 | | | | 28,794 | |
Audit and tax | | | 27,065 | | | | 31,684 | |
Legal | | | 17,511 | | | | 17,511 | |
Printing | | | 16,869 | | | | 37,098 | |
Registration fees | | | 14,605 | | | | 65,721 | |
Directors’ fees | | | 11,599 | | | | 11,580 | |
Miscellaneous | | | 11,315 | | | | 33,443 | |
| | | | | | | | |
Total expenses before interest expense | | | 3,001,109 | | | | 10,441,190 | |
Interest expense | | | 29,027 | | | | 1,726,855 | |
| | | | | | | | |
Total expenses | | | 3,030,136 | | | | 12,168,045 | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (139,247 | ) | | | (98,783 | ) |
| | | | | | | | |
Net expenses | | | 2,890,889 | | | | 12,069,262 | |
| | | | | | | | |
Net investment income | | | 11,299,840 | | | | 51,833,887 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions | | | 328,661 | | | | (2,396,189 | ) |
Swaps | | | 158,680 | | | | 3,926,495 | |
Net change in unrealized appreciation/depreciation of: | | | | | | | | |
Investments | | | (37,677,977 | ) | | | (183,822,971 | ) |
Swaps | | | 635,557 | | | | (748,512 | ) |
| | | | | | | | |
Net loss on investment transactions | | | (36,555,079 | ) | | | (183,041,177 | ) |
| | | | | | | | |
Net Decrease in Net Assets from Operations | | $ | (25,255,239 | ) | | $ | (131,207,290 | ) |
| | | | | | | | |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 117 | |
Statement of Operations
| | | | | | | | |
| | | AB National | | | AB New York | |
| Investment Income | | | | | | | | |
Interest | | $ | 23,556,318 | | | $ | 10,885,365 | |
Dividends – Affiliated issuers | | | 78,213 | | | | 19,110 | |
| | | | | | | | |
Total income | | | 23,634,531 | | | | 10,904,475 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 2,951,656 | | | | 1,405,097 | |
Distribution fee – Class A | | | 832,626 | | | | 593,799 | |
Distribution fee – Class B | | | 2,575 | | | | 5,259 | |
Distribution fee – Class C | | | 748,816 | | | | 434,347 | |
Transfer agency – Class A | | | 133,132 | | | | 82,350 | |
Transfer agency – Class B | | | 104 | | | | 183 | |
Transfer agency – Class C | | | 29,973 | | | | 15,066 | |
Transfer agency – Advisor Class | | | 98,936 | | | | 10,632 | |
Custodian | | | 112,998 | | | | 79,499 | |
Registration fees | | | 60,171 | | | | 13,457 | |
Printing | | | 31,224 | | | | 17,202 | |
Audit and tax | | | 27,765 | | | | 28,634 | |
Administrative | | | 27,341 | | | | 30,670 | |
Legal | | | 17,511 | | | | 18,109 | |
Directors’ fees | | | 11,599 | | | | 11,599 | |
Miscellaneous | | | 18,613 | | | | 11,719 | |
| | | | | | | | |
Total expenses before interest expense | | | 5,105,040 | | | | 2,757,622 | |
Interest expense | | | 32,621 | | | | – 0 | – |
| | | | | | | | |
Total expenses | | | 5,137,661 | | | | 2,757,622 | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (304,688 | ) | | | (176,468 | ) |
| | | | | | | | |
Net expenses | | | 4,832,973 | | | | 2,581,154 | |
| | | | | | | | |
Net investment income | | | 18,801,558 | | | | 8,323,321 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions | | | (1,139,771 | ) | | | (683,073 | ) |
Swaps | | | 737,262 | | | | 856,966 | |
Net change in unrealized appreciation/depreciation of: | | | | | | | | |
Investments | | | (65,045,946 | ) | | | (30,759,426 | ) |
Swaps | | | (431,239 | ) | | | (732,703 | ) |
| | | | | | | | |
Net loss on investment transactions | | | (65,879,694 | ) | | | (31,318,236 | ) |
| | | | | | | | |
Net Decrease in Net Assets from Operations | | $ | (47,078,136 | ) | | $ | (22,994,915 | ) |
| | | | | | | | |
See notes to financial statements.
| | |
| 118 | | • AB MUNICIPAL INCOME FUND |
Statement of Operations
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | AB California | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 11,299,840 | | | $ | 21,006,121 | |
Net realized gain (loss) on investment transactions | | | 487,341 | | | | (2,781,262 | ) |
Net change in unrealized appreciation/depreciation of investments | | | (37,042,420 | ) | | | 16,731,728 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (25,255,239 | ) | | | 34,956,587 | |
| Dividends to Shareholders from | | | | | | | | |
Net investment income | | | | | | | | |
Class A | | | (7,873,542 | ) | | | (15,173,778 | ) |
Class B | | | (1,060 | ) | | | (3,548 | ) |
Class C | | | (1,123,717 | ) | | | (2,237,220 | ) |
Advisor Class | | | (2,109,216 | ) | | | (2,922,910 | ) |
| Capital Stock Transactions | | | | | | | | |
Net increase | | | 40,037,196 | | | | 78,793,133 | |
| | | | | | | | |
Total increase | | | 3,674,422 | | | | 93,412,264 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 684,493,696 | | | | 591,081,432 | |
| | | | | | | | |
End of period (including distributions in excess of net investment income of ($157,388) and ($349,693), respectively) | | $ | 688,168,118 | | | $ | 684,493,696 | |
| | | | | | | | |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 119 | |
Statement of Changes in Net Assets
| | | | | | | | |
| | | AB High Income Municipal | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 51,833,887 | | | $ | 92,740,652 | |
Net realized gain on investment transactions | | | 1,530,306 | | | | 12,160,658 | |
Net change in unrealized appreciation/depreciation of investments | | | (184,571,483 | ) | | | 81,726,099 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (131,207,290 | ) | | | 186,627,409 | |
| Dividends to Shareholders from | | | | | | | | |
Net investment income | | | | | | | | |
Class A | | | (16,992,749 | ) | | | (31,910,722 | ) |
Class C | | | (5,356,832 | ) | | | (10,993,891 | ) |
Advisor Class | | | (29,747,944 | ) | | | (52,155,034 | ) |
| Capital Stock Transactions | | | | | | | | |
Net increase | | | 124,412,047 | | | | 383,204,558 | |
| | | | | | | | |
Total increase (decrease) | | | (58,892,768 | ) | | | 474,772,320 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 2,537,168,166 | | | | 2,062,395,846 | |
| | | | | | | | |
End of period (including undistributed net investment income of $1,252,257 and $1,515,895, respectively) | | $ | 2,478,275,398 | | | $ | 2,537,168,166 | |
| | | | | | | | |
See notes to financial statements.
| | |
| 120 | | • AB MUNICIPAL INCOME FUND |
Statement of Changes in Net Assets
| | | | | | | | |
| | | AB National | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 18,801,558 | | | $ | 36,231,763 | |
Net realized gain (loss) on investment transactions | | | (402,509 | ) | | | 439,728 | |
Net change in unrealized appreciation/depreciation of investments | | | (65,477,185 | ) | | | 33,886,330 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (47,078,136 | ) | | | 70,557,821 | |
| Dividends to Shareholders from | | | | | | | | |
Net investment income | | | | | | | | |
Class A | | | (9,567,331 | ) | | | (20,152,212 | ) |
Class B | | | (5,499 | ) | | | (18,786 | ) |
Class C | | | (1,592,603 | ) | | | (3,394,518 | ) |
Advisor Class | | | (7,723,517 | ) | | | (12,920,365 | ) |
| Capital Stock Transactions | | | | | | | | |
Net increase | | | 68,457,912 | | | | 160,723,013 | |
| | | | | | | | |
Total increase | | | 2,490,826 | | | | 194,794,953 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 1,255,781,149 | | | | 1,060,986,196 | |
| | | | | | | | |
End of period (including distributions in excess of net investment income of ($460,294) and ($372,902), respectively) | | $ | 1,258,271,975 | | | $ | 1,255,781,149 | |
| | | | | | | | |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 121 | |
Statement of Changes in Net Assets
| | | | | | | | |
| | | AB New York | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 8,323,321 | | | $ | 16,054,386 | |
Net realized gain on investment transactions | | | 173,893 | | | | 1,083,979 | |
Net change in unrealized appreciation/depreciation of investments | | | (31,492,129 | ) | | | 14,257,414 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | (22,994,915 | ) | | | 31,395,779 | |
| Dividends to Shareholders from | | | | | | | | |
Net investment income | | | | | | | | |
Class A | | | (6,527,495 | ) | | | (13,144,245 | ) |
Class B | | | (10,534 | ) | | | (30,819 | ) |
Class C | | | (868,923 | ) | | | (1,714,306 | ) |
Advisor Class | | | (920,769 | ) | | | (1,253,301 | ) |
| Capital Stock Transactions | | | | | | | | |
Net increase | | | 43,882,345 | | | | 50,468,492 | |
| | | | | | | | |
Total increase | | | 12,559,709 | | | | 65,721,600 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 596,682,166 | | | | 530,960,566 | |
| | | | | | | | |
End of period (including distributions in excess of net investment income of ($169,022) and ($164,622), respectively) | | $ | 609,241,875 | | | $ | 596,682,166 | |
| | | | | | | | |
See notes to financial statements.
| | |
| 122 | | • AB MUNICIPAL INCOME FUND |
Statement of Changes in Net Assets
STATEMENT OF CASH FLOWS
For the Six Months Ended November 30, 2016 (unaudited)
| | | | | | | | |
| | | AB High Income Municipal* | |
| Cash flows from operating activities | | | | | | | | |
Net decrease in net assets from operations | | | | | | $ | (131,207,290 | ) |
| Reconciliation of net decrease in net assets from operations to net decrease in cash from operating activities: | | | | | | | | |
Purchases of long-term investments | | $ | (613,663,355 | ) | | | | |
Purchases of short-term investments | | | (361,699,965 | ) | | | | |
Proceeds from disposition of long-term investments | | | 388,511,717 | | | | | |
Proceeds from disposition of short-term investments | | | 543,077,172 | | | | | |
Net realized gain on investment transactions | | | (1,530,306 | ) | | | | |
Net change in unrealized appreciation/depreciation on investment transactions | | | 184,571,483 | | | | | |
Net accretion of bond discount and amortization of bond premium | | | 5,323,283 | | | | | |
Increase in receivable for investments sold | | | (25,128,801 | ) | | | | |
Increase in interest receivable | | | (2,425,493 | ) | | | | |
Decrease in affiliated dividends receivable | | | 49,983 | | | | | |
Decrease in cash collateral due from broker | | | 3,305,319 | | | | | |
Decrease in payable for investments purchased | | | (79,758,477 | ) | | | | |
Decrease in cash collateral due to broker | | | (520,000 | ) | | | | |
Increase in advisory fee payable | | | 137,050 | | | | | |
Decrease in administrative fee payable | | | (2,666 | ) | | | | |
Decrease in Transfer Agent fee payable | | | (6,812 | ) | | | | |
Increase in distribution fee payable | | | 6,899 | | | | | |
Decrease in other liabilities | | | (335,956 | ) | | | | |
Decrease in accrued expenses | | | (141,650 | ) | | | | |
Proceeds on swaps, net | | | 1,876,928 | | | | | |
Proceeds for exchange-traded derivatives settlements | | | 44,321 | | | | | |
| | | | | | | | |
Total adjustments | | | | | | | 41,690,674 | |
| | | | | | | | |
Net decrease in cash from operating activities | | | | | | $ | (89,516,616 | ) |
| | | | | | | | |
| Cash flows from financing activities | | | | | | | | |
Subscriptions of capital stock, net | | | 122,573,749 | | | | | |
Cash dividends paid (net of dividend reinvestments)** | | | (21,557,133 | ) | | | | |
Repayment of floating rate notes issued | | | (11,500,000 | ) | | | | |
| | | | | | | | |
Net increase in cash from financing activities | | | | | | | 89,516,616 | |
| | | | | | | | |
Net increase in cash | | | | | | | — | |
Net change in cash | | | | | | | | |
Cash at beginning of period | | | | | | | — | |
| | | | | | | | |
Cash at end of period | | | | | | $ | — | |
| | | | | | | | |
** Reinvestment of dividends | | $ | 30,630,187 | | | | | |
Supplemental disclosure of cash flow information: | | | | | | | | |
Interest expense paid during the period | | $ | 1,726,855 | | | | | |
| * | | In accordance with U.S. GAAP, the Portfolio has included a Statement of Cash Flows as a result of its substantial investments in floating rate notes and Level 3 securities throughout the period. |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 123 | |
Statement of Cash Flows
NOTES TO FINANCIAL STATEMENTS
November 30, 2016 (unaudited)
NOTE A
Significant Accounting Policies
AB Municipal Income Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Fund, which is a Maryland corporation, operates as a series company currently comprised of the diversified AB California Portfolio, AB High Income Municipal Portfolio, AB National Portfolio and AB New York Portfolio (the “Portfolios”). Each series is considered to be a separate entity for financial reporting and tax purposes. The AB California Portfolio, AB National Portfolio and AB New York Portfolio offer Class A, Class B, Class C and Advisor Class shares. The AB High Income Municipal Portfolio offers Class A, Class C and Advisor Class shares. Class A shares are sold with a front-end sales charge of up to 3% for purchases up to $500,000; purchases of $500,000 or more are not subject to a sales charge. 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 B shares are currently sold with a contingent deferred sales charge which declines from 3% to zero depending on the period of time the shares are held. Effective January 31, 2009, sales of Class B shares of the Portfolios to new investors were suspended. Class B shares will only be issued (i) upon the exchange of Class B shares from another AB Mutual Fund, (ii) for purposes of dividend reinvestment, (iii) through the Portfolios’ Automatic Investment Program (the “Program”) for accounts that established the Program prior to January 31, 2009, and (iv) for purchases of additional shares by Class B shareholders as of January 31, 2009. The ability to establish a new Program for accounts containing Class B shares was suspended as of January 31, 2009. Class B shares will automatically convert to Class A shares six years after the end of the calendar month of purchase. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All four 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. Each Portfolio 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 Portfolios.
| | |
| 124 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
1. Security Valuation
Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Fund’s Board of Directors (the “Board”).
In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g. last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 125 | |
Notes to Financial Statements
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 Portfolios may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Portfolios value their 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 Portfolios may frequently value many of their 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 Portfolios 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 Portfolios. Unobservable inputs reflect the Portfolios’ 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 Portfolios’ own assumptions in determining the fair value of investments) |
| | |
| 126 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
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. In addition, non-agency rated investments 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 tables summarize the valuation of the Portfolios’ investments by the above fair value hierarchy levels as of November 30, 2016:
| | | | | | | | | | | | | | | | |
| AB California Portfolio | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Long-Term Municipal Bonds | | $ | – 0 | – | | $ | 648,081,412 | | | $ | 48,354,039 | | | $ | 696,435,451 | |
Short-Term Investments | | | 6,289,443 | | | | – 0 | – | | | – 0 | – | | | 6,289,443 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 6,289,443 | | | | 648,081,412 | | | | 48,354,039 | | | | 702,724,894 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Interest Rate Swaps | | | – 0 | – | | | 1,320,884 | | | | – 0 | – | | | 1,320,884 | |
Liabilities: | | | | | | | | | | | | | | | | |
Interest Rate Swaps | | | – 0 | – | | | (4,210,552 | ) | | | – 0 | – | | | (4,210,552 | ) |
| | | | | | | | | | | | | | | | |
Total(b) | | $ | 6,289,443 | | | $ | 645,191,744 | | | $ | 48,354,039 | | | $ | 699,835,226 | |
| | | | | | | | | | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 127 | |
Notes to Financial Statements
| | | | | | | | | | | | | | | | |
| AB High Income Municipal Portfolio | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Long-Term Municipal Bonds: | | | | | | | | | | | | | | | | |
Alabama | | $ | – 0 | – | | $ | 45,115,000 | | | $ | 3,358,719 | | | $ | 48,473,719 | |
Alaska | | | – 0 | – | | | – 0 | – | | | 5,318,996 | | | | 5,318,996 | |
Arizona | | | – 0 | – | | | 16,121,820 | | | | 18,144,789 | | | | 34,266,609 | |
California | | | – 0 | – | | | 158,934,740 | | | | 59,883,728 | | | | 218,818,468 | |
Colorado | | | – 0 | – | | | 18,824,645 | | | | 14,594,348 | | | | 33,418,993 | |
Florida | | | – 0 | – | | | 91,410,403 | | | | 33,669,416 | | | | 125,079,819 | |
Guam | | | – 0 | – | | | 973,272 | | | | 1,152,200 | | | | 2,125,472 | |
Idaho | | | – 0 | – | | | 4,500,600 | | | | 8,330,027 | | | | 12,830,627 | |
Illinois | | | – 0 | – | | | 226,192,573 | | | | 77,133,471 | | | | 303,326,044 | |
Indiana | | | – 0 | – | | | 53,593,758 | | | | 1,857,760 | | | | 55,451,518 | |
Kansas | | | – 0 | – | | | 19,779 | | | | 1,999,557 | | | | 2,019,336 | |
Kentucky | | | – 0 | – | | | 20,242,487 | | | | 19,348,198 | | | | 39,590,685 | |
Louisiana | | | – 0 | – | | | 21,528,144 | | | | 20,925,666 | | | | 42,453,810 | |
Maryland | | | – 0 | – | | | 5,603,219 | | | | 5,475,892 | | | | 11,079,111 | |
Massachusetts | | | – 0 | – | | | 69,145,319 | | | | 5,991,350 | | | | 75,136,669 | |
Michigan | | | – 0 | – | | | 100,294,522 | | | | 27,556,055 | | | | 127,850,577 | |
Missouri | | | – 0 | – | | | 20,250,137 | | | | 9,379,003 | | | | 29,629,140 | |
New York | | | – 0 | – | | | 187,401,330 | | | | 38,998,559 | | | | 226,399,889 | |
North Carolina | | | – 0 | – | | | – 0 | – | | | 3,025,567 | | | | 3,025,567 | |
North Dakota | | | – 0 | – | | | – 0 | – | | | 4,643,982 | | | | 4,643,982 | |
Ohio | | | – 0 | – | | | 64,725,100 | | | | 18,358,346 | | | | 83,083,446 | |
Oklahoma | | | – 0 | – | | | – 0 | – | | | 7,061,366 | | | | 7,061,366 | |
Oregon | | | – 0 | – | | | 17,980,100 | | | | 8,990,957 | | | | 26,971,057 | |
Pennsylvania | | | – 0 | – | | | 65,944,880 | | | | 44,088,200 | | | | 110,033,080 | |
Rhode Island | | | – 0 | – | | | 6,685,300 | | | | 9,693,655 | | | | 16,378,955 | |
Tennessee | | | – 0 | – | | | 13,806,334 | | | | 26,674,286 | | | | 40,480,620 | |
Texas | | | – 0 | – | | | 228,380,070 | | | | 51,693,043 | | | | 280,073,113 | |
Utah | | | – 0 | – | | | 4,812,801 | | | | 8,205,110 | | | | 13,017,911 | |
Vermont | | | – 0 | – | | | – 0 | – | | | 3,284,233 | | | | 3,284,233 | |
Virginia | | | – 0 | – | | | 92,960,015 | | | | 15,086,293 | | | | 108,046,308 | |
Washington | | | – 0 | – | | | 61,058,766 | | | | 40,406,778 | | | | 101,465,544 | |
Wisconsin | | | – 0 | – | | | 17,880,200 | | | | 19,775,414 | | | | 37,655,614 | |
Other | | | – 0 | – | | | 312,982,199 | | | | – 0 | – | | | 312,982,199 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Investment Companies | | | 10,554,719 | | | | – 0 | – | | | – 0 | – | | | 10,554,719 | |
Corporates – Investment Grade | | | – 0 | – | | | – 0 | – | | | 2,258,440 | | | | 2,258,440 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 10,554,719 | | | | 1,927,367,513 | | | | 616,363,404 | | | | 2,554,285,636 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Interest Rate Swaps | | | – 0 | – | | | 1,862,109 | | | | – 0 | – | | | 1,862,109 | |
Liabilities | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total(b) | | $ | 10,554,719 | | | $ | 1,929,229,622 | | | $ | 616,363,404 | | | $ | 2,556,147,745 | |
| | | | | | | | | | | | | | | | |
| | |
| 128 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
| | | | | | | | | | | | | | | | |
| AB National Portfolio | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Municipal Obligations: | | | | | | | | | | | | | | | | |
Long-Term Municipal Bonds | | $ | – 0 | – | | $ | 1,148,690,059 | | | $ | 71,034,015 | | | $ | 1,219,724,074 | |
Short-Term Municipal Notes | | | – 0 | – | | | 37,515,000 | | | | – 0 | – | | | 37,515,000 | |
Short-Term Investments | | | 10,132,541 | | | | – 0 | – | | | – 0 | – | | | 10,132,541 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 10,132,541 | | | | 1,186,205,059 | | | | 71,034,015 | | | | 1,267,371,615 | |
Other Financial Instruments(a) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total(c) | | $ | 10,132,541 | | | $ | 1,186,205,059 | | | $ | 71,034,015 | | | $ | 1,267,371,615 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| AB New York Portfolio | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Municipal Obligations: | | | | | | | | | | | | | | | | |
Long-Term Municipal Bonds | | $ | – 0 | – | | $ | 574,326,831 | | | $ | 14,404,298 | | | $ | 588,731,129 | |
Short-Term Municipal Notes | | | – 0 | – | | | 6,300,000 | | | | – 0 | – | | | 6,300,000 | |
Short-Term Investments | | | 8,721,288 | | | | – 0 | – | | | – 0 | – | | | 8,721,288 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 8,721,288 | | | | 580,626,831 | | | | 14,404,298 | | | | 603,752,417 | |
Other Financial Instruments(a) | �� | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total(b) | | $ | 8,721,288 | | | $ | 580,626,831 | | | $ | 14,404,298 | | | $ | 603,752,417 | |
| | | | | | | | | | | | | | | | |
| (a) | | Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. |
| (b) | | There were no transfers between Level 1 and Level 2 during the reporting period. |
| (c) | | There were no transfers between any levels during the reporting period. |
The Portfolios recognize all transfers between levels of the fair value hierarchy assuming the financial instruments were transferred at the beginning of the reporting period.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 129 | |
Notes to Financial Statements
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.
| | | | | | | | |
AB California Portfolio | | Long-Term
Municipal Bonds | | | Total | |
Balance as of 5/31/16 | | $ | 54,961,193 | | | $ | 54,961,193 | |
Accrued discounts/(premiums) | | | (96,477 | ) | | | (96,477 | ) |
Realized gain (loss) | | | – 0 | – | | | – 0 | – |
Change in unrealized appreciation/depreciation | | | (2,927,637 | ) | | | (2,927,637 | ) |
Purchases | | | 2,750,000 | | | | 2,750,000 | |
Sales | | | – 0 | – | | | – 0 | – |
Transfers in to Level 3 | | | – 0 | – | | | – 0 | – |
Transfers out of Level 3 | | | (6,333,040 | ) | | | (6,333,040 | ) |
| | | | | | | | |
Balance as of 11/30/16 | | $ | 48,354,039 | | | $ | 48,354,039 | (a) |
| | | | | | | | |
Net change in unrealized appreciation/depreciation from investments held as of 11/30/16(b) | | $ | (2,927,637 | ) | | $ | (2,927,637 | ) |
| | | | | | | | |
| | |
AB High Income Municipal Portfolio | | Long-Term
Municipal Bonds | | | Corporates –
Investment
Grade | |
Balance as of 5/31/16 | | $ | 587,388,532 | | | $ | – 0 | – |
Accrued discounts/(premiums) | | | 123,268 | | | | – 0 | – |
Realized gain (loss) | | | 3,303,389 | | | | – 0 | – |
Change in unrealized appreciation/depreciation | | | (43,395,335 | ) | | | (1,560 | ) |
Purchases | | | 95,724,627 | | | | 2,260,000 | |
Sales | | | (38,519,962 | ) | | | – 0 | – |
Transfers in to Level 3 | | | 11,232,130 | | | | – 0 | – |
Transfers out of Level 3 | | | (1,751,685 | ) | | | – 0 | – |
| | | | | | | | |
Balance as of 11/30/16 | | $ | 614,104,964 | | | $ | 2,258,440 | |
| | | | | | | | |
Net change in unrealized appreciation/depreciation from investments held as of 11/30/16(b) | | $ | (40,079,110 | ) | | $ | (1,560 | ) |
| | | | | | | | |
| | |
| | | Total | | | | |
Balance as of 5/31/16 | | $ | 587,388,532 | | | | | |
Accrued discounts/(premiums) | | | 123,268 | | | | | |
Realized gain (loss) | | | 3,303,389 | | | | | |
Change in unrealized appreciation/depreciation | | | (43,396,895 | ) | | | | |
Purchases | | | 97,984,627 | | | | | |
Sales | | | (38,519,962 | ) | | | | |
Transfers in to Level 3 | | | 11,232,130 | | | | | |
Transfers out of Level 3 | | | (1,751,685 | ) | | | | |
| | | | | | | | |
Balance as of 11/30/16 | | $ | 616,363,404 | (a) | | | | |
| | | | | | | | |
Net change in unrealized appreciation/depreciation from investments held as of 11/30/16(b) | | $ | (40,080,670 | ) | | | | |
| | | | | | | | |
| | |
| 130 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
| | | | | | | | |
AB National Portfolio | | Long-Term
Municipal Bonds | | | Total | |
Balance as of 5/31/16 | | $ | 72,858,142 | | | $ | 72,858,142 | |
Accrued discounts/(premiums) | | | 151,470 | | | | 151,470 | |
Realized gain (loss) | | | (35,712 | ) | | | (35,712 | ) |
Change in unrealized appreciation/depreciation | | | (1,410,332 | ) | | | (1,410,332 | ) |
Purchases | | | 9,001,587 | | | | 9,001,587 | |
Sales | | | (9,531,140 | ) | | | (9,531,140 | ) |
Transfers in to Level 3 | | | – 0 | – | | | – 0 | – |
Transfers out of Level 3 | | | – 0 | – | | | – 0 | – |
| | | | | | | | |
Balance as of 11/30/16 | | $ | 71,034,015 | | | $ | 71,034,015 | |
| | | | | | | | |
Net change in unrealized appreciation/depreciation from investments held as of 11/30/16(b) | | $ | (1,341,494 | ) | | $ | (1,341,494 | ) |
| | | | | | | | |
| | |
AB New York Portfolio | | Long-Term
Municipal Bonds | | | Total | |
Balance as of 5/31/16 | | $ | 12,181,907 | | | $ | 12,181,907 | |
Accrued discounts/(premiums) | | | (6,857 | ) | | | (6,857 | ) |
Realized gain (loss) | | | (43,788 | ) | | | (43,788 | ) |
Change in unrealized appreciation/depreciation | | | (445,556 | ) | | | (445,556 | ) |
Purchases | | | 45,000 | | | | 45,000 | |
Sales | | | (95,000 | ) | | | (95,000 | ) |
Transfers in to Level 3 | | | 2,768,592 | | | | 2,768,592 | |
Transfers out of Level 3 | | | – 0 | – | | | – 0 | – |
| | | | | | | | |
Balance as of 11/30/16 | | $ | 14,404,298 | | | $ | 14,404,298 | (a) |
| | | | | | | | |
Net change in unrealized appreciation/depreciation from investments held as of 11/30/16(b) | | $ | (445,556 | ) | | $ | (445,556 | ) |
| | | | | | | | |
| (a) | | There were de minimis transfers under 1% of net assets during the reporting period. |
| (b) | | The unrealized appreciation/(depreciation) is included in net change in unrealized appreciation/(depreciation) on investments and other financial instruments in the accompanying statement of operations. |
As of November 30, 2016, all Level 3 securities were priced by third party vendors.
The Adviser established the Committee to oversee the pricing and valuation of all securities held in the Portfolios. The Committee operates under pricing and valuation policies and procedures established by the Adviser and approved by the Board, including pricing policies which set forth the mechanisms and processes to be employed on a daily basis to implement these policies and procedures. In particular, the pricing policies describe how to determine market quotations for securities and other instruments. The Committee’s responsibilities include: 1) fair value and liquidity determinations (and oversight of any third parties to whom any
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 131 | |
Notes to Financial Statements
responsibility for fair value and liquidity determinations is delegated), and 2) regular monitoring of the Adviser’s pricing and valuation policies and procedures and modification or enhancement of these policies and procedures (or recommendation of the modification of these policies and procedures) as the Committee believes appropriate.
The Committee is also responsible for monitoring the implementation of the pricing policies by the Adviser’s Pricing Group (the “Pricing Group”) and any third party which performs certain pricing functions in accordance with the pricing policies. The Pricing Group is responsible for the oversight of the third party on a day-to-day basis. The Committee and the Pricing Group perform a series of activities to provide reasonable assurance of the accuracy of prices including: 1) periodic vendor due diligence meetings, review of methodologies, new developments and processes at vendors, 2) daily comparison of security valuation versus prior day for all securities that exceeded established thresholds, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by senior management and the Committee.
In addition, several processes outside of the pricing process are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics (which are generated using the Adviser’s prices).
3. Taxes
It is each Portfolio’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 Portfolios’ 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 Portfolios’ financial statements.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date or as soon as the Portfolio is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Each Portfolio may buy and sell securities from other
| | |
| 132 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
affiliated funds in accordance with the requirements of Rule 17a-7 of the Investment Company Act of 1940. Each Portfolio has adopted procedures to ensure that all such transactions are done in accordance with the requirements of Rule 17a-7. Investment gains and losses are determined on the identified cost basis. The Portfolios amortize premiums and accrete original issue discounts and market discounts as adjustments to interest income.
5. Class Allocations
All income earned and expenses incurred by the Portfolios are borne on a pro-rata basis by each settled class of shares, based on the proportionate interest in each portfolio represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Fund are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
NOTE B
Advisory, Administrative Fees and Other Transactions With Affiliates
Under the terms of the investment advisory agreement, the Portfolios pay the Adviser at the annual rates as follows:
| | | | | | | | | | | | |
| | | Average Daily Net Assets | |
| Portfolio | | First $2.5 Billion | | | Next $2.5 Billion | | | In Excess of $5 Billion | |
AB California | | | .45 | % | | | .40 | % | | | .35 | % |
AB High Income Municipal | | | .50 | % | | | .45 | % | | | .40 | % |
AB National | | | .45 | % | | | .40 | % | | | .35 | % |
AB New York | | | .45 | % | | | .40 | % | | | .35 | % |
Such fees are accrued daily and paid monthly.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 133 | |
Notes to Financial Statements
The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit the total operating expenses (excluding interest expense, brokerage commissions and other transaction costs, taxes and extraordinary expenses) on an annual basis (the “Expense Caps”) as follows:
| | | | | | | | | | | | | | | | |
| | | Effective January 30, 2015(a) | |
| Portfolio | | Class A | | | Class B | | | Class C | | | Advisor
Class | |
AB California | | | .75% | | | | 1.50% | | | | 1.50% | | | | .50% | |
AB National | | | .75% | | | | 1.50% | | | | 1.50% | | | | .50% | |
AB New York | | | .75% | | | | 1.50% | | | | 1.50% | | | | .50% | |
| | | | | | | | | | | | |
| | | Effective January 30, 2015(b) | |
| Portfolio | | Class A | | | Class C | | | Advisor
Class | |
AB High Income Municipal | | | .80% | | | | 1.55% | | | | .55% | |
This contractual agreement extends through September 30, 2017 for all Portfolios and may be extended by the Adviser for additional one year terms.
| (a) | | Prior to January 30, 2015, the Expense Caps were .80%, 1.50%, 1.50% and .50% for Class A, Class B, Class C and Advisor Class shares, respectively. Prior to February 1, 2013, the Expense Caps were .75%, 1.45%, 1.45% and .45% for Class A, Class B, Class C and Advisor Class shares, respectively. |
| (b) | | Prior to January 30, 2015, the Expense Caps were .80%, 1.50% and .50% for Class A, Class C and Advisor Class shares, respectively. |
For the six months ended November 30, 2016, such reimbursements amounted to $131,168, $8,531, $241,405 and $161,440 for AB California, AB High Income Municipal, AB National and AB New York Portfolios, respectively.
Pursuant to the investment advisory agreement, each Portfolio may reimburse the Adviser for certain legal and accounting services provided to each Portfolio by the Adviser. For the six months ended November 30, 2016, the reimbursement for such services amounted to $28,748, $28,794, $27,341 and $30,670 for AB California, AB High Income Municipal, AB National and AB New York Portfolios, respectively.
The Portfolios compensate 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 Portfolios. 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: AB California Portfolio, $35,150; AB High Income
| | |
| 134 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
Municipal Portfolio, $119,662; AB National Portfolio, $91,121 and AB New York Portfolio, $41,959 for the six months ended November 30, 2016.
AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Portfolios’ shares. The Distributor has advised the Portfolios that it has retained front-end sales charges from the sale of Class A shares and received contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares for each Portfolio for the six months ended November 30, 2016 as follows:
| | | | | | | | | | | | | | | | |
| | | Front-End Sales
Charges | | | Contingent Deferred Sales
Charges | |
| Portfolio | | Class A | | | Class A | | | Class B | | | Class C | |
AB California | | $ | 770 | | | $ | 5,900 | | | $ | – 0 | – | | $ | 1,303 | |
AB High Income Municipal | | | 344 | | | | 75,385 | | | | – 0 | – | | | 19,766 | |
AB National | | | 1,919 | | | | 7,646 | | | | – 0 | – | | | 5,538 | |
AB New York | | | – 0 | – | | | 16,644 | | | | 12 | | | | 5,825 | |
The AB Fixed-Income Shares, Inc. – Government STIF Portfolio (the “Government STIF Portfolio”), prior to June 1, 2016, was offered as a cash management option to mutual funds and other institutional accounts of the Adviser, and was not available for direct purchase by members of the public. Prior to June 1, 2016, the Government STIF Portfolio paid no advisory fees but did bear its own expenses. As of June 1, 2016, the Government STIF Portfolio, which was renamed “AB Government Money Market Portfolio” (the “Government Money Market Portfolio”), has a contractual advisory fee rate of .20% and continues to bear its own expenses. In connection with the investment by the Portfolios in the Government Money Market Portfolio, the Adviser has agreed to waive its advisory fee from the Portfolios in an amount equal to the Portfolios’ share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Portfolio as an acquired fund fee and expense. For the six months ended November 30, 2016, such waivers amounted to:
| | | | |
Portfolio | | Amount | |
AB California | | $ | 8,079 | |
AB High Income Municipal | | | 90,252 | |
AB National | | | 63,283 | |
AB New York | | | 15,028 | |
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| AB MUNICIPAL INCOME FUND • | | | 135 | |
Notes to Financial Statements
A summary of the Portfolios’ transactions in shares of the Government Money Market Portfolio for the six months ended November 30, 2016 is as follows:
| | | | | | | | | | | | | | | | | | | | |
| Portfolio | | Market Value 5/31/16 (000) | | | Purchases at Cost (000) | | | Sales Proceeds (000) | | | Market Value 11/30/16 (000) | | | Dividend Income (000) | |
AB California | | $ | 2,818 | | | $ | 66,494 | | | $ | 63,023 | | | $ | 6,289 | | | $ | 10 | |
AB High Income Municipal | | | 177,257 | | | | 345,940 | | | | 512,642 | | | | 10,555 | | | | 109 | |
AB National | | | 64,142 | | | | 160,047 | | | | 214,056 | | | | 10,133 | | | | 78 | |
AB New York | | | 22,351 | | | | 120,091 | | | | 133,721 | | | | 8,721 | | | | 19 | |
NOTE C
Distribution Services Agreement
The Portfolios have adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Portfolios pay distribution and servicing fees to the Distributor at an annual rate of .25 of 1% of the Portfolios’ average daily net assets attributable to Class A shares and 1% of the Portfolios’ average daily net assets attributable to both Class B and Class C shares. There are no distribution and servicing fees on the Advisor Class shares. Prior to January 30, 2015, the Portfolios paid distribution and servicing fees to the Distributor at an annual rate of up to .30% of 1% of the 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 Portfolios’ operations, the distributor has incurred expenses in excess of the distribution costs reimbursed by each Portfolio as follows:
| | | | | | | | |
| Portfolio | | Class B | | | Class C | |
AB California | | $ | 6,822,006 | | | $ | 7,388,377 | |
AB High Income Municipal | | | – 0 | – | | | 2,799,159 | |
AB National | | | 3,381,740 | | | | 6,790,773 | |
AB New York | | | 5,965,600 | | | | 4,346,424 | |
While such costs may be recovered from the Portfolios in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Portfolios’ shares.
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| 136 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
NOTE D
Investment Transactions
Purchases and sales of investment and U.S. government securities (excluding short-term investments) for the six months ended November 30, 2016, were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases | | | Sales | |
Portfolio | | Investments | | | Government
Securities | | | Investments | | | Government
Securities | |
AB California | | $ | 80,448,721 | | | $ | – 0 | – | | $ | 33,006,929 | | | $ | – 0 | – |
AB High Income Municipal | | | 613,663,355 | | | | – 0 | – | | | 388,330,196 | | | | – 0 | – |
AB National | | | 203,716,043 | | | | – 0 | – | | | 123,692,972 | | | | – 0 | – |
AB New York | | | 101,554,595 | | | | – 0 | – | | | 55,430,824 | | | | – 0 | – |
The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation (excluding swap transactions) are as follows:
| | | | | | | | | | | | |
| | | Gross Unrealized | | | Net
Unrealized
Appreciation/
(Depreciation) | |
Portfolio | | Appreciation | | | (Depreciation) | | |
AB California | | $ | 44,093,356 | | | $ | (11,143,445 | ) | | $ | 32,949,911 | |
AB High Income Municipal | | | 94,259,230 | | | | (95,423,649 | ) | | | (1,164,419 | ) |
AB National | | | 40,952,974 | | | | (26,232,105 | ) | | | 14,720,869 | |
AB New York | | | 21,086,754 | | | | (9,543,203 | ) | | | 11,543,551 | |
1. Derivative Financial Instruments
Each Portfolio 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 Portfolios, as well as the methods in which they may be used are:
Each Portfolio may enter into swaps to hedge their exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Portfolio in accordance with the terms of the respective swaps to provide value and recourse to the Portfolio or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.
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| AB MUNICIPAL INCOME FUND • | | | 137 | |
Notes to Financial Statements
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 Portfolio, and/or the termination value at the end of the contract. Therefore, the Portfolio 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 Portfolio and the counterparty and by the posting of collateral by the counterparty to the Portfolio to cover the Portfolios’ exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Portfolio 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 in connection with credit default swap contracts are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.
Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.
At the time the Portfolio enters into a centrally cleared swap, the Portfolio deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as due from broker on the statement of assets and liabilities. Pursuant to the contract, the Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the
| | |
| 138 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
contract. Such receipts or payments are known as variation margin and are recorded by the Portfolio as unrealized gains or losses. Risks may arise from the potential 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 Portfolio 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:
Each Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio 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 Portfolio may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Portfolio 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, each Portfolio 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 Portfolio anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Portfolio 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 Portfolio receiving or paying, as the case may be, only the net amount of the two payments).
During the six months ended November 30, 2016, the Portfolios held interest rate swaps for hedging purposes.
Inflation (CPI) Swaps:
Inflation swaps 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 Portfolio against an unexpected
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 139 | |
Notes to Financial Statements
change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if unexpected inflation increases.
During the six months ended November 30, 2016, the Portfolios held inflation (CPI) swaps for hedging purposes.
Credit Default Swaps:
Each Portfolio 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 Portfolio, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Portfolio 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 Portfolio receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Portfolio is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Portfolio 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 Portfolio for the same reference obligation with the same counterparty. As of November 30, 2016, the AB High Income Municipal Portfolio did not have Buy Contracts outstanding with respect to the same referenced obligation and same counterparty for its Sales Contracts outstanding.
Credit default swaps may involve greater risks than if a Portfolio 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 Portfolio is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Portfolio is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Portfolio 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 Portfolio.
| | |
| 140 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
Implied credit spreads utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.
During the six months ended November 30, 2016, the AB High Income Municipal Portfolio held credit default swaps for non-hedging purposes.
The Portfolios typically enter into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) or similar master agreements (collectively, “Master Agreements”) with its derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Portfolios typically may offset with the 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.
Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as derivative transactions, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolios’ net liability, held by the defaulting party, may be delayed or denied.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 141 | |
Notes to Financial Statements
The Portfolios’ Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Portfolio decline below specific levels (“net asset contingent features”). If these levels are triggered, the Portfolios’ counterparty has the right to terminate such transaction and require the Portfolio to pay or receive a settlement amount in connection with the terminated transaction. For additional details, please refer to netting arrangements by counterparty tables below.
During the six months ended November 30, 2016, the Portfolios had entered into the following derivatives:
| | | | | | | | | | | | | | |
| AB California Portfolio | |
| | | 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 | | Unrealized
appreciation
on interest
rate swaps | | $ | 1,320,884 | | |
| Unrealized
depreciation
on interest
rate swaps |
| | $ | 4,210,552 | |
| | | | | | | | | | | | | | |
Total | | | | $ | 1,320,884 | | | | | | | $ | 4,210,552 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | |
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 | | $ | 158,680 | | | $ | 635,557 | |
| | | | | | | | | | |
Total | | | | $ | 158,680 | | | $ | 635,557 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | |
| AB High Income Municipal Portfolio | |
| | | 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 | | Unrealized
appreciation
on interest
rate swaps | | $ | 1,862,109 | | | | | | | | | |
| | | | | | | | | | | | | | |
Total | | | | $ | 1,862,109 | | | | | | | | | |
| | | | | | | | | | | | | | |
| | |
| 142 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
| | | | | | | | | | |
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 | | $ | 964,038 | | | $ | 1,232,500 | |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | | | 2,962,457 | | | | (1,981,012 | ) |
| | | | | | | | | | |
Total | | | | $ | 3,926,495 | | | $ | (748,512 | ) |
| | | | | | | | | | |
| | | | | | | | | | |
| AB National Portfolio | |
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 | | $ | 737,262 | | | $ | (431,239 | ) |
| | | | | | | | | | |
Total | | | | $ | 737,262 | | | $ | (431,239 | ) |
| | | | | | | | | | |
| | | | | | | | | | |
| AB New York Portfolio | |
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 | | $ | 856,966 | | | $ | (732,703 | ) |
| | | | | | | | | | |
Total | | | | $ | 856,966 | | | $ | (732,703 | ) |
| | | | | | | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 143 | |
Notes to Financial Statements
The following tables represent the average monthly volume of the Portfolios’ derivative transactions during the six months ended November 30, 2016:
| | | | |
AB California Portfolio | | | | |
Interest Rate Swaps: | | | | |
Average notional amount | | $ | 28,214,286 | |
Inflation Swaps: | | | | |
Average notional amount | | $ | 14,350,000 | (a) |
| (a) | | Positions were open for five months during the period. |
| | | | |
AB High Income Municipal Portfolio | | | | |
Interest Rate Swaps: | | | | |
Average notional amount | | $ | 41,500,000 | (a) |
Inflation Swaps: | | | | |
Average notional amount | | $ | 54,500,000 | (b) |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 28,333,333 | (c) |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 54,582,080 | (d) |
| (a) | | Positions were open for four months during the period. |
| (b) | | Positions were open for five months during the period. |
| (c) | | Positions were open for three months during the period. |
| (d) | | Positions were open for one month during the period. |
| | | | |
AB National Portfolio | | | | |
Interest Rate Swaps: | | | | |
Average notional amount | | $ | 6,300,000 | (a) |
Inflation Swaps: | | | | |
Average notional amount | | $ | 26,716,667 | (b) |
| (a) | | Positions were open for four months during the period. |
| (b) | | Positions were open for five months during the period. |
| | | | |
AB New York Portfolio | | | | |
Interest Rate Swaps: | | | | |
Average notional amount | | $ | 2,200,000 | (a) |
Inflation Swaps: | | | | |
Average notional amount | | $ | 12,571,667 | (b) |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 17,450,000 | (c) |
| (a) | | Positions were open for less than one month during the period. |
| (b) | | Positions were open for five months during the period. |
| (c) | | Positions were open for two months during the period. |
For financial reporting purposes, the Portfolios do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
| | |
| 144 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
All derivatives held at period end were subject to netting arrangements. The following tables present the Portfolios’ derivative assets and liabilities by counterparty net of amounts available for offset under Master Agreements (“MA”) and net of the related collateral received/pledged by the Portfolios as of November 30, 2016:
| | | | | | | | | | | | | | | | | | | | |
| AB California Portfolio | | | | | | | | | | | | | |
Counterparty | | Derivative
Assets
Subject
to a MA | | | Derivative
Available
for Offset | | | Cash
Collateral
Received | | | Security
Collateral
Received* | | | Net Amount of
Derivatives
Assets | |
OTC Derivatives: | | | | | | | | | | | | | | | | | |
Citibank, NA | | $ | 1,320,884 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (1,320,884 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,320,884 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (1,320,884 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Counterparty | | Derivative
Liabilities
Subject
to a MA | | | Derivative
Available
for Offset | | | Cash
Collateral
Pledged | | | Security
Collateral
Pledged* | | | Net Amount of
Derivatives
Liabilities | |
OTC Derivatives: | | | | | | | | | | | | | |
Merrill Lynch Capital Services, Inc. | | $ | 4,210,552 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (4,210,552 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,210,552 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (4,210,552 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
| * | | The actual collateral received/pledged is more than the amount reported due to over-collateralization. |
| | | | | | | | | | | | | | | | | | | | |
| AB High Income Municipal Portfolio | | | | | | | |
Counterparty | | Derivative
Assets
Subject
to a MA | | | Derivative
Available
for Offset | | | Cash
Collateral
Received | | | Security
Collateral
Received* | | | Net Amount of
Derivatives
Assets | |
OTC Derivatives: | | | | | | | | | | | | | | | | | |
Bank of America, NA | | $ | 1,862,109 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (1,862,109 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,862,109 | | | $ | – 0 | – | | $ | – 0 | – | | $ | (1,862,109 | ) | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
| * | | The actual collateral received/pledged is more than the amount reported due to over-collateralization. |
NOTE E
Capital Stock
The Fund has allocated 18,050,000,000 of authorized shares to the AB California Portfolio, of which 6,000,000,000 is allocated to each of Class A, Class B and Class C shares and 50,000,000 is allocated to Advisor Class shares; 9,100,000,000 of authorized shares to the AB High Income Municipal Portfolio of which 3,000,000,000 is allocated to each of Class A, Class B (not currently offered) and Class C shares and 100,000,000 is allocated to Advisor Class shares; 18,100,000,000 of authorized shares to the AB National Portfolio of which 6,000,000,000
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 145 | |
Notes to Financial Statements
is allocated to each of Class A, Class B and Class C shares and 100,000,000 is allocated to Advisor Class shares; and 9,050,000,000 of authorized shares to the AB New York Portfolio of which 3,000,000,000 is allocated to each of Class A, Class B and Class C shares and 50,000,000 is allocated to Advisor Class shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB California Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31, 2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31, 2016 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 3,387,891 | | | | 7,137,450 | | | | | | | $ | 39,275,178 | | | $ | 81,462,951 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 343,940 | | | | 632,378 | | | | | | | | 3,954,643 | | | | 7,209,619 | | | | | |
| | | | | |
Shares converted from Class B | | | 912 | | | | 10,111 | | | | | | | | 10,574 | | | | 114,952 | | | | | |
| | | | | |
Shares redeemed | | | (2,604,146 | ) | | | (5,009,585 | ) | | | | | | | (29,753,249 | ) | | | (56,970,990 | ) | | | | |
| | | | | |
Net increase | | | 1,128,597 | | | | 2,770,354 | | | | | | | $ | 13,487,146 | | | $ | 31,816,532 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 469 | | | | 1,001 | | | | | | | $ | 5,400 | | | $ | 11,400 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 84 | | | | 290 | | | | | | | | 978 | | | | 3,293 | | | | | |
| | | | | |
Shares converted to Class A | | | (912 | ) | | | (10,111 | ) | | | | | | | (10,574 | ) | | | (114,952 | ) | | | | |
| | | | | |
Shares redeemed | | | (1 | ) | | | (7 | ) | | | | | | | (18 | ) | | | (81 | ) | | | | |
| | | | | |
Net decrease | | | (360 | ) | | | (8,827 | ) | | | | | | $ | (4,214 | ) | | $ | (100,340 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 928,928 | | | | 1,030,759 | | | | | | | $ | 10,726,845 | | | $ | 11,755,871 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 54,174 | | | | 107,351 | | | | | | | | 622,624 | | | | 1,223,170 | | | | | |
| | | | | |
Shares redeemed | | | (529,466 | ) | | | (799,576 | ) | | | | | | | (6,061,706 | ) | | | (9,118,461 | ) | | | | |
| | | | | |
Net increase | | | 453,636 | | | | 338,534 | | | | | | | $ | 5,287,763 | | | $ | 3,860,580 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 3,313,681 | | | | 5,799,592 | | | | | | | $ | 38,145,647 | | | $ | 66,331,436 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 103,831 | | | | 169,961 | | | | | | | | 1,193,170 | | | | 1,938,263 | | | | | |
| | | | | |
Shares redeemed | | | (1,579,707 | ) | | | (2,191,155 | ) | | | | | | | (18,072,316 | ) | | | (25,053,338 | ) | | | | |
| | | | | |
Net increase | | | 1,837,805 | | | | 3,778,398 | | | | | | | $ | 21,266,501 | | | $ | 43,216,361 | | | | | |
| | | | | |
| | |
| 146 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB High Income Municipal Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 13,443,364 | | | | 25,707,312 | | | | | | | $ | 158,077,360 | | | $ | 292,227,919 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 702,527 | | | | 1,404,268 | | | | | | | | 8,178,857 | | | | 15,918,785 | | | | | |
| | | | | |
Shares redeemed | | | (12,472,192 | ) | | | (15,252,127 | ) | | | | | | | (144,647,882 | ) | | | (172,254,522 | ) | | | | |
| | | | | |
Net increase | | | 1,673,699 | | | | 11,859,453 | | | | | | | $ | 21,608,335 | | | $ | 135,892,182 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 2,939,478 | | | | 7,555,320 | | | | | | | $ | 34,572,559 | | | $ | 85,634,766 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 283,713 | | | | 595,844 | | | | | | | | 3,299,304 | | | | 6,751,245 | | | | | |
| | | | | |
Shares redeemed | | | (2,717,984 | ) | | | (4,048,414 | ) | | | | | | | (31,567,749 | ) | | | (45,770,047 | ) | | | | |
| | | | | |
Net increase | | | 505,207 | | | | 4,102,750 | | | | | | | $ | 6,304,114 | | | $ | 46,615,964 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 32,234,054 | | | | 48,121,497 | | | | | | | $ | 378,485,500 | | | $ | 547,460,337 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 1,645,998 | | | | 2,815,906 | | | | | | | | 19,152,026 | | | | 31,913,754 | | | | | |
| | | | | |
Shares redeemed | | | (26,011,531 | ) | | | (33,480,708 | ) | | | | | | | (301,137,928 | ) | | | (378,677,679 | ) | | | | |
| | | | | |
Net increase | | | 7,868,521 | | | | 17,456,695 | | | | | | | $ | 96,499,598 | | | $ | 200,696,412 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 7,088,427 | | | | 11,555,492 | | | | | | | $ | 74,615,171 | | | $ | 119,395,295 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 504,527 | | | | 1,055,506 | | | | | | | | 5,289,233 | | | | 10,889,946 | | | | | |
| | | | | |
Shares converted from Class B | | | 11,199 | | | | 28,232 | | | | | | | | 117,742 | | | | 288,565 | | | | | |
| | | | | |
Shares redeemed | | | (7,552,782 | ) | | | (10,110,024 | ) | | | | | | | (79,125,366 | ) | | | (103,939,164 | ) | | | | |
| | | | | |
Net increase | | | 51,371 | | | | 2,529,206 | | | | | | | $ | 896,780 | | | $ | 26,634,642 | | | | | |
| | | | | |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 147 | |
Notes to Financial Statements
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | |
| | | | | | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 8,089 | | | | 3,622 | | | | | | | $ | 84,415 | | | $ | 37,084 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 231 | | | | 1,126 | | | | | | | | 2,429 | | | | 11,588 | | | | | |
| | | | | |
Shares converted to Class A | | | (11,217 | ) | | | (28,263 | ) | | | | | | | (117,742 | ) | | | (288,565 | ) | | | | |
| | | | | |
Shares redeemed | | | (2,595 | ) | | | (14,204 | ) | | | | | | | (27,028 | ) | | | (149,586 | ) | | | | |
| | | | | |
Net decrease | | | (5,492 | ) | | | (37,719 | ) | | | | | | $ | (57,926 | ) | | $ | (389,479 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,881,256 | | | | 2,404,811 | | | | | | | $ | 19,836,441 | | | $ | 24,838,151 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 97,532 | | | | 210,846 | | | | | | | | 1,021,173 | | | | 2,172,921 | | | | | |
| | | | | |
Shares redeemed | | | (1,133,545 | ) | | | (1,833,531 | ) | | | | | | | (11,871,069 | ) | | | (18,882,271 | ) | | | | |
| | | | | |
Net increase | | | 845,243 | | | | 782,126 | | | | | | | $ | 8,986,545 | | | $ | 8,128,801 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 11,031,267 | | | | 20,332,751 | | | | | | | $ | 116,339,660 | | | $ | 210,422,196 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 510,904 | | | | 888,569 | | | | | | | | 5,353,329 | | | | 9,177,466 | | | | | |
| | | | | |
Shares redeemed | | | (6,056,526 | ) | | | (9,027,592 | ) | | | | | | | (63,060,476 | ) | | | (93,250,613 | ) | | | | |
| | | | | |
Net increase | | | 5,485,645 | | | | 12,193,728 | | | | | | | $ | 58,632,513 | | | $ | 126,349,049 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 4,936,669 | | | | 8,454,250 | | | | | | | $ | 50,419,962 | | | $ | 84,959,231 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 344,603 | | | | 705,859 | | | | | | | | 3,501,046 | | | | 7,075,995 | | | | | |
| | | | | |
Shares converted from Class B | | | 13,763 | | | | 43,510 | | | | | | | | 140,872 | | | | 433,278 | | | | | |
| | | | | |
Shares redeemed | | | (3,094,025 | ) | | | (7,515,092 | ) | | | | | | | (31,273,286 | ) | | | (75,208,461 | ) | | | | |
| | | | | |
Net increase | | | 2,201,010 | | | | 1,688,527 | | | | | | | $ | 22,788,594 | | | $ | 17,260,043 | | | | | |
| | | | | |
| | |
| 148 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | | | Six Months Ended
November 30, 2016
(unaudited) | | | Year Ended
May 31,
2016 | | | | |
| | | | | | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 781 | | | | 1,257 | | | | | | | $ | 8,000 | | | $ | 12,523 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 611 | | | | 1,852 | | | | | | | | 6,209 | | | | 18,531 | | | | | |
| | | | | |
Shares converted to Class A | | | (13,778 | ) | | | (43,578 | ) | | | | | | | (140,872 | ) | | | (433,278 | ) | | | | |
| | | | | |
Shares redeemed | | | (4,725 | ) | | | (13,115 | ) | | | | | | | (48,248 | ) | | | (131,735 | ) | | | | |
| | | | | |
Net decrease | | | (17,111 | ) | | | (53,584 | ) | | | | | | $ | (174,911 | ) | | $ | (533,959 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 997,696 | | | | 1,863,631 | | | | | | | $ | 10,209,234 | | | $ | 18,741,425 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 59,778 | | | | 115,200 | | | | | | | | 606,790 | | | | 1,154,627 | | | | | |
| | | | | |
Shares redeemed | | | (546,360 | ) | | | (1,094,819 | ) | | | | | | | (5,550,108 | ) | | | (10,934,847 | ) | | | | |
| | | | | |
Net increase | | | 511,114 | | | | 884,012 | | | | | | | $ | 5,265,916 | | | $ | 8,961,205 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 2,088,517 | | | | 3,246,352 | | | | | | | $ | 21,215,626 | | | $ | 32,661,314 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 51,432 | | | | 71,381 | | | | | | | | 522,021 | | | | 716,843 | | | | | |
| | | | | |
Shares redeemed | | | (568,057 | ) | | | (858,572 | ) | | | | | | | (5,734,901 | ) | | | (8,596,954 | ) | | | | |
| | | | | |
Net increase | | | 1,571,892 | | | | 2,459,161 | | | | | | | $ | 16,002,746 | | | $ | 24,781,203 | | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Portfolios
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”) have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and less secondary market liquidity.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 149 | |
Notes to Financial Statements
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 Portfolios’ investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. The AB New York and AB California Portfolios of the AB Municipal Income Fund are State Portfolios that may invest a large portion of their assets in a particular state’s municipal securities and their various political subdivisions. To the extent that these Portfolios invest more of their assets in a particular state’s municipal securities, these Portfolios may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. These Portfolios’ 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.
The Portfolios may invest in the municipal securities of Puerto Rico and other U.S. territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other U.S. issuers of municipal securities. Puerto Rico experienced a significant downturn during the recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. Municipal securities issued by Puerto Rico issuers have extremely low ratings by the credit rating organizations. More recently Puerto Rico has defaulted on its debt payments, and if the general economic situation in Puerto Rico persists, the volatility and credit quality of Puerto Rican municipal securities will continue to be adversely affected, and the market for such securities may experience continued volatility. In addition, Puerto Rico’s difficulties have resulted in increased volatility in portions of the broader municipal securities market from time to time, and this may recur in the future.
Tax Risk—There is no guarantee that all of a Portfolios’ income will remain exempt from federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the net income received by shareholders from the Portfolios by increasing taxes on that income. In such event, the Portfolios’ NAV could also decline as yields on municipal bonds, which are typically lower than those on taxable
| | |
| 150 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Portfolios shares as investors anticipate adverse effects on the Portfolios or seek higher yields to offset the potential loss of the tax deduction. As a result, the Portfolios would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Portfolios’ yield.
Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. The Portfolio may be subject to a heightened risk of rising interest rates due to the current period of historically low rates and the effect of government fiscal policy initiatives, including Federal Reserve actions, and market reaction to these initiatives. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.
Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.
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 Portfolios’ assets can decline as can the value of the Portfolios’ distributions. This risk is significantly greater for fixed-income securities with longer maturities.
Financing and Related Transactions; Leverage and Other Risks—The Portfolios may utilize financial leverage, including tender option bond transactions, to seek to enhance the yield and net asset value. These objectives may not be achieved in all interest rate environments. Leverage creates certain risks for shareholders, including the likelihood of greater volatility of the net asset value. If income from the securities purchased from the funds made available by leverage is not sufficient to cover the cost of leverage, the Portfolios’ return will be less than if leverage had not been used. As a result, the amounts available for distribution as dividends and other distributions will be reduced. During periods of rising short-term interest rates, the interest paid on the floaters in tender option bond transactions would increase, which may adversely affect the Portfolios’
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 151 | |
Notes to Financial Statements
income and distribution to shareholders. A decline in distributions would adversely affect the Portfolios’ yield. If rising short-term rates coincide with a period of rising long-term rates, the value of the long-term municipal bonds purchased with the proceeds of leverage would decline, adversely affecting the net asset value.
In a tender option bond transaction, the Portfolios may transfer a highly rated fixed-rate municipal security to a broker, which, in turn, deposits the bond into a special purpose vehicle (typically, a trust) usually sponsored by the broker. The Portfolios receive cash and a residual interest security (sometimes referred to as an “inverse floater”) issued by the trust in return. The trust simultaneously issues securities, which pay an interest rate that is reset each week based on an index of high-grade short-term seven-day demand notes. These securities, sometimes referred to as “floaters”, are bought by third parties, including tax-exempt money market funds, and can be tendered by these holders to a liquidity provider at par, unless certain events occur. The Portfolios continue to earn all the interest from the transferred bond less the amount of interest paid on the floaters and the expenses of the trust, which include payments to the trustee and the liquidity provider and organizational costs. The Portfolios also use the cash received from the transaction for investment purposes or to retire other forms of leverage. Under certain circumstances, the trust may be terminated and collapsed, either by the Portfolios or upon the occurrence of certain events, such as a downgrade in the credit quality of the underlying bond, or in the event holders of the floaters tender their securities to the liquidity provider. See Note I to the Financial Statements “Floating Rate Notes in Connection with Securities Held” for more information about tender option bond transactions.
The Portfolio may also purchase inverse floaters from a tender option bond trust in a secondary market transaction without first owning the underlying bond. The income received from an inverse floater varies inversely with the short-term interest rate paid on the floaters issued by the trust. The prices of inverse floaters are subject to greater volatility than the prices of fixed-income securities that are not inverse floaters. Investments in inverse floaters may amplify the risks of leverage. If short-term interest rates rise, the interest payable on the floaters would increase and income from the inverse floaters decrease.
Liquidity Risk—Liquidity risk occurs when certain investments become difficult to purchase or sell. Difficulty in selling less liquid securities may result in sales at disadvantageous prices affecting the value of your investment in the Portfolios. Causes of liquidity risk may include low trading volumes, large positions and heavy redemptions of Portfolio shares. Over recent years liquidity risk has also increased because the
| | |
| 152 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Liquidity risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline. Municipal securities may have more liquidity risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.
Derivatives Risk—The Portfolios may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Portfolios, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.
Indemnification Risk—In the ordinary course of business, the Portfolios enter into contracts that contain a variety of indemnifications. The Portfolios’ maximum exposure under these arrangements is unknown. However, the Portfolios have not had prior claims or losses pursuant to these indemnification provisions and expect the risk of loss thereunder to be remote. Therefore, the Portfolios have not accrued any liability in connection with these indemnification provisions.
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Portfolios, participate in a $280 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Portfolios did not utilize the Facility during the six months ended November 30, 2016.
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| AB MUNICIPAL INCOME FUND • | | | 153 | |
Notes to Financial Statements
NOTE H
Distributions to Shareholders
The tax character of distributions to be paid for the year ending May 31, 2017 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal year ended May 31, 2016 and period ended May 31, 2015 were as follows:
| | | | | | | | |
| AB California Portfolio | | 2016 | | | 2015 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 382,639 | | | $ | 207,341 | |
| | | | | | | | |
Total taxable distributions | | | 382,639 | | | | 207,341 | |
Tax exempt distributions | | | 19,954,817 | | | | 10,975,592 | |
| | | | | | | | |
Total distributions paid | | $ | 20,337,456 | | | $ | 11,182,933 | |
| | | | | | | | |
| | | | | | | | |
| AB High Income Municipal Portfolio | | 2016 | | | 2015 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 6,464,290 | | | $ | 2,657,048 | |
| | | | | | | | |
Total taxable distributions | | | 6,464,290 | | | | 2,657,048 | |
Tax exempt distributions | | | 88,595,357 | | | | 50,492,035 | |
| | | | | | | | |
Total distributions paid | | $ | 95,059,647 | | | $ | 53,149,083 | |
| | | | | | | | |
| | | | | | | | |
| AB National Portfolio | | 2016 | | | 2015 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 397,862 | | | $ | 184,929 | |
| | | | | | | | |
Total taxable distributions | | | 397,862 | | | | 184,929 | |
Tax exempt distributions | | | 36,088,019 | | | | 19,929,492 | |
| | | | | | | | |
Total distributions paid | | $ | 36,485,881 | | | $ | 20,114,421 | |
| | | | | | | | |
| | | | | | | | |
| AB New York Portfolio | | 2016 | | | 2015 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 137,879 | | | $ | 66,957 | |
| | | | | | | | |
Total taxable distributions | | | 137,879 | | | | 66,957 | |
Tax exempt distributions | | | 16,004,792 | | | | 9,573,096 | |
| | | | | | | | |
Total distributions paid | | $ | 16,142,671 | | | $ | 9,640,053 | |
| | | | | | | | |
| | |
| 154 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
As of May 31, 2016, the components of accumulated earnings/(deficit) on a tax basis were as follows:
| | | | | | | | | | | | | | | | |
| Portfolio | | Undistributed
Tax-Exempt
Income | | | Accumulated
Capital and
Other
Losses(a) | | | Unrealized
Appreciation/
(Depreciation)(b) | | | Total
Accumulated
Earnings/
(Deficit)(c) | |
AB California | | $ | 10,944 | | | $ | (5,386,113 | ) | | $ | 67,080,182 | | | $ | 61,705,013 | |
AB High Income Municipal | | | 6,690,130 | | | | (33,311,874 | ) | | | 182,291,275 | | | | 155,669,531 | |
AB National | | | 412,011 | | | | (25,212,632 | ) | | | 80,149,343 | | | | 55,348,722 | |
AB New York | | | 51,570 | | | | (16,788,853 | ) | | | 43,018,488 | | | | 26,281,205 | |
| (a) | | At May 31, 2016, AB California Portfolio, AB High Income Municipal Portfolio, AB National Portfolio, and AB New York Portfolio had capital loss carryforwards for federal income tax purposes. During the fiscal period, AB High Income Municipal Portfolio, AB National Portfolio, and AB New York Portfolio utilized capital loss carryforwards of $8,915,923, $154,275, and $978,504, respectively, to offset current year net realized gains. |
| (b) | | The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales and the tax treatment of swaps and tender option bonds. |
| (c) | | The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the tax treatment of defaulted securities, and dividends payable to shareholders. |
For tax purposes, net capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an indefinite period. These post-December 22, 2010 capital losses must be utilized prior to the earlier capital losses, which are subject to expiration. Post-December 22, 2010 capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered short-term as under previous regulation.
As of May 31, 2016, certain Portfolios had net capital loss carryforwards which will expire as follows:
| | | | | | | | | | | | |
| Portfolio | | Short-Term
Amount | | | Long-Term
Amount | | | Expiration | |
AB California | | $ | 2,457,993 | | | $ | 2,928,120 | | | | N/A | |
AB High Income Municipal | | | 4,182,905 | | | | N/A | | | | 2019 | |
AB High Income Municipal | | | 27,232,780 | | | | 1,896,189 | | | | N/A | |
AB National | | | 13,695,389 | | | | 11,517,243 | | | | N/A | |
AB New York | | | 7,799,000 | | | | 8,989,853 | | | | N/A | |
NOTE I
Floating Rate Notes Issued in Connection with Securities Held
Each Portfolio may engage in tender option bond transactions in which the Portfolio may transfer a fixed rate bond (“Fixed Rate Bond”) to a broker for cash. The broker deposits the Fixed Rate Bond into a Special Purpose Vehicle (the “SPV”, which is generally organized as a trust),
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 155 | |
Notes to Financial Statements
organized by the broker. The Portfolio buys a residual interest in the assets and cash flows of the SPV, often referred to as an inverse floating rate obligation (“Inverse Floater”). The SPV also issues floating rate notes (“Floating Rate Notes”) which are sold to third parties. The Floating Rate Notes pay interest at rates that generally reset weekly and their holders have the option to tender their notes to a liquidity provider for redemption at par. The Inverse Floater held by the Portfolio gives the Portfolio the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the trustee transfer the Fixed Rate Bond held by the SPV to the Portfolio, thereby collapsing the SPV. The SPV may also be collapsed in certain other circumstances. In accordance with U.S. GAAP requirements regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities, the Portfolio accounts for the transaction described above as a secured borrowing by including the Fixed Rate Bond in its portfolio of investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in its statement of assets and liabilities. Interest expense related to the Portfolios’ liability with respect to Floating Rate Notes is recorded as incurred. The interest expense is also included in the Portfolios’ expense ratio. At November 30, 2016, the amount of Floating Rate Notes outstanding was $4,445,000, $136,730,000, $5,100,000 and $0 and the related interest rate was 0.00%, 0.00% and 0.00% for AB California, AB High Income Municipal and AB National Portfolios, respectively. At November 30, 2016, AB New York Portfolio did not have any Floating Rate Notes outstanding. For the November 30, 2016, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were as follows:
| | | | | | | | |
| Portfolio | | Average Amount Outstanding | | | Weighted Average Interest Rate | |
AB California | | $ | 4,445,000 | | | | 1.27 | % |
AB High income Municipal | | | 145,716,339 | | | | 2.33 | % |
AB National | | | 5,100,000 | | | | 1.26 | % |
Each Portfolio may also purchase Inverse Floaters in the secondary market without first owning the underlying bond. Such an Inverse Floater is included in the portfolio of investments but is not required to be treated as a secured borrowing and reflected in the Portfolios’ financial statements as a secured borrowing. For the six months ended November 30, 2016, the Portfolios did not engage in such transactions.
NOTE J
Other
In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, “final rules”)
| | |
| 156 | | • AB MUNICIPAL INCOME FUND |
Notes to Financial Statements
intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the financial statements and related disclosures.
NOTE K
Subsequent Events
Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Portfolios’ financial statements through this date.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 157 | |
Notes to Financial Statements
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB California Portfolio | |
| | | Class A | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.51 | | | | $ 10.84 | | | | $ 10.94 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .19 | | | | .39 | | | | .23 | | | | .41 | | | | .41 | | | | .44 | | | | .46 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.58 | ) | | | .26 | | | | (.18 | ) | | | .59 | | | | (.67 | ) | | | .65 | | | | (.10 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.39 | ) | | | .65 | | | | .05 | | | | 1.00 | | | | (.26 | ) | | | 1.09 | | | | .36 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.18 | ) | | | (.38 | ) | | | (.22 | ) | | | (.39 | ) | | | (.39 | ) | | | (.42 | ) | | | (.45 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | (.01 | ) |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.18 | ) | | | (.38 | ) | | | (.22 | ) | | | (.39 | ) | | | (.42 | ) | | | (.42 | ) | | | (.46 | ) |
| | | | |
Net asset value, end of period | | | $ 10.97 | | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.51 | | | | $ 10.84 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.41 | )% | | | 5.88 | % | | | .46 | % | | | 9.42 | % | | | (2.31 | )% | | | 10.19 | % | | | 3.47 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $471,258 | | | | $482,744 | | | | $440,324 | | | | $442,905 | | | | $462,298 | | | | $533,057 | | | | $511,656 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .76 | %^ | | | .76 | % | | | .78 | %^ | | | .81 | % | | | .80 | % | | | .76 | % | | | .76 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .79 | %^ | | | .80 | % | | | .83 | %^ | | | .86 | % | | | .85 | % | | | .85 | % | | | .86 | % |
Net investment income(c) | | | 3.22 | %^ | | | 3.46 | % | | | 3.52 | %^ | | | 3.72 | % | | | 3.68 | % | | | 3.89 | % | | | 4.39 | % |
Portfolio turnover rate | | | 5 | % | | | 13 | % | | | 12 | % | | | 14 | % | | | 22 | % | | | 23 | % | | | 12 | % |
See footnote summary on pages 173-175.
| | |
| 158 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB California Portfolio | |
| | | Class B | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.54 | | | | $ 11.28 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.50 | | | | $ 10.84 | | | | $ 10.94 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .14 | | | | .31 | | | | .19 | | | | .34 | | | | .33 | | | | .36 | | | | .39 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.57 | ) | | | .25 | | | | (.17 | ) | | | .58 | | | | (.66 | ) | | | .64 | | | | (.11 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.43 | ) | | | .56 | | | | .02 | | | | .92 | | | | (.33 | ) | | | 1.00 | | | | .28 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.30 | ) | | | (.18 | ) | | | (.31 | ) | | | (.31 | ) | | | (.34 | ) | | | (.37 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | (.01 | ) |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.14 | ) | | | (.30 | ) | | | (.18 | ) | | | (.31 | ) | | | (.34 | ) | | | (.34 | ) | | | (.38 | ) |
| | | | |
Net asset value, end of period | | | $ 10.97 | | | | $ 11.54 | | | | $ 11.28 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.50 | | | | $ 10.84 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.77 | )% | | | 5.00 | % | | | .13 | % | | | 8.66 | % | | | (2.90 | )% | | | 9.34 | % | | | 2.75 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $82 | | | | $91 | | | | $188 | | | | $405 | | | | $1,017 | | | | $1,804 | | | | $2,872 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.51 | %^ | | | 1.51 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.50 | % | | | 1.46 | % | | | 1.46 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.58 | %^ | | | 1.56 | % | | | 1.57 | %^ | | | 1.56 | % | | | 1.56 | % | | | 1.58 | % | | | 1.58 | % |
Net investment income(c) | | | 2.47 | %^ | | | 2.73 | % | | | 2.80 | %^ | | | 3.05 | % | | | 2.97 | % | | | 3.21 | % | | | 3.70 | % |
Portfolio turnover rate | | | 5 | % | | | 13 | % | | | 12 | % | | | 14 | % | | | 22 | % | | | 23 | % | | | 12 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 159 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB California Portfolio | |
| | | Class C | |
| | | Six Months Ended November 30, 2016 (unaudited) | | | Year Ended May 31, 2016 | | | November 1, 2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.43 | | | | $ 10.83 | | | | $ 11.50 | | | | $ 10.83 | | | | $ 10.93 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .14 | | | | .31 | | | | .19 | | | | .33 | | | | .34 | | | | .36 | | | | .39 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.57 | ) | | | .26 | | | | (.17 | ) | | | .58 | | | | (.67 | ) | | | .65 | | | | (.11 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.43 | ) | | | .57 | | | | .02 | | | | .91 | | | | (.33 | ) | | | 1.01 | | | | .28 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.30 | ) | | | (.18 | ) | | | (.31 | ) | | | (.31 | ) | | | (.34 | ) | | | (.37 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | (.01 | ) |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.14 | ) | | | (.30 | ) | | | (.18 | ) | | | (.31 | ) | | | (.34 | ) | | | (.34 | ) | | | (.38 | ) |
| | | | |
Net asset value, end of period | | | $ 10.97 | | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.43 | | | | $ 10.83 | | | | $ 11.50 | | | | $ 10.83 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.77 | )% | | | 5.09 | % | | | .13 | % | | | 8.57 | % | | | (2.90 | )% | | | 9.44 | % | | | 2.75 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $90,115 | | | | $89,568 | | | | $83,677 | | | | $83,761 | | | | $87,172 | | | | $107,831 | | | | $106,547 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.51 | %^ | | | 1.51 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.50 | % | | | 1.46 | % | | | 1.46 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.55 | %^ | | | 1.56 | % | | | 1.55 | %^ | | | 1.56 | % | | | 1.55 | % | | | 1.55 | % | | | 1.56 | % |
Net investment income(c) | | | 2.47 | %^ | | | 2.71 | % | | | 2.79 | %^ | | | 3.02 | % | | | 2.98 | % | | | 3.19 | % | | | 3.69 | % |
Portfolio turnover rate | | | 5 | % | | | 13 | % | | | 12 | % | | | 14 | % | | | 22 | % | | | 23 | % | | | 12 | % |
See footnote summary on pages 173-175.
| | |
| 160 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB California Portfolio | |
| | | Advisor Class | |
| | | Six Months Ended November 30, 2016 (unaudited) | | | Year Ended May 31, 2016 | | | November 1, 2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.51 | | | | $ 10.84 | | | | $ 10.94 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .20 | | | | .42 | | | | .25 | | | | .44 | | | | .45 | | | | .47 | | | | .49 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.57 | ) | | | .26 | | | | (.18 | ) | | | .59 | | | | (.68 | ) | | | .65 | | | | (.10 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.37 | ) | | | .68 | | | | .07 | | | | 1.03 | | | | (.23 | ) | | | 1.12 | | | | .39 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.20 | ) | | | (.41 | ) | | | (.24 | ) | | | (.42 | ) | | | (.42 | ) | | | (.45 | ) | | | (.48 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) | | | – 0 | – | | | (.01 | ) |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.20 | ) | | | (.41 | ) | | | (.24 | ) | | | (.42 | ) | | | (.45 | ) | | | (.45 | ) | | | (.49 | ) |
| | | | |
Net asset value, end of period | | | $ 10.97 | | | | $ 11.54 | | | | $ 11.27 | | | | $ 11.44 | | | | $ 10.83 | | | | $ 11.51 | | | | $ 10.84 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.29 | )% | | | 6.14 | % | | | .62 | % | | | 9.75 | % | | | (2.02 | )% | | | 10.53 | % | | | 3.78 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $126,713 | | | | $112,091 | | | | $66,892 | | | | $48,251 | | | | $36,856 | | | | $37,507 | | | | $23,338 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .51 | %^ | | | .51 | % | | | .51 | %^ | | | .51 | % | | | .50 | % | | | .46 | % | | | .46 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .54 | %^ | | | .55 | % | | | .55 | %^ | | | .56 | % | | | .55 | % | | | .55 | % | | | .55 | % |
Net investment income(c) | | | 3.47 | %^ | | | 3.69 | % | | | 3.78 | %^ | | | 3.99 | % | | | 3.97 | % | | | 4.16 | % | | | 4.65 | % |
Portfolio turnover rate | | | 5 | % | | | 13 | % | | | 12 | % | | | 14 | % | | | 22 | % | | | 23 | % | | | 12 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 161 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB High Income Municipal Portfolio | |
| | | Class A | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31,
2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value,
beginning of period | | | $ 11.67 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | | | | $ 10.69 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .22 | | | | .48 | | | | .28 | | | | .54 | | | | .53 | | | | .53 | | | | .54 | |
Net realized and unrealized gain (loss)
on investment transactions | | | (.78 | ) | | | .48 | | | | (.01 | ) | | | .93 | | | | (1.18 | ) | | | 1.28 | | | | (.42 | ) |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.56 | ) | | | .96 | | | | .27 | | | | 1.47 | | | | (.65 | ) | | | 1.81 | | | | .12 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.22 | ) | | | (.49 | ) | | | (.29 | ) | | | (.54 | ) | | | (.54 | ) | | | (.55 | ) | | | (.56 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) |
| | | | |
Total dividends and distributions | | | (.22 | ) | | | (.49 | ) | | | (.29 | ) | | | (.54 | ) | | | (.54 | ) | | | (.55 | ) | | | (.59 | ) |
| | | | |
Net asset value, end of period | | | $ 10.89 | | | | $ 11.67 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (4.89 | )% | | | 8.82 | % | | | 2.45 | % | | | 14.62 | % | | | (5.88 | )% | | | 18.08 | % | | | 1.47 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $821,653 | | | | $860,490 | | | | $693,523 | | | | $627,941 | | | | $593,742 | | | | $613,787 | | | | $279,661 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .92 | %^ | | | .86 | % | | | .86 | %^ | | | .89 | % | | | .89 | % | | | .91 | % | | | .92 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .93 | %^ | | | .88 | % | | | .89 | %^ | | | .96 | % | | | .98 | % | | | 1.00 | % | | | 1.06 | % |
Net investment income(b) | | | 3.75 | %^ | | | 4.23 | % | | | 4.33 | %^ | | | 4.99 | % | | | 4.78 | % | | | 4.81 | % | | | 5.51 | % |
Portfolio turnover rate | | | 13 | % | | | 14 | % | | | 9 | % | | | 17 | % | | | 41 | % | | | 14 | % | | | 43 | % |
See footnote summary on pages 173-175.
| | |
| 162 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB High Income Municipal Portfolio | |
| | | Class C | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.66 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | | | | $ 10.69 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .18 | | | | .39 | | | | .24 | | | | .46 | | | | .46 | | | | .45 | | | | .47 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.77 | ) | | | .48 | | | | (.01 | ) | | | .93 | | | | (1.19 | ) | | | 1.28 | | | | (.42 | ) |
Contributions from Affiliates | | | | | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.59 | ) | | | .87 | | | | .23 | | | | 1.39 | | | | (.73 | ) | | | 1.73 | | | | .05 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.18 | ) | | | (.41 | ) | | | (.25 | ) | | | (.46 | ) | | | (.46 | ) | | | (.47 | ) | | | (.49 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) |
| | | | |
Total dividends and distributions | | | (.18 | ) | | | (.41 | ) | | | (.25 | ) | | | (.46 | ) | | | (.46 | ) | | | (.47 | ) | | | (.52 | ) |
| | | | |
Net asset value, end of period | | | $ 10.89 | | | | $ 11.66 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset
value(e) | | | (5.17 | )% | | | 7.92 | % | | | 2.02 | % | | | 13.83 | % | | | (6.53 | )% | | | 17.27 | % | | | .76 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period
(000’s omitted) | | | $326,511 | | | | $343,821 | | | | $284,261 | | | | $256,667 | | | | $209,480 | | | | $212,480 | | | | $87,012 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.67 | %^ | | | 1.61 | % | | | 1.59 | %^ | | | 1.59 | % | | | 1.59 | % | | | 1.61 | % | | | 1.62 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.68 | %^ | | | 1.63 | % | | | 1.62 | %^ | | | 1.66 | % | | | 1.68 | % | | | 1.71 | % | | | 1.76 | % |
Net investment income(b) | | | 3.00 | %^ | | | 3.49 | % | | | 3.61 | %^ | | | 4.28 | % | | | 4.09 | % | | | 4.10 | % | | | 4.81 | % |
Portfolio turnover rate | | | 13 | % | | | 14 | % | | | 9 | % | | | 17 | % | | | 41 | % | | | 14 | % | | | 43 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 163 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB High Income Municipal Portfolio | |
| | | Advisor Class | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 11.66 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | | | | $ 10.69 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .23 | | | | .51 | | | | .30 | | | | .56 | | | | .57 | | | | .56 | | | | .57 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.76 | ) | | | .47 | | | | (.01 | ) | | | .94 | | | | (1.19 | ) | | | 1.28 | | | | (.42 | ) |
Contributions from Affiliates | | | | | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.53 | ) | | | .98 | | | | 29.00 | | | | 1.50 | | | | (.62 | ) | | | 1.84 | | | | .15 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.24 | ) | | | (.52 | ) | | | (.31 | ) | | | (.57 | ) | | | (.57 | ) | | | (.58 | ) | | | (.59 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.03 | ) |
| | | | |
Total dividends and distributions | | | (.24 | ) | | | (.52 | ) | | | (.31 | ) | | | (.57 | ) | | | (.57 | ) | | | (.58 | ) | | | (.62 | ) |
| | | | |
Net asset value, end of period | | | $ 10.89 | | | | $ 11.66 | | | | $ 11.20 | | | | $ 11.22 | | | | $ 10.29 | | | | $ 11.48 | | | | $ 10.22 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (4.69 | )% | | | 9.00 | % | | | 2.61 | % | | | 14.97 | % | | | (5.60 | )% | | | 18.44 | % | | | 1.77 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of
period
(000’s omitted) | | | $1,330,111 | | | | $1,332,857 | | | | $1,084,612 | | | | $964,020 | | | | $418,473 | | | | $435,548 | | | | $188,932 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .67 | %^ | | | .61 | % | | | .59 | %^ | | | .59 | % | | | .59 | % | | | .61 | % | | | .62 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .68 | %^ | | | .63 | % | | | .62 | %^ | | | .66 | % | | | .68 | % | | | .71 | % | | | .76 | % |
Net investment income(b) | | | 3.99 | %^ | | | 4.48 | % | | | 4.60 | %^ | | | 5.20 | % | | | 5.08 | % | | | 5.13 | % | | | 5.81 | % |
Portfolio turnover rate | | | 13 | % | | | 14 | % | | | 9 | % | | | 17 | % | | | 41 | % | | | 14 | % | | | 43 | % |
See footnote summary on pages 173-175.
| | |
| 164 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | |
| | | Class A | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.51 | | | | $ 10.20 | | | | $ 10.34 | | | | $ 9.91 | | | | $ 10.61 | | | | $ 9.97 | | | | $ 10.04 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .15 | | | | .33 | | | | .20 | | | | .37 | | | | .36 | | | | .39 | | | | .43 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.51 | ) | | | .32 | | | | (.13 | ) | | | .43 | | | | (.70 | ) | | | .65 | | | | (.07 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.36 | ) | | | .65 | | | | .07 | | | | .80 | | | | (.34 | ) | | | 1.04 | | | | .36 | |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.15 | ) | | | (.34 | ) | | | (.21 | ) | | | (.37 | ) | | | (.36 | ) | | | (.40 | ) | | | (.43 | ) |
| | | | |
Net asset value, end of period | | | $ 10.00 | | | | $ 10.51 | | | | $ 10.20 | | | | $ 10.34 | | | | $ 9.91 | | | | $ 10.61 | | | | $ 9.97 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.47 | )% | | | 6.44 | % | | | .62 | % | | | 8.23 | % | | | (3.27 | )% | | | 10.57 | % | | | 3.80 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $625,912 | | | | $657,481 | | | | $612,321 | | | | $581,215 | | | | $649,618 | | | | $754,297 | | | | $641,972 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .75 | %^ | | | .75 | % | | | .78 | %^ | | | .81 | % | | | .80 | % | | | .76 | % | | | .76 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .79 | %^ | | | .80 | % | | | .82 | %^ | | | .86 | % | | | .86 | % | | | .86 | % | | | .88 | % |
Net investment income(b) | | | 2.86 | %^ | | | 3.23 | % | | | 3.39 | %^ | | | 3.65 | % | | | 3.45 | % | | | 3.81 | % | | | 4.42 | % |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 6 | % | | | 19 | % | | | 26 | % | | | 11 | % | | | 8 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 165 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | |
| | | Class B | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.50 | | | | $ 10.19 | | | | $ 10.32 | | | | $ 9.90 | | | | $ 10.60 | | | | $ ��9.96 | | | | $ 10.02 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .11 | | | | .26 | | | | .16 | | | | .30 | | | | .28 | | | | .33 | | | | .36 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.52 | ) | | | .32 | | | | (.13 | ) | | | .42 | | | | (.69 | ) | | | .64 | | | | (.06 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.41 | ) | | | .58 | | | | .03 | | | | .72 | | | | (.41 | ) | | | .97 | | | | .30 | |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.10 | ) | | | (.27 | ) | | | (.16 | ) | | | (.30 | ) | | | (.29 | ) | | | (.33 | ) | | | (.36 | ) |
| | | | |
Net asset value, end of period | | | $ 9.99 | | | | $ 10.50 | | | | $ 10.19 | | | | $ 10.32 | | | | $ 9.90 | | | | $ 10.60 | | | | $ 9.96 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.97 | )% | | | 5.77 | % | | | .30 | % | | | 7.39 | % | | | (3.95 | )% | | | 9.83 | % | | | 3.19 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $470 | | | | $552 | | | | $920 | | | | $1,451 | | | | $3,126 | | | | $5,368 | | | | $7,334 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.50 | %^ | | | 1.50 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.49 | % | | | 1.46 | % | | | 1.46 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.54 | %^ | | | 1.58 | % | | | 1.57 | %^ | | | 1.57 | % | | | 1.57 | % | | | 1.58 | % | | | 1.60 | % |
Net investment income(b) | | | 2.12 | %^ | | | 2.50 | % | | | 2.69 | %^ | | | 2.98 | % | | | 2.75 | % | | | 3.16 | % | | | 3.74 | % |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 6 | % | | | 19 | % | | | 26 | % | | | 11 | % | | | 8 | % |
See footnote summary on pages 173-175.
| | |
| 166 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | |
| | | Class C | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to
May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.50 | | | | $ 10.19 | | | | $ 10.33 | | | | $ 9.90 | | | | $ 10.60 | | | | $ 9.96 | | | | $ 10.03 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .11 | | | | .26 | | | | .16 | | | | .30 | | | | .29 | | | | .32 | | | | .36 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.51 | ) | | | .31 | | | | (.14 | ) | | | .43 | | | | (.70 | ) | | | .64 | | | | (.07 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.40 | ) | | | .57 | | | | .02 | | | | .73 | | | | (.41 | ) | | | .96 | | | | .29 | |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.11 | ) | | | (.26 | ) | | | (.16 | ) | | | (.30 | ) | | | (.29 | ) | | | (.32 | ) | | | (.36 | ) |
| | | | |
Net asset value, end of period | | | $ 9.99 | | | | $ 10.50 | | | | $ 10.19 | | | | $ 10.33 | | | | $ 9.90 | | | | $ 10.60 | | | | $ 9.96 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.83 | )% | | | 5.66 | % | | | .20 | % | | | 7.49 | % | | | (3.95 | )% | | | 9.81 | % | | | 3.09 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $145,562 | | | | $144,152 | | | | $131,936 | | | | $130,601 | | | | $144,358 | | | | $172,228 | | | | $140,265 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.50 | %^ | | | 1.50 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.50 | % | | | 1.46 | % | | | 1.46 | % |
Expenses, before waivers/reimbursements(f) | | | 1.54 | %^ | | | 1.56 | % | | | 1.56 | %^ | | | 1.56 | % | | | 1.56 | % | | | 1.57 | % | | | 1.58 | % |
Net investment income(b) | | | 2.11 | %^ | | | 2.49 | % | | | 2.67 | %^ | | | 2.96 | % | | | 2.76 | % | | | 3.11 | % | | | 3.72 | % |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 6 | % | | | 19 | % | | | 26 | % | | | 11 | % | | | 8 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 167 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB National Portfolio | |
| | | Advisor Class | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.51 | | | | $ 10.21 | | | | $ 10.34 | | | | $ 9.91 | | | | $ 10.61 | | | | $ 9.97 | | | | $ 10.04 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .16 | | | | .36 | | | | .22 | | | | .40 | | | | .39 | | | | .42 | | | | .46 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.51 | ) | | | .30 | | | | (.13 | ) | | | .43 | | | | (.70 | ) | | | .65 | | | | (.07 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.35 | ) | | | .66 | | | | .09 | | | | .83 | | | | (.31 | ) | | | 1.07 | | | | .39 | |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.16 | ) | | | (.36 | ) | | | (.22 | ) | | | (.40 | ) | | | (.39 | ) | | | (.43 | ) | | | (.46 | ) |
| | | | |
Net asset value, end of period | | | $ 10.00 | | | | $ 10.51 | | | | $ 10.21 | | | | $ 10.34 | | | | $ 9.91 | | | | $ 10.61 | | | | $ 9.97 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset
value(e) | | | (3.35 | )% | | | 6.60 | % | | | .88 | % | | | 8.55 | % | | | (2.98 | )% | | | 10.91 | % | | | 4.11 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $486,328 | | | | $453,596 | | | | $315,809 | | | | $254,434 | | | | $165,782 | | | | $186,303 | | | | $94,240 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .50 | %^ | | | .50 | % | | | .51 | %^ | | | .51 | % | | | .50 | % | | | .46 | % | | | .46 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .54 | %^ | | | .55 | % | | | .55 | %^ | | | .55 | % | | | .56 | % | | | .56 | % | | | .58 | % |
Net investment income(b) | | | 3.10 | %^ | | | 3.46 | % | | | 3.66 | %^ | | | 3.92 | % | | | 3.74 | % | | | 4.08 | % | | | 4.70 | % |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 6 | % | | | 19 | % | | | 26 | % | | | 11 | % | | | 8 | % |
See footnote summary on pages 173-175.
| | |
| 168 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | |
| | | Class A | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.20 | | | | $ 9.92 | | | | $ 10.01 | | | | $ 9.70 | | | | $ 10.47 | | | | $ 9.97 | | | | $ 10.01 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .14 | | | | .30 | | | | .19 | | | | .34 | | | | .33 | | | | .36 | | | | .38 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.49 | ) | | | .29 | | | | (.09 | ) | | | .31 | | | | (.76 | ) | | | .50 | | | | (.04 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.35 | ) | | | .59 | | | | .10 | | | | .65 | | | | (.43 | ) | | | .86 | | | | .34 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.14 | ) | | | (.31 | ) | | | (.19 | ) | | | (.34 | ) | | | (.32 | ) | | | (.36 | ) | | | (.38 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | – 0 | – | | | – 0 | – |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.14 | ) | | | (.31 | ) | | | (.19 | ) | | | (.34 | ) | | | (.34 | ) | | | (.36 | ) | | | (.38 | ) |
| | | | |
Net asset value, end of period | | | $ 9.71 | | | | $ 10.20 | | | | $ 9.92 | | | | $ 10.01 | | | | $ 9.70 | | | | $ 10.47 | | | | $ 9.97 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.48 | )% | | | 6.00 | % | | | .97 | % | | | 6.79 | % | | | (4.07 | )% | | | 8.76 | % | | | 3.56 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $456,657 | | | | $457,414 | | | | $428,145 | | | | $434,208 | | | | $464,134 | | | | $579,899 | | | | $493,133 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .75 | %^ | | | .77 | % | | | .78 | %^ | | | .81 | % | | | .79 | % | | | .75 | % | | | .75 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .80 | %^ | | | .83 | % | | | .85 | %^ | | | .87 | % | | | .85 | % | | | .85 | % | | | .87 | % |
Net investment income(b) | | | 2.75 | %^ | | | 3.03 | % | | | 3.21 | %^ | | | 3.42 | % | | | 3.28 | % | | | 3.49 | % | | | 3.90 | % |
Portfolio turnover rate | | | 9 | % | | | 16 | % | | | 12 | % | | | 28 | % | | | 19 | % | | | 14 | % | | | 7 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 169 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | |
| | | Class B | |
| | | Six Months Ended November 30, 2016 (unaudited) | | | Year Ended May 31, 2016 | | | November 1, 2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.19 | | | | $ 9.91 | | | | $ 10.00 | | | | $ 9.69 | | | | $ 10.45 | | | | $ 9.96 | | | | $ 10.00 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .10 | | | | .23 | | | | .14 | | | | .27 | | | | .26 | | | | .29 | | | | .31 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.49 | ) | | | .28 | | | | (.08 | ) | | | .31 | | | | (.74 | ) | | | .49 | | | | (.04 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.39 | ) | | | .51 | | | | .06 | | | | .58 | | | | (.48 | ) | | | .78 | | | | .27 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.10 | ) | | | (.23 | ) | | | (.15 | ) | | | (.27 | ) | | | (.26 | ) | | | (.29 | ) | | | (.31 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | – 0 | – | | | – 0 | – |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.10 | ) | | | (.23 | ) | | | (.15 | ) | | | (.27 | ) | | | (.28 | ) | | | (.29 | ) | | | (.31 | ) |
| | | | |
Net asset value, end of period | | | $ 9.70 | | | | $ 10.19 | | | | $ 9.91 | | | | $ 10.00 | | | | $ 9.69 | | | | $ 10.45 | | | | $ 9.96 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.84 | )% | | | 5.22 | % | | | .55 | % | | | 6.06 | % | | | (4.64 | )% | | | 7.92 | % | | | 2.85 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $925 | | | | $1,146 | | | | $1,646 | | | | $2,217 | | | | $5,510 | | | | $9,664 | | | | $14,134 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.50 | %^ | | | 1.52 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.49 | % | | | 1.45 | % | | | 1.45 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.55 | %^ | | | 1.61 | % | | | 1.59 | %^ | | | 1.58 | % | | | 1.55 | % | | | 1.57 | % | | | 1.59 | % |
Net investment income(b) | | | 2.00 | %^ | | | 2.30 | % | | | 2.49 | %^ | | | 2.77 | % | | | 2.57 | % | | | 2.82 | % | | | 3.22 | % |
Portfolio turnover rate | | | 9 | % | | | 16 | % | | | 12 | % | | | 28 | % | | | 19 | % | | | 14 | % | | | 7 | % |
See footnote summary on pages 173-175.
| | |
| 170 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | |
| | | Class C | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1, 2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.20 | | | | $ 9.92 | | | | $ 10.00 | | | | $ 9.69 | | | | $ 10.46 | | | | $ 9.96 | | | | $ 10.01 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .10 | | | | .23 | | | | .14 | | | | .27 | | | | .26 | | | | .29 | | | | .31 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.50 | ) | | | .28 | | | | (.07 | ) | | | .31 | | | | (.75 | ) | | | .50 | | | | (.05 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.40 | ) | | | .51 | | | | .07 | | | | .58 | | | | (.49 | ) | | | .79 | | | | .26 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.10 | ) | | | (.23 | ) | | | (.15 | ) | | | (.27 | ) | | | (.26 | ) | | | (.29 | ) | | | (.31 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | – 0 | – | | | – 0 | – |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.10 | ) | | | (.23 | ) | | | (.15 | ) | | | (.27 | ) | | | (.28 | ) | | | (.29 | ) | | | (.31 | ) |
| | | | |
Net asset value, end of period | | | $ 9.70 | | | | $ 10.20 | | | | $ 9.92 | | | | $ 10.00 | | | | $ 9.69 | | | | $ 10.46 | | | | $ 9.96 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.94 | )% | | | 5.21 | % | | | .65 | % | | | 6.05 | % | | | (4.74 | )% | | | 8.01 | % | | | 2.74 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $84,303 | | | | $83,380 | | | | $72,332 | | | | $71,934 | | | | $80,507 | | | | $106,135 | | | | $79,223 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | 1.50 | %^ | | | 1.52 | % | | | 1.51 | %^ | | | 1.51 | % | | | 1.49 | % | | | 1.45 | % | | | 1.45 | % |
Expenses, before waivers/reimbursements(f)(g) | | | 1.55 | %^ | | | 1.58 | % | | | 1.58 | %^ | | | 1.57 | % | | | 1.55 | % | | | 1.55 | % | | | 1.57 | % |
Net investment income(b) | | | 2.00 | %^ | | | 2.28 | % | | | 2.48 | %^ | | | 2.72 | % | | | 2.58 | % | | | 2.79 | % | | | 3.20 | % |
Portfolio turnover rate | | | 9 | % | | | 16 | % | | | 12 | % | | | 28 | % | | | 19 | % | | | 14 | % | | | 7 | % |
See footnote summary on pages 173-175.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 171 | |
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AB New York Portfolio | |
| | | Advisor Class | |
| | | Six Months
Ended
November 30,
2016 (unaudited) | | | Year Ended
May 31, 2016 | | | November 1,
2014 to May 31, 2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 10.20 | | | | $ 9.93 | | | | $ 10.01 | | | | $ 9.70 | | | | $ 10.47 | | | | $ 9.97 | | | | $ 10.01 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b)(c) | | | .15 | | | | .33 | | | | .20 | | | | .36 | | | | .37 | | | | .39 | | | | .41 | |
Net realized and unrealized gain (loss) on investment transactions | | | (.49 | ) | | | .27 | | | | (.08 | ) | | | .32 | | | | (.76 | ) | | | .50 | | | | (.04 | ) |
| | | | |
Net increase (decrease) in net asset value from operations | | | (.34 | ) | | | .60 | | | | .12 | | | | .68 | | | | (.39 | ) | | | .89 | | | | .37 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.15 | ) | | | (.33 | ) | | | (.20 | ) | | | (.37 | ) | | | (.36 | ) | | | (.39 | ) | | | (.41 | ) |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.02 | ) | | | – 0 | – | | | – 0 | – |
Tax return of capital | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) | | | – 0 | – | | | – 0 | – |
| | | | |
Total dividends and distributions | | | (.15 | ) | | | (.33 | ) | | | (.20 | ) | | | (.37 | ) | | | (.38 | ) | | | (.39 | ) | | | (.41 | ) |
| | | | |
Net asset value, end of period | | | $ 9.71 | | | | $ 10.20 | | | | $ 9.93 | | | | $ 10.01 | | | | $ 9.70 | | | | $ 10.47 | | | | $ 9.97 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(e) | | | (3.36 | )% | | | 6.15 | % | | | 1.23 | % | | | 7.11 | % | | | (3.78 | )% | | | 9.09 | % | | | 3.87 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000’s omitted) | | | $67,357 | | | | $54,742 | | | | $28,838 | | | | $20,755 | | | | $16,229 | | | | $23,882 | | | | $11,169 | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses, net of waivers/reimbursements(f)(g) | | | .50 | %^ | | | .52 | % | | | .51 | %^ | | | .51 | % | | | .49 | % | | | .45 | % | | | .45 | % |
Expenses, before waivers/reimbursements(f)(g) | | | .55 | %^ | | | .58 | % | | | .57 | %^ | | | .57 | % | | | .55 | % | | | .54 | % | | | .57 | % |
Net investment income(b) | | | 2.99 | %^ | | | 3.25 | % | | | 3.46 | %^ | | | 3.69 | % | | | 3.56 | % | | | 3.77 | % | | | 4.21 | % |
Portfolio turnover rate | | | 9 | % | | | 16 | % | | | 12 | % | | | 28 | % | | | 19 | % | | | 14 | % | | | 7 | % |
See footnote summary on pages 173-175.
| | |
| 172 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
| (a) | | The Portfolio changed its fiscal year end from October 31 to May 31. |
| (b) | | Net of fees and expenses waived/reimbursed by the Adviser. |
| (c) | | Based on average shares outstanding. |
| (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 presented below exclude interest expense: |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended
November 30,
2016
(unaudited) | | | Year
Ended
May 31,
2016 | | | November 1,
2014 to
May 31,
2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | |
| | | | |
AB California Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .75 | %^ | | | .75 | % | | | .77 | %^ | | | .80 | % | | | .79 | % | | | .75 | % |
Before waivers/reimbursements | | | .79 | %^ | | | .80 | % | | | .82 | %^ | | | .85 | % | | | .84 | % | | | .84 | % |
Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.50 | %^ | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.48 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.57 | %^ | | | 1.55 | % | | | 1.57 | %^ | | | 1.56 | % | | | 1.54 | % | | | 1.57 | % |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.50 | %^ | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.49 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.54 | %^ | | | 1.55 | % | | | 1.55 | %^ | | | 1.55 | % | | | 1.54 | % | | | 1.54 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .50 | %^ | | | .50 | % | | | .50 | %^ | | | .50 | % | | | .49 | % | | | .45 | % |
Before waivers/reimbursements | | | .54 | %^ | | | .55 | % | | | .54 | %^ | | | .55 | % | | | .54 | % | | | .53 | % |
| | | | | | |
AB High Income Municipal Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .79 | %^ | | | .80 | % | | | .80 | %^ | | | .80 | % | | | .80 | % | | | .80 | % |
Before waivers/reimbursements | | | .80 | %^ | | | .82 | % | | | .83 | %^ | | | .88 | % | | | .89 | % | | | .89 | % |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.54 | %^ | | | 1.55 | % | | | 1.53 | %^ | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % |
Before waivers/reimbursements | | | 1.55 | %^ | | | 1.57 | % | | | 1.56 | %^ | | | 1.58 | % | | | 1.59 | % | | | 1.59 | % |
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 173 | |
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended
November 30,
2016
(unaudited) | | | Year
Ended
May 31,
2016 | | | November 1,
2014 to
May 31,
2015(a) | | | Year Ended October 31, | |
| | | | | | 2014 | | | 2013 | | | 2012 | |
| | | | |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .54 | %^ | | | .55 | % | | | .53 | %^ | | | .50 | % | | | .50 | % | | | .50 | % |
Before waivers/reimbursements | | | .55 | %^ | | | .57 | % | | | .56 | %^ | | | .58 | % | | | .59 | % | | | .59 | % |
| | | | | | |
AB National Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .74 | %^ | | | .75 | % | | | .77 | %^ | | | .80 | % | | | .79 | % | | | .75 | % |
Before waivers/reimbursements | | | .79 | %^ | | | .80 | % | | | .82 | %^ | | | .85 | % | | | .85 | % | | | .85 | % |
Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.49 | %^ | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.48 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.54 | %^ | | | 1.58 | % | | | 1.57 | % | | | 1.56 | % | | | 1.56 | % | | | 1.58 | % |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.49 | %^ | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.49 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.54 | %^ | | | 1.55 | % | | | 1.55 | %^ | | | 1.55 | % | | | 1.55 | % | | | 1.56 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .49 | %^ | | | .50 | % | | | .50 | %^ | | | .50 | % | | | .49 | % | | | .45 | % |
Before waivers/reimbursements | | | .54 | %^ | | | .55 | % | | | .55 | %^ | | | .55 | % | | | .55 | % | | | .55 | % |
| | | | | | |
AB New York Portfolio | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .75 | %^ | | | .75 | % | | | .77 | %^ | | | .80 | % | | | .79 | % | | | .75 | % |
Before waivers/reimbursements | | | .80 | %^ | | | .81 | % | | | .84 | %^ | | | .87 | % | | | .84 | % | | | .85 | % |
Class B | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.50 | % | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.48 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.55 | %^ | | | 1.59 | % | | | 1.58 | %^ | | | 1.57 | % | | | 1.55 | % | | | 1.57 | % |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.50 | %^ | | | 1.50 | % | | | 1.50 | %^ | | | 1.50 | % | | | 1.49 | % | | | 1.45 | % |
Before waivers/reimbursements | | | 1.55 | %^ | | | 1.57 | % | | | 1.57 | %^ | | | 1.57 | % | | | 1.54 | % | | | 1.55 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .50 | %^ | | | .50 | % | | | .50 | %^ | | | .50 | % | �� | | .49 | % | | | .45 | % |
Before waivers/reimbursements | | | .55 | %^ | | | .57 | % | | | .56 | %^ | | | .56 | % | | | .54 | % | | | .54 | % |
| | |
| 174 | | • AB MUNICIPAL INCOME FUND |
Financial Highlights
| (g) | | The Portfolios’ investments in affiliated underlying portfolios incur no direct expenses, but bear proportionate shares of the acquired fund fees (i.e., operating, administrative and investment advisory fee) of the affiliated underlying portfolios. For the periods shown below, the Adviser has voluntarily agreed to waive certain acquired fund fees as follows: |
| | | | |
| | | Six Months Ended
November 30, 2016 | |
AB California Portfolio | | | .00 | %^ |
AB High Income Portfolio | | | .01 | %^ |
AB National Portfolio | | | .01 | %^ |
AB New York Portfolio | | | .00 | %^ |
See notes to financial statements.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 175 | |
Financial Highlights
BOARD OF DIRECTORS
| | |
Marshall C. Turner, Jr.(1), Chairman John H. Dobkin(1) Michael J. Downey(1) William H. Foulk, Jr.(1) D. James Guzy(1) Nancy P. Jacklin(1) | | Robert M. Keith, President and Chief Executive Officer Carol C. McMullen(1) Garry L. Moody(1) Earl D. Weiner(1) |
OFFICERS
| | |
Philip L. Kirstein,
Senior Vice President and Independent Compliance Officer Robert “Guy” B. Davidson III,(2) Senior Vice President Fred S. Cohen,(2) Vice President Terrance T. Hults,(2) Vice President | | Matthew J. Norton,(2) Vice President Emilie D. Wrapp, Secretary Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer |
| | |
Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc.
1345 Avenue of the Americas
New York, NY 10105 Legal Counsel Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004 | | Independent Registered Public Accounting Firm Ernst & Young LLP
5 Times Square
New York, NY 10036 Transfer Agent AllianceBernstein Investor
Services, Inc. P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672 |
| (1) | | Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee. |
| (2) | | The day-to-day management of, and investment decisions for, the Fund’s portfolios are made by the Municipal Bond Investment Team. Messrs. Davidson, Hults and Norton are the investment professionals with the most significant responsibility for the day-to-day management of the High Income Municipal Portfolio. Messrs. Cohen, Davidson, Hults and Norton are the investment professionals with the most significant responsibility for the day-to-day management of the California, National and New York Portfolios. |
| | |
| 176 | | • AB MUNICIPAL INCOME FUND |
Board of Directors
Information Regarding the Review and Approval of the Advisory Agreement in Respect of Each Fund
The disinterested directors (the “directors”) of AB Municipal Income Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of each of the portfolios listed below (each, a “Fund” and collectively, the “Funds”) at a meeting held on November 1-3, 2016 (the “Meeting”):
| | • | | AB California Portfolio |
| | • | | AB High Income Municipal Portfolio |
Prior to approval of the continuance of the Advisory Agreement in respect of each Fund, 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 an independent evaluation prepared by the Company’s Senior Officer (who is also the Company’s Independent Compliance Officer) of the reasonableness of the advisory fee in respect of each Fund, in which the Senior Officer concluded that the contractual fee for each Fund was reasonable. The directors also discussed the proposed continuances in private sessions with counsel and the Company’s Senior Officer.
The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Funds 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 receive presentations from the Adviser on the investment results of the Funds and review extensive materials and information presented by the Adviser.
The directors also considered all other factors they believed relevant, including the specific matters discussed below. In their deliberations, the directors did not identify any particular information that was all-important
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 177 | |
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 each Fund and the overall arrangements between each Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:
Nature, Extent and Quality of Services Provided
The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for each Fund. They also noted the professional experience and qualifications of each Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that each Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to such 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 in respect of a Fund, result in a higher rate of total compensation from such Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Company’s Senior Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of each 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 each of the Funds under the Advisory Agreement.
Costs of Services Provided and Profitability
The directors reviewed a schedule of the revenues, expenses and related notes indicating the profitability of each Fund to the Adviser for calendar years 2014 and 2015 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Company’s Senior Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationships with the Funds,
| | |
| 178 | | • AB MUNICIPAL INCOME FUND |
including those relating to its subsidiaries that provide transfer agency and distribution services to the Funds. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of 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 relationships with the Funds before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with each Fund was not unreasonable.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Funds, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Funds’ principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Funds’ shares; and transfer agency fees paid by the Funds 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 Funds.
Investment Results
In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for each Fund at each regular Board meeting during the year.
At the Meeting, the directors reviewed information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an analytical service that is not affiliated with the Adviser, showing the performance of the Class A Shares of each Fund against a peer group and a peer universe selected by Broadridge, and information prepared by the Adviser showing performance of the Class A Shares of each Fund against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods, as applicable, ended July 31, 2016 and (in the case of comparisons with the broad-based securities market index) the period since inception. Based on their review, the directors concluded that each Fund’s investment performance was acceptable.
Advisory Fees and Other Expenses
The directors considered the advisory fee rate paid by each Fund to the Adviser and information prepared by Broadridge concerning advisory fee rates paid by other funds in the same Broadridge category as such Fund at a common asset level. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 179 | |
services that are included in the fees paid by other funds. The directors considered each Fund’s contractual effective advisory fee rate against a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.
The Adviser informed the directors that there were no institutional products managed by it that have a substantially similar investment style to any of the Funds.
The directors also considered the total expense ratio of the Class A shares of each Fund in comparison to a peer group and a peer universe selected by Broadridge. The expense ratio of each Fund was based on the Fund’s latest fiscal year. The directors noted the effects of any fee waivers and/or expense reimbursements as a result of an undertaking by the Adviser. The directors noted that it was likely that the expense ratios of some of the other funds in each Fund’s Broadridge 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 Funds by others. Based on their review, the directors concluded that each Fund’s expense ratio was acceptable.
Economies of Scale
The directors noted that the advisory fee schedules for the Funds contain breakpoints and that the net assets of AB High Income Municipal Portfolio were higher than the breakpoint levels. Accordingly, AB High Income Municipal Portfolio’s current effective advisory fee rate reflected a reduction due to the breakpoints and would be further reduced to the extent the net assets of such Fund increase. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and 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 Funds, there is no uniformity or pattern in the fees
| | |
| 180 | | • AB MUNICIPAL INCOME FUND |
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 AB High Income Municipal Portfolio’s breakpoint arrangements were acceptable and provide a means for sharing of any economies of scale. In the case of the other Funds the directors concluded that the Funds’ shareholders would benefit from a sharing of economies of scale in the event a Fund’s net assets exceed a breakpoint in the future.
| | | | |
| AB MUNICIPAL INCOME FUND • | | | 181 | |
THIS PAGE IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS
AB FAMILY OF FUNDS
US EQUITY
US Core
Core Opportunities Fund
Select US Equity Portfolio
US Growth
Concentrated Growth Fund
Discovery Growth Fund
Growth Fund
Large Cap Growth Fund
Small Cap Growth Portfolio
US Value
Discovery Value Fund
Equity Income Fund
Relative Value Fund*
Small Cap Value Portfolio
Value Fund
INTERNATIONAL/ GLOBAL EQUITY
International/Global Core
Global Core Equity Portfolio
Global Equity & Covered Call Strategy Fund
International Portfolio
International Strategic Core Portfolio
Sustainable Global Thematic Fund*
Tax-Managed International Portfolio
International/Global Growth
International Growth Fund
International/Global Value
Asia ex-Japan Equity Portfolio
International Value Fund
FIXED INCOME
Municipal
High Income Municipal Portfolio
Intermediate California Municipal Portfolio
Intermediate Diversified Municipal Portfolio
Intermediate New York Municipal Portfolio
FIXED INCOME (continued)
Municipal Bond Inflation Strategy
Tax-Aware Fixed Income Portfolio
National Portfolio
Arizona Portfolio
California Portfolio
Massachusetts Portfolio
Minnesota Portfolio
New Jersey Portfolio
New York Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
Taxable
Bond Inflation Strategy
Global Bond Fund
High Income Fund
High Yield Portfolio
Income Fund
Intermediate Bond Portfolio
Limited Duration High Income Portfolio
Short Duration Portfolio
ALTERNATIVES
All Market Real Return Portfolio
Credit Long/Short Portfolio
Global Real Estate Investment Fund
Long/Short Multi-Manager Fund
Multi-Manager Alternative Strategies Fund
Select US Long/Short Portfolio
Unconstrained Bond Fund
MULTI-ASSET
All Market Income Portfolio
Emerging Markets Multi-Asset Portfolio
Global Risk Allocation Fund
MULTI-ASSET (continued)
Target-Date
Multi-Manager Select Retirement Allocation Fund
Multi-Manager Select 2010 Fund
Multi-Manager Select 2015 Fund
Multi-Manager Select 2020 Fund
Multi-Manager Select 2025 Fund
Multi-Manager Select 2030 Fund
Multi-Manager Select 2035 Fund
Multi-Manager Select 2040 Fund
Multi-Manager Select 2045 Fund
Multi-Manager Select 2050 Fund
Multi-Manager Select 2055 Fund
Wealth Strategies
Balanced Wealth Strategy
Conservative Wealth Strategy
Wealth Appreciation Strategy
Tax-Managed Balanced Wealth Strategy
Tax-Managed Wealth Appreciation Strategy
CLOSED-END FUNDS
AB Multi-Manager Alternative Fund
Alliance California Municipal Income Fund
AllianceBernstein Global High Income Fund
AllianceBernstein National Municipal Income Fund
We also offer Government Exchange Reserves, which serves as the money market fund exchange vehicle for the AB mutual funds. An investment in Government Exchange Reserves is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
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.
* Prior to January 9, 2017, the Relative Value Fund was named Growth & Income Fund; prior to November 1, 2016, the Sustainable Global Thematic Fund was named Global Thematic Growth Fund.
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| 182 | | • AB MUNICIPAL INCOME FUND |
AB Family of Funds
NOTES
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| AB MUNICIPAL INCOME FUND • | | | 183 | |
NOTES
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| 184 | | • AB MUNICIPAL INCOME FUND |
AB MUNICIPAL INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
800.221.5672
MI-0152-1116 
ITEM 2. CODE OF ETHICS.
Not applicable when filing a semi-annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a semi-annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a semi-annual report to shareholders.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
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EXHIBIT NO. | | DESCRIPTION OF EXHIBIT |
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| 12 (b) (1) | | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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| 12 (b) (2) | | Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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| 12 (c) | | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): AB Municipal Income Fund, Inc.
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| By: | | /s/ Robert M. Keith |
| | Robert M. Keith |
| | President |
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| Date: | | January 26, 2017 |
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/ Robert M. Keith |
| | Robert M. Keith |
| | President |
| |
| Date: | | January 26, 2017 |
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| By: | | /s/ Joseph J. Mantineo |
| | Joseph J. Mantineo |
| | Treasurer and Chief Financial Officer |
| |
| Date: | | January 26, 2017 |
