Ab Municipal Income Fund Ii NPORT-P AB Minnesota Portfolio (Feb 2021 report)

AB Municipal Income Fund II

AB Minnesota Portfolio

Portfolio of Investments

February 28, 2021 (unaudited)

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 94.8%
Long-Term Municipal Bonds – 93.8%
Minnesota – 93.8%
Anoka-Hennepin Independent School District No. 11 (Anoka-Hennepin Independent School District No. 11 COP) Series 2014A 5.00%, 02/01/2034	$	1,695	$	1,896,722
Central Minnesota Municipal Power Agency Series 2012 5.00%, 01/01/2032		2,200		2,283,820
City of Center City MN (Hazelden Betty Ford Foundation) 4.00%, 11/01/2041		850		953,598
Series 2014 5.00%, 11/01/2029-11/01/2044		800		882,096
City of Duluth MN Series 2016A 5.00%, 02/01/2034		1,000		1,189,910
City of Maple Grove MN (Maple Grove Hospital Corp.) Series 2017 5.00%, 05/01/2031		1,000		1,176,270
City of Minneapolis MN (Fairview Health Services Obligated Group) Series 2015A 5.00%, 11/15/2033		1,000		1,150,440
Series 2018A 5.00%, 11/15/2036		2,000		2,434,560
City of Minneapolis MN (Minneapolis Common Bond Fund) Series 20102A 6.25%, 12/01/2030		1,000		1,014,510
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) Series 2017A 5.00%, 11/15/2028		1,355		1,667,463
NATL 0.105%, 08/01/2028(a)		575		558,469
City of Rochester MN (Mayo Clinic) Series 2016B 5.00%, 11/15/2036		60		88,666
Series 2018 4.00%, 11/15/2048		1,000		1,133,240
City of St. Cloud MN (CentraCare Health System Obligated Group) Series 2010A 5.125%, 05/01/2030		95		95,260
City of St. Paul MN (City of St. Paul MN Sales Tax) Series 2014G 5.00%, 11/01/2030-11/01/2032		2,900		3,327,305
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) 5.00%, 08/01/2049		395		417,499

1

	Principal Amount (000)		U.S. $ Value
Cloquet Independent School District No. 94 Series 2015B 5.00%, 02/01/2031	$	2,200	$	2,563,264
County of Hennepin MN Series 2019B 5.00%, 12/15/2035		1,575		2,002,266
Duluth Economic Development Authority (Essentia Health Obligated Group) 4.25%, 02/15/2043		500		557,855
Series 2018A 5.00%, 02/15/2048		1,000		1,172,300
Housing & Redevelopment Authority of The City of St. Paul Minnesota Series 2015A 5.00%, 11/15/2040 (Pre-refunded/ETM)		600		720,684
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Amherst H Wilder Foundation/MN) Series 2020A 5.00%, 12/01/2036		1,575		1,855,476
Housing & Redevelopment Authority of The City of St. Paul Minnesota (HealthPartners Obligated Group) Series 2015A 5.00%, 07/01/2032		1,000		1,149,380
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Hmong College Prep Academy) 5.00%, 09/01/2040-09/01/2055		390		452,786
Hutchinson Utilities Commission Series 2012A 5.00%, 12/01/2025		420		452,718
Minneapolis Special School District No. 1 Series 2016 5.00%, 02/01/2031		3,000		3,692,610
Minneapolis-St. Paul Metropolitan Airports Commission Series 2012B 5.00%, 01/01/2029		1,250		1,296,762
Minnesota Higher Education Facilities Authority (College of St. Scholastica, Inc.) 4.00%, 12/01/2040		750		812,003
Minnesota Higher Education Facilities Authority (Hamline University) Series 2017B 5.00%, 10/01/2036		500		554,495
Minnesota Higher Education Facilities Authority (St. Catherine University) Series 2018A 5.00%, 10/01/2045		1,100		1,274,295
Minnesota Higher Education Facilities Authority (St. Olaf College) 3.00%, 10/01/2041(b)		1,000		1,075,540
Series 20158 5.00%, 12/01/2032		1,000		1,160,520
Minnesota Higher Education Facilities Authority (University of St. Thomas/Minneapolis) Series 2017A 4.00%, 10/01/2034		800		911,008

2

	Principal Amount (000)		U.S. $ Value
Minnesota Housing Finance Agency (Minnesota Housing Finance Agency State Lease) Series 2019A 4.00%, 08/01/2031	$	50	$	60,160
Minnesota Municipal Power Agency Series 2014 5.00%, 10/01/2032		750		856,650
New Prague Independent School District No. 721 Series 2015A 4.00%, 02/01/2032		1,000		1,096,920
North St. Paul-Maplewood-Oakdale Independent School District No. 622 Series 2019A 3.00%, 02/01/2038		1,000		1,068,960
Northern Municipal Power Agency Series 2017 5.00%, 01/01/2033-01/01/2041		1,150		1,338,940
Southern Minnesota Municipal Power Agency Series 2017A 5.00%, 01/01/2047		2,000		2,390,100
State of Minnesota Series 2019A 5.00%, 08/01/2037		1,000		1,278,450
University of Minnesota Series 2014B 4.00%, 01/01/2032		2,000		2,147,380
Western Minnesota Municipal Power Agency Series 2014A 5.00%, 01/01/2040 (Pre-refunded/ETM)		1,500		1,696,740
Total Long-Term Municipal Bonds (cost $50,544,864)				53,908,090
Short-Term Municipal Notes – 1.0%
Minnesota – 1.0%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) 0.04%, 11/15/2034(c) (cost $575,000)		575		575,000
Total Municipal Obligations (cost $51,119,864)				54,483,090
	Shares
SHORT-TERM INVESTMENTS – 5.6%
Investment Companies – 5.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(d) (e) (f) (cost $3,198,049)		3,198,049		3,198,049

3

	U.S. $ Value
Total Investments – 100.4% (cost $54,317,913)(g)	$	57,681,139
Other assets less liabilities – (0.4)%		(245,747	)
Net Assets – 100.0%	$	57,435,392

CENTRALLY CLEARED INFLATION (CPI) SWAPS

			Rate Type
Notional Amount (000)		Termination Date	Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
USD	1,410	01/15/2028	1.230%	CPI#	Maturity	$	109,766	$	—	$	109,766
USD	1,070	01/15/2028	0.735%	CPI#	Maturity		125,651		—		125,651
USD	255	01/15/2030	1.572%	CPI#	Maturity		15,898		—		15,898
USD	255	01/15/2030	1.587%	CPI#	Maturity		15,503		—		15,503
USD	190	02/15/2051	CPI#	2.290%	Maturity		4,920		—		4,920
						$	271,738	$	—	$	271,738

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

CENTRALLY CLEARED INTEREST RATE SWAPS

			Rate Type
Notional Amount (000)		Termination Date	Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
USD	169	02/05/2025	1.361%	3 Month LIBOR	Semi- Annual/ Quarterly	$	(4,876	)	$	(4,790	)	$	(86	)
USD	169	02/05/2025	3 Month LIBOR	1.361%	Quarterly/ Semi-Annual		4,877			—			4,877
USD	381	02/06/2025	1.419%	3 Month LIBOR	Semi-Annual/ Quarterly		(11,833	)		(11,657	)		(176	)
USD	381	02/06/2025	3 Month LIBOR	1.419%	Quarterly/ Semi-Annual		11,833			—			11,833
USD	4,070	01/15/2030	1.023%	3 Month LIBOR	Semi-Annual/ Quarterly		142,519			—			142,519
USD	13,290	11/12/2039	3 Month LIBOR	3.320%	Quarterly/ Semi-Annual		3,356,242			—			3,356,242
USD	5,000	11/12/2039	3.320%	3 Month LIBOR	Semi-Annual/ Quarterly		(1,265,579	)		(1,218,021	)		(47,558	)
USD	500	11/12/2039	3.320%	3 Month LIBOR	Semi-Annual/ Quarterly		(126,075	)		(117,345	)		(8,730	)
USD	640	11/01/2044	3 Month LIBOR	1.892%	Quarterly/ Semi-Annual		—			—			—
USD	6,985	11/01/2049	3.137%	3 Month LIBOR	Semi-Annual/ Quarterly		(2,062,396	)		—			(2,062,396	)
USD	3,000	11/01/2049	3 Month LIBOR	3.137%	Quarterly/ Semi-Annual		887,978			858,606			29,372
USD	100	02/15/2051	1.942%	3 Month LIBOR	Semi-Annual/ Quarterly		(951	)		—			(951	)
						$	931,739		$	(493,207	)	$	1,424,946

4

INTEREST RATE SWAPS

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund			Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Citibank, NA		USD	835		10/09/2029		1.120	%		SIFMA	*		Quarterly	$	(8,103	)	$	—	$	(8,103	)
Citibank, NA		USD	835		10/09/2029		1.125	%		SIFMA	*		Quarterly		(8,492	)		—		(8,492	)
														$	(16,595	)	$	—	$	(16,595	)

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) 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 February 28, 2021 and the aggregate market value of this security amounted to $558,469 or 0.97% of net assets.

(b) When-Issued or delayed delivery security.

(c) 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.

(d) Affiliated investments.

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

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

(g) As of February 28, 2021, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $7,249,253 and gross unrealized depreciation of investments was $(2,205,938), resulting in net unrealized appreciation of $5,043,315.

As of February 28, 2021, the Portfolio’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 1.0% and 0.0%, respectively.

Glossary:

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

5

AB Municipal Income Fund II

AB Minnesota Portfolio

February 28, 2021 (unaudited)

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

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

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

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

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

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

The following table summarizes the valuation of the Portfolio’s investments by the above fair value hierarchy levels as of February 28, 2021:

Investments in Securities:	Level 1		Level 2		Level 3		Total
Assets:
Long-Term Municipal Bonds	$	—	$	53,908,090	$	—	$	53,908,090
Short-Term Municipal Notes		—		575,000		—		575,000
Short-Term Investments		3,198,049		—		—		3,198,049
Total Investments in Securities		3,198,049		54,483,090		—		57,681,139
Other Financial Instruments(a):
Assets:
Centrally Cleared Inflation (CPI) Swaps		—		271,738		—		271,738

6

Centrally Cleared Interest Rate Swaps		—		4,403,449			—		4,403,449
Liabilities:
Centrally Cleared Interest Rate Swaps		—		(3,471,710	)		—		(3,471,710	)
Interest Rate Swaps		—		(16,595	)		—		(16,595	)
Total	$	3,198,049	$	55,669,972		$	—	$	58,868,021

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

A summary of the Portfolio’s transactions in AB mutual funds for the nine months ended February 28, 2021 is as follows:

Fund	Market Value 05/31/2020 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 02/28/2021 (000)		Dividend Income (000)
Government Money Market Portfolio	$	3,001	$	11,379	$	11,182	$	3,198	$	1

7