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: 811-08188
AB HIGH 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: October 31, 2023
Date of reporting period: April 30, 2023
ITEM 1. | REPORTS TO STOCKHOLDERS. |
APR 04.30.23
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g43p34.jpg)
SEMI-ANNUAL REPORT
AB HIGH INCOME FUND
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684covart_7682.jpg)
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Investment Products Offered | | • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed |
Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.
This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.
You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.
The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.
AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.
The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P.
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FROM THE PRESIDENT | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g92f19.jpg) |
Dear Shareholder,
We’re pleased to provide this report for the AB High Income Fund (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.
At AB, we’re striving to help our clients achieve better outcomes by:
+ | | Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets |
+ | | Applying differentiated investment insights through a connected global research network |
+ | | Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions |
Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.
For more information about AB’s comprehensive range of products and shareholder resources, please log on to www.abfunds.com.
Thank you for your investment in AB mutual funds—and for placing your trust in our firm.
Sincerely,
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g55d83.jpg)
Onur Erzan
President and Chief Executive Officer, AB Mutual Funds
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abfunds.com | | AB HIGH INCOME FUND | 1 |
SEMI-ANNUAL REPORT
June 7, 2023
This report provides management’s discussion of fund performance for the AB High Income Fund for the semi-annual reporting period ended April 30, 2023.
The Fund’s investment objective is to seek to maximize total returns from price appreciation and income.
NAV RETURNS AS OF APRIL 30, 2023 (unaudited)
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| | 6 Months | | | 12 Months | |
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AB HIGH INCOME FUND | | | | | | | | |
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Class A Shares | | | 6.78% | | | | -0.81% | |
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Class C Shares | | | 6.46% | | | | -1.55% | |
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Advisor Class Shares1 | | | 6.90% | | | | -0.56% | |
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Class R Shares1 | | | 6.71% | | | | -1.08% | |
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Class K Shares1 | | | 6.87% | | | | -0.79% | |
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Class I Shares1 | | | 7.05% | | | | -0.44% | |
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Class Z Shares1 | | | 7.09% | | | | -0.35% | |
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Primary Benchmark: Bloomberg Global High Yield Index (USD hedged) | | | 7.70% | | | | 0.42% | |
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Blended Benchmark: 33% JPM EMBI Global / 33% JPM GBI-EM / 33% Bloomberg US Corporate HY 2% Issuer Capped Index | | | 8.83% | | | | 1.33% | |
1 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund. |
INVESTMENT RESULTS
The table above shows the Fund’s performance compared with its primary benchmark, the Bloomberg Global High Yield Index (USD hedged), and its blended benchmark, which is composed of equal weightings of the JPMorgan Emerging Markets Bond Index Global (“JPM EMBI Global”), the JPMorgan Government Bond Index-Emerging Markets (“JPM GBI-EM”) (local currency-denominated) and the Bloomberg US Corporate High Yield (“HY”) 2% Issuer Capped Index, for the six- and 12-month periods ended April 30, 2023.
During both periods, all share classes underperformed the primary benchmark, before sales charges. Over the six-month period, industry allocation was the main detractor, relative to the benchmark. Underweights to sovereign bonds and US real estate investment trusts (“REITs”), an overweight to media, along with off-benchmark exposure to commercial mortgage-backed securities (“CMBS”) and US Treasuries, detracted more
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than gains from off-benchmark exposure to collateralized loan obligations and collateralized mortgage obligations (“CMOs”), and eurozone and US high-yield credit default swaps. Yield-curve positioning in the US also detracted, as losses from underweights to the two- and 20-year parts of the curve and an overweight to the 10-year part of the curve were partially offset by gains from an underweight to the six-month part of the curve and an overweight to the five-year part of the curve. Security selection was a minor detractor to performance. Country allocation contributed, mostly from an underweight to the eurozone. Currency decisions were a minor contributor.
During the 12-month period, security selection detracted the most from returns. Selection within technology, banking, services, media, finance and consumer noncyclical detracted more than gains from selection in consumer retailers, eurozone REITs, energy, telecommunications and transportation services. Industry allocation was the primary contributor to performance, mostly from off-benchmark exposure to CMOs, CMBS, US and eurozone high-yield credit default swaps, as well as underweights to sovereign bonds and US REITs. These industry allocation gains were partially offset by losses from overweights to media and eurozone REITs, and an underweight to energy. Country allocation contributed, from an underweight to the eurozone and to a lesser extent, an overweight to the US. Yield-curve positioning in the US also contributed, mostly from an overweight on the six-month part of the curve that was partially offset by losses from an overweight to the five-year part of the curve and an underweight on the two-year part of the curve, and underweights to the two- and five-year parts of the eurozone curve. Currency decisions were a minor contributor to performance.
During both periods, the Fund used derivatives in the form of treasury futures to manage and hedge duration risk and/or to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure. Credit default swap indices were used to take active high-yield credit risk. Total return swaps were used to create synthetic high-yield exposure in the Fund. CMBS indices were used to take active commercial real estate exposure. During the 12-month period, the Fund sold credit options to generate income.
MARKET REVIEW AND INVESTMENT STRATEGY
During the six-month period ended April 30, 2023, fixed-income government bond market yields were volatile after peaking in October, as investors adjusted their expectations for inflation, growth and central bank tightening. Some major developed-market central banks started to reduce rate hikes toward the end of the period and pause further hikes as overall inflation began to fall. Stress in the global banking sector caused yields to fall sharply in March. Falling yields during the period led all major developed-market treasuries to post positive returns except in the UK.
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abfunds.com | | AB HIGH INCOME FUND | 3 |
Developed-market government bonds rose the most in the US, Australia and Canada, and by the least in Germany. In corporate credit-risk sectors, investment-grade and high-yield corporates outperformed developed-market treasury markets by a wide margin. Corporate bonds in the US and eurozone also outperformed respective treasuries. Emerging-market hard-currency sovereign and corporate bonds hedged to the US dollar, as well as local-currency bonds, led risk sector returns as the US dollar fell against the vast majority of developed- and emerging-market currencies. Brent crude oil prices fell on global growth concerns.
The Fund’s Senior Investment Management Team (the “Team”) continues to seek to maximize total return, utilizing a high-income strategy with a global, multi-sector approach. The Team pursues an attractive risk/return profile by managing currency exposure, and invests in treasury inflation-protected securities, while also seeking to enhance returns with other selective investments in global fixed income and high yield.
INVESTMENT POLICIES
The Fund pursues income opportunities from government, corporate, emerging-market and high-yield sources. It has the flexibility to invest in a broad range of fixed-income securities in both developed- and emerging-market countries. The Fund’s investments may include US and non-US corporate debt securities and sovereign debt securities. The Fund may invest, without limitation, in either US dollar-denominated or non-US dollar-denominated fixed-income securities.
The Adviser selects securities for purchase or sale based on its assessment of the securities’ risk and return characteristics as well as the securities’ impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.
The Fund may invest in debt securities with a range of maturities from short- to long-term. Substantially all of the Fund’s assets may be invested in lower-rated securities, which may include securities having the lowest rating for non-subordinated debt instruments (i.e., rated C by Moody’s Investors Service or CCC+ or lower by S&P Global Ratings and Fitch Ratings, or the equivalent by any nationally recognized statistical rating organization), and unrated securities of equivalent investment quality. The Fund also may invest in investment-grade securities and unrated securities.
The Fund may invest in mortgage-related and other asset-backed securities; loan participations and assignments; inflation-indexed
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securities; structured securities; variable-, floating- and inverse-floating-rate instruments; and preferred stock, and may use other investment techniques. The Fund may also make short sales of securities or maintain a short position. The Fund may use borrowings or other leverage for investment purposes. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements and dollar rolls. The Fund may invest in derivatives, such as options, futures contracts, forwards or swap agreements.
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DISCLOSURES AND RISKS
Benchmark Disclosure
All indices are unmanaged and do not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Global High Yield Index (USD hedged) represents non-investment grade fixed-income securities of companies in the US, and developed and emerging markets, hedged to the US dollar. The JPM® EMBI Global (market-capitalization weighted) represents the performance of US dollar-denominated Brady bonds, Eurobonds and trade loans issued by sovereign and quasi-sovereign entities. The JPM GBI-EM represents the performance of local-currency government bonds issued by emerging markets. The Bloomberg US Corporate HY 2% Issuer Capped Index is the 2% Issuer Capped component of the US Corporate HY Index. The Bloomberg US Corporate HY Index represents the performance of fixed-income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million and at least one year to maturity. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.
A Word About Risk
Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.
Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.
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DISCLOSURES AND RISKS (continued)
Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.
Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.
Emerging-Market Risk: Investments in emerging-market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties.
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.
Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.
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DISCLOSURES AND RISKS (continued)
Loan Participations and Assignments Risk: When the Fund purchases loan participations and assignments, it is subject to the credit risk associated with the underlying corporate borrower. In addition, the lack of a liquid secondary market for loan participations and assignments may have an adverse impact on the value of such investments and the Fund’s ability to dispose of particular assignments or participations when necessary to meet the Fund’s liquidity needs or in response to a specific economic event such as a deterioration in the creditworthiness of the borrower.
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.
Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.
Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
The Fund may invest in mortgage-backed and/or other asset-backed securities, including securities backed by mortgages and assets with an international or emerging-markets origination and securities backed by non-performing loans at the time of investment. Investments in mortgage-backed and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes
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DISCLOSURES AND RISKS (continued)
in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that, in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by nongovernmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.
These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.
An Important Note About Historical Performance
The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.
All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.
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abfunds.com | | AB HIGH INCOME FUND | 9 |
HISTORICAL PERFORMANCE
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2023 (unaudited)
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| | NAV Returns | | | SEC Returns (reflects applicable sales charges) | | | SEC Yields1 | |
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CLASS A SHARES | | | | | | | | | | | 9.28% | |
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1 Year | | | -0.81% | | | | -5.04% | | | | | |
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5 Years | | | 1.36% | | | | 0.48% | | | | | |
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10 Years | | | 2.82% | | | | 2.38% | | | | | |
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CLASS C SHARES | | | | | | | | | | | 8.83% | |
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1 Year | | | -1.55% | | | | -2.47% | | | | | |
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5 Years | | | 0.52% | | | | 0.52% | | | | | |
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10 Years2 | | | 1.99% | | | | 1.99% | | | | | |
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ADVISOR CLASS SHARES3 | | | | | | | | | | | 9.92% | |
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1 Year | | | -0.56% | | | | -0.56% | | | | | |
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5 Years | | | 1.61% | | | | 1.61% | | | | | |
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10 Years | | | 3.09% | | | | 3.09% | | | | | |
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CLASS R SHARES3 | | | | | | | | | | | 9.23% | |
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1 Year | | | -1.08% | | | | -1.08% | | | | | |
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5 Years | | | 0.95% | | | | 0.95% | | | | | |
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10 Years | | | 2.42% | | | | 2.42% | | | | | |
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CLASS K SHARES3 | | | | | | | | | | | 9.55% | |
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1 Year | | | -0.79% | | | | -0.79% | | | | | |
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5 Years | | | 1.28% | | | | 1.28% | | | | | |
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10 Years | | | 2.76% | | | | 2.76% | | | | | |
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CLASS I SHARES3 | | | | | | | | | | | 9.85% | |
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1 Year | | | -0.44% | | | | -0.44% | | | | | |
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5 Years | | | 1.61% | | | | 1.61% | | | | | |
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10 Years | | | 3.11% | | | | 3.11% | | | | | |
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CLASS Z SHARES3 | | | | | | | | | | | 9.97% | |
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1 Year | | | -0.35% | | | | -0.35% | | | | | |
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5 Years | | | 1.68% | | | | 1.68% | | | | | |
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Since Inception4 | | | 3.41% | | | | 3.41% | | | | | |
The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.90%, 1.64%, 0.65%, 1.31%, 1.00%, 0.66% and 0.57% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.
(footnotes continued on next page)
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HISTORICAL PERFORMANCE (continued)
1 | SEC yields are calculated based on SEC guidelines for the 30-day period ended April 30, 2023. |
2 | Assumes conversion of Class C shares into Class A shares after eight years. |
3 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund. |
4 | Inception date: 10/15/2013. |
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HISTORICAL PERFORMANCE (continued)
SEC AVERAGE ANNUAL RETURNS
AS OF THE MOST RECENT CALENDAR QUARTER-END
MARCH 31, 2023 (unaudited)
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| | SEC Returns (reflects applicable sales charges) | |
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CLASS A SHARES | | | | |
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1 Year | | | -9.06% | |
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5 Years | | | 0.27% | |
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10 Years | | | 2.49% | |
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CLASS C SHARES | | | | |
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1 Year | | | -6.72% | |
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5 Years | | | 0.31% | |
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10 Years1 | | | 2.11% | |
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ADVISOR CLASS SHARES2 | | | | |
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1 Year | | | -4.80% | |
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5 Years | | | 1.39% | |
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10 Years | | | 3.20% | |
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CLASS R SHARES2 | | | | |
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1 Year | | | -5.45% | |
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5 Years | | | 0.73% | |
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10 Years | | | 2.53% | |
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CLASS K SHARES2 | | | | |
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1 Year | | | -5.17% | |
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5 Years | | | 1.03% | |
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10 Years | | | 2.86% | |
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CLASS I SHARES2 | | | | |
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1 Year | | | -4.95% | |
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5 Years | | | 1.38% | |
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10 Years | | | 3.22% | |
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CLASS Z SHARES2 | | | | |
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1 Year | | | -4.74% | |
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5 Years | | | 1.45% | |
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Since Inception3 | | | 3.32% | |
1 | Assumes conversion of Class C shares into Class A shares after eight years. |
2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund. |
3 | Inception date: 10/15/2013. |
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EXPENSE EXAMPLE
(unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
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| | Beginning Account Value November 1, 2022 | | | Ending Account Value April 30, 2023 | | | Expenses Paid During Period* | | | Annualized Expense Ratio* | |
Class A | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,067.80 | | | $ | 4.67 | | | | 0.91 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,020.28 | | | $ | 4.56 | | | | 0.91 | % |
Class C | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,064.60 | | | $ | 8.50 | | | | 1.66 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,016.56 | | | $ | 8.30 | | | | 1.66 | % |
Advisor Class | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,069.00 | | | $ | 3.39 | | | | 0.66 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.52 | | | $ | 3.31 | | | | 0.66 | % |
Class R | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,067.10 | | | $ | 6.87 | | | | 1.34 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,018.15 | | | $ | 6.71 | | | | 1.34 | % |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 13 |
EXPENSE EXAMPLE (continued)
| | | | | | | | | | | | | | | | |
| | Beginning Account Value November 1, 2022 | | | Ending Account Value April 30, 2023 | | | Expenses Paid During Period* | | | Annualized Expense Ratio* | |
Class K | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,068.70 | | | $ | 5.28 | | | | 1.03 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,019.69 | | | $ | 5.16 | | | | 1.03 | % |
Class I | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,070.50 | | | $ | 3.49 | | | | 0.68 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.42 | | | $ | 3.41 | | | | 0.68 | % |
Class Z | | | | | | | | | | | | | | | | |
Actual | | $ | 1,000 | | | $ | 1,070.90 | | | $ | 3.08 | | | | 0.60 | % |
Hypothetical** | | $ | 1,000 | | | $ | 1,021.82 | | | $ | 3.01 | | | | 0.60 | % |
* | Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
** | Assumes 5% annual return before expenses. |
| | |
| |
14 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO SUMMARY
April 30, 2023 (unaudited)
PORTFOLIO STATISTICS
Net Assets ($mil): $3,068.2
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g01a18.jpg)
1 | The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” securities type weightings represent 0.3% or less in the following security types: Asset-Backed Securities, Governments–Sovereign Bonds, Inflation-Linked Securities and Rights. |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 15 |
PORTFOLIO SUMMARY (continued)
April 30, 2023 (unaudited)
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g01a19.jpg)
1 | The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.7% or less in the following: Angola, Argentina, Australia, Bahrain, Belgium, Cayman Islands, Chile, China, Czech Republic, Dominican Republic, Ecuador, Egypt, El Salvador, Gabon, Ghana, Guatemala, Indonesia, Ireland, Israel, Ivory Coast, Jamaica, Japan, Jersey (Channel Islands), Kazakhstan, Macau, Morocco, Netherlands, Nigeria, Norway, Oman, Panama, Peru, Senegal, Slovenia, South Africa, South Korea, Sweden, Switzerland, Trinidad & Tobago, Turkey, Ukraine, United Republic of Tanzania, Venezuela and Zambia. |
| | |
| |
16 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS
April 30, 2023 (unaudited)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
CORPORATES - NON-INVESTMENT GRADE – 55.9% | | | | | | | | | | | | |
Industrial – 50.3% | | | | | | | | | | | | |
Basic – 2.7% | | | | | | | | | | | | |
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(a) | | | U.S.$ | | | | 2,645 | | | $ | 2,179,653 | |
7.50%, 09/30/2029(a) | | | | | | | 4,355 | | | | 3,150,281 | |
Constellium SE 3.125%, 07/15/2029(a) | | | EUR | | | | 4,303 | | | | 3,901,340 | |
CVR Partners LP/CVR Nitrogen Finance Corp. 6.125%, 06/15/2028(a) | | | U.S.$ | | | | 2,051 | | | | 1,855,203 | |
Element Solutions, Inc. 3.875%, 09/01/2028(a) | | | | | | | 4,145 | | | | 3,662,546 | |
ERP Iron Ore LLC 9.039%, 12/31/2019(b)(c)(d)(e)(f) | | | | | | | 1,355 | | | | 903,863 | |
FMG Resources (August 2006) Pty Ltd. 4.375%, 04/01/2031(a) | | | | | | | 12,055 | | | | 10,462,266 | |
4.50%, 09/15/2027(a) | | | | | | | 1,475 | | | | 1,401,567 | |
6.125%, 04/15/2032(a) | | | | | | | 8,381 | | | | 8,105,391 | |
Graphic Packaging International LLC 3.50%, 03/15/2028(a) | | | | | | | 1,084 | | | | 990,834 | |
INEOS Quattro Finance 1 PLC 3.75%, 07/15/2026(a) | | | EUR | | | | 108 | | | | 104,220 | |
Ingevity Corp. 3.875%, 11/01/2028(a) | | | U.S.$ | | | | 3,288 | | | | 2,894,037 | |
Intelligent Packaging Holdco Issuer LP 9.00% (9.00% Cash or 9.75% PIK), 01/15/2026(a)(f) | | | | | | | 3,201 | | | | 2,305,484 | |
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC 6.00%, 09/15/2028(a) | | | | | | | 4,418 | | | | 3,675,671 | |
Kobe US Midco 2, Inc. 9.25% (9.25% Cash or 10.00% PIK), 11/01/2026(a)(f) | | | | | | | 6,077 | | | | 4,258,820 | |
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(b)(c)(d)(e)(g) | | | | | | | 16,121 | | | | – 0 | – |
Mercer International, Inc. 5.125%, 02/01/2029 | | | | | | | 2,306 | | | | 1,926,673 | |
Olympus Water US Holding Corp. 7.125%, 10/01/2027(a) | | | | | | | 2,996 | | | | 2,857,010 | |
Roller Bearing Co. of America, Inc. 4.375%, 10/15/2029(a) | | | | | | | 512 | | | | 464,981 | |
SCIL IV LLC/SCIL USA Holdings LLC 4.375%, 11/01/2026(a) | | | EUR | | | | 1,267 | | | | 1,283,202 | |
5.375%, 11/01/2026(a) | | | U.S.$ | | | | 6,449 | | | | 5,936,309 | |
Sealed Air Corp. 6.875%, 07/15/2033(a) | | | | | | | 2,036 | | | | 2,161,896 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Sealed Air Corp./Sealed Air Corp. US 6.125%, 02/01/2028(a) | | | U.S.$ | | | | 1,970 | | | $ | 2,000,595 | |
SPCM SA 3.125%, 03/15/2027(a) | | | | | | | 1,487 | | | | 1,334,478 | |
Vibrantz Technologies, Inc. 9.00%, 02/15/2030(a) | | | | | | | 14,230 | | | | 10,974,407 | |
WR Grace Holdings LLC 4.875%, 06/15/2027(a) | | | | | | | 2,579 | | | | 2,453,316 | |
5.625%, 08/15/2029(a) | | | | | | | 1,965 | | | | 1,695,697 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 82,939,740 | |
| | | | | | | | | | | | |
Capital Goods – 3.3% | | | | | | | | | | | | |
ARD Finance SA 5.00% (5.00% Cash or 5.75% PIK), 06/30/2027(a)(f) | | | EUR | | | | 8,856 | | | | 7,474,260 | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 4.00%, 09/01/2029(a) | | | U.S.$ | | | | 5,355 | | | | 4,346,493 | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a) | | | | | | | 6,327 | | | | 5,966,096 | |
5.25%, 08/15/2027(a) | | | | | | | 1,966 | | | | 1,636,695 | |
Bombardier, Inc. 7.875%, 04/15/2027(a) | | | | | | | 4,395 | | | | 4,384,134 | |
Chart Industries, Inc. 7.50%, 01/01/2030(a) | | | | | | | 3 | | | | 3,094 | |
Crown Americas LLC 5.25%, 04/01/2030 | | | | | | | 890 | | | | 863,918 | |
Eco Material Technologies, Inc. 7.875%, 01/31/2027(a) | | | | | | | 7,472 | | | | 7,167,416 | |
EnerSys 4.375%, 12/15/2027(a) | | | | | | | 5,050 | | | | 4,729,294 | |
F-Brasile SpA/F-Brasile US LLC Series XR 7.375%, 08/15/2026(a) | | | | | | | 5,660 | | | | 4,679,242 | |
Harsco Corp. 5.75%, 07/31/2027(a) | | | | | | | 5,339 | | | | 4,510,962 | |
JELD-WEN, Inc. 4.625%, 12/15/2025(a) | | | | | | | 1,036 | | | | 999,292 | |
LSB Industries, Inc. 6.25%, 10/15/2028(a)(h) | | | | | | | 4,622 | | | | 4,082,094 | |
Madison IAQ LLC 5.875%, 06/30/2029(a) | | | | | | | 1,225 | | | | 959,140 | |
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a) | | | EUR | | | | 7,486 | | | | 8,066,476 | |
Rolls-Royce PLC 3.625%, 10/14/2025(a) | | | U.S.$ | | | | 1,142 | | | | 1,078,188 | |
| | |
| |
18 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Stericycle, Inc. 3.875%, 01/15/2029(a) | | | U.S.$ | | | | 2,516 | | | $ | 2,269,975 | |
TK Elevator US Newco, Inc. 5.25%, 07/15/2027(a) | | | | | | | 2,961 | | | | 2,767,566 | |
TransDigm, Inc. 4.625%, 01/15/2029 | | | | | | | 3,591 | | | | 3,251,183 | |
4.875%, 05/01/2029 | | | | | | | 3,750 | | | | 3,406,869 | |
6.75%, 08/15/2028(a) | | | | | | | 13,387 | | | | 13,590,723 | |
Triumph Group, Inc. 7.75%, 08/15/2025 | | | | | | | 2,289 | | | | 2,128,215 | |
9.00%, 03/15/2028(a) | | | | | | | 8,778 | | | | 8,904,191 | |
Trivium Packaging Finance BV 3.75%, 08/15/2026(a) | | | EUR | | | | 132 | | | | 133,884 | |
WESCO Distribution, Inc. 7.25%, 06/15/2028(a) | | | U.S.$ | | | | 2,462 | | | | 2,530,330 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 99,929,730 | |
| | | | | | | | | | | | |
Communications - Media – 7.8% | | | | | | | | | | | | |
Altice Financing SA 5.00%, 01/15/2028(a) | | | | | | | 1,834 | | | | 1,487,888 | |
5.75%, 08/15/2029(a) | | | | | | | 20,458 | | | | 16,232,996 | |
AMC Networks, Inc. 4.25%, 02/15/2029 | | | | | | | 4,017 | | | | 2,784,111 | |
4.75%, 08/01/2025 | | | | | | | 3,337 | | | | 3,093,458 | |
Arches Buyer, Inc. 6.125%, 12/01/2028(a) | | | | | | | 1,056 | | | | 915,617 | |
Banijay Entertainment SASU 3.50%, 03/01/2025(a) | | | EUR | | | | 815 | | | | 874,579 | |
5.375%, 03/01/2025(a) | | | U.S.$ | | | | 6,993 | | | | 6,847,723 | |
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(a) | | | | | | | 995 | | | | 761,758 | |
4.50%, 08/15/2030(a) | | | | | | | 23,087 | | | | 19,472,559 | |
4.50%, 06/01/2033(a) | | | | | | | 13,557 | | | | 10,809,292 | |
4.75%, 03/01/2030(a) | | | | | | | 1,939 | | | | 1,669,115 | |
4.75%, 02/01/2032(a) | | | | | | | 25,422 | | | | 21,038,356 | |
6.375%, 09/01/2029(a) | | | | | | | 5,119 | | | | 4,866,326 | |
7.375%, 03/01/2031(a) | | | | | | | 2,542 | | | | 2,491,160 | |
Clear Channel Outdoor Holdings, Inc. 5.125%, 08/15/2027(a) | | | | | | | 583 | | | | 526,616 | |
CSC Holdings LLC 4.50%, 11/15/2031(a) | | | | | | | 6,832 | | | | 4,784,221 | |
4.625%, 12/01/2030(a) | | | | | | | 4,460 | | | | 2,175,537 | |
5.00%, 11/15/2031(a) | | | | | | | 330 | | | | 158,101 | |
5.375%, 02/01/2028(a) | | | | | | | 4,139 | | | | 3,394,268 | |
5.75%, 01/15/2030(a) | | | | | | | 24,994 | | | | 12,748,149 | |
7.50%, 04/01/2028(a) | | | | | | | 2,326 | | | | 1,459,033 | |
11.25%, 05/15/2028(a) | | | | | | | 2,417 | | | | 2,408,624 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 19 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
DISH DBS Corp. 5.125%, 06/01/2029 | | | U.S.$ | | | | 10,639 | | | $ | 4,918,456 | |
5.25%, 12/01/2026(a) | | | | | | | 9,108 | | | | 6,951,766 | |
5.75%, 12/01/2028(a) | | | | | | | 9,476 | | | | 6,754,200 | |
5.875%, 11/15/2024 | | | | | | | 953 | | | | 789,722 | |
7.375%, 07/01/2028 | | | | | | | 6,580 | | | | 3,287,052 | |
7.75%, 07/01/2026 | | | | | | | 3,040 | | | | 1,755,220 | |
DISH Network Corp. 3.375%, 08/15/2026(i) | | | | | | | 4,275 | | | | 2,034,241 | |
Gray Escrow II, Inc. 5.375%, 11/15/2031(a) | | | | | | | 8,103 | | | | 5,199,791 | |
iHeartCommunications, Inc. 5.25%, 08/15/2027(a) | | | | | | | 5,920 | | | | 4,677,253 | |
6.375%, 05/01/2026 | | | | | | | 1,524 | | | | 1,311,381 | |
8.375%, 05/01/2027 | | | | | | | 1,375 | | | | 900,244 | |
LCPR Senior Secured Financing DAC 5.125%, 07/15/2029(a) | | | | | | | 4,643 | | | | 3,973,780 | |
6.75%, 10/15/2027(a) | | | | | | | 5,536 | | | | 5,274,565 | |
Liberty Interactive LLC 3.75%, 02/15/2030(i) | | | | | | | 2,202 | | | | 377,381 | |
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(a) | | | | | | | 6,531 | | | | 5,800,948 | |
National CineMedia LLC 5.88%, 04/15/2028(a)(b)(j) | | | | | | | 3,387 | | | | 1,209,882 | |
Radiate Holdco LLC/Radiate Finance, Inc. 4.50%, 09/15/2026(a) | | | | | | | 5,030 | | | | 3,936,759 | |
Scripps Escrow II, Inc. 3.875%, 01/15/2029(a) | | | | | | | 82 | | | | 63,913 | |
Sinclair Television Group, Inc. 4.125%, 12/01/2030(a) | | | | | | | 7,439 | | | | 5,865,389 | |
5.50%, 03/01/2030(a)(k) | | | | | | | 4,371 | | | | 3,376,305 | |
Sirius XM Radio, Inc. 3.875%, 09/01/2031(a) | | | | | | | 1,700 | | | | 1,284,558 | |
4.00%, 07/15/2028(a) | | | | | | | 26,374 | | | | 22,290,196 | |
5.50%, 07/01/2029(a) | | | | | | | 110 | | | | 98,100 | |
Summer BidCo BV 9.00% (9.00% Cash or 9.75% PIK), 11/15/2025(a)(f)(k) | | | EUR | | | | 3,315 | | | | 3,055,594 | |
Univision Communications, Inc. 4.50%, 05/01/2029(a) | | | U.S.$ | | | | 5,716 | | | | 4,928,221 | |
7.375%, 06/30/2030(a) | | | | | | | 8,775 | | | | 8,417,152 | |
Urban One, Inc. 7.375%, 02/01/2028(a) | | | | | | | 7,907 | | | | 7,186,788 | |
Ziggo Bond Co. BV 5.125%, 02/28/2030(a) | | | | | | | 4,106 | | | | 3,335,114 | |
Ziggo BV 4.875%, 01/15/2030(a) | | | | | | | 900 | | | | 772,991 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 240,826,449 | |
| | | | | | | | | | | | |
| | |
| |
20 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Communications - Telecommunications – 2.7% | | | | | | | | | | | | |
Altice France Holding SA 10.50%, 05/15/2027(a) | | | U.S.$ | | | | 4,599 | | | $ | 3,384,971 | |
Altice France SA/France 5.125%, 07/15/2029(a) | | | | | | | 14,835 | | | | 10,964,246 | |
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(a) | | | | | | | 8,905 | | | | 8,488,602 | |
Consolidated Communications, Inc. 6.50%, 10/01/2028(a) | | | | | | | 7,628 | | | | 5,942,782 | |
Embarq Corp. 7.995%, 06/01/2036 | | | | | | | 8,721 | | | | 3,747,183 | |
Frontier Communications Holdings LLC 8.625%, 03/15/2031(a) | | | | | | | 2,925 | | | | 2,852,377 | |
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(b)(c)(e) | | | | | | | 7,915 | | | | – 0 | – |
9.75%, 07/15/2025(b)(c)(e)(g) | | | | | | | 1,446 | | | | – 0 | – |
Level 3 Financing, Inc. 3.75%, 07/15/2029(a) | | | | | | | 3,785 | | | | 2,128,400 | |
3.875%, 11/15/2029(a) | | | | | | | 950 | | | | 693,619 | |
4.25%, 07/01/2028(a) | | | | | | | 4,638 | | | | 2,700,055 | |
4.625%, 09/15/2027(a) | | | | | | | 3,256 | | | | 2,007,364 | |
Lorca Telecom Bondco SA 4.00%, 09/18/2027(a) | | | EUR | | | | 3,690 | | | | 3,737,632 | |
Telecom Italia Capital SA 7.20%, 07/18/2036 | | | U.S.$ | | | | 5,713 | | | | 5,186,712 | |
7.721%, 06/04/2038 | | | | | | | 6,995 | | | | 6,547,969 | |
United Group BV 3.625%, 02/15/2028(a) | | | EUR | | | | 752 | | | | 629,049 | |
4.00%, 11/15/2027(a) | | | | | | | 1,816 | | | | 1,567,445 | |
4.625%, 08/15/2028(a) | | | | | | | 344 | | | | 291,718 | |
7.357% (EURIBOR 3 Month + 4.88%), 02/01/2029(l) | | | | | | | 5,496 | | | | 5,455,433 | |
Vmed O2 UK Financing I PLC 4.25%, 01/31/2031(a) | | | U.S.$ | | | | 900 | | | | 743,569 | |
4.75%, 07/15/2031(a) | | | | | | | 12,630 | | | | 10,753,497 | |
Zayo Group Holdings, Inc. 4.00%, 03/01/2027(a) | | | | | | | 5,505 | | | | 4,163,616 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 81,986,239 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 5.0% | | | | | | | | | | | | |
Allison Transmission, Inc. 5.875%, 06/01/2029(a) | | | | | | | 3,279 | | | | 3,230,824 | |
Aston Martin Capital Holdings Ltd. 10.50%, 11/30/2025(a) | | | | | | | 3,409 | | | | 3,371,432 | |
15.00% (8.89% Cash and 6.11% PIK), 11/30/2026(a)(f) | | | | | | | 4,623 | | | | 4,949,655 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(a) | | EUR | | | 1,055 | | | $ | 1,110,466 | |
Dana, Inc. 4.25%, 09/01/2030 | | U.S.$ | | | 3,854 | | | | 3,132,246 | |
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(a) | | | | | 8,346 | | | | 7,737,091 | |
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(b)(c)(e)(g) | | | | | 18,493 | | | | – 0 | – |
(First Lien) 11.00%, 10/31/2024(b)(c)(e)(g) | | | | | 7,590 | | | | – 0 | – |
Ford Motor Co. 3.25%, 02/12/2032 | | | | | 9,212 | | | | 7,122,674 | |
6.10%, 08/19/2032 | | | | | 17,381 | | | | 16,573,926 | |
Ford Motor Credit Co. LLC 2.70%, 08/10/2026 | | | | | 388 | | | | 344,172 | |
4.95%, 05/28/2027 | | | | | 6,465 | | | | 6,120,239 | |
5.113%, 05/03/2029 | | | | | 1,800 | | | | 1,677,012 | |
5.125%, 06/16/2025 | | | | | 538 | | | | 523,780 | |
6.80%, 05/12/2028 | | | | | 9,197 | | | | 9,204,335 | |
7.35%, 11/04/2027 | | | | | 14,621 | | | | 15,059,952 | |
Goodyear Tire & Rubber Co. (The) 5.25%, 07/15/2031 | | | | | 10,456 | | | | 9,014,772 | |
IHO Verwaltungs GmbH 4.75% (4.75% Cash or 5.50% PIK), 09/15/2026(a)(f) | | | | | 1,575 | | | | 1,426,287 | |
6.00% (6.00% Cash or 6.75% PIK), 05/15/2027(a)(f) | | | | | 7,018 | | | | 6,484,153 | |
8.75% (8.75% Cash or 9.50% PIK), 05/15/2028(a)(f) | | EUR | | | 1,751 | | | | 1,958,054 | |
Jaguar Land Rover Automotive PLC 5.50%, 07/15/2029(a) | | U.S.$ | | | 6,351 | | | | 5,260,893 | |
5.875%, 01/15/2028(a) | | | | | 6,393 | | | | 5,545,853 | |
7.75%, 10/15/2025(a) | | | | | 4,597 | | | | 4,569,160 | |
Mclaren Finance PLC 7.50%, 08/01/2026(a) | | | | | 9,232 | | | | 7,578,863 | |
PM General Purchaser LLC 9.50%, 10/01/2028(a) | | | | | 5,980 | | | | 5,667,357 | |
Real Hero Merger Sub 2, Inc. 6.25%, 02/01/2029(a)(k) | | | | | 6,620 | | | | 4,982,657 | |
Titan International, Inc. 7.00%, 04/30/2028 | | | | | 7,168 | | | | 6,417,694 | |
ZF Europe Finance BV 2.00%, 02/23/2026(a)(h) | | EUR | | | 1,200 | | | | 1,204,538 | |
ZF Finance GmbH Series E 2.00%, 05/06/2027(a) | | | | | 200 | | | | 190,953 | |
3.75%, 09/21/2028(a) | | | | | 100 | | | | 98,255 | |
| | |
| |
22 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
ZF North America Capital, Inc. 4.75%, 04/29/2025(a) | | | U.S.$ | | | | 9,312 | | | $ | 9,097,643 | |
6.875%, 04/14/2028(a) | | | | | | | 1,539 | | | | 1,582,290 | |
7.125%, 04/14/2030(a) | | | | | | | 1,539 | | | | 1,589,272 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 152,826,498 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 3.2% | | | | | | | | | | | | |
Carnival Corp. 4.00%, 08/01/2028(a) | | | | | | | 8,433 | | | | 7,291,003 | |
5.75%, 03/01/2027(a) | | | | | | | 5,811 | | | | 4,764,846 | |
7.625%, 03/01/2026(a) | | | EUR | | | | 1,630 | | | | 1,601,172 | |
9.875%, 08/01/2027(a) | | | U.S.$ | | | | 5,639 | | | | 5,730,634 | |
10.125%, 02/01/2026(a) | | | EUR | | | | 1,630 | | | | 1,870,075 | |
Carnival PLC 1.00%, 10/28/2029 | | | | | | | 737 | | | | 413,035 | |
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a) | | | U.S.$ | | | | 12,465 | | | | 12,432,921 | |
Cinemark USA, Inc. 5.25%, 07/15/2028(a) | | | | | | | 2,584 | | | | 2,311,967 | |
Lindblad Expeditions LLC 6.75%, 02/15/2027(a) | | | | | | | 1,512 | | | | 1,430,710 | |
Motion Bondco DAC 4.50%, 11/15/2027(a) | | | EUR | | | | 2,973 | | | | 2,886,178 | |
NCL Corp., Ltd. 5.875%, 03/15/2026(a) | | | U.S.$ | | | | 9,466 | | | | 8,139,730 | |
8.375%, 02/01/2028(a) | | | | | | | 768 | | | | 774,470 | |
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(a) | | | | | | | 6,220 | | | | 5,504,700 | |
5.50%, 08/31/2026(a) | | | | | | | 5,098 | | | | 4,651,925 | |
5.50%, 04/01/2028(a) | | | | | | | 20,172 | | | | 17,795,738 | |
SeaWorld Parks & Entertainment, Inc. 5.25%, 08/15/2029(a) | | | | | | | 4,269 | | | | 3,839,592 | |
Viking Cruises Ltd. 5.875%, 09/15/2027(a) | | | | | | | 6,453 | | | | 5,535,001 | |
7.00%, 02/15/2029(a)(k) | | | | | | | 6,171 | | | | 5,237,842 | |
13.00%, 05/15/2025(a) | | | | | | | 2,788 | | | | 2,935,570 | |
VOC Escrow Ltd. 5.00%, 02/15/2028(a) | | | | | | | 3,318 | | | | 2,955,223 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 98,102,332 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 3.3% | | | | | | | | | | | | |
Adams Homes, Inc. 7.50%, 02/15/2025(a) | | | | | | | 3,468 | | | | 3,260,755 | |
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 4.875%, 02/15/2030(a) | | | | | | | 5,889 | | | | 4,608,134 | |
6.25%, 09/15/2027(a) | | | | | | | 5,404 | | | | 4,951,301 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 23 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Builders FirstSource, Inc. 6.375%, 06/15/2032(a) | | U.S.$ | | | 2,339 | | | $ | 2,334,804 | |
Caesars Entertainment, Inc. 6.25%, 07/01/2025(a) | | | | | 3,735 | | | | 3,740,145 | |
7.00%, 02/15/2030(a) | | | | | 4,502 | | | | 4,545,505 | |
Castle UK Finco PLC 7.00%, 05/15/2029 | | GBP | | | 2,900 | | | | 2,880,847 | |
7.904% (EURIBOR 3 Month + 5.25%), 05/15/2028(l) | | EUR | | | 2,233 | | | | 2,080,821 | |
Churchill Downs, Inc. 4.75%, 01/15/2028(a) | | U.S.$ | | | 2,523 | | | | 2,380,911 | |
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a) | | | | | 6,001 | | | | 5,459,609 | |
Forestar Group, Inc. 3.85%, 05/15/2026(a) | | | | | 2,881 | | | | 2,663,648 | |
Hilton Domestic Operating Co., Inc. 3.625%, 02/15/2032(a) | | | | | 6,167 | | | | 5,262,411 | |
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a) | | | | | 1,162 | | | | 1,017,378 | |
5.00%, 06/01/2029(a) | | | | | 6,848 | | | | 6,197,207 | |
Installed Building Products, Inc. 5.75%, 02/01/2028(a) | | | | | 838 | | | | 794,239 | |
Mattamy Group Corp. 4.625%, 03/01/2030(a) | | | | | 6,691 | | | | 5,863,282 | |
MGM Resorts International 4.75%, 10/15/2028 | | | | | 4,015 | | | | 3,731,449 | |
5.50%, 04/15/2027 | | | | | 4,386 | | | | 4,287,415 | |
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028 | | | | | 3,292 | | | | 3,011,295 | |
4.75%, 04/01/2029 | | | | | 4,530 | | | | 4,037,581 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(a) | | | | | 4,781 | | | | 4,645,828 | |
Taylor Morrison Communities, Inc. 5.125%, 08/01/2030(a) | | | | | 995 | | | | 936,056 | |
Travel + Leisure Co. 4.50%, 12/01/2029(a) | | | | | 3,509 | | | | 3,061,298 | |
4.625%, 03/01/2030(a) | | | | | 10,068 | | | | 8,705,486 | |
6.625%, 07/31/2026(a) | | | | | 3,533 | | | | 3,526,993 | |
Wyndham Hotels & Resorts, Inc. 4.375%, 08/15/2028(a) | | | | | 628 | | | | 584,082 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a) | | | | | 2,353 | | | | 2,260,893 | |
| | |
| |
24 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/2029(a) | | | U.S.$ | | | | 5,631 | | | $ | 5,188,944 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 102,018,317 | |
| | | | | | | | | | | | |
Consumer Cyclical - Restaurants – 0.6% | | | | | | | | | | | | |
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(a) | | | | | | | 4,965 | | | | 4,653,429 | |
4.00%, 10/15/2030(a) | | | | | | | 4,843 | | | | 4,233,726 | |
4.375%, 01/15/2028(a) | | | | | | | 83 | | | | 77,894 | |
Stonegate Pub Co. Financing 2019 PLC 8.00%, 07/13/2025(a) | | | GBP | | | | 963 | | | | 1,093,538 | |
8.25%, 07/31/2025(a) | | | | | | | 6,836 | | | | 7,889,847 | |
Yum! Brands, Inc. 4.625%, 01/31/2032 | | | U.S.$ | | | | 867 | | | | 809,239 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,757,673 | |
| | | | | | | | | | | | |
Consumer Cyclical - Retailers – 2.8% | | | | | | | | | | | | |
Arko Corp. 5.125%, 11/15/2029(a) | | | | | | | 4,612 | | | | 3,735,343 | |
Asbury Automotive Group, Inc. 4.625%, 11/15/2029(a) | | | | | | | 3,368 | | | | 3,000,478 | |
Bath & Body Works, Inc. 6.625%, 10/01/2030(a) | | | | | | | 3,743 | | | | 3,593,945 | |
6.75%, 07/01/2036 | | | | | | | 1,479 | | | | 1,315,792 | |
6.875%, 11/01/2035 | | | | | | | 9,394 | | | | 8,459,069 | |
BCPE Ulysses Intermediate, Inc. 7.75% (7.75% Cash or 8.50% PIK), 04/01/2027(a)(f) | | | | | | | 2,653 | | | | 2,111,482 | |
Carvana Co. 5.50%, 04/15/2027(a) | | | | | | | 1,469 | | | | 632,086 | |
5.875%, 10/01/2028(a) | | | | | | | 4,527 | | | | 1,878,831 | |
FirstCash, Inc. 5.625%, 01/01/2030(a) | | | | | | | 160 | | | | 148,618 | |
Foundation Building Materials, Inc. 6.00%, 03/01/2029(a) | | | | | | | 1,246 | | | | 998,869 | |
Group 1 Automotive, Inc. 4.00%, 08/15/2028(a) | | | | | | | 99 | | | | 87,825 | |
Kontoor Brands, Inc. 4.125%, 11/15/2029(a) | | | | | | | 3,885 | | | | 3,300,530 | |
Levi Strauss & Co. 3.50%, 03/01/2031(a) | | | | | | | 3,914 | | | | 3,311,046 | |
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a) | | | | | | | 7,693 | | | | 6,333,106 | |
7.875%, 05/01/2029(a) | | | | | | | 4,330 | | | | 2,898,465 | |
NMG Holding Co., Inc./Neiman Marcus Group LLC 7.125%, 04/01/2026(a) | | | | | | | 6,621 | | | | 6,157,133 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 25 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Penske Automotive Group, Inc. 3.75%, 06/15/2029 | | | U.S.$ | | | | 885 | | | $ | 768,904 | |
PetSmart, Inc./PetSmart Finance Corp. 7.75%, 02/15/2029(a) | | | | | | | 2,529 | | | | 2,492,524 | |
Rite Aid Corp. 7.50%, 07/01/2025(a) | | | | | | | 4,738 | | | | 3,258,000 | |
Sonic Automotive, Inc. 4.625%, 11/15/2029(a) | | | | | | | 6,301 | | | | 5,293,932 | |
4.875%, 11/15/2031(a) | | | | | | | 525 | | | | 423,792 | |
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a) | | | | | | | 4,261 | | | | 3,866,469 | |
Staples, Inc. 7.50%, 04/15/2026(a) | | | | | | | 12,372 | | | | 10,451,165 | |
10.75%, 04/15/2027(a) | | | | | | | 6,383 | | | | 4,289,594 | |
TPro Acquisition Corp. 11.00%, 10/15/2024(a) | | | | | | | 3,220 | | | | 3,215,031 | |
White Cap Buyer LLC 6.875%, 10/15/2028(a) | | | | | | | 2,257 | | | | 1,973,763 | |
William Carter Co. (The) 5.625%, 03/15/2027(a) | | | | | | | 1,991 | | | | 1,963,912 | |
Wolverine World Wide, Inc. 4.00%, 08/15/2029(a) | | | | | | | 798 | | | | 662,950 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 86,622,654 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 6.7% | | | | | | | | | | | | |
AdaptHealth LLC 5.125%, 03/01/2030(a) | | | | | | | 2,000 | | | | 1,654,904 | |
6.125%, 08/01/2028(a) | | | | | | | 132 | | | | 117,219 | |
AHP Health Partners, Inc. 5.75%, 07/15/2029 (a) | | | | | | | 4,713 | | | | 4,027,372 | |
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 4.625%, 01/15/2027(a) | | | | | | | 3,290 | | | | 3,183,915 | |
4.875%, 02/15/2030(a) | | | | | | | 2,263 | | | | 2,117,480 | |
5.875%, 02/15/2028(a) | | | | | | | 1,997 | | | | 1,977,744 | |
6.50%, 02/15/2028(a) | | | | | | | 6,117 | | | | 6,216,664 | |
7.50%, 03/15/2026(a) | | | | | | | 333 | | | | 343,810 | |
Bausch Health Cos., Inc. 4.875%, 06/01/2028(a) | | | | | | | 10,910 | | | | 7,213,111 | |
5.00%, 02/15/2029(a) | | | | | | | 6,076 | | | | 2,819,621 | |
6.25%, 02/15/2029(a) | | | | | | | 4,938 | | | | 2,267,640 | |
Cab Selas 3.375%, 02/01/2028(a) | | | EUR | | | | 3,859 | | | | 3,386,367 | |
CHS/Community Health Systems, Inc. 4.75%, 02/15/2031(a) | | | U.S.$ | | | | 1,291 | | | | 1,041,101 | |
5.625%, 03/15/2027(a) | | | | | | | 697 | | | | 643,598 | |
6.125%, 04/01/2030(a) | | | | | | | 17,171 | | | | 12,261,996 | |
6.875%, 04/01/2028(a) | | | | | | | 2,898 | | | | 2,145,012 | |
8.00%, 03/15/2026(a) | | | | | | | 2,265 | | | | 2,249,378 | |
| | |
| |
26 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
DaVita, Inc. 3.75%, 02/15/2031(a) | | U.S.$ | | | 823 | | | $ | 659,650 | |
4.625%, 06/01/2030(a) | | | | | 14,083 | | | | 12,273,209 | |
Elanco Animal Health, Inc. 6.65%, 08/28/2028(h) | | | | | 8,007 | | | | 7,791,358 | |
Embecta Corp. 5.00%, 02/15/2030(a) | | | | | 9,223 | | | | 7,955,336 | |
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a) | | | | | 7,410 | | | | 3,926,165 | |
Garden Spinco Corp. 8.625%, 07/20/2030(a) | | | | | 3,395 | | | | 3,661,248 | |
Grifols Escrow Issuer SA 3.875%, 10/15/2028(a) | | EUR | | | 6,477 | | | | 5,532,298 | |
Gruenenthal GmbH 4.125%, 05/15/2028(a) | | | | | 3,656 | | | | 3,686,120 | |
IQVIA, Inc. 2.25%, 03/15/2029(a) | | | | | 3,948 | | | | 3,636,952 | |
Jazz Securities DAC 4.375%, 01/15/2029(a) | | U.S.$ | | | 3,447 | | | | 3,171,794 | |
Kronos Acquisition Holdings, Inc./KIK Custom Products, Inc. 7.00%, 12/31/2027(a) | | | | | 9,238 | | | | 8,119,965 | |
Lamb Weston Holdings, Inc. 4.125%, 01/31/2030(a) | | | | | 3,671 | | | | 3,361,623 | |
Legacy LifePoint Health LLC 6.75%, 04/15/2025(a) | | | | | 333 | | | | 320,355 | |
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 10.00%, 06/15/2029(a) | | | | | 637 | | | | 339,237 | |
Medline Borrower LP 3.875%, 04/01/2029(a) | | | | | 6,982 | | | | 6,107,794 | |
5.25%, 10/01/2029(a) | | | | | 14,103 | | | | 12,197,498 | |
ModivCare, Inc. 5.875%, 11/15/2025(a) | | | | | 249 | | | | 237,976 | |
Newell Brands, Inc. 4.70%, 04/01/2026(h) | | | | | 736 | | | | 702,834 | |
4.875%, 06/01/2025 | | | | | 748 | | | | 728,553 | |
6.00%, 04/01/2046(h) | | | | | 1,969 | | | | 1,534,063 | |
6.375%, 09/15/2027 | | | | | 4,909 | | | | 4,829,226 | |
Organon & Co./Organon Foreign Debt Co-Issuer BV 4.125%, 04/30/2028(a) | | | | | 9,712 | | | | 8,936,612 | |
Perrigo Finance Unlimited Co. 4.40%, 06/15/2030(h) | | | | | 200 | | | | 180,500 | |
Post Holdings, Inc. 4.50%, 09/15/2031(a) | | | | | 5,969 | | | | 5,223,246 | |
4.625%, 04/15/2030(a) | | | | | 414 | | | | 373,765 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 27 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Primo Water Holdings, Inc. 4.375%, 04/30/2029(a) | | | U.S.$ | | | | 9,327 | | | $ | 8,237,888 | |
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a) | | | | | | | 11,464 | | | | 9,538,306 | |
RP Escrow Issuer LLC 5.25%, 12/15/2025(a) | | | | | | | 3,960 | | | | 2,776,385 | |
Spectrum Brands, Inc. 3.875%, 03/15/2031(a) | | | | | | | 6,864 | | | | 5,631,294 | |
Tenet Healthcare Corp. 6.125%, 10/01/2028 | | | | | | | 4,407 | | | | 4,275,109 | |
6.125%, 06/15/2030(a) | | | | | | | 1,026 | | | | 1,019,103 | |
Triton Water Holdings, Inc. 6.25%, 04/01/2029(a) | | | | | | | 5,317 | | | | 4,465,372 | |
US Acute Care Solutions LLC 6.375%, 03/01/2026(a) | | | | | | | 10,570 | | | | 9,470,320 | |
US Renal Care, Inc. 10.625%, 07/15/2027(a) | | | | | | | 1,739 | | | | 321,018 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 204,889,104 | |
| | | | | | | | | | | | |
Energy – 4.3% | | | | | | | | | | | | |
Berry Petroleum Co. LLC 7.00%, 02/15/2026(a) | | | | | | | 1,215 | | | | 1,154,245 | |
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a) | | | | | | | 2,179 | | | | 2,201,301 | |
Callon Petroleum Co. 7.50%, 06/15/2030(a) | | | | | | | 3,228 | | | | 3,072,642 | |
8.25%, 07/15/2025 | | | | | | | 253 | | | | 252,292 | |
Citgo Holding, Inc. 9.25%, 08/01/2024(a) | | | | | | | 2,595 | | | | 2,611,752 | |
CITGO Petroleum Corp. 6.375%, 06/15/2026(a) | | | | | | | 2,387 | | | | 2,324,102 | |
7.00%, 06/15/2025(a) | | | | | | | 9,430 | | | | 9,382,055 | |
Civitas Resources, Inc. 5.00%, 10/15/2026(a) | | | | | | | 3,111 | | | | 2,938,357 | |
CNX Resources Corp. 6.00%, 01/15/2029(a) | | | | | | | 635 | | | | 587,471 | |
7.25%, 03/14/2027(a) | | | | | | | 81 | | | | 80,545 | |
Comstock Resources, Inc. 6.75%, 03/01/2029(a) | | | | | | | 1,289 | | | | 1,166,753 | |
Crescent Energy Finance LLC 7.25%, 05/01/2026(a) | | | | | | | 4,001 | | | | 3,829,538 | |
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(a) | | | | | | | 6,469 | | | | 5,762,859 | |
EnLink Midstream Partners LP Series C 8.976% (LIBOR 3 Month + 4.11%), 05/30/2023(l)(m) | | | | | | | 12,323 | | | | 10,450,425 | |
| | |
| |
28 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
EQM Midstream Partners LP 4.50%, 01/15/2029(a) | | U.S.$ | | | 3,942 | | | $ | 3,357,708 | |
4.75%, 01/15/2031(a) | | | | | 2,497 | | | | 2,056,565 | |
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026 | | | | | 1,230 | | | | 1,183,833 | |
7.75%, 02/01/2028 | | | | | 5,793 | | | | 5,708,596 | |
8.00%, 01/15/2027 | | | | | 1,883 | | | | 1,879,484 | |
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029 | | | | | 2,289 | | | | 2,132,755 | |
7.00%, 08/01/2027 | | | | | 2,149 | | | | 2,075,563 | |
Gulfport Energy Corp. 6.00%, 10/15/2024(b) | | | | | 2,508 | | | | 1,580 | |
6.375%, 05/15/2025(b) | | | | | 9,574 | | | | 6,032 | |
6.375%, 01/15/2026(b) | | | | | 9,247 | | | | 5,826 | |
6.625%, 05/01/2023(b) | | | | | 619 | | | | 390 | |
8.00%, 05/17/2026(a) | | | | | 3,335 | | | | 3,352,122 | |
Harbour Energy PLC 5.50%, 10/15/2026(a) | | | | | 2,718 | | | | 2,489,516 | |
Hess Midstream Operations LP 4.25%, 02/15/2030(a) | | | | | 499 | | | | 443,389 | |
Hilcorp Energy I LP/Hilcorp Finance Co. 5.75%, 02/01/2029(a) | | | | | 1,024 | | | | 956,322 | |
6.00%, 02/01/2031(a) | | | | | 1,461 | | | | 1,352,055 | |
Ithaca Energy North Sea PLC 9.00%, 07/15/2026(a) | | | | | 6,214 | | | | 5,958,874 | |
ITT Holdings LLC 6.50%, 08/01/2029(a) | | | | | 10,492 | | | | 8,709,284 | |
Moss Creek Resources Holdings, Inc. 7.50%, 01/15/2026(a) | | | | | 2,391 | | | | 2,243,739 | |
Nabors Industries Ltd. 7.25%, 01/15/2026(a) | | | | | 1,898 | | | | 1,790,011 | |
7.50%, 01/15/2028(a) | | | | | 7,663 | | | | 6,990,206 | |
New Fortress Energy, Inc. 6.75%, 09/15/2025(a) | | | | | 6,051 | | | | 5,774,626 | |
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a) | | | | | 6,914 | | | | 6,655,711 | |
NuStar Logistics LP 6.375%, 10/01/2030 | | | | | 873 | | | | 840,935 | |
PDC Energy, Inc. 5.75%, 05/15/2026 | | | | | 6,047 | | | | 5,882,951 | |
6.125%, 09/15/2024 | | | | | 3,611 | | | | 3,595,802 | |
Southwestern Energy Co. 5.375%, 02/01/2029 | | | | | 1,481 | | | | 1,399,725 | |
8.375%, 09/15/2028 | | | | | 153 | | | | 160,097 | |
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a) | | | | | 4,596 | | | | 4,432,292 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 29 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Sunoco LP/Sunoco Finance Corp. 5.875%, 03/15/2028 | | | U.S.$ | | | | 1,917 | | | $ | 1,881,168 | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. 6.00%, 12/31/2030(a) | | | | | | | 614 | | | | 546,391 | |
6.00%, 09/01/2031(a) | | | | | | | 269 | | | | 240,266 | |
Transocean Poseidon Ltd. 6.875%, 02/01/2027(a) | | | | | | | 1,558 | | | | 1,520,756 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 131,438,907 | |
| | | | | | | | | | | | |
Other Industrial – 0.2% | | | | | | | | | | | | |
American Builders & Contractors Supply Co., Inc. 4.00%, 01/15/2028(a) | | | | | | | 361 | | | | 331,010 | |
Ritchie Bros Holdings, Inc. 6.75%, 03/15/2028(a) | | | | | | | 2,847 | | | | 2,945,994 | |
7.75%, 03/15/2031(a) | | | | | | | 2,629 | | | | 2,793,267 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,070,271 | |
| | | | | | | | | | | | |
Services – 3.6% | | | | | | | | | | | | |
ADT Security Corp. (The) 4.875%, 07/15/2032(a) | | | | | | | 3,671 | | | | 3,195,670 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.00%, 06/01/2029(a) | | | | | | | 1,397 | | | | 1,087,164 | |
6.625%, 07/15/2026(a) | | | | | | | 1,699 | | | | 1,637,425 | |
9.75%, 07/15/2027(a) | | | | | | | 7,999 | | | | 7,437,250 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL 3.625%, 06/01/2028(a) | | | EUR | | | | 1,105 | | | | 993,650 | |
4.625%, 06/01/2028(a) | | | U.S.$ | | | | 4,924 | | | | 4,277,541 | |
4.875%, 06/01/2028(a) | | | GBP | | | | 3,580 | | | | 3,634,622 | |
ANGI Group LLC 3.875%, 08/15/2028(a) | | | U.S.$ | | | | 8,847 | | | | 6,913,306 | |
Aptim Corp. 7.75%, 06/15/2025(a) | | | | | | | 4,889 | | | | 3,891,255 | |
APX Group, Inc. 5.75%, 07/15/2029(a) | | | | | | | 5,963 | | | | 5,330,757 | |
6.75%, 02/15/2027(a) | | | | | | | 2,153 | | | | 2,155,732 | |
Aramark Services, Inc. 5.00%, 02/01/2028(a) | | | | | | | 3,832 | | | | 3,645,010 | |
Block, Inc. 3.50%, 06/01/2031 | | | | | | | 2,511 | | | | 2,045,453 | |
Cars.com, Inc. 6.375%, 11/01/2028(a) | | | | | | | 4,403 | | | | 4,172,626 | |
Garda World Security Corp. 4.625%, 02/15/2027(a) | | | | | | | 378 | | | | 347,384 | |
7.75%, 02/15/2028(a) | | | | | | | 4,912 | | | | 4,936,560 | |
9.50%, 11/01/2027(a) | | | | | | | 495 | | | | 474,463 | |
| | |
| |
30 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
ION Trading Technologies SARL 5.75%, 05/15/2028(a) | | | U.S.$ | | | | 2,109 | | | $ | 1,749,904 | |
Korn Ferry 4.625%, 12/15/2027(a) | | | | | | | 2,404 | | | | 2,283,199 | |
Millennium Escrow Corp. 6.625%, 08/01/2026(a) | | | | | | | 5,653 | | | | 3,821,635 | |
Monitronics International, Inc. 0.00%, 04/01/2020(b)(c)(d)(e) | | | | | | | 6,914 | | | | – 0 | – |
MPH Acquisition Holdings LLC 5.50%, 09/01/2028(a) | | | | | | | 3,721 | | | | 2,846,476 | |
5.75%, 11/01/2028(a)(k) | | | | | | | 17,454 | | | | 10,996,384 | |
Neptune Bidco US, Inc. 9.29%, 04/15/2029(a) | | | | | | | 7,757 | | | | 7,301,276 | |
Prime Security Services Borrower LLC/Prime Finance, Inc. 5.25%, 04/15/2024(a) | | | | | | | 135 | | | | 134,108 | |
6.25%, 01/15/2028(a) | | | | | | | 13,331 | | | | 12,491,553 | |
Q-Park Holding I BV 1.50%, 03/01/2025(a) | | | EUR | | | | 586 | | | | 607,218 | |
2.00%, 03/01/2027(a) | | | | | | | 946 | | | | 889,139 | |
Sabre GLBL, Inc. 7.375%, 09/01/2025(a) | | | U.S.$ | | | | 1,580 | | | | 1,403,824 | |
9.25%, 04/15/2025(a) | | | | | | | 673 | | | | 620,757 | |
11.25%, 12/15/2027(a) | | | | | | | 8,348 | | | | 7,325,046 | |
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a) | | | | | | | 265 | | | | 248,725 | |
ZipRecruiter, Inc. 5.00%, 01/15/2030(a) | | | | | | | 2,000 | | | | 1,743,822 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 110,638,934 | |
| | | | | | | | | | | | |
Technology – 2.3% | | | | | | | | | | | | |
Ahead DB Holdings LLC 6.625%, 05/01/2028(a) | | | | | | | 3,518 | | | | 2,938,078 | |
AthenaHealth Group, Inc. 6.50%, 02/15/2030(a) | | | | | | | 7,398 | | | | 6,068,040 | |
Cablevision Lightpath LLC 5.625%, 09/15/2028(a) | | | | | | | 4,374 | | | | 3,199,158 | |
CommScope, Inc. 4.75%, 09/01/2029(a) | | | | | | | 7,709 | | | | 6,220,086 | |
Entegris Escrow Corp. 5.95%, 06/15/2030(a) | | | | | | | 7,475 | | | | 7,101,376 | |
Gen Digital, Inc. 6.75%, 09/30/2027(a) | | | | | | | 4,989 | | | | 5,028,176 | |
7.125%, 09/30/2030(a) | | | | | | | 3,489 | | | | 3,507,454 | |
GoTo Group, Inc. 5.50%, 09/01/2027(a) | | | | | | | 5,905 | | | | 3,317,433 | |
Imola Merger Corp. 4.75%, 05/15/2029(a) | | | | | | | 2,868 | | | | 2,483,793 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 31 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
NCR Corp. 5.125%, 04/15/2029(a) | | | U.S.$ | | | | 5,205 | | | $ | 4,502,895 | |
6.125%, 09/01/2029(a) | | | | | | | 1,207 | | | | 1,182,757 | |
Playtech PLC 4.25%, 03/07/2026(a) | | | EUR | | | | 776 | | | | 826,994 | |
Playtika Holding Corp. 4.25%, 03/15/2029(a) | | | U.S.$ | | | | 3,976 | | | | 3,406,763 | |
Presidio Holdings, Inc. 8.25%, 02/01/2028(a) | | | | | | | 7,310 | | | | 6,887,439 | |
Rackspace Technology Global, Inc. 3.50%, 02/15/2028(a) | | | | | | | 14,232 | | | | 5,901,479 | |
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a) | | | | | | | 8,701 | | | | 6,585,276 | |
Virtusa Corp. 7.125%, 12/15/2028(a) | | | | | | | 3,521 | | | | 2,838,348 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 71,995,545 | |
| | | | | | | | | | | | |
Transportation - Airlines – 0.8% | | | | | | | | | | | | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a) | | | | | | | 3,807 | | | | 3,739,923 | |
5.75%, 04/20/2029(a) | | | | | | | 10,053 | | | | 9,561,866 | |
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a) | | | | | | | 4,795 | | | | 4,466,150 | |
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a) | | | | | | | 5,914 | | | | 5,972,046 | |
United Airlines, Inc. 4.625%, 04/15/2029(a) | | | | | | | 1,152 | | | | 1,042,560 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 24,782,545 | |
| | | | | | | | | | | | |
Transportation - Services – 1.0% | | | | | | | | | | | | |
Albion Financing 1 SARL/Aggreko Holdings, Inc. 5.25%, 10/15/2026(a) | | | EUR | | | | 2,713 | | | | 2,754,767 | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 4.75%, 04/01/2028(a) | | | U.S.$ | | | | 6,655 | | | | 5,974,846 | |
5.375%, 03/01/2029(a) | | | | | | | 1,387 | | | | 1,257,771 | |
5.75%, 07/15/2027(a) | | | | | | | 1,477 | | | | 1,406,960 | |
BCP V Modular Services Finance II PLC 4.75%, 11/30/2028(a) | | | EUR | | | | 538 | | | | 495,199 | |
BCP V Modular Services Finance PLC 6.75%, 11/30/2029 | | | | | | | 5,428 | | | | 4,660,936 | |
Hertz Corp. (The) 4.625%, 12/01/2026(a) | | | U.S.$ | | | | 5,020 | | | | 4,520,181 | |
5.00%, 12/01/2029(a) | | | | | | | 6,811 | | | | 5,569,891 | |
| | |
| |
32 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Loxam SAS 2.875%, 04/15/2026(a) | | | EUR | | | | 934 | | | $ | 950,898 | |
PROG Holdings, Inc. 6.00%, 11/15/2029(a) | | | U.S.$ | | | | 2,240 | | | | 2,016,136 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,607,585 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,543,432,523 | |
| | | | | | | | | | | | |
Financial Institutions – 4.7% | | | | | | | | | | | | |
Banking – 0.7% | | | | | | | | | | | | |
Ally Financial, Inc. Series B 4.70%, 05/15/2026(m) | | | | | | | 14,614 | | | | 10,777,825 | |
Series C 4.70%, 05/15/2028(m) | | | | | | | 993 | | | | 697,583 | |
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(a) | | | | | | | 6,719 | | | | 6,013,619 | |
7.00%, 01/15/2026(a) | | | | | | | 3,175 | | | | 2,675,657 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 20,164,684 | |
| | | | | | | | | | | | |
Brokerage – 0.5% | | | | | | | | | | | | |
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a) | | | | | | | 6,141 | | | | 6,131,582 | |
AG Issuer LLC 6.25%, 03/01/2028(a) | | | | | | | 3,354 | | | | 3,125,268 | |
AG TTMT Escrow Issuer LLC 8.625%, 09/30/2027(a) | | | | | | | 897 | | | | 920,978 | |
NFP Corp. 4.875%, 08/15/2028(a) | | | | | | | 479 | | | | 436,327 | |
6.875%, 08/15/2028(a) | | | | | | | 4,358 | | | | 3,804,298 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,418,453 | |
| | | | | | | | | | | | |
Finance – 1.6% | | | | | | | | | | | | |
Aircastle Ltd. 5.25%, 06/15/2026(a)(m) | | | | | | | 2,836 | | | | 1,911,033 | |
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a) | | | | | | | 4,612 | | | | 4,093,506 | |
CNG Holdings, Inc. 12.50%, 06/15/2024(a) | | | | | | | 4,791 | | | | 4,012,437 | |
Compass Group Diversified Holdings LLC 5.25%, 04/15/2029(a) | | | | | | | 2,417 | | | | 2,180,593 | |
Curo Group Holdings Corp. 7.50%, 08/01/2028(a) | | | | | | | 13,768 | | | | 5,474,204 | |
Enova International, Inc. 8.50%, 09/01/2024(a) | | | | | | | 2,537 | | | | 2,520,224 | |
8.50%, 09/15/2025(a) | | | | | | | 6,750 | | | | 6,511,287 | |
Jefferies Finance LLC/JFIN Co-Issuer Corp. 5.00%, 08/15/2028(a) | | | | | | | 4,831 | | | | 4,077,330 | |
Navient Corp. 4.875%, 03/15/2028 | | | | | | | 6,959 | | | | 5,987,339 | |
5.00%, 03/15/2027 | | | | | | | 1,471 | | | | 1,326,065 | |
5.625%, 08/01/2033 | | | | | | | 1,834 | | | | 1,381,810 | |
6.75%, 06/25/2025 | | | | | | | 2,395 | | | | 2,360,894 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 33 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
SLM Corp. 3.125%, 11/02/2026 | | | U.S.$ | | | | 1,440 | | | $ | 1,259,174 | |
Synchrony Financial 7.25%, 02/02/2033 | | | | | | | 5,285 | | | | 4,852,683 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 47,948,579 | |
| | | | | | | | | | | | |
Insurance – 0.3% | | | | | | | | | | | | |
Ardonagh Midco 2 PLC 11.50% (11.50% Cash or 12.75% PIK), 01/15/2027(a)(f)(k) | | | | | | | 11,171 | | | | 10,012,536 | |
AssuredPartners, Inc. 5.625%, 01/15/2029(a) | | | | | | | 1,000 | | | | 867,027 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,879,563 | |
| | | | | | | | | | | | |
Other Finance – 0.6% | | | | | | | | | | | | |
Armor Holdco, Inc. 8.50%, 11/15/2029(a) | | | | | | | 8,586 | | | | 7,105,059 | |
Coinbase Global, Inc. 3.375%, 10/01/2028(a) | | | | | | | 5,564 | | | | 3,361,578 | |
3.625%, 10/01/2031(a) | | | | | | | 2,379 | | | | 1,325,438 | |
Intrum AB 4.875%, 08/15/2025 | | | EUR | | | | 4,189 | | | | 4,167,499 | |
Motion Finco SARL 7.00%, 05/15/2025(a) | | | | | | | 3,433 | | | | 3,829,270 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,788,844 | |
| | | | | | | | | | | | |
REITs – 1.0% | | | | | | | | | | | | |
Aedas Homes Opco SLU 4.00%, 08/15/2026 | | | | | | | 8,929 | | | | 8,663,807 | |
Agps Bondco PLC 5.50%, 11/13/2026(a)(h) | | | | | | | 1,200 | | | | 509,535 | |
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(a) | | | U.S.$ | | | | 8,411 | | | | 6,954,891 | |
5.75%, 05/15/2026(a) | | | | | | | 2,813 | | | | 2,548,850 | |
Office Properties Income Trust 3.45%, 10/15/2031 | | | | | | | 3,882 | | | | 1,998,917 | |
Via Celere Desarrollos Inmobiliarios SA 5.25%, 04/01/2026 | | | EUR | | | | 5,665 | | | | 5,675,551 | |
Vivion Investments SARL 3.00%, 08/08/2024(a) | | | | | | | 4,600 | | | | 3,699,291 | |
3.50%, 11/01/2025(a) | | | | | | | 2,400 | | | | 1,651,864 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 31,702,706 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 144,902,829 | |
| | | | | | | | | | | | |
Utility – 0.9% | | | | | | | | | | | | |
Electric – 0.6% | | | | | | | | | | | | |
ContourGlobal Power Holdings SA 3.125%, 01/01/2028(a) | | | | | | | 813 | | | | 719,380 | |
| | |
| |
34 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
NRG Energy, Inc. 3.875%, 02/15/2032(a) | | | U.S.$ | | | | 7,731 | | | $ | 6,240,795 | |
10.25%, 03/15/2028(a)(m) | | | | | | | 3,572 | | | | 3,522,677 | |
Vistra Corp. 7.00%, 12/15/2026(a)(m) | | | | | | | 3,713 | | | | 3,335,962 | |
8.00%, 10/15/2026(a)(m) | | | | | | | 4,495 | | | | 4,240,528 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,059,342 | |
| | | | | | | | | | | | |
Natural Gas – 0.2% | | | | | | | | | | | | |
AmeriGas Partners LP/AmeriGas Finance Corp. 5.75%, 05/20/2027 | | | | | | | 710 | | | | 674,234 | |
5.875%, 08/20/2026 | | | | | | | 530 | | | | 511,582 | |
UGI International LLC 2.50%, 12/01/2029(a) | | | EUR | | | | 4,535 | | | | 3,916,954 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,102,770 | |
| | | | | | | | | | | | |
Other Utility – 0.1% | | | | | | | | | | | | |
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(a) | | | U.S.$ | | | | 4,331 | | | | 4,159,015 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 27,321,127 | |
| | | | | | | | | | | | |
Total Corporates - Non-Investment Grade (cost $1,973,109,198) | | | | | | | | | | | 1,715,656,479 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
CORPORATES - INVESTMENT GRADE – 13.8% | | | | | | | | | | | | |
Financial Institutions – 7.1% | | | | | | | | | | | | |
Banking – 5.0% | | | | | | | | | | | | |
AIB Group PLC 7.583%, 10/14/2026(a) | | | | | | | 6,233 | | | | 6,428,535 | |
Ally Financial, Inc. 6.70%, 02/14/2033 | | | | | | | 1,485 | | | | 1,336,871 | |
8.00%, 11/01/2031 | | | | | | | 1,002 | | | | 1,057,516 | |
Banco Santander SA 3.225%, 11/22/2032 | | | | | | | 200 | | | | 160,008 | |
Bank of America Corp. Series B 8.05%, 06/15/2027 | | | | | | | 8,700 | | | | 9,490,188 | |
Bank of Ireland Group PLC 6.253%, 09/16/2026(a) | | | | | | | 2,592 | | | | 2,586,718 | |
Barclays PLC 6.125%, 12/15/2025(m) | | | | | | | 3,519 | | | | 3,031,792 | |
7.385%, 11/02/2028 | | | | | | | 6,480 | | | | 6,917,287 | |
BNP Paribas SA 4.625%, 02/25/2031(a)(m) | | | | | | | 2,811 | | | | 2,005,442 | |
7.375%, 08/19/2025(a)(m) | | | | | | | 2,339 | | | | 2,253,774 | |
7.75%, 08/16/2029(a)(m) | | | | | | | 2,212 | | | | 2,116,970 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 35 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Citigroup, Inc. 9.341% (LIBOR 3 Month + 4.07%), 07/30/2023(l)(m) | | U.S.$ | | | 6,097 | | | $ | 6,072,163 | |
Credit Agricole SA 8.125%, 12/23/2025(a)(m) | | | | | 1,767 | | | | 1,753,686 | |
8.125%, 03/23/2172(m) | | | | | 4,862 | | | | 4,817,769 | |
Credit Suisse Group AG 3.091%, 05/14/2032(a) | | | | | 3,095 | | | | 2,489,432 | |
6.373%, 07/15/2026(a) | | | | | 2,253 | | | | 2,196,887 | |
9.016%, 11/15/2033(a) | | | | | 885 | | | | 1,048,345 | |
Deutsche Bank AG/New York NY 1.447%, 04/01/2025 | | | | | 150 | | | | 141,377 | |
6.72%, 01/18/2029 | | | | | 4,598 | | | | 4,670,854 | |
7.079%, 02/10/2034 | | | | | 4,299 | | | | 4,006,528 | |
Dresdner Funding Trust I 8.151%, 06/30/2031(a) | | | | | 816 | | | | 865,076 | |
Goldman Sachs Group, Inc. (The) 3.102%, 02/24/2033 | | | | | 445 | | | | 383,123 | |
Series P 7.733% (LIBOR 3 Month + 2.87%), 05/30/2023(l)(m) | | | | | 5,043 | | | | 4,885,093 | |
HSBC Holdings PLC 4.60%, 12/17/2030(m) | | | | | 986 | | | | 746,013 | |
4.762%, 03/29/2033 | | | | | 3,458 | | | | 3,179,745 | |
6.375%, 03/30/2025(m) | | | | | 418 | | | | 395,030 | |
7.336%, 11/03/2026 | | | | | 6,216 | | | | 6,518,764 | |
8.113%, 11/03/2033 | | | | | 6,060 | | | | 6,818,340 | |
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a) | | | | | 3,198 | | | | 3,119,971 | |
5.71%, 01/15/2026(a) | | | | | 860 | | | | 827,297 | |
7.00%, 11/21/2025(a) | | | | | 972 | | | | 992,762 | |
JPMorgan Chase & Co. 4.912%, 07/25/2033 | | | | | 782 | | | | 778,650 | |
KBC Group NV 5.796%, 01/19/2029(a) | | | | | 1,142 | | | | 1,156,670 | |
Lloyds Banking Group PLC 7.50%, 06/27/2024(m) | | | | | 2,076 | | | | 1,993,203 | |
7.953%, 11/15/2033 | | | | | 2,680 | | | | 2,987,906 | |
8.00%, 09/27/2029(m) | | | | | 3,551 | | | | 3,244,655 | |
NatWest Group PLC 7.472%, 11/10/2026 | | | | | 2,715 | | | | 2,831,618 | |
Santander Holdings USA, Inc. 6.499%, 03/09/2029 | | | | | 8,446 | | | | 8,487,421 | |
Santander UK Group Holdings PLC 6.833%, 11/21/2026 | | | | | 12,101 | | | | 12,324,180 | |
Standard Chartered PLC 6.783% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(l)(m) | | | | | 3,500 | | | | 3,072,299 | |
7.776%, 11/16/2025(a) | | | | | 4,220 | | | | 4,341,182 | |
| | |
| |
36 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
State Street Corp. 4.821%, 01/26/2034 | | | U.S.$ | | | | 658 | | | $ | 655,893 | |
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(m) | | | | | | | 600 | | | | 565,704 | |
Synchrony Bank 5.625%, 08/23/2027 | | | | | | | 1,521 | | | | 1,446,498 | |
Truist Financial Corp. 1.95%, 06/05/2030 | | | | | | | 612 | | | | 493,036 | |
5.122%, 01/26/2034 | | | | | | | 2,988 | | | | 2,896,782 | |
UBS Group AG 7.00%, 02/19/2025(a)(m) | | | | | | | 6,302 | | | | 5,975,420 | |
UniCredit SpA 1.982%, 06/03/2027(a) | | | | | | | 3,605 | | | | 3,191,570 | |
US Bancorp 4.839%, 02/01/2034 | | | | | | | 1,949 | | | | 1,864,879 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 151,620,922 | |
| | | | | | | | | | | | |
Finance – 0.7% | | | | | | | | | | | | |
Air Lease Corp. Series B 4.65%, 06/15/2026(m) | | | | | | | 5,818 | | | | 4,837,760 | |
Aircastle Ltd. 2.85%, 01/26/2028(a) | | | | | | | 1,274 | | | | 1,108,251 | |
Aviation Capital Group LLC 1.95%, 09/20/2026(a) | | | | | | | 3,301 | | | | 2,881,381 | |
4.125%, 08/01/2025(a) | | | | | | | 2,077 | | | | 1,983,706 | |
4.875%, 10/01/2025(a) | | | | | | | 1,585 | | | | 1,535,168 | |
Huarong Finance 2017 Co., Ltd. 4.75%, 04/27/2027(a) | | | | | | | 751 | | | | 650,460 | |
Series E 4.25%, 11/07/2027(a) | | | | | | | 270 | | | | 225,163 | |
Huarong Finance 2019 Co., Ltd. Series E 3.25%, 11/13/2024(a) | | | | | | | 708 | | | | 657,024 | |
3.75%, 05/29/2024(a) | | | | | | | 412 | | | | 391,606 | |
Huarong Finance II Co., Ltd. Series E 4.625%, 06/03/2026(a) | | | | | | | 2,519 | | | | 2,229,000 | |
4.875%, 11/22/2026(a) | | | | | | | 710 | | | | 624,711 | |
5.50%, 01/16/2025(a) | | | | | | | 3,149 | | | | 2,987,220 | |
ILFC E-Capital Trust II 6.798% (LIBOR 3 Month + 1.80%), 12/21/2065(a)(l) | | | | | | | 1,500 | | | | 1,005,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,116,450 | |
| | | | | | | | | | | | |
Insurance – 1.1% | | | | | | | | | | | | |
Liberty Mutual Group, Inc. 7.80%, 03/15/2037(a) | | | | | | | 12,355 | | | | 12,951,900 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 37 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
MetLife Capital Trust IV 7.875%, 12/15/2037(a) | | | U.S.$ | | | | 9,269 | | | $ | 9,814,767 | |
MetLife, Inc. 10.75%, 08/01/2039 | | | | | | | 1,745 | | | | 2,280,620 | |
Nationwide Mutual Insurance Co. 7.156% (LIBOR 3 Month + 2.29%), 12/15/2024(a)(l) | | | | | | | 5,000 | | | | 4,984,945 | |
Prudential Financial, Inc. 5.625%, 06/15/2043 | | | | | | | 4,922 | | | | 4,913,310 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 34,945,542 | |
| | | | | | | | | | | | |
REITs – 0.3% | | | | | | | | | | | | |
VICI Properties LP/VICI Note Co., Inc. 4.625%, 06/15/2025(a) | | | | | | | 1,279 | | | | 1,243,021 | |
5.625%, 05/01/2024(a) | | | | | | | 2,333 | | | | 2,320,927 | |
5.75%, 02/01/2027(a) | | | | | | | 4,572 | | | | 4,538,653 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,102,601 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 215,785,515 | |
| | | | | | | | | | | | |
Industrial – 6.5% | | | | | | | | | | | | |
Basic – 0.5% | | | | | | | | | | | | |
Arconic Corp. 6.00%, 05/15/2025(a) | | | | | | | 3,466 | | | | 3,463,834 | |
Braskem Netherlands Finance BV 4.50%, 01/31/2030(a) | | | | | | | 4,684 | | | | 3,933,155 | |
7.25%, 02/13/2033(a) | | | | | | | 899 | | | | 855,036 | |
Freeport Indonesia PT 4.763%, 04/14/2027(a) | | | | | | | 696 | | | | 686,125 | |
INEOS Finance PLC 3.375%, 03/31/2026(a) | | | EUR | | | | 1,428 | | | | 1,455,500 | |
Nexa Resources SA 6.50%, 01/18/2028(a) | | | U.S.$ | | | | 3,219 | | | | 3,130,075 | |
Olin Corp. 5.125%, 09/15/2027 | | | | | | | 540 | | | | 522,928 | |
5.625%, 08/01/2029 | | | | | | | 3,127 | | | | 3,048,529 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,095,182 | |
| | | | | | | | | | | | |
Capital Goods – 0.3% | | | | | | | | | | | | |
General Electric Co. Series D 8.196% (LIBOR 3 Month + 3.33%), 06/15/2023(l)(m) | | | | | | | 5,563 | | | | 5,564,988 | |
Howmet Aerospace, Inc. 5.90%, 02/01/2027 | | | | | | | 805 | | | | 824,013 | |
Regal Rexnord Corp. 6.30%, 02/15/2030(a) | | | | | | | 852 | | | | 866,442 | |
6.40%, 04/15/2033(a) | | | | | | | 1,008 | | | | 1,026,964 | |
Textron Financial Corp. 6.599% (LIBOR 3 Month + 1.74%), 02/15/2042(a)(l) | | | | | | | 125 | | | | 93,454 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,375,861 | |
| | | | | | | | | | | | |
| | |
| |
38 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Communications - Media – 0.6% | | | | | | | | | | | | |
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(a) | | | U.S.$ | | | | 8,766 | | | $ | 7,692,991 | |
Discovery Communications LLC 4.125%, 05/15/2029 | | | | | | | 736 | | | | 681,104 | |
Prosus NV 4.027%, 08/03/2050(a) | | | | | | | 1,341 | | | | 858,240 | |
Telecomunicaciones Digitales SA 4.50%, 01/30/2030(a) | | | | | | | 443 | | | | 363,537 | |
Warnermedia Holdings, Inc. 3.755%, 03/15/2027(a) | | | | | | | 3,059 | | | | 2,878,513 | |
4.279%, 03/15/2032(a) | | | | | | | 4,249 | | | | 3,769,046 | |
Weibo Corp. 3.375%, 07/08/2030 | | | | | | | 1,896 | | | | 1,523,569 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 17,767,000 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.1% | | | | | | | | | | | | |
Sprint Capital Corp. 8.75%, 03/15/2032 | | | | | | | 3,300 | | | | 4,036,544 | |
Sprint LLC 7.625%, 03/01/2026 | | | | | | | 137 | | | | 145,097 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,181,641 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.9% | | | | | | | | | | | | |
General Motors Financial Co., Inc. 5.85%, 04/06/2030 | | | | | | | 7,425 | | | | 7,418,771 | |
Harley-Davidson Financial Services, Inc. 6.50%, 03/10/2028(a) | | | | | | | 13,050 | | | | 13,210,476 | |
Nissan Motor Acceptance Co. LLC 1.85%, 09/16/2026(a) | | | | | | | 393 | | | | 335,855 | |
2.45%, 09/15/2028(a) | | | | | | | 3,310 | | | | 2,654,259 | |
2.75%, 03/09/2028(a) | | | | | | | 5,326 | | | | 4,430,427 | |
Nissan Motor Co., Ltd. 4.81%, 09/17/2030(a) | | | | | | | 434 | | | | 380,232 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,430,020 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.2% | | | | | | | | | | | | |
Mattel, Inc. 3.75%, 04/01/2029(a) | | | | | | | 5,792 | | | | 5,230,076 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Other – 0.6% | | | | | | | | | | | | |
International Game Technology PLC 3.50%, 06/15/2026(a) | | | EUR | | | | 1,026 | | | | 1,097,216 | |
Las Vegas Sands Corp. 3.50%, 08/18/2026 | | | U.S.$ | | | | 268 | | | | 251,658 | |
MDC Holdings, Inc. 6.00%, 01/15/2043 | | | | | | | 9,963 | | | | 8,801,093 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 39 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Resorts World Las Vegas LLC/RWLV Capital, Inc. 4.625%, 04/16/2029(a) | | | U.S.$ | | | | 900 | | | $ | 725,784 | |
4.625%, 04/06/2031(a) | | | | | | | 5,800 | | | | 4,548,789 | |
Sands China Ltd. 3.75%, 08/08/2031(h) | | | | | | | 675 | | | | 553,500 | |
4.875%, 06/18/2030(h) | | | | | | | 2,225 | | | | 2,017,080 | |
5.90%, 08/08/2028(h) | | | | | | | 1,104 | | | | 1,061,220 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,056,340 | |
| | | | | | | | | | | | |
Consumer Cyclical - Retailers – 0.2% | | | | | | | | | | | | |
Macy’s Retail Holdings LLC 5.875%, 04/01/2029(a) | | | | | | | 1,195 | | | | 1,094,175 | |
5.875%, 03/15/2030(a) | | | | | | | 4,253 | | | | 3,773,425 | |
6.125%, 03/15/2032(a) | | | | | | | 2,121 | | | | 1,856,493 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,724,093 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 0.5% | | | | | | | | | | | | |
180 Medical, Inc. 3.875%, 10/15/2029(a) | | | | | | | 2,968 | | | | 2,652,384 | |
BAT Capital Corp. 7.75%, 10/19/2032 | | | | | | | 2,504 | | | | 2,773,797 | |
Charles River Laboratories International, Inc. 3.75%, 03/15/2029(a) | | | | | | | 3,048 | | | | 2,686,539 | |
4.00%, 03/15/2031(a) | | | | | | | 2,554 | | | | 2,223,041 | |
Pilgrim’s Pride Corp. 3.50%, 03/01/2032 | | | | | | | 5,244 | | | | 4,227,329 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,563,090 | |
| | | | | | | | | | | | |
Energy – 1.9% | | | | | | | | | | | | |
Apache Corp. 5.10%, 09/01/2040 | | | | | | | 1,548 | | | | 1,325,957 | |
Cheniere Energy Partners LP 4.50%, 10/01/2029 | | | | | | | 2,089 | | | | 1,966,349 | |
Continental Resources, Inc./OK 5.75%, 01/15/2031(a) | | | | | | | 1,103 | | | | 1,074,946 | |
Ecopetrol SA 4.625%, 11/02/2031 | | | | | | | 2,197 | | | | 1,632,371 | |
5.875%, 11/02/2051 | | | | | | | 5,917 | | | | 3,741,763 | |
8.875%, 01/13/2033 | | | | | | | 1,720 | | | | 1,663,025 | |
Hunt Oil Co. of Peru LLC Sucursal Del Peru 6.375%, 06/01/2028(a) | | | | | | | 1,164 | | | | 1,108,361 | |
Occidental Petroleum Corp. 5.875%, 09/01/2025 | | | | | | | 346 | | | | 350,730 | |
6.125%, 01/01/2031 | | | | | | | 435 | | | | 455,346 | |
6.625%, 09/01/2030 | | | | | | | 19,482 | | | | 20,778,014 | |
7.50%, 05/01/2031 | | | | | | | 3,487 | | | | 3,888,634 | |
8.875%, 07/15/2030 | | | | | | | 558 | | | | 655,379 | |
| | |
| |
40 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Oleoducto Central SA 4.00%, 07/14/2027(a) | | | U.S.$ | | | | 610 | | | $ | 536,533 | |
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(a) | | | | | | | 4,529 | | | | 3,407,506 | |
TransCanada PipeLines Ltd. 7.074% (LIBOR 3 Month + 2.21%), 05/15/2067(l) | | | | | | | 2,500 | | | | 1,931,245 | |
Var Energi ASA 7.50%, 01/15/2028(a) | | | | | | | 2,151 | | | | 2,270,091 | |
8.00%, 11/15/2032(a) | | | | | | | 4,260 | | | | 4,618,961 | |
Western Midstream Operating LP 3.95%, 06/01/2025 | | | | | | | 1,033 | | | | 995,573 | |
4.30%, 02/01/2030(h) | | | | | | | 2,516 | | | | 2,303,822 | |
4.50%, 03/01/2028 | | | | | | | 1,652 | | | | 1,579,227 | |
4.75%, 08/15/2028 | | | | | | | 1,563 | | | | 1,504,344 | |
5.45%, 04/01/2044 | | | | | | | 916 | | | | 796,600 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 58,584,777 | |
| | | | | | | | | | | | |
Services – 0.0% | | | | | | | | | | | | |
Elis SA Series E 1.625%, 04/03/2028(a) | | | EUR | | | | 900 | | | | 875,851 | |
| | | | | | | | | | | | |
| | | |
Technology – 0.4% | | | | | | | | | | | | |
HP, Inc. 5.50%, 01/15/2033 | | | U.S.$ | | | | 5,346 | | | | 5,303,676 | |
Lenovo Group Ltd. 3.421%, 11/02/2030(a) | | | | | | | 735 | | | | 618,457 | |
5.831%, 01/27/2028(a) | | | | | | | 2,591 | | | | 2,610,109 | |
SK Hynix, Inc. 6.25%, 01/17/2026(a) | | | | | | | 679 | | | | 679,129 | |
6.375%, 01/17/2028(a) | | | | | | | 1,089 | | | | 1,092,877 | |
6.50%, 01/17/2033(a) | | | | | | | 934 | | | | 926,878 | |
Western Digital Corp. 2.85%, 02/01/2029 | | | | | | | 203 | | | | 160,502 | |
3.10%, 02/01/2032 | | | | | | | 541 | | | | 391,741 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,783,369 | |
| | | | | | | | | | | | |
Transportation - Airlines – 0.1% | | | | | | | | | | | | |
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a) | | | | | | | 2,971 | | | | 2,874,442 | |
| | | | | | | | | | | | |
| | | |
Transportation - Railroads – 0.1% | | | | | | | | | | | | |
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(a) | | | | | | | 1,764 | | | | 1,560,071 | |
| | | | | | | | | | | | |
| | | |
Transportation - Services – 0.1% | | | | | | | | | | | | |
AerCap Global Aviation Trust 6.50%, 06/15/2045(a) | | | | | | | 3,384 | | | | 3,182,658 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 200,284,471 | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 41 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Utility – 0.2% | | | | | | | | | | | | |
Electric – 0.2% | | | | | | | | | | | | |
Cometa Energia SA de CV 6.375%, 04/24/2035(a) | | | U.S.$ | | | | 1,688 | | | $ | 1,616,026 | |
Enel Finance International NV 7.50%, 10/14/2032(a) | | | | | | | 2,963 | | | | 3,315,589 | |
NRG Energy, Inc. 7.00%, 03/15/2033(a) | | | | | | | 1,192 | | | | 1,236,724 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,168,339 | |
| | | | | | | | | | | | |
Total Corporates - Investment Grade (cost $428,628,784) | | | | | | | | | | | 422,238,325 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
EMERGING MARKETS - CORPORATE BONDS – 6.4% | | | | | | | | | | | | |
Industrial – 6.1% | | | | | | | | | | | | |
Basic – 1.7% | | | | | | | | | | | | |
Braskem Idesa SAPI 6.99%, 02/20/2032(a) | | | | | | | 2,258 | | | | 1,601,486 | |
7.45%, 11/15/2029(a) | | | | | | | 5,151 | | | | 4,021,643 | |
Cia de Minas Buenaventura SAA 5.50%, 07/23/2026(a) | | | | | | | 3,245 | | | | 2,818,688 | |
CSN Inova Ventures 6.75%, 01/28/2028(a) | | | | | | | 10,898 | | | | 10,273,408 | |
Eldorado Gold Corp. 6.25%, 09/01/2029(a) | | | | | | | 4,648 | | | | 4,322,640 | |
First Quantum Minerals Ltd. 6.875%, 10/15/2027(a) | | | | | | | 8,370 | | | | 8,096,929 | |
Indika Energy Capital IV Pte Ltd. 8.25%, 10/22/2025(a) | | | | | | | 6,367 | | | | 6,286,617 | |
JSW Steel Ltd. 3.95%, 04/05/2027(a) | | | | | | | 593 | | | | 520,654 | |
5.05%, 04/05/2032(a) | | | | | | | 1,483 | | | | 1,192,703 | |
OCP SA 3.75%, 06/23/2031(a) | | | | | | | 1,450 | | | | 1,215,100 | |
Sasol Financing USA LLC 8.75%, 05/03/2029(a) | | | | | | | 2,588 | | | | 2,599,893 | |
Stillwater Mining Co. 4.00%, 11/16/2026(a) | | | | | | | 2,031 | | | | 1,821,934 | |
4.50%, 11/16/2029(a) | | | | | | | 1,878 | | | | 1,547,942 | |
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(a) | | | | | | | 4,766 | | | | 4,057,057 | |
Volcan Cia Minera SAA 4.375%, 02/11/2026(a) | | | | | | | 1,384 | | | | 1,045,612 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 51,422,306 | |
| | | | | | | | | | | | |
| | |
| |
42 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Capital Goods – 0.6% | | | | | | | | | | | | |
Cemex SAB de CV 5.125%, 06/08/2026(a)(m) | | | U.S.$ | | | | 1,885 | | | $ | 1,660,543 | |
7.375%, 06/05/2027(a) | | | | | | | 1,733 | | | | 1,793,980 | |
Diamond II Ltd. 7.95%, 07/28/2026(a) | | | | | | | 2,614 | | | | 2,576,809 | |
Embraer Netherlands Finance BV 5.40%, 02/01/2027 | | | | | | | 8,145 | | | | 7,839,562 | |
6.95%, 01/17/2028(a) | | | | | | | 2,279 | | | | 2,297,346 | |
IHS Holding Ltd. 5.625%, 11/29/2026(a) | | | | | | | 1,729 | | | | 1,439,717 | |
6.25%, 11/29/2028(a) | | | | | | | 537 | | | | 427,855 | |
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(a) | | | | | | | 17,592 | | | | 40,492 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,076,304 | |
| | | | | | | | | | | | |
Communications - Media – 0.1% | | | | | | | | | | | | |
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a) | | | | | | | 4,541 | | | | 3,647,842 | |
VTR Finance NV 6.375%, 07/15/2028(g) | | | | | | | 632 | | | | 199,199 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,847,041 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.2% | | | | | | | | | | | | |
CT Trust 5.125%, 02/03/2032(a) | | | | | | | 707 | | | | 581,419 | |
Digicel Group Holdings Ltd. 7.00%, 05/15/2023(f)(g)(m) | | | | | | | 716 | | | | 78,775 | |
Digicel International Finance Ltd./Digicel international Holdings Ltd. 8.75%, 05/25/2024(a) | | | | | | | 1,816 | | | | 1,637,803 | |
HTA Group Ltd./Mauritius 7.00%, 12/18/2025(a) | | | | | | | 3,000 | | | | 2,817,750 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,115,747 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 1.2% | | | | | | | | | | | | |
Allwyn Entertainment Financing UK PLC 6.779% (EURIBOR 3 Month + 4.12%), 02/15/2028(l) | | | EUR | | | | 3,827 | | | | 4,191,441 | |
Allwyn International AS 3.875%, 02/15/2027(a) | | | | | | | 744 | | | | 743,981 | |
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(a) | | | U.S.$ | | | | 6,251 | | | | 5,171,921 | |
5.625%, 07/17/2027(a) | | | | | | | 3,599 | | | | 3,210,533 | |
5.75%, 07/21/2028(a) | | | | | | | 3,277 | | | | 2,859,183 | |
MGM China Holdings Ltd. 4.75%, 02/01/2027(a) | | | | | | | 8,457 | | | | 7,649,885 | |
5.25%, 06/18/2025(a) | | | | | | | 437 | | | | 415,505 | |
5.375%, 05/15/2024(a) | | | | | | | 2,104 | | | | 2,061,657 | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 43 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Studio City Co., Ltd. 7.00%, 02/15/2027(a) | | | U.S.$ | | | | 1,338 | | | $ | 1,268,424 | |
Studio City Finance Ltd. 5.00%, 01/15/2029(a) | | | | | | | 2,502 | | | | 1,960,317 | |
6.00%, 07/15/2025(a) | | | | | | | 1,011 | | | | 923,801 | |
6.50%, 01/15/2028(a) | | | | | | | 224 | | | | 192,192 | |
Wynn Macau Ltd. 5.125%, 12/15/2029(a) | | | | | | | 2,333 | | | | 1,920,788 | |
5.50%, 01/15/2026(a) | | | | | | | 825 | | | | 764,156 | |
5.50%, 10/01/2027(a) | | | | | | | 1,100 | | | | 980,375 | |
5.625%, 08/26/2028(a) | | | | | | | 2,442 | | | | 2,123,014 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 36,437,173 | |
| | | | | | | | | | | | |
Consumer Cyclical - Retailers – 0.0% | | | | | | | | | | | | |
K201640219 South Africa Ltd. Zero Coupon, 06/25/2023(c)(e) | | | ZAR | | | | 336 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | |
Consumer Non-Cyclical – 1.0% | | | | | | | | | | | | |
BBFI Liquidating Trust Zero Coupon, 12/30/2099(c)(e)(g)(m) | | | U.S.$ | | | | 2,174 | | | | 964,034 | |
BRF SA 4.875%, 01/24/2030(a) | | | | | | | 1,552 | | | | 1,205,710 | |
Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL 5.25%, 04/27/2029(a) | | | | | | | 1,443 | | | | 1,346,319 | |
MARB BondCo PLC 3.95%, 01/29/2031(a) | | | | | | | 8,907 | | | | 6,516,139 | |
Natura & Co. Luxembourg Holdings SARL 6.00%, 04/19/2029(a) | | | | | | | 378 | | | | 335,002 | |
Natura Cosmeticos SA 4.125%, 05/03/2028(a) | | | | | | | 5,348 | | | | 4,431,487 | |
Rede D’or Finance SARL 4.50%, 01/22/2030(a) | | | | | | | 1,785 | | | | 1,499,935 | |
4.95%, 01/17/2028(a) | | | | | | | 1,820 | | | | 1,654,835 | |
Teva Pharmaceutical Finance Netherlands II BV 3.75%, 05/09/2027 | | | EUR | | | | 2,758 | | | | 2,742,354 | |
Teva Pharmaceutical Finance Netherlands III BV 4.75%, 05/09/2027 | | | U.S.$ | | | | 2,251 | | | | 2,095,259 | |
5.125%, 05/09/2029(k) | | | | | | | 2,251 | | | | 2,087,802 | |
7.875%, 09/15/2029 | | | | | | | 2,840 | | | | 2,974,192 | |
8.125%, 09/15/2031 | | | | | | | 2,840 | | | | 2,988,878 | |
Tonon Luxembourg SA 6.50%, 10/31/2024(b)(c)(g)(j) | | | | | | | 2,437 | | | | 244 | |
Ulker Biskuvi Sanayi AS 6.95%, 10/30/2025(a) | | | | | | | 1,248 | | | | 1,081,314 | |
| | |
| |
44 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(b)(c)(d)(e)(g) | | | U.S.$ | | | | 13,674 | | | $ | 1,367 | |
10.875%, 01/13/2020(b)(c)(d)(e)(g) | | | | | | | 2,500 | | | | 250 | |
11.75%, 02/09/2022(b)(c)(d)(e)(g) | | | | | | | 13,613 | | | | 1,361 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 31,926,482 | |
| | | | | | | | | | | | |
Energy – 1.0% | | | | | | | | | | | | |
Acu Petroleo Luxembourg SARL 7.50%, 01/13/2032(a) | | | | | | | 2,131 | | | | 1,850,934 | |
Cosan SA 5.50%, 09/20/2029(a) | | | | | | | 2,027 | | | | 1,823,413 | |
Gran Tierra Energy, Inc. 7.75%, 05/23/2027(a) | | | | | | | 2,731 | | | | 2,078,811 | |
Greenko Wind Projects Mauritius Ltd. 5.50%, 04/06/2025(a) | | | | | | | 3,868 | | | | 3,660,095 | |
Kosmos Energy Ltd. 7.50%, 03/01/2028(a) | | | | | | | 2,896 | | | | 2,438,613 | |
Leviathan Bond Ltd. 5.75%, 06/30/2023(a) | | | | | | | 452 | | | | 449,401 | |
6.125%, 06/30/2025(a) | | | | | | | 2,565 | | | | 2,476,530 | |
6.50%, 06/30/2027(a) | | | | | | | 3,495 | | | | 3,310,385 | |
Medco Platinum Road Pte Ltd. 6.75%, 01/30/2025(a) | | | | | | | 1,011 | | | | 984,562 | |
MV24 Capital BV 6.748%, 06/01/2034(a) | | | | | | | 2,719 | | | | 2,425,100 | |
Peru LNG SRL 5.375%, 03/22/2030(a) | | | | | | | 4,055 | | | | 3,228,794 | |
ReNew Power Pvt Ltd. 5.875%, 03/05/2027(a) | | | | | | | 121 | | | | 113,611 | |
SEPLAT Energy PLC 7.75%, 04/01/2026(a) | | | | | | | 4,308 | | | | 3,435,091 | |
SierraCol Energy Andina LLC 6.00%, 06/15/2028(a) | | | | | | | 2,354 | | | | 1,743,138 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 30,018,478 | |
| | | | | | | | | | | | |
Services – 0.1% | | | | | | | | | | | | |
Bidvest Group UK PLC (The) 3.625%, 09/23/2026(a) | | | | | | | 1,631 | | | | 1,478,909 | |
| | | | | | | | | | | | |
| | | |
Technology – 0.2% | | | | | | | | | | | | |
CA Magnum Holdings 5.375%, 10/31/2026(a) | | | | | | | 8,243 | | | | 7,227,050 | |
| | | | | | | | | | | | |
| | | |
Transportation - Services – 0.0% | | | | | | | | | | | | |
JSW Infrastructure Ltd. 4.95%, 01/21/2029(a) | | | | | | | 564 | | | | 486,556 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 186,036,046 | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 45 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Utility – 0.3% | | | | | | | | | | | | |
Electric – 0.3% | | | | | | | | | | | | |
Adani Green Energy Ltd. 4.375%, 09/08/2024(a) | | | U.S.$ | | | | 2,044 | | | $ | 1,834,490 | |
AES Andes SA 6.35%, 10/07/2079(a) | | | | | | | 2,632 | | | | 2,431,968 | |
India Clean Energy Holdings 4.50%, 04/18/2027(a) | | | | | | | 2,606 | | | | 2,111,349 | |
Investment Energy Resources Ltd. 6.25%, 04/26/2029(a) | | | | | | | 1,321 | | | | 1,218,044 | |
JSW Hydro Energy Ltd. 4.125%, 05/18/2031(a) | | | | | | | 1,509 | | | | 1,257,878 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,853,729 | |
| | | | | | | | | | | | |
Financial Institutions – 0.0% | | | | | | | | | | | | |
Other Finance – 0.0% | | | | | | | | | | | | |
OEC Finance Ltd. 4.375%, 10/25/2029(a)(f)(h) | | | | | | | 319 | | | | 9,852 | |
5.25%, 12/27/2033(a)(f)(h) | | | | | | | 5,534 | | | | 191,878 | |
7.125%, 12/26/2046(a)(f)(h) | | | | | | | 11,439 | | | | 545,108 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 746,838 | |
| | | | | | | | | | | | |
REITs – 0.0% | | | | | | | | | | | | |
China Aoyuan Group Ltd. 5.88%, 03/01/2027(a)(b)(j) | | | | | | | 1,125 | | | | 70,312 | |
5.98%, 08/18/2025(a)(b)(j) | | | | | | | 380 | | | | 23,750 | |
7.98%, 02/19/2023(a)(b)(d) | | | | | | | 579 | | | | 36,188 | |
Country Garden Holdings Co., Ltd. 3.125%, 10/22/2025(a) | | | | | | | 400 | | | | 196,000 | |
Powerlong Real Estate Holdings Ltd. 4.90%, 05/13/2026(a) | | | | | | | 500 | | | | 92,500 | |
Times China Holdings Ltd. 5.75%, 01/14/2027(a)(b)(j) | | | | | | | 792 | | | | 100,386 | |
6.20%, 03/22/2026(a)(b)(j) | | | | | | | 200 | | | | 25,663 | |
6.60%, 03/02/2023(a)(b)(d) | | | | | | | 200 | | | | 26,000 | |
6.75%, 07/08/2025(a)(b)(j) | | | | | | | 590 | | | | 75,225 | |
Yango Justice International Ltd. 7.50%, 04/15/2024(a)(b)(j) | | | | | | | 344 | | | | 6,880 | |
7.50%, 02/17/2025(a)(b)(j) | | | | | | | 918 | | | | 18,360 | |
7.88%, 09/04/2024(a)(b)(j) | | | | | | | 251 | | | | 5,020 | |
8.25%, 11/25/2023(a)(b)(j) | | | | | | | 400 | | | | 8,000 | |
10.25%, 09/15/2022(b)(d) | | | | | | | 264 | | | | 5,280 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 689,564 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,436,402 | |
| | | | | | | | | | | | |
Total Emerging Markets - Corporate Bonds (cost $269,012,008) | | | | | | | | | | | 196,326,177 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| |
46 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
BANK LOANS – 5.8% | | | | | | | | | | | | |
Industrial – 5.4% | | | | | | | | | | | | |
Capital Goods – 0.6% | | | | | | | | | | | | |
ACProducts Holdings, Inc. 9.409% (LIBOR 3 Month + 4.25%), 05/17/2028(n) | | | U.S.$ | | | | 10,303 | | | $ | 8,142,117 | |
Apex Tool Group, LLC 10.240% (SOFR 1 Month + 5.25%), 02/08/2029(n) | | | | | | | 12,365 | | | | 10,833,513 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,975,630 | |
| | | | | | | | | | | | |
Communications - Media – 0.3% | | | | | | | | | | | | |
Advantage Sales & Marketing, Inc. 9.719% (LIBOR 3 Month + 4.50%), 10/28/2027(n) | | | | | | | 9,286 | | | | 7,897,677 | |
| | | | | | | | | | | | |
| | | |
Communications - Telecommunications – 1.1% | | | | | | | | | | | | |
Crown Subsea Communications Holding, Inc. 9.668% (SOFR 1 Month + 4.75%), 04/27/2027(e)(n) | | | | | | | 7,268 | | | | 7,195,740 | |
DIRECTV Financing, LLC 10.025% (LIBOR 1 Month + 5.00%), 08/02/2027(n) | | | | | | | 2,673 | | | | 2,561,766 | |
Proofpoint, Inc. 11.275% (LIBOR 1 Month + 6.25%), 08/31/2029(n) | | | | | | | 12,450 | | | | 11,801,604 | |
Zacapa SARL 8.898% (SOFR 3 Month + 4.00%), 03/22/2029(n) | | | | | | | 12,594 | | | | 12,284,851 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 33,843,961 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.2% | | | | | | | | | | | | |
Clarios Global LP 8.275% (LIBOR 1 Month + 3.25%), 04/30/2026(n) | | | | | | | 2,493 | | | | 2,486,606 | |
Garret Motion SARL 04/25/2030(e)(o) | | | | | | | 4,390 | | | | 4,247,325 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,733,931 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 0.1% | | | | | | | | | | | | |
Caesars Entertainment, Inc. 8.332% (SOFR 1 Month + 3.25%), 02/06/2030(n) | | | | | | | 2,900 | | | | 2,885,500 | |
| | | | | | | | | | | | |
| | | |
Consumer Cyclical - Retailers – 0.0% | | | | | | | | | | | | |
Restoration Hardware, Inc. 8.332% (SOFR 1 Month + 3.25%), 10/20/2028(n) | | | | | | | 1,490 | | | | 1,382,680 | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 47 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Consumer Non-Cyclical – 1.0% | | | | | | | | | | | | |
Gainwell Acquisition Corp. 8.998% (SOFR 3 Month + 4.00%), 10/01/2027(n) | | | U.S.$ | | | | 6,813 | | | $ | 6,553,457 | |
Kronos Acquisition Holdings, Inc. 8.703% (LIBOR 3 Month + 3.75%), 12/22/2026(n) | | | | | | | 4,604 | | | | 4,483,169 | |
Mallinckrodt International Finance S.A. 10.198% (LIBOR 1 Month + 5.25%), 09/30/2027(n) | | | | | | | 4,610 | | | | 3,270,318 | |
PetSmart, LLC 8.832% (SOFR 1 Month + 3.75%), 02/11/2028(e)(n) | | | | | | | 5,735 | | | | 5,706,636 | |
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 10.332% (SOFR 1 Month + 5.25%), 12/15/2027(n) | | | | | | | 10,830 | | | | 9,977,171 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,990,751 | |
| | | | | | | | | | | | |
Energy – 0.6% | | | | | | | | | | | | |
GIP II Blue Holding, L.P. 9.659% (LIBOR 3 Month + 4.50%), 09/29/2028(n) | | | | | | | 12,424 | | | | 12,375,025 | |
Parkway Generation, LLC 9.900% (SOFR 3 Month + 4.75%), 02/18/2029(n) | | | | | | | 5,657 | | | | 5,435,496 | |
| | | | | | | | | | �� | | |
| | | | | | | | | | | 17,810,521 | |
| | | | | | | | | | | | |
Other Industrial – 0.3% | | | | | | | | | | | | |
American Tire Distributors, Inc. 11.488% (SOFR 3 Month + 6.25%), 10/20/2028(n) | | | | | | | 5,068 | | | | 4,278,291 | |
Dealer Tire Financial, LLC 9.482% (SOFR 1 Month + 4.50%), 12/14/2027(n) | | | | | | | 1,591 | | | | 1,583,451 | |
FCG Acquisitions, Inc. 11.909% (LIBOR 3 Month + 6.75%), 03/30/2029(n) | | | | | | | 3,390 | | | | 3,180,939 | |
Rockwood Service Corporation 9.025% (LIBOR 1 Month + 4.00%), 01/23/2027(n) | | | | | | | 494 | | | | 490,925 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,533,606 | |
| | | | | | | | | | | | |
Services – 0.3% | | | | | | | | | | | | |
Verscend Holding Corp. 9.025% (LIBOR 1 Month + 4.00%), 08/27/2025(n) | | | | | | | 7,644 | | | | 7,630,045 | |
| | | | | | | | | | | | |
| | |
| |
48 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Technology – 0.9% | | | | | | | | | | | | |
Ascend Learning, LLC 10.832% (SOFR 1 Month + 5.75%), 12/10/2029(n) | | | U.S.$ | | | | 2,940 | | | $ | 2,546,775 | |
Banff Guarantor, Inc. 10.525% (LIBOR 1 Month + 5.50%), 02/27/2026(n) | | | | | | | 2,470 | | | | 2,382,513 | |
Boxer Parent Company, Inc. 8.775% (LIBOR 1 Month + 3.75%), 10/02/2025(n) | | | | | | | 8,544 | | | | 8,432,617 | |
Endurance International Group Holdings, Inc. 8.792% (LIBOR 3 Month + 3.50%), 02/10/2028(e)(n) | | | | | | | 10,138 | | | | 9,469,087 | |
FINThrive Software Intermediate Holdings, Inc. 11.775% (LIBOR 1 Month + 6.75%), 12/17/2029(n) | | | | | | | 2,810 | | | | 1,970,512 | |
Loyalty Ventures, Inc. 11.500% (PRIME 3 Month + 3.50%), 11/03/2027(b)(j)(n) | | | | | | | 6,261 | | | | 589,637 | |
Veritas US, Inc. 10.025% (LIBOR 1 Month + 5.00%), 09/01/2025(n) | | | | | | | 3,541 | | | | 2,714,210 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,105,351 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 164,789,653 | |
| | | | | | | | | | | | |
Utility – 0.2% | | | | | | | | | | | | |
Electric – 0.2% | | | | | | | | | | | | |
Granite Generation LLC 8.775% (LIBOR 1 Month + 3.75%), 11/09/2026(n) | | | | | | | 7,228 | | | | 6,758,222 | |
| | | | | | | | | | | | |
| | | |
Financial Institutions – 0.2% | | | | | | | | | | | | |
Finance – 0.0% | | | | | | | | | | | | |
Orbit Private Holdings I Ltd. 9.541% (SOFR 6 Month + 4.50%), 12/11/2028(n) | | | | | | | 889 | | | | 887,639 | |
| | | | | | | | | | | | |
| | | |
Insurance – 0.2% | | | | | | | | | | | | |
Asurion, LLC 9.332% (SOFR 1 Month + 4.25%), 08/19/2028(n) | | | | | | | 6,230 | | | | 5,781,440 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,669,079 | |
| | | | | | | | | | | | |
Total Bank Loans (cost $194,423,222) | | | | | | | | | | | 178,216,954 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 49 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS – 4.9% | | | | | | | | | | | | |
Risk Share Floating Rate – 4.4% | | | | | | | | | | | | |
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-DNA1, Class B 14.22% (LIBOR 1 Month + 9.20%), 10/25/2027(l) | | | U.S.$ | | | | 896 | | | $ | 941,194 | |
Series 2015-DNA2, Class B 12.57% (LIBOR 1 Month + 7.55%), 12/25/2027(l) | | | | | | | 14,724 | | | | 14,943,916 | |
Series 2015-DNA3, Class B 14.37% (LIBOR 1 Month + 9.35%), 04/25/2028(l) | | | | | | | 7,458 | | | | 7,792,983 | |
Series 2015-HQ2, Class B 12.97% (LIBOR 1 Month + 7.95%), 05/25/2025(l) | | | | | | | 283 | | | | 287,206 | |
Series 2015-HQA1, Class B 13.82% (LIBOR 1 Month + 8.80%), 03/25/2028(l) | | | | | | | 12,403 | | | | 12,588,068 | |
Series 2015-HQA2, Class B 15.52% (LIBOR 1 Month + 10.50%), 05/25/2028(l) | | | | | | | 6,957 | | | | 7,528,674 | |
Series 2016-DNA2, Class B 15.52% (LIBOR 1 Month + 10.50%), 10/25/2028(l) | | | | | | | 5,011 | | | | 5,360,996 | |
Series 2016-DNA3, Class B 16.27% (LIBOR 1 Month + 11.25%), 12/25/2028(l) | | | | | | | 4,437 | | | | 4,879,638 | |
Series 2016-DNA4, Class B 13.62% (LIBOR 1 Month + 8.60%), 03/25/2029(l) | | | | | | | 1,815 | | | | 1,869,670 | |
Series 2016-HQA1, Class B 17.77% (LIBOR 1 Month + 12.75%), 09/25/2028(l) | | | | | | | 2,979 | | | | 3,358,383 | |
Series 2016-HQA2, Class B 16.52% (LIBOR 1 Month + 11.50%), 11/25/2028(l) | | | | | | | 3,909 | | | | 4,299,653 | |
Federal National Mortgage Association Connecticut Avenue Securities Series 2016-C01, Class 1B 16.77% (LIBOR 1 Month + 11.75%), 08/25/2028(l) | | | | | | | 4,006 | | | | 4,457,395 | |
Series 2016-C02, Class 1B 17.27% (LIBOR 1 Month + 12.25%), 09/25/2028(l) | | | | | | | 2,875 | | | | 3,219,408 | |
Series 2016-C03, Class 1B 16.77% (LIBOR 1 Month + 11.75%), 10/25/2028(l) | | | | | | | 7,088 | | | | 7,866,992 | |
| | |
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50 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2016-C03, Class 2B 17.77% (LIBOR 1 Month + 12.75%), 10/25/2028(l) | | | U.S.$ | | | | 3,932 | | | $ | 4,425,772 | |
Series 2016-C04, Class 1B 15.27% (LIBOR 1 Month + 10.25%), 01/25/2029(l) | | | | | | | 13,218 | | | | 14,109,213 | |
Series 2016-C05, Class 2B 15.77% (LIBOR 1 Month + 10.75%), 01/25/2029(l) | | | | | | | 11,979 | | | | 12,853,556 | |
Series 2016-C06, Class 1B 14.27% (LIBOR 1 Month + 9.25%), 04/25/2029(l) | | | | | | | 8,453 | | | | 8,831,735 | |
Series 2016-C07, Class 2B 14.52% (LIBOR 1 Month + 9.50%), 05/25/2029(l) | | | | | | | 10,245 | | | | 10,551,896 | |
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 10.52% (LIBOR 1 Month + 5.50%), 10/25/2025(g)(l) | | | | | | | 2,150 | | | | 2,099,417 | |
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 10.27% (LIBOR 1 Month + 5.25%), 11/25/2025(g)(l) | | | | | | | 1,442 | | | | 1,343,328 | |
Series 2015-WF1, Class 2M2 10.52% (LIBOR 1 Month + 5.50%), 11/25/2025(g)(l) | | | | | | | 710 | | | | 675,480 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 134,284,573 | |
| | | | | | | | | | | | |
Non-Agency Fixed Rate – 0.4% | | | | | | | | | | | | |
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 08/25/2036 | | | | | | | 1,976 | | | | 1,115,735 | |
Series 2006-24CB, Class A16 5.75%, 08/25/2036 | | | | | | | 378 | | | | 213,321 | |
Series 2006-26CB, Class A6 6.25%, 09/25/2036 | | | | | | | 193 | | | | 106,197 | |
Series 2006-26CB, Class A8 6.25%, 09/25/2036 | | | | | | | 730 | | | | 401,308 | |
Series 2006-42, Class 1A6 6.00%, 01/25/2047 | | | | | | | 849 | | | | 509,316 | |
Series 2006-HY12, Class A5 3.551%, 08/25/2036 | | | | | | | 2,071 | | | | 1,913,511 | |
Series 2006-J1, Class 1A10 5.50%, 02/25/2036 | | | | | | | 697 | | | | 505,805 | |
Series 2006-J5, Class 1A1 6.50%, 09/25/2036 | | | | | | | 644 | | | | 384,316 | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 51 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2007-15CB, Class A19 5.75%, 07/25/2037 | | | U.S.$ | | | | 362 | | | $ | 226,808 | |
Series 2007-16CB, Class 1A7 6.00%, 08/25/2037 | | | | | | | 357 | | | | 276,317 | |
Bear Stearns ARM Trust Series 2007-3, Class 1A1 3.69%, 05/25/2047 | | | | | | | 324 | | | | 285,524 | |
Series 2007-4, Class 22A1 3.696%, 06/25/2047 | | | | | | | 1,335 | | | | 1,191,501 | |
ChaseFlex Trust Series 2007-1, Class 1A3 6.50%, 02/25/2037 | | | | | | | 474 | | | | 181,873 | |
CHL Mortgage Pass-Through Trust Series 2007-HY4, Class 1A1 3.625%, 09/25/2047 | | | | | | | 360 | | | | 311,202 | |
Citigroup Mortgage Loan Trust Series 2007-AR4, Class 1A1A 4.011%, 03/25/2037 | | | | | | | 209 | | | | 178,241 | |
CitiMortgage Alternative Loan Trust Series 2007-A3, Class 1A4 5.75%, 03/25/2037 | | | | | | | 568 | | | | 518,747 | |
First Horizon Alternative Mortgage Securities Trust Series 2006-AA3, Class A1 4.426%, 06/25/2036 | | | | | | | 276 | | | | 216,898 | |
Residential Accredit Loans, Inc. Trust Series 2005-QA10, Class A31 4.629%, 09/25/2035 | | | | | | | 1,228 | | | | 816,040 | |
Series 2005-QS14, Class 3A1 6.00%, 09/25/2035 | | | | | | | 764 | | | | 673,588 | |
Residential Asset Securitization Trust Series 2006-A8, Class 3A4 6.00%, 08/25/2036 | | | | | | | 495 | | | | 247,659 | |
Series 2007-A1, Class A8 6.00%, 03/25/2037 | | | | | | | 856 | | | | 283,414 | |
Series 2007-A5, Class 2A3 6.00%, 05/25/2037 | | | | | | | 218 | | | | 128,380 | |
Washington Mutual Mortgage Pass-Through Certificates Trust Series 2006-9, Class A4 4.292%, 10/25/2036 | | | | | | | 1,572 | | | | 448,749 | |
Wells Fargo Mortgage Backed Securities Trust Series 2007-AR7, Class A1 4.35%, 12/28/2037 | | | | | | | 1,231 | | | | 1,070,181 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,204,631 | |
| | | | | | | | | | | | |
| | |
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52 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Non-Agency Floating Rate – 0.1% | | | | | | | | | | | | |
Alternative Loan Trust Series 2007-7T2, Class A3 5.62% (LIBOR 1 Month + 0.60%), 04/25/2037(l) | | | U.S.$ | | | | 2,065 | | | $ | 729,828 | |
CHL Mortgage Pass-Through Trust Series 2007-13, Class A7 5.62% (LIBOR 1 Month + 0.60%), 08/25/2037(l) | | | | | | | 305 | | | | 123,820 | |
First Horizon Alternative Mortgage Securities Trust Series 2007-FA2, Class 1A10 5.27% (LIBOR 1 Month + 0.25%), 04/25/2037(l) | | | | | | | 905 | | | | 234,531 | |
Lehman Mortgage Trust Series 2007-1, Class 3A1 5.27% (LIBOR 1 Month + 0.25%), 02/25/2037(l) | | | | | | | 2,852 | | | | 355,685 | |
Series 2007-1, Class 3A2 2.23% (7.25% – LIBOR 1 Month), 02/25/2037(l)(p) | | | | | | | 2,852 | | | | 260,297 | |
Lehman XS Trust Series 2007-16N, Class 2A2 6.72% (LIBOR 1 Month + 1.70%), 09/25/2047(l) | | | | | | | 366 | | | | 309,534 | |
PHH Alternative Mortgage Trust Series 2007-1, Class 1A1 5.34% (LIBOR 1 Month + 0.32%), 02/25/2037(l) | | | | | | | 396 | | | | 295,519 | |
Series 2007-2, Class 1A3 5.68% (LIBOR 1 Month + 0.66%), 05/25/2037(l) | | | | | | | 224 | | | | 203,850 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,513,064 | |
| | | | | | | | | | | | |
Total Collateralized Mortgage Obligations (cost $148,943,176) | | | | | | | | | | | 149,002,268 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
COLLATERALIZED LOAN OBLIGATIONS – 3.3% | | | | | | | | | | | | |
CLO - Floating Rate – 3.3% | | | | | | | | | | | | |
Ares XXXIV CLO Ltd. Series 2015-2A, Class CR 7.26% (LIBOR 3 Month + 2.00%), 04/17/2033(a)(l) | | | | | | | 11,494 | | | | 10,870,660 | |
Ballyrock CLO 15 Ltd. Series 2021-1A, Class D 11.48% (LIBOR 3 Month + 6.22%), 04/15/2034(a)(l) | | | | | | | 2,000 | | | | 1,821,786 | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 53 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Bristol Park CLO Ltd. Series 2016-1A, Class DR 8.21% (LIBOR 3 Month + 2.95%), 04/15/2029(a)(l) | | U.S.$ | | | 5,000 | | | $ | 4,619,060 | |
Dryden 49 Senior Loan Fund Series 2017-49A, Class E 11.562% (LIBOR 3 Month + 6.30%), 07/18/2030(a)(l) | | | | | 2,424 | | | | 2,020,624 | |
Dryden 57 CLO Ltd. Series 2018-57A, Class E 10.064% (LIBOR 3 Month + 5.20%), 05/15/2031(a)(l) | | | | | 1,741 | | | | 1,402,228 | |
Dryden 78 CLO Ltd. Series 2020-78A, Class C 7.21% (LIBOR 3 Month + 1.95%), 04/17/2033(a)(l) | | | | | 2,270 | | | | 2,145,463 | |
Series 2020-78A, Class D 8.26% (LIBOR 3 Month + 3.00%), 04/17/2033(a)(l) | | | | | 11,286 | | | | 10,496,243 | |
Dryden 98 CLO Ltd. Series 2022-98A, Class E 11.449% (SOFR + 6.40%), 04/20/2035(a)(l) | | | | | 4,009 | | | | 3,580,079 | |
Elevation CLO Ltd. Series 2020-11A, Class C 7.46% (LIBOR 3 Month + 2.20%), 04/15/2033(a)(l) | | | | | 3,505 | | | | 3,324,446 | |
Series 2020-11A, Class D1 9.11% (LIBOR 3 Month + 3.85%), 04/15/2033(a)(l) | | | | | 5,438 | | | | 4,980,458 | |
Elmwood CLO IX Ltd. Series 2021-2A, Class E 11.20% (LIBOR 3 Month + 5.95%), 07/20/2034(a)(l) | | | | | 800 | | | | 747,069 | |
Elmwood CLO VII Ltd. Series 2020-4A, Class E 12.36% (LIBOR 3 Month + 7.10%), 01/17/2034(a)(l) | | | | | 2,122 | | | | 2,049,347 | |
Elmwood CLO VIII Ltd. Series 2021-1A, Class E1 11.25% (LIBOR 3 Month + 6.00%), 01/20/2034(a)(l) | | | | | 1,786 | | | | 1,678,840 | |
Elmwood CLO XII Ltd. Series 2021-5A, Class E 11.60% (LIBOR 3 Month + 6.35%), 01/20/2035(a)(l) | | | | | 3,650 | | | | 3,472,095 | |
| | |
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54 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Flatiron CLO 21 Ltd. Series 2021-1A, Class E 11.265% (LIBOR 3 Month + 6.00%), 07/19/2034(a)(l) | | U.S.$ | | | 350 | | | $ | 316,358 | |
LCM 28 Ltd. Series 28A, Class D 8.20% (LIBOR 3 Month + 2.95%), 10/20/2030(a)(l) | | | | | 500 | | | | 408,057 | |
Madison Park Funding LI Ltd. Series 2021-51A, Class E 11.535% (LIBOR 3 Month + 6.27%), 07/19/2034(a)(l) | | | | | 1,600 | | | | 1,496,098 | |
OCP CLO Ltd. Series 2021-21A, Class E 11.53% (LIBOR 3 Month + 6.28%), 07/20/2034(a)(l) | | | | | 2,250 | | | | 1,988,725 | |
Octagon Investment Partners 29 Ltd. Series 2016-1A, Class CR 7.223% (LIBOR 3 Month + 1.95%), 01/24/2033(a)(l) | | | | | 8,719 | | | | 8,232,489 | |
Series 2016-1A, Class DR 8.373% (LIBOR 3 Month + 3.10%), 01/24/2033(a)(l) | | | | | 7,987 | | | | 7,301,681 | |
OZLM XXII Ltd. Series 2018-22A, Class D 10.56% (LIBOR 3 Month + 5.30%), 01/17/2031(a)(l) | | | | | 968 | | | | 732,028 | |
Palmer Square CLO Ltd. Series 2021-1A, Class D 11.25% (LIBOR 3 Month + 6.00%), 04/20/2034(a)(l) | | | | | 6,063 | | | | 5,647,501 | |
Rad CLO 4 Ltd. Series 2019-4A, Class E 12.005% (LIBOR 3 Month + 6.75%), 04/25/2032(a)(l) | | | | | 3,086 | | | | 2,893,821 | |
Rad CLO 7 Ltd. Series 2020-7A, Class C 7.26% (LIBOR 3 Month + 2.00%), 04/17/2033(a)(l) | | | | | 2,940 | | | | 2,802,211 | |
Rad CLO 10 Ltd. Series 2021-10A, Class E 11.123% (LIBOR 3 Month + 5.85%), 04/23/2034(a)(l) | | | | | 3,793 | | | | 3,490,268 | |
Rad CLO 11 Ltd. Series 2021-11A, Class E 11.51% (LIBOR 3 Month + 6.25%), 04/15/2034(a)(l) | | | | | 1,545 | | | | 1,429,870 | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 55 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Regatta XIX Funding Ltd. Series 2022-1A, Class E 11.929% (SOFR + 6.88%), 04/20/2035(a)(l) | | | U.S.$ | | | | 1,451 | | | $ | 1,326,346 | |
Rockford Tower CLO Ltd. Series 2019-1A, Class ER 11.57% (LIBOR 3 Month + 6.32%), 04/20/2034(a)(l) | | | | | | | 2,000 | | | | 1,642,014 | |
Series 2021-2A, Class E 11.65% (LIBOR 3 Month + 6.40%), 07/20/2034(a)(l) | | | | | | | 1,100 | | | | 960,959 | |
Series 2021-3A, Class E 11.97% (LIBOR 3 Month + 6.72%), 10/20/2034(a)(l) | | | | | | | 4,738 | | | | 3,795,182 | |
Sixth Street CLO XX Ltd. Series 2021-20A, Class E 11.40% (LIBOR 3 Month + 6.15%), 10/20/2034(a)(l) | | | | | | | 3,021 | | | | 2,838,978 | |
Trimaran Cavu Ltd. Series 2019-1A, Class E 12.29% (LIBOR 3 Month + 7.04%), 07/20/2032(a)(l) | | | | | | | 2,469 | | | | 2,126,489 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Loan Obligations (cost $111,296,848) | | | | | | | | | | | 102,637,473 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
EMERGING MARKETS - SOVEREIGNS – 2.9% | | | | | | | | | | | | |
Angola – 0.4% | | | | | | | | | | | | |
Angolan Government International Bond 8.00%, 11/26/2029(a) | | | | | | | 6,204 | | | | 5,218,340 | |
9.125%, 11/26/2049(a) | | | | | | | 286 | | | | 213,392 | |
9.50%, 11/12/2025(a) | | | | | | | 5,861 | | | | 5,783,341 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 11,215,073 | |
| | | | | | | | | | | | |
Argentina – 0.1% | | | | | | | | | | | | |
Argentine Republic Government International Bond 0.50%, 07/09/2030(h) | | | | | | | 3,546 | | | | 861,655 | |
1.00%, 07/09/2029 | | | | | | | 2,895 | | | | 686,392 | |
1.50%, 07/09/2035(h) | | | | | | | 2,555 | | | | 568,164 | |
3.50%, 07/09/2041(h) | | | | | | | 991 | | | | 247,664 | |
3.875%, 01/09/2038(h) | | | | | | | 4,145 | | | | 1,144,529 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,508,404 | |
| | | | | | | | | | | | |
Bahrain – 0.3% | | | | | | | | | | | | |
Bahrain Government International Bond | | | | | | | | | | | | |
5.45%, 09/16/2032(a) | | | | | | | 468 | | | | 417,632 | |
| | |
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56 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
6.75%, 09/20/2029(a) | | | U.S.$ | | | | 1,973 | | | $ | 1,961,655 | |
7.00%, 10/12/2028(a) | | | | | | | 1,673 | | | | 1,709,911 | |
7.375%, 05/14/2030(a) | | | | | | | 571 | | | | 586,988 | |
CBB International Sukuk Programme Co. WLL 6.25%, 11/14/2024(a) | | | | | | | 3,791 | | | | 3,811,850 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,488,036 | |
| | | | | | | | | | | | |
Dominican Republic – 0.4% | | | | | | | | | | | | |
Dominican Republic International Bond 8.625%, 04/20/2027(a) | | | | | | | 12,151 | | | | 12,711,465 | |
| | | | | | | | | | | | |
| | | |
Ecuador – 0.1% | | | | | | | | | | | | |
Ecuador Government International Bond 1.50%, 07/31/2040(a)(h) | | | | | | | 6,518 | | | | 2,119,438 | |
2.50%, 07/31/2035(a)(h) | | | | | | | 4,144 | | | | 1,513,391 | |
5.50%, 07/31/2030(a)(h) | | | | | | | 514 | | | | 269,870 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,902,699 | |
| | | | | | | | | | | | |
Egypt – 0.1% | | | | | | | | | | | | |
Egypt Government International Bond 8.70%, 03/01/2049(a) | | | | | | | 612 | | | | 323,710 | |
8.875%, 05/29/2050(a) | | | | | | | 4,471 | | | | 2,366,276 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,689,986 | |
| | | | | | | | | | | | |
El Salvador – 0.2% | | | | | | | | | | | | |
El Salvador Government International Bond 6.375%, 01/18/2027(a) | | | | | | | 3,407 | | | | 2,122,561 | |
7.125%, 01/20/2050(a) | | | | | | | 2,430 | | | | 1,178,246 | |
7.625%, 09/21/2034(a) | | | | | | | 631 | | | | 316,013 | |
7.625%, 02/01/2041(a) | | | | | | | 1,445 | | | | 711,663 | |
9.50%, 07/15/2052(a) | | | | | | | 1,470 | | | | 802,987 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,131,470 | |
| | | | | | | | | | | | |
Gabon – 0.1% | | | | | | | | | | | | |
Gabon Government International Bond 6.625%, 02/06/2031(a) | | | | | | | 4,626 | | | | 3,412,542 | |
| | | | | | | | | | | | |
| | | |
Ivory Coast – 0.3% | | | | | | | | | | | | |
Ivory Coast Government International Bond 4.875%, 01/30/2032(a) | | | EUR | | | | 7,815 | | | | 6,503,183 | |
6.375%, 03/03/2028(a) | | | U.S.$ | | | | 3,087 | | | | 2,939,017 | |
6.625%, 03/22/2048(a) | | | EUR | | | | 732 | | | | 541,575 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,983,775 | |
| | | | | | | | | | | | |
Nigeria – 0.4% | | | | | | | | | | | | |
Nigeria Government International Bond 6.125%, 09/28/2028(a) | | | U.S.$ | | | | 7,667 | | | | 5,818,774 | |
7.143%, 02/23/2030(a) | | | | | | | 5,188 | | | | 3,874,139 | |
7.625%, 11/28/2047(a) | | | | | | | 1,784 | | | | 1,108,087 | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 57 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
7.696%, 02/23/2038(a) | | | U.S.$ | | | | 671 | | | $ | 440,889 | |
7.875%, 02/16/2032(a) | | | | | | | 1,321 | | | | 974,898 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 12,216,787 | |
| | | | | | | | | | | | |
Oman – 0.1% | | | | | | | | | | | | |
Oman Government International Bond 4.875%, 02/01/2025(a) | | | | | | | 415 | | | | 410,279 | |
6.25%, 01/25/2031(a) | | | | | | | 1,630 | | | | 1,687,865 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,098,144 | |
| | | | | | | | | | | | |
Senegal – 0.2% | | | | | | | | | | | | |
Senegal Government International Bond 6.25%, 05/23/2033(a) | | | | | | | 5,674 | | | | 4,453,381 | |
6.75%, 03/13/2048(a) | | | | | | | 3,641 | | | | 2,427,637 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,881,018 | |
| | | | | | | | | | | | |
Ukraine – 0.1% | | | | | | | | | | | | |
Ukraine Government International Bond 7.253%, 03/15/2035(a)(h) | | | | | | | 3,980 | | | | 645,009 | |
7.375%, 09/25/2034(a)(h) | | | | | | | 3,486 | | | | 560,592 | |
7.75%, 09/01/2025(a)(h) | | | | | | | 5,795 | | | | 1,102,137 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,307,738 | |
| | | | | | | | | | | | |
Venezuela – 0.1% | | | | | | | | | | | | |
Venezuela Government International Bond 7.65%, 04/21/2025(a)(b)(j) | | | | | | | 6,636 | | | | 663,600 | |
9.00%, 05/07/2023(a)(b)(j) | | | | | | | 538 | | | | 53,800 | |
9.25%, 09/15/2027(b)(j) | | | | | | | 34,020 | | | | 3,402,000 | |
9.25%, 05/07/2028(a)(b)(j) | | | | | | | 1,500 | | | | 150,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,269,400 | |
| | | | | | | | | | | | |
Total Emerging Markets - Sovereigns (cost $143,348,157) | | | | | | | | | | | 88,816,537 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - TREASURIES – 2.0% | | | | | | | | | | | | |
United States – 2.0% | | | | | | | | | | | | |
U.S. Treasury Bonds 6.125%, 11/15/2027(q) | | | | | | | 9,763 | | | | 10,780,378 | |
U.S. Treasury Notes 2.375%, 05/15/2029(k)(q) | | | | | | | 15,542 | | | | 14,551,385 | |
3.125%, 11/15/2028(q)(r) | | | | | | | 12,054 | | | | 11,782,589 | |
4.00%, 02/29/2028(q) | | | | | | | 22,478 | | | | 22,931,275 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Treasuries (cost $61,844,285) | | | | | | | | | | | 60,045,627 | |
| | | | | | | | | | | | |
| | |
| |
58 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
Company | | | | | Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 1.2% | | | | | | | | | | | | |
Consumer Staples – 0.4% | | | | | | | | | | | | |
Household Products – 0.4% | | | | | | | | | | | | |
Southeastern Grocers, Inc.(b)(c)(e) | | | | | | | 508,189 | | | $ | 11,624,824 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Consumer Discretionary – 0.3% | | | | | | | | | | | | |
Broadline Retail – 0.3% | | | | | | | | | | | | |
ATD New Holdings, Inc.(b)(e) | | | | | | | 161,762 | | | | 8,735,148 | |
K201640219 South Africa Ltd. A Shares(b)(c)(e) | | | | | | | 64,873,855 | | | | 65 | |
K201640219 South Africa Ltd. B Shares(b)(c)(e) | | | | | | | 10,275,684 | | | | 10 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,735,223 | |
| | | | | | | | | | | | |
Diversified Consumer Services – 0.0% | | | | | | | | | | | | |
AG Tracker(b)(c)(e) | | | | | | | 341,874 | | | | – 0 | – |
Monitronics International, Inc.(b) | | | | | | | 129,032 | | | | 6,452 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,452 | |
| | | | | | | | | | | | |
Hotels, Restaurants & Leisure – 0.0% | | | | | | | | | | | | |
Caesars Entertainment, Inc.(b) | | | | | | | 4,628 | | | | 209,602 | |
| | | | | | | | | | | | |
| | | |
Leisure Products – 0.0% | | | | | | | | | | | | |
New Cotai LLC/New Cotai Capital Corp.(b)(c)(e) | | | | | | | 14 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,951,277 | |
| | | | | | | | | | | | |
Energy – 0.2% | | | | | | | | | | | | |
Energy Equipment & Services – 0.1% | | | | | | | | | | | | |
BIS Industries Holdings Ltd.(b)(c)(e) | | | | | | | 5,004,988 | | | | 5 | |
CHC Group LLC(b) | | | | | | | 104,383 | | | | 157 | |
Diamond Offshore Drilling, Inc.(b) | | | | | | | 148,609 | | | | 1,707,517 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,707,679 | |
| | | | | | | | | | | | |
Oil, Gas & Consumable Fuels – 0.1% | | | | | | | | | | | | |
Battalion Oil Corp.(b) | | | | | | | 135 | | | | 950 | |
Berry Corp. | | | | | | | 211,000 | | | | 1,612,040 | |
Civitas Resources, Inc. | | | | | | | 24,592 | | | | 1,698,078 | |
Denbury, Inc.(b) | | | | | | | 33,050 | | | | 3,086,209 | |
Golden Energy Offshore Services AS^(b) | | | | | | | 3,360,247 | | | | 373,324 | |
SandRidge Energy, Inc.(b) | | | | | | | 1,446 | | | | 20,490 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,791,091 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,498,770 | |
| | | | | | | | | | | | |
Financials – 0.1% | | | | | | | | | | | | |
Financial Services – 0.0% | | | | | | | | | | | | |
Paysafe Ltd.(b) | | | | | | | 46,898 | | | | 673,455 | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 59 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
Company | | | | | Shares | | | U.S. $ Value | |
| |
Insurance – 0.1% | | | | | | | | | | | | |
Mt Logan Re Ltd. (Special Investment)(b)(c)(e) | | | | | | | 2,575 | | | $ | 2,300,859 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,974,314 | |
| | | | | | | | | | | | |
Communication Services – 0.1% | | | | | | | | | | | | |
Diversified Telecommunication Services – 0.1% | | | | | | | | | | | | |
Intelsat Emergence SA(b)(e) | | | | | | | 87,751 | | | | 2,177,366 | |
Intelsat Jackson Holdings SA(b)(c)(e) | | | | | | | 18,378 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,177,366 | |
| | | | | | | | | | | | |
Media – 0.0% | | | | | | | | | | | | |
iHeartMedia, Inc. – Class A(b) | | | | | | | 164,799 | | | | 571,852 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,749,218 | |
| | | | | | | | | | | | |
Industrials – 0.1% | | | | | | | | | | | | |
Electrical Equipment – 0.1% | | | | | | | | | | | | |
Exide Corp.(b)(c)(e) | | | | | | | 4,045 | | | | 1,618,000 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Health Care – 0.0% | | | | | | | | | | | | |
Pharmaceuticals – 0.0% | | | | | | | | | | | | |
Mallinckrodt PLC(b) | | | | | | | 22,361 | | | | 130,588 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Information Technology – 0.0% | | | | | | | | | | | | |
IT Services – 0.0% | | | | | | | | | | | | |
GOLO Mobile, Inc.(b)(c)(e) | | | | | | | 168,790 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | |
Total Common Stocks (cost $87,854,565) | | | | | | | | | | | 36,546,991 | |
| | | | | | | | | | | | |
| | | |
| | | | | Principal Amount (000) | | | | |
QUASI-SOVEREIGNS – 0.9% | | | | | | | | | | | | |
Quasi-Sovereign Bonds – 0.9% | | | | | | | | | | | | |
Kazakhstan – 0.2% | | | | | | | | | | | | |
KazMunayGas National Co. JSC 5.375%, 04/24/2030(a) | | | U.S.$ | | | | 5,100 | | | | 4,674,099 | |
| | | | | | | | | | | | |
| | | |
Mexico – 0.5% | | | | | | | | | | | | |
Comision Federal de Electricidad 4.688%, 05/15/2029(a) | | | | | | | 2,363 | | | | 2,127,143 | |
Petroleos Mexicanos 5.95%, 01/28/2031 | | | | | | | 3,818 | | | | 2,823,029 | |
6.49%, 01/23/2027 | | | | | | | 1,276 | | | | 1,142,020 | |
6.50%, 01/23/2029 | | | | | | | 1,268 | | | | 1,067,688 | |
6.70%, 02/16/2032 | | | | | | | 3,899 | | | | 2,994,919 | |
6.75%, 09/21/2047 | | | | | | | 6,363 | | | | 3,916,426 | |
7.69%, 01/23/2050 | | | | | | | 2,298 | | | | 1,531,043 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 15,602,268 | |
| | | | | | | | | | | | |
| | |
| |
60 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
Panama – 0.0% | | | | | | | | | | | | |
Aeropuerto Internacional de Tocumen SA 4.00%, 08/11/2041(a) | | | U.S.$ | | | | 394 | | | $ | 315,274 | |
5.125%, 08/11/2061(a) | | | | | | | 223 | | | | 171,334 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 486,608 | |
| | | | | | | | | | | | |
South Africa – 0.2% | | | | | | | | | | | | |
Eskom Holdings SOC Ltd. 7.125%, 02/11/2025(a) | | | | | | | 1,951 | | | | 1,898,933 | |
Transnet SOC Ltd. 8.25%, 02/06/2028(a) | | | | | | | 4,870 | | | | 4,819,169 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,718,102 | |
| | | | | | | | | | | | |
Trinidad & Tobago – 0.0% | | | | | | | | | | | | |
Trinidad Generation UnLtd. 5.25%, 11/04/2027(a) | | | | | | | 202 | | | | 197,367 | |
| | | | | | | | | | | | |
| | | |
Venezuela – 0.0% | | | | | | | | | | | | |
Petroleos de Venezuela SA 6.00%, 11/15/2026(a)(b)(j) | | | | | | | 5,000 | | | | 142,500 | |
| | | | | | | | | | | | |
| | | |
Total Quasi-Sovereigns (cost $32,416,574) | | | | | | | | | | | 27,820,944 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.5% | | | | | | | | | | | | |
United States – 0.5% | | | | | | | | | | | | |
State of California Series 2010 7.60%, 11/01/2040 | | | | | | | 1,200 | | | | 1,590,495 | |
7.625%, 03/01/2040 | | | | | | | 1,250 | | | | 1,629,674 | |
State of Illinois (State of Illinois) Series 2010 7.35%, 07/01/2035 | | | | | | | 3,826 | | | | 4,222,351 | |
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(a) | | | | | | | 7,240 | | | | 6,596,527 | |
| | | | | | | | | | | | |
| | | |
Total Local Governments - US Municipal Bonds (cost $13,556,509) | | | | | | | | | | | 14,039,047 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 61 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.4% | | | | | | | | | | | | |
Non-Agency Fixed Rate CMBS – 0.3% | | | | | | | | | | | | |
Commercial Mortgage Trust Series 2012-CR3, Class F 4.75%, 10/15/2045(a) | | | U.S.$ | | | | 1,000 | | | $ | 199,035 | |
Series 2014-CR15, Class XA 0.756%, 02/10/2047(s) | | | | | | | 6,025 | | | | 17,095 | |
GS Mortgage Securities Trust Series 2011-GC5, Class C 5.298%, 08/10/2044(a) | | | | | | | 7,937 | | | | 5,204,959 | |
Series 2013-GC13, Class D 4.207%, 07/10/2046(a) | | | | | | | 1,500 | | | | 599,979 | |
Series 2014-GC18, Class D 5.223%, 01/10/2047(a) | | | | | | | 908 | | | | 296,297 | |
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class D 4.991%, 06/15/2044(a) | | | | | | | 2,576 | | | | 2,208,197 | |
Series 2014-C20, Class D 3.986%, 05/15/2047(a) | | | | | | | 3,701 | | | | 1,109,510 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,635,072 | |
| | | | | | | | | | | | |
Non-Agency Floating Rate CMBS – 0.1% | | | | | | | | | | | | |
Morgan Stanley Capital I Trust Series 2019-BPR, Class E 9.948% (LIBOR 1 Month + 5.00%), 05/15/2036(a)(l) | | | | | | | 1,702 | | | | 1,441,733 | |
| | | | | | | | | | | | |
| | | |
Total Commercial Mortgage-Backed Securities (cost $17,315,827) | | | | | | | | | | | 11,076,805 | |
| | | | | | | | | | | | |
| | | |
| | | | | Shares | | | | |
PREFERRED STOCKS – 0.3% | | | | | | | | | | | | |
Industrials – 0.2% | | | | | | | | | | | | |
Industrial Conglomerates – 0.2% | | | | | | | | | | | | |
WESCO International, Inc. Series A 10.625%(b) | | | | | | | 211,900 | | | | 5,763,680 | |
| | | | | | | | | | | | |
| | | |
Industrial – 0.1% | | | | | | | | | | | | |
Energy – 0.1% | | | | | | | | | | | | |
Gulfport Energy Corp. 10.00%(b)(e) | | | | | | | 789 | | | | 4,734,000 | |
| | | | | | | | | | | | |
| | | |
Total Preferred Stocks (cost $6,361,031) | | | | | | | | | | | 10,497,680 | |
| | | | | | | | | | | | |
| | |
| |
62 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| | | | | Principal Amount (000) | | | U.S. $ Value | |
| |
INFLATION-LINKED SECURITIES – 0.3% | | | | | | | | | | | | |
Colombia – 0.3% | | | | | | | | | | | | |
Fideicomiso PA Concesion Ruta al Mar 6.75%, 02/15/2044(t) | | | COP | | | | 14,562,910 | | | $ | 1,891,343 | |
Fideicomiso PA Costera 6.25%, 01/15/2034(a) | | | | | | | 7,580,000 | | | | 1,525,070 | |
Fideicomiso PA Pacifico Tres 7.00%, 01/15/2035(g) | | | | | | | 36,247,335 | | | | 6,905,357 | |
| | | | | | | | | | | | |
| | | |
Total Inflation-Linked Securities (cost $18,037,584) | | | | | | | | | | | 10,321,770 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
ASSET-BACKED SECURITIES – 0.1% | | | | | | | | | | | | |
Other ABS - Fixed Rate – 0.1% | | | | | | | | | | | | |
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-7, Class PT 3.74%, 06/15/2043(g) | | | U.S.$ | | | | 18 | | | | 16,650 | |
Series 2019-24, Class PT 10.824%, 08/15/2044(g) | | | | | | | 187 | | | | 180,622 | |
Series 2019-36, Class PT 12.926%, 10/17/2044(g) | | | | | | | 355 | | | | 345,475 | |
Series 2019-43, Class PT (62.813)%, 11/15/2044(g) | | | | | | | 1 | | | | 1,292 | |
Consumer Loan Underlying Bond Club Certificate Issuer Trust I Series 2018-12, Class PT 7.704%, 06/15/2043(g) | | | | | | | 23 | | | | 22,554 | |
Series 2018-4, Class PT (2.219)%, 05/15/2043(g) | | | | | | | 6 | | | | 5,623 | |
Consumer Loan Underlying Bond Credit Trust Series 2018-3, Class PT 0.00%, 03/16/2043(g) | | | | | | | 3 | | | | 2,838 | |
Pagaya AI Debt Trust Series 2022-6, Class A 11.00%, 05/15/2030(a) | | | | | | | 2,326 | | | | 2,337,309 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,912,363 | |
| | | | | | | | | | | | |
Autos - Fixed Rate – 0.0% | | | | | | | | | | | | |
Flagship Credit Auto Trust Series 2019-1, Class E 5.06%, 06/15/2026(a) | | | | | | | 791 | | | | 763,503 | |
| | | | | | | | | | | | |
| | | |
Total Asset-Backed Securities (cost $3,705,740) | | | | | | | | | | | 3,675,866 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 63 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
Company | | | | | Shares | | | U.S. $ Value | |
| |
RIGHTS – 0.0% | | | | | | | | | | | | |
Vistra Energy Corp., expiring 12/31/2049(b)(e) (cost $0) | | | | | | | 45,881 | | | $ | 53,910 | |
| | | | | | | | | | | | |
| | | |
| | | | | Principal Amount (000) | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.0% | | | | | | | | | | | | |
Netherlands – 0.0% | | | | | | | | | | | | |
SNS Bank NV Series E 11.25%, 12/31/2049(b)(c)(e)(m) (cost $1,373,314) | | | EUR | | | | 1,001 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
SHORT-TERM INVESTMENTS – 1.1% | | | | | | | | | | | | |
Time Deposits – 0.6% | | | | | | | | | | | | |
BBH, Grand Cayman 3.31%, 05/01/2023 | | | CAD | | | | 76 | | | | 56,162 | |
5.91%, 05/02/2023 | | | ZAR | | | | 0 | ** | | | 13 | |
Citibank, London 1.92%, 05/02/2023 | | | EUR | | | | 6,368 | | | | 7,016,653 | |
Citibank, New York 4.18%, 05/01/2023 | | | U.S.$ | | | | 12,039 | | | | 12,038,530 | |
SEB, Stockholm 3.14%, 05/02/2023 | | | GBP | | | | 2 | | | | 2,564 | |
| | | | | | | | | | | | |
| | | |
Total Time Deposits (cost $19,113,922) | | | | | | | | | | | 19,113,922 | |
| | | | | | | | | | | | |
| | | |
| | | | | Shares | | | | |
Investment Companies – 0.5% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.74%(u)(v)(w) (cost $14,745,323) | | | | | | | 14,745,323 | | | | 14,745,323 | |
| | | | | | | | | | | | |
| | | |
Total Short-Term Investments (cost $33,859,245) | | | | | | | | | | | 33,859,245 | |
| | | | | | | | | | | | |
| | | |
Total Investments – 99.8% (cost $3,545,086,067) | | | | | | | | | | | 3,060,832,098 | |
Other assets less liabilities – 0.2% | | | | | | | | | | | 7,348,853 | |
| | | | | | | | | | | | |
| | | |
Net Assets – 100.0% | | | | | | | | | | $ | 3,068,180,951 | |
| | | | | | | | | | | | |
| | |
| |
64 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
FUTURES (see Note D)
| | | | | | | | | | | | | | | | |
Description | | Number of Contracts | | | Expiration Month | | | Current Notional | | | Value and Unrealized Appreciation (Depreciation) | |
Purchased Contracts | |
U.S. Long Bond (CBT) Futures | | | 63 | | | | June 2023 | | | $ | 8,294,344 | | | $ | 338,445 | |
U.S. T-Note 5 Yr (CBT) Futures | | | 2,587 | | | | June 2023 | | | | 283,903,040 | | | | 6,211,892 | |
U.S. T-Note 10 Yr (CBT) Futures | | | 149 | | | | June 2023 | | | | 17,165,266 | | | | 519,906 | |
U.S. Ultra Bond (CBT) Futures | | | 157 | | | | June 2023 | | | | 22,200,781 | | | | 773,961 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 7,844,204 | |
| | | | | | | | | | | | | | | | |
FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Contracts to Deliver (000) | | | In Exchange For (000) | | | Settlement Date | | | Unrealized Appreciation (Depreciation) | |
Australia and New Zealand Banking Group Ltd. | | | USD | | | | 5,348 | | | | EUR | | | | 5,051 | | | | 05/11/2023 | | | $ | 221,313 | |
Bank of America, NA | | | EUR | | | | 158,771 | | | | USD | | | | 168,991 | | | | 05/11/2023 | | | | (6,057,398 | ) |
BNP Paribas SA | | | USD | | | | 10,416 | | | | EUR | | | | 9,767 | | | | 05/11/2023 | | | | 351,910 | |
Citibank, NA | | | EUR | | | | 5,700 | | | | USD | | | | 6,099 | | | | 05/11/2023 | | | | (185,068 | ) |
Citibank, NA | | | USD | | | | 14,795 | | | | EUR | | | | 13,780 | | | | 05/11/2023 | | | | 398,420 | |
HSBC Bank USA | | | EUR | | | | 2,965 | | | | USD | | | | 3,209 | | | | 05/11/2023 | | | | (60,180 | ) |
JPMorgan Chase Bank, NA | | | EUR | | | | 3,119 | | | | USD | | | | 3,424 | | | | 05/11/2023 | | | | (15,593 | ) |
JPMorgan Chase Bank, NA | | | USD | | | | 12,049 | | | | EUR | | | | 11,305 | | | | 05/11/2023 | | | | 415,449 | |
Morgan Stanley Capital Services LLC | | | USD | | | | 11,700 | | | | EUR | | | | 10,857 | | | | 05/11/2023 | | | | 270,182 | |
Morgan Stanley Capital Services LLC | | | COP | | | | 65,115,083 | | | | USD | | | | 13,473 | | | | 05/17/2023 | | | | (333,977 | ) |
Morgan Stanley Capital Services LLC | | | GBP | | | | 12,051 | | | | USD | | | | 14,764 | | | | 05/24/2023 | | | | (389,560 | ) |
UBS AG | | | USD | | | | 6,617 | | | | EUR | | | | 6,117 | | | | 05/11/2023 | | | | 126,591 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | (5,257,911 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Fixed Rate (Pay) Receive | | | Payment Frequency | | | Implied Credit Spread at April 30, 2023 | | | Notional Amount (000) | | | Market Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | |
Sale Contracts | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-NAHY Series 40, 5 Year Index, 06/20/2028* | | | 5.00 | % | | | Quarterly | | | | 4.65 | % | | | USD 92,796 | | | $ | 1,828,265 | | | $ | 695,180 | | | $ | 1,133,085 | |
iTraxx Europe Crossover Series 39, 5 Year Index, 06/20/2028* | | | 5.00 | | | | Quarterly | | | | 4.34 | | | | EUR 14,870 | | | | 526,967 | | | | (71,242 | ) | | | 598,209 | |
| | | | | | | | | | | | | |
| | | $ | 2,355,232 | | | $ | 623,938 | | | $ | 1,731,294 | |
| | | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 65 |
PORTFOLIO OF INVESTMENTS (continued)
CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Swap Counterparty & Referenced Obligation | | Fixed Rate (Pay) Receive | | | Payment Frequency | | | Implied Credit Spread at April 30, 2023 | | | Notional Amount (000) | | | Market Value | | | Upfront Premiums Paid (Received) | | | Unrealized Appreciation (Depreciation) | |
Sale Contracts | |
Citigroup Global Markets, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | % | | | Monthly | | | | 7.50 | % | | | USD | | | | 2,146 | | | $ | (443,106 | ) | | $ | (734,832 | ) | | $ | 291,726 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 2,125 | | | | (438,675 | ) | | | (252,501 | ) | | | (186,174 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 3,503 | | | | (723,093 | ) | | | (407,944 | ) | | | (315,149 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 5,005 | | | | (1,033,023 | ) | | | (580,603 | ) | | | (452,420 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 8,988 | | | | (1,855,095 | ) | | | (1,051,987 | ) | | | (803,108 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 22,890 | | | | (4,724,552 | ) | | | (2,507,300 | ) | | | (2,217,252 | ) |
Credit Suisse International | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 141 | | | | (29,174 | ) | | | (16,285 | ) | | | (12,889 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 4,326 | | | | (892,940 | ) | | | (495,211 | ) | | | (397,729 | ) |
Deutsche Bank AG | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 1,371 | | | | (283,111 | ) | | | (148,246 | ) | | | (134,865 | ) |
Goldman Sachs International | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023* | | | 5.00 | | | | Quarterly | | | | 0.93 | | | | USD | | | | 1,300 | | | | 40,908 | | | | 10,724 | | | | 30,184 | |
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023* | | | 5.00 | | | | Quarterly | | | | 0.93 | | | | USD | | | | 1,440 | | | | 45,314 | | | | 18,590 | | | | 26,724 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 321 | | | | (66,262 | ) | | | (80,461 | ) | | | 14,199 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 642 | | | | (132,631 | ) | | | (138,581 | ) | | | 5,950 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 642 | | | | (132,631 | ) | | | (138,581 | ) | | | 5,950 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 321 | | | | (66,315 | ) | | | (67,068 | ) | | | 753 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 820 | | | | (169,257 | ) | | | (97,029 | ) | | | (72,228 | ) |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 15,315 | | | | (3,160,961 | ) | | | (2,041,715 | ) | | | (1,119,246 | ) |
JPMorgan Securities, LLC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 3,628 | | | | (748,841 | ) | | | (427,103 | ) | | | (321,738 | ) |
Morgan Stanley & Co. International PLC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 1,605 | | | | (331,577 | ) | | | (409,730 | ) | | | 78,153 | |
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | | | 3.00 | | | | Monthly | | | | 7.50 | | | | USD | | | | 1,605 | | | | (331,309 | ) | | | (379,955 | ) | | | 48,646 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | (15,476,331 | ) | | $ | (9,945,818 | ) | | $ | (5,530,513 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| |
66 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
TOTAL RETURN SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | |
Counterparty & Referenced Obligation | | Rate Paid/ Received | | | Payment Frequency | | | Current Notional (000) | | | Maturity Date | | | Unrealized Appreciation (Depreciation) | |
Receive Total Return on Reference Obligation | | | | | | | | | | | | | | | | | | | | |
Goldman Sachs International Markit iBoxx EUR Contingent Convertible Liquid Developed Market AT1 | |
| 3 Month EURIBOR | | | | Maturity | | | | EUR 26,513 | | | | 09/20/2023 | | | $ | 256,205 | |
REVERSE REPURCHASE AGREEMENTS (see Note D)
| | | | | | | | | | | | | | | | | | | | |
Broker | | Currency | | | Principal Amount (000) | | | Interest Rate | | | Maturity | | | U.S. $ Value at April 30, 2023 | |
Barclays Capital, Inc. | | | USD | | | | 10,008 | | | | (2.00 | )%* | | | 05/01/2023 | | | $ | 10,006,092 | |
Barclays Capital, Inc.† | | | USD | | | | 1,972 | | | | 1.00 | % | | | — | | | | 1,972,919 | |
Barclays Capital, Inc.† | | | USD | | | | 2,382 | | | | 4.00 | % | | | — | | | | 2,383,198 | |
Barclays Capital, Inc.† | | | USD | | | | 1,721 | | | | 2.00 | %* | | | — | | | | 1,720,805 | |
Barclays Capital, Inc.† | | | USD | | | | 272 | | | | 2.50 | % | | | — | | | | 270,980 | |
HSBC Securities (USA), Inc. | | | USD | | | | 11,693 | | | | 4.94 | % | | | 05/01/2023 | | | | 11,824,534 | |
HSBC Securities (USA), Inc.† | | | USD | | | | 4,349 | | | | 4.94 | % | | | — | | | | 4,349,025 | |
JPMorgan Securities PLC | | | EUR | | | | 716 | | | | 1.00 | % | | | — | | | | 789,533 | |
RBC Capital Markets† | | | USD | | | | 1,478 | | | | 0.50 | % | | | — | | | | 1,478,689 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 34,795,775 | |
| | | | | | | | | | | | | | | | | | | | |
† | The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on April 30, 2023. |
* | Interest payment due from counterparty. |
The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Overnight and Continuous | | | Up to 30 Days | | | 31-90 Days | | | Greater than 90 Days | | | Total | |
Corporates – Non-Investment Grade | | $ | 8,345,144 | | | $ | 10,006,092 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 18,351,236 | |
Emerging Markets – Corporate Bonds | | | 270,980 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 270,980 | |
Governments – Treasuries | | | 4,349,025 | | | | 11,824,534 | | | | – 0 | – | | | – 0 | – | | | 16,173,559 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 12,965,149 | | | $ | 21,830,626 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 34,795,775 | |
| | | | | | | | | | | | | | | | | | | | |
^ | Deemed an affiliated company as defined by the Investment Company Act of 1940 since the Fund owns 5% or more of the outstanding voting securities. |
** | Principal amount less than 500. |
(a) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 67 |
PORTFOLIO OF INVESTMENTS (continued)
| registration. At April 30, 2023, the aggregate market value of these securities amounted to $2,041,486,155 or 66.5% of net assets. |
(b) | Non-income producing security. |
(c) | Fair valued by the Adviser. |
(d) | Defaulted matured security. |
(e) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(f) | Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at April 30, 2023. |
(g) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.42% of net assets as of April 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows: |
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid Securities | | Acquisition Date | | | Cost | | | Market Value | | | Percentage of Net Assets | |
BBFI Liquidating Trust Zero Coupon, 12/30/2099 | |
| 02/04/2013 –
11/12/2019 |
| | $ | 1,857,055 | | | $ | 964,034 | | | | 0.03 | % |
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-7, Class PT 3.74%, 06/15/2043 | |
| 04/25/2018 –
06/01/2020 |
| | | 17,754 | | | | 16,650 | | | | 0.00 | % |
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-24, Class PT 10.824%, 08/15/2044 | | | 06/27/2019 | | | | 182,193 | | | | 180,622 | | | | 0.01 | % |
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-36, Class PT 12.926%, 10/17/2044 | | | 09/04/2019 | | | | 354,114 | | | | 345,475 | | | | 0.01 | % |
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT (62.813)%, 11/15/2044 | | | 10/09/2019 | | | | 1,448 | | | | 1,292 | | | | 0.00 | % |
Consumer Loan Underlying Bond Club Certificate Issuer Trust I Series 2018-4, Class PT (2.219)%, 05/15/2043 | |
| 03/27/2018 –
05/11/2018 |
| | | 5,856 | | | | 5,623 | | | | 0.00 | % |
Consumer Loan Underlying Bond Club Certificate Issuer Trust I Series 2018-12, Class PT 7.704%, 06/15/2043 | | | 06/26/2018 | | | | 23,497 | | | | 22,554 | | | | 0.00 | % |
Consumer Loan Underlying Bond Credit Trust Series 2018-3, Class PT 0.00%, 03/16/2043 | | | 03/07/2018 | | | | 3,048 | | | | 2,838 | | | | 0.00 | % |
Digicel Group Holdings Ltd. 7.00%, 05/15/2023 | |
| 11/28/2016 –
04/01/2021 |
| | | 767,097 | | | | 78,775 | | | | 0.00 | % |
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024 | | | 10/29/2020 | | | | – 0 | – | | | – 0 | – | | | 0.00 | % |
Exide Technologies (First Lien) 11.00%, 10/31/2024 | | | 10/29/2020 | | | | – 0 | – | | | – 0 | – | | | 0.00 | % |
| | |
| |
68 | AB HIGH INCOME FUND | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid Securities | | Acquisition Date | | | Cost | | | Market Value | | | Percentage of Net Assets | |
Fideicomiso PA Pacifico Tres 7.00%, 01/15/2035 | | | 03/04/2016 | | | $ | 10,766,088 | | | $ | 6,905,357 | | | | 0.23 | % |
Intelsat Jackson Holdings SA 9.75%, 07/15/2025 | |
| 06/21/2017 –
11/20/2017 |
| | | – 0 | – | | | – 0 | – | | | 0.00 | % |
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 10.52%, 10/25/2025 | | | 09/18/2015 | | | | 2,149,969 | | | | 2,099,417 | | | | 0.07 | % |
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018 | | | 05/15/2018 | | | | 12,955,187 | | | | – 0 | – | | | 0.00 | % |
Tonon Luxembourg SA 6.50%, 10/31/2024 | |
| 05/03/2019 –
10/31/2020 |
| | | 4,733,143 | | | | 244 | | | | 0.00 | % |
VTR Finance NV 6.375%, 07/15/2028 | | | 06/24/2020 | | | | 632,000 | | | | 199,199 | | | | 0.01 | % |
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018 | |
| 10/19/2012 –
02/27/2014 |
| | | 8,550,341 | | | | 1,367 | | | | 0.00 | % |
Virgolino de Oliveira Finance SA 10.875%, 01/13/2020 | | | 06/09/2014 | | | | 2,486,550 | | | | 250 | | | | 0.00 | % |
Virgolino de Oliveira Finance SA 11.75%, 02/09/2022 | |
| 07/26/2012 –
02/05/2014 |
| | | 11,383,331 | | | | 1,361 | | | | 0.00 | % |
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 10.27%, 11/25/2025 | | | 09/06/2016 | | | | 1,442,467 | | | | 1,343,328 | | | | 0.04 | % |
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 2M2 10.52%, 11/25/2025 | |
| 09/28/2015 –
02/26/2018 |
| | | 709,657 | | | | 675,480 | | | | 0.02 | % |
(h) | Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at April 30, 2023. |
(k) | Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements. |
(l) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2023. |
(m) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
(n) | The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the SOFR/PRIME or the LIBOR/SOFR/PRIME floor rate plus spread April 30, 2023. |
(o) | This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase. |
(p) | Inverse interest only security. |
(q) | Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding. |
(r) | Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps. |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 69 |
PORTFOLIO OF INVESTMENTS (continued)
(t) | Restricted and illiquid security. |
| | | | | | | | | | | | | | | | |
Restricted & Illiquid Securities | | Acquisition Date | | | Cost | | | Market Value | | | Percentage of Net Assets | |
Fideicomiso PA Concesion Ruta al Mar 6.75%, 02/15/2044 | | | 12/14/2017 | | | $ | 4,831,107 | | | $ | 1,891,343 | | | | 0.06 | % |
(u) | 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. |
(v) | The rate shown represents the 7-day yield as of period end. |
(w) | Affiliated investments. |
Currency Abbreviations:
CAD – Canadian Dollar
COP – Colombian Peso
EUR – Euro
GBP – Great British Pound
USD – United States Dollar
ZAR – South African Rand
Glossary:
ABS – Asset-Backed Securities
CBT – Chicago Board of Trade
CDX-CMBX.NA – North American Commercial Mortgage-Backed Index
CDX-NAHY – North American High Yield Credit Default Swap Index
CLO – Collateralized Loan Obligations
CMBS – Commercial Mortgage-Backed Securities
EURIBOR – Euro Interbank Offered Rate
LIBOR – London Interbank Offered Rate
REIT – Real Estate Investment Trust
SOFR – Secured Overnight Financing Rate
See notes to financial statements.
| | |
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70 | AB HIGH INCOME FUND | | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
April 30, 2023 (unaudited)
| | | | |
Assets | | | | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $3,525,087,681) | | $ | 3,045,713,451 | |
Affiliated issuers (cost $19,998,386) | | | 15,118,647 | |
Cash | | | 39,702 | |
Cash collateral due from broker | | | 19,931,811 | |
Foreign currencies, at value (cost $4,055,522) | | | 1,389,029 | |
Unaffiliated interest receivable | | | 48,820,001 | |
Receivable for unsettled reverse repurchase agreements | | | 20,357,897 | |
Receivable for capital stock sold | | | 7,287,068 | |
Receivable for investment securities sold | | | 6,510,468 | |
Unrealized appreciation on forward currency exchange contracts | | | 1,783,865 | |
Receivable for variation margin on futures | | | 1,135,054 | |
Receivable for variation margin on centrally cleared swaps | | | 317,149 | |
Unrealized appreciation on total return swaps | | | 256,205 | |
Market value of credit default swaps (net premiums paid $29,314) | | | 86,222 | |
Affiliated dividends receivable | | | 68,457 | |
| | | | |
Total assets | | | 3,168,815,026 | |
| | | | |
Liabilities | | | | |
Payable for reverse repurchase agreements | | | 34,795,775 | |
Payable for unsettled reverse repurchase agreements | | | 16,085,541 | |
Market value of credit default swaps (net premiums received $9,975,132) | | | 15,562,553 | |
Payable for investment securities purchased | | | 10,616,052 | |
Payable for capital stock redeemed | | | 8,773,556 | |
Unrealized depreciation on forward currency exchange contracts | | | 7,041,776 | |
Payable for capital gains taxes | | | 3,215,068 | |
Dividends payable | | | 2,075,350 | |
Advisory fee payable | | | 1,149,484 | |
Distribution fee payable | | | 313,134 | |
Transfer Agent fee payable | | | 179,040 | |
Administrative fee payable | | | 19,945 | |
Directors’ fee payable | | | 324 | |
Accrued expenses | | | 806,477 | |
| | | | |
Total liabilities | | | 100,634,075 | |
| | | | |
Net Assets | | $ | 3,068,180,951 | |
| | | | |
Composition of Net Assets | | | | |
Capital stock, at par | | $ | 463,283 | |
Additional paid-in capital | | | 4,242,120,893 | |
Accumulated loss | | | (1,174,403,225 | ) |
| | | | |
| | $ | 3,068,180,951 | |
| | | | |
See notes to financial statements.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 71 |
STATEMENT OF ASSETS & LIABILITIES (continued)
Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value
| | | | | | | | | | | | |
Class | | Net Assets | | | Shares Outstanding | | | Net Asset Value | |
| |
A | | $ | 845,948,752 | | | | 127,960,345 | | | $ | 6.61 | * |
| |
C | | $ | 185,513,702 | | | | 27,730,577 | | | $ | 6.69 | |
| |
Advisor | | $ | 1,831,461,983 | | | | 276,614,465 | | | $ | 6.62 | |
| |
R | | $ | 19,264,231 | | | | 2,912,302 | | | $ | 6.61 | |
| |
K | | $ | 5,401,934 | | | | 816,395 | | | $ | 6.62 | |
| |
I | | $ | 68,683,359 | | | | 10,362,793 | | | $ | 6.63 | |
| |
Z | | $ | 111,906,990 | | | | 16,886,361 | | | $ | 6.63 | |
| |
* | The maximum offering price per share for Class A shares was $6.90 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
72 | AB HIGH INCOME FUND | | abfunds.com |
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2023 (unaudited)
| | | | | | | | |
Investment Income | | | | | | | | |
Interest | | $ | 120,955,298 | | | | | |
Dividends | | | | | | | | |
Unaffiliated issuers | | | 1,178,360 | | | | | |
Affiliated issuers | | | 347,861 | | | $ | 122,481,519 | |
| | | | | | | | |
Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 7,548,377 | | | | | |
Distribution fee—Class A | | | 1,063,242 | | | | | |
Distribution fee—Class C | | | 963,357 | | | | | |
Distribution fee—Class R | | | 49,317 | | | | | |
Distribution fee—Class K | | | 6,879 | | | | | |
Transfer agency—Class A | | | 344,435 | | | | | |
Transfer agency—Class C | | | 78,250 | | | | | |
Transfer agency—Advisor Class | | | 732,428 | | | | | |
Transfer agency—Class R | | | 25,645 | | | | | |
Transfer agency—Class K | | | 5,503 | | | | | |
Transfer agency—Class I | | | 35,357 | | | | | |
Transfer agency—Class Z | | | 14,650 | | | | | |
Audit and tax | | | 100,391 | | | | | |
Printing | | | 97,331 | | | | | |
Registration fees | | | 94,492 | | | | | |
Custody and accounting | | | 75,081 | | | | | |
Administrative | | | 44,253 | | | | | |
Legal | | | 30,744 | | | | | |
Directors’ fees | | | 29,528 | | | | | |
Miscellaneous | | | 40,433 | | | | | |
| | | | | | | | |
Total expenses before interest expense | | | 11,379,693 | | | | | |
Interest expense | | | 858,493 | | | | | |
| | | | | | | | |
Total expenses | | | 12,238,186 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (8,409 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 12,229,777 | |
| | | | | | | | |
Net investment income | | | | | | | 110,251,742 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 73 |
STATEMENT OF OPERATIONS (continued)
| | | | | | | | |
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized Gain (Loss) on: | | | | | | | | |
Investment transactions(a) | | | | | | $ | (106,452,783 | ) |
Forward currency exchange contracts | | | | | | | (12,884,824 | ) |
Futures | | | | | | | (16,108,182 | ) |
Swaps | | | | | | | 7,366,396 | |
Foreign currency transactions | | | | | | | (7,240,216 | ) |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | |
Affiliated Issuers | | | | | | | (190,695 | ) |
Investments(b) | | | | | | | 205,601,086 | |
Forward currency exchange contracts | | | | | | | (4,328,739 | ) |
Futures | | | | | | | 25,587,790 | |
Swaps | | | | | | | 2,055,798 | |
Foreign currency denominated assets and liabilities | | | | | | | (192,915 | ) |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 93,212,716 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 203,464,458 | |
| | | | | | | | |
(a) | Net of foreign realized capital gains taxes of $352,787. |
(b) | Net of increase in accrued foreign capital gains taxes on unrealized gains of $52,700. |
See notes to financial statements.
| | |
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74 | AB HIGH INCOME FUND | | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, 2022 | |
Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 110,251,742 | | | $ | 214,076,955 | |
Net realized loss on investment and foreign currency transactions | | | (135,319,609 | ) | | | (124,326,929 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities | | | 228,532,325 | | | | (642,519,916 | ) |
Contributions from Affiliates (see Note B) | | | – 0 | – | | | 1,542 | |
| | | | | | | | |
Net increase (decrease) in net assets from operations | | | 203,464,458 | | | | (552,768,348 | ) |
Distributions to Shareholders | | | | | | | | |
Class A | | | (34,090,105 | ) | | | (63,807,361 | ) |
Class C | | | (6,909,082 | ) | | | (14,384,272 | ) |
Advisor Class | | | (74,566,908 | ) | | | (142,205,592 | ) |
Class R | | | (748,210 | ) | | | (1,457,716 | ) |
Class K | | | (217,689 | ) | | | (1,023,882 | ) |
Class I | | | (2,819,319 | ) | | | (5,310,765 | ) |
Class Z | | | (5,532,247 | ) | | | (13,300,188 | ) |
Capital Stock Transactions | | | | | | | | |
Net decrease | | | (67,373,183 | ) | | | (637,925,886 | ) |
| | | | | | | | |
Total increase (decrease) | | | 11,207,715 | | | | (1,432,184,010 | ) |
Net Assets | | | | | | | | |
Beginning of period | | | 3,056,973,236 | | | | 4,489,157,246 | |
| | | | | | | | |
End of period | | $ | 3,068,180,951 | | | $ | 3,056,973,236 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 75 |
NOTES TO FINANCIAL STATEMENTS
April 30, 2023 (unaudited)
NOTE A
Significant Accounting Policies
AB High Income Fund, Inc. (the “Fund”) is organized as a Maryland corporation and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund offers Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares. Class B and Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.
1. Security Valuation
Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Fund’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.
| | |
| |
76 | AB HIGH INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.
Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 77 |
NOTES TO FINANCIAL STATEMENTS (continued)
contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.
2. Fair Value Measurements
In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
| • | | Level 1—quoted prices in active markets for identical investments |
| • | | Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | | Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and
| | |
| |
78 | AB HIGH INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.
Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.
Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.
Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.
Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate
| | |
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abfunds.com | | AB HIGH INCOME FUND | 79 |
NOTES TO FINANCIAL STATEMENTS (continued)
issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of April 30, 2023:
| | | | | | | | | | | | | | | | |
Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Corporates – Non-Investment Grade | | $ | – 0 | – | | $ | 1,714,752,616 | | | $ | 903,863 | # | | $ | 1,715,656,479 | |
Corporates – Investment Grade | | | – 0 | – | | | 422,238,325 | | | | – 0 | – | | | 422,238,325 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | 195,359,165 | | | | 967,012 | # | | | 196,326,177 | |
Bank Loans | | | – 0 | – | | | 151,598,166 | | | | 26,618,788 | | | | 178,216,954 | |
Collateralized Mortgage Obligations | | | – 0 | – | | | 149,002,268 | | | | – 0 | – | | | 149,002,268 | |
Collateralized Loan Obligations | | | – 0 | – | | | 102,637,473 | | | | – 0 | – | | | 102,637,473 | |
Emerging Markets – Sovereigns | | | – 0 | – | | | 88,816,537 | | | | – 0 | – | | | 88,816,537 | |
Governments – Treasuries | | | – 0 | – | | | 60,045,627 | | | | – 0 | – | | | 60,045,627 | |
Common Stocks | | | 10,090,714 | | | | – 0 | – | | | 26,456,277 | # | | | 36,546,991 | |
Quasi-Sovereigns | | | – 0 | – | | | 27,820,944 | | | | – 0 | – | | | 27,820,944 | |
Local Governments – US Municipal Bonds | | | – 0 | – | | | 14,039,047 | | | | – 0 | – | | | 14,039,047 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 11,076,805 | | | | – 0 | – | | | 11,076,805 | |
Preferred Stocks | | | 5,763,680 | | | | – 0 | – | | | 4,734,000 | | | | 10,497,680 | |
Inflation-Linked Securities | | | – 0 | – | | | 10,321,770 | | | | – 0 | – | | | 10,321,770 | |
Asset-Backed Securities | | | – 0 | – | | | 3,675,866 | | | | – 0 | – | | | 3,675,866 | |
Rights | | | – 0 | – | | | – 0 | – | | | 53,910 | | | | 53,910 | |
Governments – Sovereign Bonds | | | – 0 | – | | | – 0 | – | | | 0 | # | | | – 0 | – |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Time Deposits | | | – 0 | – | | | 19,113,922 | | | | – 0 | – | | | 19,113,922 | |
Investment Companies | | | 14,745,323 | | | | – 0 | – | | | – 0 | – | | | 14,745,323 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 30,599,717 | | | | 2,970,498,531 | | | | 59,733,850 | | | | 3,060,832,098 | |
Other Financial Instruments*: | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | |
Futures | | | 7,844,204 | | | | – 0 | – | | | – 0 | – | | | 7,844,204 | † |
Forward Currency Exchange Contracts | | | – 0 | – | | | 1,783,865 | | | | – 0 | – | | | 1,783,865 | |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | 2,355,232 | | | | – 0 | – | | | 2,355,232 | † |
Credit Default Swaps | | | – 0 | – | | | 86,222 | | | | – 0 | – | | | 86,222 | |
Total Return Swaps | | | – 0 | – | | | 256,205 | | | | – 0 | – | | | 256,205 | |
| | |
| |
80 | AB HIGH INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | |
Investments in Securities | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Liabilities | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | $ | – 0 | – | | $ | (7,041,776 | ) | | $ | – 0 | – | | $ | (7,041,776 | ) |
Credit Default Swaps | | | – 0 | – | | | (15,562,553 | ) | | | – 0 | – | | | (15,562,553 | ) |
Reverse Repurchase Agreements | | | (34,795,775 | ) | | | – 0 | – | | | – 0 | – | | | (34,795,775 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,648,146 | | | $ | 2,952,375,726 | | | $ | 59,733,850 | | | $ | 3,015,757,722 | |
| | | | | | | | | | | | | | | | |
# | The Fund held securities with zero market value at period end. |
* | Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation (depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, written options and written swaptions which are valued at market value. |
† | Only variation margin receivable (payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation (depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value. |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.
| | | | | | | | | | | | | | | | |
| | Corporates - Non-Investment Grade# | | | Emerging Markets - Corporate Bonds# | | | Bank Loans | | | Common Stocks# | |
Balance as of 10/31/22 | | $ | 903,863 | | | $ | 1,307,709 | | | $ | 26,419,137 | | | $ | 12,067,358 | |
Accrued discounts/ (premiums) | | | – 0 | – | | | 1,892 | | | | – 0 | – | | | – 0 | – |
Realized gain (loss) | | | – 0 | – | | | – 0 | – | | | (317,666 | ) | | | 88,519 | |
Change in unrealized appreciation (depreciation) | | | – 0 | – | | | (342,589 | ) | | | 2,242,512 | | | | 629,343 | |
Purchases | | | – 0 | – | | | – 0 | – | | | 4,236,350 | | | | – 0 | – |
Sales | | | – 0 | – | | | – 0 | – | | | (15,629,443 | ) | | | (88,702 | ) |
Transfers into Level 3 | | | – 0 | – | | | – 0 | – | | | 21,283,831 | | | | 13,759,759 | |
Transfers out of Level 3 | | | – 0 | – | | | – 0 | – | | | (11,615,933 | ) | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Balance as of 04/30/23 | | $ | 903,863 | | | $ | 967,012 | | | $ | 26,618,788 | | | $ | 26,456,277 | |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/23* | | $ | – 0 | – | | $ | (342,589 | ) | | $ | 1,179,093 | | | $ | 629,343 | |
| | | | | | | | | | | | | | | | |
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 81 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | |
| | Preferred Stocks | | | Asset- Backed Securities | | | Rights | | | Governments - Sovereign Bonds# | |
Balance as of 10/31/22 | | $ | 4,734,000 | | | $ | 158,281 | | | $ | 51,616 | | | $ | – 0 | – |
Accrued discounts/ (premiums) | | | – 0 | – | | | 2,967 | | | | – 0 | – | | | – 0 | – |
Realized gain (loss) | | | – 0 | – | | | 34,420 | | | | – 0 | – | | | – 0 | – |
Change in unrealized appreciation (depreciation) | | | – 0 | – | | | (32,346 | ) | | | 2,294 | | | | – 0 | – |
Sales/Paydowns | | | – 0 | – | | | (163,322 | ) | | | – 0 | – | | | – 0 | – |
Transfers into Level 3 | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Transfers out of Level 3 | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Balance as of 04/30/23 | | $ | 4,734,000 | | | $ | – 0 | – | | $ | 53,910 | | | $ | – 0 | – |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/23* | | $ | – 0 | – | | $ | – 0 | – | | $ | 2,294 | | | $ | – 0 | – |
| | | | | | | | | | | | | | | | |
| | | | |
| | Warrants | | | Total | | | | | | | |
Balance as of 10/31/22 | | $ | 4,585,073 | | | $ | 50,227,037 | | | | | | | | | |
Accrued discounts/ (premiums) | | | – 0 | – | | | 4,859 | | | | | | | | | |
Realized gain (loss) | | | (772,300 | ) | | | (967,027 | ) | | | | | | | | |
Change in unrealized appreciation (depreciation) | | | (3,812,773 | ) | | | (1,313,559 | ) | | | | | | | | |
Purchases | | | – 0 | – | | | 4,236,350 | | | | | | | | | |
Sales/Paydowns | | | – 0 | – | | | (15,881,467 | ) | | | | | | | | |
Transfers into Level 3 | | | – 0 | – | | | 35,043,590 | | | | | | | | | |
Transfers out of Level 3 | | | – 0 | – | | | (11,615,933 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance as of 04/30/23 | | $ | – 0 | – | | $ | 59,733,850 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) from investments held as of 04/30/23* | | $ | – 0 | – | | $ | 1,468,141 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
# | The Fund held securities with zero market value that were sold/expired/written off during the reporting period. |
* | The unrealized appreciation (depreciation) is included in net change in unrealized appreciation (depreciation) on investments and other financial instruments in the accompanying statement of operations. |
| | |
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82 | AB HIGH INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at April 30, 2023. Securities priced (i) by third party vendors, (ii) by brokers or (iii) using prior transaction prices, which approximates fair value, are excluded from the following table.
Quantitative Information about Level 3 Fair Value Measurements
| | | | | | | | | | |
| | Fair Value at 4/30/23 | | | Valuation Technique | | Unobservable Input | | Input |
Corporates – Non-Investment Grade | | $ | 903,863 | | | Recovery | | Discount Rate | | 20% |
| | $ | – 0 | – | | Qualitative Assessment | | Expected Sale Price | | $0.00 |
| | | | | | | | | | |
| | $ | 903,863 | | | | | | | |
| | | | | | | | | | |
Emerging Markets – Corporate Bonds | | $ | 964,034 | | | Recovery | | Expected Sale Price | | $44.55 |
| | | | | | | | | | |
| | $ | 964,034 | | | | | | | |
| | | | | | | | | | |
Common Stocks | | $ | 2,300,859 | | | NAV Calculation | | Catastrophe Claims | | $899.71 |
| | $ | 1,618,000 | | | Guideline Public Company and Optional Value | | Volatility | | 30% |
| | $ | 5 | | | Qualitative Assessment | �� | Expected Sale Price | | $0.00 |
| | $ | – 0 | – | | Qualitative Assessment | | Expected Sale Price | | $0.00 |
| | | | | | | | | | |
| | $ | 3,918,864 | | | | | | | |
| | | | | | | | | | |
Governments – Sovereign Bonds | | $ | – 0 | – | | Qualitative Assessment | | Expected Sale Price | | $0.00 |
Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in Discount Rate, Expected Sale Price, Trade Price, Catastrophe Claims and Volatility in isolation would be expected to result in a significantly higher (lower) fair value measurement.
3. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 83 |
NOTES TO FINANCIAL STATEMENTS (continued)
Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.
4. Taxes
It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.
5. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
6. Class Allocations
All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.
7. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly.
Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the six months ended April 30, 2023, the reimbursement for such services amounted to $44,253.
The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $363,947 for the six months ended April 30, 2023.
AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $16,926 from the sale of Class A shares and received $455 and $2,887 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the six months ended April 30, 2023.
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the six months ended April 30, 2023, such waiver amounted to $8,409.
A summary of the Fund’s transactions in affiliated issuers for the six months ended April 30, 2023 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value 10/31/22 (000) | | | Purchases at Cost (000) | | | Sales Proceeds (000) | | | Realized Gain (000) | | | Change in Unrealized Appr. (Depr.) (000) | | | Market Value 4/30/23 (000) | | | Dividend Income (000) | |
Government Money Market Portfolio | | $ | 10,097 | | | $ | 512,679 | | | $ | 508,031 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 14,745 | | | $ | 348 | |
Golden Energy Offshore Services AS | | | 564 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (191 | ) | | | 373 | | | | – 0 | – |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | – 0 | – | | $ | (191 | ) | | $ | 15,118 | | | $ | 348 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
During the year ended October 31, 2022, the Adviser reimbursed the Fund $1,542 for trading losses incurred due to trade entry errors.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on Advisor Class, Class I and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily
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NOTES TO FINANCIAL STATEMENTS (continued)
net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $19,996,487, $1,346,538 and $1,438,771 for Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023, were as follows:
| | | | | | | | |
| | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 532,587,721 | | | $ | 665,864,056 | |
U.S. government securities | | | 53,875,780 | | | | 75,547,117 | |
The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Gross unrealized appreciation | | $ | 64,392,778 | |
Gross unrealized depreciation | | | (549,603,468 | ) |
| | | | |
Net unrealized depreciation | | $ | (485,210,690 | ) |
| | | | |
1. Derivative Financial Instruments
The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.
The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:
| • | | Forward Currency Exchange Contracts |
The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and
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abfunds.com | | AB HIGH INCOME FUND | 87 |
NOTES TO FINANCIAL STATEMENTS (continued)
sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.
A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.
During the six months ended April 30, 2023, the Fund held forward currency exchange contracts for hedging purposes.
The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.
At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a
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NOTES TO FINANCIAL STATEMENTS (continued)
realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.
Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the six months ended April 30, 2023, the Fund held futures for hedging and non-hedging purposes.
The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures including by making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.
Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.
Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.
At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.
Credit Default Swaps:
The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligation with the same counterparty.
Credit default swaps may involve greater risks than if the Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.
Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/ performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.
During the six months ended April 30, 2023, the Fund held credit default swaps for non-hedging purposes.
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NOTES TO FINANCIAL STATEMENTS (continued)
Total Return Swaps:
The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.
During the six months ended April 30, 2023, the Fund held total return swaps for non-hedging purposes.
The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.
The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty tables below for additional details.
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NOTES TO FINANCIAL STATEMENTS (continued)
During the six months ended April 30, 2023, the Fund had entered into the following derivatives:
| | | | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivative Type | | Statement of Assets and Liabilities Location | | Fair Value | | | Statement of Assets and Liabilities Location | | | Fair Value | |
Interest rate contracts | | Receivable for variation margin on futures | | $ | 7,844,204 | * | | | | | | | | |
| | | | |
Foreign currency contracts | | Unrealized appreciation on forward currency exchange contracts | |
| 1,783,865 | | |
| Unrealized depreciation on forward currency exchange contracts | | | $ | 7,041,776 | |
| | | | |
Credit contracts | | Market value of credit default swaps | | | 86,222 | | |
| Market value of credit default swaps | | | | 15,562,553 | |
| | | | |
Credit contracts | | Receivable for variation margin on centrally cleared swaps | | | 1,731,294 | * | | | | | | | | |
| | | | |
Credit contracts | | Unrealized appreciation on total return swaps | | | 256,205 | | | | | | | | | |
| | | | | | | | | | | | | | |
Total | | | | $ | 11,701,790 | | | | | | | $ | 22,604,329 | |
| | | | | | | | | | | | | | |
* | Only variation margin receivable (payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation (depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. |
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | |
Derivative Type | | Location of Gain or (Loss) on Derivatives Within Statement of Operations | | Realized Gain or (Loss) on Derivatives | | | Change in Unrealized Appreciation or (Depreciation) | |
Interest rate contracts | | Net realized gain/(loss) on futures; Net change in unrealized appreciation (depreciation) on futures | | $ | (16,108,182 | ) | | $ | 25,587,790 | |
| | | |
Foreign currency contracts | | Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts | |
| (12,884,824 | ) | |
| (4,328,739 | ) |
| | | |
Credit contracts | | Net realized gain/(loss) on swaps; Net change in unrealized appreciation (depreciation) on swaps | | | 7,366,396 | | | | 2,055,798 | |
| | | | | | | | | | |
Total | | | | $ | (21,626,610 | ) | | $ | 23,314,849 | |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended April 30, 2023:
| | | | |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 106,099,749 | |
| |
Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 96,740,086 | |
| |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 25,213,831 | |
Average principal amount of sale contracts | | $ | 202,090,347 | |
| |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 320,708,297 | |
| |
Total Return Swaps: | | | | |
Average notional amount | | $ | 27,811,487 | |
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.
All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of April 30, 2023. Exchange-traded derivatives
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NOTES TO FINANCIAL STATEMENTS (continued)
and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Derivative Assets Subject to a MA | | | Derivatives Available for Offset | | | Cash Collateral Received* | | | Security Collateral Received* | | | Net Amount of Derivative Assets | |
Australia & New Zealand | | | | | | | | | | | | | | | | | | | | |
Bank Group Ltd | | $ | 221,313 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 221,313 | |
BNP Paribas SA. | | | 351,910 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 351,910 | |
Citibank, NA./Citigroup Global Markets, Inc | | | 398,420 | | | | (398,420 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Goldman Sachs International | | | 342,427 | | | | (342,427 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
JPMorgan Chase Bank, NA/JPMorgan Securties, LLC. | | | 415,449 | | | | (415,449 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Morgan Stanley Capital Services LLC/Morgan Stanley & Co. International PLC | | | 270,182 | | | | (270,182 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
UBS AG | | | 126,591 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 126,591 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 2,126,292 | | | $ | (1,426,478 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | 699,814 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Counterparty | | Derivative Liabilities Subject to a MA | | | Derivatives Available for Offset | | | Cash Collateral Pledged* | | | Security Collateral Pledged* | | | Net Amount of Derivative Liabilities | |
Bank of America, NA. | | $ | 6,057,398 | | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – | | $ | 6,057,398 | |
Citibank, NA./Citigroup Global Markets, Inc | | | 9,402,612 | | | | (398,420 | ) | | | (9,004,192 | ) | | | – 0 | – | | | – 0 | – |
Credit Suisse International | | | 922,114 | | | | – 0 | – | | | – 0 | – | | | (922,114 | ) | | | – 0 | – |
Deutsche Bank AG | | | 283,111 | | | | – 0 | – | | | (283,111 | ) | | | – 0 | – | | | – 0 | – |
Goldman Sachs International | | | 3,728,057 | | | | (342,427 | ) | | | (2,579,095 | ) | | | (685,609 | ) | | | 120,926 | |
HSBC Bank USA | | | 60,180 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 60,180 | |
JPMorgan Chase Bank, NA/JPMorgan Securties, LLC. | | | 764,434 | | | | (415,449 | ) | | | (180,000 | ) | | | (168,985 | ) | | | – 0 | – |
Morgan Stanley Capital Services LLC/Morgan Stanley & Co. International PLC | | | 1,386,423 | | | | (270,182 | ) | | | – 0 | – | | | (1,116,241 | ) | | | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 22,604,329 | | | $ | (1,426,478 | ) | | $ | (12,046,398 | ) | | $ | (2,892,949 | ) | | $ | 6,238,504 | ^ |
| | | | | | | | | | | | | | | | | | | | |
* | The actual collateral received/pledged may be more than the amount reported due to overcollateralization. |
^ | Net amount represents the net receivable (payable) that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty. |
| See Note D.3 for additional disclosure of netting arrangements regarding reverse repurchase agreements. |
| | |
| |
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NOTES TO FINANCIAL STATEMENTS (continued)
2. Currency Transactions
The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).
3. Reverse Repurchase Agreements
The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the six months ended April 30, 2023, the average amount of reverse repurchase agreements outstanding was $49,172,717 and the daily weighted average interest rate was 1.77%. At April 30, 2023, the Fund had reverse repurchase agreements outstanding in the amount of $34,795,775 as reported in the statement of assets and liabilities.
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NOTES TO FINANCIAL STATEMENTS (continued)
The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of April 30, 2023:
| | | | | | | | | | | | |
Counterparty | | RVP Liabilities Subject to a MRA | | | Securities Collateral Pledged†* | | | Net Amount of RVP Liabilities | |
Barclays Capital, Inc. | | $ | 16,353,994 | | | $ | (15,962,827 | ) | | $ | 391,167 | |
HSBC Securities (USA), Inc. | | | 16,173,559 | | | | (16,173,559 | ) | | | – 0 | – |
JPMorgan Securities PLC | | | 789,533 | | | | (789,533 | ) | | | – 0 | – |
RBC Capital Markets | | | 1,478,689 | | | | (1,478,689 | ) | | | – 0 | – |
| | | | | | | | | | | | |
| | $ | 34,795,775 | | | $ | (34,404,608 | ) | | $ | 391,167 | |
| | | | | | | | | | | | |
† | Including accrued interest. |
* | The actual collateral pledged may be more than the amount reported due to overcollateralization. |
NOTE E
Capital Stock
Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Shares | | | | | | Amount | | | | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, 2022 | | | | | | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, 2022 | | | | |
| | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 7,170,593 | | | | 15,905,777 | | | | | | | $ | 47,581,093 | | | $ | 114,246,772 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 3,076,063 | | | | 5,379,949 | | | | | | | | 20,370,399 | | | | 38,153,605 | | | | | |
| | | | | |
Shares converted from Class C | | | 2,165,836 | | | | 5,949,667 | | | | | | | | 14,322,369 | | | | 42,847,087 | | | | | |
| | | | | |
Shares redeemed | | | (17,154,192 | ) | | | (39,564,398 | ) | | | | | | | (113,430,928 | ) | | | (287,018,195 | ) | | | | |
| | | | | |
Net decrease | | | (4,741,700 | ) | | | (12,329,005 | ) | | | | | | $ | (31,157,067 | ) | | $ | (91,770,731 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,191,128 | | | | 2,841,916 | | | | | | | $ | 7,980,442 | | | $ | 20,677,368 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 532,924 | | | | 1,046,960 | | | | | | | | 3,571,843 | | | | 7,544,238 | | | | | |
| | | | | |
Shares converted to Class A | | | (2,140,023 | ) | | | (5,881,400 | ) | | | | | | | (14,322,369 | ) | | | (42,847,087 | ) | | | | |
| | | | | |
Shares redeemed | | | (2,537,678 | ) | | | (7,531,486 | ) | | | | | | | (16,995,536 | ) | | | (55,218,726 | ) | | | | |
| | | | | |
Net decrease | | | (2,953,649 | ) | | | (9,524,010 | ) | | | | | | $ | (19,765,620 | ) | | $ | (69,844,207 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 67,922,873 | | | | 98,562,595 | | | | | | | $ | 452,278,991 | | | $ | 705,569,610 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 6,118,416 | | | | 10,842,418 | | | | | | | | 40,577,421 | | | | 77,264,645 | | | | | |
| | | | | |
Shares redeemed | | | (69,507,355 | ) | | | (160,045,623 | ) | | | | | | | (459,128,332 | ) | | | (1,148,316,821 | ) | | | | |
| | | | | |
Net increase (decrease) | | | 4,533,934 | | | | (50,640,610 | ) | | | | | | $ | 33,728,080 | | | $ | (365,482,566 | ) | | | | |
| | | | | |
| | |
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abfunds.com | | AB HIGH INCOME FUND | 97 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Shares | | | | | | Amount | | | | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, 2022 | | | | | | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, 2022 | | | | |
| | | | | | | | |
Class R | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 228,852 | | | | 596,584 | | | | | | | $ | 1,521,168 | | | $ | 4,381,283 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 112,175 | | | | 204,455 | | | | | | | | 743,093 | | | | 1,453,535 | | | | | |
| | | | | |
Shares redeemed | | | (570,897 | ) | | | (1,772,955 | ) | | | | | | | (3,790,666 | ) | | | (13,313,101 | ) | | | | |
| | | | | |
Net decrease | | | (229,870 | ) | | | (971,916 | ) | | | | | | $ | (1,526,405 | ) | | $ | (7,478,283 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class K | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 98,768 | | | | 547,575 | | | | | | | $ | 656,303 | | | $ | 4,111,068 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 32,637 | | | | 135,766 | | | | | | | | 216,240 | | | | 1,012,782 | | | | | |
| | | | | |
Shares redeemed | | | (213,957 | ) | | | (4,593,538 | ) | | | | | | | (1,428,648 | ) | | | (34,469,579 | ) | | | | |
| | | | | |
Net decrease | | | (82,552 | ) | | | (3,910,197 | ) | | | | | | $ | (556,105 | ) | | $ | (29,345,729 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,125,309 | | | | 1,857,901 | | | | | | | $ | 7,459,725 | | | $ | 13,752,642 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 409,357 | | | | 717,028 | | | | | | | | 2,717,739 | | | | 5,098,333 | | | | | |
| | | | | |
Shares redeemed | | | (1,671,142 | ) | | | (3,437,334 | ) | | | | | | | (11,080,689 | ) | | | (24,866,171 | ) | | | | |
| | | | | |
Net decrease | | | (136,476 | ) | | | (862,405 | ) | | | | | | $ | (903,225 | ) | | $ | (6,015,196 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class Z | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 9,122,848 | | | | 19,078,479 | | | | | | | $ | 60,426,760 | | | $ | 139,258,177 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 777,738 | | | | 1,763,658 | | | | | | | | 5,161,134 | | | | 12,574,282 | | | | | |
| | | | | |
Shares redeemed | | | (17,040,045 | ) | | | (30,083,081 | ) | | | | | | | (112,780,735 | ) | | | (219,821,633 | ) | | | | |
| | | | | |
Net decrease | | | (7,139,459 | ) | | | (9,240,944 | ) | | | | | | $ | (47,192,841 | ) | | $ | (67,989,174 | ) | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.
Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.
Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.
Below Investment-Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) 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 and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.
Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.
Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.
Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.
Emerging-Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties.
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NOTES TO FINANCIAL STATEMENTS (continued)
Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.
Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.
Loan Participations and Assignments Risk—When the Fund purchases loan participations and assignments, it is subject to the credit risk associated with the underlying corporate borrower. In addition, the lack of a liquid secondary market for loan participations and assignments may have an adverse impact on the value of such investments and the Fund’s ability to dispose of particular assignments or participations when necessary to meet the Fund’s liquidity needs or in response to a specific economic event such as a deterioration in the creditworthiness of the borrower.
Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.
Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.
LIBOR Transition and Associated Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. As announced by the FCA and LIBOR’s administrator, ICE Benchmark Administration, most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) have not been published since the end of 2021, but the most widely used U.S. Dollar LIBOR settings are expected to continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the law by identifying benchmark rates based on SOFR that will replace LIBOR in different categories of financial contracts after June 30, 2023. The regulations include provisions that (i) provide a safe harbor for selection or use of a replacement benchmark rate selected by the Federal Reserve Board; (ii) clarify who may choose the replacement benchmark rate selected by the Federal Reserve Board; and (iii) ensure
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NOTES TO FINANCIAL STATEMENTS (continued)
that contracts adopting a replacement benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following the replacement of LIBOR.
The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or NAV. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.
Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.
Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are
| | |
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102 | AB HIGH INCOME FUND | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the six months ended April 30, 2023.
NOTE H
Distributions to Shareholders
The tax character of distributions paid for the year ending October 31, 2023 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:
| | | | | | | | |
| | 2022 | | | 2021 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 241,489,776 | | | $ | 271,920,110 | |
| | | | | | | | |
Total taxable distributions paid | | | 241,489,776 | | | | 271,920,110 | |
Return of Capital | | | – 0 | – | | | 25,829,922 | |
| | | | | | | | |
Total distributions paid | | $ | 241,489,776 | | | $ | 297,750,032 | |
| | | | | | | | |
As of April 30, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 11,173,503 | |
Accumulated capital and other losses | | | (536,269,027 | )(a) |
Unrealized appreciation (depreciation) | | | (704,019,746 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (1,229,115,270 | )(c) |
| | | | |
(a) | As of October 31, 2022, the Fund had a net capital loss carryforward of $536,269,027. |
(b) | The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of hyperinflationary currency contracts, the tax treatment of swaps, the tax deferral of losses on wash sales, the tax treatment of partnership investments, and the tax treatment of callable bonds. |
(c) | The differences between book-basis and tax-basis components of accumulated earnings (deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable. |
For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $186,457,515 and a net long-term capital loss carryforward of $349,811,512, which may be carried forward for an indefinite period.
NOTE I
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is
| | |
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NOTES TO FINANCIAL STATEMENTS (continued)
an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
NOTE J
Subsequent Events
Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.
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104 | AB HIGH INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.44 | | | | $ 7.98 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | | | | $ 8.91 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .23 | | | | .41 | | | | .40 | | | | .41 | | | | .47 | | | | .50 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .20 | | | | (1.48 | ) | | | .53 | | | | (.59 | ) | | | .11 | | | | (.71 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .43 | | | | (1.07 | ) | | | .93 | | | | (.18 | ) | | | .58 | | | | (.21 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.26 | ) | | | (.47 | ) | | | (.44 | ) | | | (.48 | ) | | | (.41 | ) | | | (.49 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.12 | ) | | | (.07 | ) |
| | | | |
Total dividends and distributions | | | (.26 | ) | | | (.47 | ) | | | (.48 | ) | | | (.48 | ) | | | (.53 | ) | | | (.56 | ) |
| | | | |
Net asset value, end of period | | | $ 6.61 | | | | $ 6.44 | | | | $ 7.98 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 6.78 | % | | | (13.83 | )% | | | 12.52 | %^ | | | (2.02 | )%^ | | | 7.33 | % | | | (2.51 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $845,949 | | | | $854,235 | | | | $1,157,302 | | | | $1,143,143 | | | | $1,329,150 | | | | $1,350,517 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | .91 | %(f) | | | .90 | % | | | .84 | % | | | .86 | % | | | .87 | % | | | .84 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | .91 | %(f) | | | .90 | % | | | .84 | % | | | .86 | % | | | .88 | % | | | .85 | % |
| | | | | | |
Net investment income(b) | | | 7.07 | %(f) | | | 5.69 | % | | | 4.95 | % | | | 5.43 | % | | | 5.82 | % | | | 5.86 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 105 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class C | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.51 | | | | $ 8.07 | | | | $ 7.62 | | | | $ 8.29 | | | | $ 8.24 | | | | $ 9.01 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .21 | | | | .35 | | | | .33 | | | | .35 | | | | .41 | | | | .44 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .21 | | | | (1.50 | ) | | | .54 | | | | (.60 | ) | | | .10 | | | | (.72 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .42 | | | | (1.15 | ) | | | .87 | | | | (.25 | ) | | | .51 | | | | (.28 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.24 | ) | | | (.41 | ) | | | (.38 | ) | | | (.42 | ) | | | (.35 | ) | | | (.43 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.11 | ) | | | (.06 | ) |
| | | | |
Total dividends and distributions | | | (.24 | ) | | | (.41 | ) | | | (.42 | ) | | | (.42 | ) | | | (.46 | ) | | | (.49 | ) |
| | | | |
Net asset value, end of period | | | $ 6.69 | | | | $ 6.51 | | | | $ 8.07 | | | | $ 7.62 | | | | $ 8.29 | | | | $ 8.24 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 6.46 | % | | | (14.69 | )% | | | 11.65 | %^ | | | (2.86 | )%^ | | | 6.43 | % | | | (3.21 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $185,514 | | | | $199,870 | | | | $324,644 | | | | $456,375 | | | | $649,108 | | | | $842,095 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | 1.66 | %(f) | | | 1.64 | % | | | 1.58 | % | | | 1.61 | % | | | 1.62 | % | | | 1.59 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | 1.66 | %(f) | | | 1.64 | % | | | 1.59 | % | | | 1.61 | % | | | 1.62 | % | | | 1.59 | % |
| | | | | | |
Net investment income(b) | | | 6.22 | %(f) | | | 4.81 | % | | | 4.14 | % | | | 4.56 | % | | | 5.00 | % | | | 5.04 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
106 | AB HIGH INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Advisor Class | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.45 | | | | $ 7.99 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | | | | $ 8.92 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .24 | | | | .43 | | | | .42 | | | | .43 | | | | .49 | | | | .52 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .20 | | | | (1.49 | ) | | | .53 | | | | (.59 | ) | | | .11 | | | | (.71 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .44 | | | | (1.06 | ) | | | .95 | | | | (.16 | ) | | | .60 | | | | (.19 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.27 | ) | | | (.48 | ) | | | (.46 | ) | | | (.50 | ) | | | (.42 | ) | | | (.50 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.13 | ) | | | (.08 | ) |
| | | | |
Total dividends and distributions | | | (.27 | ) | | | (.48 | ) | | | (.50 | ) | | | (.50 | ) | | | (.55 | ) | | | (.58 | ) |
| | | | |
Net asset value, end of period | | | $ 6.62 | | | | $ 6.45 | | | | $ 7.99 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 6.90 | % | | | (13.70 | )% | | | 12.92 | %^ | | | (1.77 | )%^ | | | 7.58 | % | | | (2.26 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $1,831,462 | | | | $1,754,072 | | | | $2,579,006 | | | | $3,077,869 | | | | $2,976,343 | | | | $3,185,833 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | .66 | %(f) | | | .64 | % | | | .59 | % | | | .61 | % | | | .62 | % | | | .59 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | .66 | %(f) | | | .65 | % | | | .59 | % | | | .61 | % | | | .63 | % | | | .60 | % |
| | | | | | |
Net investment income(b) | | | 7.29 | %(f) | | | 5.90 | % | | | 5.20 | % | | | 5.57 | % | | | 6.05 | % | | | 6.10 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 107 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class R | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.44 | | | | $ 7.98 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | | | | $ 8.90 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .22 | | | | .38 | | | | .36 | | | | .38 | | | | .44 | | | | .47 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .20 | | | | (1.48 | ) | | | .54 | | | | (.59 | ) | | | .10 | | | | (.71 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .42 | | | | (1.10 | ) | | | .90 | | | | (.21 | ) | | | .54 | | | | (.24 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.25 | ) | | | (.44 | ) | | | (.41 | ) | | | (.45 | ) | | | (.38 | ) | | | (.45 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.11 | ) | | | (.07 | ) |
| | | | |
Total dividends and distributions | | | (.25 | ) | | | (.44 | ) | | | (.45 | ) | | | (.45 | ) | | | (.49 | ) | | | (.52 | ) |
| | | | |
Net asset value, end of period | | | $ 6.61 | | | | $ 6.44 | | | | $ 7.98 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 6.71 | % | | | (14.30 | )% | | | 12.17 | %^ | | | (2.49 | )%^ | | | 6.89 | % | | | (2.80 | )%^ |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $19,264 | | | | $20,238 | | | | $32,847 | | | | $38,435 | | | | $57,226 | | | | $69,442 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | 1.34 | %(f) | | | 1.31 | % | | | 1.27 | % | | | 1.32 | % | | | 1.28 | % | | | 1.26 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | 1.34 | %(f) | | | 1.31 | % | | | 1.27 | % | | | 1.33 | % | | | 1.28 | % | | | 1.26 | % |
| | | | | | |
Net investment income(b) | | | 6.63 | %(f) | | | 5.24 | % | | | 4.53 | % | | | 4.93 | % | | | 5.43 | % | | | 5.47 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
108 | AB HIGH INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class K | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.44 | | | | $ 7.99 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | | | | $ 8.91 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .23 | | | | .39 | | | | .39 | | | | .40 | | | | .47 | | | | .50 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .21 | | | | (1.49 | ) | | | .54 | | | | (.59 | ) | | | .10 | | | | (.72 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .44 | | | | (1.10 | ) | | | .93 | | | | (.19 | ) | | | .57 | | | | (.22 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.26 | ) | | | (.45 | ) | | | (.43 | ) | | | (.47 | ) | | | (.40 | ) | | | (.48 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.12 | ) | | | (.07 | ) |
| | | | |
Total dividends and distributions | | | (.26 | ) | | | (.45 | ) | | | (.47 | ) | | | (.47 | ) | | | (.52 | ) | | | (.55 | ) |
| | | | |
Net asset value, end of period | | | $ 6.62 | | | | $ 6.44 | | | | $ 7.99 | | | | $ 7.53 | | | | $ 8.19 | | | | $ 8.14 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 6.87 | % | | | (14.07 | )% | | | 12.53 | %^ | | | (2.15 | )%^ | | | 7.25 | % | | | (2.58 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $5,402 | | | | $5,792 | | | | $38,413 | | | | $68,253 | | | | $110,135 | | | | $122,030 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | 1.03 | %(f) | | | .97 | % | | | .94 | % | | | .98 | % | | | .94 | % | | | .91 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | 1.03 | %(f) | | | .97 | % | | | .94 | % | | | .98 | % | | | .94 | % | | | .91 | % |
| | | | | | |
Net investment income(b) | | | 6.94 | %(f) | | | 5.15 | % | | | 4.87 | % | | | 5.27 | % | | | 5.76 | % | | | 5.83 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
abfunds.com | | AB HIGH INCOME FUND | 109 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class I | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.45 | | | | $ 8.00 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | | | | $ 8.92 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .24 | | | | .43 | | | | .42 | | | | .42 | | | | .50 | | | | .53 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .21 | | | | (1.50 | ) | | | .54 | | | | (.58 | ) | | | .10 | | | | (.72 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .45 | | | | (1.07 | ) | | | .96 | | | | (.16 | ) | | | .60 | | | | (.19 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.27 | ) | | | (.48 | ) | | | (.46 | ) | | | (.50 | ) | | | (.42 | ) | | | (.50 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.13 | ) | | | (.08 | ) |
| | | | |
Total dividends and distributions | | | (.27 | ) | | | (.48 | ) | | | (.50 | ) | | | (.50 | ) | | | (.55 | ) | | | (.58 | ) |
| | | | |
Net asset value, end of period | | | $ 6.63 | | | | $ 6.45 | | | | $ 8.00 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 7.05 | % | | | (13.72 | )% | | | 12.91 | %^ | | | (1.81 | )%^ | | | 7.61 | % | | | (2.23 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $68,683 | | | | $67,757 | | | | $90,893 | | | | $131,550 | | | | $167,518 | | | | $192,941 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | .68 | %(f) | | | .66 | % | | | .59 | % | | | .64 | % | | | .60 | % | | | .56 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | .68 | %(f) | | | .66 | % | | | .59 | % | | | .64 | % | | | .60 | % | | | .56 | % |
| | | | | | |
Net investment income(b) | | | 7.27 | %(f) | | | 5.91 | % | | | 5.21 | % | | | 5.57 | % | | | 6.09 | % | | | 6.15 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
| | |
| |
110 | AB HIGH INCOME FUND | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Class Z | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 6.45 | | | | $ 8.00 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | | | | $ 8.92 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a)(b) | | | .24 | | | | .43 | | | | .42 | | | | .43 | | | | .50 | | | | .54 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | .21 | | | | (1.49 | ) | | | .55 | | | | (.59 | ) | | | .10 | | | | (.73 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) | | | .00 | (c) |
| | | | |
Net increase (decrease) in net asset value from operations | | | .45 | | | | (1.06 | ) | | | .97 | | | | (.16 | ) | | | .60 | | | | (.19 | ) |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.27 | ) | | | (.49 | ) | | | (.47 | ) | | | (.50 | ) | | | (.42 | ) | | | (.50 | ) |
| | | | | | |
Return of capital | | | – 0 | – | | | – 0 | – | | | (.04 | ) | | | – 0 | – | | | (.13 | ) | | | (.08 | ) |
| | | | |
Total dividends and distributions | | | (.27 | ) | | | (.49 | ) | | | (.51 | ) | | | (.50 | ) | | | (.55 | ) | | | (.58 | ) |
| | | | |
Net asset value, end of period | | | $ 6.63 | | | | $ 6.45 | | | | $ 8.00 | | | | $ 7.54 | | | | $ 8.20 | | | | $ 8.15 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(d) | | | 7.09 | % | | | (13.64 | )% | | | 12.99 | %^ | | | (1.76 | )%^ | | | 7.68 | % | | | (2.18 | )% |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $111,907 | | | | $155,009 | | | | $266,052 | | | | $307,946 | | | | $330,538 | | | | $359,903 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Expenses, net of waivers/reimbursements(e)† | | | .60 | %(f) | | | .57 | % | | | .53 | % | | | .59 | % | | | .54 | % | | | .52 | % |
| | | | | | |
Expenses, before waivers/reimbursements(e)† | | | .60 | %(f) | | | .57 | % | | | .53 | % | | | .59 | % | | | .54 | % | | | .52 | % |
| | | | | | |
Net investment income(b) | | | 7.34 | %(f) | | | 5.96 | % | | | 5.26 | % | | | 5.66 | % | | | 6.16 | % | | | 6.27 | % |
| | | | | | |
Portfolio turnover rate | | | 19 | % | | | 28 | % | | | 48 | % | | | 54 | % | | | 49 | % | | | 35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
|
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | % | | | .00 | % | | | .01 | % | | | .00 | % |
See footnote summary on page 112.
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abfunds.com | | AB HIGH INCOME FUND | 111 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
(a) | Based on average shares outstanding. |
(b) | Net of expenses waived/reimbursed by the Adviser. |
(c) | Amount is less than $0.005. |
(d) | Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total investment return. Total investment return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return for a period of less than one year is not annualized. |
(e) | The expense ratios presented below exclude interest expense: |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended April 30, 2023 (unaudited) | | | Year Ended October 31, | |
| | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | |
| | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .86 | % | | | .87 | % | | | .84 | % | | | .86 | % | | | .85 | % | | | .82 | % |
Before waivers/reimbursements | | | .86 | % | | | .87 | % | | | .84 | % | | | .86 | % | | | .86 | % | | | .83 | % |
Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.60 | % | | | 1.61 | % | | | 1.58 | % | | | 1.60 | % | | | 1.60 | % | | | 1.57 | % |
Before waivers/reimbursements | | | 1.60 | % | | | 1.61 | % | | | 1.59 | % | | | 1.60 | % | | | 1.60 | % | | | 1.57 | % |
Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .60 | % | | | .62 | % | | | .59 | % | | | .60 | % | | | .60 | % | | | .57 | % |
Before waivers/reimbursements | | | .60 | % | | | .63 | % | | | .59 | % | | | .60 | % | | | .61 | % | | | .58 | % |
Class R | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | 1.28 | % | | | 1.28 | % | | | 1.27 | % | | | 1.32 | % | | | 1.26 | % | | | 1.24 | % |
Before waivers/reimbursements | | | 1.28 | % | | | 1.28 | % | | | 1.27 | % | | | 1.33 | % | | | 1.26 | % | | | 1.24 | % |
Class K | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .97 | % | | | .97 | % | | | .94 | % | | | .97 | % | | | .92 | % | | | .89 | % |
Before waivers/reimbursements | | | .97 | % | | | .97 | % | | | .94 | % | | | .97 | % | | | .92 | % | | | .89 | % |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .63 | % | | | .63 | % | | | .59 | % | | | .64 | % | | | .58 | % | | | .54 | % |
Before waivers/reimbursements | | | .63 | % | | | .63 | % | | | .59 | % | | | .64 | % | | | .58 | % | | | .54 | % |
Class Z | | | | | | | | | | | | | | | | | | | | | | | | |
Net of waivers/reimbursements | | | .54 | % | | | .54 | % | | | .53 | % | | | .58 | % | | | .52 | % | | | .50 | % |
Before waivers/reimbursements | | | .54 | % | | | .54 | % | | | .53 | % | | | .58 | % | | | .52 | % | | | .50 | % |
^ | The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements. |
See notes to financial statements.
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112 | AB HIGH INCOME FUND | | abfunds.com |
BOARD OF DIRECTORS
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Garry L. Moody(1), Chairman Jorge A. Bermudez(1) Michael J. Downey(1) Onur Erzan, President and Chief Executive Officer | | Nancy P. Jacklin(1) Jeanette W. Loeb(1) Carol C. McMullen(1) Marshall C. Turner, Jr.(1) |
OFFICERS
| | |
Christian DiClementi(2), Vice President Gershon M. Distenfeld(2), Vice President Fahd Malik(2), Vice President Matthew S. Sheridan(2), Vice President William Smith(2), Vice President Nancy E. Hay, Secretary | | Michael B. Reyes, Senior Vice President Joseph J. Mantineo, Treasurer and Chief Financial Officer Stephen M. Woetzel, Controller Jennifer Friedland, Chief Compliance Officer |
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Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203 Custodian and Accounting Agent Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 | | Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001 |
1 | Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee. |
2 | The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Global High Income Investment Team. Messrs. DiClementi, Distenfeld, Malik, Sheridan, and Smith are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio. |
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abfunds.com | | AB HIGH INCOME FUND | 113 |
Operation and Effectiveness of the Funds’ Liquidity Risk Management Program:
In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.
One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).
Another requirement of the Liquidity Rule is for the Fund’s Board of Directors/Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2023, which covered the period January 1, 2022 through December 31, 2022 (the “Program Reporting Period”).
The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.
Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.
During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.
The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.
The Adviser informed the Fund Board that the Committee believes the Funds’ LRMP is adequately designed, has been implemented as intended,
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114 | AB HIGH INCOME FUND | | abfunds.com |
and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.
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abfunds.com | | AB HIGH INCOME FUND | 115 |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested directors (the “directors”) of AB High Income Fund, Inc. (the “Fund”) unanimously approved the continuance of the Fund’s Advisory Agreement with the Adviser at a meeting held in-person on November 1-3, 2022 (the “Meeting”).
Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Vice President of the Fund. The directors also discussed the proposed continuance in private sessions with counsel.
The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.
The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business
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judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:
Nature, Extent and Quality of Services Provided
The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.
Costs of Services Provided and Profitability
The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution
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abfunds.com | | AB HIGH INCOME FUND | 117 |
expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.
Investment Results
In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.
At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2022. Based on their review and their discussion with the Adviser of the reasons for the Fund’s underperformance in the periods reviewed, the directors concluded that the Fund’s investment performance was acceptable.
Advisory Fees and Other Expenses
The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and 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 directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the
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118 | AB HIGH INCOME FUND | | abfunds.com |
Adviser’s Form ADV and in a report from the Fund’s Vice President and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements.
The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.
In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.
Economies of Scale
The directors noted that the advisory fee schedule for the Fund contains breakpoints and that the Fund’s net assets were higher than a breakpoint
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abfunds.com | | AB HIGH INCOME FUND | 119 |
level. Accordingly, the Fund’s current effective advisory fee rate reflected a reduction due to the breakpoint and would be further reduced to the extent the net assets of the Fund increase. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s breakpoint arrangements were acceptable and provide a means for sharing any economies of scale.
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120 | AB HIGH INCOME FUND | | abfunds.com |
This page is not part of the Shareholder Report or the Financial Statements.
AB FAMILY OF FUNDS
US EQUITY
CORE
Core Opportunities Fund
Select US Equity Portfolio
Sustainable US Thematic Portfolio
GROWTH
Concentrated Growth Fund
Discovery Growth Fund
Growth Fund
Large Cap Growth Fund
Small Cap Growth Portfolio
VALUE
Discovery Value Fund
Equity Income Fund
Relative Value Fund
Small Cap Value Portfolio
Value Fund
INTERNATIONAL/ GLOBAL EQUITY
CORE
Global Core Equity Portfolio
International Strategic Core Portfolio
Sustainable Global Thematic Fund
Sustainable International Thematic Fund
Tax-Managed Wealth Appreciation Strategy
Wealth Appreciation Strategy
GROWTH
Concentrated International Growth Portfolio
VALUE
All China Equity Portfolio
International Value Fund
FIXED INCOME
MUNICIPAL
High Income Municipal Portfolio
Intermediate California Municipal Portfolio
Intermediate Diversified Municipal Portfolio
Intermediate New York Municipal Portfolio
Municipal Bond Inflation Strategy
Tax-Aware Fixed Income Opportunities Portfolio
National Portfolio
Arizona Portfolio
California Portfolio
Massachusetts Portfolio
Minnesota Portfolio
New Jersey Portfolio
New York Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
TAXABLE
Bond Inflation Strategy
Global Bond Fund
High Income Fund
Income Fund
Intermediate Duration Portfolio
Limited Duration High Income Portfolio
Short Duration Income Portfolio
Short Duration Portfolio
Sustainable Thematic Credit Portfolio
Total Return Bond Portfolio
ALTERNATIVES
All Market Real Return Portfolio
Global Real Estate Investment Fund
Select US Long/Short Portfolio
MULTI-ASSET
All Market Total Return Portfolio
Emerging Markets Multi-Asset Portfolio
Global Risk Allocation Fund
Sustainable Thematic Balanced Portfolio
CLOSED-END FUNDS
AllianceBernstein Global High Income Fund
AllianceBernstein National Municipal Income Fund
EXCHANGE-TRADED FUNDS
Disruptors ETF
High Yield ETF
Tax-Aware Short Duration Municipal ETF
Ultra Short Income ETF
US High Dividend ETF
US Low Volatility Equity ETF
We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.
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NOTES
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NOTES
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NOTES
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g43p34.jpg)
AB HIGH INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
HI-0152-0423 ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-23-178369/g373684g22c48.jpg)
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.
Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
The following exhibits are attached to this Form N-CSR:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): AB High Income Fund, Inc.
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By: | | /s/ Onur Erzan |
| | Onur Erzan |
| | President |
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Date: | | June 26, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By: | | /s/ Onur Erzan |
| | Onur Erzan |
| | President |
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Date: | | June 26, 2023 |
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By: | | /s/ Joseph J. Mantineo |
| | Joseph J. Mantineo |
| | Treasurer and Chief Financial Officer |
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Date: | | June 26, 2023 |