AB High Income Fund, Inc.
LOGO
 
PROSPECTUS   |   JANUARY 31, 2023
The AB Bond Funds
 
Core
(Shares Offered—Exchange Ticker Symbol)
   
High Income
(Shares Offered—Exchange Ticker Symbol)
LOGO   AB Total Return Bond Portfolio
(Class A–ABQUX; Class C–ABQCX; Advisor Class–ABQYX; Class R–ABQRX; Class K–ABQKX; Class I–ABQIX; Class Z–ABQZX)
   
LOGO   AB High Income Fund
(Class A–AGDAX; Class C–AGDCX; Advisor Class–AGDYX; Class R–AGDRX; Class K–AGDKX; Class I–AGDIX; Class Z–AGDZX)
LOGO   AB Global Bond Fund
(Class A–ANAGX; Class C–ANACX; Advisor Class–ANAYX; Class R–ANARX; Class K–ANAKX; Class I–ANAIX; Class Z–ANAZX)
   
LOGO   AB Limited Duration High Income Portfolio
(Class A–ALHAX; Class C–ALHCX; Advisor Class–ALHYX)
LOGO   AB Sustainable Thematic Credit Portfolio
(Class A–STHAX; Advisor Class–STHYX)
   
LOGO   AB Income Fund
(Class A–AKGAX; Class C–AKGCX; Advisor Class–ACGYX; Class Z–ACGZX)
   
LOGO   AB Short Duration Income Portfolio
(Class A–SHUAX; Class C–SHUCX; Advisor Class–SHUYX)
   
LOGO   AB High Yield Portfolio
(Class A–HIAYX; Advisor Class–HIYYX; Class Z–HIZYX)
   
Tax-Aware
(Shares Offered—Exchange Ticker Symbol)
   
LOGO   AB Tax-Aware Fixed Income Opportunities Portfolio
(Class A–ATTAX; Class C–ATCCX; Advisor Class–ATTYX)
The Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

 
 
 
 
Investment Products Offered
 
Ø  Are Not FDIC Insured
Ø  May Lose Value
Ø  Are Not Bank Guaranteed

TABLE OF CONTENTS
 
 
    Page  
SUMMARY INFORMATION     4  
CORE     4  
    4  
    9  
    14  
HIGH INCOME     19  
    19  
    24  
    28  
    33  
    37  
TAX-AWARE     42  
    42  
ADDITIONAL INFORMATION ABOUT THE FUNDS’ STRATEGIES, RISKS AND INVESTMENTS     48  
INVESTING IN THE FUNDS     64  
    64  
    66  
    67  
    68  
    69  
    69  
    71  
    71  
    72  
    73  
MANAGEMENT OF THE FUNDS     74  
DIVIDENDS, DISTRIBUTIONS AND TAXES     77  
GENERAL INFORMATION     79  
GLOSSARY OF INVESTMENT TERMS     80  
FINANCIAL HIGHLIGHTS     82  
APPENDIX A—BOND RATINGS     A-1  
APPENDIX B—HYPOTHETICAL INVESTMENT AND EXPENSE INFORMATION     B-1  
APPENDIX C—FINANCIAL INTERMEDIARY WAIVERS     C-1  

SUMMARY INFORMATION
 
 
CORE
 
AB Total Return Bond Portfolio
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to maximize long-term total return without assuming what the Adviser considers undue risk.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Class C
Shares
   Advisor Class
Shares
  
Class
R, K, I and Z
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None    None    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    1.00%(b)    None    None
Exchange Fee
   None    None    None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
     Class A     Class C     Advisor Class     Class R     Class K     Class I     Class Z  
Management Fees
    .45%       .45%       .45%       .45%       .45%       .45%       .45%  
Distribution and/or Service (12b-1) Fees
    .25%       1.00%       None       .50%       .25%       None       None  
Other Expenses:
             
Transfer Agent
    .13%       .14%       .13%       .26%       .20%       .08%       .03%  
Other Expenses
    .23%       .22%       .22%       .22%       .22%       .22%       .22%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Other Expenses
    .36%       .36%       .35%       .48%       .42%       .30%       .25%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses
    1.06%       1.81%       .80%       1.43%       1.12%       .75%       .70%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Fee Waiver and/or Expense Reimbursement(c)
    (.29)%       (.29)%       (.28)%       (.41)%       (.35)%       (.23)%       (.18)%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
    .77%       1.52%       .52%       1.02%       .77%       .52%       .52%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
                           
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge (“CDSC”), which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
The Adviser has contractually agreed to waive its management fees and/or to bear certain expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding interest expense), on an annualized basis, from exceeding .77%, 1.52%, .52%, 1.02%, .77%, .52% and .52% of average daily net assets, respectively, for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares (“expense limitations”). The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the agreement will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
 
4

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A   Class C   Advisor Class   Class R   Class K   Class I   Class Z
After 1 Year
    $ 500     $ 255 *     $ 53     $ 104     $ 79     $ 53     $ 53
After 3 Years
    $ 720     $ 541     $ 227     $ 412     $ 321     $ 217     $ 206
After 5 Years
    $ 958     $ 953     $ 417     $ 743     $ 583     $ 394     $ 372
After 10 Years
    $ 1,639     $ 1,905     $ 964     $ 1,678     $ 1,332     $ 909     $ 854
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 141% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term and relatively attractive yields that do not involve undue risk of loss of capital. The Fund may invest up to 25% of its net assets in below investment grade bonds. The Fund may use leverage for investment purposes.
The Fund may invest without limit in U.S. Dollar-denominated foreign fixed-income securities and may invest up to 25% of its assets in non-U.S. Dollar-denominated foreign fixed-income securities. These investments may include, in each case, developed and emerging market debt 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 mortgage-related and other asset-backed securities, loan participations and assignments, inflation-indexed securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. 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 swaps. 
PRINCIPAL RISKS
 
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. 
 
5

 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to 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. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. 
 
 
Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value, or 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. 
 
 
Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
 
6

BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and 
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. 
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Effective July 12, 2019, the Fund made certain changes to its investment objective and principal strategies (the changes included the elimination of the guidelines for the average duration and maturity of the Fund) and also changed its name from AB Intermediate Bond Portfolio to AB Total Return Bond Portfolio. Accordingly, the performance shown for periods prior to July 12, 2019 is based on the Fund’s prior investment objective and principal strategies and may not be representative of the Fund’s performance under its current investment objective and principal strategies. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 7.99%, 2nd quarter, 2020; and Worst Quarter was down -7.09%, 1st quarter, 2022. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Class A*   Return Before Taxes      -18.24%          -1.30%          0.59%    
 
 
  Return After Taxes on Distributions      -19.38%          -2.53%          -0.66%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -10.78%          -1.42%          -0.05%      
Class C   Return Before Taxes      -16.01%          -1.19%          0.28%      
Advisor Class   Return Before Taxes      -14.29%          -0.20%          1.29%      
Class R   Return Before Taxes      -14.74%          -0.70%          0.78%      
Class K   Return Before Taxes      -14.51%          -0.45%          1.03%      
Class I   Return Before Taxes      -14.38%          -0.22%          1.27%      
Class Z**   Return Before Taxes      -14.36%          -0.22%          1.28%      
Bloomberg U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses, or taxes)
     -13.01%          0.02%          1.06%      
 
*
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
**
Inception date for Class Z shares: 4/25/14. Performance information for periods prior to the inception of Class Z shares is the performance of the Fund’s Class A shares adjusted to reflect the expenses of the Class Z shares.
 
7

INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Michael Canter    Since 2016    Senior Vice President of the Adviser
Janaki Rao    Since 2018    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
8

AB Global Bond Fund
 
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to generate current income consistent with preservation of capital.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Class C
Shares
   Advisor Class
Shares
   Class
R, K, I and Z
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None    None    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    1.00%(b)    None    None
Exchange Fee
   None    None    None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
     Class A     Class C     Advisor Class     Class R     Class K     Class I     Class Z  
Management Fees
    .46%       .46%       .46%       .46%       .46%       .46%       .46%  
Distribution and/or Service (12b-1) Fees
    .25%       1.00%       None       .50%       .25%       None       None  
Other Expenses:
             
Transfer Agent
    .07%       .07%       .07%       .26%       .20%       .08%       .02%  
Other Expenses(c)
    .02%       .03%       .03%       .03%       .03%       .03%       .03%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Other Expenses
    .09%       .10%       .10%       .29%       .23%       .11%       .05%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses
    .80%       1.56%       .56%       1.25%       .94%       .57%       .51%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Fee Waiver and/or Expense Reimbursement(d)
    (.00)% (e)      (.01)%       (.01)%       (.00)% (e)      (.00)% (e)      (.01)%       (.00)% (e) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
    .80%       1.55%       .55%       1.25%       .94%       .56%       .51%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
                           
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge (“CDSC”), which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
“Other Expenses” includes acquired fund fees and expenses totaling less than .01%.
 
(d)
In connection with the Fund’s investments in AB Government Money Market Portfolio (the “Money Market Portfolio”) (except for the investment of any cash collateral from securities lending), the Adviser has contractually agreed to waive its management fee from the Fund and/or reimburse other expenses of the Fund in an amount equal to the Fund’s pro rata share of the Money Market Portfolio’s effective management fee. The agreement may only be terminated or changed with the consent of the Fund’s Board of Directors.
 
(e)
Amount is less than .005%.
 
9

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A     Class C     Advisor Class     Class R     Class K     Class I     Class Z  
After 1 Year
  $ 503     $ 258   $ 56     $ 127     $ 96     $ 57     $ 52  
After 3 Years
  $ 670     $ 492     $ 178     $ 397     $ 300     $ 182     $ 164  
After 5 Years
  $ 850     $ 849     $ 312     $ 686     $ 520     $ 317     $ 285  
After 10 Years
  $ 1,373     $ 1,651     $ 700     $ 1,511     $ 1,155     $ 713     $ 640  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 159% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. Under normal market conditions, the Fund invests significantly in fixed-income securities of non-U.S. companies. In addition, the Fund invests, under normal circumstances, in the fixed-income securities of companies located in at least three countries. The Fund may invest in a broad range of fixed-income securities in both developed and emerging markets. The Fund may invest across all fixed-income sectors, including U.S. and non-U.S. Government and corporate debt securities. The Fund’s investments may be denominated in local currency or U.S. Dollar-denominated. The Fund may invest in debt securities with a range of maturities from short- to long-term. The Fund may use borrowings or other leverage for investment purposes.
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 Adviser actively manages the Fund’s assets in relation to market conditions and general economic conditions and adjusts the Fund’s investments in an effort to best enable the Fund to achieve its investment objective. Thus, the percentage of the Fund’s assets invested in a particular country or denominated in a particular currency will vary in accordance with the Adviser’s assessment of the relative yield and appreciation potential of such securities and the relationship of the country’s currency to the U.S. Dollar.
Under normal circumstances, the Fund invests at least 75% of its net assets in fixed-income securities rated investment grade at the time of investment and may invest up to 25% of its net assets in below investment grade fixed-income securities (commonly known as “junk bonds”). 
The Fund may invest in mortgage-related and other asset-backed securities, loan participations and assignments, inflation-indexed securities, structured securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. 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 swaps. 
PRINCIPAL RISKS
 
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. 
 
10

 
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. 
 
 
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. 
 
 
Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value, or 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 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 redemption of Fund shares. Foreign fixed-income securities may have more illiquid investments risk because secondary trading markets for these securities may be smaller and less well-developed and the securities may trade less frequently. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline. 
 
 
Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
 
11

BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and 
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. 
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 5.22%, 2nd quarter, 2020; and Worst Quarter was down -5.33%, 2nd quarter, 2022. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Class A*   Return Before Taxes      -16.01%          -1.31%          0.66%    
 
 
  Return After Taxes on Distributions      -18.61%          -2.86%          -0.81%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -9.45%          -1.55%          -0.09%      
Class C   Return Before Taxes      -13.81%          -1.23%          0.35%      
Advisor Class   Return Before Taxes      -11.92%          -0.18%          1.38%      
Class R   Return Before Taxes      -12.64%          -0.87%          0.70%      
Class K   Return Before Taxes      -12.37%          -0.57%          1.02%      
Class I   Return Before Taxes      -11.93%          -0.18%          1.39%      
Class Z**   Return Before Taxes      -11.99%          -0.13%          1.43%      
Bloomberg Global Aggregate Bond Index
(U.S. hedged) (reflects no deduction for fees, expenses, or taxes)
     -11.22%          0.36%          1.70%      
 
*
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
**
Inception date of Class Z shares: 10/15/13. Performance information for periods prior to the inception of Class Z shares is the performance of the Fund’s Class A shares adjusted to reflect the expenses of the Class Z shares.
INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
 
12

PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Scott A. DiMaggio    Since 2005    Senior Vice President of the Adviser
Matthew S. Sheridan    Since 2007    Senior Vice President of the Adviser
John Taylor    Since 2019    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
13

AB Sustainable Thematic Credit Portfolio
 
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to maximize total return through current income and long-term capital appreciation.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Advisor Class
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    None
Exchange Fee
   None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
      Class A      Advisor Class  
Management Fees
     .45%        .45%  
Distribution and/or Service (12b-1) Fees
     .25%        None  
Other Expenses:
     
Transfer Agent
     .01%        .01%  
Other Expenses
     .26%        .26%  
  
 
 
    
 
 
 
Total Other Expenses
     .27%        .27%  
  
 
 
    
 
 
 
Total Annual Fund Operating Expenses
     .97%        .72%  
  
 
 
    
 
 
 
Fee Waiver and/or Expense Reimbursement(b)
     (.12)%        (.12)%  
  
 
 
    
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     .85%        .60%  
  
 
 
    
 
 
 
                   
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
The Adviser has contractually agreed to waive its management fee and/or to bear certain expenses of the Fund through January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding expenses associated with acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense and extraordinary expenses), on an annualized basis, from exceeding .85% and .60% of average daily net assets, respectively, for Class A and Advisor Class shares (“expense limitations”). Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s covered operating expenses to exceed the applicable expense limitations. The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the expense limitations will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses
 
14

stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A        Advisor Class  
After 1 Year
  $ 508        $ 61  
After 3 Years
  $ 709        $ 218  
After 5 Years
  $ 927        $ 389  
After 10 Years
  $ 1,554        $ 883  
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 25% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund seeks to achieve its investment objective by investing primarily in fixed-income securities of corporate issuers whose business activities the Adviser believes position the issuer to benefit from certain sustainable investment themes that align with one or more of the United Nations Sustainable Development Goals (“SDGs”). These themes principally include the advancement of health, climate, and empowerment. Under normal circumstances, at least 80% of the Fund’s net assets will be invested in fixed-income securities of corporate issuers that satisfy the Fund’s sustainability criteria. An issuer that derives at least 25% of its total revenues from activities consistent with the achievement of the SDGs meets such criteria, although many of the issuers in which the Fund invests will derive a much greater portion of their revenues from such activities.
The Adviser employs a combination of “top-down” and “bottom-up” investment processes with the goal of identifying, based on its internal research and analysis, securities and issuers that fit into sustainable investment themes. First, the Adviser identifies through its top-down process the sustainable investment themes. In addition to this top-down thematic approach, the Adviser then uses a bottom-up analysis of individual bond issues that focuses on the use of proceeds, issuer fundamentals and valuation and on evaluating an issuer’s risks, including those related to environmental, social and governance (“ESG”) factors. ESG factors, which can vary across companies and industries, may include environmental impact, corporate governance, ethical business practices, diversity and employee practices, product safety, supply chain management and community impact. Eligible investments include securities of issuers that the Adviser believes will maximize total return while also contributing to positive societal impact aligned with one or more SDGs. While the Adviser emphasizes focusing on individual issuers with favorable ESG attributes over the use of broad-based negative screens (e.g., disqualifying business activities) in assessing an issuer’s exposure to ESG factors, the Fund will not invest in companies that derive significant revenue from involvement in adult entertainment, alcohol, coal, controversial weapons, firearms, gambling, genetically modified organisms, military contracting, prisons, or tobacco. The Fund also typically invests in ESG bond structures, including “Use of Proceeds” bonds, which are instruments the proceeds of which are specifically earmarked for environmental, social or sustainability projects.
The Fund may invest up to 20% of its net assets in securities rated below investment grade (“junk bonds”). The Fund may invest up to 30% of its net assets in securities denominated in currencies other than the U.S. Dollar. Foreign investments may include securities issued by emerging market companies and governments. The Adviser expects under normal circumstances to hedge the majority of the Fund’s foreign currency exposure through the use of currency-related derivatives, although it is not required to do so.
The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may, for example, use interest rate futures contracts or swaps to manage the Fund’s average duration and may, as noted above, use currency-related derivatives to hedge foreign currency exposure.
The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure significantly in excess of the Fund’s net assets.
The Fund is “non-diversified”.
PRINCIPAL RISKS
 
Market Risk: The value of the Fund’s assets will fluctuate as the stock, bond or currency markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market. 
 
15

 
ESG Risk: Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities of companies with ESG practices may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, ESG factors and “sustainability”criteria are not uniformly defined, and may differ from those used by other funds. In addition, in evaluating an investment, the Adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment. 
 
 
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. 
 
 
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 factors such as specific corporate developments, interest rate sensitivity 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. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Emerging market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries. 
 
 
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. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its 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. 
 
 
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. 
 
 
Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV. 
 
16

 
Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over the life of the Fund; and 
 
 
how the Fund’s average annual returns for one year and since inception compare to those of a broad-based securities market index. 
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 3.72%, 4th quarter, 2022; and Worst Quarter was down -8.73%, 2nd quarter, 2022. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        Since
Inception*
      
Class A**   Return Before Taxes      -21.39%          -12.50%    
 
 
  Return After Taxes on Distributions      -22.26%          -13.40%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -12.65%          -9.75%      
Advisor Class   Return Before Taxes      -17.67%          -9.96%      
Bloomberg U.S. Corporate Total Return Value Unhedged USD Index (also known as the “Bloomberg U.S. Corporate Bond Index”)
(reflects no deduction for fees, expenses, or taxes)
     -15.76%          -8.58%      
 
*
Inception date is 5/10/21.
 
**
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the Advisor Class shares because the Advisor Class shares have a different expense ratio;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
17

INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Gershon M. Distenfeld    Since 2021    Senior Vice President of the Adviser
Tiffanie Wong    Since 2021    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
18

HIGH INCOME
 
 
AB High Income Fund
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to seek to maximize total returns from price appreciation and income.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Class C
Shares
   Advisor Class
Shares
   Class
R, K, I and Z
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None    None    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    1.00%(b)    None    None
Exchange Fee
   None    None    None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
     Class A     Class C     Advisor Class     Class R     Class K     Class I     Class Z  
Management Fees
    .48%       .48%       .48%       .48%       .48%       .48%       .48%  
Distribution and/or Service (12b-1) Fees
    .25%       1.00%       None       .50%       .25%       None       None  
Other Expenses:
             
Transfer Agent
    .10%       .10%       .10%       .26%       .20%       .11%       .02%  
Interest Expense
    .03%       .03%       .03%       .03%       .03% (d)      .03%       .03%  
Other Expenses(c)
    .04%       .03%       .04%       .04%       .04%       .04%       .04%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Other Expenses
    .17%       .16%       .17%       .33%       .27% (d)      .18%       .09%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses
    .90%       1.64%       .65%       1.31%       1.00%       .66%       .57%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Fee Waiver and/or Expense Reimbursement(e)
    (.00)% (f)      (.00)% (f)      (.01)%       (.00)% (f)      (.00)% (f)      (.00)% (f)      (.00)% (f) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
    .90%       1.64%       .64%       1.31%       1.00%       .66%       .57%  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
                           
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
“Other Expenses” includes acquired fund fees and expenses totaling less than .01%.
 
(d)
Restated to reflect current expenses.
 
(e)
In connection with the Fund’s investments in AB Government Money Market Portfolio (the “Money Market Portfolio”) (except for the investment of any cash collateral from securities lending), the Adviser has contractually agreed to waive its management fee from the Fund and/or reimburse other expenses of the Fund in an amount equal to the Fund’s pro rata share of the Money Market Portfolio’s effective management fee. The agreement may only be terminated or changed with the consent of the Fund’s Board of Directors.
 
(f)
Amount is less than .005%.
 
19

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A     Class C     Advisor Class     Class R     Class K     Class I     Class Z  
After 1 Year
  $ 513     $ 267   $ 65     $ 133     $ 102     $ 67     $ 58  
After 3 Years
  $ 700     $ 517     $ 207     $ 415     $ 318     $ 211     $ 183  
After 5 Years
  $ 902     $ 892     $ 361     $ 718     $ 552     $ 368     $ 318  
After 10 Years
  $ 1,486     $ 1,746     $ 809     $ 1,579     $ 1,225     $ 822     $ 714  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 28% of the average value of its portfolio.
PRINCIPAL STRATEGIES
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 U.S. and non-U.S. corporate debt securities and sovereign debt securities. The Fund may invest, without limitation, in either U.S. Dollar-denominated or non-U.S. 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 (“Moody’s”) or CCC+ or lower by S&P Global Ratings (“S&P”) and Fitch Ratings (“Fitch”), or the equivalent by any nationally recognized statistical rating organization (“NRSRO”)), 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 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. 
PRINCIPAL RISKS
 
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 
 
20

 
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. 
 
 
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: To the extent the Fund uses leveraging techniques, its net asset value, or 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 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. 
As with all investments, you may lose money by investing in the Fund.
 
21

BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index.
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future.
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 11.74%, 2nd quarter, 2020; and Worst Quarter was down -18.73%, 1st quarter, 2020
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Class A*   Return Before Taxes      -15.55%          -0.47%          2.52%    
 
 
  Return After Taxes on Distributions      -17.96%          -2.82%          -0.18%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -9.18%          -1.28%          0.75%      
Class C   Return Before Taxes      -13.31%          -0.44%          2.13%      
Advisor Class   Return Before Taxes      -11.59%          0.64%          3.23%      
Class R   Return Before Taxes      -12.20%          -0.04%          2.56%      
Class K   Return Before Taxes      -12.08%          0.28%          2.90%      
Class I   Return Before Taxes      -11.59%          0.65%          3.27%      
Class Z**   Return Before Taxes      -11.64%          0.70%          3.29%      
Bloomberg Global High Yield Index (USD Hedged)
(reflects no deduction for fees, expenses, or taxes)
     -11.05%          1.23%          3.75%      
JPMorgan Emerging Markets Bond Index Global (“EMBI Global”) (U.S. Dollar-denominated)
(reflects no deduction for fees, expenses, or taxes)
     -16.45%          -1.00%          1.35%      
JPMorgan Government Bond Index-Emerging Markets (“GBI-EM”) (local currency-denominated)
(reflects no deduction for fees, expenses, or taxes)
     -8.66%          -1.50%          -1.42%      
Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (“BC High Yield”)
(reflects no deduction for fees, expenses, or taxes)
     -11.18%          2.30%          4.03%      
Composite Benchmark (equal weighted blend of EMBI Global, GBI-EM and BC High Yield)#      -12.05%          0.01%          1.39%      
 
*
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
**
Inception date for Class Z shares: 10/15/13. Performance information for periods prior to the inception of Class Z shares is the performance of the Fund’s Class A shares adjusted to reflect the expenses of the Class Z shares.
 
# 
The information in the Composite Benchmark shows how the Fund’s performance compares with the returns of an index of securities similar to those in which the Fund invests.
 
22

INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Christian DiClementi    Since 2021    Senior Vice President of the Adviser
Gershon M. Distenfeld    Since 2008    Senior Vice President of the Adviser
Fahd Malik    Since 2021    Senior Vice President of the Adviser
Matthew S. Sheridan    Since 2005    Senior Vice President of the Adviser
William Smith    Since 2022    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
23

AB Limited Duration High Income Portfolio
 
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to seek the highest level of income that is available without assuming what the Adviser considers to be undue risk to principal.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Class C
Shares
   Advisor Class
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    1.00%(b)    None
Exchange Fee
   None    None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
      Class A      Class C      Advisor Class  
Management Fees
     .55%        .55%        .55%  
Distribution and/or Service (12b-1) Fees
     .25%        1.00%        None  
Other Expenses:
        
Transfer Agent
     .04%        .04%        .04%  
Other Expenses
     .16%        .16%        .16%  
  
 
 
    
 
 
    
 
 
 
Total Other Expenses
     .20%        .20%        .20%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses
     1.00%        1.75%        .75%  
  
 
 
    
 
 
    
 
 
 
Fee Waiver and/or Expense Reimbursement(c)
     (.05)%        (.05)%        (.05)%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     .95%        1.70%        .70%  
  
 
 
    
 
 
    
 
 
 
                            
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
The Adviser has contractually agreed to waive its management fees and/or to bear certain expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annualized basis, from exceeding .95%, 1.70% and .70% of average daily net assets, respectively, for Class A, Class C and Advisor Class shares (“expense limitations”). The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the expense limitations will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses
 
24

stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
      Class A      Class C      Advisor Class  
After 1 Year
   $ 518      $ 273    $ 72  
After 3 Years
   $ 725      $ 546      $ 235  
After 5 Years
   $ 949      $ 944      $ 412  
After 10 Years
   $ 1,593      $ 1,860      $ 926  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 62% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests primarily in fixed-income securities, with an emphasis on corporate fixed-income securities rated below investment grade (commonly known as “junk bonds”), unrated securities considered by the Adviser to be of comparable quality, and related derivatives. Under normal circumstances, the Fund will maintain a dollar-weighted average duration of less than four years, although it may invest in individual fixed-income securities with durations in excess of four years.
The Fund may also invest in investment grade fixed-income securities, high-yield securities of governments and government-related issuers, loan participations and assignments and, to a lesser extent, equity securities, and derivatives related to these instruments. The Fund will not invest more than 10% of its net assets in securities rated at or below Caa1 by Moody’s Investors Service (“Moody’s”), CCC+ by S&P Global Ratings (“S&P”) or CCC by Fitch Ratings (“Fitch”), or the equivalent by any nationally recognized statistical rating organization (“NRSRO”), at the time of purchase. (For the purpose of this 10% limit, the Fund will rely on the highest rating from any NRSRO, and the notional amount of derivatives related to these instruments will be counted.)
The Fund invests on a global basis, including securities of issuers in both developed and emerging market countries. The Fund may invest in securities denominated in foreign currencies, although it expects to use hedging instruments frequently to attempt to limit the currency exposure resulting from such investments.
In selecting securities for purchase or sale by the Fund, the Adviser attempts to take advantage of inefficiencies that it believes exist in the global fixed-income markets. These inefficiencies arise from investor behavior, market complexity, and the investment limitations to which investors are subject. The Adviser combines its quantitative forecasts with fundamental economic and credit research in seeking to exploit these inefficiencies.
The Adviser employs strategies to manage the Fund’s volatility relative to the global high-yield market. Such strategies may include shortening the duration of the Fund, adding higher rated investments, investing in various fixed-income sectors with relatively low correlation among them, and using hedging strategies that seek to provide protection from substantial market downturns. The Adviser utilizes different combinations of the above strategies at different points in time, taking into consideration, among other factors, the shape of the credit curve, the relative effect on yield associated with changes in credit quality, and the cost of hedging strategies.
The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps, to a significant extent, subject to the limits of applicable law. Derivatives may provide more efficient and economical exposure to market segments than direct investments, and may also be a quicker and more efficient way to alter the Fund’s exposure. For example, the Fund may use credit default and interest rate swaps to gain exposure to the fixed-income markets. In determining when and to what extent to enter into derivative transactions, the Adviser considers factors such as the risks and returns of these investments relative to direct investments and the costs of such transactions. Derivatives such as options and forwards may also be used for hedging purposes, including to hedge against interest rate, credit market and currency fluctuations.
PRINCIPAL RISKS
 
Market Risk: The value of the Fund’s assets will fluctuate as the stock, bond, currency and commodity markets fluctuate. 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. 
 
25

 
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, guarantor or counterparty may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed- income securities with longer durations have more risk and will decrease in price as interest rates rise. 
 
 
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. 
 
 
Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
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 and other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. 
 
 
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. 
 
 
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. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
 
26

BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and 
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. 
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 12.24%, 2nd quarter, 2020; and Worst Quarter was down -14.91%, 1st quarter, 2020. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Class A*   Return Before Taxes      -12.33%          0.50%          2.01%    
 
 
  Return After Taxes on Distributions      -14.62%          -1.36%          0.20%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -7.28%          -0.38%          0.74%      
Class C   Return Before Taxes      -10.02%          0.61%          1.71%      
Advisor Class   Return Before Taxes      -8.25%          1.63%          2.74%      
Bloomberg Global High Yield 1-5 Year Index (U.S. dollar hedged)
(reflects no deduction for fees, expenses, or taxes)
     -7.35%          1.63%          3.71%      
 
*
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Gershon M. Distenfeld    Since 2011    Senior Vice President of the Adviser
Robert Schwartz    Since 2022    Senior Vice President of the Adviser
William Smith    Since 2018    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
27

AB Income Fund
 
 
INVESTMENT OBJECTIVE:
The investment objective of the Fund is to seek high current income consistent with preservation of capital.
FEES AND EXPENSES OF THE FUND:
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
     Class A
Shares
  Class C
Shares
  Advisor Class
Shares
  Class Z
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
  4.25%   None   None   None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
  None(a)   1.00%(b)   None   None
Exchange Fee
  None   None   None   None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
     Class A     Class C     Advisor Class     Class Z  
Management Fees
    .43%       .43%       .43%       .43%  
Distribution and/or Service (12b-1) Fees
    .25%       1.00%       None       None  
Other Expenses:
       
Transfer Agent
    .08%       .08%       .08%       .02%  
Interest Expense
    .28%       .27%       .27%       .29%  
Other Expenses
    .04%       .04%       .04%       .04%  
 
 
 
   
 
 
   
 
 
   
 
 
 
Total Other Expenses
    .40%       .39%       .39%       .35%  
 
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses
    1.08%       1.82%       .82%       .78%  
 
 
 
   
 
 
   
 
 
   
 
 
 
Fee Waiver and/or Expense Reimbursement(c)
    (.04)%       (.03)%       (.03)%       (.00)% (d) 
 
 
 
   
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement(e)
    1.04%       1.79%       .79%       .78%  
 
 
 
   
 
 
   
 
 
   
 
 
 
   
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
The Adviser has contractually agreed to waive its management fees and/or to bear certain expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annualized basis, from exceeding .77%, 1.52%, .52% and .52% of average daily net assets, respectively, for Class A, Class C, Advisor Class and Class Z shares (“expense limitations”). Any fees waived and expenses borne by the Adviser through April 22, 2018 under the expense limitations in effect prior to that date may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s Total Annual Fund Operating Expenses to exceed the expense limitations. The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the agreement will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
 
(d)
Amount is less than .005%.
 
(e)
If interest expense were excluded, net expenses would be as follows:
 
Class A     Class C     Advisor Class     Class Z  
  .77%       1.52%       .52%       .49%  
 
28

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A     Class C     Advisor Class     Class Z  
After 1 Year
  $ 527     $ 282   $ 81     $ 80  
After 3 Years
  $ 750     $ 570     $ 259     $ 249  
After 5 Years
  $ 991     $ 982     $ 452     $ 433  
After 10 Years
  $ 1,683     $ 1,941     $ 1,011     $ 966  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 167% of the average value of its portfolio.
PRINCIPAL STRATEGIES:
The Fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of U.S. and foreign governments, their agencies or instrumentalities and repurchase agreements relating to U.S. Government securities.
The Fund normally invests at least 65% of its total assets in U.S. Dollar-denominated securities. The Fund may also invest up to 35% of its total assets in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment grade securities (commonly known as “junk bonds”). The Fund may invest no more than 25% of its total assets in securities of issuers in any one country other than the U.S. The Fund’s investments in foreign securities may include investments in securities of emerging market countries or of issuers in emerging markets.
The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks 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 fixed-income securities with any maturity or duration.
The Fund utilizes derivatives, such as options, futures contracts, forwards and swaps to a significant extent, subject to the limits of applicable law. The Fund may, for example, use credit default, interest rate and total return swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.
PRINCIPAL RISKS:
 
Market Risk: The value of the Fund’s assets will fluctuate as the 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. 
 
 
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to higher probability that an issuer will default or fail to meet its payment obligations. These securities 
 
29

 
may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of 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. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. 
 
 
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline, as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. 
 
 
Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities. 
 
 
Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value, or 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. 
 
 
Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
 
30

BAR CHART AND PERFORMANCE INFORMATION:
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and 
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. 
You may obtain updated performance information on the Fund’s website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
The Fund commenced operations on April 22, 2016. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., a closed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Fund has the same investment objective and similar investment strategies and policies as those of the Predecessor Fund. In addition, the Fund has higher expenses (including transfer agency and shareholder servicing fees), and a different advisory fee arrangement, than those of the Predecessor Fund. 
Performance information prior to April 22, 2016 shown below reflects the historical performance of the Predecessor Fund based on its NAV. Such performance information may not be representative of performance the Fund would have achieved as an open-end fund under its current investment strategies and policies and expense levels. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Advisor Class shares. Shares of the Predecessor Fund were exchanged for Advisor Class shares of the Fund in the Reorganization.
 
 
LOGO  
Best Quarter was up 7.71%, 2nd quarter, 2020; and Worst Quarter was down -7.28%, 2nd quarter, 2022. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Class A*   Return Before Taxes      -19.11%          -1.33%          1.00%      
Class C*   Return Before Taxes      -16.84%          -1.22%          0.69%      
Advisor Class**   Return Before Taxes      -15.18%          -0.22%          1.70%    
 
 
  Return After Taxes on Distributions      -16.57%          -1.79%          -0.35%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -8.95%          -0.76%          0.41%      
Class Z*   Return Before Taxes      -15.29%          -0.22%          1.71%      
Bloomberg U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses, or taxes)
     -13.01%          0.02%          1.06%      
 
*
Performance information for Class A and Class C shares prior to April 22, 2016 and for Class Z shares prior to November 20, 2019 (Class Z inception date) reflects the performance of the Fund’s Advisor Class shares adjusted to reflect the expense differences between these Classes of shares.
 
**
After-tax returns:
 
 
Are shown for Advisor Class shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
31

INVESTMENT ADVISER:
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS:
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Scott A. DiMaggio    Since 2019    Senior Vice President of the Adviser
Gershon M. Distenfeld    Since 2016    Senior Vice President of the Adviser
Fahd Malik    Since 2022    Senior Vice President of the Adviser
Matthew S. Sheridan    Since 2016    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
32

AB Short Duration Income Portfolio
 
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to seek high current income consistent with preservation of capital.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
    
Class A
Shares
 
Class C
Shares
 
Advisor Class
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
  2.25%   None   None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
  None(a)   1.00%(b)   None
Exchange Fee
  None   None   None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
     Class A     Class C     Advisor Class  
Management Fees
    .35%       .35%       .35%  
Distribution and/or Service (12b-1) Fees
    .20%       1.00%       None  
Other Expenses:
     
Transfer Agent
    .06%       .06%       .06%  
Interest Expense
    .30%       .26%       .32%  
Other Expenses
    .75%       .75%       .75%  
 
 
 
   
 
 
   
 
 
 
Total Other Expenses
    1.11%       1.07%       1.13%  
 
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses
    1.66%       2.42%       1.48%  
 
 
 
   
 
 
   
 
 
 
Fee Waiver and/or Expense Reimbursement(c)
    (.71)%       (.71)%       (.71)%  
 
 
 
   
 
 
   
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement(d)
    .95%       1.71%       .77%  
 
 
 
   
 
 
   
 
 
 
                         
 
(a)
Purchases of Class A shares in amounts of $500,000 or more, or by certain group retirement plans, may be subject to a 1%, 18-month contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
The Adviser has contractually agreed to waive its management fees and/or to bear expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annualized basis, from exceeding .65%, 1.45% and .45% of average daily net assets, respectively, for Class A, Class C and Advisor Class shares (“expense limitations”). Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s covered operating expenses to exceed the applicable expense limitations. The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the agreement will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
 
(d)
If interest expense were excluded, net expenses would be as follows:
 
Class A     Class C     Advisor Class  
  .65%       1.45%       .45%  
 
33

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A     Class C     Advisor Class  
After 1 Year
  $ 320     $ 274   $ 79  
After 3 Years
  $ 669     $ 687     $ 398  
After 5 Years
  $ 1,042     $ 1,226     $ 740  
After 10 Years
  $ 2,088     $ 2,513     $ 1,708  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal period, the Fund’s portfolio turnover rate was 60% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund pursues its objective by investing, under normal circumstances, primarily in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of U.S. and foreign governments and their agencies and instrumentalities (including mortgage-backed securities), derivatives related to such securities, and repurchase agreements relating to U.S. Government securities. Under normal circumstances, the Fund will maintain a dollar-weighted average duration of less than three years, although it may invest in securities of any duration or maturity.
The Fund may invest in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment grade securities (commonly known as “junk bonds”). The Fund’s investments in foreign securities may include both government and corporate securities, and securities of emerging market countries or of issuers in emerging markets.
The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks 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 utilize derivatives, such as options, futures contracts, forwards and swaps. The Fund may, for example, use interest rate futures contracts and swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.
The Adviser may hedge the foreign currency exposure resulting from the Fund’s security positions, and may take long or short positions in currencies, through the use of currency-related derivatives.
PRINCIPAL RISKS
 
Market Risk: The value of the Fund’s assets will fluctuate as the 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. 
 
 
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These 
 
34

 
securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of 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. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. 
 
 
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. 
 
 
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. 
 
 
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. 
 
 
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. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value, or 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. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. 
 
 
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. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over the life of the Fund; and 
 
 
how the Fund’s average annual returns for one year and since inception compare to those of a broad-based securities market index. 
 
35

You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 4.48%, 2nd quarter, 2020; and Worst Quarter was down -6.84%, 1st quarter, 2020. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        Since
Inception*
      
Class A**
  Return Before Taxes      -8.97%          0.25%    
 
 
  Return After Taxes on Distributions      -10.19%          -1.35%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -5.31%          -0.43%      
Class C   Return Before Taxes      -8.57%          -0.01%      
Advisor Class   Return Before Taxes      -6.74%          0.97%      
Bloomberg 1-5 Year U.S. Government/Credit Index
(reflects no deduction for fees, expenses, or taxes)
     -5.50%          0.91%      
 
*
Inception date for all Classes is 12/12/18.
 
**
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Scott A. DiMaggio    Since 2018    Senior Vice President of the Adviser
Gershon M. Distenfeld    Since 2018    Senior Vice President of the Adviser
Fahd Malik    Since 2022    Senior Vice President of the Adviser
Matthew S. Sheridan    Since 2018    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
36

AB High Yield Portfolio
 
 
INVESTMENT OBJECTIVE
The Fund’s investment objective is to seek to maximize total return consistent with prudent investment management.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
   Advisor Class
Shares
   Class Z
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   4.25%    None    None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    None    None
Exchange Fee
   None    None    None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
      Class A      Advisor Class      Class Z  
Management Fees
     .45%        .45%        .45%  
Distribution and/or Service (12b-1) Fees
     .25%        None        None  
Other Expenses:
        
Transfer Agent
     .11%        .11%        .02%  
Other Expenses
     .80%        .79%        .80%  
  
 
 
    
 
 
    
 
 
 
Total Other Expenses
     .91%        .90%        .82%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses
     1.61%        1.35%        1.27%  
  
 
 
    
 
 
    
 
 
 
Fee Waiver and/or Expense Reimbursement(b)
     (.76)%        (.75)%        (.67)%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement
     .85%        .60%        .60%  
  
 
 
    
 
 
    
 
 
 
                            
 
(a)
Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
The Adviser has contractually agreed to waive fees and/or to bear expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annualized basis, from exceeding 0.85%, 0.60% and 0.60% of average daily net assets, respectively, for Class A, Advisor Class and Class Z shares (“expense limitations”). The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the expense limitations will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
 
37

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
     Class A     Advisor Class     Class Z  
After 1 Year
  $ 508     $ 61     $ 61  
After 3 Years
  $ 840     $ 354     $ 336  
After 5 Years
  $ 1,195     $ 668     $ 633  
After 10 Years
  $ 2,193     $ 1,558     $ 1,475  
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 48% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities rated Ba1 or lower by Moody’s Investors Service (“Moody’s”), or BB+ or lower by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or the equivalent by any nationally recognized statistical rating organization (“NRSRO”) (commonly known as “junk bonds”); unrated securities considered by the Adviser to be of comparable quality; and related derivatives.
The Fund may invest in fixed-income securities with a range of maturities from short- to long-term. The Fund may also invest in equity securities.
In selecting securities for purchase or sale by the Fund, the Adviser attempts to take advantage of inefficiencies that it believes exist in the global debt markets. These inefficiencies arise from investor behavior, market complexity, and the investment limitations to which investors are subject. The Adviser combines quantitative analysis with fundamental credit and economic research in seeking to exploit these inefficiencies.
The Fund invests most often in securities of U.S. issuers, but may also purchase fixed-income securities of foreign issuers, including securities denominated in foreign currencies and securities of emerging market issuers. The Adviser may or may not hedge any foreign currency exposure through the use of currency-related derivatives.
The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps, to a significant extent, subject to the limits of applicable law. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may, for example, use credit default and interest rate swaps to gain exposure to the fixed-income markets or particular fixed-income securities and, as noted above, may use currency-related derivatives. The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure substantially in excess of the Fund’s net assets.
PRINCIPAL RISKS
 
Market Risk: The value of the Fund’s assets will fluctuate as the 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 
 
38

 
guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
 
Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. 
 
 
Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. 
 
 
Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value, or 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. 
 
 
Foreign (Non-U.S.) Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors. 
 
 
Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties. 
 
 
Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns. 
 
 
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. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over ten years; and 
 
 
how the Fund’s average annual returns for one, five and ten years compare to those of a broad-based securities market index. 
You may obtain updated performance information on the website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Performance information prior to July 26, 2016 shown below reflects the historical performance of the AB High-Yield Portfolio, a series of The AB Pooling Portfolios (the “Accounting Survivor”). Upon completion of a reorganization of the Accounting Survivor into the Fund on July 26, 2016 (the “Reorganization”), Class Z shares of the Fund assumed the performance and financial history of the Accounting Survivor. Because the Fund has higher expenses than the Accounting Survivor had, the Accounting Survivor’s performance would have been lower than 
 
39

that shown had it operated with the Fund’s current expense levels. At the time of the Reorganization, the Accounting Survivor and the Fund had substantially similar investment objectives and strategies. 
From February 26, 2018 through April 29, 2021, the Fund had a performance-based, or fulcrum, advisory fee. Accordingly, performance information shown below during this period reflects performance fee adjustments and would have been different if the Fund had been managed under the current advisory fee arrangement. Class A and Class Z shares of the Fund were not in operation during this period. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Advisor Class shares, which reflect the performance of the Accounting Survivor’s shares prior to July 26, 2016, adjusted to reflect the expenses of the Advisor Class shares.
 
 
LOGO  
 
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 11.71%, 2nd quarter, 2020; and Worst Quarter was down -14.01%, 1st quarter, 2020. 
Performance Table 
Average Annual Total Returns
(For the periods ended December 31, 2022)
 
           1 Year        5 Years        10 Years       
Advisor Class*   Return Before Taxes      -11.70%          2.79%          4.25%    
 
 
  Return After Taxes on Distributions**      -14.16%          0.29%          1.44%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares**      -6.90%          1.10%          2.00%      
Class A***   Return Before Taxes      -15.66%          1.64%          3.99%      
Class Z****   Return Before Taxes      -11.70%          2.78%          4.25%      
Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index*****
(reflects no deduction for fees, expenses, or taxes)
     -11.18%          2.30%          4.03%      
Markit iBoxx USD Liquid High Yield Index*****
(reflects no deduction for fees, expenses, or taxes)
     -10.74%          1.96%          3.34%      
 
*
For Advisor Class shares, performance for the period prior to the Reorganization reflects the performance of the Accounting Survivor’s shares, adjusted to reflect the expenses of the Advisor Class shares of the Fund. Advisor Class shares of the Fund have been in operation since July 26, 2016.
 
**
After-tax Returns:
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
***
For Class A shares, performance for the period prior to the Reorganization reflects the performance of the Accounting Survivor’s shares and the period from February 26, 2018 until April 30, 2021 reflects the performance of the Fund’s Advisor Class shares, adjusted to reflect the expenses of the Class A shares of the Fund. Class A shares of the Fund were in operation during the period from July 26, 2016, until February 26, 2018, and resumed operations on April 30, 2021.
 
****
For Class Z shares, performance for the period prior to the Reorganization reflects the performance of the Accounting Survivor’s shares, which were exchanged for Class Z shares of the Fund in the Reorganization. In addition, performance for the period from February 26, 2018 until April 30, 2021 reflects the performance of the Fund’s Advisor Class shares, adjusted to reflect the expenses of the Class Z shares of the Fund. Class Z shares of the Fund were in operation during the period from July 26, 2016, until February 26, 2018, and resumed operations on April 30, 2021.
 
*****
Effective April 30, 2021, the broad-based index used for comparing the Fund’s performance changed from the Markit iBoxx USD Liquid High Yield Index to the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index in connection with the elimination of a performance (fulcrum) fee arrangement for the Fund.
 
40

INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Gershon M. Distenfeld    Since 2014    Senior Vice President of the Adviser
Robert Schwartz    Since 2022    Senior Vice President of the Adviser
William Smith    Since 2018    Senior Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
41

TAX-AWARE
 
 
AB Tax-Aware Fixed Income Opportunities Portfolio
 
INVESTMENT OBJECTIVE
The investment objective of the Fund is to seek to maximize after-tax return and income.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may be required to pay commissions and/or other forms of compensation to a broker for transactions in Advisor Class shares, which are not reflected in the tables or the examples below. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AB Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Funds—Sales Charge Reduction Programs for Class A Shares on page 67 of this Prospectus, in Appendix C—Financial Intermediary Waivers of this Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 134 of the Fund’s Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
 
      Class A
Shares
  
Class C
Shares
 
Advisor Class
Shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
   3.00%    None   None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
   None(a)    1.00%(b)   None
Exchange Fee
   None    None   None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 
      Class A      Class C      Advisor Class  
Management Fees
     .45%        .45%        .45%  
Distribution and/or Service (12b-1) Fees
     .25%        1.00%        None  
Other Expenses:
        
Transfer Agent
     .02%        .02%        .02%  
Interest Expense
     .01%        .01%        .01%  
Other Expenses
     .18%        .18%        .18%  
  
 
 
    
 
 
    
 
 
 
Total Other Expenses
     .21%        .21%        .21%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses
     .91%        1.66%        .66%  
  
 
 
    
 
 
    
 
 
 
Fee Waiver and/or Expense Reimbursement(c)
     (.15)%        (.15)%        (.15)%  
  
 
 
    
 
 
    
 
 
 
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement(d)
     .76%        1.51%        .51%  
  
 
 
    
 
 
    
 
 
 
   
 
(a)
Purchases of Class A shares in amounts of $500,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC, which may be subject to waiver in certain circumstances.
 
(b)
For Class C shares, the CDSC is 0% after the first year. Class C shares automatically convert to Class A shares after eight years.
 
(c)
The Adviser has contractually agreed to waive its management fees and/or to bear expenses of the Fund until January 31, 2024 to the extent necessary to prevent total Fund operating expenses (excluding expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annualized basis, from exceeding .75%, 1.50% and .50% of average daily net assets, respectively, for Class A, Class C and Advisor Class shares (“expense limitations”). The expense limitations will remain in effect until January 31, 2024 and may only be terminated or changed with the consent of the Fund’s Board of Directors. In addition, the agreement will be automatically extended for one-year terms unless the Adviser provides notice of termination to the Fund at least 60 days prior to the end of the period.
 
(d)
If interest expense were excluded, net expenses would be as follows:
 
Class A     Class C     Advisor Class  
  .75%       1.50%       .50%  
 
42

Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year, that the Fund’s operating expenses stay the same and that any fee waiver and/or expense limitation is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
 
      Class A      Class C      Advisor Class  
After 1 Year
   $ 375      $ 254    $ 52  
After 3 Years
   $ 567      $ 509      $ 196  
After 5 Years
   $ 775      $ 888      $ 353  
After 10 Years
   $ 1,373      $ 1,753      $ 808  
 
*
If you did not redeem your shares at the end of the period, your expenses would be decreased by approximately $100.
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 33% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund pursues its objective by investing principally in a national portfolio of both municipal and taxable fixed-income securities. The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund also invests, under normal circumstances, at least 65% of its total assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax (“AMT”) for certain taxpayers. The income earned and distributed to shareholders on non-municipal securities would not be exempt from federal income tax. The Fund may invest in fixed-income securities rated below investment grade (commonly known as “junk bonds”), although such securities are not expected to be the Fund’s primary focus.
The Adviser selects securities for the Fund based on a variety of factors, including credit quality, maturity, diversification benefits, and the relative expected after-tax returns of taxable and municipal securities (considering federal tax rates and without regard to state and local income taxes). As the objective is to increase the after-tax return of the Fund, an investor in the Fund may incur a tax liability that will generally be greater than the same investor would have in a fund investing exclusively in municipal securities, and that will be higher if the investor is in a higher tax bracket. In addition, the tax implications of the Fund’s trading activity, such as realizing taxable gains, are considered in making purchase and sale decisions for the Fund. The Fund may invest in fixed-income securities of any maturity from short- to long-term.
The Fund may also invest in forward commitments, zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities.
The Fund may use derivatives, such as swaps, options, futures contracts and forwards, to achieve its investment strategies. For example, the Fund may enter into tender option bonds (“TOBs”) and credit default and interest rate swaps relating to municipal and taxable fixed-income securities or securities indices. Derivatives may provide more efficient and economical exposure to fixed-income securities markets than direct investments.
PRINCIPAL RISKS
 
Market Risk: The value of the Fund’s assets will fluctuate as the 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. 
 
 
Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 
 
 
Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities. 
 
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Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, and the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may worsen, adversely affecting the performance of the Fund. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities. 
In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets. 
The Fund invests, from time to time, in the municipal securities of Puerto Rico or other U.S. territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other U.S. issuers of municipal securities. Puerto Rico continues to face a very challenging economic and fiscal environment, worsened by the spread of COVID-19 and the adverse effect that related governmental and public responses have had on Puerto Rico’s economy. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may deteriorate further. 
 
 
Tax Risk: From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. 
 
 
Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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. 
 
 
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. 
 
 
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 and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets. 
 
 
Leverage Risk: To the extent the Fund uses leveraging techniques, its 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 
 
44

 
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. 
 
 
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. 
As with all investments, you may lose money by investing in the Fund. 
BAR CHART AND PERFORMANCE INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by showing:
  
 
how the Fund’s performance changed from year to year over the life of the Fund; and 
 
 
how the Fund’s average annual returns for one year, five years and since inception compare to those of a broad-based securities market index. 
You may obtain updated performance information on the Fund’s website at www.abfunds.com (click on “Investments—Mutual Funds”). 
The Fund’s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 
Bar Chart
The annual returns in the bar chart are for the Fund’s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
 
 
LOGO  
During the period shown in the bar chart, the Fund’s: 
Best Quarter was up 5.23%, 4th quarter, 2020; and Worst Quarter was down -8.33%, 1st quarter, 2020. 
Performance Table 
Average Annual Total Returns
(For the period ended December 31, 2022)
 
           1 Year        5 Years        Since
Inception*
      
Class A**   Return Before Taxes      -12.29%          0.97%          2.23%    
 
 
  Return After Taxes on Distributions      -12.41%          0.78%          2.08%    
 
 
    Return After Taxes on Distributions and Sale of Fund Shares      -6.56%          1.15%          2.11%      
Class C   Return Before Taxes      -11.15%          0.82%          1.81%      
Advisor Class   Return Before Taxes      -9.36%          1.83%          2.83%      
Bloomberg Municipal Bond Unhedged Index
(reflects no deduction for fees, expenses or taxes)
     -8.53%          1.25%          2.64%      
 
*
Inception date for all Classes is 12/11/13.
 
**
After-tax returns:
 
 
Are shown for Class A shares only and will vary for the other Classes of shares because these Classes have different expense ratios;
 
 
Are an estimate, which is based on the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor’s tax situation and are likely to differ from those shown; and
 
 
Are not relevant to investors who hold Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
 
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INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Fund’s portfolio:
 
Employee    Length of Service    Title
Daryl Clements    Since September 2022    Senior Vice President of the Adviser
Terrance T. Hults    Since 2013    Senior Vice President of the Adviser
Matthew J. Norton    Since 2017    Senior Vice President of the Adviser
Andrew D. Potter    Since 2018    Vice President of the Adviser
ADDITIONAL INFORMATION
For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES, page 47 in this Prospectus.
 
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ADDITIONAL INFORMATION ABOUT PURCHASE AND SALE OF FUND SHARES, TAXES AND FINANCIAL INTERMEDIARIES
 
   
PURCHASE AND SALE OF FUND SHARES
Purchase Minimums
The following table describes the initial and subsequent minimum purchase amounts for each class of shares, which are subject to waiver in certain circumstances.
 
      Initial    Subsequent
Class A/Class C shares, including traditional IRAs and Roth IRAs    $2,500    $50
Automatic Investment Program    None   
$50
If initial minimum investment is
less than $2,500, then $200
monthly until account balance
reaches $2,500
Advisor Class shares (only available to fee-based programs or through other limited arrangements and certain commission-based brokerage arrangements)    None    None
Class A, Class R, Class K, Class I and Class Z shares are available at NAV, without an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans and, for Class Z shares, to persons participating in certain fee-based programs sponsored by a financial intermediary, where in each case plan level or omnibus accounts are held on the books of a Fund.    None    None
You may sell (redeem) your shares each day the New York Stock Exchange (the “Exchange”) is open. You may sell your shares through your financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone (800-221-5672).
 
   
TAX INFORMATION
Each Fund may pay income dividends or make capital gains distributions, which may be subject to federal income taxes and taxable as ordinary income or capital gains, and may also be subject to state and local taxes.
 
   
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of a Fund through a broker-dealer or other financial intermediary (such as a bank or a group retirement plan), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
 
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ADDITIONAL INFORMATION ABOUT THE FUNDS’ STRATEGIES, RISKS AND INVESTMENTS
 
 
This section of the Prospectus provides additional information about the Funds’ investment strategies, practices and related risks, including principal and non-principal strategies and risks. This Prospectus does not describe all of a Fund’s investment practices that are non-principal strategies or all of the related risks of such strategies; additional information about each Fund’s risks and investments can be found in the Funds’ SAI.
ESG Integration
The Adviser integrates environmental, social and corporate governance (“ESG”) considerations into its research and investments analysis with the goal of maximizing return and considering risk within the Fund’s investment objective and strategies. Combining third-party ESG data with its own views and research, the Adviser analyzes the ESG practices of companies and issuers to identify potentially material ESG factors that can vary across companies and issuers. ESG considerations may include but are not limited to environmental impact, corporate governance and ethical business practices. ESG considerations may not be applicable to all types of instruments or investments.
For additional information with respect to the ESG integration for the AB Sustainable Thematic Credit Portfolio, please refer to the Fund’s Principal Strategies section in this Prospectus.
Sustainable Investment Themes
The AB Sustainable Thematic Credit Portfolio’s sustainable investment themes include the advancement of health, climate, and empowerment, and align with one or more of the SDGs.
The SDGs, adopted by 193 countries in 2015, are the world’s shared plan to end extreme poverty, reduce inequality, and protect the planet by 2030. The SDGs are a collection of 17 global goals: no poverty; zero hunger; good health and well-being; quality education; gender equality; clean water and sanitation; affordable and clean energy; decent work and economic growth; industry, innovation, and infrastructure; reduced inequalities; sustainable cities and communities; responsible consumption and production; climate action; life below water; life on land; peace, justice and strong institutions; and partnerships for the goals.
The SDGs provide the Adviser a helpful framework for identifying sustainable investment themes and potential investments. The Fund’s Climate theme investments include companies that improve overall resource efficiency and provide environmentally positive solutions in fields such as energy production, manufacturing, construction, transportation, agriculture and sanitation. The Fund’s Climate theme, for example, aligns with SDGs such as climate action; affordable and clean energy; and clean water and sanitation. The Fund’s Health theme investments include companies that develop innovative health treatments and therapies, broaden access to high-quality and affordable care, ensure a steady supply of nutritious food and clean water, and promote overall physical and emotional well‑being. The Fund’s Health theme aligns with SDGs such as good health and well-being; and clean water and sanitation. The Fund’s Empowerment theme investments include companies that provide the physical, financial and technological infrastructure and services that allow more people to gain control of their lives by enabling sustainable economic development, employment growth, poverty eradication, knowledge sharing and social inclusion. The Fund’s Empowerment theme aligns with SDGs such as quality education; decent work and economic growth; and no poverty.
ESG Bonds
“Use of Proceeds” bonds are instruments the proceeds of which are specifically earmarked for environmental, social or sustainability projects. “Green” bonds are bonds whose proceeds are used principally for climate change mitigation, climate adaptation or other environmentally beneficial projects, such as, but not limited to, the development of renewable energy sources, energy efficiency, pollution prevention or mitigation, biodiversity conservation, and preservation of natural resources. Sustainability-linked bonds are instruments where the proceeds are for general purposes but the bond features (e.g., coupon rate or principal) may adjust based on whether the company meets a specific key performance indicator related to sustainability. For example, a company may pay a financial penalty (e.g., a higher bond coupon) and an investor may receive a corresponding benefit if the company fails to meet a particular ESG target related to emissions reductions.
Investment in ESG bonds involves certain risks. ESG bonds may face challenges such as a limited number of issuers and limited liquidity in the market, including a lack of a robust secondary market. In addition, some ESG investments may be dependent on government tax incentives and subsidies and on political support for certain environmental technologies and companies.
Market Risk
The market value of a security may move up or down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Global economies and financial markets are increasingly interconnected, which increases the probabilities that conditions in one country or region might adversely impact issuers in a different country or region. Conditions affecting the general economy, including interest rate levels and political, social, or economic instability at the local, regional, or global level may also affect the market value of a security. Health crises, such as pandemic and epidemic diseases, as well as other incidents that interrupt the expected course of events, such as natural disasters, including fires, earthquakes and flooding, war or civil disturbance, acts of terrorism, supply chain disruptions, power outages and other unforeseeable and external events, and the public response to or fear of such diseases or events, have had, and may in the future have, an adverse
 
48

effect on a Fund’s investments and net asset value and can lead to increased market volatility. For example, the diseases or events themselves or any preventative or protective actions that governments may take in respect of such diseases or events may result in periods of business disruption, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for a Fund’s portfolio companies. The occurrence and pendency of such diseases or events could adversely affect the economies and financial markets either in specific countries or worldwide. Rates of inflation have recently risen. The value of assets or income from an investment may be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of a Fund’s assets may decline.
Derivatives
Each Fund may, but is not required to, use derivatives for hedging or other risk management purposes or as part of its investment strategies. Derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. A Fund may use derivatives to earn income and enhance returns, to hedge or adjust the risk profile of its investments, to replace more traditional direct investments and to obtain exposure to otherwise inaccessible markets.
There are four principal types of derivatives—options, futures contracts, forwards and swaps—each of which is described below. Derivatives include listed and cleared transactions where a Fund’s derivatives trade counterparty is an exchange or clearinghouse and non-cleared bilateral “over-the-counter” transactions that are privately negotiated and where a Fund’s derivatives trade counterparty is a financial institution. Exchange-traded or cleared derivatives transactions tend to be subject to less counterparty credit risk than those that are bilateral and privately negotiated.
A Fund’s use of derivatives may involve risks that are different from, or possibly greater than, the risks associated with investing directly in securities or other more traditional instruments. These risks include the risk that the value of a derivative instrument may not correlate perfectly, or at all, with the value of the assets, reference rates, or indices that they are designed to track. Other risks include: the possible absence of a liquid secondary market for a particular instrument and possible exchange-imposed price fluctuation limits, either of which may make it difficult or impossible to close out a position when desired; and the risk that the counterparty will not perform its obligations. Certain derivatives may have a leverage component and involve leverage risk. Adverse changes in the value or level of the underlying asset, note or index can result in a loss substantially greater than the Fund’s investment (in some cases, the potential loss is unlimited).
The Funds’ investments in derivatives may include, but are not limited to, the following:
 
 
Forward Contracts. A forward contract is an agreement that obligates one party to buy, and the other party to sell, a specific quantity of an underlying commodity or other tangible asset for an agreed-upon price at a future date. A forward contract generally is settled by physical delivery of the commodity or tangible asset to an agreed-upon location (rather than settled by cash), or is rolled forward into a new forward contract or, in the case of a non-deliverable forward, by a cash payment at maturity. The Funds’ investments in forward contracts may include the following:
 
 
Forward Currency Exchange Contracts. A Fund may purchase or sell forward currency exchange contracts for hedging purposes to minimize the risk from adverse changes in the relationship between the U.S. Dollar and other currencies or for non-hedging purposes as a means of making direct investments in foreign currencies as described below under “Other Derivatives and Strategies—Currency Transactions”. A Fund, for example, may enter into a forward contract as a transaction hedge (to “lock in” the U.S. Dollar price of a non-U.S. Dollar security), as a position hedge (to protect the value of securities the Fund owns that are denominated in a foreign currency against substantial changes in the value of the foreign currency) or as a cross-hedge (to protect the value of securities the Fund owns that are denominated in a foreign currency against substantial changes in the value of that foreign currency by entering into a forward contract for a different foreign currency that is expected to change in the same direction as the currency in which the securities are denominated).
 
 
Futures Contracts and Options on Futures Contracts. A futures contract is a standardized, exchange-traded agreement that obligates the buyer to buy and the seller to sell a specified quantity of an underlying asset (or settle for cash the value of a contract based on an underlying asset, rate or index) at a specific price on the contract maturity date. Options on futures contracts are options that call for the delivery of futures contracts upon exercise. A Fund may purchase or sell futures contracts and options thereon to hedge against changes in interest rates, securities (through index futures or options) or currencies. A Fund may also purchase or sell futures contracts for foreign currencies or options thereon for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Other Derivatives and Strategies—Currency Transactions”.
 
 
Options. An option is an agreement that, for a premium payment or fee, gives the option holder (the buyer) the right but not the obligation to buy (a “call option”) or sell (a “put option”) the underlying asset (or settle for cash an amount based on an underlying asset, rate or index) at a specified price (the exercise price) during a period of time or on a specified date. Investments in options are considered speculative. A Fund may lose the premium paid for them if the price of the underlying security or other asset decreased or remained the same (in the case of a call option) or increased or remained the same (in the case of a put option). If a put or call option purchased by a Fund were permitted to expire
 
49

 
without being sold or exercised, its premium would represent a loss to the Fund. The Funds’ investments in options include the following:
 
 
Options on Foreign Currencies—A Fund may invest in options on foreign currencies that are privately negotiated or traded on U.S. or foreign exchanges for hedging purposes to protect against declines in the U.S. Dollar value of foreign currency denominated securities held by a Fund and against increases in the U.S. Dollar cost of securities to be acquired. The purchase of an option on a foreign currency may constitute an effective hedge against fluctuations in exchange rates, although if rates move adversely, a Fund may forfeit the entire amount of the premium plus related transaction costs. A Fund may also invest in options on foreign currencies for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Other Derivatives and Strategies—Currency Transactions”.
 
 
Options on Securities. A Fund may purchase or write a put or call option on securities. A Fund may write covered options, which means writing an option for securities the Fund owns, and uncovered options.
 
 
Options on Securities Indices. An option on a securities index is similar to an option on a security except that, rather than taking or making delivery of a security at a specified price, an option on a securities index gives the holder the right to receive, upon exercise of the option, an amount of cash if the closing level of the chosen index is greater than (in the case of a call) or less than (in the case of a put) the exercise price of the option.
 
 
Swap Transactions—A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals (payment dates) based upon or calculated by reference to changes in specified prices or rates (e.g., interest rates in the case of interest rate swaps or currency exchange rates in the case of currency swaps) for a specified amount of an underlying asset (the “notional” principal amount). Generally, the notional principal amount is used solely to calculate the payment stream, but is not exchanged. Most swaps are entered into on a net basis (i.e., the two payment streams are netted out, with a Fund receiving or paying, as the case may be, only the net amount of the two payments). Payments received by AB Tax-Aware Fixed Income Opportunities Portfolio from swap agreements will result in taxable income, either as ordinary income or capital gains, rather than tax-exempt income, which will increase the amount of taxable distributions received by shareholders. Certain standardized swaps, including certain interest rate swaps and credit default swaps, are subject to mandatory central clearing and are required to be executed through a regulated swap execution facility. 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. Funds post initial and variation margin to support their obligations under cleared swaps by making payments to their clearing member FCMs. Central clearing is intended to reduce counterparty credit risks and increase liquidity, but central clearing does not make swap transactions risk free. The Securities and Exchange Commission (the “SEC”) may adopt similar clearing and execution requirements in respect of certain security-based swaps under its jurisdiction. Privately negotiated swap agreements are two-party contracts entered into primarily by institutional investors and are not cleared through a third party, nor are these required to be executed on a regulated swap execution facility. The Funds’ investments in swap transactions include the following:
 
 
Interest Rate Swaps, Swaptions, Caps and Floors. Interest rate swaps involve the exchange by a Fund with another party of payments calculated by reference to specified interest rates (e.g., an exchange of floating-rate payments for fixed-rate payments). Unless there is a counterparty default, the risk of loss to the Fund from interest rate swap transactions is limited to the net amount of interest payments that the Fund is contractually obligated to make. If the counterparty to an interest rate swap transaction defaults, the Fund’s risk of loss consists of the net amount of interest payments that the Fund contractually is entitled to receive.
An option on a swap agreement, also called a “swaption”, is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties.
The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payments of interest on a contractually-based principal amount from the party selling the interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on an agreed principal amount from the party selling the interest rate floor. It may be more difficult for a Fund to trade or close out interest rate caps and floors in comparison to other types of swaps.
There is no limit on the amount of interest rate transactions that may be entered into by a Fund. The value of these transactions will fluctuate based on changes in interest rates.
Interest rate swap, swaption, cap and floor transactions may, for example, be used in an effort to preserve a return or spread on a particular investment or a portion of a Fund’s portfolio or to protect against an increase in the
 
50

price of securities a Fund anticipates purchasing at a later date. Interest rate swaps may also be used to leverage a Fund’s investments by creating positions that are functionally similar to purchasing a municipal or other fixed-income security but may only require payments to a swap counterparty under certain circumstances and allow the Fund to efficiently increase (or decrease) its duration and income.
 
 
Inflation (CPI) Swaps. Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swap agreements may be used to protect the NAV of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if inflation increases. A Fund will enter into inflation swaps on a net basis. The values of inflation swap agreements are expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in value of an inflation swap agreement.
 
 
Credit Default Swap Agreements. The “buyer” in a credit default swap contract is obligated to pay the “seller” a periodic stream of payments over the term of the contract in return for a contingent payment upon the occurrence of a credit event with respect to an underlying reference obligation. Generally, a credit event means bankruptcy, failure to pay, obligation acceleration or restructuring. A Fund may be either the buyer or seller in the transaction. If a Fund is a seller, the Fund receives a fixed rate of income throughout the term of the contract, which typically is between one month and ten years, provided that no credit event occurs. If a credit event occurs, a Fund, as seller, typically must pay the contingent payment to the buyer, which will be either (i) the “par value” (face amount) of the reference obligation, in which case the Fund will receive the reference obligation in return or (ii) an amount equal to the difference between the face amount and the current market value of the reference obligation. As a buyer, if a credit event occurs, the Fund would be the receiver of such contingent payments, either delivering the reference obligation in exchange for the full notional (face) value of a reference obligation that may have little or no value, or receiving a payment equal to the difference between the face amount and the current market value of the obligation. The current market value of the reference obligation is typically determined via an auction process sponsored by the International Swaps and Derivatives Association, Inc. The periodic payments previously received by the Fund, coupled with the value of any reference obligation received, may be less than the full amount it pays to the buyer, resulting in a loss to the Fund. If a Fund is a buyer and no credit event occurs, the Fund will lose its periodic stream of payments over the term of the contract. However, if a credit event occurs, the buyer typically receives full notional value for a reference obligation that may have little or no value.
Credit default swaps may involve greater risks than if a Fund had invested in the reference obligation directly. Credit default swaps are subject to general market risk and credit risk and may be illiquid.
 
 
Currency Swaps. A Fund may invest in currency swaps for hedging purposes to protect against adverse changes in exchange rates between the U.S. Dollar and other currencies or for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Other Derivatives and Strategies—Currency Transactions”. Currency swaps involve the exchange by a Fund with another party of a series of payments in specified currencies. Currency swaps may be bilateral and privately negotiated with the Fund expecting to achieve an acceptable degree of correlation between its portfolio investments and its currency swaps position. Currency swaps may involve the exchange of actual principal amounts of currencies by the counterparties at the initiation, and again upon the termination, of the transaction.
 
 
Total Return Swaps. A Fund may enter into total return swaps, under which one party agrees to pay the other the total return of a defined underlying asset, such as a security or basket of securities, or non-asset reference, such as a securities index, during the specified period in return for periodic payments based on a fixed or variable interest rate or the total return from different underlying assets or references. Total return swaps could result in losses if the underlying asset or reference does not perform as anticipated. Total return swaps may reflect a leveraged investment and incorporate borrowing costs which are borne by the Fund. There is no guarantee that the Fund’s investment via a total return swap will deliver returns in excess of the embedded borrowing costs and, accordingly, the Fund’s performance may be less than would be achieved by a direct investment in the underlying reference asset.
 
 
Variance and Correlation Swaps. A Fund may enter into variance or correlation swaps to hedge market risk or adjust exposure to the volatility of the securities markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on an underlying asset or index. “Variance” as used here is defined as the sum of the square of the returns on the reference asset or index (which in effect is a measure of its “volatility”) over the length of the contract term. The parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility. Correlation swaps are contracts in which two parties agree to exchange cash payments based on the differences between the stated and the actual correlation realized on the underlying securities within a given index. “Correlation” as
 
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used here is defined as the weighted average of the correlations between the daily returns of each pair of securities within a given index. If two assets are said to be closely correlated, it means that their daily returns vary in similar proportions or along similar trajectories.
 
 
Other Derivatives and Strategies—
 
 
Eurodollar Instruments. Eurodollar instruments are essentially U.S. Dollar-denominated futures contracts or options that are linked to the London Interbank Offered Rate (LIBOR) or other reference rate. Eurodollar futures contracts enable purchasers to obtain a fixed rate for the lending of funds and sellers to obtain a fixed rate for borrowings. 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. See “LIBOR Transition and Associated Risk” below for additional information.
 
 
Currency Transactions. A Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or un-hedged basis. The Adviser may actively manage a Fund’s currency exposures and 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 contracts and options on futures contracts, swaps and options. The Adviser 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 a 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. A 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).
Convertible Securities
Prior to conversion, convertible securities have the same general characteristics as non-convertible debt securities, which generally provide a stable stream of income with generally higher yields than those of equity securities of the same or similar issuers. The price of a convertible security will normally vary with changes in the price of the underlying equity security, although the higher yield tends to make the convertible security less volatile than the underlying equity security. As with debt securities, the market value of convertible securities tends to decrease as interest rates rise and increase as interest rates decline. While convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar quality, they offer investors the potential to benefit from increases in the market prices of the underlying common stock. Convertible debt securities that are rated Baa3 or lower by Moody’s Investors Service (“Moody’s”), or BBB- or lower by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or the equivalent rating by any other nationally recognized statistical rating organization (“NRSRO”), and comparable unrated securities may share some or all of the risks of debt securities with those ratings. For a description of credit ratings, see Appendix A—Bond Ratings.
Depositary Receipts and Securities of Supranational Entities
A Fund, except AB Tax-Aware Fixed Income Opportunities Portfolio, may invest in depositary receipts. American Depositary Receipts, or ADRs, are depositary receipts typically issued by a U.S. bank or trust company that evidence ownership of underlying securities issued by a foreign corporation. Global Depositary Receipts, or GDRs, European Depositary Receipts, or EDRs, and other types of depositary receipts are typically issued by non-U.S. banks or trust companies and evidence ownership of underlying securities issued by either a U.S. or a non-U.S. company. Depositary receipts may not necessarily be denominated in the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying unsponsored depositary receipts are not obligated to disclose material information in the United States. Generally, depositary receipts in registered form are designed for use in the U.S. securities markets, and depositary receipts in bearer form are designed for use in securities markets outside of the United States. For purposes of determining the country of issuance, investments in depositary receipts of either type are deemed to be investments in the underlying securities.
A supranational entity is an entity designated or supported by the national government of one or more countries to promote economic reconstruction or development. Examples of supranational entities include the World Bank (International Bank for Reconstruction and Development) and the European Investment Bank. “Semi-governmental securities” are securities issued by entities owned by either a national, state or equivalent government or are obligations of one of such government jurisdictions that are not backed by its full faith and credit and general taxing powers.
Event-Linked Securities
Event-linked securities are variable or fixed-rate fixed-income securities or types of equity securities for which the return of principal and payment of interest are contingent on the non-occurrence of various specified catastrophic events, which may be specific trigger events or a diversified group of events, such as hurricanes, typhoons, wind events or earthquakes. The most common type of event-linked fixed-income bonds are known as “catastrophe” or “cat” bonds. If the trigger events do not occur, a Fund will recover its principal and interest. If a trigger event occurs, a Fund may lose a portion of or its entire principal invested in the securities. These securities are generally illiquid and may be rated below investment grade or the unrated equivalent and have the same or equivalent risks as higher yield debt securities (“junk bonds”).
Forward Commitments
Forward commitments for the purchase or sale of securities may include purchases on a when-issued basis or purchases or sales on a delayed delivery basis. In some cases, a forward commitment may be conditioned upon the occurrence of a subsequent event, such as approval and consummation of a
 
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merger, corporate reorganization or debt restructuring or approval of a proposed financing by appropriate authorities (i.e., a “when, as and if issued” trade).
When forward commitments with respect to fixed-income securities are negotiated, the price, which is generally expressed in yield terms, is fixed at the time the commitment is made, but payment for and delivery of the securities take place at a later date. Securities purchased or sold under a forward commitment are subject to market fluctuation and no interest or dividends accrue to the purchaser prior to the settlement date. There is a risk of loss if the value of either a purchased security declines before the settlement date or the security sold increases before the settlement date. The use of forward commitments helps a Fund to protect against anticipated changes in interest rates and prices.
Illiquid Securities
Each Fund limits its investments in illiquid securities to 15% of its net assets. Under Rule 22e-4 under the Investment Company Act of 1940 (the “1940 Act”), the term “illiquid securities” means any security or investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment.
A Fund that invests in illiquid securities may not be able to sell such securities and may not be able to realize their full value upon sale. Restricted securities (securities subject to legal or contractual restrictions on resale) may be illiquid. Some restricted securities (such as securities issued pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A Securities”) or certain commercial paper) may be treated as liquid, although they may be more difficult to trade than other types of securities.
Indexed Commercial Paper
Indexed commercial paper may have its principal linked to changes in foreign currency exchange rates whereby its principal amount is adjusted upwards or downwards (but not below zero) at maturity to reflect changes in the referenced exchange rate. A Fund will receive interest and principal payments on such commercial paper in the currency in which such commercial paper is denominated, but the amount of principal payable by the issuer at maturity will change in proportion to the change (if any) in the exchange rate between the two specified currencies between the date the instrument is issued and the date the instrument matures. While such commercial paper entails the risk of loss of principal, the potential for realizing gains as a result of changes in foreign currency exchange rates enables a Fund to hedge (or cross-hedge) against a decline in the U.S. Dollar value of investments denominated in foreign currencies while providing an attractive money market rate of return. A Fund will purchase such commercial paper for hedging purposes only, not for speculation.
Inflation-Indexed Securities
Inflation-indexed securities are fixed-income securities whose value is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of these securities will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced.
The value of inflation-indexed securities tends to react to changes in real interest rates. In general, the price of inflation-indexed securities can fall when real interest rates rise, and can rise when real interest rates fall. In addition, the value of these securities can fluctuate based on fluctuations in expectations of inflation. Interest payments on these securities can be unpredictable and will vary as the principal and/or interest is adjusted for inflation.
Investment in Exchange-Traded Funds and Other Investment Companies
A Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the 1940 Act, or any applicable rules, exemptive orders or regulatory guidance thereunder. ETFs are pooled investment vehicles that seek to track the performance of a specific index or implement actively-managed investment strategies. Index ETFs will not track their underlying indices precisely since the ETFs have expenses and may need to hold a portion of their assets in cash, unlike the underlying indices, and the ETFs may not invest in all of the securities in the underlying indices in the same proportion as the indices for varying reasons. Unlike index ETFs, actively-managed ETFs generally seek to outperform a benchmark index, and they typically have higher expenses than index ETFs, which can lower investment returns. Both index ETFs and actively-managed ETFs may offer exposure to broad investment strategies and across various asset classes, including equity, fixed income, commodities and currencies. A Fund will incur transaction costs when buying and selling ETF shares, and indirectly bear the expenses of the ETFs. In addition, the market value of an ETF’s shares, which is based on supply and demand in the market for the ETF’s shares, may differ from its NAV. Accordingly, there may be times when an ETF’s shares trade at a discount to its NAV.
A Fund may also invest in investment companies other than ETFs, as permitted by the 1940 Act or the rules and regulations or exemptive orders thereunder. As with ETF investments, if the Fund acquires shares in other investment companies, shareholders would bear, indirectly, the expenses of such investment companies (which may include management and advisory fees), which to the extent not waived or reimbursed, would be in addition to the Fund’s expenses. The Funds intend to invest uninvested cash balances in an affiliated money market fund as permitted by Rule 12d1-1 under the 1940 Act. A Fund’s investment in other investment companies, including ETFs, subjects the Fund indirectly to the underlying risks of those investment companies.
LIBOR Transition and Associated Risk
A 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 FCA, which regulates LIBOR, announced a desire to phase out the use of
 
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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 that contracts with 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 a Fund’s performance and/or net asset value. 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 a 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.
Loan Participations and Assignments
A Fund may invest in loans (which may be syndicated) to corporate, governmental or other borrowers, either by participating as co-lender at the time the loan is originated or by buying an interest in the loan in the secondary market from a financial institution or institutional investor. The financial status of an institution interposed between a Fund and a borrower may affect the ability of the Fund to receive principal and interest payments.
The success of a Fund may depend on the skill with which an agent bank administers the terms of the corporate loan agreements, monitors borrower compliance with covenants, collects principal, interest and fee payments from borrowers and, where necessary, enforces creditor remedies against borrowers. Agent banks typically have broad discretion in enforcing loan agreements.
The lack of a liquid secondary market may have an adverse impact on the value of loan participations and assignments and a Fund’s ability to dispose of such investments when necessary to meet the Fund’s liquidity needs in response to a specific economic event such as a deterioration in the creditworthiness of the borrower. The lack of a liquid secondary market for loan assignments and participations also may make it more difficult for the Fund to assign a value to these investments for purposes of valuing the Fund’s portfolio and calculating its asset value.
Mortgage-Related Securities, Other Asset-Backed Securities and Structured Securities
A Fund may invest in mortgage-related or other asset-backed securities. Mortgage-related securities include mortgage pass‑through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in or are secured by and payable from mortgage loans on real property. These securities may be issued or guaranteed by the U.S. Government or one of its sponsored entities or may be issued by private organizations.
The value of mortgage-related or other asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early payments of principal on some mortgage-related securities may occur during periods of falling mortgage interest rates and expose a Fund to a lower rate of return upon reinvestment of principal. Early payments associated with mortgage-related securities cause these securities to experience significantly greater price and yield volatility than is experienced by traditional fixed-income securities. During periods of rising interest rates, a reduction in prepayments may increase the effective life of mortgage-related securities, subjecting them to greater risk of decline in market value in response to rising interest rates. If the life of a mortgage-related security is inaccurately predicted, a Fund may not be able to realize the rate of return it expected.
One type of SMBS has one class receiving all of the interest from the mortgage assets (the interest-only, or “IO” class),
 
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while the other class will receive all of the principal (the principal-only, or “PO” class). The yield to maturity on an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on a Fund’s yield to maturity from these securities.
Another type of mortgage-related security, known as a Government Sponsored Enterprise (“GSE”) Risk-Sharing Bond or Credit Risk Transfer Security (“CRT”), is issued by GSEs (and sometimes banks or mortgage insurers) and structured without any government or GSE guarantee in respect of borrower defaults or underlying collateral. The risks associated with an investment in CRTs differ from the risks associated with an investment in mortgage-backed securities issued by GSEs because, in CRTs, some or all of the credit risk associated with the underlying mortgage loans is transferred to the end-investor.
A Fund may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”), and other similarly structured securities. CBOs and CLOs are types of asset-backed securities. A CBO is a trust that is backed by a diversified pool of high-risk, below investment grade fixed-income securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. A Fund may invest in other types of asset-backed securities that have been offered to investors.
The securitization techniques used to develop mortgage-related securities are being applied to a broad range of financial assets. Through the use of trusts and special purpose corporations, various types of assets, including automobile loans and leases, credit card receivables, home equity loans, equipment leases and trade receivables, are being securitized in structures similar to the structures used in mortgage securitizations.
A Fund may also invest in various types of structured securities and basket securities. Structured securities are securities issued in structured financing transactions, which generally involve aggregating types of debt assets in a pool or special purpose entity and then issuing new securities. Types of structured financings include securities described elsewhere in this Prospectus, such as mortgage-related and other asset-backed securities. A Fund’s investments include investments in structured securities that represent interests in entities organized and operated solely for the purpose of restructuring the investment characteristics of particular debt obligations. This type of restructuring involves the deposit with or purchase by an entity, such as a corporation or trust, of specified instruments (such as commercial bank loans or high-yield bonds) and the issuance by that entity of one or more classes of structured securities backed by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among the newly issued structured securities to create securities with different investment characteristics such as varying maturities, payment priorities and interest rate provisions, and the extent of the payments made with respect to structured securities is dependent on the extent of the cash flow from the underlying instruments. Structured securities of a given class may be either subordinated or un-subordinated to the payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities.
Basket securities in which a Fund may invest may consist of entities organized and operated for the purpose of holding a basket of other securities. Baskets involving debt obligations may be designed to represent the characteristics of some portion of the debt securities market or the entire debt securities market.
Municipal Securities
The two principal classifications of municipal securities are bonds and notes. Municipal bonds are intended to meet longer-term capital needs while municipal notes are intended to fulfill short-term capital needs. Municipal notes generally have original maturities not exceeding one year. Municipal notes include tax anticipation notes, revenue anticipation notes, bond anticipation notes, variable-rate demand obligations, and tax-exempt commercial paper.
Municipal bonds are typically classified as “general obligation” or “revenue” or “special obligation” bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit, and taxing power for the payment of principal and interest. Revenue or special obligation bonds are payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise or other tax, but not from general tax revenues. The AB Tax-Aware Fixed Income Opportunities Portfolio may invest in revenue bonds, which generally do not have the pledge of the credit of the issuer. The payment of the principal and interest on revenue bonds is dependent solely on the ability of the user of the facilities financed by the bonds to meet its financial obligations and the pledge, if any, of real and personal property financed as security for such payment. The AB Tax-Aware Fixed Income Opportunities Portfolio may invest more than 25% of its total assets in securities or obligations that are related in such a way that business or political developments or changes affecting one such security could also affect the others (for example, securities with interest that is paid from projects of a similar type). The AB Sustainable Thematic Credit Portfolio may invest more than 25% of its net assets in revenue bonds.
The AB Tax-Aware Fixed Income Opportunities Portfolio may invest in municipal lease obligations. A municipal lease obligation is not backed by the full faith and credit of the issuing municipality, but is usually backed by the municipality’s pledge to make annual appropriations for lease payments. Thus, it is possible that a municipality will not appropriate money for lease payments. Additionally, some municipal lease obligations may allow for lease cancellation prior to the maturity date of the security. Municipal lease obligations may be less readily marketable than other municipal securities and some may be illiquid.
 
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Current federal tax law distinguishes between municipal securities issued to finance certain private activities (“private activity bonds”) and other municipal securities. Private activity bonds, most of which are AMT-Subject bonds and are also revenue bonds, include bonds issued to finance such projects as airports, housing projects, resource recovery programs, solid waste disposal facilities, and student loan programs. Bonds of certain sectors have special risks. For example, the health-care industry can be affected by federal or state legislation, electric utilities are subject to governmental regulation, and private activity bonds are not government-backed. Attempts to restructure the tax system may have adverse effects on the value of municipal securities or make them less attractive to investors relative to taxable treatments.
There have been some municipal issuers that have defaulted on obligations, been downgraded or commenced insolvency proceedings. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by a Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may worsen, adversely affecting the performance of a Fund.
The AB Tax-Aware Fixed Income Opportunities Portfolio may purchase municipal securities that are insured as to the payment of principal and interest under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most fund insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured municipal securities, the Adviser currently evaluates the risk and return of municipal securities through its own research.
If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. The Adviser believes that downgrades in insurance company ratings or insurance company insolvencies will present limited risk to the Fund. The underlying credit quality of the issuers of the insured municipal securities (generally investment grade) reduces the risk of a significant reduction in the value of the insured municipal security.
Preferred Stock
A Fund may invest in preferred stock. Preferred stock is a class of capital stock that typically pays dividends at a specified rate. Preferred stock is generally senior to common stock, but is subordinated to any debt the issuer has outstanding. Accordingly, preferred stock dividends are not paid until all debt obligations are first met. Preferred stock may be subject to more fluctuations in market value, due to changes in market participants’ perceptions of the issuer’s ability to continue to pay dividends, than debt of the same issuer. These investments include convertible preferred stock, which includes an option for the holder to convert the preferred stock into the issuer’s common stock under certain conditions, among which may be the specification of a future date when the conversion must begin, a certain number of shares of common stock per share of preferred stock, or a certain price per share for the common stock. Convertible preferred stock tends to be more volatile than non-convertible preferred stock, because its value is related to the price of the issuer’s common stock as well as the dividends payable on the preferred stock.
Real Estate Investment Trusts (REITs)
REITs are pooled investment vehicles that invest primarily in income-producing real estate or real estate related loans or interests. REITs are generally classified as equity REITs, mortgage REITs or a combination of equity and mortgage REITs. Equity REITs invest the majority of their assets directly in real property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest and principal payments. Similar to investment companies such as the Funds, REITs are not taxed on income distributed to shareholders, provided they comply with several requirements of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). A Fund will indirectly bear its proportionate share of expenses incurred by REITs in which the Fund invests in addition to the expenses incurred directly by the Fund.
Repurchase Agreements and Buy/Sell Back Transactions
Each Fund may enter into repurchase agreements. In a repurchase agreement transaction the Fund buys a security and simultaneously agrees to sell it back to the counterparty at a specified price in the future. However, a repurchase agreement is economically similar to a secured loan, in that the Fund lends cash to a counterparty for a specific term, normally a day or a few days, and is given acceptable collateral (the purchased securities) to hold in case the counterparty does not repay the loan. The difference between the purchase price and the repurchase price of the securities reflects an agreed-upon “interest rate”. Given that the price at which a Fund will sell the collateral back is specified in advance, a Fund is not exposed to price movements on the collateral unless the counterparty defaults. If the counterparty defaults on its obligation to buy back the securities at the maturity date and the liquidation value of the collateral is less than the outstanding loan amount, a Fund would suffer a loss. In order to further mitigate any potential credit exposure to the counterparty, if the value of the securities falls below a specified level that is linked to the loan amount during the life of the agreement, the counterparty must provide additional collateral to support the loan.
A Fund may enter into buy/sell back transactions, which are similar to repurchase agreements. In this type of transaction, a Fund enters a trade to buy securities at one price and
 
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simultaneously enters a trade to sell the same securities at another price on a specified date. Similar to a repurchase agreement, the repurchase price is higher than the sale price and reflects current interest rates. Unlike a repurchase agreement, however, the buy/sell back transaction is considered two separate transactions.
Reverse Repurchase Agreements and Dollar Rolls
A Fund may enter into reverse repurchase agreements and dollar rolls, subject to the Fund’s limitations on borrowings. The terms of reverse repurchase agreements are essentially the reverse of “repurchase agreements” described above. In a reverse repurchase agreement transaction, the Fund sells a security and simultaneously agrees to repurchase it at a specified time and price. The economic effect of a reverse repurchase agreement is that of the Fund borrowing money on a secured basis, and reverse repurchase agreements may be considered a form of borrowing for some purposes. Even though the Fund posts securities as collateral, the Fund maintains exposure to price declines on these securities since it has agreed to repurchase the securities at a fixed price. Accordingly, reverse repurchase agreements create leverage risk for the Fund because the Fund maintains exposure to price declines of both the securities it sells in the reverse repurchase agreement and any securities it purchases with the cash it receives under the reverse repurchase agreement. If the value of the posted collateral declines, the counterparty would require the Fund to post additional collateral. If the value of the collateral increases, the Fund may ask for some of its collateral back. If the counterparty defaults and fails to sell the securities back to the Fund at a time when the market purchase price of the securities exceeds the agreed-upon repurchase price, the Fund would suffer a loss.
Dollar rolls involve sales by a Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, a Fund forgoes principal and interest paid on the securities. A Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale.
Reverse repurchase agreements and dollar rolls involve the risk that the market value of the securities a Fund is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement or dollar roll files for bankruptcy or becomes insolvent, a Fund’s use of the proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.
Rights and Warrants
Rights and warrants are option securities permitting their holders to subscribe for other securities. Rights are similar to warrants except that they have a substantially shorter duration. Rights and warrants do not carry with them dividend or voting rights with respect to the underlying securities, or any rights in the assets of the issuer. As a result, an investment in rights and warrants may be considered more speculative than certain other types of investments. In addition, the value of a right or a warrant does not necessarily change with the value of the underlying securities, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date.
Short Sales
A Fund may make short sales as a part of overall portfolio management or to offset a potential decline in the value of a security. A short sale involves the sale of a security that a Fund does not own, or if the Fund owns the security, is not to be delivered upon consummation of the sale. When the Fund makes a short sale of a security that it does not own, it must borrow from a broker-dealer the security sold short and deliver the security to the broker-dealer upon conclusion of the short sale.
If the price of the security sold short increases between the time of the short sale and the time a Fund replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a short-term capital gain. The potential for the price of a fixed-income security sold short to rise is a function of the combination of the remaining maturity of the obligation, its creditworthiness and its yield. Unlike short sales of equities or other instruments, potential for the price of a fixed-income security to rise may be limited due to the fact that the security will be no more than par at maturity. However, the short sale of other instruments or securities generally, including fixed-income securities convertible into equities or other instruments, a fixed-income security trading at a deep discount from par or that pays a coupon that is high in relative and/or absolute terms, or that is denominated in a currency other than the U.S. Dollar, involves the possibility of a theoretically unlimited loss since there is a theoretically unlimited potential for the market price of the security sold short to increase.
Standby Commitment Agreements
Standby commitment agreements are similar to put options that commit a Fund, for a stated period of time, to purchase a stated amount of a security that may be issued and sold to the Fund at the option of the issuer. The price and coupon of the security are fixed at the time of the commitment. At the time of entering into the agreement, the Fund is paid a commitment fee, regardless of whether the security ultimately is issued. A Fund will enter into such agreements only for the purpose of investing in the security underlying the commitment at a yield and price considered advantageous to the Fund and unavailable on a firm commitment basis.
There is no guarantee that a security subject to a standby commitment will be issued. In addition, the value of the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the security is at the option of the issuer, a Fund will bear the risk of capital loss in the event the value of the security declines and may not benefit from an appreciation in the value of the security during the commitment period if the issuer decides not to issue and sell the security to the Fund.
 
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Sovereign Debt Obligations
No established secondary markets may exist for many sovereign debt obligations. Reduced secondary market liquidity may have an adverse effect on the market price and a Fund’s ability to dispose of particular instruments when necessary to meet its liquidity requirements or in response to specific economic events such as a deterioration in the creditworthiness of the issuer. Reduced secondary market liquidity for certain sovereign debt obligations may also make it more difficult for a Fund to obtain accurate market quotations for the purpose of valuing its portfolio. Market quotations are generally available on many sovereign debt obligations only from a limited number of dealers and may not represent firm bids of those dealers or prices for actual sales.
By investing in sovereign debt obligations, a Fund will be exposed to the direct or indirect consequences of political, social, and economic changes in various countries. Political changes in a country may affect the willingness of a foreign government to make or provide for timely payments of its obligations. The country’s economic status, as reflected in, among other things, its inflation rate, the amount of its external debt and its gross domestic product, will also affect the government’s ability to honor its obligations. In addition, countries that issue debt obligations denominated in a foreign currency and countries that do not have their own currency (e.g., Eurozone countries) may have a higher risk of default than other countries.
The Funds are permitted to invest in sovereign debt obligations of issuers that are not current in the payment of interest or principal or are in default so long as the Adviser believes it to be consistent with the Funds’ investment objectives. The Funds may have limited legal recourse in the event of a default with respect to certain sovereign debt obligations they hold. For example, remedies from defaults on certain sovereign debt obligations, unlike those on private debt, must, in some cases, be pursued in the courts of the defaulting party itself. Legal recourse therefore may be significantly diminished. Bankruptcy, moratorium, and other similar laws applicable to issuers of sovereign debt obligations may be substantially different from those applicable to issuers of private debt obligations. The political context, expressed as the willingness of an issuer of sovereign debt obligations to meet the terms of the debt obligation, for example, is of considerable importance. In addition, no assurance can be given that the holders of commercial bank debt will not contest payments to the holders of securities issued by foreign governments in the event of default under commercial bank loan agreements.
Structured Products
A Fund may invest in certain hybrid derivatives-type instruments that combine features of a traditional stock or bond with those of, for example, a futures contract or an option. These instruments include structured notes and indexed securities, commodity-linked notes and commodity index-linked notes and credit-linked securities. The performance of the structured product, which is generally a fixed-income security, is tied (positively or negatively) to the price or prices of an unrelated reference indicator such as a security or basket of securities, currencies, commodities, a securities or commodities index or a credit default swap or other kinds of swaps. The structured product may not pay interest or protect the principal invested. The structured product or its interest rate may be a multiple of the reference indicator and, as a result, may be leveraged and move (up or down) more rapidly than the reference indicator. Investments in structured products may provide a more efficient and less expensive means of obtaining exposure to underlying securities, commodities or other derivatives, but may potentially be more volatile and carry greater trading and market risk than investments in traditional securities. The purchase of a structured product also exposes a Fund to the credit risk of the issuer of the structured product.
Structured notes are derivative debt instruments. The interest rate or principal of these notes is determined by reference to an unrelated indicator (for example, a currency, security, or index thereof) unlike a typical note where the borrower agrees to make fixed or floating interest payments and to pay a fixed sum at maturity. Indexed securities may include structured notes as well as securities other than debt securities, the interest or principal of which is determined by an unrelated indicator.
Commodity-linked notes and commodity index-linked notes provide exposure to the commodities markets. These are derivative securities with one or more commodity-linked components that have payment features similar to commodity futures contracts, commodity options, commodity indices or similar instruments. Commodity-linked products may be either equity or debt securities, leveraged or unleveraged, and have both security- and commodity-like characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index or other economic variable.
A Fund may also invest in certain hybrid derivatives-type investments that combine features of a traditional bond with those of certain derivatives such as a credit default swap, an interest rate swap or other securities. These investments include credit-linked securities. The issuers of these securities frequently are limited purpose trusts or other special purpose vehicles that invest in a derivative instrument or basket of derivative instruments in order to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit-linked securities as a cash management tool to gain exposure to a certain market or to remain fully invested when more traditional income-producing securities are not available. The performance of the structured product, which is generally a fixed-income security, is linked to the receipt of payments from the counterparties to the derivative instruments or other securities. A Fund’s investments in credit-linked securities are indirectly subject to the risks associated with derivative instruments, including among others, credit risk, default risk, counterparty risk, interest rate risk and leverage risk. These securities are generally structured as Rule 144A Securities so that they may be freely traded among qualified institutional buyers. However, changes in the market for credit-linked securities or the availability of willing buyers may result in reduced liquidity for the securities.
 
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Tender Option Bond Transactions
The AB Tax-Aware Fixed Income Opportunities Portfolio may enter into and has, from time to time, entered into tender option bonds (“TOBs”) in which the Fund transfers one or more municipal securities into a special purpose entity (the “Trust”). The Fund receives cash and a residual interest security (sometimes referred to as “inverse floaters”) issued by the Trust in return. The Trust simultaneously issues securities, which pay an interest rate that is reset each week based on an index of high-grade short-term demand notes. These securities (sometimes referred to as “floaters”) are bought by third parties, including tax-exempt money market funds, and can be tendered by these holders to a liquidity provider at par, unless certain events occur. The floaters typically have first priority on the cash flow from the underlying municipal securities held by the Trust, and the remaining cash flow, less certain expenses, is paid to holders of the inverse floaters. The interest rate payable on the inverse floaters bears an inverse relationship to the interest rate on the floaters. Under certain circumstances, the Trust may be terminated or collapsed, either by the Fund or upon the occurrence of certain events, such as a downgrade in the credit quality of the underlying municipal securities or in the event holders of the floaters tender their securities to the liquidity provider. The Fund continues to earn all the interest from the transferred municipal securities less the amount of interest paid on the floaters and the expenses of the Trust, which may include payments to the trustee and the liquidity provider and organizational costs. The Fund receives cash proceeds from the Trust’s sale of the floaters as consideration for the transferred municipal securities and uses the cash proceeds for investment purposes (e.g., the purchase of longer-term municipal securities), which involves leverage risk.
To the extent that a Fund, rather than a third-party bank or financial institution, serves as the sponsor of a TOB trust, the Fund’s duties and responsibilities under such an arrangement may give rise to certain risks including compliance, securities law and operational risks.
For a discussion of the risks of TOBs, see “Borrowings and Leverage” below.
Variable, Floating and Inverse Floating-Rate Instruments
Variable and floating-rate securities pay interest at rates that are adjusted periodically, according to a specified formula. A “variable” interest rate adjusts at predetermined intervals (e.g., daily, weekly or monthly), while a “floating” interest rate adjusts whenever a specified benchmark rate (such as the bank prime lending rate) changes.
A Fund may also invest in inverse floating-rate debt instruments (“inverse floaters”). The interest rate on an inverse floater resets in the opposite direction from the market rate of interest to which the inverse floater is indexed. An inverse floater may have greater volatility in market value, in that, during periods of rising interest rates, the market values of inverse floaters will tend to decrease more rapidly than those of fixed-rate securities.
Zero-Coupon and Principal-Only Securities
Zero-coupon securities and principal-only (PO) securities are debt securities that have been issued without interest coupons or stripped of their unmatured interest coupons, and include receipts or certificates representing interests in such stripped debt obligations and coupons. Such a security pays no interest to its holder during its life. Its value to an investor consists of the difference between its face value at the time of maturity and the price for which it was acquired, which is generally an amount significantly less than its face value. Such securities usually trade at a deep discount from their face or par value and are subject to greater fluctuations in market value in response to changing interest rates than debt obligations of comparable maturities and credit quality that make current distributions of interest. On the other hand, because there are no periodic interest payments to be reinvested prior to maturity, these securities eliminate reinvestment risk and “lock in” a rate of return to maturity.
ADDITIONAL RISK AND OTHER CONSIDERATIONS
Investments in the Funds involve the risk considerations described below.
Borrowings and Leverage
A Fund may use borrowings for investment purposes subject to its investment policies and procedures and to applicable statutory or regulatory requirements. Borrowings by a Fund result in leveraging of the Fund’s shares. Each of the Funds may also use leverage for investment purposes by entering into transactions such as reverse repurchase agreements, forward contracts, and dollar rolls and, with respect to AB Tax-Aware Fixed Income Opportunities Portfolio, TOB transactions. This means that the Fund uses cash made available during the term of these transactions to make investments in other securities.
Utilization of leverage, which is usually considered speculative, involves certain risks to a Fund’s shareholders. These include a higher volatility of the NAV of the Fund’s shares of common stock and the relatively greater effect of changes in the value of the Fund’s portfolio on the NAV of the shares caused by favorable or adverse changes in market conditions or interest rates. In the case of borrowings for investment purposes, so long as the Fund is able to realize a net return on the leveraged portion of its investment portfolio that is higher than the interest expense paid on borrowings, the effect of leverage will be to cause the Fund’s shareholders to realize a higher net return than if the Fund were not leveraged. If the interest expense on borrowings or other costs of leverage approach the net return on the Fund’s investment portfolio or investments made through leverage, as applicable, the benefit of leverage to the Fund’s shareholders will be reduced. If the interest expense on borrowings or other costs of leverage were to exceed the net return to the Fund, the Fund’s use of leverage could result in a lower rate of net return than if the Fund were not leveraged. Similarly, the effect of leverage in a declining market could normally be a greater decrease in NAV than if the Fund were not leveraged.
 
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During periods of rising short-term interest rates, the interest paid on floaters in TOBs would increase, which may adversely affect the AB Tax-Aware Fixed Income Opportunities Portfolio’s net return. If rising short-term rates coincide with a period of rising long-term rates, the value of securities with longer-term maturities purchased with the proceeds of leverage would decline, adversely affecting the Fund’s NAV. In certain circumstances, adverse changes in interest rates or other events could cause a TOB trust to terminate or collapse, potentially requiring the Fund to liquidate the longer-term securities at unfavorable prices to meet the Trust’s outstanding obligations.
The SEC has adopted Rule 18f-4 under the 1940 Act, which imposes limits on the amount of derivatives and certain other forms of leverage into which a fund can enter. Rule 18f-4, among other things, permits a fund to treat TOBs (and other similar financing transactions) either as borrowings (subject to asset coverage requirements under the 1940 Act) or as “derivatives transactions” subject to certain risk-based limits of Rule 18f-4.
Foreign (Non-U.S.) Securities
Investing in foreign securities involves special risks and considerations not typically associated with investing in U.S. securities. The securities markets of many foreign countries are relatively small, with the majority of market capitalization and trading volume concentrated in a limited number of companies representing a small number of industries. A Fund that invests in foreign securities may experience greater price volatility and significantly lower liquidity than a portfolio invested solely in securities of U.S. companies. These markets may be subject to greater influence by adverse events generally affecting the market, and by large investors trading significant blocks of securities, than is usual in the United States. Sanctions imposed by the U.S. or a foreign country may restrict a Fund’s ability to purchase or sell foreign securities or may require a Fund to divest its holdings in foreign securities, which could adversely affect the value or liquidity of such holdings. The imposition of sanctions could also adversely affect global sectors and economies and thereby negatively affect the value of the Fund’s investments beyond any direct exposure to the countries or regions subject to the sanctions. In addition, the securities markets of some foreign countries may be closed on certain days (e.g., local holidays) when the Funds are open for business. On such days, a Fund may be unable to add to or exit its positions in foreign securities traded in such markets even though it may otherwise be attractive to do so.
Securities registration, custody, and settlement may in some instances be subject to delays and legal and administrative uncertainties. Foreign investment in the securities markets of certain foreign countries is restricted or controlled to varying degrees. These restrictions or controls may at times limit or preclude investment in certain securities and may increase the costs and expenses of a Fund. In addition, the repatriation of investment income, capital or the proceeds of sales of securities from certain of the countries is controlled under regulations, including in some cases the need for certain advance government notification or authority, and if a deterioration occurs in a country’s balance of payments, the country could impose temporary restrictions on foreign capital remittances. Income from certain investments held by a Fund could be reduced by foreign income taxes, including withholding taxes.
A Fund also could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation, as well as by the application to it of other restrictions on investment. Investing in local markets may require a Fund to adopt special procedures or seek local governmental approvals or other actions, any of which may involve additional costs to a Fund. These factors may affect the liquidity of a Fund’s investments in any country and the Adviser will monitor the effect of any such factor or factors on a Fund’s investments. Transaction costs, including brokerage commissions for transactions both on and off the securities exchanges, in many foreign countries are generally higher than in the United States.
Issuers of securities in foreign jurisdictions are generally not subject to the same degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, restrictions on market manipulation, shareholder proxy requirements, and timely disclosure of information. The reporting, accounting, and auditing standards of foreign countries may differ, in some cases significantly, from U.S. standards in important respects, and less information may be available to investors in foreign securities than to investors in U.S. securities.
Substantially less information is publicly available about certain non-U.S. issuers than is available about most U.S. issuers. A non-U.S. company or non-U.S. issuer is an entity that (i) is organized under the laws of a foreign country and conducts business in a foreign country, (ii) derives 50% or more of its total revenue from business in foreign countries, or (iii) issues equity or debt securities that are traded principally on an exchange in a foreign country.
The economies of individual foreign countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product or gross national product, rate of inflation, capital reinvestment, resource self-sufficiency, and balance of payments position. Nationalization, expropriation or confiscatory taxation, currency blockage, political changes, government regulation, political or social instability, public health crises (including the occurrence of a contagious disease or illness) revolutions, wars or diplomatic developments could affect adversely the economy of a foreign country. In the event of nationalization, expropriation, or other confiscation, a Fund could lose its entire investment in securities in the country involved. In addition, laws in foreign countries governing business organizations, bankruptcy and insolvency may provide less protection to security holders such as the Funds than that provided by U.S. laws.
The United Kingdom (the “U.K.”) formally withdrew from the European Union (the “EU”) on January 31, 2020. The U.K. and the EU negotiated an agreement governing their future trading and security relationships. This agreement became effective on a provisional basis on January 1, 2021 and entered into full force on May 1, 2021. The U.K. and the EU also
 
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negotiated a Memorandum of Understanding (“MoU”), which creates a framework for voluntary regulatory cooperation in financial services between the U.K. and the EU. The impact on the U.K. and European economies and the broader global economy of the uncertainties associated with implementing the agreement and MoU are significant and could have an adverse effect on the value of a Fund’s investments and its net asset value. These uncertainties include an increase in the regulatory and customs requirements imposed on cross-border trade between the U.K. and the EU, the negotiation and implementation of additional arrangements between the U.K. and the EU affecting important parts of the economy (such as financial services), volatility and illiquidity in markets, currency fluctuations, the renegotiation of other existing trading and cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory or otherwise) of the U.K. and the EU, and potentially lower growth for companies in the U.K., Europe and globally.
In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, as well as sanctions imposed following the invasion, have resulted in, and may continue to result in, significant market disruptions in the region and beyond. Future market disruptions are impossible to predict, but they could continue to be significant and adversely affect economies in the region and beyond, and to have a significant effect on the value of certain securities, as well as the markets for certain commodities, such as oil and natural gas, as well as other sectors.
Investments in securities of companies in emerging markets involve special risks. There are approximately 100 countries identified by the World Bank as Low Income, Lower Middle Income and Upper Middle Income countries that are generally regarded as emerging markets. Emerging market countries that the Adviser currently considers for investment include:
 
Argentina
Bangladesh
Belize
Brazil
Bulgaria
Chile
China
Colombia
Croatia
Czech Republic
Dominican Republic
Ecuador
Egypt
El Salvador
Gabon
Georgia
Ghana
Greece
  
Hungary
India
Indonesia
Iraq
Ivory Coast
Jamaica
Jordan
Kazakhstan
Kenya
Lebanon
Lithuania
Malaysia
Mexico
Mongolia
Nigeria
Pakistan
Panama
Peru
  
Philippines
Poland
Qatar
Saudi Arabia
Senegal
Serbia
South Africa
South Korea
Sri Lanka
Taiwan
Thailand
Turkey
Ukraine
United Arab Emirates
Uruguay
Venezuela
Vietnam
Countries may be added to or removed from this list at any time.
Investing in emerging market securities involves risks different from, and greater than, risks of investing in domestic securities or in securities of issuers domiciled in developed, foreign countries. These risks include: smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and the imposition of capital controls, which may restrict a Fund’s ability to repatriate investment income and capital. In addition, foreign investors may be required to register the proceeds of sales and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of government monopolies. The currencies of emerging market countries may experience significant declines against the U.S. Dollar, and devaluation may occur subsequent to investments in these currencies by a Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.
Additional risks of emerging market securities may include: greater social, economic and political uncertainty and instability; more substantial governmental involvement in the economy; less governmental supervision and regulation; unavailability of currency hedging techniques; companies that are newly organized and small; less developed legal systems with fewer security holder rights and practical remedies to pursue claims, including class actions or fraud claims; the limited ability of U.S. authorities to bring and enforce actions against non-U.S. companies and non-U.S. persons; and differences in the nature and quality of financial information, including (i) auditing and financial reporting standards, which may result in unavailability or unreliability of material information about issuers and (ii) the risk that the Public Company Accounting Oversight Board (“PCAOB”) may not be able to inspect audit practices and work conducted by PCAOB-registered audit firms in certain emerging market countries, such as China. Thus there can be no assurance that the quality of financial reporting or the audits conducted by such audit firms of U.S.-listed emerging market companies meet PCAOB standards. Furthermore, in December 2021, the SEC finalized rules to implement the Holding Foreign Companies Accountable Act, which requires the SEC to prohibit the trading of securities of foreign issuers (including those based in China) on a national securities exchange or through any other method regulated by the SEC (including through over-the-counter trading) if the PCAOB is unable to inspect the work papers of the auditors of such companies for three years. To the extent a Fund invests in the securities of a company whose securities become subject to such a trading prohibition, the Fund’s ability to transact in such securities, and the liquidity of the securities, as well as their market price, would likely be adversely affected. A Fund would also have to seek other markets in which to transact in such securities, which could increase the Fund’s costs. In addition, emerging securities markets may have different clearance and settlement procedures, which may be unable to keep pace with the volume of securities transactions or otherwise make it difficult to engage in such transactions. Settlement problems may cause a Fund to miss attractive investment opportunities, hold a portion of its assets in cash pending investment, or be delayed in disposing of a portfolio security. Such a delay could result in possible liability to a purchaser of the security.
 
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A Fund may invest in securities of frontier market countries. Frontier market countries generally have smaller, less diverse economies and even less developed capital markets and legal, regulatory, and political systems than traditional emerging markets. As a result, the risks of investing in emerging market countries are magnified in frontier market countries. Frontier market risks include the potential for extreme price volatility and illiquidity—economic or political instability may cause larger price changes in frontier market securities than in securities of issuers located in more developed markets. The risks of investing in frontier market countries may also be magnified by: government ownership or control of parts of the private sector and of certain companies; trade barriers, exchange controls, managed adjustments in relative currency values, impaired or limited access to issuer information and other protectionist measures imposed or negotiated by the countries with which frontier market countries trade; and the relatively new and unsettled securities laws in many frontier market countries. The actions of a relatively few major investors in these markets are more likely to result in significant changes in local stock prices and the value of fund shares. The risk also exists that an emergency situation may arise in one or more frontier market countries as a result of which trading of securities may cease or may be substantially curtailed and prices for investments in such markets may not be readily available. All of these factors can make investing in frontier markets riskier than investing in more developed emerging markets or other foreign markets.
Foreign (Non-U.S.) Currencies
Investing in and exposure to foreign currencies involve special risks and considerations. A Fund that invests some portion of its assets in securities denominated in, and receives revenues in, foreign currencies will be adversely affected by reductions in the value of those currencies relative to the U.S. Dollar. Foreign currency exchange rates may fluctuate significantly. They are determined by supply and demand in the foreign exchange markets, the relative merits of investments in different countries, actual or perceived changes in interest rates, and other complex factors. Currency exchange rates also can be affected unpredictably by intervention (or the failure to intervene) by U.S. or foreign governments or central banks or by currency controls or political developments. In light of these risks, a Fund may engage in certain currency hedging transactions, as described above, which involve certain special risks.
A Fund may also invest directly in foreign currencies for non-hedging purposes on a spot basis (i.e., cash) or through derivatives transactions, such as forward currency exchange contracts, futures contracts and options thereon, swaps and options as described above. These investments will be subject to the same risks. In addition, currency exchange rates may fluctuate significantly over short periods of time, causing a Fund’s NAV to fluctuate.
Investment in Below Investment Grade Fixed-Income Securities
Below investment grade fixed-income securities (commonly called “junk bonds”) are those rated Ba1 or lower by Moody’s, or BB+ or lower by S&P or Fitch, or the equivalent by any NRSRO, as well as unrated securities considered by the Adviser to be of comparable quality. For a description of credit ratings, see Appendix A—Bond Ratings.
Investments in below investment grade securities are subject to greater risk of loss of principal and interest than higher-rated securities. These securities are also generally considered to be subject to greater market risk than higher-rated securities. The capacity of issuers of these securities to pay interest and repay principal is more likely to weaken than is that of issuers of higher-rated securities in times of deteriorating economic conditions or rising interest rates. In addition, below investment grade securities may be more susceptible to real or perceived adverse economic conditions than investment grade securities.
The market for these securities may be thinner and less active than that for higher-rated securities, which can adversely affect the prices at which these securities can be sold. To the extent that there is no established secondary market for these securities, a Fund may experience difficulty in valuing such securities and, in turn, the Fund’s assets.
Unrated Securities
A Fund may invest in unrated securities when the Adviser believes that the financial condition of the issuers of such securities, or the protection afforded by the terms of the securities themselves, limits the risk to the Fund to a degree comparable to that of rated securities that are consistent with the Fund’s objective and policies.
Management Risk – Quantitative Models
The Adviser may use investment techniques that incorporate, or rely upon, quantitative models. These models may not work as intended and may not enable a Fund to achieve its investment objective. In addition, certain models may be constructed using data from external providers, and these inputs may be incorrect or incomplete, thus potentially limiting the effectiveness of the models. Finally, the Adviser may change, enhance and update its models and its usage of existing models at its discretion.
Future Developments
A Fund may take advantage of other investment practices that are not currently contemplated for use by the Fund, or are not available but may yet be developed, to the extent such investment practices are consistent with the Fund’s investment objective and legally permissible for the Fund. Such investment practices, if they arise, may involve risks that exceed those involved in the activities described above.
Changes in Investment Objectives and Policies
A Fund’s Board of Directors (the “Board”) may change the Fund’s investment objective without shareholder approval. The Fund will provide shareholders with 60 days’ prior written notice of any change to the Fund’s investment objective. Funds that have a policy to invest at least 80% of their net assets in securities indicated by their name will not change their policies without 60 days’ prior written notice to shareholders. Unless otherwise noted, all other investment policies of a Fund may be changed without shareholder approval.
 
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Temporary Defensive Position
For temporary defensive purposes in an attempt to respond to adverse market, economic, political or other conditions, each Fund may invest in certain types of short-term, liquid, investment grade or high-quality (depending on the Fund) debt securities or, with respect to AB Tax-Aware Fixed Income Opportunities Portfolio and AB Income Fund, high-quality municipal notes or variable-rate demand obligations, or in taxable cash equivalents. While a Fund is investing for temporary defensive purposes, it may not meet its investment objective.
Portfolio Holdings
A description of the Funds’ policies and procedures with respect to the disclosure of the Funds’ portfolio securities is available in the Funds’ SAI.
Cyber Security Risk
As the use of the Internet and other technologies has become more prevalent in the course of business, the Funds and their service providers, including the Adviser, have become more susceptible to operational and financial risks associated with cyber security. Cyber security incidents can result from deliberate attacks such as gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption, or from unintentional events, such as the inadvertent release of confidential information. Cyber security failures or breaches of a Fund or its service providers or the issuers of securities in which the Fund invests have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Fund shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs. While measures have been developed which are designed to reduce the risks associated with cyber security incidents, there can be no assurance that those measures will be effective, particularly since a Fund does not control the cyber security defenses or plans of its service providers, financial intermediaries and companies with which those entities do business and companies in which the Fund invests.
Cyber security incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund or shareholder assets, Fund or customer data (including private shareholder information), or proprietary information, or cause a Fund, the Adviser, and/or a Fund’s service providers (including, but not limited to, fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or lose operational functionality, or prevent Fund shareholders from purchasing, redeeming, or exchanging shares or receiving distributions. The Funds and the Adviser have limited ability to prevent or mitigate cyber security incidents affecting third-party service providers. Cyber security incidents may result in financial losses to a Fund and its shareholders, and substantial costs may be incurred in seeking to prevent or minimize future cyber security incidents.
 
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INVESTING IN THE FUNDS
 
 
This section discusses how to buy, sell or redeem, or exchange different classes of shares of a Fund that are offered through this Prospectus. The Funds offer seven classes of shares through this Prospectus, except for AB Income Fund, which offers four classes of shares, AB Limited Duration High Income Portfolio, AB Tax-Aware Fixed Income Opportunities Portfolio, AB Short Duration Income Portfolio and AB High Yield Portfolio, which offer three classes of shares, and AB Sustainable Thematic Credit Portfolio, which offers two classes of shares, through this Prospectus.
The NAV of each of the Funds is disclosed daily on the Fund’s website or through the investor’s online account information at www.abfunds.com and/or by calling (800) 221-5672.
Each share class represents an investment in the same portfolio of securities, but the classes may have different sales charges and bear different ongoing distribution expenses. For additional information on the differences between the different classes of shares and factors to consider when choosing among them, please see “The Different Share Class Expenses” and “Choosing a Share Class” below. Only Class A shares offer Quantity Discounts on sales charges, as described below.
To effect an order for the purchase, exchange or redemption of a Fund’s shares, the Fund must receive the order in “proper form.” Proper form generally means that your instructions:
 
 
Are signed and dated by the person(s) authorized in accordance with the Fund’s policies and procedures to access the account and request transactions;
 
 
Include the fund and account number; and
 
 
Include the amount of the transaction (stated in dollars, shares, or percentage).
Written instructions also must include:
 
 
Medallion signature guarantees or notarized signatures, if required for the type of transaction. (Requirements are detailed on AllianceBernstein Investor Services, Inc., or ABIS, service forms; Please contact ABIS with any questions)
 
 
Any supporting documentation that may be required.
The Funds reserve the right, without notice, to revise the requirements for proper form.
HOW TO BUY SHARES
The purchase of a Fund’s shares is priced at the next-determined NAV after your order is received in proper form.
Class A and Class C Shares – Shares Available to Retail Investors
You may purchase a Fund’s Class A or Class C shares through financial intermediaries, such as broker-dealers or banks. You also may purchase shares directly from the Funds’ principal underwriter, AllianceBernstein Investments, Inc., or ABI, if you are: (i) making an initial investment and the Fund has received and accepted a completed Mutual Fund Application identifying a financial intermediary with which ABI has an agreement; (ii) an existing Fund shareholder with an account held directly with a Fund; or (iii) an employee of the Adviser or any of its affiliates. These purchases may be subject to an initial sales charge, an asset-based sales charge or CDSC as described below.
 
Purchase Minimums and Maximums
Minimums:*
 
—Initial:
   $ 2,500  
—Subsequent:
   $ 50  
 
*
Purchase minimums may not apply to some accounts established in connection with the Automatic Investment Program and to some retirement-related investment programs. These investment minimums also do not apply to persons participating in a fee-based program or “Mutual Fund Only” brokerage program which is sponsored and maintained by a registered broker-dealer or other financial intermediary with omnibus account or “network level” account arrangements with a Fund.
Maximum Individual Purchase Amount:
 
—Class A shares
     None  
—Class C shares:
  
AB Tax-Aware Fixed Income Opportunities Portfolio
   $ 500,000  
AB Short Duration Income Portfolio
   $ 500,000  
—All Other Funds
   $ 1,000,000  
Class Z Shares – Shares Available to Persons Participating in Certain Fee-Based Programs
Class Z shares are available to persons participating in certain fee-based programs sponsored and maintained by registered broker-dealers or other financial intermediaries with omnibus account arrangements with a Fund.
Other Purchase Information
Your broker or financial intermediary must receive your purchase request by the Fund Closing Time, which is the close of regular trading on any day the Exchange is open (ordinarily, 4:00 p.m., Eastern time, but sometimes earlier, as in the case of scheduled half-day trading or unscheduled suspensions of trading), for you to receive the next-determined NAV, less any applicable initial sales charge.
If you are an existing Fund shareholder and you have completed the appropriate section of the Mutual Fund Application, you may purchase additional shares by telephone with payment by electronic funds transfer in amounts not exceeding $500,000. ABIS must receive and confirm telephone requests before the Fund Closing Time, to receive that day’s public offering price. Call (800) 221-5672 to arrange a transfer from your bank account.
Shares of the Funds are generally available for purchase in the United States, Puerto Rico, Guam, American Samoa and the U.S. Virgin Islands. Except to the extent otherwise permitted by the Funds, the Funds will only accept purchase orders directly from U.S. citizens with a U.S. address (including an APO or FPO address) or resident aliens with a U.S. address
 
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(including an APO or FPO address) and a U.S. taxpayer identification number (i.e., W-9 tax status). Subject to the requirements of local law applicable to the offering of Fund shares, U.S. citizens (i.e., W-9 tax status) residing in foreign countries are permitted to purchase shares of the Funds through their accounts at U.S. registered broker-dealers and other similar U.S. financial intermediaries, provided the broker-dealer or intermediary has an agreement with the Funds’ distributor permitting it to accept orders for the purchase and sale of Fund shares.
The Funds will not accept purchase orders (including orders for the purchase of additional shares) from foreign persons or entities or from resident aliens who, to the knowledge of a Fund, have reverted to non-resident status (e.g., a resident alien who has a non-U.S. address at time of purchase).
Tax-Deferred Accounts
Class A shares are also available to the following tax-deferred arrangements:
 
 
Traditional and Roth IRAs (minimums listed in the table above apply);
 
 
SEPs, SAR-SEPs, SIMPLE IRAs, and individual 403(b) plans (no investment minimum); and
 
 
AllianceBernstein-sponsored Coverdell Education Savings Accounts ($2,000 initial investment minimum, $150 Automatic Investment Program monthly minimum).
Class C shares are available to AllianceBernstein Link, AllianceBernstein Individual 401(k), AllianceBernstein SIMPLE IRA plans with less than $250,000 in plan assets and 100 employees, and to group retirement plans.
Advisor Class Shares
You may purchase Advisor Class shares through your financial advisor at NAV. Advisor Class shares may be purchased and held solely:
 
 
through accounts established under a fee-based program, sponsored and maintained by a registered broker-dealer or other financial intermediary and approved by ABI;
 
 
through a defined contribution employee benefit plan (e.g., a 401(k) plan) that purchases shares directly without the involvement of a financial intermediary;
 
 
by investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds; and
 
 
with respect to AB Income Fund, through certain special arrangements approved by the Adviser, such as purchases by shareholders of the Predecessor Fund.
Advisor Class shares may also be available on brokerage platforms of firms that have agreements with ABI to offer such shares when acting solely on an agency basis for the purchase or sale of such shares. If you transact in Advisor Class shares through one of these programs, you may be required to pay a commission and/or other forms of compensation to the broker. Shares of the Funds are available in other share classes that have different fees and expenses.
The Funds’ SAI has more detailed information about who may purchase and hold Advisor Class shares.
Class A, Class R, Class K, Class I and Class Z Shares – Shares Available to Group Retirement Plans
Class A, Class R, Class K, Class I and Class Z shares are available at NAV, without an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans where plan level or omnibus accounts are held on the books of a Fund (“group retirement plans”).
Class A shares are also available at NAV to the AllianceBernstein Link, AllianceBernstein Individual 401(k) and AllianceBernstein SIMPLE IRA plans but only if such plans have at least $250,000 in plan assets or 100 employees, and to certain defined contribution retirement plans that do not have plan level or omnibus accounts on the books of the Fund.
Class R, Class K, Class I and Class Z shares generally are not available to retail non-retirement accounts, traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, SIMPLE IRAs and individual 403(b) plans. Class I shares are not currently available to group retirement plans in the AllianceBernstein-sponsored programs known as the “Informed Choice” programs.
Class I and Class Z shares are also available to certain institutional clients of the Adviser that invest at least $2,000,000 in a Fund.
Required Information
Each Fund is required by law to obtain, verify, and record certain personal information from you or persons authorized to act on your behalf in order to establish an account. Required information includes name, date of birth, physical address and taxpayer identification number (for most investors, your social security number). A Fund may also ask to see other identifying documents. If you do not provide the information, the Fund will not be able to open your account. If a Fund is unable to verify your identity, or that of another person(s) authorized to act on your behalf, or, if the Fund believes it has identified potentially criminal activity, the Fund reserves the right to take action it deems appropriate or as required by law, which may include closing your account. If you are not a U.S. citizen or resident alien, your account must be affiliated with a Financial Industry Regulatory Authority, or FINRA, member firm.
A Fund is required to withhold 24% of taxable dividends, capital gains distributions, and redemptions paid to any shareholder who has not provided the Fund with his or her correct taxpayer identification number. To avoid this, you must provide your correct taxpayer identification number on your Mutual Fund Application.
General
IRA custodians, plan sponsors, plan fiduciaries, plan recordkeepers, and other financial intermediaries may establish their own eligibility requirements as to the purchase, sale or exchange of Fund shares, including minimum and maximum
 
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investment requirements. A Fund is not responsible for, and has no control over, the decisions of any plan sponsor, fiduciary or other financial intermediary to impose such differing requirements.
ABI may refuse any order to purchase shares. Each Fund reserves the right to suspend the sale of its shares to the public in response to conditions in the securities markets or for other reasons.
THE DIFFERENT SHARE CLASS EXPENSES
This section describes the different expenses of investing in each class and explains factors to consider when choosing a class of shares. The expenses can include distribution and/or service (Rule 12b-1) fees, initial sales charges and/or CDSCs. Only Class A shares offer Quantity Discounts as described below.
Asset-Based Sales Charges or Distribution and/or Service (Rule 12b-1) Fees
 
WHAT IS A RULE 12b-1 FEE?
A Rule 12b-1 fee is a fee deducted from a Fund’s assets that is used to pay for personal service, maintenance of shareholder accounts and distribution costs, such as advertising and compensation of financial intermediaries. Each Fund has adopted a plan under SEC Rule 12b-1 that allows the Fund to pay asset-based sales charges or distribution and/or service (Rule 12b-1) fees for the distribution and sale of its shares. The amount of each share class’s Rule 12b-1 fee, if any, is disclosed below and in a Fund’s fee table included in the Summary Information section above.
The amount of these fees for each class of a Fund’s shares is:
 
      Distribution and/or Service
(Rule 12b‑1) Fee (as a
Percentage of Aggregate
Average Daily Net Assets)
Class A
       0.25 %*
Class C
       1.00 %
Advisor Class
       None
Class R
       0.50 %
Class K
       0.25 %
Class I
       None
Class Z
       None
 
*
The maximum fee allowed under any Rule 12b-1 Plan for the Class A shares is .30% (.25% for AB Short Duration Income Portfolio, AB Income Fund, AB High Yield Portfolio and AB Sustainable Thematic Credit Portfolio) of the aggregate average daily net assets. The Board currently limits the payments to .25% (.20% for AB Short Duration Income Portfolio).
Because these fees are paid out of a Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales fees. Class C and Class R shares are subject to higher Rule 12b-1 fees than Class A or Class K shares. Class C shares are subject to these higher fees for a period of eight years, after which they convert to Class A shares. Share classes with higher Rule 12b-1 fees will have a higher expense ratio, pay correspondingly lower dividends and may have a lower NAV (and returns). All or some of these fees are paid to financial intermediaries, which may include your financial intermediary’s firm. ABI retains these fees for certain shareholder accounts, including those held directly with a Fund (with no associated financial intermediary).
Sales Charges
Class A Shares. You can purchase Class A shares at their public offering price (or cost), which is NAV plus an initial sales charge of up to 4.25% of the offering price for all Funds except AB Short Duration Income Portfolio and AB Tax-Aware Fixed Income Opportunities Portfolio; 2.25% of the offering price for AB Short Duration Income Portfolio; and 3.00% of the offering price for AB Tax-Aware Fixed Income Opportunities Portfolio. Any applicable sales charge will be deducted directly from your investment.
The initial sales charge you pay each time you buy Class A shares differs depending on the amount you invest and may be reduced or eliminated for larger purchases as indicated below. These discounts, which are also known as Breakpoints or Quantity Discounts, can reduce or, in some cases, eliminate the initial sales charges that would otherwise apply to your investment in Class A shares.
The sales charge schedule of Class A share Quantity Discounts is as follows:
AB Short Duration Income Portfolio:
 
     Initial Sales Charge
Amount Purchased    as % of
Net Amount
Invested
     as % of
Offering
Price
Up to $100,000
       2.30 %          2.25 %
$100,000 up to $250,000
       2.04          2.00
$250,000 up to $500,000
       1.27          1.25
$500,000 and above
       0.00          0.00
AB Tax-Aware Fixed Income Opportunities Portfolio:
 
     Initial Sales Charge
Amount Purchased    as % of
Net Amount
Invested
     as % of
Offering
Price
Up to $100,000
       3.09 %          3.00 %
$100,000 up to $250,000
       2.04          2.00
$250,000 up to $500,000
       1.01          1.00
$500,000 and above
       0.00          0.00
All Other Funds:
 
     Initial Sales Charge
Amount Purchased    as % of
Net Amount
Invested
     as % of
Offering
Price
Up to $100,000
       4.44 %          4.25 %
$100,000 up to $250,000
       3.36          3.25
$250,000 up to $500,000
       2.30          2.25
$500,000 up to $1,000,000
       1.78          1.75
$1,000,000 and above
       0.00          0.00
Except as noted below, purchases of Class A shares in the amount of $1,000,000 or more for all Funds except AB Short Duration Income Fund and AB Tax-Aware Fixed
 
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Income Opportunities Portfolio; in the amount of $500,000 or more for AB Short Duration Income Fund and AB Tax-Aware Fixed Income Opportunities Portfolio; or by AllianceBernstein or non-AllianceBernstein sponsored group retirement plans are not subject to an initial sales charge, but may be subject to a 1% CDSC if redeemed or terminated within one year (18 months for AB Short Duration Income Fund).
Class A share purchases not subject to sales charges. The Funds may sell their Class A shares at NAV without an initial sales charge or CDSC to some categories of investors, including:
 
 
persons participating in a fee-based program, sponsored and maintained by a registered broker-dealer or other financial intermediary, under which persons pay an asset-based fee for services in the nature of investment advisory or administrative services or clients of broker-dealers or other financial intermediaries who purchase Class A shares for their own accounts through self-directed and/or non-discretionary brokerage accounts with the broker-dealers or other financial intermediaries that may or may not charge a transaction fee to its customers;
 
 
plan participants who roll over amounts distributed from employer maintained retirement plans to AllianceBernstein-sponsored IRAs where the plan is a client of or serviced by the Adviser’s Institutional Investment Management Division or Bernstein Global Wealth Management Division, including subsequent contributions to those IRAs;
 
 
certain other investors, such as investment management clients of the Adviser or its affiliates, including clients and prospective clients of the Adviser’s Institutional Investment Management Division, employees of selected dealers authorized to sell a Fund’s shares, and employees of the Adviser; or
 
 
persons participating in a “Mutual Fund Only” brokerage program, sponsored and maintained by a registered broker-dealer or other financial intermediary.
The availability of certain sales charge waivers and discounts will depend on whether you purchase your shares directly from a Fund or through a financial intermediary. Intermediaries may have different policies and procedures regarding the availability of front-end sales load waivers and discounts or CDSC waivers. In all instances, it is the purchaser’s responsibility to notify a Fund or the purchaser’s financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts. For waivers and discounts not available through a particular intermediary, shareholders will have to purchase Fund shares directly from the Fund or through another intermediary to receive these waivers or discounts.
Please see the Funds’ SAI for more information about purchases of Class A shares without sales charges.
Certain intermediaries impose different eligibility criteria for sales load waivers and discounts, which are described in Appendix C—Financial Intermediary Waivers.
Class C Shares. You can purchase Class C shares at NAV without an initial sales charge. This means that the full amount of your purchase is invested in the Fund. Your investment is subject to a 1% CDSC if you redeem your shares within one year. If you exchange your shares for the Class C shares of another AB Mutual Fund, the 1% CDSC also will apply to the Class C shares received. The 1-year period for the CDSC begins with the date of your original purchase, not the date of the exchange for the other Class C shares.
Class C shares purchased for cash automatically convert to Class A shares eight years after the end of the month of your purchase. If you purchase shares by exchange for the Class C shares of another AB Mutual Fund, the conversion period runs from the date of your original purchase.
 
HOW IS THE CDSC CALCULATED?
The CDSC is applied to the lesser of NAV at the time of redemption or the original cost of shares being redeemed (or, as to Fund shares acquired through an exchange, the cost of the AB Mutual Fund shares originally purchased for cash). This means that no sales charge is assessed on increases in NAV above the initial purchase price. Shares obtained from dividend or distribution reinvestment are not subject to the CDSC. In determining the CDSC, it will be assumed that the redemption is, first, of any shares not subject to a CDSC and, second, of shares held the longest.
Advisor Class, Class R, Class K, Class I and Class Z Shares. These classes of shares are not subject to any initial sales charge or CDSC, although your financial advisor may charge a fee.
SALES CHARGE REDUCTION PROGRAMS FOR CLASS A SHARES
This section includes important information about sales charge reduction programs available to investors in Class A shares and describes information or records you may need to provide to a Fund or your financial intermediary in order to be eligible for sales charge reduction programs. Your financial intermediary may have different policies and procedures regarding eligibility for sales charge reduction programs. See Appendix C—Financial Intermediary Waivers.
Information about Quantity Discounts and sales charge reduction programs also is available free of charge and in a clear and prominent format on our website at www.abfunds.com (click on “Investments—Mutual Funds”, select the Fund, then click on “Literature-Understanding Sales Charges & Expenses”).
Rights of Accumulation
To determine if a new investment in Class A shares is eligible for a Quantity Discount, a shareholder can combine the
 
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value of the new investment in a Fund with the higher of cost or NAV of existing investments in the Fund and any other AB Mutual Fund. The AB Mutual Funds use the higher of cost or current NAV of your existing investments when combining them with your new investment.
Combined Purchase Privileges
A shareholder may qualify for a Quantity Discount by combining purchases of shares of a Fund into a single “purchase”. A “purchase” means a single purchase or concurrent purchases of shares of a Fund or any other AB Mutual Fund by:
 
 
an individual, his or her spouse or domestic partner, or the individual’s children under the age of 21 purchasing shares for his, her or their own account(s);
 
 
a trustee or other fiduciary purchasing shares for a single trust, estate or single fiduciary account with one or more beneficiaries involved;
 
 
the employee benefit plans of a single employer; or
 
 
any company that has been in existence for at least six months or has a purpose other than the purchase of shares of the Fund.
Letter of Intent
An investor may not immediately invest a sufficient amount to reach a Quantity Discount, but may plan to make one or more additional investments over a period of time that, in the end, would qualify for a Quantity Discount. For these situations, the Funds offer a Letter of Intent, which permits new investors to express the intention, in writing, to invest at least $100,000 in Class A shares of a Fund or any other AB Mutual Fund within 13 months. The Fund will then apply the Quantity Discount to each of the investor’s purchases of Class A shares that would apply to the total amount stated in the Letter of Intent. In the event an existing investor chooses to initiate a Letter of Intent, the AB Mutual Funds will use the higher of cost or current NAV of the investor’s existing investments and of those accounts with which investments are combined via Combined Purchase Privileges toward the fulfillment of the Letter of Intent. For example, if the combined cost of purchases totaled $80,000 and the current NAV of all applicable accounts is $85,000 at the time a $100,000 Letter of Intent is initiated, the subsequent investment of an additional $15,000 would fulfill the Letter of Intent. If an investor fails to invest the total amount stated in the Letter of Intent, the Funds will retroactively collect the sales charge otherwise applicable by redeeming shares in the investor’s account at their then current NAV. Investors qualifying for Combined Purchase Privileges may purchase shares under a single Letter of Intent.
Required Shareholder Information and Records
In order for shareholders to take advantage of sales charge reductions, a shareholder or his or her financial intermediary must notify the Fund that the shareholder qualifies for a reduction. Without notification, the Fund is unable to ensure that the reduction is applied to the shareholder’s account. A shareholder may have to provide information or records to his or her financial intermediary or a Fund to verify eligibility for breakpoint privileges or other sales charge waivers. This may include information or records, including account statements, regarding shares of the Fund or other AB Mutual Funds held in:
 
 
all of the shareholder’s accounts at the Funds or a financial intermediary; and
 
 
accounts of related parties of the shareholder, such as members of the same family, at any financial intermediary.
CDSC WAIVERS AND OTHER PROGRAMS
 
Here Are Some Ways To Avoid Or
Minimize Charges On Redemption.
CDSC Waivers
The Funds will waive the CDSCs on redemptions of shares in the following circumstances, among others:
 
 
permitted exchanges of shares;
 
 
following the death or disability of a shareholder;
 
 
if the redemption represents a minimum required distribution from an IRA or other retirement plan to a shareholder who has attained the age of 73; or
 
 
if the redemption is necessary to meet a plan participant’s or beneficiary’s request for a distribution or loan from a group retirement plan or to accommodate a plan participant’s or beneficiary’s direction to reallocate his or her plan account among other investment alternatives available under a group retirement plan.
Please see the Funds’ SAI for a list of additional circumstances in which a Fund will waive the CDSCs on redemptions of shares.
Your financial intermediary may have different policies and procedures regarding eligibility for CDSC waivers. See Appendix C—Financial Intermediary Waivers.
Other Programs
Dividend Reinvestment Program
Unless you specifically have elected to receive dividends or distributions in cash, they will automatically be reinvested, without an initial sales charge or CDSC, in the same class of additional shares of a Fund. If you elect to receive distributions in cash, you will only receive a check if the amount of the distribution is equal to or exceeds $25.00. Distributions of less than $25.00 will automatically be reinvested in shares of the Fund. To receive distributions of less than $25.00 in cash, you must have bank instructions associated to your account so that distributions can be delivered to you electronically via Electronic Funds Transfer using the Automated Clearing House or “ACH”. In addition, the Fund may reinvest your distribution check (and future checks) in additional shares of the Fund if your check (i) is returned as undeliverable or (ii) remains uncashed for nine months.
 
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Dividend Direction Plan
A shareholder who already maintains accounts in more than one AB Mutual Fund may direct the automatic investment of income dividends and/or capital gains by one Fund, in any amount, without the payment of any sales charges, in shares of any eligible class of one or more other AB Mutual Fund(s) in which the shareholder maintains an account.
Automatic Investment Program
The Automatic Investment Program allows investors to purchase shares of a Fund through pre-authorized transfers of funds from the investor’s bank account. Under the Automatic Investment Program, an investor may (i) make an initial purchase of at least $2,500 and invest at least $50 monthly or (ii) make an initial purchase of less than $2,500 and commit to a monthly investment of $200 or more until the investor’s account balance is $2,500 or more. Please see the Funds’ SAI for more details.
Reinstatement Privilege
A shareholder who has redeemed all or any portion of his or her Class A shares may reinvest all or any portion of the proceeds from the redemption in Class A shares of any AB Mutual Fund at NAV without any sales charge, if the reinvestment is made within 120 calendar days after the redemption date.
Systematic Withdrawal Plan
The Funds offer a systematic withdrawal plan that permits the redemption of Class A or Class C shares without payment of a CDSC. Under this plan, redemptions equal to 1% a month, 2% every two months or 3% a quarter of the value of a Fund account would be free of a CDSC. For Class A and Class C shares, shares held the longest would be redeemed first.
CHOOSING A SHARE CLASS
Each share class represents an interest in the same portfolio of securities, but each class has its own sales charge and expense structure allowing you to choose the class that best fits your situation. In choosing a class of shares, you should consider:
 
 
the amount you intend to invest;
 
 
how long you expect to own shares;
 
 
expenses associated with owning a particular class of shares;
 
 
whether you qualify for any reduction or waiver of sales charges (for example, if you are making a large investment that qualifies for a Quantity Discount, you might consider purchasing Class A shares); and
 
 
whether a share class is available for purchase (Class R, K and I shares are only offered to group retirement plans, not individuals).
Among other things, Class A shares, with their lower Rule 12b-1 fees, are designed for investors with a long-term investing time frame. Class C shares should not be considered as a long-term investment because they are subject to a higher distribution fee for eight years. Class C shares do not, however, have an initial sales charge or a CDSC so long as the shares are held for one year or more. Class C shares are designed for investors with a short-term investing time frame.
A transaction, service, administrative or other similar fee may be charged by your broker-dealer, agent or other financial intermediary, with respect to the purchase, sale or exchange of Class A, Class C, Advisor Class or Class Z shares made through your financial advisor, or in connection with participation on the intermediary’s platform. Financial intermediaries, a fee-based program, or, for group retirement plans, a plan sponsor or plan fiduciary, also may impose requirements on the purchase, sale or exchange of shares that are different from, or in addition to, those described in this Prospectus and the Funds’ SAI, including requirements as to the minimum initial and subsequent investment amounts. In addition, group retirement plans may not offer all classes of shares of a Fund. A Fund is not responsible for, and has no control over, the decision of any financial intermediary, plan sponsor or fiduciary to impose such differing requirements.
You should consult your financial advisor for assistance in choosing a class of Fund shares.
PAYMENTS TO FINANCIAL ADVISORS AND THEIR FIRMS
Financial intermediaries market and sell shares of the Funds. These financial intermediaries employ financial advisors and receive compensation for selling shares of the Funds. This compensation is paid from various sources, including any sales charge, CDSC, and/or Rule 12b-1 fee that you or the Funds may pay. Your individual financial advisor may receive some or all of the amounts paid to the financial intermediary that employs him or her.
 
WHAT IS A FINANCIAL INTERMEDIARY?
A financial intermediary is a firm that receives compensation for selling shares of the Funds offered in this Prospectus and/or provides services to the Funds’ shareholders. Financial intermediaries may include, among others, your broker, your financial planner or advisor, banks and insurance companies. Financial intermediaries may employ financial advisors who deal with you and other investors on an individual basis.
All or a portion of the initial sales charge that you pay is paid by ABI to financial intermediaries selling Class A shares. ABI may also pay financial intermediaries a fee of up to 1% on purchases of Class A shares that are sold without an initial sales charge.
ABI pays, at the time of your purchase, a commission to financial intermediaries in an amount equal to 1% of your investment for sales of Class C shares.
For Class A, Class C, Class R and Class K shares, up to 100% of the Rule 12b-1 fees applicable to these classes of shares each year may be paid to financial intermediaries.
 
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Your financial advisor’s firm receives compensation from the Funds, ABI and/or the Adviser in several ways from various sources, which include some or all of the following:
 
  -
upfront sales commissions;
 
  -
Rule 12b-1 fees;
 
  -
additional distribution support;
 
  -
defrayal of costs for educational seminars and training; and
 
  -
payments related to providing shareholder recordkeeping and/or transfer agency services.
 
Please read this Prospectus carefully for information on this compensation.
Other Payments for Distribution Services and Educational Support
In addition to the commissions paid to or charged by financial intermediaries at the time of sale and Rule 12b-1 fees, some or all of which are paid to financial intermediaries (and, in turn, may be paid to your financial advisor), ABI, at its expense, currently provides additional payments to firms that sell shares of the AB Mutual Funds. Although the individual components may be higher and the total amount of payments made to each qualifying firm in any given year may vary, the total amount paid to a financial intermediary in connection with the sale of shares of the AB Mutual Funds will generally not exceed the sum of (a) 0.25% of the current year’s fund sales by that firm and (b) 0.10% of average daily net assets attributable to that firm over the year. These sums include payments for distribution analytical data regarding AB Mutual Fund sales by financial advisors of these firms and to reimburse directly or indirectly the costs incurred by these firms and their employees in connection with educational seminars and training efforts about the AB Mutual Funds for the firms’ employees and/or their clients and potential clients. The costs and expenses associated with these efforts may include travel, lodging, entertainment and meals. ABI may pay a portion of “ticket” or other transactional charges.
For 2023, ABI’s additional payments to these firms for distribution services and educational support related to the AB Mutual Funds are expected to be approximately 0.04% of the average monthly assets of the AB Mutual Funds, or approximately $24 million. For 2022, ABI estimates that it will have paid approximately 0.04% of the average monthly assets of the AB Mutual Funds, or approximately $23 million, for distribution services and educational support related to the AB Mutual Funds.
A number of factors are considered in determining the additional payments, including each firm’s AB Mutual Fund sales, assets and redemption rates, and the willingness and ability of the firm to give ABI access to its financial advisors for educational and marketing purposes. In some cases, firms will include the AB Mutual Funds on a “preferred list”. ABI’s goal is to make the financial advisors who interact with current and prospective investors and shareholders more knowledgeable about the AB Mutual Funds so that they can provide suitable information and advice about the funds and related investor services.
The Funds and ABI also make payments for recordkeeping and other transfer agency services to financial intermediaries that sell AB Mutual Fund shares. Please see “Management of the Funds—Transfer Agency and Retirement Plan Services” below. If paid by the Funds, these expenses are included in “Other Expenses” under “Fees and Expenses of the Fund—Annual Fund Operating Expenses” in the Summary Information at the beginning of this Prospectus.
 
If one mutual fund sponsor makes greater distribution assistance payments than another, your financial advisor and his or her firm may have an incentive to recommend one fund complex over another. Similarly, if your financial advisor or his or her firm receives more distribution assistance for one share class versus another, then they may have an incentive to recommend that class.
Please speak with your financial advisor to learn more about the total amounts paid to your financial advisor and his or her firm by the Funds, the Adviser, ABI and by sponsors of other mutual funds he or she may recommend to you. You should also consult disclosures made by your financial advisor at the time of purchase.
As of the date of this Prospectus, ABI anticipates that the firms that will receive additional payments for distribution services and/or educational support include:
Advisor Group
American Enterprise Investment Services
Cadaret, Grant & Co.
Citigroup Global Markets
Citizens Securities
Equitable Advisors
Great-West Life & Annuity Insurance Co.
John Hancock Retirement Plan Services
JP Morgan Securities
Lincoln Financial Advisors Corp.
Lincoln Financial Securities Corp.
LPL Financial
Merrill Lynch
Morgan Stanley
Northwestern Mutual Investment Services
One America
PNC Investments
Principal Life
Raymond James
RBC Wealth Management
Robert W. Baird
Truist Investment Services
UBS Financial Services
US Bancorp Investments
Wells Fargo Advisors
 
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Although the Funds may use brokers and dealers that sell shares of the Funds to effect portfolio transactions, the Funds do not consider the sale of AB Mutual Fund shares as a factor when selecting brokers or dealers to effect portfolio transactions.
HOW TO EXCHANGE SHARES
You may exchange your Fund shares for shares of the same class of other AB Mutual Funds provided that the other fund offers the same class of shares and, in the case of retirement plans, is an investment option under the plan. Exchanges of shares are made at the next-determined NAV, without sales or service charges, after your order is received in proper form. All exchanges are subject to the minimum investment restrictions set forth in the prospectus for the AB Mutual Fund whose shares are being acquired. You may request an exchange either directly or through your financial intermediary or, in the case of retirement plan participants, by following the procedures specified by your plan sponsor or plan recordkeeper. In order to receive a day’s NAV, ABIS must receive and confirm your telephone exchange request by the Fund Closing Time on that day. The Funds may modify, restrict, or terminate the exchange privilege on 60 days’ written notice.
HOW TO SELL OR REDEEM SHARES
You may “redeem” your shares (i.e., sell your shares to a Fund) on any day the Exchange is open, either directly or through your financial intermediary or, in the case of retirement plan participants, by following the procedures specified by your plan sponsor or plan recordkeeper. For Advisor Class and Class Z shares, if you are in doubt about what procedures or documents are required by your fee-based program or employee benefit plan to sell your shares, you should contact your financial intermediary.
Your sale price will be the next-determined NAV, less any applicable CDSC, after a Fund receives your redemption request in proper form. Each Fund expects that it will typically take one to three business days following the receipt of your redemption request in proper form to pay out redemption proceeds. However, while not expected, payment of redemption proceeds may take up to seven days from the day your request is received in proper form by the Fund by the Fund Closing Time. If you recently purchased your shares by check or electronic funds transfer, your redemption payment may be delayed until the Fund is reasonably satisfied that the check or electronic funds transfer has been collected (which may take up to 10 days).
Each Fund expects, under normal circumstances, to use cash or cash equivalents held by the Fund to satisfy redemption requests. A Fund may also determine to sell portfolio assets to meet such requests. Under certain circumstances, including stressed market conditions, a Fund may determine to pay a redemption request by accessing a bank line of credit or by distributing wholly or partly in kind securities from its portfolio, instead of cash.
Sale In-Kind. Each Fund normally pays proceeds of a sale of Fund shares in cash. However, each Fund has reserved the right to pay the sale price in whole or in part by a distribution in-kind of securities in lieu of cash. If the redemption payment is made in-kind, the securities received will be subject to market risk and may decline in value. In addition, you may incur brokerage commissions if you elect to sell the securities for cash.
Selling Shares Through Your Financial Intermediary or Retirement Plan
Your financial intermediary or plan recordkeeper must receive your sales request by the Fund Closing Time for you to receive that day’s NAV, less any applicable CDSC. Your financial intermediary, plan sponsor or plan recordkeeper is responsible for submitting all necessary documentation to the Fund and may charge you a fee for this service.
Selling Shares Directly to the Fund
By Mail:
 
Send a signed letter of instruction or stock power, along with certificates, to:
AllianceBernstein Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
 
 
For certified or overnight deliveries, send to:
AllianceBernstein Investor Services, Inc.
8000 IH 10 W, 13th floor
San Antonio, TX 78230
 
 
For your protection, a bank, a member firm of a national stock exchange or another eligible guarantor institution must guarantee signatures. Stock power forms are available from your financial intermediary, ABIS and many commercial banks. Additional documentation is required for the sale of shares by corporations, intermediaries, fiduciaries and surviving joint owners. If you have any questions about these procedures, contact ABIS.
By Telephone:
 
You may redeem your shares for which no stock certificates have been issued by telephone request. Call ABIS at (800) 221-5672 with instructions on how you wish to receive your sale proceeds.
 
 
ABIS must receive and confirm a telephone redemption request by the Fund Closing Time, for you to receive that day’s NAV, less any applicable CDSC.
 
 
For your protection, ABIS will request personal or other information from you to verify your identity and will generally record the calls. Neither the Fund nor the Adviser, ABIS, ABI or other Fund agent will be liable for any loss, injury, damage or expense as a result of acting upon telephone instructions purporting to be on your behalf that ABIS reasonably believes to be genuine.
 
 
If you have selected electronic funds transfer in your Mutual Fund Application, the redemption proceeds will be sent directly to your bank. Otherwise, the proceeds will be mailed to you.
 
 
Redemption requests by electronic funds transfer or check may not exceed $100,000 per Fund account per day.
 
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Telephone redemption is not available for shares held in nominee or “street name” accounts, retirement plan accounts, or shares held by a shareholder who has changed his or her address of record within the previous 30 calendar days.
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES
Each Fund’s Board has adopted policies and procedures designed to detect and deter frequent purchases and redemptions of Fund shares or excessive or short-term trading that may disadvantage long-term Fund shareholders. These policies are described below. There is no guarantee that the Funds will be able to detect excessive or short-term trading or to identify shareholders engaged in such practices, particularly with respect to transactions in omnibus accounts. Shareholders should be aware that application of these policies may have adverse consequences, as described below, and should avoid frequent trading in Fund shares through purchases, sales and exchanges of shares. Each Fund reserves the right to restrict, reject, or cancel, without any prior notice, any purchase or exchange order for any reason, including any purchase or exchange order accepted by any shareholder’s financial intermediary.
Risks Associated With Excessive or Short-Term Trading Generally. While the Funds will try to prevent market timing by utilizing the procedures described below, these procedures may not be successful in identifying or stopping excessive or short-term trading in all circumstances. By realizing profits through short-term trading, shareholders that engage in rapid purchases and sales or exchanges of a Fund’s shares dilute the value of shares held by long-term shareholders. Volatility resulting from excessive purchases and sales or exchanges of Fund shares, especially involving large dollar amounts, may disrupt efficient portfolio management and cause a Fund to sell portfolio securities at inopportune times to raise cash to accommodate redemptions relating to short-term trading activity. In particular, a Fund may have difficulty implementing its long-term investment strategies if it is forced to maintain a higher level of its assets in cash to accommodate significant short-term trading activity. In addition, a Fund may incur increased administrative and other expenses due to excessive or short-term trading, including increased brokerage costs and realization of taxable capital gains.
Funds that may invest significantly in securities of foreign issuers may be particularly susceptible to short-term trading strategies. This is because securities of foreign issuers are typically traded on markets that close well before the time a Fund calculates its NAV (ordinarily at 4:00 p.m., Eastern time), which gives rise to the possibility that developments may have occurred in the interim that would affect the value of these securities. The time zone differences among international stock markets can allow a shareholder engaging in a short-term trading strategy to exploit differences in Fund share prices that are based on closing prices of securities of foreign issuers established some time before the Fund calculates its own share price (referred to as “time zone arbitrage”). Each Fund has procedures, referred to as fair value pricing, designed to adjust closing market prices of securities of foreign issuers to reflect what is believed to be the fair value of those securities at the time the Fund calculates its NAV. While there is no assurance, the Funds expect that the use of fair value pricing, in addition to the short-term trading policies discussed below, will significantly reduce a shareholder’s ability to engage in time zone arbitrage to the detriment of other Fund shareholders.
A shareholder engaging in a short-term trading strategy may also target a Fund irrespective of its investments in securities of foreign issuers. Any Fund that invests in securities that are, among other things, thinly traded or traded infrequently, or that have a limited public float has the risk that the current market price for the securities may not accurately reflect current market values. A shareholder may seek to engage in short-term trading to take advantage of these pricing differences (referred to as “price arbitrage”). All Funds may be adversely affected by price arbitrage.
Policy Regarding Short-Term Trading. Purchases and exchanges of shares of the Funds should be made for investment purposes only. The Funds seek to prevent patterns of excessive purchases and sales of Fund shares to the extent they are detected by the procedures described below, subject to each Fund’s ability to monitor purchase, sale and exchange activity. The Funds reserve the right to modify this policy, including any surveillance or account blocking procedures established from time to time to effectuate this policy, at any time without notice.
 
 
Transaction Surveillance Procedures. The Funds, through their agents, ABI and ABIS, maintain surveillance procedures to detect excessive or short-term trading in Fund shares. This surveillance process involves several factors, which include scrutinizing transactions in Fund shares that exceed certain monetary thresholds or numerical limits within a specified period of time. Generally, more than two exchanges of Fund shares during any 60-day period or purchases of shares followed by a sale within 60 days will be identified by these surveillance procedures. For purposes of these transaction surveillance procedures, the Funds may consider trading activity in multiple accounts under common ownership, control, or influence. Trading activity identified by either, or a combination, of these factors, or as a result of any other information available at the time, will be evaluated to determine whether such activity might constitute excessive or short-term trading. With respect to managed or discretionary accounts for which the account owner gives his/her broker, investment adviser or other third party authority to buy and sell Fund shares, the Funds may consider trades initiated by the account owner, such as trades initiated in connection with bona fide cash management purposes, separately in their analysis. These surveillance procedures may be modified from time to time, as necessary or appropriate to improve the detection of excessive or short-term trading or to address specific circumstances.
 
 
Account Blocking Procedures. If the Funds determine, in their sole discretion, that a particular transaction or pattern of transactions identified by the transaction surveillance procedures described above is excessive or short-term trading in
 
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nature, the Funds will take remedial actions that may include issuing a warning, revoking certain account-related activities (such as the ability to place purchase, sale and exchange orders over the internet or by phone) or prohibiting or “blocking” future purchase or exchange activity. However, sales of Fund shares back to a Fund or redemptions will continue to be permitted in accordance with the terms of the Fund’s current Prospectus. As a result, unless the shareholder redeems his or her shares, which may have consequences if the shares have declined in value, a CDSC is applicable or adverse tax consequences may result, the shareholder may be “locked” into an unsuitable investment. A blocked account will generally remain blocked for 90 days. Subsequent detections of excessive or short-term trading may result in an indefinite account block, or an account block until the account holder or the associated broker, dealer or other financial intermediary provides evidence or assurance acceptable to the Fund that the account holder did not or will not in the future engage in excessive or short-term trading.
 
 
Applications of Surveillance Procedures and Restrictions to Omnibus Accounts. Omnibus account arrangements are common forms of holding shares of the Funds, particularly among certain brokers, dealers and other financial intermediaries, including sponsors of retirement plans. The Funds apply their surveillance procedures to these omnibus account arrangements. As required by SEC rules, the Funds have entered into agreements with all of their financial intermediaries that require the financial intermediaries to provide the Funds, upon the request of the Funds or their agents, with individual account level information about their transactions. If the Funds detect excessive trading through their monitoring of omnibus accounts, including trading at the individual account level, the financial intermediaries will also execute instructions from the Funds to take actions to curtail the activity, which may include applying blocks to accounts to prohibit future purchases and exchanges of Fund shares. For certain retirement plan accounts, the Funds may request that the retirement plan or other intermediary revoke the relevant participant’s privilege to effect transactions in Fund shares via the internet or telephone, in which case the relevant participant must submit future transaction orders via the U.S. Postal Service (i.e., regular mail).
HOW THE FUNDS VALUE THEIR SHARES
Each Fund’s NAV is calculated on any day the Exchange is open at the close of regular trading (ordinarily, 4:00 p.m., Eastern time, but sometimes earlier, as in the case of scheduled half-day trading or unscheduled suspensions of trading). To calculate NAV, a Fund’s assets are valued and totaled, liabilities are subtracted, and the balance, called net assets, is divided by the number of shares outstanding. If a Fund invests in securities that are primarily traded on foreign exchanges that trade on weekends or other days when the Fund does not price its shares, the NAV of the Fund’s shares may change on days when shareholders will not be able to purchase or redeem their shares in the Fund.
The Funds value their securities 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 each Fund’s Board. Pursuant to these procedures, the Adviser, as each Fund’s “valuation designee” pursuant to Rule 2a-5 of the 1940 Act, is responsible for making all fair value determinations relating to a Fund’s portfolio investments, subject to oversight of the Fund’s Board.
When making a fair value determination, the Adviser may take into account any factors it deems appropriate. A Fund may determine fair value based upon developments related to a specific security, current valuations of foreign stock indices (as reflected in U.S. futures markets) and/or U.S. sector or broader stock market indices. The prices of securities used by the Fund to calculate its NAV may differ from quoted or published prices for the same securities. Making a fair value determination involves subjective judgments, and it is possible that the fair value determined for a security is materially different than the value that could be realized upon the sale of that security.
The Funds expect to use fair value pricing for securities primarily traded on U.S. exchanges under certain circumstances, such as the early closing of the exchange on which a security is traded or suspension of trading in the security, or for securities for which market quotations are not readily available or deemed unreliable (including restricted securities). The Funds use fair value pricing routinely for securities primarily traded in non-U.S. markets because, among other things, most foreign markets close well before a Fund ordinarily 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. Factors considered in fair value pricing may include, but are not limited to, interest rates, foreign currency exchange rates, levels of publicly available benchmarks, prices of futures contracts or comparable securities, or information obtained by analysis of the issuers’ financial statements. Because most fixed income securities are not traded on exchanges, they are primarily valued using fair value prices provided by independent pricing services when the valuation designee reasonably believes that such prices reflect the fair value of the instrument.
The Adviser has established a valuation committee of senior officers and employees of the Adviser (“Valuation Committee”) to fulfill the Adviser’s responsibilities as each Fund’s valuation designee, which operates under the policies and procedures approved by the Board, to value the Fund’s assets on behalf of the Fund. The Valuation Committee values Fund assets as described above. More information about the valuation of the Funds’ assets is available in the Funds’ SAI.
 
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MANAGEMENT OF THE FUNDS
 
 
INVESTMENT ADVISER
Each Fund’s investment adviser is AllianceBernstein L.P., 501 Commerce Street, Nashville, TN 37203. The Adviser, which is a controlled indirect subsidiary of Equitable Holdings, Inc., is a leading global investment adviser supervising client accounts with assets as of September 30, 2022, totaling approximately $613 billion (of which approximately $118 billion represented assets of registered investment companies sponsored by the Adviser). As of September 30, 2022, the Adviser managed retirement assets for many of the largest public and private employee benefit plans (including 17 of the nation’s FORTUNE 100 companies), for public employee retirement funds in 33 of the 50 states, for investment companies, and for foundations, endowments, banks and insurance companies worldwide. The 28 registered investment companies managed by the Adviser, comprising approximately 92 separate investment portfolios, had as of September 30, 2022 approximately 2.8 million shareholder accounts.
The Adviser provides investment advisory services and order placement facilities for each of the Funds. For these advisory services, each Fund paid the Adviser during its most recent fiscal year or period a management fee as a percentage of average daily net assets as follows:
 
Fund   Fee as a Percentage of
Average Daily Net
Assets
  Fiscal Year or Period
Ended
AB Total Return Bond Portfolio
      .16 %*       10/31/22
AB Global Bond Fund
      .46 %*        9/30/22
AB Sustainable Thematic Credit Portfolio
      .33 %*        10/31/22
AB High Income Fund
      .48 %*       10/31/22
AB Limited Duration High Income Portfolio
      .50 %*       9/30/22
AB Income Fund
      .39 %*       10/31/22
AB Short Duration Income Portfolio
      .00 %*       10/31/22
AB High Yield Portfolio
      .00 %*       10/31/22
AB Tax-Aware Fixed Income Opportunities Portfolio
      .30 %*       10/31/22
*
Fee stated net of any waivers and/or reimbursements.
A discussion regarding the basis for the Board’s approval of each Fund’s investment advisory agreement is available in the Fund’s most recent annual report to shareholders as follows:
 
Fund    Annual Report
Period
AB Total Return Bond Portfolio
       10/31/22
AB Global Bond Fund
       9/30/22
AB Sustainable Thematic Credit Portfolio
       10/31/22
AB High Income Fund
       10/31/22
AB Limited Duration High Income Portfolio
       9/30/22
AB Income Fund
       10/31/22
AB Short Duration Income Portfolio
       10/31/22
AB High Yield Portfolio
       10/31/22
AB Tax-Aware Fixed Income Opportunities Portfolio
       10/31/22
The Adviser acts as an investment adviser to other persons, firms, or corporations, including investment companies, hedge funds, pension funds, and other institutional investors. The Adviser may receive management fees, including performance fees, that may be higher or lower than the advisory fees it receives from the Funds. Certain other clients of the Adviser have investment objectives and policies similar to those of a Fund. The Adviser may, from time to time, make recommendations that result in the purchase or sale of a particular security by its other clients simultaneously with a Fund. If transactions on behalf of more than one client during the same period increase the demand for securities being purchased or the supply of securities being sold, there may be an adverse effect on price or quantity. It is the policy of the Adviser to allocate advisory recommendations and the placing of orders in a manner that is deemed equitable by the Adviser to the accounts involved, including the Funds. When two or more of the clients of the Adviser (including a Fund) are purchasing or selling the same security on a given day from the same broker or dealer, such transactions are averaged as to price. The securities are then allocated to participating accounts using automated algorithms designed to achieve a fair, equitable and objective distribution of the securities over time.
 
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PORTFOLIO MANAGERS
The management of, and investment decisions for, the Funds’ portfolios are made by certain Investment Policy Teams. Each Investment Policy Team relies heavily on the fundamental analysis and research of the Adviser’s large internal research staff. No one person is principally responsible for coordinating each Fund’s investments.
The following table lists the Investment Policy Teams, the person within each Investment Policy Team with the most significant responsibility for day-to-day management of each Fund’s portfolio, the length of time that each person has been jointly and primarily responsible for the Fund, and each person’s principal occupation during the past five years:
 
Fund and
Responsible
Team
  Employee; Year; Title   Principal Occupation(s)
During the Past Five (5) Years
AB Total Return Bond Portfolio
U.S. Investment Grade Core Fixed Income Team
  Michael Canter; since 2016; Senior Vice President of the Adviser, and Director and Chief Investment Officer of Securitized Assets   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  Janaki Rao; since 2018; Senior Vice President of the Adviser, and Director of US Multi-Sector Fixed Income Portfolios   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
AB Global Bond Fund
Global Fixed Income Investment Team
  Scott A. DiMaggio; since 2005; Senior Vice President of the Adviser, and Co-Head of Fixed Income   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  Matthew S. Sheridan; since 2007; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  John Taylor; since 2019; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
AB Sustainable Thematic Credit Portfolio
Sustainable Thematic Credit Credit Team
  Gershon M. Distenfeld; since 2021; Senior Vice President, Co-Head of Fixed Income, and Director of Credit of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  Tiffanie Wong; since 2021; Senior Vice President and Portfolio Manager of the Adviser, Director of Fixed Income Responsible Investing Portfolio Management, and Director of US Investment Grade Credit   Senior Vice President and Portfolio Manager of the Adviser, with which she has been associated in a substantially similar capacity to her current position since prior to 2018.
AB High Income Fund
Global High Income Investment Team
  Christian DiClementi; since 2021; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  Gershon M. Distenfeld; since 2008; (see above)   (see above)
  Fahd Malik; since 2021; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  Matthew S. Sheridan; since 2005; (see above)   (see above)
  William Smith; since 2022; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
AB Limited Duration High Income Portfolio
Limited Duration High Income Investment Team
 
Gershon M. Distenfeld; since 2011; (see above)
 
Robert Schwartz; since 2022; Senior Vice President of the Adviser
 
(see above)
 
Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2018.
  William Smith; since 2018; (see above)   (see above)
AB Income Fund
U.S. Investment Grade: Core Fixed Income Investment Team
  Scott A. DiMaggio; since 2019; (see above)   (see above)
  Gershon M. Distenfeld; since 2016; (see above)   (see above)
  Fahd Malik; since 2022; (see above)   (see above)
  Matthew S. Sheridan; since 2016; (see above)   (see above)
AB Short Duration Income Portfolio
Short Duration Income Investment Team
  Scott A. DiMaggio; since 2018; (see above)   (see above)
  Gershon M. Distenfeld; since 2018; (see above)   (see above)
  Fahd Malik; since 2022; (see above)   (see above)
  Matthew S. Sheridan; since 2018; (see above)   (see above)
 
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Fund and
Responsible
Team
  Employee; Year; Title   Principal Occupation(s)
During the Past Five (5) Years
AB High Yield Portfolio
High Yield Investment Team
  Gershon M. Distenfeld; since 2014; (see above)   (see above)
  Robert Schwartz; since 2022; (see above)   (see above)
  William Smith; since 2018; (see above)   (see above)
AB Tax-Aware Fixed Income Opportunities Portfolio
Tax-Aware Investment Team
  Daryl Clements; since September 2022; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated since prior to 2018.
  Terrance T. Hults; since 2013; Senior Vice President of the Adviser   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity since prior to 2018.
  Matthew J. Norton; since 2017; Senior Vice President of the Adviser, and Chief Investment Officer—Municipal Bonds   Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity since prior to 2018.
  Andrew D. Potter; since 2018; Vice President of the Adviser   Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position as a portfolio manager since prior to 2018.
 
The Funds’ SAI provides additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Funds.
TRANSFER AGENCY AND RETIREMENT PLAN SERVICES
ABIS acts as the transfer agent for the Funds. ABIS, an indirect wholly-owned subsidiary of the Adviser, registers the transfer, issuance, and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders.
Many Fund shares are owned by financial intermediaries for the benefit of their customers. Retirement plans may also hold Fund shares in the name of the plan, rather than the participant. In those cases, the Funds often do not maintain an account for you. Thus, some or all of the transfer agency functions for these and certain other accounts are performed by the financial intermediaries and plan recordkeepers. Financial intermediaries and recordkeepers, which may have affiliated financial intermediaries that sell shares of the AB Mutual Funds, may be paid by a Fund, the Adviser, ABI and ABIS (i) account fees in amounts up to $19 per account per annum, (ii) asset-based fees of up to 0.25% (except in respect of a limited number of intermediaries) per annum of the average daily assets held through the intermediary, or (iii) a combination of both. These amounts include fees for shareholder servicing, sub-transfer agency, sub-accounting and recordkeeping services. These amounts do not include fees for shareholder servicing that may be paid separately by the Fund pursuant to its Rule 12b-1 plan. Amounts paid by the Funds for these services are included in “Other Expenses” under “Fees and Expenses of the Fund” in the Summary Information section of this Prospectus. In addition, financial intermediaries may be affiliates of entities that receive compensation from the Adviser or ABI for maintaining retirement plan “platforms” that facilitate trading by affiliated and non-affiliated financial intermediaries and recordkeeping for retirement plans.
Because financial intermediaries and plan recordkeepers may be paid varying amounts per class for sub-transfer agency and related recordkeeping services, the service requirements of which may also vary by class, this may create an additional incentive for financial intermediaries and their financial advisors to favor one fund complex over another or one class of shares over another.
For more information, please refer to the Funds’ SAI, call your financial advisor or visit our website at www.abfunds.com.
 
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DIVIDENDS, DISTRIBUTIONS AND TAXES
 
 
DIVIDENDS AND DISTRIBUTIONS INFORMATION
Income dividends and capital gains distributions, if any, declared by a Fund on its outstanding shares will, at the election of each shareholder, be paid in cash or in additional shares of the same class of shares of that Fund. If paid in additional shares, the shares will have an aggregate NAV as of the close of business on the declaration date of the dividend or distribution equal to the cash amount of the dividend or distribution.
Income dividends are typically declared daily and paid monthly; capital gains distributions for the Funds typically occur annually in December. During the fourth quarter of the calendar year, typically in early November, an estimate of each Fund’s capital gains distribution, if any, will be made available on the Fund’s website at www.alliancebernstein.com/investments/us/tax-center.htm. Tax efficiency is not a stated investment objective of the Funds, except AB Tax-Aware Fixed Income Opportunities Portfolio.
You may make an election to receive dividends and distributions in cash or in shares at the time you purchase shares. Your election can be changed at any time prior to a record date for a dividend. There is no sales or other charge in connection with the reinvestment of dividends or capital gains distributions. Cash dividends may be paid by check, or, at your election, electronically via the ACH network.
If you receive an income dividend or capital gains distribution in cash you may, within 120 days following the date of its payment, reinvest the dividend or distribution in additional shares of that Fund without charge by returning to the Adviser, with appropriate instructions, the check representing the dividend or distribution. Thereafter, unless you otherwise specify, you will be deemed to have elected to reinvest all subsequent dividends and distributions in shares of that Fund.
While it is the intention of each Fund to distribute to its shareholders substantially all of each fiscal year’s net income and net realized capital gains, if any, the amount and timing of any dividend or distribution will depend on the realization by the Fund of income and capital gains from investments. There is no fixed dividend rate and there can be no assurance that a Fund will pay any dividends or realize any capital gains. The final determination of the amount of a Fund’s return of capital distributions for the period will be made after the end of each calendar year.
TAX INFORMATION
Any investment in a Fund typically involves several tax considerations. The information below is intended as a general summary for U.S. citizens and residents. Please see the SAI for additional information. Because each person’s tax situation is different, you are encouraged to consult your tax adviser about the tax implications of an investment in a Fund in your particular situation. You also can visit the Internal Revenue Service (IRS) website at www.irs.gov for more information about applicable tax rates and other information.
You will normally have to pay federal income tax, and any state or local income taxes, on the distributions you receive from a Fund, whether you take the distributions in cash or reinvest them in additional shares. Distributions of net capital gains from the sale of investments that a Fund owned for more than one year and that are properly designated as capital gains distributions are taxable as long-term capital gains. Distributions of dividends to a Fund’s non-corporate shareholders may be treated as “qualified dividend income”, which is taxed at reduced rates, if such distributions are derived from, and designated by a Fund as, “qualified dividend income” and provided that holding period and other requirements are met by both the shareholder and the Fund. “Qualified dividend income” generally is income derived from dividends from U.S. corporations and “qualified foreign corporations”. Other distributions by a Fund are generally taxable to you as ordinary income. A Fund will notify you as to how much of the Fund’s distributions, if any, qualify for these reduced tax rates. Dividends declared in October, November, or December and paid in January of the following year are taxable as if they had been paid the previous December. If you purchase shares before the Fund deducts a distribution from its NAV, you will pay the full price for the shares and then receive a portion of the price back as a distribution, which may be taxable.
Investment income received by a Fund from sources within foreign countries may be subject to foreign income taxes withheld at the source. To the extent that any Fund is liable for foreign income taxes withheld at the source, the Fund intends, if possible, to operate so as to meet the requirements of the Code to “pass through” to the Fund’s shareholders credits for foreign income taxes paid (or to permit shareholders to claim a deduction for such foreign taxes), but there can be no assurance that any Fund will be able to do so, and Funds that invest primarily in U.S. securities will not do so. Furthermore, a shareholder’s ability to claim a foreign tax credit or deduction for foreign taxes paid by a Fund may be subject to certain limitations imposed by the Code, as a result of which a shareholder may not be permitted to claim a credit or deduction for all or a portion of the amount of such taxes.
Under certain circumstances, if a Fund realizes losses (e.g., from fluctuations in currency exchange rates) after paying a dividend, all or a portion of the dividend may subsequently be characterized as a return of capital. Returns of capital are generally nontaxable, but will reduce a shareholder’s basis in shares of the Fund. If that basis is reduced to zero (which could happen if the shareholder does not reinvest distributions and returns of capital are significant), any further returns of capital will be taxable as a capital gain.
AB Tax-Aware Fixed Income Opportunities Portfolio
Distributions to shareholders out of tax-exempt interest income earned by the Fund are not subject to federal income tax. Under current tax law, some individuals may be subject to the AMT on distributions to shareholders out of income from the
 
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AMT-Subject bonds in which the Fund invests. Distributions out of taxable interest, other investment income, and net realized short-term capital gains are taxable to shareholders as ordinary income. Any distributions of long-term capital gains generally will be taxable to you as long-term capital gains regardless of how long you have held your shares. Since the Fund’s investment income is derived from interest rather than dividends, no portion of its distributions will be eligible for the dividends-received deduction available to corporations, and for non-corporate shareholders no portion of such distributions will be treated as “qualified dividend income” taxable at the same potential tax rates applicable to long-term capital gains.
The Fund anticipates that a substantial portion of its dividends will be exempt from regular federal income taxes. Shareholders may be subject to state and local taxes on distributions from the Fund, including distributions that are exempt from federal income taxes.
Interest on indebtedness incurred by shareholders to purchase or carry shares of the Fund is not deductible for federal income tax purposes. Further, persons who are “substantial users” (or related persons) of facilities financed by AMT-Subject bonds should consult their tax advisers before purchasing shares of the Fund.
General
For tax purposes, an exchange is treated as a sale of Fund shares. The sale or exchange of Fund shares is a taxable transaction for federal income tax purposes.
Each year shortly after December 31, a Fund will send you tax information stating the amount and type of all its distributions for the year. You are encouraged to consult your tax adviser about the federal, state, and local tax consequences in your particular circumstances, as well as about any possible foreign tax consequences.
A Fund may experience relatively large redemptions due to transactions in Fund shares by significant investors. If large shareholder redemptions occur, a Fund could be required to sell portfolio securities and this may result in the Fund’s realization of net capital gains, which could be significant. Certain investment advisers, including an affiliate of the Adviser, provide tax management services to their clients that invest in the Funds. As part of these services, those investment advisers conduct year-end tax trading on behalf of their clients to offset capital gains taxes where possible, which may result in buying and selling shares in one or more of the Funds. These transactions could result in a Fund experiencing temporary asset inflows or outflows at year end. The Adviser’s affiliate coordinates with the Adviser to try to ensure that the implementation of its tax management strategies will not compromise the interests of any Fund or its shareholders, and the Adviser considers that it has a fiduciary duty to both the Funds and its affiliate’s clients. The implementation of tax management strategies by such investment advisers may require a Fund to sell portfolio securities to satisfy redemption requests or increase asset allocations to cash or cash equivalents, which could result in the Fund’s realization of capital gains. If a significant amount of a Fund’s assets is allocated to cash or cash equivalents, it may be more difficult for the Fund to achieve its investment objective. Implementation of tax management strategies may also require a Fund to incur transaction costs, which will reduce its return.
Non-U.S. Shareholders
If you are a nonresident alien individual or a foreign corporation for federal income tax purposes, please see the Funds’ SAI for information on how you will be taxed as a result of holding shares in the Funds.
 
78

GENERAL INFORMATION
 
 
Under unusual circumstances, a Fund may suspend redemptions or postpone payment for up to seven days or longer, as permitted by federal securities law. The Funds reserve the right to close an account that has remained below $1,000 for 90 days.
During drastic economic or market developments, you might have difficulty in reaching ABIS by telephone, in which event you should issue written instructions to ABIS. ABIS is not responsible for the authenticity of telephone requests to purchase, sell, or exchange shares. ABIS will employ reasonable procedures to verify that telephone requests are genuine, and could be liable for losses resulting from unauthorized transactions if it failed to do so. Dealers and agents may charge a commission for handling telephone requests. The telephone service may be suspended or terminated at any time without notice.
Shareholder Services. ABIS offers a variety of shareholder services. For more information about these services or your account, call ABIS’s toll-free number, (800) 221-5672. Some services are described in the Mutual Fund Application.
Householding. Many shareholders of the AB Mutual Funds have family members living in the same home who also own shares of the same Funds. In order to reduce the amount of duplicative mail that is sent to homes with more than one Fund account and to reduce expenses of the Funds, all AB Mutual Funds will, until notified otherwise, send only one copy of each prospectus, shareholder report and proxy statement to each household address. This process, known as “householding”, does not apply to account statements, confirmations, or personal tax information. If you do not wish to participate in householding, or wish to discontinue householding at any time, call ABIS at (800) 221-5672. We will resume separate mailings for your account within 30 days of your request.
 
79

GLOSSARY OF INVESTMENT TERMS
 
 
AMT is the federal alternative minimum tax.
AMT-Subject bonds are municipal securities paying interest that is an item of “tax preference” and thus subject to the AMT when received by a person in a tax year during which the person is subject to the AMT. These securities are primarily private activity bonds, including revenue bonds.
Bonds are interest-bearing or discounted government or corporate securities that obligate the issuer to pay the bond holder a specified sum of money, usually at specified intervals, and to repay the principal amount of the loan at maturity.
Fixed-income securities are investments, such as bonds, that pay a fixed rate of return.
Municipal securities are debt obligations issued by states, territories and possessions of the United States and the District of Columbia, and their political subdivisions, duly constituted authorities and corporations. Municipal securities include municipal bonds, which are intended to meet longer-term capital needs and municipal notes, which are intended to fulfill short-term capital needs.
Nationally Recognized Statistical Rating Organizations, or NRSROs, are credit rating agencies registered with the SEC. NRSROs assess the creditworthiness of an obligor as an entity or with respect to specific securities or money market instruments. A list of credit rating agencies currently registered as NRSROs can be found on the SEC’s website (http://www.sec.gov).
Non-U.S. company or non-U.S. issuer is an entity that (i) is organized under the laws of a foreign country and conducts business in a foreign country, (ii) derives 50% or more of its total revenue from business in foreign countries, or (iii) issues equity or debt securities that are traded principally on an exchange in a foreign country.
U.S. Government securities are securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, including obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. Government, its agencies or instrumentalities, or by certain government-sponsored entities (entities chartered by or sponsored by Act of Congress). These securities include securities backed by the full faith and credit of the United States, those supported by the right of the issuer to borrow from the U.S. Treasury, and those backed only by the credit of the issuing agency or entity itself. The first category includes U.S. Treasury securities (which are U.S. Treasury bills, notes, and bonds) and certificates issued by the Government National Mortgage Association. U.S. Government securities not backed by the full faith and credit of the United States or a right to borrow from the U.S. Treasury include certificates issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.
The Bloomberg U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.
The Bloomberg Global Aggregate Bond Index is a macro index of global government and corporate bond markets, and is composed of various indices calculated by Bloomberg, including the U.S. Aggregate Index, the Pan-European Aggregate Index, the Global Treasury Index, the Asian-Pacific Aggregate Index, the Eurodollar Index and the U.S. Investment-Grade 144A Index.
The Bloomberg Global High Yield 1-5 Year Index represents the performance of non-investment-grade fixed-income securities in the U.S., developed and emerging markets with more than one year and less than five years remaining until maturity, hedged to the U.S. Dollar.
The Bloomberg Global High Yield Index (USD Hedged) is an unmanaged index considered representative of non-investment grade fixed-income securities of companies in the U.S., developed markets and emerging markets.
The Bloomberg Municipal Bond Index is an unmanaged index comprising a broad range of investment-grade municipal bonds having remaining maturities of greater than one year.
The Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index is an issuer-constrained version of the U.S. Corporate High Yield Index, which measures the USD-denominated, high yield, fixed-rate corporate bond market, but limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro rata basis.
The Bloomberg U.S. Corporate Total Return Value Unhedged USD Index (also known as the “Bloomberg U.S. Corporate Bond Index”) measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers.
The Bloomberg 1-5 Year U.S. Government/Credit Index is a broad-based benchmark comprised of investment grade, U.S. dollar-denominated, fixed-rate Treasuries, government-related and corporate securities with more than one year and less than five years remaining until maturity.
The JPMorgan Emerging Markets Bond Index Global is a broad-based, unmanaged index that tracks total return for external currency denominated debt in emerging markets.
The JPMorgan Government Bond Index-Emerging Markets is a definitive local emerging markets debt benchmark that tracks local currency government bonds issued by emerging market countries.
The Markit iBoxx USD Liquid High Yield Index is designed to reflect the performance of U.S. dollar denominated high yield corporate debt. It aims to offer a broad coverage of
 
80

the U.S. dollar denominated high yield liquid bond universe and is limited to bond issues with more than $400 million outstanding. It consists of sub-investment grade U.S. dollar denominated bonds issued by corporate issuers from developed countries. The index is market-value weighted with an issuer cap of 3%.
 
81

FINANCIAL HIGHLIGHTS
 
 
The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, the period of the Fund’s operations). Certain information reflects financial results for a single share of a class of each Fund. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). Each Fund’s financial statements have been audited by Ernst & Young LLP, independent registered public accounting firm. The report of the independent registered public accounting firm, along with each Fund’s financial statements, are included in each Fund’s annual report, which is available upon request.
 
82

AB Total Return Bond Portfolio
 
    CLASS A  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 11.25   $ 11.53   $ 11.35   $ 10.65     $ 11.11
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .26     .25     .29     .33       .25
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (2.21 )     (.11 )     .22     .74       (.44 )
Contributions from Affiliates
    – 0 –     – 0 –     – 0 –     .00 (c)     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.95 )     .14     .51     1.07       (.19 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.26 )     (.28 )     (.33 )     (.37 )     (.27 )
Distributions from net realized gain on investment transactions
    (.02 )     (.14 )     – 0 –     – 0 –     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.28 )     (.42 )     (.33 )     (.37 )     (.27 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 9.02     $ 11.25     $ 11.53     $ 11.35     $ 10.65  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (17.57 )%     1.22 %     4.60 %     10.23 %     (1.75 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 148,009   $ 203,168   $ 224,484   $ 221,033     $ 216,950
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements
    .77 %     .77 %     .77 %     .77 %     .77 %
Expenses, before waivers/reimbursements
    1.06 %     .99 %     .99 %     1.04 %     1.01 %
Net investment income(b)
    2.51 %     2.23 %     2.58 %     2.98 %     2.29 %
Portfolio turnover rate*
    141 %     128 %     83 %     74 %     195 %
 
 
     CLASS C  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.23      $ 11.50      $ 11.32      $ 10.63      $ 11.08  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .17        .17        .21        .25        .17  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.19 )      (.11 )      .22        .73        (.43 )
Contributions from Affiliates
     – 0 –      – 0 –      – 0 –      .00 (c)      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (2.02      .06        .43      .98      (.26 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.19      (.19 )      (.25 )      (.29 )      (.19 )
Distributions from net realized gain on investment transactions
     (.02      (.14 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.21      (.33 )      (.25 )      (.29 )      (.19 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.00      $ 11.23      $ 11.50      $ 11.32      $ 10.63  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (18.22 )%      .55 %      3.83 %      9.33 %      (2.40 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 2,932    $ 5,682      $ 10,128    $ 10,564    $ 11,334
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements
     1.52      1.52 %      1.52 %      1.52 %      1.52 %
Expenses, before waivers/reimbursements
     1.81      1.74 %      1.75 %      1.79 %      1.76 %
Net investment income(b)
     1.69      1.51 %      1.84 %      2.24 %      1.54 %
Portfolio turnover rate*
     141      128 %      83 %      74 %      195 %
See footnotes on page 86.
 
83

 
    ADVISOR CLASS  
    Year Ended October 31,  
     2022     2021     2020     2019      2018  
Net asset value, beginning of period
  $ 11.26   $ 11.53   $ 11.35   $ 10.65      $ 11.11
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Income From Investment Operations           
Net investment income(a)(b)
    .28     .28     .32     .35        .28
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (2.20 )     (.10 )     .22     .75        (.44 )
Contributions from Affiliates
    – 0 –     – 0 –     – 0 –     .00 (c)      – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
    (1.92 )     .18     .54     1.10        (.16 )
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Less: Dividends and Distributions           
Dividends from net investment income
    (.29 )     (.31 )     (.36 )     (.40 )      (.30 )
Distributions from net realized gain on investment transactions
    (.02 )     (.14 )     – 0 –     – 0 –      – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Total dividends and distributions
    (.31 )     (.45 )     (.36 )     (.40 )      (.30 )
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Net asset value, end of period
  $ 9.03     $ 11.26     $ 11.53     $ 11.35      $ 10.65  
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Total Return           
Total investment return based on net asset value(d)
    (17.44 )%     1.56 %     4.86 %     10.50 %      (1.50 )%
Ratios/Supplemental Data           
Net assets, end of period (000’s omitted)
  $ 45,095   $ 102,827   $ 122,108   $ 104,850      $ 76,406
Ratio to average net assets of:
          
Expenses, net of waivers/reimbursements
    .52 %     .52 %     .52 %     .52 %      .52 %
Expenses, before waivers/reimbursements
    .80 %     .74 %     .74 %     .79 %      .76 %
Net investment income(b)
    2.66 %     2.47 %     2.82 %     3.21 %      2.55 %
Portfolio turnover rate*
    141 %     128 %     83 %     74 %      195 %
 
 
     CLASS R  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.25    $ 11.52    $ 11.34    $ 10.65      $ 11.10
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .23      .23      .26      .30        .23
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.20 )      (.11 )      .22      .74        (.44 )
Contributions from Affiliates
     – 0 –      – 0 –      – 0 –      .00 (c)      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.97      .12        .48      1.04      (.21 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.24      (.25 )      (.30 )      (.35 )      (.24 )
Distributions from net realized gain on investment transactions
     (.02      (.14 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.26      (.39 )      (.30 )      (.35 )      (.24 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.02      $ 11.25      $ 11.52      $ 11.34      $ 10.65
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (17.78 )%      1.04 %      4.33 %      9.86 %      (1.90 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 379    $ 746      $ 1,802    $ 3,298    $ 2,814
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements
     1.02      1.02 %      1.02 %      1.02 %      1.02 %
Expenses, before waivers/reimbursements
     1.43      1.37 %      1.37 %      1.42 %      1.35 %
Net investment income(b)
     2.21      1.99 %      2.34 %      2.73 %      2.07 %
Portfolio turnover rate*
     141      128 %      83 %      74 %      195
See footnotes on page 86.
 
84

 
     CLASS K  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.26    $ 11.54    $ 11.36    $ 10.66      $ 11.11
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .25      .25      .29      .33        .25
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.20 )      (.11 )      .22      .74        (.43 )
Contributions from Affiliates
     – 0 –      – 0 –      – 0 –      .00 (c)      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.95 )      .14      .51      1.07        (.18 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.26 )      (.28 )      (.33 )      (.37 )      (.27 )
Distributions from net realized gain on investment transactions
     (.02 )      (.14 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.28 )      (.42 )      (.33 )      (.37 )      (.27 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.03      $ 11.26      $ 11.54      $ 11.36      $ 10.66  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (17.56 )%      1.22 %      4.59 %      10.22 %      (1.66 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 2,287    $ 5,736    $ 6,580    $ 7,444      $ 7,863
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements
     .77 %      .77 %      .77 %      .77 %      .77 %
Expenses, before waivers/reimbursements
     1.12 %      1.06 %      1.07 %      1.10 %      1.08 %
Net investment income(b)
     2.41 %      2.24 %      2.59 %      2.98 %      2.32 %
Portfolio turnover rate*
     141 %      128 %      83 %      74 %      195 %
 
 
     CLASS I  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.27      $ 11.55      $ 11.36      $ 10.66      $ 11.12  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .28        .28        .32        .36        .28  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.20 )      (.11 )      .23        .74        (.44 )
Contributions from Affiliates
     – 0 –      – 0 –      – 0 –      .00 (c)      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.92      .17        .55      1.10      (.16 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.29      (.31 )      (.36 )      (.40 )      (.30 )
Distributions from net realized gain on investment transactions
     (.02      (.14 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.31      (.45 )      (.36 )      (.40 )      (.30 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.04      $ 11.27      $ 11.55      $ 11.36      $ 10.66  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (17.44 )%      1.46 %      4.93 %      10.50 %      (1.50 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 758    $ 1,819      $ 2,743    $ 4,107    $ 2,894
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements
     .52      .52 %      .52 %      .52 %      .52 %
Expenses, before waivers/reimbursements
     .75      .68 %      .70 %      .75 %      .72 %
Net investment income(b)
     2.67      2.48 %      2.85 %      3.22 %      2.57 %
Portfolio turnover rate*
     141      128 %      83 %      74 %      195 %
See footnotes on page 86.
 
85

 
     CLASS Z  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.27    $ 11.55    $ 11.37    $ 10.67      $ 11.13
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .28      .29      .32      .36        .27
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.20 )      (.12 )      .22      .74        (.43 )
Contributions from Affiliates
     – 0 –      – 0 –      – 0 –      .00 (c)      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.92 )      .17      .54      1.10        (.16 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.29 )      (.31 )      (.36 )      (.40 )      (.30 )
Distributions from net realized gain on investment transactions
     (.02 )      (.14 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.31 )      (.45 )      (.36 )      (.40 )      (.30 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.04      $ 11.27      $ 11.55      $ 11.37      $ 10.67  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (17.34 )%      1.46 %      4.84 %      10.48 %      (1.49 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 2,234    $ 3,193    $ 5,824    $ 8,059      $ 7,274
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements
     .52 %      .52 %      .52 %      .52 %      .52 %
Expenses, before waivers/reimbursements
     .70 %      .64 %      .64 %      .68 %      .64 %
Net investment income(b)
     2.70 %      2.51 %      2.82 %      3.22 %      2.48 %
Portfolio turnover rate*
     141 %      128 %      83 %      74 %      195 %
 
(a)
Based on average shares outstanding.
 
(b)
Net of expenses waived/reimbursed by the Adviser.
 
(c)
Amount is less than $.005.
 
(d)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.
 
 * 
The Fund accounts for dollar roll transactions as purchases and sales.
 
86

AB Global Bond Fund
 
    CLASS A  
    Year Ended September 30,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.52   $ 8.62   $ 8.67   $ 8.19   $ 8.43
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .11     .11     .14     .17     .18
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.20     (.02 )     .07     .52     (.22 )
Contributions from Affiliates
    .00 (c)      – 0 –     .00 (c)     .00 (c)     – 0 –
Capital Contributions
    – 0 –       – 0 –     – 0 –     – 0 –     .00 (c)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.09     .09     .21     .69     (.04 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.24     (.13 )     (.26 )     (.21 )     (.20 )
Distributions from net realized gain on investment and foreign currency transactions
    (.10     (.06 )     – 0 –     – 0 –     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.34     (.19 )     (.26 )     (.21 )     (.20 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 7.09     $ 8.52     $ 8.62     $ 8.67     $ 8.19
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.27 )%     .92 %     2.44 %^     8.58 %     (.50 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 409,768   $ 580,627   $ 656,731   $ 758,638   $ 810,782
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)
    .80     .80 %     .80 %     .81 %     .81 %
Expenses, before waivers/reimbursements(e)
    .80     .80 %     .80 %     .81 %     .82 %
Net investment income(b)
    1.40     1.24 %     1.62 %     2.02 %     2.16 %
Portfolio turnover rate*
    159     130 %     135 %     126 %     369
 
 
    CLASS C  
    Year Ended September 30,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.55     $ 8.65     $ 8.70     $ 8.21     $ 8.46  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .05       .04       .08       .11       .12  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.20 )     (.02 )     .06       .53       (.23 )
Contributions from Affiliates
    .00 (c)      – 0 –     .00 (c)     .00 (c)     – 0 –
Capital Contributions
    – 0 –       – 0 –     – 0 –     – 0 –     .00 (c)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.15     .02     .14     .64     (.11 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.18     (.06 )     (.19 )     (.15 )     (.14 )
Distributions from net realized gain on investment and foreign currency transactions
    (.10     (.06 )     – 0 –     – 0 –     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.28     (.12 )     (.19 )     (.15 )     (.14 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 7.12     $ 8.55     $ 8.65     $ 8.70     $ 8.21  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.88 )%     .27 %     1.66 %     7.87 %     (1.36 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 22,599   $ 39,929   $ 65,949   $ 104,089   $ 146,309
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)
    1.55     1.55 %     1.55 %     1.56 %     1.56 %
Expenses, before waivers/reimbursements(e)
    1.56     1.55 %     1.55 %     1.56 %     1.56 %
Net investment income(b)
    .62     .49 %     .93 %     1.26 %     1.38 %
Portfolio turnover rate*
    159     130 %     135 %     126 %     369 %
See footnotes on page 90.
 
87

 
    ADVISOR CLASS  
    Year Ended September 30,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.51   $ 8.62   $ 8.66   $ 8.18   $ 8.42
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .13     .13     .16     .19     .20
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.19     (.03 )     .08     .52     (.22 )
Contributions from Affiliates
    .00 (c)      – 0 –     .00 (c)     .00 (c)     – 0 –
Capital Contributions
    – 0 –       – 0 –     – 0 –     – 0 –     .00 (c)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.06     .10     .24     .71     (.02 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.26     (.15 )     (.28 )     (.23 )     (.22 )
Distributions from net realized gain on investment and foreign currency transactions
    (.10     (.06 )     – 0 –     – 0 –     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.36     (.21 )     (.28 )     (.23 )     (.22 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 7.09     $ 8.51     $ 8.62     $ 8.66     $ 8.18  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (12.95 )%     1.17 %     2.82 %     8.86 %     (.25 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 3,441,514   $ 4,707,655   $ 4,645,021   $ 4,845,448   $ 4,570,491
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)
    .55     .55 %     .55 %     .56 %     .56 %
Expenses, before waivers/reimbursements(e)
    .56     .55 %     .55 %     .56 %     .57 %
Net investment income(b)
    1.66     1.49 %     1.91 %     2.26 %     2.44 %
Portfolio turnover rate*
    159     130 %     135 %     126 %     369 %
 
 
     CLASS R  
     Year Ended September 30,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 8.52      $ 8.62      $ 8.66      $ 8.18      $ 8.42  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .08        .07        .10        .13        .15  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.21 )      (.02 )      .08        .53        (.23 )
Contributions from Affiliates
     .00 (c)      – 0 –      .00 (c)      .00 (c)      – 0 –
Capital Contributions
     – 0 –      – 0 –      – 0 –      – 0 –      .00 (c) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.13 )      .05      .18      .66      (.08
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.20 )      (.09 )      (.22 )      (.18 )      (.16
Distributions from net realized gain on investment and foreign currency transactions
     (.10 )      (.06 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.30 )      (.15 )      (.22 )      (.18 )      (.16
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 7.09      $ 8.52      $ 8.62      $ 8.66      $ 8.18  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (13.65 )%      .59 %      2.08 %      8.13 %      (.91 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 37,213    $ 49,599    $ 56,424    $ 69,424    $ 75,138
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(e)
     1.25 %      1.24 %      1.27 %      1.24 %      1.23
Expenses, before waivers/reimbursements(e)
     1.25 %      1.24 %      1.27 %      1.24 %      1.23
Net investment income(b)
     .96 %      .80 %      1.20 %      1.59 %      1.75
Portfolio turnover rate*
     159 %      130 %      135 %      126 %      369
See footnotes on page 90.
 
88

 
     CLASS K  
     Year Ended September 30,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 8.52    $ 8.62    $ 8.66    $ 8.18    $ 8.42
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .10      .10      .13      .16      .17
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.20      (.02 )      .07      .52      (.22 )
Contributions from Affiliates
     .00 (c)       – 0 –      .00 (c)      .00 (c)      – 0 –
Capital Contributions
     – 0 –        – 0 –      – 0 –      – 0 –      .00 (c)
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.10      .08      .20      .68      (.05 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.23      (.12 )      (.24 )      (.20 )      (.19 )
Distributions from net realized gain on investment and foreign currency transactions
     (.10      (.06 )      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.33      (.18 )      (.24 )      (.20 )      (.19 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 7.09      $ 8.52      $ 8.62      $ 8.66      $ 8.18
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (13.38 )%      .90 %      2.39 %      8.46 %      (.60 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 8,420    $ 13,249    $ 16,627    $ 19,576    $ 16,642
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(e)
     .94      .93 %      .96 %      .93 %      .92 %
Expenses, before waivers/reimbursements(e)
     .94      .93 %      .96 %      .93 %      .92 %
Net investment income(b)
     1.24      1.11 %      1.51 %      1.89 %      2.09 %
Portfolio turnover rate*
     159      130 %      135 %      126 %      369
 
 
    CLASS I  
    Year Ended September 30,  
     2022     2021     2020     2019      2018  
Net asset value, beginning of period
  $ 8.52     $ 8.62     $ 8.66     $ 8.18      $ 8.42  
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Income From Investment Operations           
Net investment income(a)(b)
    .13       .13       .16       .19        .20  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.20 )     (.02 )     .07       .52        (.22 )
Contributions from Affiliates
    .00 (c)     – 0 –     .00 (c)     .00 (c)      – 0 –
Capital Contributions
    – 0 –     – 0 –     – 0 –     – 0 –      .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
    (1.07 )     .11     .23     .71      (.02
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Less: Dividends and Distributions           
Dividends from net investment income
    (.26 )     (.15 )     (.27 )     (.23 )      (.22
Distributions from net realized gain on investment and foreign currency transactions
    (.10 )     (.06 )     – 0 –     – 0 –      – 0 –  
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Total dividends and distributions
    (.36 )     (.21 )     (.27 )     (.23 )      (.22
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Net asset value, end of period
  $ 7.09     $ 8.52     $ 8.62     $ 8.66      $ 8.18  
 
 
 
   
 
 
   
 
 
   
 
 
    
 
 
 
Total Return           
Total investment return based on net asset value(d)
    (13.06 )%     1.29 %     2.79 %     8.87 %      (.23 )%
Ratios/Supplemental Data           
Net assets, end of period (000’s omitted)
  $ 724,876   $ 919,250   $ 854,892   $ 852,566    $ 773,149
Ratio to average net assets of:
          
Expenses, net of waivers/reimbursements(e)
    .56 %     .55 %     .58 %     .55 %      .54
Expenses, before waivers/reimbursements(e)
    .57 %     .55 %     .58 %     .56 %      .55
Net investment income(b)
    1.65 %     1.49 %     1.88 %     2.27 %      2.46
Portfolio turnover rate*
    159 %     130 %     135 %     126 %      369
See footnotes on page 90.
 
89

 
    CLASS Z  
    Year Ended September 30,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.52   $ 8.62   $ 8.66   $ 8.18   $ 8.42
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations
 
       
Net investment income(a)(b)
    .14     .13     .16     .19     .21
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.21     (.02 )     .08     .53     (.22 )
Contributions from Affiliates
    .00 (c)      – 0 –     .00 (c)     .00 (c)     – 0 –
Capital Contributions
    – 0 –       – 0 –     – 0 –     – 0 –     .00 (c)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.07     .11     .24     .72     (.01 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions
 
       
Dividends from net investment income
    (.26     (.15 )     (.28 )     (.24 )     (.23 )
Distributions from net realized gain on investment and foreign currency transactions
    (.10     (.06 )     – 0 –     – 0 –     – 0 –
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.36     (.21 )     (.28 )     (.24 )     (.23 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 7.09     $ 8.52     $ 8.62     $ 8.66     $ 8.18  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return
 
       
Total investment return based on net asset value(d)
    (13.01 )%     1.34 %     2.84 %     8.93 %     (.18 )%
Ratios/Supplemental Data
 
       
Net assets, end of period (000’s omitted)
  $ 755,288   $ 717,784   $ 579,878   $ 580,799   $ 489,921
Ratio to average net assets of:
 
       
Expenses, net of waivers/reimbursements(e)
    .51     .50 %     .53 %     .50 %     .49 %
Expenses, before waivers/reimbursements(e)
    .51     .50 %     .53 %     .50 %     .50 %
Net investment income(b)
    1.73     1.53 %     1.93 %     2.33 %     2.54 %
Portfolio turnover rate*
    159     130 %     135 %     126 %     369 %
 
(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:
 
     Year Ended September 30,  
      2022      2021      2020      2019      2018  
 
  
 
 
             
Class A
              
Net of waivers/reimbursements
     .80%      .80%      .80%      .81%      .81%
Before waivers/reimbursements
     .80%      .80%      .80%      .81%      .82%
Class C
              
Net of waivers/reimbursements
     1.55%      1.55%      1.55%      1.56%      1.56%
Before waivers/reimbursements
     1.56%      1.55%      1.55%      1.56%      1.56%
Advisor Class
              
Net of waivers/reimbursements
     .55%      .55%      .55%      .56%      .56%
Before waivers/reimbursements
     .56%      .55%      .55%      .56%      .57%
Class R
              
Net of waivers/reimbursements
     1.25%      1.24%      1.27%      1.24%      1.23%
Before waivers/reimbursements
     1.25%      1.24%      1.27%      1.24%      1.23%
Class K
              
Net of waivers/reimbursements
     .94%      .93%      .96%      .93%      .92%
Before waivers/reimbursements
     .94%      .93%      .96%      .93%      .92%
Class I
              
Net of waivers/reimbursements
     .56%      .55%      .58%      .55%      .54%
Before waivers/reimbursements
     .57%      .55%      .58%      .56%      .55%
Class Z
              
Net of waivers/reimbursements
     .51%      .50%      .53%      .50%      .49%
Before waivers/reimbursements
     .51%      .50%      .53%      .50%      .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.
 
 * 
The Fund accounts for dollar roll transactions as purchases and sales.
 
90

AB Sustainable Thematic Credit Portfolio
 
     CLASS A  
     
Year Ended
October 31,
2022
     May 10,
2021(a) to
October 31,
2021
 
Net asset value, beginning of period
   $ 10.12    $ 10.00
  
 
 
    
 
 
 
Income From Investment Operations      
Net investment income(b)(c)
     .18      .07
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.32      .13
  
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (2.14      .20
  
 
 
    
 
 
 
Less: Dividends and Distributions      
Dividends from net investment income
     (.23      (.08 )
Distributions from net realized gain on investment and foreign currency transactions
     (.01      – 0 –
  
 
 
    
 
 
 
Total dividends and distributions
     (.24      (.08 )
  
 
 
    
 
 
 
Net asset value, end of period
   $ 7.74      $ 10.12  
  
 
 
    
 
 
 
Total Return      
Total investment return based on net asset value(d)
     (21.48 )%      2.00 %
Ratios/Supplemental Data      
Net assets, end of period (000’s omitted)
   $ 58    $ 74
Ratio to average net assets of:
     
Expenses, net of waivers/reimbursements
     .85 %      .85 %(e)
Expenses, before waivers/reimbursements
     .97 %      1.14 %(e)
Net investment income(c)
     2.04 %      1.47 %(e)
Portfolio turnover rate
     25 %      31
 
 
     ADVISOR CLASS  
      Year Ended
October 31,
2022
     May 10,
2021(a) to
October 31,
2021
 
Net asset value, beginning of period
   $ 10.12    $ 10.00
  
 
 
    
 
 
 
Income From Investment Operations      
Net investment income(b)(c)
     .21      .08
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (2.33      .13
  
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (2.12      .21
  
 
 
    
 
 
 
Less: Dividends and Distributions      
Dividends from net investment income
     (.25      (.09
Distributions from net realized gain on investment and foreign currency transactions
     (.01      – 0 –  
  
 
 
    
 
 
 
Total dividends and distributions
     (.26      (.09
  
 
 
    
 
 
 
Net asset value, end of period
   $ 7.74      $ 10.12  
  
 
 
    
 
 
 
Total Return      
Total investment return based on net asset value(d)
     (21.29 )%      2.12
Ratios/Supplemental Data      
Net assets, end of period (000’s omitted)
   $ 177,086    $ 169,185
Ratio to average net assets of:
     
Expenses, net of waivers/reimbursements
     .60      .60 %(e)
Expenses, before waivers/reimbursements
     .72      .93 %(e)
Net investment income(c)
     2.31      1.69 %(e)
Portfolio turnover rate
     25      31
 
(a)
Commencement of operations.
 
(b)
Based on average shares outstanding.
 
(c)
Net of expenses waived/reimbursed by the Adviser.
 
(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)
Annualized.
 
91

AB High Income Fund
 
    CLASS A  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 7.98   $ 7.53   $ 8.19   $ 8.14     $ 8.91
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .41     .40     .41     .47       .50
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.48     .53     (.59     .11       (.71
Contributions from Affiliates
    .00 (c)      .00 (c)      .00 (c)      .00 (c)     .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.07     .93     (.18     .58       (.21
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.47     (.44     (.48     (.41 )     (.49
Return of capital
    – 0 –       (.04     – 0 –       (.12 )     (.07
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.47     (.48     (.48     (.53 )     (.56
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.44     $ 7.98     $ 7.53     $ 8.19     $ 8.14  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.83 )%     12.52 %^     (2.02 )%^     7.33 %     (2.51 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 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)†
    .90     .84     .86     .87 %     .84
Expenses, before waivers/reimbursements(e)†
    .90     .84     .86     .88 %     .85
Net investment income(b)
    5.69     4.95     5.43     5.82 %     5.86
Portfolio turnover rate
    28     48     54     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying portfolios
    .00     .00     .00     .01 %     .00
 
 
    CLASS C  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.07     $ 7.62     $ 8.29     $ 8.24     $ 9.01  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .35       .33       .35       .41       .44  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.50 )     .54       (.60 )     .10       (.72 )
Contributions from Affiliates
    .00 (c)      .00 (c)      .00 (c)      .00 (c)     .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.15     .87     (.25     .51       (.28
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.41     (.38     (.42     (.35 )     (.43
Return of capital
    – 0 –       (.04     – 0 –       (.11 )     (.06
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.41     (.42     (.42     (.46 )     (.49
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.51     $ 8.07     $ 7.62     $ 8.29     $ 8.24  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (14.69 )%     11.65 %^     (2.86 )%^     6.43 %     (3.21 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 199,870   $ 324,644   $ 456,375   $ 649,108     $ 842,095
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)†
    1.64     1.58     1.61     1.62 %     1.59
Expenses, before waivers/reimbursements(e)†
    1.64     1.59     1.61     1.62 %     1.59
Net investment income(b)
    4.81     4.14     4.56     5.00 %     5.04
Portfolio turnover rate
    28     48     54     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying portfolios
    .00     .00     .00     .01 %     .00
See footnotes on page 95.
 
92

 
    ADVISOR CLASS  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 7.99   $ 7.54   $ 8.20   $ 8.15     $ 8.92
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .43     .42     .43     .49       .52
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.49     .53     (.59     .11       (.71
Contributions from Affiliates
    .00 (c)      .00 (c)      .00 (c)      .00 (c)     .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.06     .95     (.16     .60       (.19
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.48     (.46     (.50     (.42 )     (.50
Return of capital
    – 0 –       (.04     – 0 –       (.13 )     (.08
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.48     (.50     (.50     (.55 )     (.58
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.45     $ 7.99     $ 7.54     $ 8.20     $ 8.15  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.70 )%     12.92 %^     (1.77 )%^     7.58 %     (2.26 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 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)†
    .64     .59     .61     .62 %     .59
Expenses, before waivers/reimbursements(e)†
    .65     .59     .61     .63 %     .60
Net investment income(b)
    5.90     5.20     5.57     6.05 %     6.10
Portfolio turnover rate
    28     48     54     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00     .00     .00     .01 %     .00
 
 
     CLASS R  
     Year Ended October 31,  
      2022      2021      2020     2019      2018  
Net asset value, beginning of period
   $ 7.98      $ 7.53      $ 8.19     $ 8.14      $ 8.90  
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Income From Investment Operations              
Net investment income(a)(b)
     .38        .36        .38       .44        .47  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.48 )      .54        (.59 )     .10        (.71 )
Contributions from Affiliates
     .00 (c)      .00 (c)      .00 (c)     .00 (c)      .00 (c)
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.10 )      .90      (.21 )     .54      (.24
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Less: Dividends and Distributions              
Dividends from net investment income
     (.44 )      (.41      (.45 )     (.38      (.45
Return of capital
     – 0 –      (.04      – 0 –     (.11      (.07
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total dividends and distributions
     (.44 )      (.45      (.45 )     (.49      (.52
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Net asset value, end of period
   $ 6.44      $ 7.98      $ 7.53     $ 8.19      $ 8.14  
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total Return              
Total investment return based on net asset value(d)
     (14.30 )%      12.17 %^      (2.49 )%^     6.89      (2.80 )%^
Ratios/Supplemental Data              
Net assets, end of period (000’s omitted)
   $ 20,238    $ 32,847    $ 38,435   $ 57,226    $ 69,442
Ratio to average net assets of:
             
Expenses, net of waivers/reimbursements(e)†
     1.31 %      1.27      1.32 %     1.28      1.26
Expenses, before waivers/reimbursements(e)†
     1.31 %      1.27      1.33 %     1.28      1.26
Net investment income(b)
     5.24 %      4.53      4.93 %     5.43      5.47
Portfolio turnover rate
     28 %      48      54 %     49      35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
     .00 %      .00      .00 %     .01      .00
See footnotes on page 95.
 
93

 
    CLASS K  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 7.99   $ 7.53   $ 8.19   $ 8.14     $ 8.91
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .39     .39     .40     .47       .50
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.49     .54     (.59     .10       (.72
Contributions from Affiliates
    .00 (c)      .00 (c)      .00 (c)      .00 (c)     .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.10     .93     (.19     .57       (.22
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.45     (.43     (.47     (.40 )     (.48
Return of capital
    – 0 –       (.04     – 0 –       (.12 )     (.07
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.45     (.47     (.47     (.52 )     (.55
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.44     $ 7.99     $ 7.53     $ 8.19     $ 8.14  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (14.07 )%     12.53 %^     (2.15 )%^     7.25 %     (2.58 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 5,792   $ 38,413   $ 68,253   $ 110,135     $ 122,030
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)†
    .97     .94     .98     .94 %     .91
Expenses, before waivers/reimbursements(e)†
    .97     .94     .98     .94 %     .91
Net investment income(b)
    5.15     4.87     5.27     5.76 %     5.83
Portfolio turnover rate
    28     48     54     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00     .00     .00     .01 %     .00
 
 
    CLASS I  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.00     $ 7.54     $ 8.20     $ 8.15     $ 8.92  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .43       .42       .42       .50       .53  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.50 )     .54       (.58 )     .10       (.72 )
Contributions from Affiliates
    .00 (c)     .00 (c)     .00 (c)     .00 (c)     .00 (c)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.07 )     .96     (.16 )     .60       (.19
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.48 )     (.46     (.50 )     (.42 )     (.50
Return of capital
    – 0 –     (.04     – 0 –     (.13 )     (.08
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.48 )     (.50     (.50 )     (.55 )     (.58
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.45     $ 8.00     $ 7.54     $ 8.20     $ 8.15  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.72 )%     12.91 %^     (1.81 )%^     7.61 %     (2.23 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 67,757   $ 90,893   $ 131,550   $ 167,518     $ 192,941
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)†
    .66 %     .59     .64 %     .60 %     .56
Expenses, before waivers/reimbursements(e)†
    .66 %     .59     .64 %     .60 %     .56
Net investment income(b)
    5.91 %     5.21     5.57 %     6.09 %     6.15
Portfolio turnover rate
    28 %     48     54 %     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00 %     .00     .00 %     .01 %     .00
See footnotes on page 95.
 
94

 
    CLASS Z  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 8.00   $ 7.54   $ 8.20   $ 8.15     $ 8.92
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .43     .42     .43     .50       .54
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.49     .55     (.59     .10       (.73
Contributions from Affiliates
    .00 (c)      .00 (c)      .00 (c)      .00 (c)     .00 (c) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.06     .97     (.16     .60       (.19
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.49     (.47     (.50     (.42 )     (.50
Return of capital
    – 0 –       (.04     – 0 –       (.13 )     (.08
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.49     (.51     (.50     (.55 )     (.58
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.45     $ 8.00     $ 7.54     $ 8.20     $ 8.15  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(d)
    (13.64 )%     12.99 %^     (1.76 )%^     7.68 %     (2.18 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 155,009   $ 266,052   $ 307,946   $ 330,538     $ 359,903
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(e)†
    .57     .53     .59     .54 %     .52
Expenses, before waivers/reimbursements(e)†
    .57     .53     .59     .54 %     .52
Net investment income(b)
    5.96     5.26     5.66     6.16 %     6.27
Portfolio turnover rate
    28     48     54     49 %     35
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00     .00     .00     .01 %     .00
 
(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:
 
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Class A
              
Net of waivers/reimbursements
     .87 %      .84 %      .86 %      .85 %      .82 %
Before waivers/reimbursements
     .87 %      .84 %      .86 %      .86 %      .83 %
Class C
              
Net of waivers/reimbursements
     1.61 %      1.58 %      1.60 %      1.60 %      1.57 %
Before waivers/reimbursements
     1.61 %      1.59 %      1.60 %      1.60 %      1.57 %
Advisor Class
              
Net of waivers/reimbursements
     .62 %      .59 %      .60 %      .60 %      .57 %
Before waivers/reimbursements
     .63 %      .59 %      .60 %      .61 %      .58 %
Class R
              
Net of waivers/reimbursements
     1.28 %      1.27 %      1.32 %      1.26 %      1.24 %
Before waivers/reimbursements
     1.28 %      1.27 %      1.33 %      1.26 %      1.24 %
Class K
              
Net of waivers/reimbursements
     .97 %      .94 %      .97 %      .92 %      .89 %
Before waivers/reimbursements
     .97 %      .94 %      .97 %      .92 %      .89 %
Class I
              
Net of waivers/reimbursements
     .63 %      .59 %      .64 %      .58 %      .54 %
Before waivers/reimbursements
     .63 %      .59 %      .64 %      .58 %      .54 %
Class Z
              
Net of waivers/reimbursements
     .54 %      .53 %      .58 %      .52 %      .50 %
Before waivers/reimbursements
     .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.
 
95

AB Limited Duration High Income Portfolio
 
     CLASS A  
     Year Ended September 30,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 10.36    $ 9.95    $ 10.36    $ 10.24    $ 10.40
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .36      .36      .37      .39      .38
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.57 )      .45      (.33 )      .16      (.16
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.21 )      .81      .04      .55      .22
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.40 )      (.40 )      (.45 )      (.43 )      (.36
Return of capital
     – 0 –      – 0 –      – 0 –      – 0 –      (.02
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.40 )      (.40 )      (.45 )      (.43 )      (.38
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 8.75      $ 10.36      $ 9.95      $ 10.36      $ 10.24  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(c)
     (11.98 )%      8.23 %      .54 %      5.54 %      2.23
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 27,201    $ 31,087    $ 24,393    $ 19,487    $ 17,897
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(d)‡
     .95 %      .95 %      .95 %      .95 %      .95
Expenses, before waivers/reimbursements(d)‡
     1.00 %      1.02 %      1.04 %      1.05 %      1.05
Net investment income(b)
     3.71 %      3.52 %      3.71 %      3.85 %      3.69
Portfolio turnover rate
     62 %      57 %      60 %      37 %      39
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying portfolios
     .00 %      .00 %      .00 %      .01 %      .01
 
 
     CLASS C  
     Year Ended September 30,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 10.35      $ 9.94      $ 10.35      $ 10.23      $ 10.40  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .29        .29        .29        .32        .30  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.58 )      .44        (.32 )      .16        (.16 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.29 )      .73      (.03 )      .48      .14
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.32 )      (.32 )      (.38 )      (.36 )      (.30
Return of capital
     – 0 –      – 0 –      – 0 –      – 0 –      (.01
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.32 )      (.32 )      (.38 )      (.36 )      (.31
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 8.74      $ 10.35      $ 9.94      $ 10.35      $ 10.23  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(c)
     (12.66 )%      7.43 %      (.21 )%      4.76 %      1.37
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 7,335    $ 10,038    $ 11,105    $ 17,617    $ 21,412
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(d)‡
     1.70 %      1.70 %      1.70 %      1.70 %      1.70
Expenses, before waivers/reimbursements(d)‡
     1.75 %      1.77 %      1.79 %      1.80 %      1.80
Net investment income(b)
     2.95 %      2.78 %      2.96 %      3.11 %      2.95
Portfolio turnover rate
     62 %      57 %      60 %      37 %      39
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying portfolios
     .00 %      .00 %      .00 %      .01 %      .01
See footnotes on page 97.
 
96

 
    ADVISOR CLASS  
    Year Ended September 30,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 10.34   $ 9.93   $ 10.35   $ 10.22   $ 10.39
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .38     .39     .39     .42     .41
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.57 )     .45     (.33 )     .17     (.17
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.19 )     .84     .06     .59     .24
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.42 )     (.43 )     (.48 )     (.46 )     (.39
Return of capital
    – 0 –     – 0 –     – 0 –     – 0 –     (.02
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.42 )     (.43 )     (.48 )     (.46 )     (.41
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 8.73     $ 10.34     $ 9.93     $ 10.35     $ 10.22  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(c)
    (11.78 )%     8.52 %     .70 %     5.91 %     2.38
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 283,354   $ 334,801   $ 256,070   $ 238,350   $ 225,703
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(d)‡
    .70 %     .70 %     .70 %     .70 %     .69
Expenses, before waivers/reimbursements(d)‡
    .75 %     .77 %     .79 %     .80 %     .80
Net investment income(b)
    3.97 %     3.77 %     3.97 %     4.10 %     3.94
Portfolio turnover rate
    62 %     57 %     60 %     37 %     39
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying portfolios
    .00 %     .00 %     .00 %     .01 %     .01
 
(a)
Based on average shares outstanding.
 
(b)
Net of expenses waived/reimbursed by the Adviser.
 
(c)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.
 
(d)
In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended September 30, 2019 and September 30, 2018, such waiver amounted to .01% and .01%, respectively.
 
97

AB Income Fund
 
    CLASS A  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 7.89   $ 7.96     $ 7.98   $ 7.49     $ 8.09
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .23     .24       .26     .31       .29
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.69 )     (.04 )     .02 (c)     .53       (.50
Contributions from Affiliates
    – 0 –     .00 (d)     – 0 –     .00 (d)     .00 (d) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.46 )     .20       .28     .84       (.21
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.24 )     (.27 )     (.30 )     (.30 )     (.36
Return of capital
    – 0 –     – 0 –     – 0 –     (.05 )     (.03
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.24 )     (.27 )     (.30 )     (.35 )     (.39
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.19     $ 7.89     $ 7.96     $ 7.98     $ 7.49  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(e)*
    (18.83 )%     2.48 %     3.55 %     11.50 %     (2.71 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 159,887   $ 265,990     $ 289,619   $ 240,567     $ 232,931
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(f)
    1.04 %     .79 %     .78 %     .77 %     1.08
Expenses, before waivers/reimbursements(f)
    1.08 %     .80 %     .80 %     .83 %     1.16
Net investment income(b)
    3.15 %     3.04 %     3.24 %     4.02 %     3.73
Portfolio turnover rate**
    167 %     166 %     246 %     270 %     105
 
 
    CLASS C  
    Year Ended October 31,  
     2022     2021     2020     2019     2018  
Net asset value, beginning of period
  $ 7.90   $ 7.97     $ 7.99     $ 7.50     $ 8.10  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(a)(b)
    .17     .18       .20       .25       .23  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.68 )     (.04 )     .02 (c)     .53       (.50 )
Contributions from Affiliates
    – 0 –     .00 (d)     – 0 –     .00 (d)     .00 (d)
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.51 )     .14       .22       .78       (.27 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
    (.19 )     (.21 )     (.24 )     (.25 )     (.30 )
Return of capital
    – 0 –     – 0 –     – 0 –     (.04 )     (.03 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.19 )     (.21 )     (.24 )     (.29 )     (.33 )
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 6.20     $ 7.90     $ 7.97     $ 7.99     $ 7.50
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(e)*
    (19.41 )%     1.71 %     2.77 %     10.65 %     (3.43 )%
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
  $ 113,982   $ 194,363   $ 217,968   $ 164,413     $ 82,283
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(f)
    1.79 %     1.54 %     1.53 %     1.52 %     1.83 %
Expenses, before waivers/reimbursements(f)
    1.82 %     1.55 %     1.55 %     1.57 %     1.92 %
Net investment income(b)
    2.39 %     2.29 %     2.49 %     3.21 %     2.98 %
Portfolio turnover rate**
    167 %     166 %     246 %     270 %     105
See footnotes on pages 99 - 100.
 
98

 
     ADVISOR CLASS  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 7.90    $ 7.97      $ 7.99    $ 7.50      $ 8.10
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .24      .26        .27      .33        .31
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.68 )      (.04 )      .03 (c)      .53        (.50
Contributions from Affiliates
     – 0 –        .00 (d)      – 0 –        .00 (d)      .00 (d) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.44 )      .22        .30      .86        (.19
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions               
Dividends from net investment income
     (.26 )      (.29 )      (.32 )      (.31 )      (.38
Return of capital
     – 0 –        – 0 –        – 0 –        (.06 )      (.03
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.26 )      (.29 )      (.32 )      (.37 )      (.41
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 6.20      $ 7.90      $ 7.97      $ 7.99      $ 7.50  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(e)*
     (18.60 )%      2.73 %      3.80 %      11.76 %      (2.46 )%
Ratios/Supplemental Data               
Net assets, end of period (000,000’s omitted)
   $ 2,334    $ 4,152      $ 4,097    $ 3,562      $ 2,222
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(f)
     .79 %      .54 %      .53 %      .52 %      .83
Expenses, before waivers/reimbursements(f)
     .82 %      .55 %      .55 %      .58 %      .91
Net investment income(b)
     3.38 %      3.28 %      3.48 %      4.24 %      3.98
Portfolio turnover rate**
     167 %      166 %      246 %      270 %      105
 
 
     CLASS Z  
     Year Ended October 31,     
November 20,
2019(g) to
October 31,
 
      2022      2021      2020  
Net asset value, beginning of period
   $ 7.90      $ 7.97      $ 7.97  
  
 
 
    
 
 
    
 
 
 
Income From Investment Operations         
Net investment income(a)(b)
     .25        .27        .27  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.69 )      (.05 )      .03 (c)
  
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.44 )      .22        .30  
  
 
 
    
 
 
    
 
 
 
Less: Dividends         
Dividends from net investment income
     (.26      (.29 )      (.30
  
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 6.20      $ 7.90      $ 7.97  
  
 
 
    
 
 
    
 
 
 
Total Return         
Total investment return based on net asset value(e)*
     (18.57 )%      2.78 %      3.89
Ratios/Supplemental Data         
Net assets, end of period (000’s omitted)
   $ 21,026    $ 30,118      $ 18,492
Ratio to average net assets of:
        
Expenses, net of waivers/reimbursements(f)
     .78      .49 %      .48 %^
Expenses, before waivers/reimbursements(f)
     .78      .49 %      .48 %^
Net investment income(b)
     3.44      3.32 %      3.49 %^
Portfolio turnover rate**
     167      166 %      246
 
(a)
Based on average shares outstanding.
 
(b)
Net of expenses waived/reimbursed by the Adviser.
 
(c)
Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.
 
(d)
Amount is less than $.005.
 
(e)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.
 
99

(f)
The expense ratios, excluding interest expense are:
 
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Class A
              
Net of waivers/reimbursements
     .77 %      .77 %      .77 %      .77 %      .77 %
Before waivers/reimbursements
     .80 %      .78 %      .79 %      .82 %      .85 %
Class C
              
Net of waivers/reimbursements
     1.52 %      1.52 %      1.52 %      1.52 %      1.52 %
Before waivers/reimbursements
     1.55 %      1.53 %      1.54 %      1.57 %      1.60 %
Advisor Class
              
Net of waivers/reimbursements
     .52 %      .52 %      .52 %      .52 %      .52 %
Before waivers/reimbursements
     .55 %      .53 %      .54 %      .57 %      .60 %
Class Z
              
Net of waivers/reimbursements
     .49 %      .47 %      .46 %      N/A        N/A  
Before waivers/reimbursements
     .49 %      .47 %      .46 %      N/A        N/A  
 
(g)
Commencement of distributions.
 
 * 
Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .04% for the year ended October 31, 2021.
 
** 
The Fund accounts for dollar roll transactions as purchases and sales.
 
 ^
Annualized.
 
100

AB Short Duration Income Portfolio
 
     CLASS A  
     Year Ended October 31,     
December 12,
2018(a) to
October 31,
2019
 
      2022      2021      2020  
Net asset value, beginning of period
   $ 9.90    $ 9.95    $ 10.35    $ 10.00
  
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations            
Net investment income(b)(c)
     .18      .22      .23      .28
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.05      .02 (d)      (.28 )(d)      .42
Contributions from Affiliates
     .00 (e)       – 0 –      – 0 –        – 0 –
Capital contributions
     – 0 –        – 0 –      .16      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (.87      .24      .11      .70
  
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends and Distributions            
Dividends from net investment income
     (.22      (.29 )      (.38      (.35 )
Distributions from net realized gain on investment transactions
     (.11      – 0 –      (.13      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
 
Total dividends and distributions
     (.33      (.29 )      (.51      (.35 )
  
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 8.70      $ 9.90      $ 9.95      $ 10.35  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total Return            
Total investment return based on net asset value(f)
     (8.94 )%      2.37 %      1.17      7.09 %
Ratios/Supplemental Data            
Net assets, end of period (000’s omitted)
   $ 4,364    $ 5,528    $ 371    $ 10
Ratio to average net assets of:
           
Expenses, net of waivers/reimbursements(g)
     .95      .68 %      .68      .70 %^
Expenses, before waivers/reimbursements(g)
     1.66      1.26 %      1.77      3.18 %^
Net investment income(c)
     1.95      2.24 %      2.28      3.14 %^
Portfolio turnover rate*
     60      163 %      336      178 %
Portfolio turnover rate (including securities sold short)*
     N/A      N/A      336      181 %
 
 
     CLASS C  
     Year Ended October 31,     
December 12,
2018(a) to
October 31,
2019
 
      2022      2021     2020  
Net asset value, beginning of period
   $ 9.89      $ 9.95     $ 10.34      $ 10.00  
  
 
 
    
 
 
   
 
 
    
 
 
 
Income From Investment Operations           
Net investment income(b)(c)
     .10        .15       .09        .21  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.04 )      .00 (d)(e)     (.04 )(d)      .41  
Contributions from Affiliates
     .00 (e)       – 0 –     – 0 –      – 0 –
  
 
 
    
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (.94      .15     .05      .62
  
 
 
    
 
 
   
 
 
    
 
 
 
Less: Dividends and Distributions           
Dividends from net investment income
     (.15      (.21 )     (.31 )      (.28 )
Distributions from net realized gain on investment transactions
     (.11      – 0 –     (.13 )      – 0 –
  
 
 
    
 
 
   
 
 
    
 
 
 
Total dividends and distributions
     (.26      (.21 )     (.44 )      (.28 )
  
 
 
    
 
 
   
 
 
    
 
 
 
Net asset value, end of period
   $ 8.69      $ 9.89     $ 9.95      $ 10.34  
  
 
 
    
 
 
   
 
 
    
 
 
 
Total Return           
Total investment return based on net asset value(f)
     (9.67 )%      1.46 %     .51 %      6.23 %
Ratios/Supplemental Data           
Net assets, end of period (000’s omitted)
   $ 292    $ 730   $ 730    $ 10
Ratio to average net assets of:
          
Expenses, net of waivers/reimbursements(g)
     1.71      1.47 %     1.48 %      1.49 %^
Expenses, before waivers/reimbursements(g)
     2.42      2.19 %     2.57 %      4.02 %^
Net investment income(c)
     1.10      1.53 %     .93 %      2.34 %^
Portfolio turnover rate*
     60      163 %     336 %      178 %
Portfolio turnover rate (including securities sold short)*
     N/A      N/A     336 %      181 %
See footnotes on page 102.
 
101

 
     ADVISOR CLASS  
     Year Ended October 31,     
December 12,
2018(a) to
October 31,
2019
 
      2022      2021     2020  
Net asset value, beginning of period
   $ 9.89      $ 9.95   $ 10.35    $ 10.00
  
 
 
    
 
 
   
 
 
    
 
 
 
Income From Investment Operations           
Net investment income(b)(c)
     .20        .25     .21      .30
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.05 )      .00 (d)(e)     (.08 )(d)      .41
Contributions from Affiliates
     .00 (e)      – 0 –     – 0 –        – 0 –
  
 
 
    
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (.85 )      .25     .13      .71
  
 
 
    
 
 
   
 
 
    
 
 
 
Less: Dividends and Distributions           
Dividends from net investment income
     (.24 )      (.31 )     (.40      (.36 )
Distributions from net realized gain on investment transactions
     (.11 )      – 0 –     (.13      – 0 –
  
 
 
    
 
 
   
 
 
    
 
 
 
Total dividends and distributions
     (.35 )      (.31 )     (.53      (.36 )
  
 
 
    
 
 
   
 
 
    
 
 
 
Net asset value, end of period
   $ 8.69      $ 9.89     $ 9.95      $ 10.35  
  
 
 
    
 
 
   
 
 
    
 
 
 
Total Return           
Total investment return based on net asset value(f)
     (8.76 )%      2.48 %     1.34 %      7.25
Ratios/Supplemental Data           
Net assets, end of period (000’s omitted)
   $ 64,972    $ 56,593     $ 41,681      $ 15,498
Ratio to average net assets of:
          
Expenses, net of waivers/reimbursements(g)
     .77      .47 %     .48 %      .49 %^
Expenses, before waivers/reimbursements(g)
     1.48      1.18 %     1.68 %      2.99 %^
Net investment income(c)
     2.17      2.52 %     2.13 %      3.31 %^
Portfolio turnover rate*
     60      163 %     336 %      178
Portfolio turnover rate (including securities sold short)*
     N/A      N/A       336 %      181
 
(a)
Commencement of operations.
 
(b)
Based on average shares outstanding.
 
(c)
Net of expenses waived/reimbursed by the Adviser.
 
(d)
Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.
 
(e)
Amount is less than $.005.
 
(f)
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. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.
 
(g)
The expense ratios presented below exclude interest expense:
 
     Year Ended October 31,      December 12,
2018(a) to
October 31,
 
      2022      2021      2020      2019  
Class A
 
Net of waivers/reimbursements
     .65 %      .65 %      .65 %      .65 %^
Before waivers/reimbursements
     1.35 %      1.23 %      1.73 %      3.13 %^
Class C
 
Net of waivers/reimbursements
     1.45 %      1.45 %      1.45 %      1.45 %^
Before waivers/reimbursements
     2.16 %      2.18 %      2.54 %      3.97 %^
Advisor Class
 
Net of waivers/reimbursements
     .45 %      .45 %      .45 %      .45 %^
Before waivers/reimbursements
     1.16 %      1.16 %      1.64 %      2.95 %^
 
 ^
Annualized.
 
 * 
The Fund accounts for dollar roll transactions as purchases and sales.
 
102

AB High Yield Portfolio
 
    CLASS A  
    
Year Ended
October 31,
2022
   
April 30,
2021(a) to
October 31,
2021(b)
    November 1,
2017 to
February 26,
2018(a)
   
Year Ended
October 31,
2017
 
Net asset value, beginning of period
  $ 9.98   $ 9.98   $ 9.71   $ 9.46
 
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations        
Net investment income(c)(d)
    .44     .17     .15     .46
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.69 )     .05     (.18 )     .25
Contributions from Affiliates
    – 0 –     – 0 –     – 0 –     .00 (e) 
 
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.25 )     .22     (.03 )     .71
 
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions        
Dividends from net investment income
    (.52 )     (.22 )     (.12 )     (.42
Return of capital
    – 0 –     – 0 –     – 0 –     (.04
 
 
 
   
 
 
   
 
 
   
 
 
 
Total dividends and distributions
    (.52 )     (.22 )     (.12 )     (.46
 
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 8.21     $ 9.98     $ 9.56     $ 9.71  
 
 
 
   
 
 
   
 
 
   
 
 
 
Total Return        
Total investment return based on net asset value(f)*
    (12.89 )%     2.23     (.02 )%     7.61 %+
Ratios/Supplemental Data        
Net assets, end of period (000’s omitted)
  $ 1,001   $ 158     $ 3,131   $ 5,150
Ratio to average net assets of:
       
Expenses, net of waivers/reimbursements(g)(h)†
    .85 %     .85 %^      .95 %^     .95
Expenses, before waivers/reimbursements(g)(h)†
    1.61 %     2.28 %^      3.27 %^     2.64
Net investment income(d)
    4.88 %     3.43 %^      4.70 %^     4.82
Portfolio turnover rate+++
    48 %     36     75 %     65
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00 %     .00 %^     .00 %^     .01
 
 
    ADVISOR CLASS  
    Year Ended
October 31,
2022
    January 1,
2021 to
October 31,
2021(b)
    Year Ended
December 31,
    November 1,
2018 to
December 31,
2018(i)
    Year Ended
October 31,
2018
 
   
     2020     2019  
Net asset value, beginning of period
  $ 9.98     $ 9.86     $ 9.63     $ 8.90     $ 9.36     $ 9.71  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Income From Investment Operations            
Net investment income(c)(d)
    .45       .38       .50       .52       .09       .50  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
    (1.68 )     .16       .30       .77       (.41 )     (.37 )
Contributions from Affiliates
    – 0 –     – 0 –     – 0 –     – 0 –     – 0 –     .00 (e) 
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
    (1.23 )     .54     .80     1.29     (.32 )     .13
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Less: Dividends            
Dividends from net investment income
    (.54 )     (.42 )     (.57 )     (.56 )     (.14 )     (.48
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Net asset value, end of period
  $ 8.21     $ 9.98     $ 9.86     $ 9.63     $ 8.90     $ 9.36  
 
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Total Return            
Total investment return based on net asset value(f)*
    (12.68 )%     5.56 %     8.95 %+     14.77 %+     (3.45 )%     1.32 %**
Ratios/Supplemental Data            
Net assets, end of period (000’s omitted)
  $ 67,249   $ 63,608   $ 38,751   $ 40,218   $ 30,509   $ 33,990
Ratio to average net assets of:
           
Expenses, net of waivers/reimbursements(g)(h)†
    .60 %     .51 %^     .70 %     .29 %++     .29 %^++     .33
Expenses, before waivers/reimbursements(g)(h)†
    1.35 %     1.74 %^     2.17 %     1.84 %++     3.25 %^++     2.56
Net investment income(d)
    5.00 %     4.60 %^     5.41 %     5.45 %     5.73 %^     5.20
Portfolio turnover rate+++
    48 %     36 %     75 %     40 %     5 %     75
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
    .00 %     .00 %^     .00 %     .01 %     .01 %^     .01
See footnotes on page 104.
 
103

 
     CLASS Z  
     
Year Ended
October 31,
2022
    
April 30,
2021(a) to
October 31
2021(b)
    November 1,
2017 to
February 26,
2018(a)
   
Year Ended
October 31,
2017
 
Net asset value, beginning of period
   $ 9.98    $ 9.98   $ 9.70   $ 9.45  
  
 
 
    
 
 
   
 
 
   
 
 
 
Income From Investment Operations          
Net investment income(c)(d)
     .44      .18     .16     .49  
Net realized and unrealized gain (loss) on investment and foreign currency transactions
     (1.67 )      .05     (.18 )     .24  
Contributions from Affiliates
     – 0 –      – 0 –     – 0 –     .00 (e)
  
 
 
    
 
 
   
 
 
   
 
 
 
Net increase (decrease) in net asset value from operations
     (1.23 )      .23     (.02 )     .73  
  
 
 
    
 
 
   
 
 
   
 
 
 
Less: Dividends and Distributions          
Dividends from net investment income
     (.54 )      (.23 )     (.13 )     (.43 )
Return of capital
     – 0 –      – 0 –     – 0 –     (.05 )
  
 
 
    
 
 
   
 
 
   
 
 
 
Total dividends and distributions
     (.54 )      (.23 )     (.13 )     (.48 )
  
 
 
    
 
 
   
 
 
   
 
 
 
Net asset value, end of period
   $ 8.21      $ 9.98     $ 9.55     $ 9.70  
  
 
 
    
 
 
   
 
 
   
 
 
 
Total Return          
Total investment return based on net asset value(f)*
     (12.67 )%      2.36     .14     7.91 %+
Ratios/Supplemental Data          
Net assets, end of period (000’s omitted)
   $ 48    $ 59   $ 417   $ 499
Ratio to average net assets of:
         
Expenses, net of waivers/reimbursements(g)(h)†
     .60      .60 %^     .70 %^     .73
Expenses, before waivers/reimbursements(g)(h)†
     1.27      1.92 %^     2.78 %^     1.41
Net investment income(d)
     4.87      3.61 %^     5.04 %^     5.12
Portfolio turnover rate+++
     48      36     75     65
† Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated
underlying portfolios
     .00      .00 %^     .00 %^     .01
 
(a)
Class A and Class Z shares of the Fund were not in operation from February 26, 2018 until April 30, 2021.
 
(b)
The Fund changed its fiscal year end from December 31 to October 31.
 
(c)
Based on average shares outstanding.
 
(d)
Net of expenses waived/reimbursed by the Adviser.
 
(e)
Amount is less than $.005.
 
(f)
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. 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.
 
(g)
The expense ratios presented below exclude interest expense:
 
    Year Ended
October 31,
    January 1,
2021 to
October 31,
    Year Ended
December 31,
    November 1,
2018 to
December 31,
    Year Ended
October 31,
 
     2022     2021(b)     2020     2019     2018(i)     2018     2017  
Class A
     
Net of waivers/reimbursements
    .85 %     .85 %^     N/A       N/A       N/A     .95 %(a)^     .95 %
Before waivers/reimbursements
    1.61 %     2.28 %^     N/A       N/A       N/A     3.27 %(a)^     2.69 %
Advisor Class
             
Net of waivers/reimbursements
    .60 %     .51 %^     .70 %     .29 %     .29 %^     .31     .70 %
Before waivers/reimbursements
    1.35 %     1.74 %^     2.17 %     1.84 %     3.25 %^     2.54     2.54 %
Class Z
             
Net of waivers/reimbursements
    .60 %     .60 %^     N/A       N/A       N/A     .70 %(a)^     .73 %
Before waivers/reimbursements
    1.27 %     1.92 %^     N/A       N/A       N/A     2.77 %(a)^     1.47 %
 
(h)
In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the year ended December 31, 2019, period ended December 31, 2018, years ended October 31, 2018 and October 31, 2017, such waivers amounted to .01%, .01% (annualized), .01% and .01%, respectively.
 
(i)
The Fund changed its fiscal year end from October 31 to December 31.
 
 ^
Annualized.
 
 * 
Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended December 31, 2019, October 31, 2018 and October 31, 2017 by .01%, .03% and .07%, respectively.
 
 **
Includes the impact of reimbursements from the Adviser which enhanced the Fund’s performance for the year ended October 31, 2018 by .01%.
 
  + 
The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.
 
 ++
The advisory fee reflected in the Fund’s expense ratio may be higher or lower than the Base Fee plus Performance Adjustment due to the different time periods over which the fee is calculated (i.e., the financial reporting vs. the Performance Period).
 
+++
Portfolio turnover is calculated for the Fund as a whole for the full fiscal year or period, as applicable, and is not annualized.
 
104

AB Tax-Aware Fixed Income Opportunities Portfolio
 
     CLASS A  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.56    $ 10.82    $ 11.09    $ 10.46    $ 10.77
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations               
Net investment income(a)(b)
     .21      .22      .29      .30      .24
Net realized and unrealized gain (loss) on investment transactions
     (1.69      .75      (.23 )      .65      (.30 )
Contributions from Affiliates
     .00 (c)       – 0 –      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.48      .97      .06      .95      (.06 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends               
Dividends from net investment income
     (.21      (.23 )      (.33 )      (.32 )      (.25 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.87      $ 11.56      $ 10.82      $ 11.09      $ 10.46  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return               
Total investment return based on net asset value(d)
     (12.93 )%      9.02 %      .63 %      9.15 %      (.55 )%
Ratios/Supplemental Data               
Net assets, end of period (000’s omitted)
   $ 29,037    $ 29,381    $ 16,463    $ 11,932    $ 5,666
Ratio to average net assets of:
              
Expenses, net of waivers/reimbursements(e)
     .76      .76 %      .77 %      .76 %      .75 %
Expenses, before waivers/reimbursements(e)
     .91      1.08 %      1.26 %      1.30 %      1.27 %
Net investment income(b)
     1.91      1.88 %      2.68 %      2.78 %      2.26 %
Portfolio turnover rate
     33      30 %      63 %      52 %      68 %
 
 
     CLASS C  
     Year Ended October 31,  
      2022      2021      2020     2019      2018  
Net asset value, beginning of period
   $ 11.56      $ 10.83    $ 11.09   $ 10.46    $ 10.77
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Income From Investment Operations              
Net investment income(a)(b)
     .12        .11      .20     .22      .16
Net realized and unrealized gain (loss) on investment transactions
     (1.68 )      .77      (.21 )     .65      (.30 )
Contributions from Affiliates
     .00 (c)      – 0 –      – 0 –     – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.56 )      .88      (.01 )     .87      (.14 )
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Less: Dividends              
Dividends from net investment income
     (.13 )      (.15 )      (.25 )     (.24 )      (.17 )
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Net asset value, end of period
   $ 9.87      $ 11.56      $ 10.83     $ 11.09      $ 10.46  
  
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Total Return              
Total investment return based on net asset value(d)
     (13.59 )%      8.22 %      (.03 )%+     8.33 %      (1.29 )%
Ratios/Supplemental Data              
Net assets, end of period (000’s omitted)
   $ 5,964    $ 7,943      $ 1,794   $ 1,596      $ 769
Ratio to average net assets of:
             
Expenses, net of waivers/reimbursements(e)
     1.51      1.51 %      1.52     1.51 %      1.50
Expenses, before waivers/reimbursements(e)
     1.66      1.81 %      2.00     2.06 %      2.02
Net investment income(b)
     1.08      .96 %      1.91     2.05 %      1.52
Portfolio turnover rate
     33      30 %      63     52 %      68
See footnotes on page 106.
 
105

 
     ADVISOR CLASS  
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Net asset value, beginning of period
   $ 11.56    $ 10.83    $ 11.09    $ 10.46    $ 10.77
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Income From Investment Operations
 
           
Net investment income(a)(b)
     .24      .24      .31      .33      .27
Net realized and unrealized gain (loss) on investment transactions
     (1.69      .75      (.21 )      .64      (.30 )
Contributions from Affiliates
     .00 (c)       – 0 –      – 0 –      – 0 –      – 0 –
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net increase (decrease) in net asset value from operations
     (1.45      .99      .10      .97      (.03 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Less: Dividends
 
           
Dividends from net investment income
     (.24      (.26 )      (.36 )      (.34 )      (.28 )
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Net asset value, end of period
   $ 9.87      $ 11.56      $ 10.83      $ 11.09      $ 10.46  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
 
Total Return
 
           
Total investment return based on net asset value(d)
     (12.71 )%      9.20 %      .97 %      9.42 %      (.30 )%
Ratios/Supplemental Data
 
           
Net assets, end of period (000’s omitted)
   $ 276,044    $ 159,988    $ 57,110    $ 67,119    $ 57,432
Ratio to average net assets of:
 
           
Expenses, net of waivers/reimbursements(e)
     .51      .51 %      .52 %      .51 %      .50 %
Expenses, before waivers/reimbursements(e)
     .66      .82 %      .99 %      1.05 %      1.02 %
Net investment income(b)
     2.23      2.05 %      2.87 %      3.04 %      2.52 %
Portfolio turnover rate
     33      30 %      63 %      52 %      68 %
 
(a)
Based on average shares outstanding.
 
(b)
Net of expenses waived/reimbursed by the Adviser.
 
(c)
Amount is less than $.005.
 
(d)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.
 
(e)
The expense ratios presented below exclude interest/bank overdraft expense:
 
     Year Ended October 31,  
      2022      2021      2020      2019      2018  
Class A
 
Net of waivers/reimbursements
     .75%      .75%      .75%      .75%      .75%
Before waivers/reimbursements
     .90%      1.07%      1.23%      1.29%      1.27%
Class C
 
Net of waivers/reimbursements
     1.50%      1.50%      1.50%      1.50%      1.50%
Before waivers/reimbursements
     1.65%      1.79%      1.98%      2.04%      2.02%
Advisor Class
 
Net of waivers/reimbursements
     .50%      .50%      .50%      .50%      .50%
Before waivers/reimbursements
     .65%      .80%      .96%      1.04%      1.02%
 
 + 
The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.
 
106

APPENDIX A
 
 
BOND RATINGS
The following is a summary of published ratings by certain NRSROs. The Adviser generally uses ratings issued by such NRSROs but may rely on ratings from other NRSROs, depending on the security in question. The rating of an issuer is heavily weighted by past developments and does not necessarily reflect probable future conditions. While NRSROs may from time to time revise such ratings, they undertake no obligation to do so. NRSROs may also fail to change credit ratings to reflect subsequent events on a timely basis.
Moody’s Investors Service, Inc. (“Moody’s”)
Aaa—Bonds which are rated Aaa are judged to be of the highest quality and are subject to the lowest level of credit risk.
Aa—Bonds which are rated Aa are judged to be of high quality and are subject to very low credit risk.
A—Bonds which are rated A are judged to be upper-medium-grade and are subject to low credit risk.
Baa—Bonds which are rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.
Ba—Bonds which are rated Ba are judged to be speculative and are subject to substantial credit risk.
B—Bonds which are rated B are considered speculative and are subject to high credit risk.
Caa—Bonds which are rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.
Ca—Bonds which are rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
C—Bonds which are rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.
Note—Moody’s applies numerical modifiers, 1, 2 and 3 in each generic rating classification from Aa through Caa. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of its generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.
By their terms, hybrid securities allow for the omission of scheduled dividends, interest or principal payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with that security.
S&P Global Ratings (“S&P”)
AAA—Debt rated AAA has the highest rating assigned by S&P. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong.
AA—Debt rated AA differs from the highest rated obligations only to a small degree. The obligor’s capacity to meet its financial commitments on the obligation is very strong.
A—Debt rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rated categories. However, the obligor’s capacity to meet its financial commitments on the obligation is still strong.
BBB—Debt rated BBB exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its financial commitments on the obligation.
BB, B, CCC, CC, C—Debt rated BB, B, CCC, CC or C are regarded as having significant speculative characteristics. BB indicates the lowest degree of speculation and C the highest. While such debt will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposure to adverse conditions.
BB—Debt rated BB is less vulnerable to nonpayment than other speculative debt. However, it faces major ongoing uncertainties or exposures to adverse business, financial or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitments on the obligation.
B—Debt rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity to meet its financial commitments on the obligation. Adverse business, financial or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments on the obligation.
CCC—Debt rated CCC is currently vulnerable to nonpayment and is dependent upon favorable business, financial and economic conditions for the obligor to meet its financial commitments on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to have the capacity to meet its financial commitments on the obligation.
CC—Debt rated CC is currently highly vulnerable to nonpayment. The CC rating is used when a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the anticipated time to default.
C—Debt rated C is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared with obligations that are rated higher.
 
A-1

D—Debt rated D is in default or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The D rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to D if it is subject to a distressed debt restructuring.
Plus (+) or Minus (-)—Ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the rating categories.
NR— NR indicates that a rating has not been assigned or is no longer assigned.
Fitch Ratings
AAA—Bonds considered to be investment grade and of the highest credit quality. The AAA ratings denote the lowest expectation of credit risk and are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
AA—Bonds considered to be investment grade and of very high credit quality. The AA ratings denote expectations of very low credit risk and indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.
A—Bonds considered to be investment grade and of high credit quality. The A ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than bonds with higher ratings.
BBB—Bonds considered to be investment grade and of good credit quality. The BBB ratings indicate that expectations of credit risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.
BB—Bonds are considered speculative and are indicative of an elevated vulnerability to credit risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial alternatives may be available to allow financial commitments to be met.
B—Bonds are considered highly speculative. The B ratings indicate that material credit risk is present.
CCC—Bonds are considered to have substantial credit risk.
CC—Bonds are considered to have very high levels of credit risk.
C—Bonds are considered to have exceptionally high levels of credit risk.
Defaulted obligations are typically rated in the CCC to C rating categories, depending upon their recovery prospects and other relevant characteristics. This approach better aligns obligations that have comparable overall expected loss but varying vulnerability to default and loss.
Plus (+) Minus (-)—Plus and minus signs are used with a rating symbol to indicate the relative position of a credit within the rating category. Plus and minus signs, however, are not used in the AAA category or in categories below CCC.
DBRS Morningstar
AAA—Long-term debt rated AAA is of the highest credit quality. The capacity for the payment of financial obligations is exceptionally high and unlikely to be adversely affected by future events.
AA—Long-term debt rated AA is of superior credit quality. The capacity for the payment of financial obligations is considered high. Credit quality differs from AAA only to a small degree. Unlikely to be significantly vulnerable to future events.
A—Long-term debt rated A is of good credit quality. The capacity for the payment of financial obligations is substantial, but of lesser credit quality than AA. May be vulnerable to future events, but qualifying negative factors are considered manageable.
BBB—Long-term debt rated BBB is of adequate credit quality. The capacity for the payment of financial obligations is considered acceptable. May be vulnerable to future events.
BB—Long-term debt rated BB is of speculative, non‑investment grade credit quality. The capacity for the payment of financial obligations is uncertain. Vulnerable to future events.
B—Long-term debt rated B is of highly speculative credit quality. There is a high level of uncertainty as to the capacity to meet financial obligations.
CCC, CC and C—Long-term debt rated in any of these categories is of very highly speculative credit quality. In danger of defaulting on financial obligations. There is little difference between these three categories, although CC and C ratings are normally applied to obligations that are seen as highly likely to default, or subordinated to obligations rated in the CCC to B range. Obligations in respect of which default has not technically taken place but is considered inevitable may be rated in the C category.
D—When the issuer has filed under any applicable bankruptcy, insolvency or winding up statute or there is a failure to satisfy an obligation after the exhaustion of grace periods, a downgrade to D may occur. DBRS Morningstar may also use SD (Selective Default) in cases where only some securities are impacted, such as the case of a “distressed exchange.”
All rating categories other than AAA and D also contain subcategories “(high)” and “(low).” The absence of either a “(high)” or “(low)” designation indicates the rating is in the middle of the category.
 
A-2

Kroll Bond Rating Agency (“KBRA”)
AAA—Determined to have almost no risk of loss due to credit-related events. Assigned only to the very highest quality obligors and obligations able to survive extremely challenging economic events.
AA—Determined to have minimal risk of loss due to credit-related events. Such obligors and obligations are deemed very high quality.
A—Determined to be of high quality with a small risk of loss due to credit-related events. Issuers and obligations in this category are expected to weather difficult times with low credit losses.
BBB—Determined to be of medium quality with some risk of loss due to credit-related events. Such issuers and obligations may experience credit losses during stressed environments.
BB—Determined to be of low quality with moderate risk of loss due to credit-related events. Such issuers and obligations have fundamental weaknesses that create moderate credit risk.
B—Determined to be of very low quality with high risk of loss due to credit-related events. These issuers and obligations contain many fundamental shortcomings that create significant credit risk.
CCC—Determined to be at substantial risk of loss due to credit-related events, near default or in default with high recovery expectations.
CC—Determined to be near default or in default with average recovery expectations.
C—Determined to be near default or in default with low recovery expectations.
D—KBRA defines default as occurring if: (1) there is a missed interest payment, principal payment, or preferred dividend payment, as applicable, on a rated obligation which is unlikely to be recovered; (2) the rated entity files for protection from creditors, is placed into receivership, or is closed by regulators such that a missed payment is likely to result; (3) the rated entity seeks and completes a distressed exchange, where existing rated obligations are replaced by new obligations with a diminished economic value.
KBRA may append - or + modifiers to ratings in categories AA through CCC to indicate, respectively, upper and lower risk levels within the broader category.
 
A-3

APPENDIX B
 
 
Hypothetical Investment and Expense Information
 
The following supplemental hypothetical investment information provides additional information calculated and presented in a manner different from expense information found under “Fees and Expenses of the Fund” in the Summary Information at the beginning of this Prospectus about the effect of a Fund’s expenses, including investment advisory fees and other Fund costs, on each Fund’s returns over a 10-year period. The chart shows the estimated expenses that would be charged on a hypothetical investment of $10,000 in Class A shares of each Fund assuming a 5% return each year, including an initial sales charge of 4.25% for all Funds except AB Tax-Aware Fixed Income Opportunities Portfolio and AB Short Duration Income Portfolio; an initial sales charge of 2.25% for AB Short Duration Income Portfolio; and an initial sales charge of 3.00% for AB Tax-Aware Fixed Income Opportunities Portfolio. Except as otherwise indicated, the chart also assumes that the current annual expense ratio stays the same throughout the 10-year period. The current annual expense ratio for each Fund is the same as stated under “Fees and Expenses of the Fund”. Additional information concerning the fees and expenses incurred by the Funds may be found at FINRA’s Fund Analyzer web page (available at https://tools.finra.org/fund_analyzer/). Your actual expenses may be higher or lower.
AB Total Return Bond Portfolio
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 502.41        $ 9,976.34
2
       9,976.34          498.82          10,475.16          111.04          10,364.12
3
       10,364.12          518.21          10,882.33          115.35          10,766.98
4
       10,766.98          538.35          11,305.33          119.84          11,185.49
5
       11,185.49          559.27          11,744.76          124.49          11,620.27
6
       11,620.27          581.01          12,201.28          129.33          12,071.95
7
       12,071.95          603.60          12,675.55          134.36          12,541.19
8
       12,541.19          627.06          13,168.25          139.58          13,028.67
9
       13,028.67          651.43          13,680.10          145.01          13,535.09
10
       13,535.09          676.75          14,211.84          150.65          14,061.19
Cumulative
            $ 5,733.25               $ 1,672.06       
AB Global Bond Fund
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 505.43        $ 9,973.32
2
       9,973.32          498.67          10,471.99          83.78          10,388.21
3
       10,388.21          519.41          10,907.62          87.26          10,820.36
4
       10,820.36          541.02          11,361.38          90.89          11,270.49
5
       11,270.49          563.52          11,834.01          94.67          11,739.34
6
       11,739.34          586.97          12,326.31          98.61          12,227.70
7
       12,227.70          611.39          12,839.09          102.71          12,736.38
8
       12,736.38          636.82          13,373.20          106.99          13,266.21
9
       13,266.21          663.31          13,929.52          111.44          13,818.08
10
       13,818.08          690.90          14,508.98          116.07          14,392.91
Cumulative
            $ 5,790.76               $ 1,397.85       
 
B-1

AB Sustainable Thematic Credit Portfolio
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 510.46        $ 9,968.29
2
       9,968.29          498.41          10,466.70          101.53          10,365.17
3
       10,365.17          518.26          10,883.43          105.57          10,777.86
4
       10,777.86          538.89          11,316.75          109.77          11,206.98
5
       11,206.98          560.35          11,767.33          114.14          11,653.19
6
       11,653.19          582.66          12,235.85          118.69          12,117.16
7
       12,117.16          605.86          12,723.02          123.41          12,599.61
8
       12,599.61          629.98          13,229.59          128.33          13,101.26
9
       13,101.26          655.06          13,756.32          133.44          13,622.88
10
       13,622.88          681.14          14,304.02          138.75          14,165.27
Cumulative
            $ 5,749.36               $ 1,584.09       
AB High Income Fund
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 515.48        $ 9,963.27
2
       9,963.27          498.16          10,461.43          94.15          10,367.28
3
       10,367.28          518.36          10,885.64          97.97          10,787.67
4
       10,787.67          539.38          11,327.05          101.94          11,225.11
5
       11,225.11          561.26          11,786.37          106.08          11,680.29
6
       11,680.29          584.01          12,264.30          110.38          12,153.92
7
       12,153.92          607.70          12,761.62          114.85          12,646.77
8
       12,646.77          632.34          13,279.11          119.51          13,159.60
9
       13,159.60          657.98          13,817.58          124.36          13,693.22
10
       13,693.22          684.66          14,377.88          129.40          14,248.48
Cumulative
            $ 5,762.60               $ 1,514.12       
AB Limited Duration High Income Portfolio
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 520.51        $ 9,958.24
2
       9,958.24          497.91          10,456.15          104.56          10,351.59
3
       10,351.59          517.58          10,869.17          108.69          10,760.48
4
       10,760.48          538.02          11,298.50          112.99          11,185.51
5
       11,185.51          559.28          11,744.79          117.45          11,627.34
6
       11,627.34          581.37          12,208.71          122.09          12,086.62
7
       12,086.62          604.33          12,690.95          126.91          12,564.04
8
       12,564.04          628.20          13,192.24          131.92          13,060.32
9
       13,060.32          653.02          13,713.34          137.13          13,576.21
10
       13,576.21          678.81          14,255.02          142.55          14,112.47
Cumulative
            $ 5,737.27               $ 1,624.80       
AB Income Fund
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 529.56        $ 9,949.19
2
       9,949.19          497.46          10,446.65          112.82          10,333.83
3
       10,333.83          516.69          10,850.52          117.19          10,733.33
4
       10,733.33          536.67          11,270.00          121.72          11,148.28
5
       11,148.28          557.41          11,705.69          126.42          11,579.27
6
       11,579.27          578.96          12,158.23          131.31          12,026.92
7
       12,026.92          601.35          12,628.27          136.39          12,491.88
8
       12,491.88          624.59          13,116.47          141.66          12,974.81
9
       12,974.81          648.74          13,623.55          147.13          13,476.42
10
       13,476.42          673.82          14,150.24          152.82          13,997.42
Cumulative
            $ 5,714.44               $ 1,717.02       
 
B-2

AB Short Duration Income Portfolio
 
 
Year    Hypothetical
Investment
     Hypothetical
Performance
Earnings
     Investment
After
Returns
     Hypothetical
Expenses*
     Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 488.75        $ 10,263.75        $ 322.51        $ 10,166.24
2
       10,166.24            508.31          10,674.55          177.20          10,497.35
3
       10,497.35            524.87          11,022.22          182.97          10,839.25
4
       10,839.25            541.96          11,381.21          188.93          11,192.28
5
       11,192.28            559.61          11,751.89          195.08          11,556.81
6
       11,556.81            577.84          12,134.65          201.44          11,933.21
7
       11,933.21            596.66          12,529.87          208.00          12,321.87
8
       12,321.87            616.09          12,937.96          214.77          12,723.19
9
       12,723.19            636.16          13,359.35          221.77          13,137.58
10
       13,137.58            656.88          13,794.46          228.99          13,565.47
Cumulative
            $ 5,707.13               $ 2,141.66       
AB High Yield Portfolio
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 478.75        $ 10,053.75        $ 510.46        $ 9,968.29
2
       9,968.29          498.41          10,466.70          168.51          10,298.19
3
       10,298.19          514.91          10,813.10          174.09          10,639.01
4
       10,639.01          531.95          11,170.96          179.85          10,991.11
5
       10,991.11          549.56          11,540.67          185.80          11,354.87
6
       11,354.87          567.74          11,922.61          191.95          11,730.66
7
       11,730.66          586.53          12,317.19          198.31          12,118.88
8
       12,118.88          605.94          12,724.82          204.87          12,519.95
9
       12,519.95          626.00          13,145.95          211.65          12,934.30
10
       12,934.30          646.72          13,581.02          218.65          13,362.37
Cumulative
            $ 5,606.51               $ 2,244.14       
AB Tax-Aware Fixed Income Opportunities Portfolio
 
 
Year    Hypothetical
Investment
    
Hypothetical
Performance
Earnings
    
Investment
After
Returns
    
Hypothetical
Expenses*
    
Hypothetical
Ending
Investment
1
     $ 10,000.00        $ 485.00        $ 10,185.00        $ 377.41        $ 10,107.59
2
       10,107.59          505.38          10,612.97          96.58          10,516.39
3
       10,516.39          525.82          11,042.21          100.48          10,941.73
4
       10,941.73          547.09          11,488.82          104.55          11,384.27
5
       11,384.27          569.21          11,953.48          108.78          11,844.70
6
       11,844.70          592.24          12,436.94          113.18          12,323.76
7
       12,323.76          616.19          12,939.95          117.75          12,822.20
8
       12,822.20          641.11          13,463.31          122.52          13,340.79
9
       13,340.79          667.04          14,007.83          127.47          13,880.36
10
       13,880.36          694.02          14,574.38          132.63          14,441.75
Cumulative
            $ 5,843.10               $ 1,401.35       
*
Expenses are net of any fee waiver or expense waiver for the first year. Thereafter, the expense ratio reflects the Fund’s operating expenses as reflected under “Fees and Expenses of the Fund” before fee waiver in the Summary Information at the beginning of this Prospectus.
 
B-3

APPENDIX C—FINANCIAL INTERMEDIARY WAIVERS
 
 
NOTE: Terms used by a financial intermediary in this Appendix do not necessarily have the same legal meaning as the same or similar terms used elsewhere in the Prospectus.
Waivers Specific to Merrill Lynch
 
Shareholders purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s Prospectus or SAI:
Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch
 
 
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan
 
 
Shares purchased by a 529 Plan (does not include 529 Plan units or 529-specific share classes or equivalents)
 
 
Shares purchased through a Merrill Lynch affiliated investment advisory program
 
 
Shares exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
 
 
Shares purchased by third-party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform
 
 
Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)
 
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)
 
 
Shares exchanged from Class C (i.e. level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
 
 
Employees and registered representatives of Merrill Lynch or its affiliates and their family members
 
 
Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Prospectus
 
 
Eligible shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). Automated transactions (i.e., systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill Lynch’s account maintenance fees are not eligible for reinstatement
CDSC Waivers on Classes A and C Shares available at Merrill Lynch
 
 
Death or disability of the shareholder
 
 
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
 
 
Return of excess contributions from an IRA Account
 
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code
 
 
Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch
 
 
Shares acquired through a right of reinstatement
 
 
Shares held in retirement brokerage accounts that are exchanged for a lower cost share class due to transfer to a fee-based account or platforms
 
 
Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers
 
C-1

Front-end Load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent
 
 
Breakpoints as described in the Prospectus
 
 
Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as described in the Fund’s Prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 program holdings, where applicable) within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets
 
 
Letters of Intent (“LOI”) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)
Waivers Specific to Morgan Stanley
 
Effective July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
 
   
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
 
   
Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules
 
   
Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund
 
   
Shares purchased through a Morgan Stanley self-directed brokerage account
 
   
Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program
 
   
Shares purchased from the proceeds of redemptions within the same fund family, provided that (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge
Class A Shares Front-End Sales Charge Waivers Available at Ameriprise Financial
 
The following information applies to Class A shares purchases if you have an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders purchasing Fund shares through an Ameriprise Financial brokerage account are eligible for the following front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s Prospectus or SAI:
 
   
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs
 
   
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the same fund family)
 
   
Shares exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent that this Prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares or conversion of Class C shares following a shorter holding period, that waiver will apply
 
   
Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members
 
   
Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant
 
   
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., Rights of Reinstatement)
 
C-2

In addition, shareholders purchasing Fund shares that are available through an Ameriprise Financial Advisory account are eligible for front-end sales charge waivers, which may differ from those disclosed elsewhere in the Fund’s Prospectus or SAI.
Waivers Specific to Raymond James & Associates, Inc., Raymond James Financial Services Inc. and each Entity’s Affiliates (“Raymond James”)
 
Effective March 1, 2019, shareholders purchasing Fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s Prospectus or SAI.
Front-end Sales Load Waivers on Class A Shares Available at Raymond James
 
 
Shares purchased in an investment advisory program
 
 
Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions
 
 
Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James
 
 
Shares purchased from the proceeds of redemptions within the same fund family, provided that (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement)
 
 
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James
CDSC Waivers on Classes A and C Shares Available at Raymond James
 
 
Death or disability of the shareholder
 
 
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
 
 
Return of excess contributions from an IRA Account
 
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the Fund’s Prospectus
 
 
Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James
 
 
Shares acquired through a right of reinstatement
Front-end Load Discounts Available at Raymond James: Breakpoints, Rights of Accumulation, and/or Letters of Intent
 
 
Breakpoints as described in the Prospectus
 
 
Rights of Accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of Rights of Accumulation only if the shareholder notifies his or her financial advisor about such assets
 
 
Letters of Intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of Letters of Intent only if the shareholder notifies his or her financial advisor about such assets
Waivers Specific to Janney Montgomery Scott LLC (“Janney”)
 
Effective May 1, 2020, if you purchase Fund shares through a Janney brokerage account, you will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge (“CDSC”), or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s Prospectus or SAI.
 
C-3

Front-end sales charge* waivers on Class A shares available at Janney
 
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)
 
 
Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney
 
 
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement)
 
 
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
 
 
Shares acquired through a right of reinstatement
 
 
Class C shares that are no longer subject to a CDSC and are converted to Class A shares of the same fund pursuant to Janney’s policies and procedures
CDSC waivers on Classes A and C shares available at Janney
 
 
Shares sold upon the death or disability of the shareholder
 
 
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
 
 
Shares purchased in connection with a return of excess contributions from an IRA account
 
 
Shares sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching the required age based on applicable rules
 
 
Shares sold to pay Janney fees but only if the transaction is initiated by Janney
 
 
Shares acquired through a right of reinstatement
 
 
Shares exchanged into the same share class of a different fund
Front-end sales charge* discounts available at Janney: breakpoints, Rights of Accumulation, and/or Letters of Intent
 
 
Breakpoints as described in the Fund’s Prospectus
 
 
Rights of Accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. Eligible fund family assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets
 
 
Letters of Intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney may be included in the calculation of Letters of Intent only if the shareholder notifies his or her financial advisor about such assets
*
Also, referred to as an “initial sales charge”
Waivers Specific to Oppenheimer & Co. Inc. (“OPCO”)
 
Effective May 1, 2020, shareholders purchasing Fund shares through an OPCO platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in the Fund’s Prospectus or SAI.
Front-end Sales Load Waivers on Class A Shares Available at OPCO
 
 
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan
 
 
Shares purchased by or through a 529 Plan
 
 
Shares purchased through an OPCO affiliated investment advisory program
 
C-4

 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)
 
 
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement)
 
 
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO
 
 
Employees and registered representatives of OPCO or its affiliates and their family members
 
 
Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in the Prospectus
CDSC Waivers on Classes A and C Shares Available at OPCO
 
 
Death or disability of the shareholder
 
 
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
 
 
Return of excess contributions from an IRA Account
 
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the Prospectus
 
 
Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO
 
 
Shares acquired through a right of reinstatement
Front-end load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
 
 
Breakpoints as described in the Prospectus
 
 
Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at OPCO. Eligible fund family assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets
Edward D. Jones & Co. (“Edward Jones”)
 
Policies Regarding Transactions Through Edward Jones
The following information has been provided by Edward Jones:
Effective on or after June 1, 2021, the following information supersedes prior information with respect to transactions and positions held in fund shares through an Edward Jones system. Clients of Edward Jones (also referred to as “shareholders”) purchasing Fund shares on the Edward Jones commission and fee-based platforms are eligible only for the following sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from discounts and waivers described elsewhere in the Fund’s Prospectus or SAI or through another broker-dealer. In all instances, it is the shareholder’s responsibility to inform Edward Jones at the time of purchase of any relationship, holdings of AB Mutual Funds or other facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.
Breakpoints
 
 
Breakpoint pricing, otherwise known as volume pricing, at dollar thresholds as described in the Prospectus
Rights of Accumulation (“ROA”)
 
 
The applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans) of AB Mutual Funds held by the shareholder or in an account grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations (“pricing
 
C-5

 
groups”). If grouping assets as a shareholder, that includes all share classes held on the Edward Jones platform and/or held on another platform. The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase or acquired in exchange for shares purchased with a sales charge
 
 
The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level
 
 
ROA is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV)
Letter of Intent (“LOI”) 
 
 
Through a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges will be adjusted if LOI is not met
 
 
If the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer
Sales Charge Waivers
Sales charges are waived for the following shareholders and in the following situations:
 
 
Associates of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the associate’s life if the associate retires from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones’ policies and procedures
 
 
Shares purchased in an Edward Jones fee-based program
 
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment
 
 
Shares purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in the same share class and the same account or the purchase is made in an individual retirement account with proceeds from the liquidations in a non-retirement account
 
 
Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in the Prospectus
 
 
Exchanges from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or earlier at the discretion of Edward Jones
Contingent Deferred Sales Charge (“CDSC”) Waivers
If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following conditions:
 
 
The death or disability of the shareholder
 
 
Systematic withdrawals with up to 10% per year of the account value
 
 
Return of excess contributions from an Individual Retirement Account (IRA)
 
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches qualified age based on applicable IRS regulations
 
 
Shares sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones
 
C-6

 
Shares exchanged in an Edwards Jones fee-based program
 
 
Shares acquired through NAV reinstatement
 
 
Shares redeemed at the discretion of Edward Jones for Minimum Balances, as described below
Other Important Information Regarding Transactions Through Edward Jones
Minimum Purchase Amounts
 
 
Initial purchase minimum: $250
 
 
Subsequent purchases minimum: none
Minimum Balances
 
 
Edward Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that are not included in this policy:
 
 
A fee-based account held on an Edward Jones platform
 
 
A 529 account held on an Edward Jones platform
 
 
An account with an active systematic investment plan or LOI
Exchanging Share Classes
 
 
At any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder’s holdings in a fund to Class A shares of the same fund
Waivers Specific to Baird
 
Effective June 15, 2020, shareholders purchasing Fund shares through a Baird platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and discounts, which may differ from those disclosed elsewhere in the Prospectus or the SAI.
Front-End Sales Charge Waivers on Class A shares Available at Baird
 
 
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund
 
 
Shares purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird
 
 
Shares purchased from the proceeds of redemptions from another AB Mutual Fund, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement)
 
 
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Baird
 
 
Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs
CDSC Waivers on Classes A and C shares Available at Baird
 
 
Shares sold due to death or disability of the shareholder
 
 
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
 
 
Shares bought due to returns of excess contributions from an IRA account
 
 
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the required age based on applicable rules
 
 
Shares sold to pay Baird fees but only if the transaction is initiated by Baird
 
 
Shares acquired through a right of reinstatement
 
C-7

Front-End Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of Accumulation
 
 
Breakpoints as described in the Prospectus
 
 
Rights of Accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of AB Mutual Fund assets held by accounts within the purchaser’s household at Baird. Eligible AB Mutual Fund assets not held at Baird may be included in the Rights of Accumulation calculation only if the shareholder notifies his or her financial advisor about such assets
 
 
Letters of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of AB Mutual Funds through Baird, over a 13-month period of time
Waiver Specific to Stifel, Nicolaus & Company, Incorporated (“Stifel”)
 
Effective July 31, 2020, shareholders purchasing Fund shares through a Stifel platform or account or who own shares for which Stifel or an affiliate is the broker-dealer of record are eligible for the following additional sales charge waiver:
Front-end Sales Load Waiver on Class A Shares
 
 
Class C shares that have been held for more than seven (7) years will be converted to Class A shares of the same Fund pursuant to Stifel’s policies and procedures
Waiver Specific to U.S. Bancorp Investments, Inc.
 
Effective September 30, 2021, shareholders purchasing Fund shares through a U.S. Bancorp Investments (“USBI”) platform or account or who own shares for which USBI is the broker-dealer of record, where the shares are held in an omnibus account at the Fund, will be eligible for the following additional sales charge waiver.
Front-end Sales Load Waiver on Class A Shares available at USBI
 
   
Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge are systematically converted to the Class A shares of the same fund pursuant to USBI’s share class exchange policy
 
C-8

For more information about the Funds, the following documents are available upon request:
 
 
ANNUAL/SEMI-ANNUAL REPORTS TO SHAREHOLDERS
The Funds’ annual and semi-annual reports to shareholders contain additional information on the Funds’ investments. In the annual report, you will find a discussion of the market conditions and investment strategies that significantly affected a Fund’s performance during its last fiscal year.
 
 
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The Funds have an SAI, which contains more detailed information about the Funds, including their operations and investment policies. The Funds’ SAI and the independent registered public accounting firm’s reports and financial statements in each Fund’s most recent annual report to shareholders are incorporated by reference into (and are legally part of) this Prospectus.
You may request a free copy of the current annual/semi-annual report or the SAI, or make inquiries concerning the Funds, by contacting your broker or other financial intermediary, or by contacting the Adviser:
 
By Mail:  
c/o AllianceBernstein Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
By Phone:  
For Information: (800) 221-5672
For Literature: (800) 227-4618
On the Internet:   www.abfunds.com
You may also view reports and other information about the Funds, including the SAI, by visiting the EDGAR database on the Securities and Exchange Commission’s website (http://www.sec.gov). Copies of this information can be obtained, for a duplicating fee, by electronic request at the following e-mail address: [email protected].
You also may find these documents and more information about the Adviser and the Funds on the Internet at: www.abfunds.com.
The [A/B] Logo is a service mark of AllianceBernstein and AllianceBernstein® is a registered trademark used by permission of the owner, AllianceBernstein L.P.
 
Fund    SEC File No.
AB Total Return Bond Portfolio
       811-02383
AB Global Bond Fund
       811-06554
AB Sustainable Thematic Credit Portfolio
       811-02383
AB High Income Fund
       811-08188
AB Limited Duration High Income Portfolio
       811-02383
AB Income Fund
       811-02383
AB Short Duration Income Portfolio
       811-02383
AB High Yield Portfolio
       811-02383
AB Tax-Aware Fixed Income Opportunities Portfolio
       811-02383
PRO-0115-0123
 
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