AB
National Portfolio
(Class
A–ALTHX; Class C–ALNCX; Advisor Class–ALTVX) |
AB
New Jersey Portfolio
(Class
A–ANJAX; Class C–ANJCX) | |||
AB
High Income Municipal Portfolio
(Class
A–ABTHX; Class C–ABTFX; Advisor Class–ABTYX;
Class Z–ABTZX) |
AB
New York Portfolio
(Class
A–ALNYX; Class C–ANYCX; Advisor Class–ALNVX) | |||
AB
California Portfolio
(Class
A–ALCAX; Class C–ACACX; Advisor Class–ALCVX) |
AB
Ohio Portfolio
(Class
A–AOHAX; Class C–AOHCX) | |||
AB
Arizona Portfolio
(Class
A–AAZAX; Class C–AAZCX; Advisor Class–AAZYX) |
AB
Pennsylvania Portfolio
(Class
A–APAAX; Class C–APACX) | |||
AB
Massachusetts Portfolio
(Class
A–AMAAX; Class C–AMACX; Advisor Class–AMAYX) |
AB
Virginia Portfolio
(Class
A–AVAAX; Class C–AVACX; Advisor Class–AVAYX) | |||
AB
Minnesota Portfolio
(Class
A–AMNAX; Class C–AMNCX) |
Ø Are Not
FDIC Insured
Ø May
Lose Value
Ø Are Not Bank Guaranteed |
Page | ||||
SUMMARY INFORMATION | 4 | |||
4 | ||||
8 | ||||
13 | ||||
18 | ||||
23 | ||||
28 | ||||
32 | ||||
36 | ||||
40 | ||||
44 | ||||
48 | ||||
ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS’ STRATEGIES, RISKS AND INVESTMENTS | 53 | |||
INVESTING IN THE PORTFOLIOS | 62 | |||
62 | ||||
64 | ||||
65 | ||||
66 | ||||
67 | ||||
67 | ||||
69 | ||||
69 | ||||
70 | ||||
71 | ||||
MANAGEMENT OF THE PORTFOLIOS | 72 | |||
DIVIDENDS, DISTRIBUTIONS AND TAXES | 74 | |||
GENERAL INFORMATION | 76 | |||
GLOSSARY | 77 | |||
FINANCIAL HIGHLIGHTS | 78 | |||
APPENDIX A—HYPOTHETICAL INVESTMENT AND EXPENSE INFORMATION | A-1 | |||
APPENDIX B—FINANCIAL INTERMEDIARY WAIVERS | B-1 |
Class A
Shares |
Class C
Shares |
Advisor Class
Shares | ||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
||||||
Exchange
Fee |
Class A | Class C | Advisor Class | ||||||||||
Management
Fees |
||||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||||
Other
Expenses: |
||||||||||||
Transfer
Agent |
||||||||||||
Other
Expenses(b) |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
||||||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
||||||||||||
|
|
|
|
|
|
|||||||
(a) |
(b) | “Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) | The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), 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.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until |
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | $ | * | $ | ||||||||
After
3 Years |
$ | $ | $ | |||||||||
After
5 Years |
$ | $ | $ | |||||||||
After
10 Years |
$ | $ | $ |
* | If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100.
|
• |
forward
commitments; |
• |
tender
option bonds (“TOBs”); |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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.
|
• |
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. |
• |
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.
|
• |
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
Portfolio’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
Portfolio invests more of its assets in a particular state’s municipal
securities, the Portfolio 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. The Portfolio’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.
|
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities.
|
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
|
• |
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | |||||||||||||
Return After Taxes on Distributions | ||||||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | ||||||||||||||
Class C | Return Before Taxes | |||||||||||||
Advisor Class | Return Before Taxes | |||||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
* |
|
|
|
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
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) |
||||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
||||||||
Exchange
Fee |
Class A | Class C | Advisor Class | Class Z | |||||||||||||
Management
Fees |
||||||||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||||||||
Other
Expenses: |
||||||||||||||||
Transfer
Agent |
||||||||||||||||
Interest
Expense |
||||||||||||||||
Other
Expenses(b) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
Other Expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
Annual Portfolio Operating Expenses Including Interest Expense Before
Waiver |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Fee
Waiver and/or Expense Reimbursement(c) |
( |
( |
( |
( |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
Annual Portfolio Operating Expenses Including Interest Expense After Fee
Waiver and/or Expense Reimbursement(d) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(a) |
(b) | “Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) | The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .80%, 1.55%, .55% and .55% of average
daily net assets, respectively, for Class A, Class C, Advisor Class
and Class Z shares. In addition to that agreement, in connection with the
Portfolio’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 Portfolio and/or reimburse other
expenses of the Portfolio in an amount equal to the Portfolio’s pro rata
share of the Money Market Portfolio’s effective management fee. Each of
the agreements will remain in effect until |
(d) |
If
interest expense were excluded, Total Annual Portfolio Operating Expenses
After Fee Waiver and/or Expense Reimbursement would be as follows:
|
Class A | Class C | Advisor Class | Class Z | |||||||||||||||||
.80 | % | 1.55 | % | .55 | % | .55 | % |
Class A | Class C | Advisor Class | Class Z | |||||||||||||
After
1 Year |
$ | $ | * | $ | $ | |||||||||||
After
3 Years |
$ | $ | $ | $ | ||||||||||||
After
5 Years |
$ | $ | $ | $ | ||||||||||||
After
10 Years |
$ | $ | $ | $ |
* | If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100.
|
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; |
• |
certain
types of mortgage-related securities; and
|
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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.
|
• |
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. |
• |
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.
|
• |
Below Investment Grade Securities Risk:
Investments in fixed-income securities with lower ratings (commonly known
as “junk bonds”) have a higher probability that an issuer will default or
fail to meet its payment obligations. These securities may be subject to
greater price volatility due to such factors as specific corporate
developments, interest rate sensitivity and negative performance of the
junk bond market generally and may be more difficult to trade than other
types of securities. |
• |
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
Portfolio’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
Portfolio invests more of its assets in a particular state’s municipal
securities, the Portfolio 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. The Portfolio’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.
|
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities.
|
• |
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.
|
• |
Leverage Risk: To the extent the
Portfolio uses leveraging techniques, such as TOBs, 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 Portfolio’s investments.
|
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’s 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 Portfolio shares as investors anticipate adverse effects on the
Portfolio or seek higher yields to offset the potential loss of the tax
deduction. As a result, the Portfolio would be required to maintain higher
levels of cash to meet the redemptions, which would negatively affect the
Portfolio’s yield. |
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
|
• |
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | |||||||||||||
Return After Taxes on Distributions | ||||||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | ||||||||||||||
Class C | Return Before Taxes | |||||||||||||
Advisor Class | Return Before Taxes | |||||||||||||
Class Z** | Return Before Taxes | |||||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
* |
|
|
|
|
** | Inception
date for Class Z shares: |
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares |
Advisor Class
Shares | ||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
||||||
Exchange
Fee |
Class A | Class C | Advisor Class | ||||||||||
Management
Fees |
||||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||||
Other
Expenses: |
||||||||||||
Transfer
Agent |
||||||||||||
Other
Expenses(b) |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
||||||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
||||||||||||
|
|
|
|
|
|
|||||||
(a) |
(b) | “Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) | The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), 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.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until |
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | $ | * | $ | ||||||||
After
3 Years |
$ | $ | $ | |||||||||
After
5 Years |
$ | $ | $ | |||||||||
After
10 Years |
$ | $ | $ |
* | If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100.
|
• |
forward
commitments; |
• |
tender
option bonds (“TOBs”); |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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.
|
• |
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. |
• |
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.
|
• |
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
Portfolio’s investments in municipal securities. These factors include
economic conditions, political or legislative changes, catastrophic
natural disasters, public health crises, uncertainties related to the tax
status of municipal securities, and the rights of investors in these
securities. The Portfolio’s investments in California municipal securities
may be vulnerable to events adversely affecting its economy. California’s
economy, the largest of the 50 states, is relatively diverse, which makes
it less vulnerable to events affecting a particular industry. However,
there remain a number of risks that threaten the state’s economy,
including potentially unfavorable changes to federal policies, the
uncertain impact of changes in federal tax law and trade policy,
significant unfunded liabilities of the two main retirement systems
managed by state entities, the |
California
Public Employees Retirement System and the California State Teachers’
Retirement System and public health crises (including the occurrence of a
contagious disease or illness). California’s economy may also be affected
by natural disasters, such as earthquakes, droughts, flooding or fires.
The Portfolio’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.
|
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities.
|
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
|
• |
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | |||||||||||||
Return After Taxes on Distributions | ||||||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | ||||||||||||||
Class C | Return Before Taxes | |||||||||||||
Advisor Class | Return Before Taxes | |||||||||||||
Bloomberg Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
* |
|
|
|
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
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 | 1.00%(a) | None | |||
Exchange
Fee |
None | None | None |
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 |
.04% | .04% | .04% | |||||||||
Other
Expenses(b) |
.34% | .35% | .34% | |||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
.38% | .39% | .38% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
1.08% | 1.84% | .83% | |||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.30)% | (.31)% | (.30)% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.78% | 1.53% | .53% | |||||||||
|
|
|
|
|
|
|||||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .78%, 1.53% and .53% of average daily net
assets, respectively, for Class A, Class C and Advisor Class shares.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until September 30, 2025 and may only be
terminated or changed with the consent of the Portfolio’s Board of
Trustees. In addition, each of the agreements will be automatically
extended for one‑year terms unless the Adviser provides notice of
termination to the Portfolio at least 60 days prior to the end of the
period. |
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | 377 | $ | 256 | * | $ | 54 | |||||
After
3 Years |
$ | 604 | $ | 549 | $ | 235 | ||||||
After
5 Years |
$ | 849 | $ | 967 | $ | 431 | ||||||
After
10 Years |
$ | 1,552 | $ | 1,934 | $ | 998 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’s investments in municipal securities. These factors include
economic conditions, political or legislative changes, catastrophic
natural disasters, public health crises, uncertainties related to the tax
status of municipal securities, and the rights of investors in these
securities. The Portfolio’s investments in Arizona municipal securities
are vulnerable to events adversely affecting its economy, including
public health crises (including the occurrence of a contagious disease or
illness). The leading sectors of Arizona’s economy include the trade,
transportation and utilities, leisure and hospitality, manufacturing,
education and health services, professional and business services and
financial activities sectors. These sectors are particularly vulnerable to
times of impaired consumer and business spending, such as during the
COVID-19 pandemic. Arizona’s economy may also be affected by natural
disasters, such as fires and flooding. The Portfolio’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. |
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 1.80% | 0.96% | 2.35% | ||||||||||
Return After Taxes on Distributions | 1.73% | 0.92% | 2.33% | |||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 2.13% | 1.32% | 2.47% | |||||||||||
Class C | Return Before Taxes | 3.25% | 0.82% | 1.91% | ||||||||||
Advisor Class** | Return Before Taxes | 5.29% | 1.85% | 2.93% | ||||||||||
Bloomberg Municipal Bond Index (reflects no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
** |
Inception
Date for Advisor Class shares: 3/25/2021. Performance information for
periods prior to the inception of Advisor Class shares is the
performance of the Portfolio’s Class A shares adjusted to reflect the
expenses of Advisor Class shares. |
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
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 | 1.00%(a) | None | |||
Exchange
Fee |
None | None | None |
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 |
.04% | .04% | .04% | |||||||||
Other
Expenses(b) |
.15% | .15% | .15% | |||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
.19% | .19% | .19% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
.89% | 1.64% | .64% | |||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.12)% | (.12)% | (.12)% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.77% | 1.52% | .52% | |||||||||
|
|
|
|
|
|
|||||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .77%, 1.52% and .52% of average daily net
assets, respectively, for Class A, Class C and Advisor Class shares.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until September 30, 2025 and may only be
terminated or changed with the consent of the Portfolio’s Board of
Trustees. In addition, each of the agreements will be automatically
extended for one‑year terms unless the Adviser provides notice of
termination to the Portfolio at least 60 days prior to the end of the
period. |
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | 376 | $ | 255 | * | $ | 53 | |||||
After
3 Years |
$ | 564 | $ | 506 | $ | 193 | ||||||
After
5 Years |
$ | 767 | $ | 880 | $ | 345 | ||||||
After
10 Years |
$ | 1,352 | $ | 1,733 | $ | 787 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’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. The Portfolio’s
investments in Massachusetts municipal securities are vulnerable to events
adversely affecting its economy, which is relatively diverse and based on
education and health services, professional and business services
(including financial and high-tech industries), and leisure and
hospitality, including public health crises (including the occurrence of a
contagious disease or illness). Massachusetts has a high degree of job
stability and an educated work force due to its large concentration of
colleges and universities but the high cost of doing business in
Massachusetts may serve as an impediment to job creation. The Portfolio’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. |
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 2.29% | 1.21% | 2.19% | ||||||||||
Return After Taxes on Distributions | 2.13% | 1.12% | 2.12% | |||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 2.37% | 1.45% | 2.29% | |||||||||||
Class C | Return Before Taxes | 3.60% | 1.06% | 1.73% | ||||||||||
Advisor Class** | Return Before Taxes | 5.75% | 2.07% | 2.75% | ||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
** |
Inception
Date for Advisor Class shares: 7/25/2016. Performance information for
periods prior to the inception of Advisor Class shares is the
performance of the Portfolio’s Class A shares adjusted to reflect the
expenses of Advisor Class shares. |
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares |
|||||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
3.00% | None | ||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
None | 1.00% | (a) | |||||
Exchange
Fee |
None | None |
Class A | Class C | |||||||
Management
Fees |
.45% | .45% | ||||||
Distribution
and/or Service (12b-1) Fees |
.25% | 1.00% | ||||||
Other
Expenses: |
||||||||
Transfer
Agent |
.09% | .09% | ||||||
Other
Expenses(b) |
.78% | .79% | ||||||
|
|
|
|
|||||
Total
Other Expenses |
.87% | .88% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses Before Waiver |
1.57% | 2.33% | ||||||
|
|
|
|
|||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.72)% | (.73)% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.85% | 1.60% | ||||||
|
|
|
|
|||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .85% and 1.60% of average daily net
assets, respectively, for Class A and Class C shares. In addition to
that agreement, in connection with the Portfolio’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
Portfolio and/or reimburse other expenses of the Portfolio in an amount
equal to the Portfolio’s pro rata share of the Money Market Portfolio’s
effective management fee. Each of the agreements will remain in effect
until September 30, 2025 and may only be terminated or changed with
the consent of the Portfolio’s Board of Trustees. In addition, each
agreement will be automatically extended for one-year terms unless the
Adviser provides notice of termination to the Portfolio at least 60 days
prior to the end of the period. |
Class A | Class C | |||||||
After
1 Year |
$ | 384 | $ | 263 | * | |||
After
3 Years |
$ | 712 | $ | 658 | ||||
After
5 Years |
$ | 1,063 | $ | 1,179 | ||||
After
10 Years |
$ | 2,052 | $ | 2,419 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’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. The Portfolio’s
investments in Minnesota municipal securities may be vulnerable to events
adversely affecting its economy, including public health crises (including
the occurrence of a contagious disease or illness). The leading sectors of
Minnesota’s economy include education and health services, manufacturing,
trade, transportation and utilities, professional and business services,
finance, insurance and real estate and agriculture, which are vulnerable
during general economic downturns. The Portfolio’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. |
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 1.09% | 0.89% | 2.00% | ||||||||||
Return After Taxes on Distributions | 1.02% | 0.78% | 1.90% | |||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 1.54% | 1.14% | 2.09% | |||||||||||
Class C | Return Before Taxes | 2.42% | 0.74% | 1.55% | ||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares |
|||||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
3.00% | None | ||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
None | 1.00% | (a) | |||||
Exchange
Fee |
None | None |
Class A | Class C | |||||||
Management
Fees |
.45% | .45% | ||||||
Distribution
and/or Service (12b-1) Fees |
.25% | 1.00% | ||||||
Other
Expenses: |
||||||||
Transfer
Agent |
.05% | .05% | ||||||
Other
Expenses(b) |
.46% | .45% | ||||||
|
|
|
|
|||||
Total
Other Expenses |
.51% | .50% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses Before Waiver |
1.21% | 1.95% | ||||||
|
|
|
|
|||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.39)% | (.38)% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.82% | 1.57% | ||||||
|
|
|
|
|||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .82% and 1.57% of average daily net
assets, respectively, for Class A and Class C shares. In addition to
that agreement, in connection with the Portfolio’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
Portfolio and/or reimburse other expenses of the Portfolio in an amount
equal to the Portfolio’s pro rata share of the Money Market Portfolio’s
effective management fee. Each of the agreements will remain in effect
until September 30, 2025 and may only be terminated or changed with
the consent of the Portfolio’s Board of Trustees. In addition, each
agreement will be automatically extended for one-year terms unless the
Adviser provides notice of termination to the Portfolio at least 60 days
prior to the end of the period. |
Class A | Class C | |||||||
After
1 Year |
$ | 381 | $ | 260 | * | |||
After
3 Years |
$ | 635 | $ | 575 | ||||
After
5 Years |
$ | 909 | $ | 1,017 | ||||
After
10 Years |
$ | 1,688 | $ | 2,052 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’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. The Portfolio’s
investments in New Jersey municipal securities may be vulnerable to events
adversely affecting its economy, including public health crises (including
the occurrence of a contagious disease or illness). New Jersey’s economy
is a diverse mix of information technology, transportation and logistics,
financial services, major pharmaceuticals, life sciences and advanced
manufacturing industries. However, adverse events affecting these
industries will have a negative effect on New Jersey’s economy. The
Portfolio’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.
|
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
federal, and if applicable, state income taxes. From time to time, the
U.S. Government and the U.S. Congress consider changes in federal tax law
that could limit or eliminate the federal tax exemption for municipal bond
income, which would in effect reduce the income received by shareholders
from the Portfolio by increasing taxes on that income. In such event, the
Portfolio’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 Portfolio shares as investors anticipate adverse effects on
the Portfolio or seek higher yields to offset the potential loss of the
tax deduction. As a result, the Portfolio would be required to maintain
higher levels of cash to meet the redemptions, which would negatively
affect the Portfolio’s yield. |
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 3.14% | 1.74% | 2.70% | ||||||||||
|
||||||||||||||
Return After Taxes on Distributions | 3.05% | 1.68% | 2.66% | |||||||||||
|
||||||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 3.11% | 1.99% | 2.79% | |||||||||||
Class C | Return Before Taxes | 4.68% | 1.62% | 2.24% | ||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares |
Advisor Class
Shares | ||||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
||||||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
||||||
Exchange
Fee |
Class A | Class C | Advisor Class | ||||||||||
Management
Fees |
||||||||||||
Distribution
and/or Service (12b-1) Fees |
||||||||||||
Other
Expenses: |
||||||||||||
Transfer
Agent |
||||||||||||
Other
Expenses(b) |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
||||||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
( |
( |
( |
|||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
||||||||||||
|
|
|
|
|
|
|||||||
(a) |
(b) | “Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) | The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), 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.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until |
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | $ | * | $ | ||||||||
After
3 Years |
$ | $ | $ | |||||||||
After
5 Years |
$ | $ | $ | |||||||||
After
10 Years |
$ | $ | $ |
* | If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100.
|
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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.
|
• |
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. |
• |
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.
|
• |
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
Portfolio’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. The Portfolio’s
investments in New York municipal securities may be vulnerable to events
adversely affecting its economy, including public health crises
(including the occurrence of a contagious disease or illness). New York’s
economy, while diverse, has a relatively large share of the nation’s
financial activities. With the financial services sector contributing more
than one-fifth of the state’s wages, the state’s economy is especially
vulnerable to adverse events affecting the financial markets such as those
that occurred in 2008-2009 and during the COVID-19 pandemic. In addition,
as New York’s financial services and professional and business
services sectors serve a global market, they can be highly sensitive to
|
global
trends. The Portfolio’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. |
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities.
|
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
|
• |
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | |||||||||||||
Return After Taxes on Distributions | ||||||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | ||||||||||||||
Class C | Return Before Taxes | |||||||||||||
Advisor Class | Return Before Taxes | |||||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
* |
|
|
|
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares | |||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
3.00% | None | ||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
None | 1.00%(a) | ||
Exchange
Fee |
None | None |
Class A | Class C | |||||||
Management
Fees |
.45% | .45% | ||||||
Distribution
and/or Service (12b-1) Fees |
.25% | 1.00% | ||||||
Other
Expenses: |
||||||||
Transfer
Agent |
.07% | .07% | ||||||
Interest
Expense |
.01% | .01% | ||||||
Other
Expenses(b) |
.57% | .58% | ||||||
|
|
|
|
|||||
Total
Other Expenses |
.65% | .66% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses Including Interest Expense Before
Waiver |
1.35% | 2.11% | ||||||
|
|
|
|
|||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.54)% | (.55)% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses Including Interest Expense After Fee
Waiver and/or Expense Reimbursement(d) |
.81% | 1.56% | ||||||
|
|
|
|
|||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .80% and 1.55% of average daily net
assets, respectively, for Class A and Class C shares. In addition to
that agreement, in connection with the Portfolio’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
Portfolio and/or reimburse other expenses of the Portfolio in an amount
equal to the Portfolio’s pro rata share of the Money Market Portfolio’s
effective management fee. Each of the agreements will remain in effect
until September 30, 2025 and may only be terminated or changed with
the consent of the Portfolio’s Board of Trustees. In addition, each
agreement will be automatically extended for one-year terms unless the
Adviser provides notice of termination to the Portfolio at least 60 days
prior to the end of the period. |
(d) |
If
interest expense were excluded, Total Annual Portfolio Operating Expenses
After Fee Waiver and/or Expense Reimbursement would be as follows:
|
Class A | Class C | |||||||
.80% | 1.55% |
Class A | Class C | |||||||
After
1 Year |
$ | 380 | $ | 259 | * | |||
After
3 Years |
$ | 663 | $ | 608 | ||||
After
5 Years |
$ | 967 | $ | 1,083 | ||||
After
10 Years |
$ | 1,830 | $ | 2,203 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’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. The Portfolio’s
investments in Ohio municipal securities may be vulnerable to events
adversely affecting its economy, including public health crises (including
the occurrence of a contagious disease or illness). Although manufacturing
(including auto-related manufacturing) in Ohio remains an integral part of
the State’s economy, the greatest growth in Ohio’s economy in recent years
has been in the non-manufacturing sectors, including the trade,
transportation and public utilities, educational and health services,
government and professional and business services sectors. However,
adverse economic conditions can adversely affect the state’s economy and
employment rates. The Portfolio’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. |
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 2.44% | 1.22% | 2.30% | ||||||||||
Return After Taxes on Distributions | 2.36% | 1.19% | 2.27% | |||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 2.55% | 1.53% | 2.41% | |||||||||||
Class C | Return Before Taxes | 3.80% | 1.10% | 1.86% | ||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
Class A
Shares |
Class C
Shares | |||
Maximum
Sales Charge (Load) Imposed on Purchases
(as
a percentage of offering price) |
3.00% | None | ||
Maximum
Deferred Sales Charge (Load)
(as
a percentage of offering price or redemption proceeds, whichever is
lower) |
None | 1.00%(a) | ||
Exchange
Fee |
None | None |
Class A | Class C | |||||||
Management
Fees |
.45% | .45% | ||||||
Distribution
and/or Service (12b-1) Fees |
.25% | 1.00% | ||||||
Other
Expenses: |
||||||||
Transfer
Agent |
.07% | .07% | ||||||
Other
Expenses(b) |
.59% | .59% | ||||||
|
|
|
|
|||||
Total
Other Expenses |
.66% | .66% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses Before Waiver |
1.36% | 2.11% | ||||||
|
|
|
|
|||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.51)% | (.51)% | ||||||
|
|
|
|
|||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.85% | 1.60% | ||||||
|
|
|
|
|||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .85% and 1.60% of average daily net
assets, respectively, for Class A and Class C shares. In addition to
that agreement, in connection with the Portfolio’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
Portfolio and/or reimburse other expenses of the Portfolio in an amount
equal to the Portfolio’s pro rata share of the Money Market Portfolio’s
effective management fee. Each of the agreements will remain in effect
until September 30, 2025 and may only be terminated or changed with
the consent of the Portfolio’s Board of Trustees. In addition, each
agreement will be automatically extended for one-year terms unless the
Adviser provides notice of termination to the Portfolio at least 60 days
prior to the end of the period. |
Class A | Class C | |||||||
After
1 Year |
$ | 384 | $ | 263 | * | |||
After
3 Years |
$ | 669 | $ | 612 | ||||
After
5 Years |
$ | 975 | $ | 1,087 | ||||
After
10 Years |
$ | 1,843 | $ | 2,209 |
* |
If
you did not redeem your shares at the end of the period, your expenses
would be decreased by approximately $100. |
• |
forward
commitments; |
• |
zero-coupon
municipal securities and variable, floating and inverse floating-rate
municipal securities; and |
• |
derivatives,
such as options, futures contracts, forwards and swaps.
|
• |
Market Risk: The value of the Portfolio’s
assets will fluctuate as the market or markets in which the Portfolio
invests fluctuate. The value of the Portfolio’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. |
• |
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. |
• |
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. |
• |
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
Portfolio’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. The Portfolio’s
investments in Pennsylvania municipal securities may be vulnerable to
events adversely affecting its economy, including public health crises
(including the occurrence of a contagious disease or illness).
Pennsylvania benefits from a highly diversified economy with a mix of
industries. Currently, the major sources of growth in Pennsylvania are in
the education and health care, manufacturing and technology sectors.
However, the state is vulnerable to business downturns and decreased
capital spending. The Portfolio’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.
|
• |
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 Portfolio’s assets can decline as can the value of the Portfolio’s
distributions. This risk is significantly greater for fixed-income
securities with longer maturities. |
• |
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.
Investments in fixed-income securities with lower ratings tend to have a
higher probability that an issuer will default or fail to meet its payment
obligations. |
• |
Tax Risk: There is no guarantee that the
income on the Portfolio’s municipal securities will be exempt from regular
U.S. federal, and if applicable, state income taxes. From time to time,
the U.S. Government and the U.S. Congress consider changes in U.S. federal
income 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 Portfolio by increasing taxes on that income. In
such event, the Portfolio’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 Portfolio shares as investors anticipate
adverse effects on the Portfolio or seek higher yields to offset the
potential loss of the tax deduction. As a result, the Portfolio would be
required to maintain higher levels of cash to meet the redemptions, which
would negatively affect the Portfolio’s yield.
|
• |
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 Portfolio. Causes of illiquid investments risk may include low trading
volumes, large positions and heavy redemptions of Portfolio shares.
Illiquid investments risk may be higher in a rising interest rate
environment, when the value and liquidity of fixed-income securities
generally decline. Municipal securities may have more 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. |
• |
Derivatives Risk: Derivatives may be
difficult to price or unwind and leveraged so that small changes may
produce disproportionate losses for the Portfolio. A short position in a
derivative instrument involves the risk of a theoretically unlimited
increase in the value of the underlying asset, reference rate or index,
which could cause the Portfolio 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 Portfolio.
|
• |
Management Risk: The Portfolio 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. |
• |
how
the Portfolio’s performance changed from year to year over ten years; and
|
• |
how
the Portfolio’s average annual returns for one, five and ten years compare
to those of a broad-based securities market index.
|
1 Year | 5 Years | 10 Years | ||||||||||||
Class A* | Return Before Taxes | 1.25% | 1.11% | 2.34% | ||||||||||
Return After Taxes on Distributions | 1.17% | 1.08% | 2.32% | |||||||||||
Return After Taxes on Distributions and Sale of Portfolio Shares | 1.89% | 1.48% | 2.47% | |||||||||||
Class C | Return Before Taxes | 2.64% | 0.95% | 1.89% | ||||||||||
Bloomberg
Municipal Bond Index
(reflects
no deduction for fees, expenses or taxes) |
6.40% | 2.25% | 3.03% |
* |
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 Portfolio shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
|
Employee | Length of Service | Title | ||
Daryl Clements | Since 2022 | Senior Vice President of the Adviser | ||
Matthew J. Norton | Since 2016 | Senior Vice President of the Adviser | ||
Andrew D. Potter | Since 2018 | Vice President of the Adviser |
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 | 1.00%(a) | None | |||
Exchange
Fee |
None | None | None |
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 |
.03% | .03% | .03% | |||||||||
Other
Expenses(b) |
.16% | .16% | .16% | |||||||||
|
|
|
|
|
|
|||||||
Total
Other Expenses |
.19% | .19% | .19% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses Before Waiver |
.89% | 1.64% | .64% | |||||||||
|
|
|
|
|
|
|||||||
Fee
Waiver and/or Expense Reimbursement(c) |
(.09)% | (.09)% | (.09)% | |||||||||
|
|
|
|
|
|
|||||||
Total
Annual Portfolio Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
.80% | 1.55% | .55% | |||||||||
|
|
|
|
|
|
|||||||
(a) |
For
Class C shares, the contingent deferred sales charge, or CDSC, is 0%
after the first year. Class C shares automatically convert to
Class A shares after eight years. |
(b) |
“Other
Expenses” includes acquired fund fees and expenses totaling less than
.01%. |
(c) |
The
Adviser has contractually agreed to waive its management fees and/or to
bear certain expenses of the Portfolio to the extent necessary to prevent
total Portfolio operating expenses (excluding acquired fund fees and
expenses other than the advisory fees of any AB Funds in which the
Portfolio may invest, interest expense, and extraordinary expenses), on an
annualized basis, from exceeding .80%, 1.55% and .55% of average daily net
assets, respectively, for Class A, Class C and Advisor Class shares.
In addition to that agreement, in connection with the Portfolio’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 Portfolio and/or reimburse other expenses of the
Portfolio in an amount equal to the Portfolio’s pro rata share of the
Money Market Portfolio’s effective management fee. Each of the agreements
will remain in effect until September 30, 2025 and may only be
terminated or changed with the consent of the Portfolio’s Board of
Trustees. In addition, each agreement will be automatically extended for
one-year terms unless the Adviser provides notice of termination to the
Portfolio at least 60 days prior to the end of the period.
|
Class A | Class C | Advisor Class | ||||||||||
After
1 Year |
$ | 379 | $ | 258 | * | $ | 56 | |||||
After
3 Years |
$ | 567 | $ | 508 | $ |