N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21497

AB CORPORATE SHARES

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York 10105

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 221-5672

Date of fiscal year end: April 30, 2020

Date of reporting period: October 31, 2019

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.19

SEMI-ANNUAL REPORT

AB CORPORATE INCOME SHARES

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

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

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Corporate Income Shares (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB CORPORATE INCOME SHARES    ^|    1

SEMI-ANNUAL REPORT

December 11, 2019

This report provides management’s discussion of fund performance for AB Corporate Income Shares for the semi-annual reporting period ended October 31, 2019. Please note, shares of this Fund are available only to separately managed accounts or participants in “wrap fee” programs or other investment programs approved by the Adviser.

The Fund’s investment objective is to earn high current income.

NAV RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	6 Months		12 Months
AB CORPORATE INCOME SHARES		8.24%		16.46%
Bloomberg Barclays US Credit Bond Index		7.46%		14.88%

Please keep in mind that high, double-digit returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Credit Bond Index, for the six- and 12-month periods ended October 31, 2019.

During the six-month period, the Fund outperformed the benchmark. Yield-curve positioning was the primary contributor, relative to the benchmark, particularly an overweight in four- to six-year maturities. Underweights along the two- to three-year and seven- to 10-year and longer parts of the yield curve offset some of these gains. The Fund’s longer-than-benchmark duration was also positive, as rates rallied in the period. From an industry perspective, gains in finance and real estate investment trusts exceeded losses from energy. Security selection contributed to returns, as gains from selection within banking, real estate investment trusts and consumer non- cyclicals more than offset losses in energy.

During the 12-month period, the Fund outperformed the benchmark. Yield-curve positioning was the primary contributor, particularly an overweight in three- to six-year maturities. Underweights along the one- to three-year and seven- to 10-year and longer parts of the yield curve offset some of these gains. The Fund’s longer-than-benchmark duration was also positive, as rates rallied in the period. From an industry perspective, gains in finance and supranational bonds exceeded losses from energy and treasuries. Security selection contributed, as gains from selection within banking, consumer non-cyclicals and technology more than offset losses in energy.

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The Fund utilized derivatives in the form of futures and interest rate swaps for hedging purposes, and credit default swaps for investment purposes, which added to absolute returns for both periods.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the six-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times in reaction to slowing global growth, declining manufacturing output and faltering business confidence from the ongoing US-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remains below target in most developed countries and is falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partial US-China trade agreement and an increased likelihood of the UK leaving the European Union at the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek attractively priced securities through top-down and bottom-up research, while mitigating overall risk. The Team invests primarily in single-sector, investment-grade issues of global corporates, but has leeway to invest in below investment-grade bonds as well.

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in US corporate bonds. The Fund may also invest in US government securities (other than US government securities that are mortgage-backed or asset-backed securities), repurchase agreements and forward contracts relating to US government securities. The Fund normally invests all of its assets in securities that are rated, at the time of purchase, at least BBB- or the equivalent. The Fund will

(continued on next page)

abfunds.com AB CORPORATE INCOME SHARES    ^|    3

not invest in unrated corporate debt securities. The Fund has the flexibility to invest in long- and short-term fixed-income securities. In making decisions about whether to buy or sell securities, the Adviser will consider, among other things, the strength of certain sectors of the fixed-income market relative to others, interest rates and other general market conditions and the credit quality of individual issuers.

The Fund also may: invest in convertible debt securities; invest up to 10% of its assets in inflation-indexed securities; invest up to 5% of its net assets in preferred stock; purchase and sell interest rate futures contracts and options; enter into swap transactions; invest in zero-coupon securities and “payment-in-kind” debentures; make secured loans of portfolio securities; and invest in US dollar-denominated fixed-income securities issued by non-US companies.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Credit Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund. The Bloomberg Barclays US Credit Bond Index represents the performance of the US credit securities within the US fixed-income market. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any 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.

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.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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DISCLOSURES AND RISKS (continued)

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	NAV Returns
1 Year		16.46%
5 Years		4.74%
10 Years		6.01%

AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2019 (unaudited)

	NAV Returns
1 Year		13.94%
5 Years		4.81%
10 Years		6.07%

The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.00% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses, except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Actual	$	1,000	$	1,082.40	$	– 0 –		0.00	%
Hypothetical**	$	1,000	$	1,025.14	$	– 0 –		0.00	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $138.2

1 All data are as of October 31, 2019. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details).

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PORTFOLIO OF INVESTMENTS

October 31, 2019 (unaudited)

	Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 95.6%
Industrial – 48.8%
Basic – 2.3%
Celulosa Arauco y Constitucion SA 4.25%, 4/30/29(a)	$	246	$	250,182
4.50%, 8/01/24		200		208,312
DuPont de Nemours, Inc. 5.419%, 11/15/48		121		150,931
Glencore Finance Canada Ltd. 4.95%, 11/15/21(a)		80		83,862
Glencore Funding LLC 4.125%, 5/30/23(a)		125		130,733
4.625%, 4/29/24(a)		175		187,614
LYB International Finance BV 4.00%, 7/15/23		228		241,933
LyondellBasell Industries NV 4.625%, 2/26/55		102		105,602
Mosaic Co. (The) 4.25%, 11/15/23		221		235,513
Reliance Steel & Aluminum Co. 4.50%, 4/15/23		848		899,516
Sherwin-Williams Co. (The) 3.125%, 6/01/24		62		64,326
Suzano Austria GmbH 6.00%, 1/15/29		224		247,072
Westlake Chemical Corp. 4.375%, 11/15/47		360		356,198
				3,161,794
Capital Goods – 2.5%
3M Co. 3.25%, 8/26/49		110		109,875
General Electric Co. 5.875%, 1/14/38		274		328,857
Series G 3.10%, 1/09/23		374		380,635
John Deere Capital Corp. 2.30%, 6/07/21		302		304,283
Masco Corp. 4.375%, 4/01/26		447		485,062
4.45%, 4/01/25		698		759,745
Molex Electronic Technologies LLC 2.878%, 4/15/20(a)		130		130,247
United Technologies Corp. 2.80%, 5/04/24		198		204,005
5.70%, 4/15/40		222		298,468

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Vulcan Materials Co. 4.50%, 6/15/47	$	169	$	183,933
Wabtec Corp. 4.40%, 3/15/24		233		248,560
				3,433,670
Communications - Media – 4.2%
CBS Corp. 4.20%, 6/01/29		393		426,735
Charter Communications Operating LLC/Charter Communications Operating Capital 5.125%, 7/01/49		249		265,168
5.375%, 5/01/47		374		409,302
Comcast Corp. 3.25%, 11/01/39		410		417,474
3.90%, 3/01/38		215		236,883
4.60%, 10/15/38		85		101,300
4.65%, 7/15/42		375		448,132
4.75%, 3/01/44		140		170,201
6.45%, 3/15/37		329		463,929
Discovery Communications LLC 5.20%, 9/20/47		358		395,021
Omnicom Group, Inc./Omnicom Capital, Inc. 4.45%, 8/15/20		101		102,856
Time Warner Entertainment Co. LP 8.375%, 3/15/23		987		1,173,316
Walt Disney Co. (The) 4.00%, 10/01/23(a)		40		42,693
5.40%, 10/01/43(a)		180		247,723
6.15%, 2/15/41(a)		110		161,399
6.40%, 12/15/35(a)		161		230,765
8.875%, 4/26/23(a)		125		152,549
Weibo Corp. 3.50%, 7/05/24		373		380,693
				5,826,139
Communications - Telecommunications – 2.9%
AT&T, Inc. 4.30%, 2/15/30		234		257,711
4.75%, 5/15/46		89		98,776
4.85%, 3/01/39-7/15/45		194		218,421
5.15%, 2/15/50		75		87,191
5.35%, 9/01/40		415		491,982
5.45%, 3/01/47		168		203,067
6.55%, 1/15/28-2/15/39		350		442,703
Rogers Communications, Inc. 4.50%, 3/15/43		4		4,555

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Telefonica Emisiones SA 4.665%, 3/06/38	$	196	$	215,765
Verizon Communications, Inc. 4.272%, 1/15/36		586		665,596
4.862%, 8/21/46		731		907,076
Vodafone Group PLC 4.25%, 9/17/50		132		135,309
4.875%, 6/19/49		78		87,727
5.25%, 5/30/48		184		215,641
				4,031,520
Consumer Cyclical - Automotive – 2.6%
Ford Motor Credit Co. LLC 3.096%, 5/04/23		483		476,557
3.81%, 1/09/24		395		394,794
4.14%, 2/15/23		200		203,886
General Motors Co. 5.95%, 4/01/49		95		103,130
General Motors Financial Co., Inc. 3.25%, 1/05/23		921		933,498
3.50%, 11/07/24		599		609,782
4.15%, 6/19/23		116		120,942
4.30%, 7/13/25		314		329,226
Hyundai Capital America 2.55%, 4/03/20(a)		102		102,048
PACCAR Financial Corp. 2.65%, 5/10/22		248		252,749
				3,526,612
Consumer Cyclical - Other – 0.6%
Las Vegas Sands Corp. 3.20%, 8/08/24		573		586,408
3.50%, 8/18/26		200		204,040
				790,448
Consumer Cyclical - Restaurants – 0.9%
McDonald’s Corp. 4.70%, 12/09/35		585		695,904
Starbucks Corp. 3.55%, 8/15/29		238		257,823
4.50%, 11/15/48		225		260,636
				1,214,363
Consumer Cyclical - Retailers – 0.8%
Dollar General Corp. 3.25%, 4/15/23		61		63,274
Home Depot, Inc. (The) 5.875%, 12/16/36		40		55,610

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Lowe’s Cos., Inc. 4.375%, 9/15/45	$	305	$	336,122
Target Corp. 3.90%, 11/15/47		230		263,148
4.00%, 7/01/42		335		383,997
				1,102,151
Consumer Non-Cyclical – 10.2%
AbbVie, Inc. 4.40%, 11/06/42		185		191,873
4.875%, 11/14/48		375		414,308
Altria Group, Inc. 4.40%, 2/14/26		389		419,396
4.80%, 2/14/29		102		111,839
AmerisourceBergen Corp. 4.30%, 12/15/47		207		213,156
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. 4.90%, 2/01/46		385		460,964
Anheuser-Busch InBev Finance, Inc. 4.70%, 2/01/36		320		368,848
Anheuser-Busch InBev Worldwide, Inc. 4.95%, 1/15/42		490		581,630
BAT Capital Corp. 2.789%, 9/06/24		330		328,970
4.39%, 8/15/37		795		784,331
Biogen, Inc. 5.20%, 9/15/45		214		261,641
Bunge Ltd. Finance Corp. 3.25%, 8/15/26		458		459,511
Cardinal Health, Inc. 3.20%, 3/15/23		529		542,685
Celgene Corp. 4.55%, 2/20/48		75		91,004
Cigna Corp. 3.00%, 7/15/23(a)		71		72,490
4.80%, 8/15/38		37		42,229
4.80%, 7/15/46(a)		263		294,991
7.875%, 5/15/27(a)		53		69,142
CommonSpirit Health 4.35%, 11/01/42		44		45,809
Constellation Brands, Inc. 5.25%, 11/15/48		184		227,575
CVS Health Corp. 3.25%, 8/15/29		44		44,442
3.875%, 7/20/25		308		327,669
4.78%, 3/25/38		592		659,583
5.125%, 7/20/45		120		138,316

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Danaher Corp. 4.375%, 9/15/45	$	260	$	304,213
Eli Lilly & Co. 5.55%, 3/15/37		83		111,451
Gilead Sciences, Inc. 4.15%, 3/01/47		75		83,206
4.50%, 2/01/45		170		196,557
HCA, Inc. 4.75%, 5/01/23		155		165,945
Johnson & Johnson 3.55%, 3/01/36		851		936,687
Keurig Dr Pepper, Inc. 2.55%, 9/15/26		260		258,856
5.085%, 5/25/48		191		229,618
Kraft Heinz Foods Co. 5.20%, 7/15/45		124		131,998
6.875%, 1/26/39		242		302,231
Leggett & Platt, Inc. 4.40%, 3/15/29		773		841,642
Mylan, Inc. 4.20%, 11/29/23		307		322,832
4.55%, 4/15/28		380		406,923
Newell Brands, Inc. 3.85%, 4/01/23		548		567,569
Perrigo Finance Unlimited Co. 3.90%, 12/15/24		303		311,472
4.375%, 3/15/26		420		434,948
Philip Morris International, Inc. 4.50%, 3/26/20		475		479,318
Smithfield Foods, Inc. 3.35%, 2/01/22(a)		65		65,204
Tyson Foods, Inc. 4.55%, 6/02/47		178		202,368
5.10%, 9/28/48		239		294,051
Wyeth LLC 5.95%, 4/01/37		188		258,256
				14,057,747
Energy – 10.5%
Baker Hughes a GE Co. LLC 5.125%, 9/15/40		390		445,942
Boardwalk Pipelines LP 4.80%, 5/03/29		304		323,626
Buckeye Partners LP 3.95%, 12/01/26		474		438,706
Cenovus Energy, Inc. 3.00%, 8/15/22		90		90,947

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Columbia Pipeline Group, Inc. 4.50%, 6/01/25	$	867	$	941,891
Ecopetrol SA 5.875%, 9/18/23-5/28/45		89		99,983
Enable Midstream Partners LP 3.90%, 5/15/24		921		936,602
5.00%, 5/15/44		41		36,156
Enbridge, Inc. 4.00%, 10/01/23		422		447,691
Energy Transfer Operating LP 5.875%, 1/15/24		539		598,786
Eni SpA 4.25%, 5/09/29(a)		247		271,048
Enterprise Products Operating LLC 3.75%, 2/15/25		140		149,787
3.90%, 2/15/24		59		62,847
4.80%, 2/01/49		85		98,189
4.90%, 5/15/46		45		52,179
EQM Midstream Partners LP 4.75%, 7/15/23		1,135		1,127,316
EQT Corp. 3.00%, 10/01/22		867		827,456
3.90%, 10/01/27		274		243,907
Exxon Mobil Corp. 4.114%, 3/01/46		524		624,278
Husky Energy, Inc. 4.40%, 4/15/29		240		253,589
MPLX LP 3.50%, 12/01/22(a)		175		180,063
Newfield Exploration Co. 5.375%, 1/01/26		610		659,245
5.625%, 7/01/24		475		520,557
Noble Energy, Inc. 3.25%, 10/15/29		135		134,595
6.00%, 3/01/41		113		131,068
Occidental Petroleum Corp. 2.90%, 8/15/24		319		322,445
3.20%, 8/15/26		52		52,595
4.30%, 8/15/39		128		130,173
ONEOK, Inc. 5.20%, 7/15/48		295		324,612
Plains All American Pipeline LP/PAA Finance Corp. 3.60%, 11/01/24		917		938,742
Sabine Pass Liquefaction LLC 5.625%, 2/01/21-4/15/23		1,156		1,240,149

abfunds.com AB CORPORATE INCOME SHARES    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Suncor Energy, Inc. 6.80%, 5/15/38	$	223	$	314,392
Sunoco Logistics Partners Operations LP 3.90%, 7/15/26		170		177,242
5.35%, 5/15/45		145		152,837
TransCanada PipeLines Ltd. 4.75%, 5/15/38		50		56,834
7.625%, 1/15/39		153		226,376
Transcontinental Gas Pipe Line Co. LLC 7.85%, 2/01/26		325		411,911
Valero Energy Corp. 6.625%, 6/15/37		160		208,573
Western Midstream Operating LP 4.65%, 7/01/26		81		80,775
5.30%, 3/01/48		130		110,683
5.45%, 4/01/44		149		129,208
				14,574,001
Other Industrial – 0.2%
Alfa SAB de CV 5.25%, 3/25/24(a)		200		215,750
Services – 0.7%
eBay, Inc. 2.75%, 1/30/23		62		62,942
Global Payments, Inc. 2.65%, 2/15/25		320		324,477
IHS Markit Ltd. 4.00%, 3/01/26(a)		76		80,815
4.125%, 8/01/23		208		219,560
Moody’s Corp. 5.25%, 7/15/44		255		324,781
				1,012,575
Technology – 8.7%
Apple, Inc. 4.45%, 5/06/44		620		753,015
4.65%, 2/23/46		250		313,892
Avnet, Inc. 4.625%, 4/15/26		612		655,085
Broadcom Corp./Broadcom Cayman Finance Ltd. 2.65%, 1/15/23		857		858,757
3.625%, 1/15/24		251		258,339
Broadcom, Inc. 3.625%, 10/15/24(a)		265		272,553
4.25%, 4/15/26(a)		549		572,942
CA, Inc. 3.60%, 8/15/22		837		852,342

16    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Dell International LLC/EMC Corp. 4.90%, 10/01/26(a)	$	411	$	445,840
6.02%, 6/15/26(a)		386		440,835
DXC Technology Co. 4.25%, 4/15/24		160		167,278
Fidelity National Information Services, Inc. 5.00%, 10/15/25		2		2,285
Intel Corp. 4.90%, 7/29/45		195		251,963
International Business Machines Corp. 1.625%, 5/15/20		489		488,394
4.00%, 6/20/42		530		583,594
Lam Research Corp. 3.75%, 3/15/26		142		153,082
4.875%, 3/15/49		235		289,431
Microchip Technology, Inc. 3.922%, 6/01/21		175		179,055
Micron Technology, Inc. 4.64%, 2/06/24		276		295,403
4.975%, 2/06/26		703		761,616
Microsoft Corp. 4.50%, 10/01/40		429		537,301
NXP BV/NXP Funding LLC 4.875%, 3/01/24(a)		495		537,342
Oracle Corp. 6.125%, 7/08/39		254		358,386
QUALCOMM, Inc. 4.30%, 5/20/47		3		3,374
Seagate HDD Cayman 4.75%, 1/01/25		19		19,965
4.875%, 3/01/24		485		513,431
Tech Data Corp. 3.70%, 2/15/22		867		888,718
Texas Instruments, Inc. 3.875%, 3/15/39		150		171,330
VMware, Inc. 3.90%, 8/21/27		422		436,618
				12,062,166
Transportation - Railroads – 0.3%
Burlington Northern Santa Fe LLC 4.55%, 9/01/44		85		102,088
CSX Corp. 3.80%, 11/01/46		175		184,286
Union Pacific Corp. 4.00%, 4/15/47		110		121,716
				408,090

abfunds.com AB CORPORATE INCOME SHARES    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Transportation - Services – 1.4%
Aviation Capital Group LLC 3.875%, 5/01/23(a)	$	215	$	222,347
4.375%, 1/30/24(a)		230		242,707
ERAC USA Finance LLC 3.85%, 11/15/24(a)		145		154,770
FedEx Corp. 4.05%, 2/15/48		386		380,569
Penske Truck Leasing Co. Lp/PTL Finance Corp. 3.90%, 2/01/24(a)		300		316,824
Ryder System, Inc. 2.50%, 9/01/22		150		151,178
United Parcel Service, Inc. 3.40%, 9/01/49		451		460,340
				1,928,735
				67,345,761
Financial Institutions – 41.1%
Banking – 23.4%
Banco Santander SA 5.179%, 11/19/25		400		443,676
Bank of America Corp. 3.366%, 1/23/26		603		630,690
3.458%, 3/15/25		230		240,739
Series L 3.95%, 4/21/25		1,134		1,207,166
Series X 6.25%, 9/05/24(b)		175		193,788
Series Z 6.50%, 10/23/24(b)		53		59,832
Bank of Montreal 4.338%, 10/05/28		480		506,256
Bank of Nova Scotia (The) 4.50%, 12/16/25		410		448,630
Barclays PLC 3.932%, 5/07/25		447		466,444
4.338%, 5/16/24		867		912,344
BBVA Bancomer SA/Texas 5.875%, 9/13/34(a)		330		334,455
BBVA USA 3.875%, 4/10/25		481		506,483
Capital One Bank USA NA 3.375%, 2/15/23		525		540,850
Capital One Financial Corp. 3.30%, 10/30/24		916		955,141
3.75%, 7/28/26		240		252,526

18    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Citigroup, Inc. 2.876%, 7/24/23	$	740	$	752,920
3.875%, 3/26/25		461		487,738
5.50%, 9/13/25		595		681,025
Citizens Financial Group, Inc. 4.30%, 12/03/25		895		964,434
Cooperatieve Rabobank UA 3.75%, 7/21/26		525		548,940
4.375%, 8/04/25		500		543,155
Credit Suisse Group Funding Guernsey Ltd. 4.55%, 4/17/26		405		448,088
Deutsche Bank AG/New York NY 3.30%, 11/16/22		334		335,065
3.95%, 2/27/23		635		649,065
Discover Bank 4.682%, 8/09/28		385		403,430
Discover Financial Services 3.75%, 3/04/25		795		843,638
Goldman Sachs Group, Inc. (The) 2.625%, 4/25/21		323		325,923
2.876%, 10/31/22		247		250,470
2.905%, 7/24/23		466		473,484
2.908%, 6/05/23		235		238,715
3.75%, 5/22/25		95		100,720
4.25%, 10/21/25		325		350,191
4.411%, 4/23/39		148		167,495
5.95%, 1/15/27		40		47,740
HSBC Holdings PLC 4.25%, 3/14/24-8/18/25		1,382		1,473,395
ING Bank NV 5.80%, 9/25/23(a)		440		490,314
Intesa Sanpaolo SpA 3.125%, 7/14/22(a)		245		246,615
Series XR 3.25%, 9/23/24(a)		650		652,392
JPMorgan Chase & Co. 3.882%, 7/24/38		1,057		1,163,990
8.00%, 4/29/27		530		707,979
Series FF 5.00%, 8/01/24(b)		175		180,896
Lloyds Banking Group PLC 4.45%, 5/08/25		233		255,126
4.50%, 11/04/24		1,187		1,268,274
M&T Bank Corp. Series G 5.00%, 8/01/24(b)		51		53,263

abfunds.com AB CORPORATE INCOME SHARES    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Morgan Stanley 5.75%, 1/25/21	$	1,260	$	1,316,826
Series F 3.875%, 4/29/24		55		58,650
Royal Bank of Scotland Group PLC 5.125%, 5/28/24		591		638,292
6.10%, 6/10/23		724		796,885
6.125%, 12/15/22		247		269,321
Santander Holdings USA, Inc. 3.40%, 1/18/23		859		879,521
3.50%, 6/07/24		195		200,448
4.40%, 7/13/27		280		300,628
4.50%, 7/17/25		577		621,596
Santander UK Group Holdings PLC 3.373%, 1/05/24		867		884,713
3.571%, 1/10/23		348		355,266
Societe Generale SA 4.25%, 4/14/25(a)		243		255,196
SunTrust Bank/Atlanta GA 3.20%, 4/01/24		230		240,010
3.30%, 5/15/26		934		977,169
Synchrony Bank 3.00%, 6/15/22		463		469,964
Wells Fargo & Co. 5.606%, 1/15/44		400		519,604
Series M 3.45%, 2/13/23		160		165,646
Westpac Banking Corp. 4.421%, 7/24/39		250		275,492
Series G 4.322%, 11/23/31		243		258,659
				32,287,386
Brokerage – 2.3%
Brookfield Finance, Inc. 4.00%, 4/01/24		122		129,879
Invesco Finance PLC 3.125%, 11/30/22		867		887,192
Jefferies Financial Group, Inc. 5.50%, 10/18/23		904		987,376
Jefferies Group LLC/Jefferies Group Capital Finance, Inc. 4.85%, 1/15/27		518		554,659
Stifel Financial Corp. 4.25%, 7/18/24		548		579,587
				3,138,693

20    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Finance – 3.3%
Aircastle Ltd. 4.125%, 5/01/24	$	107	$	112,082
4.40%, 9/25/23		867		912,596
Ares Capital Corp. 3.50%, 2/10/23		1,054		1,070,137
4.20%, 6/10/24		241		250,307
GE Capital International Funding Co. Unlimited Co. 4.418%, 11/15/35		275		290,928
International Lease Finance Corp. 5.875%, 8/15/22		867		949,122
Synchrony Financial 4.25%, 8/15/24		58		61,361
4.50%, 7/23/25		806		868,610
				4,515,143
Insurance – 1.5%
Aetna, Inc. 3.875%, 8/15/47		175		169,914
American International Group, Inc. 3.75%, 7/10/25		280		299,379
Brighthouse Financial, Inc. 3.70%, 6/22/27		450		441,895
MetLife Capital Trust IV 7.875%, 12/15/37(a)		150		199,134
MetLife, Inc. Series C 5.25%, 6/15/20(b)		205		208,061
Series D 5.875%, 3/15/28(b)		170		187,153
Peachtree Corners Funding Trust 3.976%, 2/15/25(a)		110		116,182
Prudential Financial, Inc. 5.20%, 3/15/44		112		119,181
5.625%, 6/15/43		149		161,610
5.875%, 9/15/42		235		254,557
				2,157,066
REITS – 10.6%
Alexandria Real Estate Equities, Inc. 3.45%, 4/30/25		87		91,637
American Homes 4 Rent LP 4.25%, 2/15/28		5		5,406
American Tower Corp. 5.00%, 2/15/24		375		414,982
Brixmor Operating Partnership LP 3.85%, 2/01/25		176		185,168

abfunds.com AB CORPORATE INCOME SHARES    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
EPR Properties 4.50%, 4/01/25	$	20	$	21,252
4.95%, 4/15/28		5		5,489
5.25%, 7/15/23		175		188,032
Equinix, Inc. 5.875%, 1/15/26		425		452,153
Essex Portfolio LP 3.25%, 5/01/23		231		237,496
3.375%, 1/15/23		125		128,894
3.875%, 5/01/24		84		89,190
GLP Capital LP/GLP Financing II, Inc. 5.25%, 6/01/25		323		354,819
5.375%, 11/01/23-4/15/26		971		1,061,062
HCP, Inc. 3.25%, 7/15/26		51		53,229
3.875%, 8/15/24		150		160,590
4.00%, 6/01/25		630		682,756
4.25%, 11/15/23		315		338,209
Host Hotels & Resorts LP 3.875%, 4/01/24		171		180,111
Series E 4.00%, 6/15/25		728		774,679
Kilroy Realty LP 3.45%, 12/15/24		40		41,690
Kimco Realty Corp. 2.80%, 10/01/26		95		95,881
LifeStorage LP/CA 3.50%, 7/01/26		1,090		1,125,730
Mid-America Apartments LP 3.75%, 6/15/24		115		121,080
National Retail Properties, Inc. 3.90%, 6/15/24		170		180,627
Omega Healthcare Investors, Inc. 4.50%, 1/15/25		108		114,883
5.25%, 1/15/26		1,208		1,338,887
Regency Centers LP 3.75%, 6/15/24		33		34,778
Sabra Health Care LP 5.125%, 8/15/26		565		612,048
Sabra Health Care LP/Sabra Capital Corp. 4.80%, 6/01/24		710		747,758
Senior Housing Properties Trust 4.75%, 2/15/28		407		416,389
Service Properties Trust 4.65%, 3/15/24		1,135		1,174,611
Simon Property Group LP 3.25%, 9/13/49		265		262,581

22    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Spirit Realty LP 4.00%, 7/15/29	$	132	$	139,847
4.45%, 9/15/26		238		255,714
VEREIT Operating Partnership LP 4.60%, 2/06/24		1,036		1,114,436
Vornado Realty LP 3.50%, 1/15/25		435		453,139
Washington Real Estate Investment Trust 4.95%, 10/01/20		140		141,394
Welltower, Inc. 4.00%, 6/01/25		519		561,049
Weyerhaeuser Co. 7.375%, 3/15/32		225		314,712
WP Carey, Inc. 4.60%, 4/01/24		44		47,092
				14,719,480
				56,817,768
Utility – 5.7%
Electric – 5.0%
Abu Dhabi National Energy Co. PJSC 4.375%, 4/23/25(a)		215		230,789
Dominion Energy, Inc. 3.90%, 10/01/25		110		118,477
DTE Energy Co. Series C 3.40%, 6/15/29		304		317,677
Duke Energy Carolinas LLC 3.20%, 8/15/49		192		193,638
Duke Energy Corp. 3.75%, 9/01/46		220		228,666
4.20%, 6/15/49		302		337,712
4.875%, 9/16/24(b)		112		118,385
Empresas Publicas de Medellin ESP 4.25%, 7/18/29(a)		200		208,735
Enel Americas SA 4.00%, 10/25/26		53		54,772
Enel Chile SA 4.875%, 6/12/28		62		68,588
Entergy Corp. 4.00%, 7/15/22		153		160,001
Exelon Corp. 3.497%, 6/01/22		94		96,676
Florida Power & Light Co. 3.95%, 3/01/48		460		534,989
Georgia Power Co. Series B 2.65%, 9/15/29		530		526,889

abfunds.com AB CORPORATE INCOME SHARES    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series C 2.00%, 9/08/20	$	575	$	575,109
NextEra Energy Capital Holdings, Inc. 5.65%, 5/01/79		194		213,868
PSEG Power LLC 3.00%, 6/15/21		160		162,046
8.625%, 4/15/31		388		547,332
Public Service Co. of New Hampshire 3.60%, 7/01/49		247		269,867
Sempra Energy 3.80%, 2/01/38		215		218,750
Southern Co. (The) 2.35%, 7/01/21		175		176,027
2.95%, 7/01/23		145		148,576
Southern Power Co. Series F 4.95%, 12/15/46		77		86,775
Southwestern Public Service Co. 3.75%, 6/15/49		305		335,942
Virginia Electric & Power Co. 8.875%, 11/15/38		558		940,548
				6,870,834
Natural Gas – 0.2%
CenterPoint Energy Resources Corp. 4.10%, 9/01/47		75		81,233
GNL Quintero SA 4.634%, 7/31/29(a)		200		211,300
NiSource, Inc. 5.65%, 2/01/45		60		77,995
				370,528
Other Utility – 0.5%
American Water Capital Corp. 3.75%, 9/01/47		80		86,332
4.15%, 6/01/49		496		572,890
				659,222
				7,900,584
Total Corporates – Investment Grade (cost $125,108,853)				132,064,113
QUASI-SOVEREIGNS – 1.0%
Quasi-Sovereign Bonds – 1.0%
Chile – 0.3%
Corp. Nacional del Cobre de Chile 3.625%, 8/01/27(a)		200		210,062
Empresa Nacional del Petroleo 3.75%, 8/05/26(a)		200		204,742
				414,804

24    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Mexico – 0.3%
Petroleos Mexicanos 6.50%, 1/23/29	$	240	$	250,320
6.75%, 9/21/47		140		139,348
7.69%, 1/23/50(a)		80		86,784
				476,452
Panama – 0.4%
Aeropuerto Internacional de Tocumen SA 5.625%, 5/18/36(a)		200		231,500
Empresa de Transmision Electrica SA 5.125%, 5/02/49(a)		246		281,132
				512,632
Total Quasi-Sovereigns (cost $1,288,659)				1,403,888
GOVERNMENTS – SOVEREIGN BONDS – 0.9%
Colombia – 0.2%
Colombia Government International Bond 5.20%, 5/15/49		200		240,875
Mexico – 0.3%
Mexico Government International Bond 4.60%, 1/23/46		200		214,250
4.75%, 3/08/44		150		163,969
				378,219
Qatar – 0.2%
Qatar Government International Bond 4.817%, 3/14/49(a)		228		280,440
Saudi Arabia – 0.2%
Saudi Government International Bond 3.25%, 10/26/26(a)		330		340,890
Total Governments – Sovereign Bonds (cost $1,091,667)				1,240,424
CORPORATES – NON-INVESTMENT GRADE – 0.1%
Industrial – 0.1%
Technology – 0.1%
Xerox Corp. 2.80%, 5/15/20 (cost $94,913)		95		94,914

abfunds.com AB CORPORATE INCOME SHARES    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
SHORT-TERM INVESTMENTS – 0.7%
U.S. Treasury Bills – 0.7%
U.S. Treasury Bill Zero Coupon, 1/30/20 (cost $1,031,075)	$	1,035	$	1,031,067
Total Investments – 98.3% (cost $128,615,167)				135,834,406
Other assets less liabilities – 1.7%				2,331,378
Net Assets – 100.0%			$	138,165,784

FUTURES (see Note C)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		68		December 2019	$	9,663,438	$	(86,860	)
U.S. Long Bond (CBT) Futures		3		December 2019		484,125		(10,434	)
U.S. T-Note 2 Yr (CBT) Futures		4		December 2019		862,406		(1,567	)
U.S. T-Note 10 Yr (CBT) Futures		6		December 2019		781,781		(8,727	)
U.S. Ultra Bond (CBT) Futures		14		December 2019		2,656,500		(79,537	)
Sold Contracts
U.S. T-Note 5 Yr (CBT) Futures		31		December 2019		3,695,297		29,530
							$	(157,595	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note C)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019	Notional Amount (000)		Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAIG Series 33, 5 Year Index, 12/20/24*		1.00	%		Quarterly	0.55%		USD  5,380	$	123,482	$	99,036	$	24,446

* Termination date

26    ^|    AB CORPORATE INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	1,170		9/09/21		1.132%		3 Month LIBOR		Semi-Annual/ Quarterly	$	11,410		$	—	$	11,410
USD	1,070		3/27/22		2.058%		3 Month LIBOR		Semi-Annual/ Quarterly		(12,855	)		—		(12,855	)
USD	60		11/04/44		3 Month LIBOR		3.049%		Quarterly/ Semi-Annual		16,324			—		16,324
USD	60		5/05/45		3 Month LIBOR		2.562%		Quarterly/ Semi-Annual		10,230			—		10,230
USD	60		6/02/46		3 Month LIBOR		2.186%		Quarterly/ Semi-Annual		5,475			—		5,475
USD	690		7/15/46		3 Month LIBOR		1.783%		Quarterly/ Semi-Annual		1,263			—		1,263
USD	270		9/02/46		3 Month LIBOR		1.736%		Quarterly/ Semi-Annual		(3,670	)		—		(3,670	)
USD	50		11/02/46		3 Month LIBOR		2.086%		Quarterly/ Semi-Annual		3,475			—		3,475
										$	31,652		$	—	$	31,652

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $10,756,140 or 7.8% of net assets.

(b) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

Glossary:

CBT – Chicago Board of Trade

CDX-NAIG – North American Investment Grade Credit Default Swap Index

LIBOR – London Interbank Offered Rates

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

See notes to financial statements.

abfunds.com AB CORPORATE INCOME SHARES    ^|    27

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019 (unaudited)

Assets
Investments in securities, at value (cost $128,615,167)	$	135,834,406
Cash		2,012,256
Cash collateral due from broker		413,507
Interest receivable		1,402,595
Receivable for shares of beneficial interest sold		464,532
Receivable for variation margin on futures		99,000
Receivable for variation margin on centrally cleared swaps		22,110
Total assets		140,248,406
Liabilities
Payable for investment securities purchased		1,440,296
Dividends payable		441,265
Payable for shares of beneficial interest redeemed		198,865
Other liabilities		2,196
Total liabilities		2,082,622
Net Assets	$	138,165,784
Composition of Net Assets
Shares of beneficial interest, at par	$	117
Additional paid-in capital		130,205,509
Distributable earnings		7,960,158
	$	138,165,784
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 11,715,194 common shares outstanding)	$	11.79

See notes to financial statements.

28    ^|    AB CORPORATE INCOME SHARES abfunds.com

STATEMENT OF OPERATIONS

Six Months Ended October 31, 2019 (unaudited)

Investment Income
Interest	$	2,481,879
Total investment income			$	2,481,879
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions				1,504,967
Futures				897,415
Swaps				34,132
Net change in unrealized appreciation/depreciation of:
Investments(a)				5,002,584
Futures				(195,325	)
Swaps				203,675
Net gain on investment transactions				7,447,448
Net Increase in Net Assets from Operations			$	9,929,327

(a) Net of increase in accrued foreign capital gains taxes of $780.

See notes to financial statements.

abfunds.com AB CORPORATE INCOME SHARES    ^|    29

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,481,879		$	3,598,990
Net realized gain (loss) on investment transactions		2,436,514			(1,603,725	)
Net change in unrealized appreciation/depreciation of investments		5,010,934			4,265,898
Net increase in net assets from operations		9,929,327			6,261,163
Distribution to Shareholders		(2,504,924	)		(3,601,284	)
Transactions in Shares of Beneficial Interest
Net increase		32,060,907			11,280,835
Total increase		39,485,310			13,940,714
Net Assets
Beginning of period		98,680,474			84,739,760
End of period	$	138,165,784		$	98,680,474

See notes to financial statements.

30    ^|    AB CORPORATE INCOME SHARES abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019 (unaudited)

NOTE A

Significant Accounting Policies

AB Corporate Shares (the “Trust”) was organized as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated January 26, 2004. The Trust is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Corporate Income Shares (the “Fund”).

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Trust’s Board of Trustees (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in

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NOTES TO FINANCIAL STATEMENTS (continued)

accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

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NOTES TO FINANCIAL STATEMENTS (continued)

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

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

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

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

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

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate

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NOTES TO FINANCIAL STATEMENTS (continued)

issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Investment Grade

$

– 0

–

$

132,064,113

$

– 0

–

$

132,064,113

Quasi-Sovereigns

– 0

–

1,403,888

– 0

–

1,403,888

Governments – Sovereign Bonds

– 0

–

1,240,424

– 0

–

1,240,424

Corporates – Non-Investment Grade

– 0

–

94,914

– 0

–

94,914

Short-Term Investments

– 0

–

1,031,067

– 0

–

1,031,067

Total Investments in Securities

– 0

–

135,834,406

– 0

–

135,834,406

Other Financial Instruments(a):

Assets:

Futures

29,530

– 0

–

– 0

–

29,530

(b)

Centrally Cleared Credit Default Swaps

– 0

–

123,482

– 0

–

123,482

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

48,177

– 0

–

48,177

(b)

Liabilities:

Futures

(187,125

)

– 0

–

– 0

–

(187,125

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(16,525

)

– 0

–

(16,525

)(b)

Total

$

(157,595

)

$

135,989,540

$

– 0

–

$

135,831,945

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

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

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NOTES TO FINANCIAL STATEMENTS (continued)

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and

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NOTES TO FINANCIAL STATEMENTS (continued)

dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2019 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	61,467,291		$	29,753,364
U.S. government securities		– 0	–		– 0	–

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NOTES TO FINANCIAL STATEMENTS (continued)

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	7,451,483
Gross unrealized depreciation		(333,741	)
Net unrealized appreciation	$	7,117,742

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

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NOTES TO FINANCIAL STATEMENTS (continued)

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the six months ended October 31, 2019, the Fund held futures for hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized

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NOTES TO FINANCIAL STATEMENTS (continued)

gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of

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NOTES TO FINANCIAL STATEMENTS (continued)

its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the six months ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments

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NOTES TO FINANCIAL STATEMENTS (continued)

previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the six months ended October 31, 2019, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

abfunds.com AB CORPORATE INCOME SHARES    ^|    41

NOTES TO FINANCIAL STATEMENTS (continued)

During the six months ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	29,530	*	Receivable/Payable for variation margin on futures	$	187,125	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		24,446	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		48,177	*	Receivable/Payable for variation margin on centrally cleared swaps		16,525	*
Total		$	102,153			$	203,650

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives		Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	897,415	$	(195,325	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		7,935		179,326
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		26,197		24,349
Total		$	931,547	$	8,350

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended October 31, 2019:

Futures:
Average notional amount of buy contracts	$	10,997,664
Average notional amount of sale contracts	$	2,878,295
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	3,430,000
Credit Default Swaps:
Average notional amount of sale contracts	$	33,934	(a)
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	3,694,000	(b)

(a) Positions were open for two months during the period.

(b) Positions were open for five months during the period.

NOTE D

Shares of Beneficial Interest

Transactions in shares of beneficial interest were as follows:

	Shares						Amount
	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019			Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Shares sold		3,493,101			3,322,790		$	39,649,779		$	35,696,079
Shares redeemed		(656,903	)		(2,282,342	)		(7,588,872	)		(24,415,244	)
Net increase		2,836,198			1,040,448		$	32,060,907		$	11,280,835

NOTE E

Risks Involved in Investing in the Fund

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 any 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.

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an

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NOTES TO FINANCIAL STATEMENTS (continued)

alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE F

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the six months ended October 31, 2019.

NOTE G

Distributions to Shareholders

The tax character of distributions to be paid for the year ending April 30, 2020 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended April 30, 2019 and April 30, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	3,601,284	$	2,860,509
Total distributions paid	$	3,601,284	$	2,860,509

As of April 30, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	411,789
Accumulated capital and other losses		(1,595,243	)(a)
Unrealized appreciation/(depreciation)		2,055,522	(b)
Total accumulated earnings/(deficit)	$	872,068	(c)

(a) As of April 30, 2019, the Fund had a net capital loss carryforward of $1,595,243.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of swaps, and the tax deferral of losses on wash sales.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax and dividends payable.

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NOTES TO FINANCIAL STATEMENTS (continued)

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2019, the Fund had a net short-term capital loss carryforward of $226,600 and a net long-term capital loss carryforward of $1,368,643, which may be carried forward for an indefinite period.

NOTE H

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE I

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period		$  11.11			$  10.81			$  11.14			$  11.19			$  11.36			$  11.13
Income From Investment Operations
Net investment income(a)		.23			.44			.39			.38			.39			.43
Net realized and unrealized gain (loss) on investment transactions		.68			.30			(.33	)		(.04	)		(.16	)		.22
Net increase in net asset value from operations		.91			.74			.06			.34			.23			.65
Less: Dividends
Dividends from net investment income		(.23	)		(.44	)		(.39	)		(.39	)		(.40	)		(.42	)
Net asset value, end of period		$  11.79			$  11.11			$  10.81			$  11.14			$  11.19			$  11.36
Total Return
Total investment return based on net asset value(b)*		8.24	%		7.03	%		.50	%		3.08	%		2.12	%		5.94	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$138,166			$98,680			$84,740			$74,191			$63,342			$44,939
Ratio to average net assets of:
Net investment income		3.91	%^		4.06	%		3.47	%		3.43	%		3.60	%		3.76	%
Portfolio turnover rate		25	%		140	%		73	%		79	%		59	%		42	%

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended April 30, 2017 and April 30, 2015 by .01% and .01%, respectively.

^ Annualized.

See notes to financial statements.

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BOARD OF TRUSTEES

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Shawn E. Keegan⁽²⁾, Vice President Tiffanie Wong⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105	Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036
Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Trust’s Portfolio are made by the Corporate Income Shares Investment Team. Mr. Keegan and Ms. Wong are the investment professionals primarily responsible for the day-to-day management of the Trust’s Portfolio.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Corporate Income Shares (the “Fund”) at a meeting held on November 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

abfunds.com AB CORPORATE INCOME SHARES    ^|    49

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors

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noted that the Fund was not profitable to the Adviser in 2016. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund in 2017 was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, and their discussion with the Adviser of the reasons for the Fund’s underperformance in certain periods, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider showing the fees payable by other fund families used in wrap fee programs similar to that of the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The

abfunds.com AB CORPORATE INCOME SHARES    ^|    51

directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

Economies of Scale

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY (continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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NOTES

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AB CORPORATE INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

CIS-0152-1019                

OCT    ^10.31.19

SEMI-ANNUAL REPORT

AB MUNICIPAL INCOME SHARES

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

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

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Municipal Income Shares (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    1

SEMI-ANNUAL REPORT

December 18, 2019

This report provides management’s discussion of fund performance for AB Municipal Income Shares for the semi-annual reporting period ended October 31, 2019. Please note, shares of this Fund are available only to separately managed accounts or participants in “wrap fee” programs or other investment programs approved by the Adviser.

The investment objective of the Fund is to earn the highest level of current income, exempt from federal taxation, that is available consistent with what the Adviser considers to be an appropriate level of risk.

NAV RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	6 Months		12 Months
AB MUNICIPAL INCOME SHARES		5.09%		12.44%
Bloomberg Barclays Municipal Bond Index		3.54%		9.42%

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays Municipal Bond Index, for the six- and 12-month periods ended October 31, 2019.

The Fund outperformed the benchmark for both periods. The Fund is generally used to provide exposure to lower-rated municipal bonds within separately managed account strategies. Therefore, the Fund is overweight lower-rated (non-investment grade) bonds relative to the benchmark, which is fully composed of investment-grade bonds. This overweight was beneficial over both periods.

During both periods, being overweight longer duration municipal bonds contributed to performance, relative to the benchmark, while being underweight four- to five-year duration municipals detracted. Security selection within the state general obligation (“GO”) bond sector contributed, while selection in toll roads/transit detracted.

The Fund utilized derivatives in the form of inflation swaps for hedging purposes, which detracted from absolute performance for the six-month period and had no material impact for the 12-month period. Interest rate swaps were utilized for hedging purposes and had no material impact for both periods.

MARKET REVIEW AND INVESTMENT STRATEGY

Falling interest rates and a flattening of the yield curve were prominent themes throughout the six- and 12-month periods ended October 31, 2019.

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The yield for the 10-year US Treasury fell roughly 0.4% over the six-month period and almost 1.5% over the 12-month period. The US Federal Reserve (“the Fed”) cut interest rates three times in 2019, taking the target for the Federal Funds rate down by 0.75% this year. The newly imposed limit on state and local tax deductions resulted in increased demand for municipals and municipal supply continues to be light. Lipper reported that municipal mutual funds had $75 billion of inflows through October 30, while the Fed reported that the outstanding volume of municipal bonds shrunk by $17 billion through the second quarter of 2019.

Long-maturity and high-yield municipal bonds were the best performers during both periods, reflective of investors’ demand for additional income in the recent low-yield environment. Given the Fund’s role within separately managed account strategies, the Fund maintained an overweight to both long-maturity and high-yield bonds and these overweights benefited performance.

The Fund’s Senior Investment Management Team relies on an investment process that combines quantitative and fundamental research to build effective municipal bond portfolios.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 3.18% and 0.05%, respectively.

INVESTMENT POLICIES

The Fund pursues its objective by investing principally in high-yielding municipal securities that may be non-investment grade or investment-grade. As a matter of fundamental policy, the Fund invests, under normal circumstances, at least 80% of its net assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.

(continued on next page)

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    3

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risk and return characteristics as well as the securities’ impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may invest without limit in lower-rated securities (“junk bonds”), which may include securities having the lowest rating, and in unrated securities that, in the Adviser’s judgment, would be lower-rated securities if rated. The Fund may invest in fixed-income securities with any maturity or duration. The Fund will seek to increase income for shareholders by investing in longer maturity bonds. Consistent with its objective of seeking a higher level of income, the Fund may experience greater volatility and a higher risk of loss of principal than other municipal funds.

The Fund may also invest in tender option bond transactions (“TOBs”); 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.

The Fund may make short sales of securities or maintain a short position, and may use other investment techniques. The Fund may use leverage for investment purposes to increase income through the use of TOBs and derivative instruments, such as interest rate swaps.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund. The Bloomberg Barclays Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any 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.

Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    5

DISCLOSURES AND RISKS (continued)

Tax Risk: There is no guarantee that all of the Fund’s income will remain exempt from federal or state income taxes. From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value (“NAV”) could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax-exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Leverage Risk: To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to

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DISCLOSURES AND RISKS (continued)

purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    7

HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	NAV Returns
1 Year		12.44%
5 Years		5.93%
Since Inception1		6.83%

AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2019 (unaudited)

	NAV Returns
1 Year		11.15%
5 Years		6.17%
Since Inception1		6.89%

The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.01% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.

1 Inception date: 9/1/2010.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*		Annualized Expense Ratio*
Actual	$	1,000	$	1,050.90	$	0.02		0.00	%
Hypothetical**	$	1,000	$	1,025.12	$	0.02		0.00	%

* Expenses are equal to the Fund’s annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    9

PORTFOLIO SUMMARY

October 31, 2019 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $4,191.8

1 All data are as of October 31, 2019. The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

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PORTFOLIO OF INVESTMENTS

October 31, 2019 (unaudited)

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 98.8%
Long-Term Municipal Bonds – 98.3%
Alabama – 3.7%
County of Jefferson AL Series 2018A 5.00%, 4/01/23-4/01/24	$	5,125	$	5,816,839
County of Jefferson AL Sewer Revenue Series 2013D 6.00%, 10/01/42		11,645		13,804,915
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016A 5.00%, 2/01/36-2/01/41		10,000		11,387,700
Jefferson County Board of Education/AL Series 2018 5.00%, 2/01/39-2/01/46		28,280		33,448,047
Lower Alabama Gas District (The) (Goldman Sachs Group, Inc. (The)) Series 2016A 5.00%, 9/01/46		10,000		14,120,700
Southeast Alabama Gas Supply District (The) (Goldman Sachs Group, Inc. (The)) Series 2018A 4.00%, 4/01/49		13,350		14,402,113
Special Care Facilities Financing Authority of the City of Pell City Alabama (Noland Health Services, Inc.) Series 2012 5.00%, 12/01/31		3,000		3,198,540
Special Care Facilities Financing Authority of the City of Pell City Alabama (Noland Obligated Group) Series 2016A 5.00%, 12/01/31		10,000		10,661,800
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019A 5.25%, 5/01/44(a)		38,735		44,574,688
Water Works Board of the City of Birmingham (The) Series 2016B 5.00%, 1/01/33		3,500		4,207,490
				155,622,832

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Alaska – 0.2%
State of Alaska International Airports System Series 2016B 5.00%, 10/01/33-10/01/34	$	9,000	$	10,535,390
American Samoa – 0.3%
American Samoa Economic Development Authority (Territory of American Samoa) 7.125%, 9/01/38(a)		8,315		9,339,491
Series 2015A
6.625%, 9/01/35		3,235		3,461,256
				12,800,747
Arizona – 1.2%
Arizona Industrial Development Authority Series 20192 – Class A 3.625%, 5/20/33		7,930		8,769,152
Arizona Industrial Development Authority (North Carolina Central University Project) BAM 5.00%, 6/01/49-6/01/54		4,285		5,053,326
Arizona Industrial Development Authority (Provident Group – EMU Properties LLC) Series 2018 5.00%, 5/01/51		1,100		1,249,919
Arizona Sports & Tourism Authority Series 2012A 5.00%, 7/01/29		3,670		3,923,634
Glendale Industrial Development Authority (Beatitudes Campus Obligated Group (The)) Series 2017 5.00%, 11/15/36		1,000		1,080,730
Glendale Industrial Development Authority (Royal Oaks Life Care Community) Series 2016 5.00%, 5/15/39		2,700		3,051,081
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona) Series 2014 5.00%, 7/01/44		3,875		4,189,495
Maricopa County Industrial Development Authority (Benjamin Franklin Charter School Ltd.) Series 2018A 6.00%, 7/01/52(a)		18,500		21,043,565

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Quechan Indian Tribe of Fort Yuma Series 2012A 9.75%, 5/01/25	$	70	$	76,567
Salt Verde Financial Corp. (Citigroup, Inc.) Series 2007 5.00%, 12/01/37		150		201,681
Tempe Industrial Development Authority (Friendship Village of Tempe) 5.00%, 12/01/54		1,185		1,303,607
Tempe Industrial Development Authority (Mirabella at ASU, Inc.) Series 2017A 6.125%, 10/01/47(a)		1,065		1,214,771
				51,157,528
Arkansas – 0.3%
Arkansas Development Finance Authority (Big River Steel LLC) 4.50%, 9/01/49(a)		10,000		10,628,100
California – 6.1%
Abag Finance Authority for Nonprofit Corps. (Episcopal Senior Communities) Series 2011 6.125%, 7/01/41		100		106,820
Alameda Corridor Transportation Authority Series 2016B 5.00%, 10/01/34-10/01/37		26,130		30,639,397
Anaheim Public Financing Authority (City of Anaheim CA Lease) Series 2014A 5.00%, 5/01/31		1,460		1,692,695
Bay Area Toll Authority Series 2013S 5.00%, 4/01/27 (Pre-refunded/ETM)		1,000		1,133,340
California Educational Facilities Authority (Chapman University) Series 2015 5.00%, 4/01/33-4/01/34		8,210		9,657,911
California Educational Facilities Authority (University of the Pacific) Series 2012A 5.00%, 11/01/42		100		107,013
California Health Facilities Financing Authority (Children’s Hospital Los Angeles) Series 2017A 5.00%, 8/15/37		1,700		2,028,576

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    13

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California Health Facilities Financing Authority (Sutter Health Obligated Group) Series 2018A 5.00%, 11/15/37-11/15/38	$	6,150	$	7,553,978
California Municipal Finance Authority Series 2011B 7.75%, 4/01/31 (Pre-refunded/ETM)(a)		85		92,149
California Municipal Finance Authority (CHF-Riverside II LLC) 5.00%, 5/15/39-5/15/40		3,030		3,687,319
California Municipal Finance Authority (Goodwill Industries of Sacramento Valley & Northern Nevada, Inc.) Series 2012A 6.625%, 1/01/32(a)		1,000		1,052,640
Series 2014 5.00%, 1/01/35		1,085		1,094,244
California Municipal Finance Authority (LAX Integrated Express Solutions LLC) Series 2018A 5.00%, 12/31/43		3,625		4,241,395
California Municipal Finance Authority (Partnerships to Uplift Communities Lakeview Terrace and Los Angeles Project) Series 2012A 5.30%, 8/01/47		1,025		1,073,052
California Municipal Finance Authority (Rocketship Education Obligated Group) Series 2014A 7.00%, 6/01/34		1,200		1,332,660
7.25%, 6/01/43		2,075		2,309,994
California Municipal Finance Authority (Rocketship Seven-Alma Academy) Series 2012A 6.25%, 6/01/43		725		769,341
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/45(a)		6,405		6,824,592
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) 7.50%, 12/01/40(a)		785		816,855
California School Finance Authority (Equitas Academy Obligated Group) Series 2018A 5.00%, 6/01/56(a)		8,850		9,732,610

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California School Finance Authority (Partnerships to Uplift Communities Valley Project) Series 2014A 6.40%, 8/01/34(a)	$	3,000	$	3,363,840
California School Finance Authority (Tri-Valley Learning Corp.) Series 2012A 7.00%, 6/01/47(b)(c)(d)		730		14,600
California Statewide Communities Development Authority (Eskaton Properties, Inc. Obligated Group) Series 2012 5.25%, 11/15/34		530		576,666
California Statewide Communities Development Authority (Loma Linda University Medical Center) 5.25%, 12/01/48(a)		6,440		7,470,786
Series 2016A 5.00%, 12/01/41(a)		6,160		6,910,596
Series 2018A 5.50%, 12/01/58(a)		3,775		4,426,640
California Statewide Communities Development Authority (Moldaw Residences) Series 2014A 5.25%, 11/01/44(a)		1,200		1,321,380
California Statewide Communities Development Authority (Rocketship Four-Mosaic Elementary) Series 2011A 8.50%, 12/01/41		100		110,491
California Statewide Communities Development Authority (Rocklin Academy (The)) Series 2011A 8.25%, 6/01/41		140		151,467
California Statewide Communities Development Authority (Terraces at San Joaquin Gardens (The)) Series 2012A 6.00%, 10/01/47		250		280,905
City of Roseville CA (HP Campus Oaks Community Facilities District No. 1) Series 2016 5.50%, 9/01/46		1,000		1,155,880

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of San Buenaventura CA (Community Memorial Health System) Series 2011 7.50%, 12/01/41	$	100	$	110,502
Golden State Tobacco Securitization Corp. Series 2018A 5.00%, 6/01/47		82,290		84,586,714
5.25%, 6/01/47		2,400		2,476,800
M-S-R Energy Authority (Citigroup, Inc.) Series 2009B 6.50%, 11/01/39		9,370		14,667,517
Municipal Improvement Corp. of Los Angeles (City of Los Angeles CA Lease) Series 2016B 4.00%, 11/01/36		2,705		3,027,788
Oakland Unified School District/Alameda County Series 2015A 5.00%, 8/01/30-8/01/40		6,215		7,270,136
Palomar Health (Palomar Health Obligated Group) Series 2016 5.00%, 11/01/39		3,990		4,551,792
Series 2017 5.00%, 11/01/42		3,375		3,906,326
San Francisco City & County Redevelopment Agency Successor Agency (Mission Bay South Public Imp) Series 2013A 5.00%, 8/01/31		1,000		1,081,010
San Joaquin Hills Transportation Corridor Agency Series 2014A 5.00%, 1/15/44		1,450		1,644,764
Series 2014B 5.25%, 1/15/44		1,000		1,130,260
Southern California Logistics Airport Authority XLCA Series 2006 5.00%, 12/01/36-12/01/43		1,685		1,685,515
State of California Series 2016 4.00%, 9/01/34-9/01/35		10,000		11,310,150
Tobacco Securitization Authority of Southern California Zero Coupon, 6/01/54(e)		10,480		1,598,410

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
University of California CA Revenues 5.00%, 5/15/33(f)	$	1,000	$	1,126,860
West Contra Costa Healthcare District Series 2011 6.25%, 7/01/42 (Pre-refunded/ETM)		3,375		3,658,635
				255,563,011
Colorado – 1.9%
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/37(a)		5,000		5,310,550
City & County of Denver CO (United Airlines, Inc.) Series 2017 5.00%, 10/01/32		645		705,404
Colorado Health Facilities Authority Series 2012 5.00%, 12/01/42 (Pre-refunded/ETM)		2,910		3,187,992
Series 2013 5.25%, 1/01/40 (Pre-refunded/ETM)		5,910		6,633,857
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019A 4.00%, 8/01/37-8/01/38		3,960		4,328,677
5.00%, 8/01/44		41,965		49,610,603
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015B 5.00%, 9/01/30		1,150		1,338,888
Colorado Health Facilities Authority (Sunny Vista Living Center) Series 2015A 6.25%, 12/01/50(a)		1,000		1,068,530
Copperleaf Metropolitan District No. 2 Series 2015 5.75%, 12/01/45		1,000		1,047,490
E-470 Public Highway Authority Series 2010C 5.375%, 9/01/26		1,000		1,031,760
Plaza Metropolitan District No. 1 Series 2013 5.00%, 12/01/40(a)		1,500		1,570,425
Sterling Ranch Community Authority Board (Sterling Ranch Metropolitan District No. 2) Series 2015A 5.75%, 12/01/45		1,000		1,044,890

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Sterling Ranch Community Authority Board (Sterling Ranch Metropolitan District No. 3) Series 2017A 5.00%, 12/01/38-12/01/47	$	2,000	$	2,078,300
				78,957,366
Connecticut – 3.0%
Connecticut State Health & Educational Facilities Authority (Quinnipiac University) Series 2015L 5.00%, 7/01/45		5,750		6,500,317
Connecticut State Health & Educational Facilities Authority (Sacred Heart University, Inc.) Series 2017I-1 5.00%, 7/01/35-7/01/37		2,095		2,508,301
Connecticut State Health & Educational Facilities Authority (Seabury Retirement Community) Series 2016A 5.00%, 9/01/46-9/01/53(a)		2,475		2,687,320
Connecticut State Health & Educational Facilities Authority (University of New Haven, Inc.) Series 2018K-1 5.00%, 7/01/35-7/01/38		5,245		6,158,338
State of Connecticut Series 2013A 5.00%, 10/15/24		5,000		5,679,450
Series 2013E 5.00%, 8/15/31(f)		1,000		1,115,210
Series 2015F 5.00%, 11/15/25-11/15/32		7,070		8,370,511
Series 2016A 5.00%, 3/15/32		8,165		9,613,063
Series 2016E 5.00%, 10/15/28-10/15/34		12,845		15,392,984
Series 2016F 5.00%, 10/15/31		10,205		12,183,137
Series 2017A 5.00%, 4/15/29-4/15/34		26,125		31,475,296
Series 2018A 5.00%, 4/15/34-4/15/37		7,930		9,665,518
Series 2018C 5.00%, 6/15/31-6/15/38		7,490		9,190,293
Series 2018E 5.00%, 9/15/37		1,035		1,260,723

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Connecticut Special Tax Revenue Series 2012 5.00%, 1/01/31	$	5,000	$	5,505,650
				127,306,111
Delaware – 0.1%
Delaware State Economic Development Authority (Delaware Military Academy, Inc.) Series 2014 5.00%, 9/01/44-9/01/49		2,440		2,639,956
Delaware State Economic Development Authority (Newark Charter School, Inc.) Series 2012 5.00%, 9/01/42		1,310		1,380,897
				4,020,853
District of Columbia – 0.7%
District of Columbia (Freedom Forum, Inc. (The)) NATL 5.00%, 8/01/38(g)		14,075		14,075,000
5.15%, 8/01/38(g)		600		600,000
NATL Series 2002B 5.15%, 8/01/37(g)		250		254,063
District of Columbia (Friendship Public Charter School, Inc.) Series 2012 5.00%, 6/01/42		1,420		1,511,008
Series 2016A 5.00%, 6/01/41-6/01/46		1,900		2,138,043
District of Columbia (KIPP DC Obligated Group) Series 2017A 5.00%, 7/01/42-7/01/48		8,580		9,996,960
Series 2017B 5.00%, 7/01/37		1,465		1,732,743
Metropolitan Washington Airports Authority Series 2016A 5.00%, 10/01/35		500		590,555
				30,898,372
Florida – 4.8%
Alachua County Health Facilities Authority (Oak Hammock at the University of Florida, Inc.) Series 2012A 8.00%, 10/01/46		435		489,671

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Alachua County Health Facilities Authority (Shands Teaching Hospital & Clinics Obligated Group) Series 2014A 5.00%, 12/01/44	$	1,000	$	1,123,480
Bexley Community Development District Series 2016 4.875%, 5/01/47		1,000		1,039,150
Cape Coral Health Facilities Authority (Gulf Care, Inc.) Series 2015 5.875%, 7/01/40(a)		1,400		1,522,794
6.00%, 7/01/45-7/01/50(a)		4,015		4,372,226
Capital Trust Agency, Inc. (Aviva Senior Life) Series 2017 5.00%, 7/01/46(a)		1,300		1,382,316
Capital Trust Agency, Inc. (Provision Cares Proton Therapy Center – Orlando) Series 2018A 7.50%, 6/01/48(a)		5,820		6,356,953
City of Lakeland FL (Florida Southern College) Series 2012A 5.00%, 9/01/37-9/01/42		2,350		2,500,035
City of Lakeland FL (Lakeland Regional Health Systems Obligated Group) Series 2015 5.00%, 11/15/40		5,610		6,332,961
City Of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 8/15/37-8/15/47		14,530		17,237,116
County of Miami-Dade FL Aviation Revenue Series 2014A 5.00%, 10/01/33		10,000		11,413,700
Series 2015A 5.00%, 10/01/31		1,100		1,281,280
County of Palm Beach FL (Provident Group-PBAU Properties LLC) 5.00%, 4/01/39-4/01/51(a)		4,030		4,453,054

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Florida Development Finance Corp. (Virgin Trains USA Florida LLC) 6.375%, 1/01/49(a)	$	35,770	$	33,802,650
Florida Development Finance Corp. (Waste Pro USA, Inc.) 5.00%, 5/01/29(a)		640		705,005
Florida Higher Educational Facilities Financial Authority (Florida Institute of Technology, Inc.) 4.00%, 10/01/37		1,000		1,065,540
Florida Higher Educational Facilities Financial Authority (Ringling College of Art & Design, Inc.) 5.00%, 3/01/44-3/01/49		3,380		3,981,701
Greater Orlando Aviation Authority Series 2017A 5.00%, 10/01/34-10/01/36		9,650		11,555,186
Lakewood Ranch Stewardship District Series 2018 5.30%, 5/01/39		1,000		1,116,160
5.45%, 5/01/48		1,525		1,684,622
Manatee County School District (Manatee County School District Sales Tax) AGM Series 2017 5.00%, 10/01/30		2,700		3,304,125
Marshall Creek Community Development District (Marshall Creek Community Development District 2015A) Series 2015A 5.00%, 5/01/32		1,655		1,716,864
Martin County Health Facilities Authority Series 2012 5.50%, 11/15/32 (Pre-refunded/ETM)		600		650,712
5.50%, 11/15/42 (Pre-refunded/ETM)		1,350		1,464,102
Martin County Industrial Development Authority (Indiantown Cogeneration LP) Series 2013 4.20%, 12/15/25(a)		1,150		1,164,962
Miami Beach Health Facilities Authority (Mount Sinai Medical Center of Florida, Inc.) Series 2012 5.00%, 11/15/29		2,885		3,164,181
Series 2014 5.00%, 11/15/39		2,000		2,243,780

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Miami-Dade County Expressway Authority Series 2014A 5.00%, 7/01/34	$	4,000	$	4,524,240
Mid-Bay Bridge Authority Series 2015A 5.00%, 10/01/28-10/01/40		3,600		4,110,384
Series 2015C 5.00%, 10/01/35-10/01/40		2,750		3,102,532
North Broward Hospital District Series 2017B 5.00%, 1/01/37-1/01/48		21,590		24,463,736
Pinellas County Industrial Development Authority 5.00%, 7/01/39		1,955		2,268,230
Town of Davie FL (Nova Southeastern University, Inc.) Series 2013A 5.625%, 4/01/43		3,765		4,173,164
Series 2018 5.00%, 4/01/48		24,650		28,690,135
Volusia County School Board (Volusia County School Board COP) Series 2014B 5.00%, 8/01/31		1,625		1,865,890
				200,322,637
Georgia – 2.5%
Cedartown Polk County Hospital Authority (Floyd Obligated Group) Series 2016 5.00%, 7/01/39		4,000		4,580,640
City of Atlanta GA Department of Aviation (Hartsfield Jackson Atlanta Intl Airport) Series 2012A 5.00%, 1/01/31		1,390		1,497,517
Series 2014A 5.00%, 1/01/33		1,820		2,063,789
Clarke County Hospital Authority (Piedmont Healthcare, Inc. Obligated Group) Series 2016 5.00%, 7/01/31		2,500		2,991,775
Development Authority for Fulton County (Piedmont Healthcare, Inc. Obligated Group) Series 2016A 5.00%, 7/01/32		2,000		2,386,080

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Development Authority of Gwinnett County (Board of Regents of the University System of Georgia Lease) Series 2017A 5.00%, 7/01/32-7/01/37	$	10,855	$	13,106,643
Fayette County Hospital Authority/GA (Piedmont Healthcare, Inc. Obligated Group) Series 2016 5.00%, 7/01/34-7/01/36		10,710		12,676,497
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health System Obligated Group) Series 2017 5.00%, 8/01/43-8/01/47		12,680		14,668,815
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018A 4.00%, 4/01/48		16,200		17,513,010
Series 2018C 4.00%, 8/01/48		12,245		13,285,948
Municipal Electric Authority of Georgia 5.00%, 1/01/38-1/01/59		16,960		19,539,681
				104,310,395
Guam – 1.2%
Territory of Guam 5.00%, 11/15/31		2,310		2,703,254
Territory of Guam (Guam Section 30 Income Tax) Series 2016A 5.00%, 12/01/29-12/01/32		9,015		10,368,059
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2011A 5.125%, 1/01/42		6,420		6,709,735
Series 2015D 5.00%, 11/15/32-11/15/35		25,505		28,650,253
				48,431,301
Idaho – 0.0%
Idaho Housing & Finance Association (Battelle Energy Alliance LLC) Series 2010A 7.00%, 2/01/36		200		211,800
Illinois – 9.6%
Chicago Board of Education Series 2012A 5.00%, 12/01/42		5,630		5,931,486

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2015C 5.25%, 12/01/35-12/01/39	$	10,315	$	11,351,492
Series 2015E 5.125%, 12/01/32		1,000		1,105,670
Series 2016A 7.00%, 12/01/44		1,400		1,701,014
Series 2016B 6.50%, 12/01/46		1,900		2,290,222
Series 2017G 5.00%, 12/01/34		4,150		4,730,211
Series 2017H 5.00%, 12/01/36-12/01/46		5,795		6,475,312
Series 2018A 5.00%, 12/01/26-12/01/28		17,705		20,565,419
Series 2019A 5.00%, 12/01/29-12/01/30		6,070		7,175,137
Series 2019B 5.00%, 12/01/30-12/01/33		3,100		3,637,722
Chicago O’Hare International Airport Series 2015C 5.00%, 1/01/34		1,665		1,894,653
Series 2016B 5.00%, 1/01/34		5,000		5,877,800
Series 2016C 5.00%, 1/01/35-1/01/38		9,250		10,792,308
Series 2017B 5.00%, 1/01/35-1/01/37		33,445		39,829,687
Chicago O’Hare International Airport (TrIPs Obligated Group) Series 2018 5.00%, 7/01/33-7/01/48		7,145		8,360,324
Chicago Transit Authority (Chicago Transit Authority Sales Tax) Series 2011 5.25%, 12/01/23		4,285		4,614,731
City of Chicago IL (Goldblatts Supportive Living Project) Series 2013 6.375%, 12/01/52(h)		1,050		904,764
Illinois Finance Authority (Ascension Health Credit Group) Series 2016C 5.00%, 2/15/41		2,835		3,330,274
Illinois Finance Authority (Illinois Institute of Technology) Series 2006A 5.00%, 4/01/36		365		366,051

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (Lake Forest College) Series 2012A 6.00%, 10/01/48	$	400	$	429,400
Illinois Finance Authority (Lutheran Home & Services Obligated Group) Series 2012 5.75%, 5/15/46		2,495		2,582,649
Illinois Finance Authority (Mercy Health Corp.) Series 2016 5.00%, 12/01/40-12/01/46		3,900		4,459,904
Illinois Finance Authority (OSF Healthcare System Obligated Group) Series 2015A 5.00%, 11/15/45		4,295		4,811,431
Illinois Finance Authority (Park Place of Elmhurst Obligated Group) Series 2016A 6.20%, 5/15/30		1,079		960,756
6.33%, 5/15/48		829		731,604
6.44%, 5/15/55		1,998		1,761,615
Series 2016C 2.00%, 5/15/55(b)(c)(h)		609		18,386
Illinois Finance Authority (Plymouth Place, Inc.) Series 2013 6.00%, 5/15/43		3,500		3,785,705
Series 2015 5.25%, 5/15/50		2,000		2,130,060
Illinois Finance Authority (Rosalind Franklin University of Medicine & Science) Series 2017A 5.00%, 8/01/42-8/01/47		3,000		3,390,640
Series 2017C 5.00%, 8/01/46		1,000		1,128,940
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015C 5.00%, 8/15/35		4,750		5,393,957
Illinois Municipal Electric Agency Series 2015A 5.00%, 2/01/22		6,700		7,237,608

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois State Toll Highway Authority Series 2015A 5.00%, 1/01/31-1/01/32	$	3,125	$	3,659,198
Series 2015B
5.00%, 1/01/36-1/01/40		5,250		6,088,037
Series 2016A 5.00%, 12/01/32		7,000		8,203,440
Series 2016B 5.00%, 1/01/41		3,450		4,015,351
Metropolitan Pier & Exposition Authority Series 2012 Zero Coupon, 12/15/51		11,385		3,349,125
Series 2015B 5.00%, 12/15/45		13,300		14,461,622
Series 2017B Zero Coupon, 12/15/54		9,850		2,509,288
State of Illinois Series 2012 5.00%, 8/01/25		1,300		1,385,631
Series 2014 5.00%, 5/01/23-5/01/31		14,800		16,122,828
Series 2016 5.00%, 1/01/22-11/01/35		40,770		45,554,451
Series 2017A 5.00%, 12/01/25-12/01/34		14,795		16,906,637
Series 2017D 5.00%, 11/01/24-11/01/28		61,270		69,317,560
Series 2018A 5.00%, 10/01/27-5/01/30		12,675		14,634,796
Series 2018B 5.00%, 10/01/26		5,000		5,730,350
Village of Antioch IL Special Service Areas No. 1 & 2 Series 2016A 4.50%, 3/01/33		3,942		4,008,975
Series 2016B 7.00%, 3/01/33		1,762		1,789,840
Village of Pingree Grove IL Special Service Area No. 7 Series 2015A 4.50%, 3/01/25		866		899,705
5.00%, 3/01/36		2,963		3,135,713
Series 2015B 6.00%, 3/01/36		943		1,019,440
				402,548,919

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Indiana – 1.0%
Indiana Finance Authority (Baptist Healthcare System Obligated Group) Series 2017 5.00%, 8/15/51	$	3,905	$	4,469,273
Indiana Finance Authority (Bethany Circle of King’s Daughters’ of Madison Indiana, Inc. (The)) Series 2010 5.125%, 8/15/27		1,000		1,025,620
5.50%, 8/15/40-8/15/45		3,020		3,104,648
Indiana Finance Authority (Marquette Manor) Series 2015A 5.00%, 3/01/30		1,000		1,109,070
Indiana Finance Authority (Ohio River Bridges) Series 2013A 5.00%, 7/01/40-7/01/48		6,980		7,595,546
Indiana Finance Authority (RES Polyflow Indiana LLC) 7.00%, 3/01/39(a)		22,795		22,993,544
				40,297,701
Iowa – 0.5%
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2013B 5.25%, 12/01/50		6,405		6,935,526
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018A 5.00%, 5/15/43-5/15/48		11,000		12,262,300
				19,197,826
Kansas – 0.1%
Overland Park Development Corp. (City of Overland Park KS) 5.00%, 3/01/44-3/01/49(e)		3,140		3,706,909
Wyandotte County-Kansas City Unified Government (Wyandotte County-Kansas City Unified Government Sales Tax) Series 2018 4.50%, 6/01/40		1,900		1,986,583
				5,693,492

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky – 1.4%
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017B 5.00%, 8/15/34-8/15/46	$	15,780	$	18,304,950
Kentucky Economic Development Finance Authority (CommonSpirit Health) Series 2019A 5.00%, 8/01/44-8/01/49		6,725		7,931,747
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/42		1,685		1,762,729
5.50%, 11/15/45		1,000		1,048,510
Series 2016A 5.00%, 5/15/46-5/15/51		3,100		3,230,930
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017A 5.00%, 6/01/37-6/01/45		9,625		10,983,900
5.25%, 6/01/41		1,250		1,447,363
Kentucky Economic Development Finance Authority (Rosedale Green) Series 2015 5.50%, 11/15/35		1,750		1,871,993
5.75%, 11/15/45		3,350		3,590,865
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/33		8,205		9,703,643
				59,876,630
Louisiana – 2.1%
Jefferson Parish Hospital Service District No. 2 Series 2011 6.375%, 7/01/41(d)		2,130		2,177,201
Jefferson Sales Tax District AGM Series 2017B 5.00%, 12/01/34-12/01/36		3,400		4,134,320

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Louisiana Local Government Environmental Facilities & Community Development Auth (St. James Place of Baton Rouge) Series 2015A 6.00%, 11/15/35	$	2,100	$	2,331,357
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/34-10/01/44		27,600		32,970,291
Louisiana Public Facilities Authority Series 2016 5.00%, 5/15/47 (Pre-refunded/ETM)		10		12,149
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2013B 10.50%, 7/01/39(c)(d)		2,750		27
Series 2014A 7.50%, 7/01/23(c)(d)		1,250		12
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) 5.00%, 7/01/59		10,270		11,925,421
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Lease) Series 2017 5.00%, 7/01/42-7/01/57		17,565		20,177,745
Louisiana Public Facilities Authority (Ochsner Clinic Foundation) Series 2016 5.00%, 5/15/47		1,110		1,266,910
New Orleans Aviation Board Series 2017B 5.00%, 1/01/43		1,000		1,152,780
Parish of St. John the Baptist LA (Marathon Oil Corp.) 2.00%, 6/01/37		4,855		4,854,369
2.10%, 6/01/37		2,465		2,471,089
2.20%, 6/01/37		3,700		3,708,214
Port New Orleans Board of Commissioners Series 2013B 5.00%, 4/01/29-4/01/31		1,540		1,688,779
				88,870,664

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Maine – 0.5%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 1/01/25(a)	$	4,630	$	5,232,872
Series 2018R-2 4.375%, 8/01/35(a)		1,700		1,860,871
Maine Health & Higher Educational Facilities Authority (Maine Medical Center) Series 2018A 5.00%, 7/01/43-7/01/48		9,620		11,411,457
Maine Health & Higher Educational Facilities Authority (MaineGeneral Health Obligated Group) Series 2011 7.50%, 7/01/32		1,000		1,091,140
				19,596,340
Maryland – 0.3%
City of Baltimore MD (Baltimore Hotel Corp.) Series 2017 5.00%, 9/01/33-9/01/36		3,250		3,771,263
City of Baltimore MD (East Baltimore Research Park Project) Series 2017A 5.00%, 9/01/38		1,000		1,106,900
City of Baltimore MD (Harbor Point Special Taxing District) 3.625%, 6/01/46(a)		1,750		1,758,417
Series 2019B 3.875%, 6/01/46(a)		300		300,588
Maryland Health & Higher Educational Facilities Authority (Meritus Medical Center Obligated Group) Series 2015 5.00%, 7/01/31		3,245		3,773,383
				10,710,551
Massachusetts – 0.9%
Massachusetts Development Finance Agency (Emerson College) Series 2017A 5.00%, 1/01/40		670		785,019
Massachusetts Development Finance Agency (Emmanuel College/MA) Series 2016A 5.00%, 10/01/43		1,760		2,002,669

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Massachusetts Development Finance Agency (Merrimack College) Series 2012A 5.25%, 7/01/42	$	5,000	$	5,352,550
Massachusetts Development Finance Agency (Simmons University) Series 2018L 5.00%, 10/01/34-10/01/35		2,360		2,859,796
Massachusetts Development Finance Agency (South Shore Hospital, Inc.) Series 2016I 5.00%, 7/01/31-7/01/41		3,850		4,445,574
Massachusetts Development Finance Agency (UMass Memorial Health Care Obligated Group) Series 2016 5.00%, 7/01/41-7/01/46		3,980		4,567,026
Massachusetts Development Finance Agency (Wellforce Obligated Group) Series 2013G 5.00%, 7/01/37		2,550		2,825,323
AGM Series 2019A 5.00%, 7/01/36		1,000		1,208,900
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017 8.00%, 12/01/22(i)		10,525		9,327,150
Series 2017A 7.75%, 12/01/44(a)		4,525		4,480,157
				37,854,164
Michigan – 3.4%
City of Detroit MI 5.00%, 4/01/33-4/01/38		4,385		4,881,768
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012A 5.00%, 7/01/32		4,400		4,757,896
5.25%, 7/01/39		4,825		5,235,366
City of Detroit MI Water Supply System Revenue (Great Lakes Water Authority Water Supply System Revenue) Series 2011C 5.00%, 7/01/41		1,060		1,110,265

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Detroit City School District Series 2012A 5.00%, 5/01/31	$	120	$	129,804
Grand Rapids Economic Development Corp. (Beacon Hill at Eastgate) Series 2017A 5.00%, 11/01/32-11/01/37		1,655		1,799,581
Great Lakes Water Authority Water Supply System Revenue Series 2016A 5.00%, 7/01/46		1,025		1,201,792
Series 2016D 5.00%, 7/01/36		25,210		29,609,397
Kalamazoo Hospital Finance Authority (Bronson Healthcare Group Obligated Group) Series 2016 4.00%, 5/15/31-5/15/36		20,100		21,902,045
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) Series 2014D4 5.00%, 7/01/29-7/01/34		2,100		2,409,531
Series 2015D-1 5.00%, 7/01/34		2,000		2,329,200
Series 2015D-2 5.00%, 7/01/34		3,400		3,943,796
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 4.00%, 11/15/35		4,000		4,406,880
5.00%, 11/15/32		3,850		4,613,570
Series 2019A 5.00%, 11/15/48		6,635		8,036,246
Michigan Finance Authority (MidMichigan Obligated Group) Series 2014 5.00%, 6/01/34		2,000		2,264,460
Michigan Finance Authority (Public Lighting Authority) Series 2014B 5.00%, 7/01/31-7/01/33		7,950		8,886,551
Michigan Strategic Fund (Detroit Renewable Energy Obligated Group) Series 2013 7.00%, 12/01/30(a)		2,050		2,317,730

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016 7.50%, 12/01/25(a)	$	8,970	$	10,258,989
Michigan Strategic Fund (Evangelical Homes of Michigan Obligated Group) Series 2013 5.50%, 6/01/47		2,000		2,097,620
Michigan Strategic Fund (Michigan Strategic Fund – I 75 Improvement Project) Series 2018 5.00%, 6/30/48		8,600		10,162,706
Michigan Tobacco Settlement Finance Authority (Tobacco Settlement Financing Corp./MI) Series 2007A 6.00%, 6/01/48		5,775		5,806,474
Wayne State University Series 2018A 5.00%, 11/15/43		4,000		4,849,240
				143,010,907
Minnesota – 0.2%
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) 5.00%, 8/01/54		1,000		1,097,630
Duluth Economic Development Authority (Essentia Health Obligated Group) Series 2018A 5.00%, 2/15/43-2/15/48		2,925		3,444,045
Minnesota Higher Education Facilities Authority (St. Catherine University) Series 2018A 5.00%, 10/01/45		1,900		2,208,712
				6,750,387
Mississippi – 0.3%
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016A 5.00%, 9/01/41		9,630		10,867,359
Mississippi Hospital Equipment & Facilities Authority (Forrest General Hospital, Inc.) 4.00%, 1/01/36-1/01/37		2,005		2,234,632
5.00%, 1/01/35		1,230		1,522,506
				14,624,497

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Missouri – 1.8%
Cape Girardeau County Industrial Development Authority (SoutheastHEALTH Obligated Group) Series 2017A 5.00%, 3/01/36	$	2,925	$	3,352,898
Health & Educational Facilities Authority of the State of Missouri (Lutheran Senior Services Obligated Group) Series 2010 5.50%, 2/01/42		100		100,998
Series 2016A 5.00%, 2/01/46		1,000		1,124,410
Series 2019I 4.00%, 2/01/42-2/01/48(e)		37,870		39,783,596
5.00%, 2/01/42-2/01/48(e)		3,220		3,842,405
Kansas City Industrial Development Authority 5.00%, 7/01/40(a)		3,175		3,222,022
Kansas City Industrial Development Authority (Kingswood Senior Living Community) Series 2016 6.00%, 11/15/46(i)		2,915		2,601,958
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2014A 5.25%, 8/15/39		620		679,929
Series 2016A 5.00%, 8/15/36-8/15/46		3,060		3,361,902
Series 2018 5.00%, 8/15/42		6,940		7,763,501
Missouri Joint Municipal Electric Utility Commission Series 2014 5.00%, 1/01/31		3,240		3,745,537
St. Louis County Industrial Development Authority (St. Andrews Resources for Seniors Obligated Group) Series 2015A 5.00%, 12/01/35		2,000		2,198,440
5.125%, 12/01/45		4,500		4,909,815
				76,687,411
Montana – 0.0%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%, 2/15/34		1,085		1,276,047

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Nebraska – 1.4%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2012 5.00%, 9/01/32-9/01/42	$	2,975	$	3,229,364
Series 2017A 5.00%, 9/01/34-9/01/42		40,700		55,108,023
				58,337,387
Nevada – 1.4%
City of Carson City NV (Carson Tahoe Regional Healthcare) Series 2017 5.00%, 9/01/37-9/01/47		3,935		4,572,192
City of Reno NV (County of Washoe NV Sales Tax Revenue) Series 2018C Zero Coupon, 7/01/58(a)		17,000		2,442,050
Clark County School District Series 2017C 5.00%, 6/15/33-6/15/36		17,110		20,314,388
AGM Series 2019B 3.00%, 6/15/37		5,185		5,255,983
County of Clark NV (Southern California Edison Co.) Series 2015A 1.875%, 6/01/31		4,700		4,703,243
Las Vegas Redevelopment Agency Series 2016 5.00%, 6/15/40		1,800		2,045,574
Las Vegas Valley Water District Series 2016A 5.00%, 6/01/46		14,000		16,407,020
State of Nevada Department of Business & Industry (Fulcrum Sierra Biofuels LLC) Series 2018 6.95%, 2/15/38(a)		1,890		2,172,328
				57,912,778
New Hampshire – 0.3%
New Hampshire Health and Education Facilities Authority Act (Concord Hospital Obligated Group) Series 2017 5.00%, 10/01/47		8,105		9,524,185

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Hampshire Health and Education Facilities Authority Act (Southern New Hampshire University) Series 2012 5.00%, 1/01/42	$	2,940	$	3,129,248
				12,653,433
New Jersey – 8.9%
City of Bayonne NJ BAM Series 2016 5.00%, 7/01/39		1,075		1,256,084
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2013 5.00%, 3/01/30		3,455		3,750,541
Series 2014P 5.00%, 6/15/29		5,000		5,583,150
Series 2014U 5.00%, 6/15/21		3,500		3,695,125
Series 2015X 5.00%, 6/15/21		15,920		16,807,540
Series 2017A 5.00%, 7/01/33		1,640		1,891,478
Series 2017B 5.00%, 11/01/20		7,505		7,763,322
Series 2017D 5.00%, 6/15/33-6/15/42		5,370		6,122,527
Series 2018A 5.00%, 6/15/42-6/15/47		5,885		6,658,804
New Jersey Economic Development Authority (Port Newark Container Terminal LLC) Series 2017 5.00%, 10/01/37-10/01/47		6,035		6,959,769
New Jersey Economic Development Authority (State of New Jersey Division of Property Management & Construction Lease) Series 2018C 5.00%, 6/15/42		7,085		8,027,659
New Jersey Economic Development Authority (UMM Energy Partners LLC) Series 2012A 5.125%, 6/15/43		735		783,040
New Jersey Economic Development Authority (United Airlines, Inc.) Series 1999 5.25%, 9/15/29		2,850		3,114,509

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2000B 5.625%, 11/15/30	$	1,475	$	1,693,418
New Jersey Health Care Facilities Financing Authority (Hackensack Meridian Health Obligated Group) Series 2017A 5.00%, 7/01/35		1,300		1,577,329
New Jersey Health Care Facilities Financing Authority (Holy Name Medical Center, Inc.) Series 2010 5.00%, 7/01/25		100		102,239
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017A 5.00%, 7/01/36-7/01/42		8,645		10,257,543
New Jersey Health Care Facilities Financing Authority (New Jersey Health Care Facilities Financing Authority State Lease) Series 2017 5.00%, 10/01/35		1,070		1,232,843
New Jersey Health Care Facilities Financing Authority (RWJ Barnabas Health Obligated Group) Series 2014 5.00%, 7/01/44		2,040		2,330,006
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 6/15/24-6/15/30		38,985		45,727,544
Series 2018A 5.00%, 6/15/30-6/15/31		35,540		41,441,834
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) 5.00%, 6/15/46		2,325		2,643,711
Series 2014A 5.00%, 6/15/38		1,000		1,097,910
Series 2015A 5.00%, 6/15/45		8,450		9,358,206
Series 2018A 5.00%, 12/15/33-12/15/35		22,405		26,146,840

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019B 4.00%, 6/15/36-6/15/37	$	2,715	$	2,896,975
New Jersey Turnpike Authority Series 2013A 5.00%, 1/01/27 (Pre-refunded/ETM)		2,500		2,753,325
5.00%, 1/01/32 (Pre-refunded/ETM)		1,000		1,101,330
Series 2015E 5.00%, 1/01/33-1/01/45		15,400		17,767,246
Series 2016A 5.00%, 1/01/33		6,500		7,703,280
Series 2017A 5.00%, 1/01/33-1/01/34		15,000		18,121,100
Series 2017B 5.00%, 1/01/32-1/01/33		13,540		16,718,152
Series 2019A 5.00%, 1/01/48		11,320		13,732,179
Tobacco Settlement Financing Corp. Series 2018B 5.00%, 6/01/46		68,740		75,677,241
				372,493,799
New Mexico – 0.8%
City of Farmington NM (Southern California Edison Co.) 1.875%, 4/01/29		14,230		14,240,245
Series 2015A 1.875%, 4/01/29		9,050		9,056,516
City of Santa Fe NM (El Castillo Retirement Residences Obligated Group) 5.00%, 5/15/39-5/15/49(e)		2,180		2,408,483
New Mexico Hospital Equipment Loan Council (Gerald Champion Regional Medical Center) Series 2012 5.50%, 7/01/42		1,060		1,147,408
New Mexico Hospital Equipment Loan Council (Haverland Carter Lifestyle Obligated Group) Series 2019L 5.00%, 7/01/39-7/01/49		6,615		7,460,856
				34,313,508
New York – 4.2%
Build NYC Resource Corp. (Metropolitan College of New York) Series 2014 5.25%, 11/01/34		2,000		2,155,220
City of New York NY Series 2018E 5.00%, 3/01/37-3/01/38		17,500		21,421,475

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Newburgh NY Series 2012A 5.625%, 6/15/34	$	245	$	266,229
Dutchess County Local Development Corp. (Health QuestSystems Obligated Group) Series 2016B 5.00%, 7/01/46		13,520		15,661,298
Metropolitan Transportation Authority Series 2013E 5.00%, 11/15/32		4,425		4,973,877
Series 2016A 5.00%, 11/15/32		3,440		4,076,778
Nassau County Industrial Development Agency (Amsterdam House Continuing Care Retirement Community, Inc.) Series 2014A 6.50%, 1/01/32		75		76,148
6.70%, 1/01/49		449		444,562
Series 2014B 5.50%, 7/01/20		232		232,242
Series 2014C 2.00%, 1/01/49(b)(c)(h)		514		83,488
New York City Municipal Water Finance Authority Series 2019D 5.00%, 6/15/49		8,000		9,653,280
New York Liberty Development Corp. (7 World Trade Center II LLC) Series 2012 5.00%, 3/15/44		100		107,493
New York Liberty Development Corp. (Goldman Sachs Headquarters LLC) Series 2005 5.25%, 10/01/35		1,325		1,806,439
New York NY GO Series 2013A-1 5.00%, 10/01/28(f)		500		552,320
New York State Dormitory Authority (Orange Regional Medical Center Obligated Group) Series 2017 5.00%, 12/01/30-12/01/34(a)		4,200		4,962,172
New York State Thruway Authority AGM Series 2012I 5.00%, 1/01/37 (Pre-refunded/ETM)		2,000		2,169,480
New York State Thruway Authority (New York State Thruway Authority Gen Toll Road) Series 2016A 5.00%, 1/01/41		3,800		4,419,476

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 5.00%, 1/01/27-1/01/29	$	51,325	$	62,115,965
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016A 5.00%, 7/01/41-7/01/46		13,185		14,591,694
Orange County Funding Corp. (The Hamlet at Wallkill) Series 2013 6.50%, 1/01/46		1,090		1,128,673
Port Authority of New York & New Jersey Series 2012 5.00%, 10/01/34		3,900		4,202,913
Series 2013178 5.00%, 12/01/33		5,000		5,632,900
Triborough Bridge & Tunnel Authority Series 2012B 5.00%, 11/15/28-11/15/29(f)		1,950		2,169,904
TSASC, Inc./NY Series 2017A 5.00%, 6/01/41		1,560		1,750,835
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 9/15/37		860		878,456
5.25%, 9/15/42-9/15/53		2,330		2,383,548
Westchester County Local Development Corp. (Kendal on Hudson) Series 2013 5.00%, 1/01/34		3,840		4,095,974
Westchester County Local Development Corp. (Westchester County Health Care Corp. Obligated Group) Series 2016 5.00%, 11/01/46		4,230		4,748,133
				176,760,972
North Carolina – 0.6%
County of New Hanover NC (New Hanover Regional Medical Center) Series 2017 5.00%, 10/01/42-10/01/47		5,830		6,683,971
North Carolina Medical Care Commission (Aldersgate United Methodist Retirement Community, Inc.) Series 2015 4.875%, 7/01/40		5,000		5,347,250
5.00%, 7/01/45		1,000		1,072,630

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
North Carolina Medical Care Commission (Pennybyrn at Maryfield) Series 2015 5.00%, 10/01/30	$	2,250	$	2,447,483
North Carolina Medical Care Commission (United Church Homes & Services Obligated Group) Series 2015A 5.00%, 9/01/37		1,735		1,856,693
Series 2017 5.00%, 9/01/46		1,000		1,071,620
North Carolina Turnpike Authority Series 2018 5.00%, 1/01/40		5,000		6,028,200
				24,507,847
North Dakota – 0.6%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2018 5.00%, 9/15/28(a)		7,725		7,648,213
5.375%, 9/15/38(a)		4,750		4,604,318
County of Ward ND (Trinity Health Obligated Group) Series 2017C 5.00%, 6/01/48-6/01/53		10,230		11,498,724
				23,751,255
Ohio – 3.0%
American Municipal Power, Inc. Series 2016A 5.00%, 2/15/41-2/15/46		10,000		11,452,740
Buckeye Tobacco Settlement Financing Authority Series 2007A-2 5.875%, 6/01/47		21,875		22,015,437
Butler County Port Authority (StoryPoint Obligated Group) Series 2017A-1 6.375%, 1/15/43(a)		675		729,614
City of Chillicothe/OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/37-12/01/47		7,500		8,908,433
County of Cuyahoga/OH (MetroHealth System (The)) 5.00%, 2/15/52		5,680		6,368,245
Series 2017 5.00%, 2/15/42		6,490		7,336,491
5.25%, 2/15/47		12,860		14,758,522

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Franklin OH (First Community Village Obligated Group) Series 2013 5.625%, 7/01/47	$	2,300	$	2,345,586
County of Hamilton OH (Life Enriching Communities Obligated Group) Series 2012 5.00%, 1/01/42		1,030		1,098,001
County of Montgomery OH (Trousdale Foundation Obligated Group) Series 2018A 6.25%, 4/01/49(a)		2,415		2,700,863
County of Ross OH (Adena Health System Obligated Group) 5.00%, 12/01/49		6,000		7,213,920
Dayton-Montgomery County Port Authority (StoryPoint Troy Project) Series 20151 7.00%, 1/15/40		2,500		2,551,850
Ohio Air Quality Development Authority (FirstEnergy Generation LLC) Series 2009C 5.625%, 6/01/49(b)(c)		5,440		5,603,200
Series 2009D 4.25%, 8/01/29		5,205		5,582,362
Ohio Air Quality Development Authority (FirstEnergy Nuclear Generation LLC) Series 2009A 4.375%, 6/01/33		7,480		8,022,300
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) 3.25%, 9/01/29		1,780		1,832,190
Ohio Higher Educational Facility Commission (Kenyon College) 5.00%, 7/01/38-7/01/42(e)		9,690		11,719,886
Ohio Water Development Authority Water Pollution Control Loan Fund (FirstEnergy Nuclear Generation LLC) Series 2016A 4.375%, 6/01/33		3,110		3,335,475
Toledo-Lucas County Port Authority (StoryPoint Obligated Group) Series 2016 6.375%, 1/15/51(a)		1,000		1,072,180
				124,647,295

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Oklahoma – 0.5%
Comanche County Memorial Hospital 5.00%, 7/01/22	$	780	$	830,575
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2018B 5.50%, 8/15/57		14,170		16,885,539
Tulsa Airports Improvement Trust (American Airlines, Inc.) Series 2013A 5.50%, 6/01/35		1,125		1,227,218
				18,943,332
Pennsylvania – 7.7%
Allegheny County Hospital Development Authority (Allegheny Health Network Obligated Group) Series 2018A 5.00%, 4/01/34-4/01/36		33,535		40,263,348
Allentown Neighborhood Improvement Zone Development Authority Series 2017 5.00%, 5/01/42(a)		2,270		2,533,865
Altoona Area School District BAM Series 2018 5.00%, 12/01/45		1,600		1,829,104
Beaver County Industrial Development Authority (FirstEnergy Generation LLC) Series 2016B 4.25%, 10/01/47		10,000		10,725,000
Beaver County Industrial Development Authority (FirstEnergy Nuclear Generation LLC) Series 2016A 4.375%, 1/01/35		1,430		1,533,675
Bensalem Township School District Series 2013 5.00%, 6/01/29		8,570		9,736,463
Berks County Industrial Development Authority (Highlands at Wyomissing (The)) Series 2018 5.00%, 5/15/48		1,000		1,113,260
Chambersburg Area Municipal Authority (Wilson College) Series 2018 5.75%, 10/01/43		1,350		1,449,927
6.00%, 10/01/48		9,000		9,744,570

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Chester County Industrial Development Authority (Woodlands at Greystone Neighborhood Improvement District) Series 2018 5.125%, 3/01/48(a)	$	1,050	$	1,116,822
City of Philadelphia PA Series 2013A 5.00%, 7/15/21		1,200		1,274,892
Series 2017 5.00%, 8/01/29-8/01/31		12,110		14,810,780
Series 2019B 5.00%, 2/01/35-2/01/38		11,300		14,019,910
AGM Series 2017A 5.00%, 8/01/33-8/01/34		13,000		15,720,190
City of Philadelphia PA Water & Wastewater Revenue Series 2017A 5.00%, 10/01/35-10/01/36		5,105		6,206,500
Commonwealth of Pennsylvania (Commonwealth of Pennsylvania COP) Series 2018A 5.00%, 7/01/38		1,120		1,347,797
County of Lehigh PA (Lehigh Valley Health Network Obligated Group) Series 2016A 4.00%, 7/01/35		10,000		10,861,200
Crawford County Hospital Authority (Meadville Medical Center Obligated Group) Series 2016A 6.00%, 6/01/46-6/01/51		3,375		3,858,823
Cumberland County Municipal Authority (Asbury Pennsylvania Obligated Group) Series 2010 6.125%, 1/01/45		180		180,983
Series 2012 5.25%, 1/01/41		1,000		1,031,610
Delaware River Joint Toll Bridge Commission Series 2017 5.00%, 7/01/35		4,000		4,894,680
Montgomery County Higher Education & Health Authority (Philadelphia Presbytery Homes Obligated Group) Series 2017 5.00%, 12/01/47		1,500		1,644,945

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Montgomery County Higher Education & Health Authority (Thomas Jefferson University Obligated Group) 4.00%, 9/01/49-9/01/51	$	8,900	$	9,625,556
5.00%, 9/01/51		2,300		2,733,895
Series 2018 5.00%, 9/01/35		3,600		4,343,508
Montgomery County Industrial Development Authority/PA Series 2010 6.50%, 12/01/25 (Pre-refunded/ETM)		200		221,482
Montgomery County Industrial Development Authority/PA (Whitemarsh Continuing Care Retirement Community) Series 2015 5.00%, 1/01/30		1,040		1,077,190
5.25%, 1/01/40		4,740		4,881,963
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 7/01/35		5,135		5,580,307
Northeastern Pennsylvania Hospital & Education Authority (Wilkes University) Series 2012A 5.25%, 3/01/42		265		277,471
Series 2016A 5.00%, 3/01/37		1,400		1,549,086
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019A 3.25%, 8/01/39(a)		2,330		2,316,463
Pennsylvania Economic Development Financing Authority (National Railroad Passenger Corp.) Series 2012A 5.00%, 11/01/41		1,620		1,746,473
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/34		2,830		3,251,161

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania Higher Educational Facilities Authority (Drexel University) Series 2016 5.00%, 5/01/32	$	1,000	$	1,173,680
Series 2017 5.00%, 5/01/41		1,000		1,179,350
Pennsylvania Turnpike Commission Series 2016 5.00%, 6/01/37		4,000		4,647,440
Series 2017B 5.00%, 6/01/35-6/01/36		12,850		15,293,698
Series 2018A 5.00%, 12/01/43		10,000		12,168,200
Series 2019A 5.00%, 12/01/38		5,435		6,653,907
Philadelphia Authority for Industrial Development (City of Philadelphia PA) Series 2018 5.00%, 5/01/35		1,000		1,221,260
Philadelphia Authority for Industrial Development (Evangelical Services for the Aging Obligated Group) Series 2017A 5.00%, 7/01/42		2,000		2,215,500
School District of Philadelphia (The) Series 2015A 5.00%, 9/01/34-9/01/35		2,615		3,019,938
Series 2016F 5.00%, 9/01/33-9/01/36		4,000		4,701,730
Series 2018A 5.00%, 9/01/34-9/01/38		4,000		4,825,370
Series 2018B 5.00%, 9/01/43		3,000		3,561,990
Series 2019A 4.00%, 9/01/37-9/01/39(e)		5,530		6,125,026
5.00%, 9/01/44(e)		17,900		21,389,247
Scranton-Lackawanna Health & Welfare Authority (Scranton Parking System Concession Project) Series 2016A 5.00%, 1/01/51-1/01/57(a)		12,110		12,415,232
Series 2016B 6.08%, 1/01/26(a)		915		911,120

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016C Zero Coupon, 1/01/36(a)	$	2,945	$	1,254,835
Series 2016D Zero Coupon, 1/01/57(a)		59,385		5,652,858
State Public School Building Authority (Harrisburg School District) AGM Series 2016A 5.00%, 12/01/29-12/01/30		9,880		11,674,403
Union County Hospital Authority (Evangelical Community Hospital Obligated Group) Series 2018 5.00%, 8/01/38-8/01/43		8,435		9,745,641
				323,333,324
Puerto Rico – 5.8%
Commonwealth of Puerto Rico Series 2006A 5.25%, 7/01/23		2,510		1,926,425
Series 2008A 5.00%, 7/01/23		255		194,756
Series 2011A 5.75%, 7/01/41(b)(c)		4,265		3,081,462
Series 2012A 5.50%, 7/01/39(b)(c)		5,000		3,350,000
5.75%, 7/01/28(b)(c)		1,350		904,500
Series 2014A 8.00%, 7/01/35(b)(c)		13,625		8,243,125
AGC Series 2001A 5.50%, 7/01/29		670		757,080
GDB Debt Recovery Authority of Puerto Rico Series 2018 7.50%, 8/20/40		8,688		6,776,686
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series 2008A 6.00%, 7/01/38-7/01/44		7,990		8,079,888
6.125%, 7/01/24		7,190		7,756,212
Series 2012A 4.25%, 7/01/25		8,140		8,312,975
5.00%, 7/01/33		4,705		4,899,081
5.125%, 7/01/37		1,155		1,205,531
5.25%, 7/01/29-7/01/42		12,060		12,633,488
5.50%, 7/01/28		4,090		4,330,287
5.75%, 7/01/37		2,985		3,167,831
6.00%, 7/01/47		2,845		3,026,369
Puerto Rico Electric Power Authority Series 2007T 5.00%, 7/01/37(b)(c)		14,970		11,227,500

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2010A 5.25%, 7/01/30	$	1,040	$	790,400
Series 2010C 5.00%, 7/01/24(b)(c)		1,735		1,301,250
Series 2010D 5.00%, 7/01/21(b)(c)		1,050		787,500
5.00%, 7/01/22		950		712,500
Series 2010X 5.25%, 7/01/40		9,480		7,204,800
Series 2010Z 5.25%, 7/01/24		2,565		1,949,400
Series 2012A 5.00%, 7/01/29		2,510		1,882,500
5.00%, 7/01/42(b)(c)		1,740		1,305,000
AGM Series 2007U 5.00%, 7/01/23		1,050		1,075,788
AGM Series 2007V 5.25%, 7/01/31		25,380		28,386,515
NATL Series 2007V 5.25%, 7/01/29-7/01/35		6,350		6,803,730
Puerto Rico Highway & Transportation Authority AGC Series 2005L 5.25%, 7/01/41		8,600		9,579,110
AGC Series 2007C 5.50%, 7/01/31		1,735		1,980,693
AGC Series 2007N 5.25%, 7/01/36		825		923,777
AGM Series 2007C 5.25%, 7/01/36		1,800		2,015,550
NATL Series 2005L 5.25%, 7/01/35		7,565		8,031,004
NATL Series 2007 5.50%, 7/01/28		1,000		1,089,640
NATL Series 2007N 5.25%, 7/01/33		480		511,819
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) Series 2000 6.625%, 6/01/26		23,735		24,298,706
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (Sistema Universitario Ana G Mendez Incorporado) Series 2012 5.375%, 4/01/42		335		338,350

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018A Zero Coupon, 7/01/24-7/01/46	$	8,565	$	2,944,360
Series 2019A 4.329%, 7/01/40		11,500		11,672,385
4.55%, 7/01/40		1,198		1,224,500
5.00%, 7/01/58		33,956		35,647,009
				242,329,482
Rhode Island – 0.1%
Rhode Island Health & Educational Building Corp. Series 2011 8.375%, 1/01/46 (Pre-refunded/ETM)		3,150		3,406,820
Rhode Island Health & Educational Building Corp. (City of Woonsocket RI Lease) AGM Series 2017A 5.00%, 5/15/28-5/15/29		2,000		2,429,660
				5,836,480
South Carolina – 1.9%
South Carolina Jobs-Economic Development Authority (Lutheran Homes of South Carolina Obligated Group) Series 2013 5.00%, 5/01/43		1,000		1,037,230
5.125%, 5/01/48		1,000		1,039,620
South Carolina Public Service Authority Series 2013A 5.00%, 12/01/38		575		641,901
Series 2013B 5.00%, 12/01/38		810		904,244
Series 2014A 5.00%, 12/01/49		11,820		13,158,260
Series 2014B 5.00%, 12/01/38		1,160		1,303,759
Series 2014C 5.00%, 12/01/36-12/01/46		3,495		3,944,929
Series 2015A 5.00%, 12/01/50		5,000		5,659,600
Series 2016A 5.00%, 12/01/34-12/01/36		4,815		5,669,454
Series 2016B 5.00%, 12/01/37-12/01/56		38,780		45,251,065
				78,610,062

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
South Dakota – 1.0%
South Dakota Health & Educational Facilities Authority (Avera Health Obligated Group) Series 2017 5.00%, 7/01/46	$	17,850	$	20,900,743
South Dakota Health & Educational Facilities Authority (Regional Health System Obligated Group/SD) Series 2017 5.00%, 9/01/33-9/01/40		18,295		21,688,759
				42,589,502
Tennessee – 1.3%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016A 5.00%, 12/01/35(a)		9,080		9,374,374
5.125%, 12/01/42(a)		11,900		12,210,590
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health) Series 2019A 5.00%, 8/01/44-8/01/49		11,555		13,638,004
Johnson City Health & Educational Facilities Board (Mountain States Health Alliance Obligated Group) Series 2012 5.00%, 8/15/42		5,250		5,649,052
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group) Series 2018A 6.25%, 4/01/49(a)		5,040		5,636,585
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2016 5.00%, 7/01/40		2,435		2,836,653
Series 2017A 5.00%, 7/01/48		2,335		2,707,316

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Shelby County Health Educational & Housing Facilities Board (Village at Germantown, Inc.) Series 2012 5.25%, 12/01/42	$	1,000	$	1,048,490
5.375%, 12/01/47		800		841,200
				53,942,264
Texas – 6.7%
Arlington Higher Education Finance Corp. (Harmony Public Schools) Series 2016A 5.00%, 2/15/41-2/15/46		6,060		7,018,466
Central Texas Regional Mobility Authority Series 2013 5.00%, 1/01/42		3,500		3,786,265
Series 2016 5.00%, 1/01/33-1/01/40		6,855		7,919,564
Central Texas Turnpike System Series 2015C 5.00%, 8/15/37		6,800		7,647,756
City of Houston TX (City of Houston TX Hotel Occupancy Tax) Series 2015 5.00%, 9/01/30		1,965		2,248,589
City of Houston TX Airport System Revenue (United Airlines, Inc.) Series 2014 5.00%, 7/01/29		15,355		17,152,763
Series 2015B 5.00%, 7/15/30-7/15/35		2,960		3,319,139
Series 2018 5.00%, 7/15/28		22,875		27,380,231
Clifton Higher Education Finance Corp. (IDEA Public Schools) Series 2012 5.00%, 8/15/42		530		564,270
Series 2013 6.00%, 8/15/43		1,000		1,134,040
Series 2016A 5.00%, 8/15/34-8/15/36		3,180		3,770,116
Dallas County Flood Control District No. 1 Series 2015 5.00%, 4/01/28(a)		1,150		1,229,948
Dallas/Fort Worth International Airport Series 2012E 5.00%, 11/01/35 (Pre-refunded/ETM)		1,500		1,554,360

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Decatur Hospital Authority (Wise Regional Health System) Series 2014A 5.25%, 9/01/44	$	3,150	$	3,459,109
Grand Parkway Transportation Corp. Series 2018 5.00%, 2/01/23		5,340		5,938,721
Irving Hospital Authority (Baylor Medical Center at Irving) Series 2017A 5.00%, 10/15/44		7,305		8,251,436
Mission Economic Development Corp. (Natgasoline LLC) Series 2018 4.625%, 10/01/31(a)		25,175		27,285,924
New Hope Cultural Education Facilities Finance Corp. (BSPV – Plano LLC) 7.25%, 12/01/53		8,315		8,795,274
New Hope Cultural Education Facilities Finance Corp. (CHF-Collegiate Housing Corpus Christi I LLC) Series 2017A 5.00%, 4/01/37		1,380		1,477,732
New Hope Cultural Education Facilities Finance Corp. (Legacy at Midtown Park, Inc. Obligated Group) Series 2018A 5.50%, 7/01/54		4,500		4,731,930
New Hope Cultural Education Facilities Finance Corp. (Wesleyan Homes, Inc.) Series 2014 5.50%, 1/01/49		1,700		1,831,648
North East Texas Regional Mobility Authority Series 2016 5.00%, 1/01/46		4,940		5,550,584
North Texas Education Finance Corp. Series 2012A 5.125%, 12/01/42 (Pre-refunded/ETM)		280		307,258
North Texas Tollway Authority (North Texas Tollway System) Series 2014B 5.00%, 1/01/31		8,975		10,160,149

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2015A 5.00%, 1/01/35	$	7,000	$	8,074,710
Series 2017B 5.00%, 1/01/33-1/01/43		7,400		8,757,960
Red River Health Facilities Development Corp. Series 2011A 8.00%, 11/15/46 (Pre-refunded/ETM)		1,790		2,029,162
Red River Health Facilities Development Corp. (MRC Crossings Proj) Series 2014A 7.75%, 11/15/44		1,315		1,552,108
Red River Health Facilities Development Corp. (Wichita Falls Retirement Foundation) Series 2012
5.50%, 1/01/32		1,740		1,834,291
Sanger Industrial Development Corp. (Texas Pellets, Inc.) Series 2012B 8.00%, 7/01/38(b)(c)(d)		2,180		545,000
Tarrant County Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.) Series 2007 5.50%, 11/15/22(b)(c)(h)		200		140,000
Tarrant County Cultural Education Facilities Finance Corp. (Buckner Senior Living, Inc.) Series 2017B-3 3.875%, 11/15/22		580		580,331
Tarrant County Cultural Education Facilities Finance Corp. (CC Young Memorial Home Obligated Group) Series 2017A 6.375%, 2/15/41-2/15/48		8,465		9,435,150
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015B 5.00%, 11/15/30		4,000		4,260,920
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way) Series 2009A 8.25%, 11/15/39-11/15/44(h)		5,025		4,773,750
Series 2009B 6.86% (Bond Buyer + 3.00%), 11/15/45(h)(j)		1,075		1,021,250

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tarrant County Cultural Education Facilities Finance Corp. (Trinity Terrace Project) Series 2014A-1 5.00%, 10/01/44-10/01/49	$	5,350	$	5,783,392
Texas Municipal Gas Acquisition & Supply Corp. I (Bank of America Corp.) Series 2008D 6.25%, 12/15/26		10,690		12,468,174
Texas Private Activity Bond Surface Transportation Corp. (Blueridge Transportation Group LLC) Series 2016 5.00%, 12/31/40		1,255		1,406,491
Texas Private Activity Bond Surface Transportation Corp. (LBJ Infrastructure Group LLC) Series 2010 7.00%, 6/30/40		660		684,631
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners LLC) Series 2009 6.875%, 12/31/39		200		201,802
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC) 5.00%, 6/30/58		29,940		34,871,717
Series 2013 6.75%, 6/30/43		3,600		4,173,192
Texas State University System Series 2019A 3.00%, 3/15/37(e)		2,300		2,361,272
Texas Transportation Commission 5.00%, 8/01/57		7,500		8,761,800
Travis County Health Facilities Development Corp. Series 2012A 7.00%, 1/01/32 (Pre-refunded/ETM)		1,200		1,279,368
7.125%, 1/01/46 (Pre-refunded/ETM)		2,430		2,594,195
Uptown Development Authority Series 2017A 5.00%, 9/01/35		1,015		1,158,907
Viridian Municipal Management District Series 2011 9.00%, 12/01/37 (Pre-refunded/ETM)		75		86,448
				281,351,293

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Utah – 0.0%
Timber Lakes Water Special Service District 8.125%, 6/15/31 (Pre-refunded/ETM)	$	65	$	72,050
8.125%, 6/15/31		10		10,698
Utah Charter School Finance Authority (North Star Academy) Series 2010A 7.00%, 7/15/45		100		102,375
				185,123
Vermont – 0.1%
Vermont Economic Development Authority (Casella Waste Systems, Inc.) Series 2013 4.625%, 4/01/36(a)		1,100		1,247,774
Vermont Economic Development Authority (Wake Robin Corp.) Series 2012 5.40%, 5/01/33		200		208,796
Vermont Educational & Health Buildings Financing Agency (University of Vermont Health Network Obligated Group) Series 2016A 5.00%, 12/01/34		1,500		1,772,835
				3,229,405
Virginia – 0.6%
Cherry Hill Community Development Authority (Potomac Shores Project) Series 2015 5.15%, 3/01/35(a)		1,000		1,054,120
Chesapeake Bay Bridge & Tunnel District Series 2016 5.00%, 7/01/46		1,000		1,145,140
Chesterfield County Economic Development Authority (Brandermill Woods) Series 2012 5.125%, 1/01/43		1,030		1,057,326
Fairfax County Economic Development Authority (Vinson Hall LLC) Series 2013A 5.00%, 12/01/47		1,955		2,110,892
Peninsula Town Center Community Development Authority Series 2018 5.00%, 9/01/37-9/01/45(a)		3,490		3,881,406

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tobacco Settlement Financing Corp./VA Series 2007B1 5.00%, 6/01/47	$	7,490	$	7,510,298
Virginia College Building Authority (Marymount University) Series 2015A 5.00%, 7/01/45(a)		1,110		1,185,935
Series 2015B 5.25%, 7/01/35(a)		1,000		1,097,690
Virginia College Building Authority (Virginia Lease 21st Century College Prog) Series 2016A 5.00%, 2/01/28(f)		550		617,551
Virginia Small Business Financing Authority (Elizabeth River Crossings OpCo LLC) Series 2012 5.50%, 1/01/42		3,580		3,895,899
Virginia Small Business Financing Authority (I-66 Express Mobility Partners LLC) Series 2017 5.00%, 12/31/52		2,250		2,575,530
				26,131,787
Washington – 1.8%
Kalispel Tribe of Indians Series 2018A 5.25%, 1/01/38(a)		750		831,180
King County Public Hospital District No. 4 Series 2015A 5.00%, 12/01/30		2,235		2,400,055
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 1/01/48		9,000		10,353,690
Port of Seattle WA Series 2015C 5.00%, 4/01/33		5,035		5,736,023
Washington Health Care Facilities Authority (CommonSpirit Health) Series 2019A 5.00%, 8/01/44		9,835		11,626,839
Washington Health Care Facilities Authority (Overlake Hospital Medical Center Obligated Group) Series 2017A 5.00%, 7/01/35		2,350		2,836,262
Series 2017B 5.00%, 7/01/34		1,855		2,247,666

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington Health Care Facilities Authority (Virginia Mason Medical Center Obligated Group) Series 2017 5.00%, 8/15/33-8/15/37	$	18,005	$	20,816,604
Washington State Housing Finance Commission (Mirabella) Series 2012A 6.75%, 10/01/47(a)		3,550		3,810,322
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest Obligated Group) Series 2016A 5.00%, 1/01/31-1/01/46(a)		2,790		3,125,028
Series 2019A 5.00%, 1/01/44-1/01/55(a)		9,220		10,015,886
Washington State Housing Finance Commission (Rockwood Retirement Communities) Series 2014A 7.375%, 1/01/44(a)		3,215		3,671,626
				77,471,181
West Virginia – 0.1%
West Virginia Hospital Finance Authority (West Virginia United Health System Obligated Group) Series 2013A 5.50%, 6/01/44		2,100		2,337,594
Wisconsin – 1.4%
University of Wisconsin Hospitals & Clinics Series 2013A 5.00%, 4/01/38		4,155		4,559,448
Wisconsin Health & Educational Facilities Authority (Aspirus, Inc. Obligated Group) Series 2017 5.00%, 8/15/52(k)		20,345		23,762,960
Wisconsin Health & Educational Facilities Authority (Rogers Memorial Hospital, Inc. Obligated Group) 5.00%, 7/01/44		1,000		1,146,890
Wisconsin Public Finance Authority (Bancroft Neurohealth Obligated Group) Series 2016 5.125%, 6/01/48(a)		3,335		3,557,878

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (Celanese US Holdings LLC) Series 2016C 4.30%, 11/01/30	$	2,060	$	2,247,357
Series 2016D 4.05%, 11/01/30		720		774,857
Wisconsin Public Finance Authority (Gannon University) Series 2017 5.00%, 5/01/42-5/01/47		2,650		2,964,835
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.) Series 2017A 5.25%, 5/15/37-5/15/47(a)		3,225		3,615,180
Wisconsin Public Finance Authority (Maryland Proton Treatment Center LLC) Series 2018A-1 6.25%, 1/01/38(a)		2,685		2,829,829
6.375%, 1/01/48(a)		11,270		11,891,540
Wisconsin Public Finance Authority (Pine Lake Preparatory, Inc.) Series 2015 5.25%, 3/01/35(a)		1,550		1,679,100
Wisconsin Public Finance Authority (Rose Villa, Inc./OR) Series 2014A 5.75%, 11/15/44(a)		1,000		1,090,420
Wisconsin Public Finance Authority (Seabury Retirement Community) Series 2015A 5.00%, 9/01/30(a)		545		593,091
				60,713,385
Total Long-Term Municipal Bonds (cost $3,890,201,480)				4,120,144,467
Short-Term Municipal Notes – 0.5%
Alaska – 0.5%
Municipality of Anchorage AK 2.00%, 12/20/19 (cost $18,358,439)		18,350		18,372,570
Total Municipal Obligations (cost $3,908,559,919)				4,138,517,037
	Shares
SHORT-TERM INVESTMENTS – 1.4%
Investment Companies – 1.4%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(l)(m)(n) (cost $58,157,898)		58,157,898		58,157,898

58    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Corporates - Non-Investment Grade – 0.0%
Texas Pellets, Inc./German Pellets Texas LLC 8.00%, 6/30/20(i)(o)(p)	$	1,166	$	1,165,981
Series 2018 8.00%, 6/30/20(i)(o)(p)		346		346,389
Total Corporates – Non-Investment Grade (cost $1,512,370)				1,512,370
Total Short-Term Investments (cost $59,670,268)				59,670,268
Total Investments – 100.2% (cost $3,968,230,187)				4,198,187,305
Other assets less liabilities – (0.2)%				(6,406,920	)
Net Assets – 100.0%			$	4,191,780,385

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note C)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	437,230		6/17/24		1.760%		CPI#		Maturity	$	(3,415,999	)	$	—	$	(3,415,999	)
USD	256,170		1/15/25		1.671%		CPI#		Maturity		(657,747	)		—		(657,747	)
										$	(4,073,746	)	$	—	$	(4,073,746	)

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

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	514,490		6/17/21	3 Month LIBOR	1.907%	Quarterly/ Semi-Annual	$	4,690,697		$	—	$	4,690,697
USD	105,000		9/11/24	3 Month LIBOR	1.414%	Quarterly/ Semi-Annual		(490,651	)		—		(490,651	)
USD	250,000		10/15/24	3 Month LIBOR	1.582%	Quarterly/ Semi-Annual		1,075,772			—		1,075,772
USD	160,600		1/15/25	3 Month LIBOR	1.566%	Quarterly/ Semi-Annual		542,867			—		542,867
USD	115,000		3/18/29	3 Month LIBOR	2.661%	Quarterly/ Semi-Annual		10,887,941			—		10,887,941
USD	39,125		10/09/29	3 Month LIBOR	1.473%	Quarterly/ Semi-Annual		(473,274	)		—		(473,274	)

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	39,125		10/09/29		3 Month LIBOR		1.470%		Quarterly/ Semi-Annual	$	(484,259	)	$	—	$	(484,259	)
USD	37,250		4/16/49		3 Month LIBOR		2.746%		Quarterly/ Semi-Annual		8,414,966			—		8,414,966
										$	24,164,059		$	—	$	24,164,059

INFLATION (CPI) SWAPS (see Note C)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
Barclays Bank PLC		USD	50,003		9/20/20	2.263%	CPI#	Maturity	$	(663,660	)
Barclays Bank PLC		USD	42,028		10/15/20	2.208%	CPI#	Maturity		(501,494	)
Barclays Bank PLC		USD	25,607		10/15/20	2.210%	CPI#	Maturity		(306,844	)
Citibank, NA		USD	30,570		10/17/20	2.220%	CPI#	Maturity		(370,276	)
JPMorgan Chase Bank, NA		USD	50,936		8/30/20	2.210%	CPI#	Maturity		(636,679	)
JPMorgan Chase Bank, NA		USD	666,890		7/15/24	2.165%	CPI#	Maturity		(13,774,866	)
									$	(16,253,819	)

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

INTEREST RATE SWAPS (see Note C)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Unrealized Appreciation/ (Depreciation)
Citibank, NA		USD	52,610		10/09/29	1.120%	SIFMA*	Quarterly	$	362,770
Citibank, NA		USD	52,610		10/09/29	1.125%	SIFMA*	Quarterly		335,642
									$	698,412

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

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $409,083,037 or 9.8% of net assets.

(b) Non-income producing security.

(c) Defaulted.

(d) Restricted and illiquid security.

60    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
California School Finance Authority (Tri-Valley Learning Corp.) Series 2012A
7.00%, 06/01/47		9/07/12	$	449,235	$	14,600		0.00	%
Jefferson Parish Hospital Service District No. 2 Series 2011
6.375%, 07/01/41		9/04/14		2,194,811		2,177,201		0.05	%
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2013B
10.50%, 07/01/39		11/22/13		1,973,785		27		0.00	%
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014A
7.50%, 07/01/23		7/31/14		868,862		12		0.00	%
Sanger Industrial Development Corp. (Texas Pellets, Inc.) Series 2012B
8.00%, 07/01/38		5/08/13		2,220,132		545,000		0.01	%

(e) When-Issued or delayed delivery security.

(f) Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note H).

(g) An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of October 31, 2019 and the aggregate market value of these securities amounted to $14,929,063 or 0.36% of net assets.

(h) Illiquid security.

(i) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.31% of net assets as of October 31, 2019, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Kansas City Industrial Development Authority (Kingswood Senior Living Community)
Series 2016 6.00%, 11/15/46		12/18/15	$	2,933,112	$	2,601,958		0.06	%
Massachusetts Development Finance Agency (Zero Waste Solutions LLC)
Series 2017 8.00%, 12/01/22		12/07/17		9,282,932		9,327,150		0.22	%
Texas Pellets, Inc./German Pellets Texas LLC
8.00%, 6/30/20		6/15/16-1/12/18		1,165,981		1,165,981		0.03	%

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Texas Pellets, Inc./German Pellets Texas LLC
Series 2018 8.00%, 6/30/20		11/30/18	$	346,389	$	346,389		0.01	%

(j) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(k) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(l) Affiliated investments.

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

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

(o) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(p) Fair valued by the Adviser.

As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 3.2% and 0.1%, respectively.

Glossary:

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

COP – Certificate of Participation

ETM – Escrowed to Maturity

GO – General Obligation

LIBOR – London Interbank Offered Rates

NATL – National Interstate Corporation

OSF – Order of St. Francis

SD – School District

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

62    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $3,910,072,289)	$	4,140,029,407
Affiliated issuers (cost $58,157,898)		58,157,898
Cash		1,596,323
Cash collateral due from broker		42,615,791
Interest receivable		56,520,473
Receivable for shares of beneficial interest sold		13,172,623
Receivable for variation margin on centrally cleared swaps		5,531,872
Receivable for investment securities sold		869,250
Unrealized appreciation on interest rate swaps		698,412
Affiliated dividends receivable		45,283
Receivable due from Adviser		2,495
Total assets		4,319,239,827
Liabilities
Payable for investment securities purchased		92,699,655
Unrealized depreciation on inflation swaps		16,253,819
Dividends payable		12,635,850
Payable for floating rate notes issued*		3,510,000
Cash collateral due to broker		1,530,000
Payable for shares of beneficial interest redeemed		819,432
Other liabilities		10,686
Total liabilities		127,459,442
Net Assets	$	4,191,780,385
Composition of Net Assets
Shares of beneficial interest, at par	$	3,472
Additional paid-in capital		3,963,189,136
Distributable earnings		228,587,777
	$	4,191,780,385
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 347,187,856 common shares outstanding)	$	12.07

* Represents short-term floating rate certificates issued by tender option bond trusts (see Note H).

See notes to financial statements.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    63

STATEMENT OF OPERATIONS

Six Months Ended October 31, 2019 (unaudited)

Investment Income
Interest	$	71,579,795
Dividends—Affiliated issuers		1,027,098
Other income(a)		45,567	$	72,652,460
Expenses
Interest expense		77,371
Total expenses				77,371
Net investment income				72,575,089
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions				1,581,129
Swaps				(4,327,063	)
Net change in unrealized appreciation/depreciation of:
Investments				112,607,788
Swaps				5,977,177
Net gain on investment transactions				115,839,031
Net Increase in Net Assets from Operations			$	188,414,120

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

64    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	72,575,089		$	119,281,882
Net realized loss on investment transactions		(2,745,934	)		(2,269,690	)
Net change in unrealized appreciation/depreciation of investments		118,584,965			110,839,076
Net increase in net assets from operations		188,414,120			227,851,268
Distribution to Shareholders		(71,986,410	)		(121,039,748	)
Transactions in Shares of Beneficial Interest
Net increase		565,777,445			641,871,214
Total increase		682,205,155			748,682,734
Net Assets
Beginning of period		3,509,575,230			2,760,892,496
End of period	$	4,191,780,385		$	3,509,575,230

See notes to financial statements.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    65

STATEMENT OF CASH FLOWS

For the Six Months Ended October 31, 2019 (unaudited)

Cash flows from operating activities
Net increase in net assets from operations				$	188,414,120
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(888,969,212	)
Purchases of short-term investments		(513,305,078	)
Proceeds from disposition of long-term investments		164,379,982
Proceeds from disposition of short-term investments		595,995,695
Net realized loss on investment transactions		2,745,934
Net change in unrealized appreciation/depreciation on investment transactions		(118,584,965	)
Net accretion of bond discount and amortization of bond premium		12,551,516
Decrease in receivable for investments sold		6,028,407
Increase in interest receivable		(9,598,055	)
Decrease in affiliated dividends receivable		224,038
Decrease in receivable due from Adviser		21,685
Increase in cash collateral due from broker		(33,186,655	)
Increase in payable for investments purchased		81,310,430
Increase in cash collateral due to broker		1,530,000
Increase in other liabilities		1,321
Payments on swaps, net		(1,408,910	)
Proceeds for exchange-traded derivatives settlements		10,400,796
Total adjustments					(689,863,071	)
Net cash provided by (used in) operating activities					(501,448,951	)
Cash flows from financing activities
Subscriptions in shares of beneficial interest, net		573,391,781
Cash dividends paid		(70,346,507	)
Net cash provided by (used in) financing activities					503,045,274
Net increase in cash					1,596,323
Cash at beginning of period					—
Cash at end of period				$	1,596,323
Supplemental disclosure of cash flow information
Interest expense paid during the period	$	77,371

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in Level 3 securities throughout the period.

See notes to financial statements.

66    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2019 (unaudited)

NOTE A

Significant Accounting Policies

AB Corporate Shares (the “Trust”) was organized as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated January 26, 2004. The Trust is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Municipal Income Shares (the “Fund”).

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Trust’s Board of Trustees (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in

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NOTES TO FINANCIAL STATEMENTS (continued)

accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

68    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

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

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

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

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

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate

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NOTES TO FINANCIAL STATEMENTS (continued)

issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

4,120,144,467

$

– 0

–

$

4,120,144,467

Short-Term Municipal Notes

– 0

–

18,372,570

– 0

–

18,372,570

Short-Term Investments:

Investment Companies

58,157,898

– 0

–

– 0

–

58,157,898

Corporates – Non-Investment Grade

– 0

–

– 0

–

1,512,370

1,512,370

Liabilities:

Floating Rate Notes(a)

(3,510,000

)

– 0

–

– 0

–

(3,510,000

)

Total Investments in Securities

54,647,898

4,138,517,037

1,512,370

4,194,677,305

Other Financial Instruments(b):

Assets:

Centrally Cleared Interest Rate Swaps

– 0

–

25,612,243

– 0

–

25,612,243

(c)

Interest Rate Swaps

– 0

–

698,412

– 0

–

698,412

Liabilities:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(4,073,746

)

– 0

–

(4,073,746

)(c)

Centrally Cleared Interest Rate Swaps

– 0

–

(1,448,184

)

– 0

–

(1,448,184

)(c)

Inflation (CPI) Swaps

– 0

–

(16,253,819

)

– 0

–

(16,253,819

)

Total

$

54,647,898

$

4,143,051,943

$

1,512,370

$

4,199,212,211

+

(a) The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

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

(c) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

+ An amount of $462,035,461 for Long-Term Municipal Bonds was transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of

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NOTES TO FINANCIAL STATEMENTS (continued)

its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

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The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers, or common directors. For the year ended April 30, 2019, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were $657 and $661, respectively, with realized gain of $661.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the six months ended October 31, 2019, such reimbursement amounted to $45,567.

A summary of the Fund’s transactions in AB mutual funds for the six months ended October 31, 2019 is as follows:

Fund	Market Value 4/30/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	75,312	$	503,051	$	520,205	$	58,158	$	1,027

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an

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approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2019 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	888,969,212		$	159,172,909
U.S. government securities		– 0	–		– 0	–

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	264,187,469
Gross unrealized depreciation		(29,695,445	)
Net unrealized appreciation	$	234,492,024

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

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The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with

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the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the six months ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

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Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the six months ended October 31, 2019, the Fund held inflation (CPI) swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the six months ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/ Payable for variation margin on centrally cleared swaps	$	25,612,243	*	Receivable/ Payable for variation margin on centrally cleared swaps	$	5,521,930	*

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	Asset Derivatives			Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value		Statement of Assets and Liabilities Location		Fair Value
Interest rate contracts	Unrealized appreciation on interest rate swaps	$	698,412
Interest rate contracts					Unrealized depreciation on inflation swaps	$	16,253,819
Total		$	26,310,655			$	21,775,749

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(4,327,063	)	$	5,977,177
Total		$	(4,327,063	)	$	5,977,177

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended October 31, 2019:

Interest Rate Swaps:
Average notional amount	$	105,220,000	(a)
Inflation Swaps:
Average notional amount	$	894,432,286
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	619,578,571
Centrally Cleared Inflation Swaps:
Average notional amount	$	488,464,000	(b)

(a) Positions were open for one month during the period.

(b) Positions were open for five months during the period.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

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All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citibank, NA	$	698,412	$	(370,276	)	$	(328,136	)	$	– 0	–	$	– 0	–
Total	$	698,412	$	(370,276	)	$	(328,136	)	$	– 0	–	$	0	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Barclays Bank PLC	$	1,471,998	$	– 0	–	$	(1,471,998	)	$	– 0	–	$	– 0	–
Citibank, NA		370,276		(370,276	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA		14,411,545		– 0	–		– 0	–		(14,411,545	)		– 0	–
Total	$	16,253,819	$	(370,276	)	$	(1,471,998	)	$	(14,411,545	)	$	0	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

NOTE D

Shares of Beneficial Interest

Transactions in shares of beneficial interest were as follows:

	Shares						Amount
	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019			Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Shares sold		69,161,376			117,096,573		$	829,954,435		$	1,333,456,463
Shares redeemed		(21,994,804	)		(60,999,172	)		(264,176,990	)		(691,585,249	)
Net increase		47,166,572			56,097,401		$	565,777,445		$	641,871,214

NOTE E

Risks Involved in Investing in the Fund

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

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obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any 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.

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

The Fund may invest in the municipal securities of Puerto Rico or other US territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other US issuers of municipal securities. Puerto Rico experienced a significant downturn during the recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. Municipal securities issued by Puerto Rico issuers have extremely low ratings by the credit rating organizations. More recently Puerto Rico has defaulted on its debt payments, and if the general economic situation in Puerto Rico persists, the volatility and credit quality of Puerto Rican municipal securities will continue to be adversely affected, and the market for such securities may experience continued volatility. In addition, Puerto Rico’s difficulties have resulted in increased volatility in portions of the broader municipal securities market from time to time, and this may recur in the future.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

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Tax Risk—There is no guarantee that all of the Fund’s income will remain exempt from federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

Below Investment-Grade Securities Risk—Investments in fixed-income securities with lower ratings (“junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Leverage Risk—To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to

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purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

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Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE F

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the six months ended October 31, 2019.

NOTE G

Distributions to Shareholders

The tax character of distributions to be paid for the year ending April 30, 2020 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended April 30, 2019 and April 30, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	2,482,625	$	1,215,893
Total taxable distributions		2,482,625		1,215,893
Tax-exempt distributions		118,557,123		81,365,308
Total distributions paid	$	121,039,748	$	82,581,201

As of April 30, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	10,973,405
Accumulated capital and other losses		(2,841,255	)(a)
Unrealized appreciation/(depreciation)		115,651,426	(b)
Total accumulated earnings/(deficit)	$	123,783,576	(c)

(a) As of April 30, 2019, the Fund had a net capital loss carryforward of $2,841,255.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of tender option bonds.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the tax treatment of defaulted securities and dividends payable.

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For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2019, the Fund had a net short-term capital loss carryforward of $1,311,125 and a net long-term capital loss carryforward of $1,530,130, which may be carried forward for an indefinite period.

NOTE H

Floating Rate Notes Issued in Connection with Securities Held

The Fund may engage in tender option bond (“TOB”) transactions in which the Fund transfers a fixed rate bond (“Fixed Rate Bond”) into a Special Purpose Vehicle (the “SPV”, which is generally organized as a trust). The Fund buys a residual interest in the assets and cash flows of the SPV, often referred to as an inverse floating rate obligation (“Inverse Floater”). The SPV also issues floating rate notes (“Floating Rate Notes”) which are sold to third parties. The Floating Rate Notes pay interest at rates that generally reset weekly and their holders have the option to tender their notes to a liquidity provider for redemption at par. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the trustee transfer the Fixed Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. The SPV may also be collapsed in certain other circumstances. In accordance with U.S. GAAP requirements regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities, the Fund accounts for the transaction described above as a secured borrowing by including the Fixed Rate Bond in its portfolio of investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in its statement of assets and liabilities. Interest expense related to the Fund’s liability with respect to Floating Rate Notes is recorded as incurred. The interest expense is also included in the Fund’s expense ratio. At October 31, 2019, the amount of the Fund’s Floating Rate Notes outstanding was $3,510,000 and the related interest rate was 1.10% to 1.18%. For the six months ended October 31, 2019, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $3,510,000 and 2.23%, respectively.

The Fund may also purchase Inverse Floaters in the secondary market without first owning the underlying bond. Such an Inverse Floater is included in the Fund’s portfolio of investments but is not required to be treated as a secured borrowing and reflected in the Fund’s financial statements as a secured borrowing.

The final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”) were issued on

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December 10, 2013. The Volcker Rule precludes banking entities and their affiliates from (i) sponsoring residual interest bond programs, such as the Fund’s TOB transactions (as such programs were then previously or are presently structured), and (ii) continuing certain relationships with or certain services for residual interest bond programs. As a result, such residual interest bond trusts needed to be restructured or unwound. The effects of the Volcker Rule may make it more difficult for the Fund to maintain current or desired levels of leverage and may cause the Fund to incur additional expenses to maintain its leverage. Banking entities subject to the Volcker Rule were required to comply by July 21, 2015 for TOBs established after December 31, 2013, and by July 21, 2017 for TOBs established prior to December 31, 2013.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period		$  11.70			$  11.32			$  11.25			$  11.59			$  11.14			$  10.64
Income From Investment Operations
Net investment income(a)		.22			.45			.44			.44			.48			.51
Net realized and unrealized gain (loss) on investment transactions		.37			.38			.07			(.34	)		.46			.51
Net increase in net asset value from operations		.59			.83			.51			.10			.94			1.02
Less: Dividends
Dividends from net investment income		(.22	)		(.45	)		(.44	)		(.44	)		(.49	)		(.52	)
Net asset value, end of period		$  12.07			$  11.70			$  11.32			$  11.25			$  11.59			$  11.14
Total Return
Total investment return based on net asset value(b)		5.09	%		7.53	%		4.55	%		.87	%		8.69	%		9.73	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$4,191,780			$3,509,575			$2,760,892			$1,667,126			$1,112,540			$634,667
Ratio to average net assets of:
Expenses(c)		.00	%(d)^		.01	%		.01	%		.00	%(d)		.01	%		.01	%
Net investment income		3.72	%^		3.91	%		3.82	%		3.85	%		4.25	%		4.62	%
Portfolio turnover rate		4	%		14	%		19	%		23	%		8	%		10	%

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(c) The expense ratios, excluding interest expense are .00%, .00%, .00%, .00%, .00% and .00%, respectively.

(d) Amount is less than .005%.

^ Annualized.

See notes to financial statements.

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BOARD OF TRUSTEES

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

R.B. “Guy” Davidson III⁽²⁾, Vice President Terrance T. Hults⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company
State Street Corporation CCB/5
1 Iron Street
Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc.
1345 Avenue of the Americas
New York, NY 10105 Transfer Agent AllianceBernstein Investor Services,
Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672 Legal Counsel Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004 Independent Registered Public Accounting Firm Ernst & Young LLP
5 Times Square
New York, NY 10036

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Trust’s Portfolio are made by the Municipal Bond Investment Team. Messrs. Davidson, Hults and Norton are the investment professionals primarily responsible for the day-to-day management of the Trust’s Portfolio.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Municipal Income Shares (the “Fund”) at a meeting held on November 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    87

the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund in the periods reviewed was not unreasonable.

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Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider showing the fees payable by other fund families used in wrap fee programs similar to that of the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    89

paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

Economies of Scale

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY (continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

abfunds.com AB MUNICIPAL INCOME SHARES    ^|    91

NOTES

92    ^|    AB MUNICIPAL INCOME SHARES abfunds.com

AB MUNICIPAL INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MIS-0152-1019                

OCT    ^10.31.19

SEMI-ANNUAL REPORT

AB TAXABLE MULTI-SECTOR INCOME SHARES

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you Invest directly, to all AB Mutual Funds you hold.

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

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Taxable Multi-Sector Income Shares (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    1

SEMI-ANNUAL REPORT

December 11, 2019

This report provides management’s discussion of fund performance for AB Taxable Multi-Sector Income Shares for the semi-annual reporting period ended October 31, 2019. Please note, shares of this Fund are available only to separately managed accounts or participants in “wrap fee” programs or other investment programs approved by the Adviser.

The Fund’s investment objective is to generate income and price appreciation.

NAV RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	6 Months		12 Months
AB TAXABLE MULTI-SECTOR INCOME SHARES		2.72%		5.56%
Bloomberg Barclays US Aggregate ex Government Bond Index		5.65%		11.86%

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Aggregate ex Government Bond Index, for the six- and 12-month periods ended October 31, 2019.

During the six-month period, the Fund underperformed the benchmark. The Fund’s shorter-than-benchmark duration detracted, relative to the benchmark, as yields fell across the curve during the period. Yield-curve positioning detracted as well, as gains from an overweight to the short end of the curve were more than offset by negative returns from underweight positioning along the intermediate and long portions of the curve. Security selection also detracted, primarily from consumer non-cyclicals. Industry allocation contributed, helped most by a lack of exposure to agency mortgage-backed securities.

During the 12-month period, the Fund underperformed the benchmark. The Fund’s shorter-than-benchmark duration detracted, as yields fell almost across the entire spectrum in the period. Yield-curve positioning also detracted as rates fell, particularly underweights along the five- to 30-year portions of the yield curve. Security selection also detracted, primarily within consumer non-cyclicals. Industry allocation added to returns, helped most by a lack of exposure to agency mortgage-backed securities and gains in banking.

The Fund utilized derivatives in the form of interest rate swaps for hedging purposes and credit default swaps for investment purposes, which had an immaterial impact on absolute returns during both periods.

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MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income markets performed strongly over the six-month period ended October 31, 2019. The US Federal Reserve lowered interest rates three times, in reaction to slowing global growth, declining manufacturing output and faltering business confidence from the ongoing US-China trade conflict. The European Central Bank followed suit in September by cutting rates to a record low and announcing the resumption of quantitative easing. The Reserve Bank of Australia cut interest rates three times to a new low while the Bank of Japan issued guidance for low interest rates well into 2020. The Bank of Canada maintained interest rates, as the country’s overall economy remained in balance. Central bankers in numerous other developed and emerging markets also lowered interest rates and signaled further monetary easing and potential fiscal stimulus measures to boost faltering demand. Inflation remains below target in most developed countries and is falling in emerging markets.

Long-dated developed-market treasury securities and emerging-market sovereign debt were strong performers given their interest-rate sensitivity. Investment-grade corporate bond returns were also robust, and spreads remained near historical lows, outperforming high-yield bonds. At the end of the period, positive signs emerged of a partial US-China trade agreement and an increased likelihood of the UK leaving the European Union at the end of January 2020 with a negotiated deal. The US dollar remained strong as a safe haven during a period of increased global growth uncertainty, but weakened in October against most developed- and emerging-market currencies.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek attractively priced securities through top-down and bottom-up research, while mitigating overall risk. The Team invests primarily in single-sector, investment-grade issues of global corporates, but has leeway to invest in below investment-grade bonds as well.

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund may invest in a broad range of securities in both developed and emerging markets. The Fund may invest across all fixed-income sectors, including corporate and US and non-US government securities. The Fund may invest up to 50% of its assets in below investment-grade bonds (“junk bonds”). The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term.

The Fund may invest without limit in US dollar-denominated foreign fixed-income securities and may invest up to 50% of its assets in

(continued on next page)

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    3

non-US dollar-denominated foreign fixed-income securities. These investments may include, in each case, developed- and emerging-market debt securities.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risk and return characteristics as well as the securities’ impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may also invest in mortgage-related and other asset-backed securities, loan participations, inflation-indexed securities, structured securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. The Fund may use leverage for investment purposes. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements, forward contracts and dollar rolls. The Fund may invest, without limit, in derivatives, such as options, futures contracts, forwards or swap agreements.

Currencies can have a dramatic effect on returns of non-US dollar-denominated fixed-income securities, significantly adding to returns in some years and greatly diminishing them in others. The Adviser evaluates currency and fixed-income positions separately and may seek to hedge the currency exposure resulting from the Fund’s fixed-income securities positions when it finds the currency exposure unattractive. To hedge a portion of its currency risk, the Fund may from time to time invest in currency-related derivatives, including forward currency exchange contracts, futures contracts, options on futures contracts, swaps and options. The Adviser may also seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Aggregate ex Government Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund. The Bloomberg Barclays US Aggregate ex Government Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any 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.

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.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of 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 Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

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DISCLOSURES AND RISKS (continued)

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Emerging-Market Risk: Investments in emerging-market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

Currency Risk: Fluctuations in currency exchange risk may negatively affect the value of the Fund’s investments or reduce its returns.

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by nongovernmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

6    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

DISCLOSURES AND RISKS (continued)

An Important Note About Historical Performance

The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    7

HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	NAV Returns
1 Year		5.56%
5 Years		2.17%
Since Inception1		2.44%

AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2019 (unaudited)

	NAV Returns
1 Year		5.25%
5 Years		2.13%
Since Inception1		2.42%

The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.00% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses, except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.

1 Inception date: 9/15/2010.

8    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*			Annualized Expense Ratio*
Actual	$	1,000	$	1,027.20	$	– 0	–		0.00	%
Hypothetical**	$	1,000	$	1,025.14	$	– 0	–		0.00	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    9

PORTFOLIO SUMMARY

October 31, 2019 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $247.5

1 All data are as of October 31, 2019. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details).

10    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2019 (unaudited)

	Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 83.6%
Industrial – 50.6%
Basic – 3.1%
Dow Chemical Co. (The) 3.00%, 11/15/22	$	2,110	$	2,160,893
DuPont de Nemours, Inc. 3.766%, 11/15/20		1,550		1,578,629
Glencore Finance Canada Ltd. 4.95%, 11/15/21(a)		505		529,381
Glencore Funding LLC 3.00%, 10/27/22(a)		225		227,660
Packaging Corp. of America 2.45%, 12/15/20		1,010		1,013,525
PPG Industries, Inc. 3.60%, 11/15/20		2,000		2,032,200
				7,542,288
Capital Goods – 5.9%
Boeing Co. (The) 2.70%, 5/01/22		1,150		1,168,504
2.80%, 3/01/23		800		818,128
Caterpillar Financial Services Corp. 1.90%, 9/06/22		700		700,126
2.95%, 2/26/22		1,150		1,178,520
CNH Industrial Capital LLC 4.375%, 11/06/20		1,900		1,940,261
General Dynamics Corp. 3.00%, 5/11/21		1,000		1,018,220
General Electric Co. Series G 3.15%, 9/07/22		1,100		1,120,834
Ingersoll-Rand Global Holding Co., Ltd. 2.90%, 2/21/21		1,015		1,024,764
John Deere Capital Corp. 1.95%, 6/13/22		636		637,851
2.30%, 6/07/21		1,100		1,108,316
Northrop Grumman Corp. 2.08%, 10/15/20		1,000		1,001,300
United Technologies Corp. 1.50%, 11/01/19		525		525,000
4.50%, 4/15/20		300		303,300
Waste Management, Inc. 2.90%, 9/15/22		2,000		2,056,580
				14,601,704

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Communications - Media – 5.2%
CBS Corp. 2.90%, 6/01/23	$	1,450	$	1,478,174
3.375%, 3/01/22		1,100		1,126,928
Charter Communications Operating LLC/Charter Communications Operating Capital 4.464%, 7/23/22		1,750		1,839,425
Comcast Corp. 1.625%, 1/15/22		1,200		1,198,944
3.125%, 7/15/22		1,365		1,414,604
Discovery Communications LLC 3.45%, 3/15/25		1,000		1,035,060
Omnicom Group, Inc./Omnicom Capital, Inc. 3.625%, 5/01/22		1,000		1,036,020
Time Warner Cable LLC 4.00%, 9/01/21		5		5,126
Viacom, Inc. 4.25%, 9/01/23		1,000		1,062,830
Walt Disney Co. (The) 2.362% (LIBOR 3 Month + 0.25%), 9/01/21(b)		725		726,834
3.00%, 9/15/22(a)		1,800		1,860,228
4.50%, 2/15/21(a)		105		108,538
				12,892,711
Communications - Telecommunications – 1.9%
AT&T, Inc. 3.312% (LIBOR 3 Month + 1.18%), 6/12/24(b)		610		620,394
3.80%, 3/15/22		515		535,924
Crown Castle International Corp. 2.25%, 9/01/21		1,375		1,378,809
Telefonica Emisiones SA 5.462%, 2/16/21		45		46,931
Verizon Communications, Inc. 2.45%, 11/01/22		1,975		2,003,302
3.45%, 3/15/21		200		204,286
				4,789,646
Consumer Cyclical - Automotive – 2.4%
BMW Finance NV 2.25%, 8/12/22(a)		675		677,734
BMW US Capital LLC 3.40%, 8/13/21(a)		1,065		1,091,891
Daimler Finance North America LLC 2.45%, 5/18/20(a)		1,000		1,002,660

12    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ford Motor Credit Co. LLC 2.425%, 6/12/20	$	400	$	399,608
3.336%, 3/18/21		325		326,950
General Motors Co. 3.009% (LIBOR 3 Month + 0.80%), 8/07/20(b)		125		125,207
General Motors Financial Co., Inc. 2.45%, 11/06/20		220		220,117
3.15%, 1/15/20		100		100,165
Harley-Davidson Financial Services, Inc. 3.55%, 5/21/21(a)		1,025		1,042,650
Nissan Motor Acceptance Corp. 2.15%, 9/28/20(a)		455		454,641
Toyota Motor Credit Corp. Series G 2.20%, 1/10/20		500		500,210
				5,941,833
Consumer Cyclical - Other – 1.3%
DR Horton, Inc. 2.55%, 12/01/20		1,000		1,003,530
Marriott International, Inc./MD 2.30%, 1/15/22		1,115		1,122,470
Series Y 2.738% (LIBOR 3 Month + 0.60%), 12/01/20(b)		1,110		1,113,619
				3,239,619
Consumer Cyclical - Restaurants – 0.7%
Starbucks Corp. 2.10%, 2/04/21		100		100,254
2.20%, 11/22/20		477		478,498
2.70%, 6/15/22		1,025		1,044,823
				1,623,575
Consumer Cyclical - Retailers – 0.4%
Walmart, Inc. 3.125%, 6/23/21		1,015		1,038,315
Consumer Non-Cyclical – 13.2%
Abbott Laboratories 2.90%, 11/30/21		2,000		2,040,280
AbbVie, Inc. 2.30%, 5/14/21		650		652,892
2.50%, 5/14/20		17		17,026
3.375%, 11/14/21		1,000		1,025,880
Allergan Funding SCS 3.00%, 3/12/20		610		611,360

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    13

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Altria Group, Inc. 2.625%, 1/14/20	$	120	$	120,066
2.85%, 8/09/22		400		405,932
4.75%, 5/05/21		1,000		1,038,770
AmerisourceBergen Corp. 3.50%, 11/15/21		1,550		1,587,355
Archer-Daniels-Midland Co. 3.375%, 3/15/22		1,110		1,144,632
Baxalta, Inc. 3.60%, 6/23/22		23		23,496
Becton Dickinson and Co. 2.675%, 12/15/19		209		209,061
Biogen, Inc. 3.625%, 9/15/22		54		56,421
Bristol-Myers Squibb Co. 2.60%, 5/16/22(a)		600		611,130
Bunge Ltd. Finance Corp. 3.50%, 11/24/20		1,375		1,390,317
Cardinal Health, Inc. 2.616%, 6/15/22		1,750		1,771,192
Celgene Corp. 2.25%, 8/15/21		700		701,967
2.875%, 2/19/21		480		484,699
Cigna Corp. 3.40%, 9/17/21		1,615		1,654,681
4.75%, 11/15/21(a)		300		315,303
CommonSpirit Health 2.76%, 10/01/24		1,000		1,016,270
Conagra Brands, Inc. 2.512% (LIBOR 3 Month + 0.50%), 10/09/20(b)		1,000		1,000,710
Constellation Brands, Inc. 2.00%, 11/07/19		1,055		1,054,968
CVS Health Corp. 2.125%, 6/01/21		400		400,676
2.75%, 12/01/22		500		508,300
3.35%, 3/09/21		400		407,328
3.70%, 3/09/23		600		626,034
Gilead Sciences, Inc. 1.95%, 3/01/22		565		566,390
2.55%, 9/01/20		1,000		1,005,390
Keurig Dr Pepper, Inc. 3.551%, 5/25/21		1,300		1,330,186
Kraft Heinz Foods Co. 2.80%, 7/02/20		13		13,026
Kroger Co. (The) 6.15%, 1/15/20		150		151,164

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Laboratory Corp. of America Holdings 2.625%, 2/01/20	$	430	$	430,443
Medtronic, Inc. 3.15%, 3/15/22		40		41,254
Molson Coors Brewing Co. 2.25%, 3/15/20		375		374,985
PepsiCo, Inc. 2.00%, 4/15/21		1,000		1,003,600
Philip Morris International, Inc. 1.875%, 11/01/19		1,055		1,055,000
Reynolds American, Inc. 4.00%, 6/12/22		100		104,044
6.875%, 5/01/20		1,000		1,022,980
Thermo Fisher Scientific, Inc. 3.00%, 4/15/23		1,340		1,382,880
Tyson Foods, Inc. 2.25%, 8/23/21		1,160		1,165,742
2.682% (LIBOR 3 Month + 0.55%), 6/02/20(b)		475		475,708
4.50%, 6/15/22		530		560,634
Zimmer Biomet Holdings, Inc. 2.914% (LIBOR 3 Month + 0.75%), 3/19/21(b)		1,055		1,054,715
				32,614,887
Energy – 5.4%
BP Capital Markets America, Inc. 3.245%, 5/06/22		1,775		1,832,137
Energy Transfer Operating LP 4.25%, 3/15/23		1,000		1,047,250
4.65%, 6/01/21		10		10,299
Enterprise Products Operating LLC 2.85%, 4/15/21		1,060		1,072,921
4.05%, 2/15/22		615		642,140
5.20%, 9/01/20		55		56,456
Kinder Morgan Energy Partners LP 3.95%, 9/01/22		99		103,192
4.15%, 3/01/22		37		38,613
5.30%, 9/15/20		5		5,132
Kinder Morgan, Inc./DE 3.05%, 12/01/19		435		435,296
Marathon Petroleum Corp. 5.125%, 3/01/21		48		49,965
MPLX LP 3.202% (LIBOR 3 Month + 1.10%), 9/09/22(b)		1,250		1,254,575
ONEOK, Inc. 4.25%, 2/01/22		1,542		1,599,948

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Phillips 66 4.30%, 4/01/22	$	90	$	95,004
Schlumberger Finance Canada Ltd. 2.20%, 11/20/20(a)		1,000		1,003,850
Schlumberger Holdings Corp. 3.90%, 5/17/28(a)		85		89,663
TransCanada PipeLines Ltd. 9.875%, 1/01/21		1,000		1,087,770
Western Midstream Operating LP 4.00%, 7/01/22		1,370		1,392,372
Williams Cos., Inc. (The) 3.60%, 3/15/22		425		437,338
4.125%, 11/15/20		1,119		1,136,613
				13,390,534
Services – 2.2%
Amazon.com, Inc. 2.50%, 11/29/22		600		612,336
eBay, Inc. 2.15%, 6/05/20		830		830,249
Global Payments, Inc. 2.65%, 2/15/25		835		846,682
Mastercard, Inc. 2.00%, 11/21/21		1,590		1,598,347
Moody’s Corp. 3.25%, 6/07/21		200		203,356
4.50%, 9/01/22		1,300		1,380,002
				5,470,972
Technology – 7.8%
Analog Devices, Inc. 2.875%, 6/01/23		685		700,330
2.95%, 1/12/21		1,255		1,267,073
Apple, Inc. 1.70%, 9/11/22		1,850		1,850,555
Baidu, Inc. 2.875%, 7/06/22		375		377,226
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.00%, 1/15/22		625		633,044
Broadcom, Inc. 3.125%, 10/15/22(a)		1,995		2,031,808
Fidelity National Information Services, Inc. 2.25%, 8/15/21		1,155		1,158,939
Hewlett Packard Enterprise Co. 2.25%, 4/01/23		1,500		1,500,090
3.60%, 10/15/20		75		76,000

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Honeywell International, Inc. 2.15%, 8/08/22	$	1,300	$	1,313,091
IBM Credit LLC 3.60%, 11/30/21		1,105		1,143,984
International Business Machines Corp. 2.85%, 5/13/22		500		511,345
2.875%, 11/09/22		200		205,442
Lam Research Corp. 2.80%, 6/15/21		1,583		1,604,560
Oracle Corp. 1.90%, 9/15/21		1,175		1,177,726
3.625%, 7/15/23		750		794,580
QUALCOMM, Inc. 2.60%, 1/30/23		600		610,746
3.00%, 5/20/22		1,550		1,592,532
VMware, Inc. 2.30%, 8/21/20		800		800,688
				19,349,759
Transportation - Railroads – 0.4%
Union Pacific Corp. 3.20%, 6/08/21		1,040		1,061,840
Transportation - Services – 0.7%
Ryder System, Inc. 3.45%, 11/15/21		500		513,075
3.50%, 6/01/21		100		102,262
United Parcel Service, Inc. 2.05%, 4/01/21		1,050		1,054,326
				1,669,663
				125,227,346
Financial Institutions – 26.4%
Banking – 19.9%
American Express Co. 2.20%, 10/30/20		200		200,554
2.75%, 5/20/22		265		270,093
American Express Credit Corp. 2.375%, 5/26/20		1,500		1,503,120
Bank of America Corp. 2.756% (LIBOR 3 Month + 0.65%), 6/25/22(b)		785		787,920
2.881%, 4/24/23		1,640		1,667,650
3.124%, 1/20/23		135		137,761
5.00%, 5/13/21		30		31,339
5.875%, 1/05/21		40		41,808
Bank of New York Mellon Corp. (The) 1.95%, 8/23/22		1,125		1,127,261

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
2.661%, 5/16/23	$	750	$	760,185
Bank of Nova Scotia (The) 2.00%, 11/15/22		1,150		1,147,942
2.375%, 1/18/23		800		808,472
BB&T Corp. 2.15%, 2/01/21		200		200,622
3.20%, 9/03/21		830		847,754
BNP Paribas SA 2.375%, 5/21/20		1,000		1,002,360
BPCE SA 2.65%, 2/03/21		1,000		1,008,110
Canadian Imperial Bank of Commerce 2.10%, 10/05/20		1,000		1,002,190
Capital One Financial Corp. 2.40%, 10/30/20		220		220,882
2.50%, 5/12/20		230		230,488
4.75%, 7/15/21		20		20,886
Capital One NA 2.15%, 9/06/22		750		750,270
2.95%, 7/23/21		1,100		1,116,335
Citibank NA 2.125%, 10/20/20		300		300,705
3.165%, 2/19/22		675		684,713
3.40%, 7/23/21		1,115		1,142,184
Citigroup, Inc. 2.876%, 7/24/23		985		1,002,198
Commonwealth Bank of Australia 2.25%, 3/10/20(a)		1,000		1,001,150
Danske Bank A/S 2.80%, 3/10/21(a)		1,070		1,078,068
Discover Bank 2.45%, 9/12/24		350		351,005
3.10%, 6/04/20		255		256,341
3.35%, 2/06/23		1,125		1,161,056
Fifth Third Bancorp 3.50%, 3/15/22		53		54,720
Fifth Third Bank 2.20%, 10/30/20		1,750		1,754,200
Goldman Sachs Group, Inc. (The) 2.35%, 11/15/21		48		48,165
2.60%, 4/23/20		200		200,550
2.876%, 10/31/22		200		202,810
2.905%, 7/24/23		450		457,227
2.908%, 6/05/23		300		304,743
3.00%, 4/26/22		1,050		1,063,850
3.20%, 2/23/23		200		206,166
5.75%, 1/24/22		195		210,239

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series D 6.00%, 6/15/20	$	40	$	40,961
HSBC Bank USA NA 4.875%, 8/24/20		1,000		1,022,600
HSBC Holdings PLC 4.00%, 3/30/22		150		156,867
5.10%, 4/05/21		65		67,747
JPMorgan Chase & Co. 2.40%, 6/07/21		225		226,586
2.776%, 4/25/23		2,045		2,075,430
4.50%, 1/24/22		95		100,100
KeyBank NA/Cleveland OH 3.35%, 6/15/21		1,020		1,041,961
Lloyds Banking Group PLC 3.10%, 7/06/21		585		594,284
Manufacturers & Traders Trust Co. 2.05%, 8/17/20		355		355,234
Mitsubishi UFJ Financial Group, Inc. 2.95%, 3/01/21		215		217,264
3.535%, 7/26/21		850		869,584
Mizuho Financial Group, Inc. 2.632%, 4/12/21(a)		220		221,441
Morgan Stanley 2.625%, 11/17/21		1,760		1,779,642
Series G 5.50%, 7/28/21		102		107,932
Nationwide Building Society 4.363%, 8/01/24(a)		200		212,016
PNC Bank NA 2.30%, 6/01/20		250		250,485
2.45%, 11/05/20		250		251,505
PNC Financial Services Group, Inc. (The) 5.125%, 2/08/20		30		30,239
Regions Bank 3.374%, 8/13/21		1,165		1,176,359
Royal Bank of Canada Series G 2.80%, 4/29/22		1,115		1,137,724
Santander Holdings USA, Inc. 3.244%, 10/05/26(a)		1,615		1,619,360
Santander UK PLC 3.40%, 6/01/21		1,025		1,046,320
SunTrust Bank/Atlanta GA 3.525%, 10/26/21		1,125		1,140,694
Synchrony Bank 3.65%, 5/24/21		1,025		1,044,127

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Toronto-Dominion Bank (The) 3.25%, 6/11/21	$	1,040	$	1,062,578
US Bank NA/Cincinnati OH 2.05%, 10/23/20		440		440,937
3.15%, 4/26/21		550		560,439
Wells Fargo & Co. 2.50%, 3/04/21		200		201,376
Wells Fargo Bank NA 2.082%, 9/09/22		350		349,692
2.897%, 5/27/22		2,125		2,150,925
Westpac Banking Corp. 2.15%, 3/06/20		388		388,318
Zions Bancorp NA 3.50%, 8/27/21		1,055		1,079,866
				49,384,685
Finance – 1.3%
AIG Global Funding 2.30%, 7/01/22(a)		500		501,840
3.35%, 6/25/21(a)		600		612,480
Air Lease Corp. 2.25%, 1/15/23		1,000		997,150
2.50%, 3/01/21		1,015		1,019,750
				3,131,220
Insurance – 1.5%
Anthem, Inc. 2.50%, 11/21/20		1,070		1,075,853
Metropolitan Life Global Funding I 2.05%, 6/12/20(a)		520		520,280
New York Life Global Funding 1.95%, 9/28/20(a)		1,000		1,000,920
Prudential Financial, Inc. 4.50%, 11/15/20		85		87,183
UnitedHealth Group, Inc. 1.95%, 10/15/20		465		465,707
3.15%, 6/15/21		555		566,344
				3,716,287
Other Finance – 0.5%
Enterprise Community Loan Fund, Inc. Series 2018 3.685%, 11/01/23		1,180		1,246,387
REITS – 3.2%
American Tower Corp. 2.25%, 1/15/22		675		677,282
3.00%, 6/15/23		575		589,841
3.50%, 1/31/23		600		624,450

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kimco Realty Corp. 3.20%, 5/01/21	$	1,370	$	1,390,879
3.40%, 11/01/22		200		206,996
Realty Income Corp. 3.25%, 10/15/22		1,350		1,397,209
Simon Property Group LP 2.50%, 9/01/20		560		561,747
Welltower, Inc. 4.00%, 6/01/25		1,000		1,081,020
Weyerhaeuser Co. 3.25%, 3/15/23		1,400		1,438,094
				7,967,518
				65,446,097
Utility – 6.6%
Electric – 6.6%
American Electric Power Co., Inc. 2.15%, 11/13/20		1,050		1,051,921
Berkshire Hathaway Energy Co. 2.375%, 1/15/21		650		653,815
CenterPoint Energy, Inc. 2.50%, 9/01/22		1,855		1,871,417
DTE Energy Co. Series B 3.30%, 6/15/22		2,000		2,054,280
Duke Energy Florida LLC 2.10%, 12/15/19		125		125,004
Edison International 2.125%, 4/15/20		555		553,052
Entergy Corp. 4.00%, 7/15/22		78		81,569
Eversource Energy 2.50%, 3/15/21		2,180		2,192,404
Exelon Corp. 2.45%, 4/15/21		548		551,250
2.85%, 6/15/20		145		145,596
Exelon Generation Co. LLC 2.95%, 1/15/20		604		604,556
Florida Power & Light Co. 2.639% (LIBOR 3 Month + 0.40%), 5/06/22(b)		400		400,000
National Rural Utilities Cooperative Finance Corp. 2.90%, 3/15/21		1,673		1,695,870
NextEra Energy Capital Holdings, Inc. 2.403%, 9/01/21		778		784,255
2.80%, 1/15/23		600		612,384

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pinnacle West Capital Corp. 2.25%, 11/30/20	$	1,000	$	1,001,570
Public Service Enterprise Group, Inc. 2.65%, 11/15/22		1,850		1,880,266
TECO Finance, Inc. 5.15%, 3/15/20		10		10,102
				16,269,311
Total Corporates – Investment Grade (cost $205,251,335)				206,942,754
ASSET-BACKED SECURITIES – 4.7%
Autos - Fixed Rate – 2.1%
CarMax Auto Owner Trust Series 2017-4, Class A3 2.11%, 10/17/22		1,288		1,288,665
Ford Credit Floorplan Master Owner Trust Series 2015-2, Class A1 1.98%, 1/15/22		94		93,974
Series 2017-1, Class A1 2.07%, 5/15/22		175		175,053
Series 2017-2, Class A1 2.16%, 9/15/22		1,000		1,001,633
GM Financial Automobile Leasing Trust Series 2017-3, Class A3 2.01%, 11/20/20		217		217,460
GM Financial Consumer Automobile Receivables Trust Series 2017-3A, Class A3 1.97%, 5/16/22(a)		1,039		1,039,304
Honda Auto Receivables Owner Trust Series 2017-3, Class A4 1.98%, 11/20/23		400		400,201
USAA Auto Owner Trust Series 2017-1, Class A4 1.88%, 9/15/22		1,000		999,558
				5,215,848
Other ABS - Fixed Rate – 1.4%
SBA Tower Trust Series 2015-1A, Class C 3.156%, 10/08/20(a)(c)		67		67,123
SoFi Consumer Loan Program LLC Series 2016-3, Class A 3.05%, 12/26/25(a)(c)		36		35,693
Series 2017-2, Class A 3.28%, 2/25/26(a)(c)		210		212,058

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2017-5, Class A2 2.78%, 9/25/26(a)(c)	$	845	$	847,706
SoFi Consumer Loan Program Trust Series 2018-3, Class A2 3.67%, 8/25/27(a)(c)		1,000		1,013,626
Verizon Owner Trust Series 2017-3A, Class A1A 2.06%, 4/20/22(a)(c)		1,260		1,260,379
				3,436,585
Credit Cards - Fixed Rate – 1.2%
Cabela’s Credit Card Master Note Trust Series 2013-1A, Class A 2.71%, 2/17/26(a)		120		122,431
Chase Issuance Trust Series 2014-A2, Class A2 2.77%, 3/15/23		105		106,304
World Financial Network Credit Card Master Trust Series 2017-C, Class A 2.31%, 8/15/24		1,400		1,403,860
Series 2018-B, Class A 3.46%, 7/15/25		1,350		1,386,158
				3,018,753
Total Asset-Backed Securities (cost $11,607,918)				11,671,186
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.3%
Non-Agency Floating Rate CMBS – 1.3%
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 2.914% (LIBOR 1 Month + 1.00%), 11/15/33(a)(b)		1,000		1,000,613
DBWF Mortgage Trust Series 2018-GLKS, Class A 2.876% (LIBOR 1 Month + 1.03%), 11/19/35(a)(b)		1,000		1,001,297
Invitation Homes Trust Series 2018-SFR4, Class A 2.989% (LIBOR 1 Month + 1.10%), 1/17/38(a)(b)		341		341,103
Starwood Retail Property Trust Series 2014-STAR, Class A 3.134% (LIBOR 1 Month + 1.22%), 11/15/27(a)(b)		975		973,222
				3,316,235

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Non-Agency Fixed Rate CMBS – 0.9%
Citigroup Commercial Mortgage Trust Series 2015-GC29, Class A2 2.674%, 4/10/48	$	872	$	872,258
GS Mortgage Securities Trust Series 2013-G1, Class A1 2.059%, 4/10/31(a)		401		399,223
JP Morgan Chase Commercial Mortgage Securities Trust Series 2012-LC9, Class AS 3.353%, 12/15/47(a)		750		772,773
LSTAR Commercial Mortgage Trust Series 2016-4, Class A2 2.579%, 3/10/49(a)		100		100,339
				2,144,593
Agency CMBS – 0.1%
Federal Home Loan Mortgage Corp. Series K021, Class A1 1.603%, 1/25/22		63		63,067
Series K025, Class A1 1.875%, 4/25/22		80		79,470
				142,537
Total Commercial Mortgage-Backed Securities (cost $5,572,780)				5,603,365
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 1.6%
United States – 1.6%
Chicago Housing Authority Series 2018B 3.324%, 1/01/22		1,000		1,028,520
Pennsylvania Turnpike Commission Series 2019E 2.556%, 12/01/25(d)		760		765,236
Regional Transportation Authority Series 2018A 3.013%, 5/29/20		1,000		1,006,370
State of Connecticut Series 2018A 3.75%, 9/15/20		1,100		1,116,863
Total Local Governments – US Municipal Bonds (cost $3,865,601)				3,916,989

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 1.6%
United States – 1.6%
U.S. Treasury Notes 2.25%, 4/15/22 (cost $3,828,270)	$	3,800	$	3,865,312
COLLATERALIZED MORTGAGE OBLIGATIONS – 1.5%
Risk Share Floating Rate – 1.4%
Bellemeade Re Ltd. Series 2018-2A, Class M1B 3.173% (LIBOR 1 Month + 1.35%), 8/25/28(a)(b)		800		801,579
Series 2019-3A, Class M1B 3.423% (LIBOR 1 Month + 1.60%), 7/25/29(a)(b)		383		383,204
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 6.223% (LIBOR 1 Month + 4.40%), 1/25/24(b)		735		796,203
Series 2016-C01, Class 1M2 8.573% (LIBOR 1 Month + 6.75%), 8/25/28(b)		480		529,106
Series 2016-C02, Class 1M2 7.823% (LIBOR 1 Month + 6.00%), 9/25/28(b)		651		709,330
Series 2016-C03, Class 1M1 3.823% (LIBOR 1 Month + 2.00%), 10/25/28(b)		81		81,570
STACR Trust Series 2019-DNA3, Class M2 3.873% (LIBOR 1 Month + 2.05%), 7/25/49(a)(b)		84		83,680
				3,384,672
Agency Fixed Rate – 0.1%
Federal Home Loan Mortgage Corp. REMICs Series 4029, Class LD 1.75%, 1/15/27		272		269,884
Series 4459, Class CA 5.00%, 12/15/34		61		65,421
				335,305
Total Collateralized Mortgage Obligations (cost $3,802,110)				3,719,977

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
SHORT-TERM INVESTMENTS – 5.3%
U.S. Treasury Bills – 3.4%
U.S. Treasury Bill Zero Coupon, 11/21/19 (cost $8,491,067)	$	8,500	$	8,492,846
	Shares
Investment Companies – 1.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.78%(e)(f)(g) (cost $4,682,007)		4,682,007		4,682,007
Total Short-Term Investments (cost $13,173,074)				13,174,853
Total Investments – 100.6% (cost $247,101,088)				248,894,436
Other assets less liabilities – (0.6)%				(1,379,560	)
Net Assets – 100.0%			$	247,514,876

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	11,250		12/06/20	3 Month LIBOR	2.985%	Quarterly/ Semi-Annual	$	256,371	$	—	$	256,371
USD	15,000		4/18/21	3 Month LIBOR	2.511%	Quarterly/ Semi-Annual		194,449		—		194,449
							$	450,820	$	—	$	450,820

CREDIT DEFAULT SWAPS (see Note C)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	)%		Monthly		3.40	%		USD	105	$	2,102	$	3,622	$	(1,520	)

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PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2019			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
JP Morgan Securities, LLC
CDX-CMBX.NA.BBB-. Series 9, 9/17/58*		(3.00	) %		Monthly		3.40	%		USD	1,560	$	31,356		$	140,253		$	(108,897	)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	32		(2,726	)		(3,205	)		479
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	59		(5,027	)		(8,114	)		3,087
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	180		(15,321	)		(17,752	)		2,431
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	335		(28,542	)		(33,032	)		4,490
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	18		(1,533	)		(1,819	)		286
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	224		(19,066	)		(22,669	)		3,603
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00	%		Monthly		6.42			USD	291		(24,794	)		(27,851	)		3,057
JP Morgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00			Monthly		6.42			USD	1,716		(146,203	)		(262,035	)		115,832
												$	(209,754	)	$	(232,602	)	$	22,848

* Termination date

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $28,270,045 or 11.4% of net assets.

(b) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(c) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(d) When-Issued or delayed delivery security.

(e) Affiliated investments.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

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

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

Glossary:

ABS – Asset-Backed Securities

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rates

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

See notes to financial statements.

28    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2019 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $242,419,081)	$	244,212,429
Affiliated issuers (cost $4,682,007)		4,682,007
Cash		4,426
Cash collateral due from broker		147,644
Interest receivable		1,757,422
Receivable for shares of beneficial interest sold		339,985
Market value on credit default swaps (net premiums paid $143,875)		33,458
Receivable for variation margin on centrally cleared swaps		30,531
Affiliated dividends receivable		4,040
Receivable due from Adviser		223
Total assets		251,212,165
Liabilities
Payable for investment securities purchased		2,622,729
Dividends payable		562,335
Payable for shares of beneficial interest redeemed		269,013
Market value on credit default swaps (net premiums received $376,477)		243,212
Total liabilities		3,697,289
Net Assets	$	247,514,876
Composition of Net Assets
Shares of beneficial interest, at par	$	249
Additional paid-in capital		245,998,638
Distributable earnings		1,515,989
	$	247,514,876
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 24,880,992 common shares outstanding)	$	9.95

See notes to financial statements.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    29

STATEMENT OF OPERATIONS

Six Months Ended October 31, 2019 (unaudited)

Investment Income
Interest	$	2,551,172
Dividends—Affiliated issuers		49,023
Other income(a)		2,378
Total investment income			$	2,602,573
Realized and Unrealized Gain on Investment Transactions
Net realized gain on:
Investment transactions				497,076
Swaps				189,674
Net change in unrealized appreciation/depreciation of:
Investments				1,474,448
Swaps				200,798
Net gain on investment transactions				2,361,996
Net Increase in Net Assets from Operations			$	4,964,569

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

30    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,602,573		$	3,852,818
Net realized gain (loss) on investment transactions		686,750			(71,236	)
Net change in unrealized appreciation/depreciation of investments		1,675,246			2,150,372
Net increase in net assets from operations		4,964,569			5,931,954
Distribution to Shareholders		(2,698,975	)		(3,965,321	)
Transactions in Shares of Beneficial Interest
Net increase		90,949,463			22,704,832
Total increase		93,215,057			24,671,465
Net Assets
Beginning of period		154,299,819			129,628,354
End of period	$	247,514,876		$	154,299,819

See notes to financial statements.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    31

NOTES TO FINANCIAL STATEMENTS

October 31, 2019 (unaudited)

NOTE A

Significant Accounting Policies

AB Corporate Shares (the “Trust”) was organized as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated January 26, 2004. The Trust is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Taxable Multi-Sector Income Shares (the “Fund”).

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Trust’s Board of Trustees (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on

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NOTES TO FINANCIAL STATEMENTS (continued)

which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values

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NOTES TO FINANCIAL STATEMENTS (continued)

many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

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

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

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

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

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of

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NOTES TO FINANCIAL STATEMENTS (continued)

delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

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

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Investment Grade

$

– 0

–

$

206,942,754

$

– 0

–

$

206,942,754

Asset-Backed Securities

– 0

–

8,234,601

3,436,585

11,671,186

Commercial Mortgage-Backed Securities

– 0

–

5,603,365

– 0

–

5,603,365

Local Governments – US Municipal Bonds

– 0

–

3,916,989

– 0

–

3,916,989

Governments – Treasuries

– 0

–

3,865,312

– 0

–

3,865,312

Collateralized Mortgage Obligations

– 0

–

3,719,977

– 0

–

3,719,977

Short-Term Investments:

U.S. Treasury Bills

– 0

–

8,492,846

– 0

–

8,492,846

Investment Companies

4,682,007

– 0

–

– 0

–

4,682,007

Total Investments in Securities

4,682,007

240,775,844

3,436,585

248,894,436

Other Financial Instruments(a):

Assets:

Centrally Cleared Interest Rate Swaps

– 0

–

450,820

– 0

–

450,820

(b)

Credit Default Swaps

– 0

–

33,458

– 0

–

33,458

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Credit Default Swaps	$	– 0	–	$	(243,212	)	$	– 0	–	$	(243,212	)
Total	$	4,682,007		$	241,016,910		$	3,436,585		$	249,135,502

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

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) of exchange-traded derivatives as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Asset- Backed Securities			Commercial Mortgage- Backed Securities			Total
Balance as of 4/30/19	$	3,694,807		$	1,000,090		$	4,694,897
Accrued discounts/(premiums)		56			– 0	–		56
Realized gain (loss)		141			– 0	–		141
Change in unrealized appreciation/depreciation		19,588			– 0	–		19,588
Purchases		– 0	–		– 0	–		– 0	–
Sales/Paydowns		(278,007	)		– 0	–		(278,007	)
Transfers in to Level 3		– 0	–		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		(1,000,090	)		(1,000,090	)(a)
Balance as of 10/31/19	$	3,436,585		$	– 0	–	$	3,436,585
Net change in unrealized appreciation/depreciation from investments held as of 10/31/19(b)	$	19,588		$	– 0	–	$	19,588

(a) There were de minimis transfers under 1% of net assets during the reporting period.

(b) The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

As of October 31, 2019, all Level 3 securities were priced by third party vendors.

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax

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NOTES TO FINANCIAL STATEMENTS (continued)

positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the Advisory Agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The Advisory Agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

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NOTES TO FINANCIAL STATEMENTS (continued)

AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the six months ended October 31, 2019, such reimbursement amounted to $2,320.

A summary of the Fund’s transactions in AB mutual funds for the six months ended October 31, 2019 is as follows:

Fund	Market Value 4/30/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	2,711	$	98,945	$	96,974	$	4,682	$	49

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

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NOTES TO FINANCIAL STATEMENTS (continued)

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2019 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	117,063,165	$	23,716,561
U.S. government securities		42,070,991		49,811,875

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	2,502,581
Gross unrealized depreciation		(235,565	)
Net unrealized appreciation	$	2,267,016

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in

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NOTES TO FINANCIAL STATEMENTS (continued)

specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker,

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NOTES TO FINANCIAL STATEMENTS (continued)

as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the six months ended October 31, 2019, the Fund held interest rate swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to

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NOTES TO FINANCIAL STATEMENTS (continued)

which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

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During the six months ended October 31, 2019, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the six months ended October 31, 2019, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	450,820	*
Credit contracts	Market value on credit default swaps		33,458		Market value on credit default swaps	$	243,212
Total		$	484,278			$	243,212

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives		Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	169,613	$	161,285
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		20,061		39,513
Total		$	189,674	$	200,798

The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended October 31, 2019:

Centrally Cleared Interest Rate Swaps:
Average notional amount	$	37,832,857
Credit Default Swaps:
Average notional amount of buy contracts	$	1,620,000
Average notional amount of sale contracts	$	2,777,857

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2019. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citigroup Global Markets, Inc.	$	2,102	$	(2,102	)	$	– 0	–	$	– 0	–	$	– 0	–
JP Morgan Securities, LLC		31,356		(31,356	)		– 0	–		– 0	–		– 0	–
Total	$	33,458	$	(33,458	)	$	– 0	–	$	– 0	–	$	0	^

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Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Citigroup Global Markets, Inc.	$	23,074	$	(2,102	)	$	– 0	–	$	– 0	–	$	20,972
Credit Suisse International		49,141		– 0	–		– 0	–		– 0	–		49,141
Goldman Sachs International		24,794		– 0	–		– 0	–		– 0	–		24,794
JP Morgan Securities, LLC		146,203		(31,356	)		– 0	–		– 0	–		114,847
Total	$	243,212	$	(33,458	)	$	– 0	–	$	– 0	–	$	209,754	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

NOTE D

Shares of Beneficial Interest

Transactions in shares of beneficial interest were as follows:

	Shares						Amount
	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019			Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Shares sold		14,617,171			8,683,152		$	144,954,859		$	84,359,626
Shares redeemed		(5,444,661	)		(6,340,194	)		(54,005,396	)		(61,654,794	)
Net increase		9,172,510			2,342,958		$	90,949,463		$	22,704,832

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE E

Risks Involved in Investing in the Fund

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 any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. 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.

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.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (“junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of 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 Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

46    ^|    AB TAXABLE MULTI-SECTOR INCOME SHARES abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE F

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the six months ended October 31, 2019.

NOTE G

Distributions to Shareholders

The tax character of distributions to be paid for the year ending April 30, 2020 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended April 30, 2019 and April 30, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	3,965,321	$	2,437,423
Total distributions paid	$	3,965,321	$	2,437,423

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NOTES TO FINANCIAL STATEMENTS (continued)

As of April 30, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	292,755
Accumulated capital and other losses		(1,152,312	)(a)
Unrealized appreciation/(depreciation)		473,329	(b)
Total accumulated earnings/(deficit)	$	(386,228	)(c)

(a) As of April 30, 2019, the Fund had a net capital loss carryforward of $1,152,312.

(b) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax treatment of swaps.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) is attributable primarily to dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2019, the Fund had a net short-term capital loss carryforward of $954,970 and a net long-term capital loss carryforward of $197,342, which may be carried forward for an indefinite period.

NOTE H

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE I

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB TAXABLE MULTI-SECTOR INCOME SHARES    ^|    49

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period		$  9.82			$  9.70			$  9.84			$  9.91			$  9.97			$  9.97
Income From Investment Operations
Net investment income(a)		.13			.25			.20			.17			.14			.09
Net realized and unrealized gain (loss) on investment transactions		.14			.13			(.14	)		(.01	)		(.02	)†		.03
Net increase in net asset value from operations		.27			.38			.06			.16			.12			.12
Less: Dividends
Dividends from net investment income		(.14	)		(.26	)		(.20	)		(.23	)		(.18	)		(.12	)
Net asset value, end of period		$  9.95			$  9.82			$  9.70			$  9.84			$  9.91			$  9.97
Total Return
Total investment return based on net asset value(b)		2.72	%		4.00	%		.65	%		1.48	%		1.26	%		1.16	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$247,515			$154,300			$129,628			$74,327			$307,233			$117,588
Ratio to average net assets of:
Net investment income		2.59	%^		2.62	%		2.05	%		1.67	%		1.44	%		.89	%
Portfolio turnover rate		39	%		45	%		81	%		85	%		109	%		109	%

See footnote summary on page 51.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

† Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

^ Annualized.

See notes to financial statements.

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BOARD OF TRUSTEES

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Shawn E. Keegan⁽²⁾, Vice President Douglas J. Peebles⁽²⁾, Senior Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company
State Street Corporation CCB/5
1 Iron Street
Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc.
1345 Avenue of the Americas
New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672 Legal Counsel Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Trust’s portfolio are made by the Adviser’s Core Fixed-Income Team. Messrs. DiMaggio, Keegan and Peebles are the investment professionals primarily responsible for the day-to-day management of the Trust’s portfolio.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Taxable Multi-Sector Income Shares (the “Fund”) at a meeting held on November 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

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The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2016 and 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.

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Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2018 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, and their discussion with the Adviser of the reasons for the Fund’s underperformance in certain periods, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider showing the fees payable by other fund families used in wrap fee programs similar to that of the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee

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arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The directors also considered the Adviser’s fee schedule for other clients pursuing a similar investment style. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also discussed these matters with an independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

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Economies of Scale

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY (continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

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NOTES

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NOTES

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AB TAXABLE MULTI-SECTOR INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TMSIS-0152-1019                

OCT    ^10.31.19

SEMI-ANNUAL REPORT

AB IMPACT MUNICIPAL INCOME SHARES

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

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

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Impact Municipal Income Shares (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

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SEMI-ANNUAL REPORT

December 17, 2019

This report provides management’s discussion of fund performance for AB Impact Municipal Income Shares for the semi-annual reporting period ended October 31, 2019. Please note, shares of this Fund are available only to separately managed accounts or participants in “wrap fee” programs or other investment programs approved by the Adviser.

The investment objective of the Fund is to earn the highest level of current income, exempt from federal taxation, that is available consistent with what the Adviser considers to be an appropriate level of risk.

NAV RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	6 Months		12 Months
AB IMPACT MUNICIPAL INCOME SHARES		5.35%		13.07%
Bloomberg Barclays Municipal Bond Index		3.54%		9.42%

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays Municipal Bond Index, for the six- and 12-month periods ended October 31, 2019.

During the six-month period, the Fund outperformed its benchmark. The Fund’s longer-than-benchmark duration positioning contributed most, relative to the benchmark, as yields declined and municipal securities rallied. An overweight to lower quality tiers also contributed, as did security selection in the Fund’s education and health impact sectors. There were no significant detractors for the six-month period.

During the 12-month period, the Fund outperformed its benchmark, primarily due to a longer-than-benchmark duration position, as yields declined and fixed-income assets rallied. An overweight to lower rated quality tiers, specifically BBB’s, also contributed. Selections in the Fund’s health care impact sector holdings contributed, while selection in education holdings detracted.

The Fund did not utilize derivatives during either period.

MARKET REVIEW AND INVESTMENT STRATEGY

Municipal bonds posted strong returns for the six-month period ended October 31, 2019, as inflation remained tame. US yields declined across the maturity spectrum, with the benchmark 10-year US Treasury yield falling 81 basis points to end the six-month period at 1.69%. Longer-maturity municipals outperformed shorter and intermediate-term municipals. By quality tier, lower rated municipals outperformed the highest rated quality tiers.

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The underlying goal of the Fund is to make environmentally, socially and financially productive investments in historically marginalized and underserved communities to reduce gaps that exist in such areas as academic achievement, economic development or the provision of health care. Essentially, the Fund’s Senior Investment Management Team is looking to create a better tomorrow. Inherent in these goals is to make investments toward improving the quality of life for all by enhancing and promoting civic engagement, an informed citizenry, culture and the physical and natural sciences.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 17.41% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund pursues its objective by investing principally in high-yielding municipal securities of any credit quality that (i) score highly on the Adviser’s environmental, social and corporate governance (“ESG”) criteria and (ii) are deemed by the Adviser to have an environmental or social impact in underserved or low socio-economic communities. As a matter of fundamental policy, the Fund invests, under normal circumstances, at least 80% of its net assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.

The Adviser evaluates each security in which the Fund invests using both a traditional municipal bond credit analysis and a consideration of the security’s overall ESG score under the Adviser’s ESG evaluation criteria. Under this ESG evaluation, to arrive at an overall ESG score, each security is scored on environmental, social and governance factors, and the scores are weighted based on the Adviser’s assessment of the relevance of each factor within a given sector (e.g., education, health care, renewable energy and mass transit). For example, social

(continued on next page)

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factors are weighted more heavily in the overall ESG score for a security of an issuer in the education sector than they are for a security of an issuer in the mass transit sector, where environmental factors predominate. The Adviser regularly reviews the overall ESG scores assigned to securities under consideration for purposes of determining the securities in which to invest for the Fund.

The Adviser’s ESG evaluation is conducted on an industry sector basis and includes the use of key performance indicators that vary in materiality by sector. The Adviser’s environmental evaluation covers issues such as clean and renewable energy, climate change and water conservation. The Adviser’s social evaluation covers issues such as economic impact, high quality safety-net health care and overall community health needs, and the reduction of achievement gaps between wealthy and poor school districts. The Adviser’s governance evaluation covers issues such as stewardship of debt and capital, board governance and transparency.

The Adviser also assesses a security’s risk and return characteristics as well as a security’s impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors including the credit quality, maturity, sensitivity to interest rates and the expected after-tax returns of the security under consideration and of the Fund’s other holdings.

The Fund may invest without limit in lower-rated securities (“junk bonds”), which may include securities having the lowest rating, and in unrated securities that, in the Adviser’s judgment, would be lower-rated securities if rated. The Fund may invest in fixed-income securities with any maturity or duration. The Fund will seek to increase income for shareholders by investing in longer-maturity bonds. Consistent with its objective of seeking a higher level of income, the Fund may experience greater volatility and a higher risk of loss of principal than other municipal funds.

The Fund may also invest in: tender option bond transactions (“TOBs”); 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.

The Fund may make short sales of securities or maintain a short position, and may use other investment techniques. The Fund may use leverage for investment purposes to increase income through the use of TOBs and derivative instruments, such as interest rate swaps.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund. The Bloomberg Barclays Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

ESG Risk: Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities selected based on ESG factors may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria.

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 any 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.

Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s

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DISCLOSURES AND RISKS (continued)

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.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

Tax Risk: There is no guarantee that all of the Fund’s income will remain exempt from federal or state income taxes. From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value (“NAV”) could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax-exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

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

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DISCLOSURES AND RISKS (continued)

money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Leverage Risk: To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.

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HISTORICAL PERFORMANCE

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2019 (unaudited)

	NAV Returns
1 Year		13.07%
Since Inception1		5.82%

AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2019 (unaudited)

	NAV Returns
1 Year		11.90%
Since Inception1		6.02%

The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.01% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.

1 Inception date: 9/12/2017.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2019		Ending Account Value October 31, 2019		Expenses Paid During Period*			Annualized Expense Ratio*
Actual	$	1,000	$	1,053.50	$	– 0	–		0.00	%
Hypothetical**	$	1,000	$	1,025.14	$	– 0	–		0.00	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2019 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $177.9

1 All data are as October 31, 2019. The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the Pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

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PORTFOLIO OF INVESTMENTS

October 31, 2019 (unaudited)

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 90.3%
Long-Term Municipal Bonds – 89.2%
American Samoa – 0.9%
American Samoa Economic Development Authority (Territory of American Samoa) 6.00%, 9/01/23(a)	$	1,565	$	1,628,398
California – 13.4%
Alameda Corridor Transportation Authority
Series 2016A 5.00%, 10/01/22		725		795,412
Series 2016B 5.00%, 10/01/35-10/01/36		2,095		2,453,770
California Educational Facilities Authority (Mount St. Mary’s University, Inc.) Series 2018A 5.00%, 10/01/36-10/01/46		3,155		3,823,239
California School Finance Authority (Bright Star Schools Obligated Group) Series 2017 5.00%, 6/01/37-6/01/54(a)		850		920,865
California School Finance Authority (Downtown College Prep Obligated Group) Series 2016 5.00%, 6/01/51(a)		250		267,452
California School Finance Authority (Ednovate Obligated Group) Series 2018 5.00%, 6/01/48-6/01/56(a)		2,085		2,231,592
California School Finance Authority (Equitas Academy Obligated Group) Series 2018A 5.00%, 6/01/48(a)		3,750		4,150,275
California School Finance Authority (Green Dot Public Schools Obligated Group) Series 2018 5.00%, 8/01/38(a)		1,000		1,182,200
California Statewide Communities Development Authority (Loma Linda University Medical Center)
5.25%, 12/01/48(a)		500		580,030
Series 2016A 5.00%, 12/01/41(a)		1,190		1,335,001
Series 2018A 5.25%, 12/01/43(a)		2,640		3,078,610
5.50%, 12/01/58(a)		660		773,929

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Coalinga-Huron Joint Unified School District BAM Series 2018B 5.00%, 8/01/48	$	500	$	593,905
Golden Empire Schools Financing Authority (Kern High School District) Series 2018 5.00%, 5/01/21		1,195		1,264,131
Port of Los Angeles Series 2014A 5.00%, 8/01/21		355		378,302
				23,828,713
Colorado – 1.7%
Denver Health & Hospital Authority Series 2019A 4.00%, 12/01/38-12/01/40		2,770		3,057,587
Connecticut – 2.5%
City of Bridgeport CT
Series 2017A 5.00%, 11/01/25		525		614,329
BAM Series 2018C 5.00%, 7/15/36-7/15/38		1,620		1,933,491
BAM Series 2019A 5.00%, 2/01/35		1,500		1,813,575
				4,361,395
District of Columbia – 2.1%
District of Columbia (KIPP DC Obligated Group)
Series 2017A 5.00%, 7/01/42		785		918,199
Series 2017B 5.00%, 7/01/37		625		739,225
District of Columbia (KIPP DC) 4.00%, 7/01/39		1,000		1,092,920
District of Columbia Water & Sewer Authority Series 2016A 5.00%, 10/01/35		820		980,154
				3,730,498
Florida – 2.3%
School District of Broward County/FL (Broward County School Board/FL COP)
Series 2017B 5.00%, 7/01/32		500		610,795
Series 2019B 5.00%, 7/01/29		2,750		3,554,430
				4,165,225

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Georgia – 0.1%
Atlanta Development Authority The (Atlanta Development Authority Lease) Series 2017 2.061%, 12/01/21	$	230	$	230,347
Illinois – 0.8%
Cook County Community College District No. 508
Series 2013 5.25%, 12/01/43		605		642,389
BAM Series 2017 5.00%, 12/01/47		620		709,125
				1,351,514
Kansas – 0.4%
Seward County Unified School District No. 480 Liberal Series 2017B 5.00%, 9/01/28		555		657,314
Massachusetts – 7.3%
Massachusetts Development Finance Agency (Boston Medical Center Corp. Obligated Group)
Series 2015D 5.00%, 7/01/44		3,095		3,480,977
Series 2016E 5.00%, 7/01/37		765		881,188
Series 2017F 5.00%, 7/01/30		1,475		1,751,312
Massachusetts Development Finance Agency (Wellforce Obligated Group) AGM Series 2019A 5.00%, 7/01/36-7/01/44		4,895		5,854,007
Massachusetts Development Finance Agency (WGBH Educational Foundation) Series 2017A 4.00%, 1/01/32		825		950,169
				12,917,653
Michigan – 7.1%
Center Line Public Schools Series 2018 5.00%, 5/01/38		895		1,083,317
City of Detroit MI 5.00%, 4/01/32-4/01/37		4,505		5,022,984
Downriver Utility Wastewater Authority AGM Series 2018 5.00%, 4/01/43		1,515		1,785,609

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Grand Rapids Public Schools
AGM 5.00%, 11/01/40	$	1,800	$	2,208,348
AGM Series 2017 5.00%, 5/01/27		200		248,870
Great Lakes Water Authority Water Supply System Revenue
Series 2016B 5.00%, 7/01/46		1,225		1,428,031
Series 2016C 5.00%, 7/01/26		695		851,917
				12,629,076
Minnesota – 0.6%
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Metro Deaf School) Series 2018A 5.00%, 6/15/48(a)		1,000		1,047,440
Missouri – 0.1%
St. Louis Community College District Series 2017 4.00%, 4/01/35		200		224,576
Montana – 1.4%
City of Missoula MT Water System Revenue Series 2019A 4.00%, 7/01/37-7/01/44		2,180		2,436,964
Nevada – 1.4%
Clark County School District Series 2017C 5.00%, 6/15/26-6/15/33		2,000		2,429,550
New Jersey – 5.4%
New Jersey Economic Development Authority (Foundation Academy Charter School A NJ Nonprofit Corp.) Series 2018A 5.00%, 7/01/50		1,000		1,128,360
New Jersey Economic Development Authority (North Star Academy Charter School of Newark, Inc.) Series 2017 5.00%, 7/15/47		1,170		1,324,510

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Economic Development Authority (Seeing Eye, Inc. (The) Series 2015 5.00%, 3/01/25	$	3,205	$	3,777,702
New Jersey Economic Development Authority (State of New Jersey Division of Property Management & Construction Lease) Series 2018C 5.00%, 6/15/27-6/15/42		1,645		1,898,439
New Jersey Health Care Facilities Financing Authority (St. Joseph’s Healthcare System Obligated Group) Series 2016 5.00%, 7/01/41		1,335		1,517,908
				9,646,919
New York – 4.1%
Build NYC Resource Corp. (Children’s Aid Society/The) 4.00%, 7/01/44-7/01/49		1,150		1,289,171
Build NYC Resource Corp. (Inwood Academy for Leadership Charter School) Series 2018A 5.50%, 5/01/48(a)		500		549,770
Build NYC Resource Corp. (Metropolitan Lighthouse Charter School) 5.00%, 6/01/52(a)		1,260		1,361,733
Series 2017A 5.00%, 6/01/47(a)		725		785,414
Metropolitan Transportation Authority Series 2018B 5.00%, 5/15/20		2,175		2,216,586
New York City Housing Development Corp. Series 2017E 1.50%, 5/01/22		230		231,693
New York State Dormitory Authority (Montefiore Obligated Group) Series 2018 5.00%, 8/01/34		750		912,225
				7,346,592
North Carolina – 3.1%
North Carolina Central University 4.00%, 4/01/49		2,270		2,510,938
5.00%, 4/01/44		2,500		3,011,750
				5,522,688

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio – 5.6%
American Municipal Power, Inc. Series 2019A 5.00%, 2/15/44	$	2,150	$	2,575,334
County of Cuyahoga/OH (MetroHealth System (The))
Series 2017 5.00%, 2/15/42		4,365		4,934,327
5.25%, 2/15/47		1,500		1,721,445
County of Darke OH (Wayne Hospital Co. Obligated Group) Series 2019A 5.00%, 9/01/49		690		790,202
				10,021,308
Oklahoma – 3.0%
Oklahoma County Finance Authority (Oklahoma County Independent School District No. 52 Midwest City-Del City) Series 2018 5.00%, 10/01/24		1,120		1,310,926
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2018B 5.50%, 8/15/57		3,365		4,009,869
				5,320,795
Oregon – 0.8%
Tri-County Metropolitan Transportation District of Oregon
Series 2017A 5.00%, 10/01/26		865		1,061,675
Series 2018A 5.00%, 10/01/29		250		312,150
				1,373,825
Pennsylvania – 14.7%
Capital Region Water Water Revenue Series 2018 5.00%, 7/15/25-7/15/26		1,510		1,810,014
City of Philadelphia PA Water & Wastewater Revenue
Series 2018A 5.00%, 10/01/48		3,050		3,691,720
Series 2019B 5.00%, 11/01/49		3,095		3,786,825
Delaware County Authority (Elwyn Obligated Group) Series 2017 5.00%, 6/01/37		825		917,945

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Hospitals & Higher Education Facilities Authority of Philadelphia (The) (Temple University Health System Obligated Group) Series 2017 5.00%, 7/01/32-7/01/34	$	1,115	$	1,302,636
Philadelphia Authority for Industrial Development (City of Philadelphia PA)
Series 2018 5.00%, 5/01/36-5/01/38		4,010		4,871,227
AGM Series 2017 5.00%, 12/01/35		200		240,274
Pittsburgh Water & Sewer Authority AGM Series 2019A 5.00%, 9/01/44		2,000		2,445,480
School District of the City of Erie (The)
AGM Series 2019A 5.00%, 4/01/31		405		506,092
AGM Series 2019C 5.00%, 4/01/28-4/01/29		2,850		3,560,359
State Public School Building Authority (Community College Of Philadelphia Foundation) BAM Series 2018 5.00%, 6/15/21		1,000		1,058,560
Wilkes-Barre Area School District/PA BAM 5.00%, 4/15/59		1,620		1,920,364
				26,111,496
Texas – 0.7%
El Paso County Hospital District Series 2017 5.00%, 8/15/37		370		419,484
Newark Higher Education Finance Corp. (Austin Achieve Public Schools, Inc.) Series 2018 5.00%, 6/15/48		735		753,404
				1,172,888
Utah – 2.4%
Ogden City School District Municipal Building Authority (Ogden City School District) Series 2018 5.00%, 1/15/38		3,490		4,215,431

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington – 2.3%
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 1/01/44	$	3,600	$	4,152,384
West Virginia – 2.9%
Morgantown Utility Board, Inc. BAM Series 2018B 5.00%, 12/01/43		2,555		3,079,209
West Virginia Hospital Finance Authority (West Virginia United Health System Obligated Group) Series 2017A 5.00%, 6/01/47		1,775		2,067,485
				5,146,694
Wisconsin – 2.1%
Milwaukee Redevelopment Authority (Milwaukee Public Schools Lease) Series 2017 5.00%, 11/15/25		200		240,116
Wisconsin Public Finance Authority (Bancroft Neurohealth Obligated Group) Series 2016 5.125%, 6/01/48(a)		200		213,366
Wisconsin Public Finance Authority (NC A&T Real Estate Foundation LLC) 5.00%, 6/01/44		2,950		3,373,738
				3,827,220
Total Long-Term Municipal Bonds (cost $149,393,928)				158,554,490
SHORT-TERM MUNICIPAL NOTES – 1.1%
California – 1.1%
California Infrastructure & Economic Development Bank (California Academy of Sciences) Series 2018C 1.64% (LIBOR 1 Month + 0.38%), 8/01/47(b) (cost $2,000,000)		2,000		1,997,920
Total Municipal Obligations (cost $151,393,928)				160,552,410

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 5.1%
Financial Institutions – 2.9%
Finance – 2.9%
Low Income Investment Fund Series 2019 3.711%, 7/01/29	$	5,000	$	5,204,834
Industrial – 2.2%
Consumer Cyclical - Other – 1.9%
Conservation Fund A Nonprofit Corp. (The) Series 2019 3.474%, 12/15/29		3,267		3,319,349
Consumer Non-Cyclical – 0.3%
YMCA of Greater New York Series 2018 3.985%, 8/01/22		500		518,397
				3,837,746
Total Corporates – Investment Grade (cost $8,767,000)				9,042,580
	Shares
SHORT-TERM INVESTMENTS – 3.6%
Investment Companies – 3.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio Class AB, 1.78%(c)(d)(e) (cost $6,409,351)		6,409,351		6,409,351
Total Investments – 99.0% (cost $166,570,279)				176,004,341
Other assets less liabilities – 1.0%				1,855,491
Net Assets – 100.0%			$	177,859,832

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2019, the aggregate market value of these securities amounted to $20,106,075 or 11.3% of net assets.

(b) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2019.

(c) Affiliated investments.

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

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

As of October 31, 2019, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 17.4% and 0.0%, respectively.

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PORTFOLIO OF INVESTMENTS (continued)

Glossary:

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

COP – Certificate of Participation

LIBOR – London Interbank Offered Rates

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2019 (unaudited)

Assets
Investments in securities, at value
Unaffiliated issuers (cost $160,160,928)	$	169,594,990
Affiliated issuers (cost $6,409,351)		6,409,351
Cash		11,029
Interest receivable		1,967,651
Receivable for shares of beneficial interest sold		395,899
Affiliated dividends receivable		7,925
Receivable due from Adviser		431
Total assets		178,387,276
Liabilities
Dividends payable		476,070
Payable for shares of beneficial interest redeemed		51,374
Total liabilities		527,444
Net Assets	$	177,859,832
Composition of Net Assets
Shares of beneficial interest, at par	$	168
Additional paid-in capital		168,610,020
Distributable earnings		9,249,644
	$	177,859,832
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 16,839,106 common shares outstanding)	$	10.56

See notes to financial statements.

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STATEMENT OF OPERATIONS

Six Months Ended October 31, 2019 (unaudited)

Investment Income
Interest	$	2,556,274
Dividends—Affiliated issuers		79,765
Other income(a)		3,585
Total investment income			$	2,639,624
Realized and Unrealized Gain on Investment Transactions
Net change in unrealized appreciation/depreciation of investments				5,302,473
Net gain on investment transactions				5,302,473
Net Increase in Net Assets from Operations			$	7,942,097

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,639,624		$	3,099,712
Net realized gain (loss) on investment transactions		– 0	–		(152,868	)
Net change in unrealized appreciation/depreciation of investments		5,302,473			4,774,022
Net increase in net assets from operations		7,942,097			7,720,866
Distribution to Shareholders		(2,639,650	)		(3,099,693	)
Transactions in Shares of Beneficial Interest
Net increase		39,593,366			91,001,459
Total increase		44,895,813			95,622,632
Net Assets
Beginning of period		132,964,019			37,341,387
End of period	$	177,859,832		$	132,964,019

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2019 (unaudited)

NOTE A

Significant Accounting Policies

AB Corporate Shares (the “Trust”) was organized as a Massachusetts business trust under the laws of The Commonwealth of Massachusetts by an Agreement and Declaration of Trust dated January 26, 2004. The Trust is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Impact Municipal Income Shares (the “Fund”).

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Trust’s Board of Trustees (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the

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NOTES TO FINANCIAL STATEMENTS (continued)

counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

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NOTES TO FINANCIAL STATEMENTS (continued)

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

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

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

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

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

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more

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NOTES TO FINANCIAL STATEMENTS (continued)

widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2019:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

160,552,410

$

– 0

–

$

160,552,410

Corporates – Investment Grade

– 0

–

9,042,580

– 0

–

9,042,580

Short-Term Investments

6,409,351

– 0

–

– 0

–

6,409,351

Total Investments in Securities

6,409,351

169,594,990

– 0

–

176,004,341

Other Financial Instruments(a)

– 0

–

– 0

–

– 0

–

– 0

–

Total

$

6,409,351

$

169,594,990

$

– 0

–

$

176,004,341

+

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

+ An amount of $9,624,673 for Long-Term Municipal Bonds was transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior tax year) and has concluded that no provision for income tax is required in the Fund’s financial statements.

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

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NOTES TO FINANCIAL STATEMENTS (continued)

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and

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NOTES TO FINANCIAL STATEMENTS (continued)

bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2020. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the six months ended October 31, 2019, such reimbursement amounted to $3,585.

A summary of the Fund’s transactions in AB mutual funds for the six months ended October 31, 2019 is as follows:

Fund	Market Value 4/30/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/19 (000)		Dividend Income (000)
Government Money Market Portfolio	$	5,190	$	39,922	$	38,703	$	6,409	$	80

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (“AXA Equitable”), through an initial public offering. AXA Equitable is the holding company for a diverse group of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns 10.1% of the outstanding shares of common stock of AXA Equitable and no longer owns a controlling interest in AXA Equitable. AXA previously announced its intention to sell its entire interest in AXA Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining AXA Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into AXA Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of AXA Equitable common stock.

The latest transaction under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that investment advisory services could continue uninterrupted in the event of a Change of Control Event, the

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NOTES TO FINANCIAL STATEMENTS (continued)

Board previously approved a new investment advisory agreement with the Adviser. Shareholders of the Fund subsequently approved the new investment advisory agreement, which became effective on November 13, 2019.

NOTE C

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2019 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	32,999,116		$	170,000
U.S. government securities		– 0	–		– 0	–

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

Gross unrealized appreciation	$	9,495,207
Gross unrealized depreciation		(61,145	)
Net unrealized appreciation	$	9,434,062

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The Fund did not engage in derivatives transactions for the six months ended October 31, 2019.

NOTE D

Shares of Beneficial Interest

Transactions in shares of beneficial interest were as follows:

	Shares						Amount
	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019			Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019
Shares sold		4,256,599			10,105,211		$	44,458,433		$	99,653,683
Shares redeemed		(464,438	)		(873,773	)		(4,865,067	)		(8,652,224	)
Net increase		3,792,161			9,231,438		$	39,593,366		$	91,001,459

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE E

Risks Involved in Investing in the Fund

ESG Risk—Applying environmental, social and corporate governance (“ESG”) and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and therefore the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities selected based on ESG factors may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria.

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 any 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.

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities

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NOTES TO FINANCIAL STATEMENTS (continued)

Tax Risk—There is no guarantee that all of the Fund’s income will remain exempt from federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (“junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Leverage Risk—To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to

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NOTES TO FINANCIAL STATEMENTS (continued)

purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types investments.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    33

NOTES TO FINANCIAL STATEMENTS (continued)

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE F

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the six months ended October 31, 2019.

NOTE G

Distributions to Shareholders

The tax character of distributions to be paid for the year ending April 30, 2020 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended April 30, 2019 and April 30, 2018 were as follows:

	2019		2018
Distributions paid from:
Ordinary income	$	125,019	$	31,913
Total taxable distributions		125,019		31,913
Tax exempt distributions		2,974,674		358,660
Total distributions paid	$	3,099,693	$	390,573

As of April 30, 2019, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	371,166
Accumulated capital and other losses		(184,411	)(a)
Unrealized appreciation/(depreciation)		4,131,589
Total accumulated earnings/(deficit)	$	4,318,344	(b)

(a) As of April 30, 2019, the Fund had a net capital loss carryforward of $184,411.

(b) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) is attributable primarily to dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as

34    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

either short-term or long-term capital losses. As of April 30, 2019, the Fund had a net short-term capital loss carryforward of $184,411, which may be carried forward for an indefinite period.

NOTE H

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE I

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    35

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period

	Six Months Ended October 31, 2019 (unaudited)			Year Ended April 30, 2019			September 12, 2017(a) to April 30, 2018
Net asset value, beginning of period		$  10.19			$  9.79			$  10.00
Income From Investment Operations
Net investment income(b)		.17			.33			.18
Net realized and unrealized gain (loss) on investment transactions		.37			.40			(.22	)
Net increase (decrease) in net asset value from operations		.54			.73			(.04	)
Less: Dividends
Dividends from net investment income		(.17	)		(.33	)		(.17	)
Net asset value, end of period		$  10.56			$  10.19			$  9.79
Total Return
Total investment return based on net asset value(c)		5.35	%		7.56	%		(.44	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$177,860			$132,964			$37,341
Ratio to average net assets of:
Net investment income		3.29	%^		3.35	%		2.89	%^
Portfolio turnover rate		0	%(d)		23	%		8	%

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(d) Amount is less than .5%.

^ Annualized.

See notes to financial statements.

36    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

BOARD OF TRUSTEES

Marshall C. Turner, Jr.⁽¹⁾, Chairman Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

R.B. “Guy” Davidson III⁽²⁾, Vice President Eric A. Glass⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105	Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036
Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Trust’s Portfolio are made by the Impact Municipal Investment Team. Messrs. Davidson, Glass and Norton are the investment professionals primarily responsible for the day-to-day management of the Trust’s Portfolio.

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    37

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Impact Municipal Income Shares (the “Fund”) at a meeting held on November 6-8, 2018 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

38    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for the period ended December 31, 2017 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the period reviewed.

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    39

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the period ended July 31, 2018. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider showing the fees payable by other fund families used in wrap fee programs similar to that of the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different

40    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by the Adviser that have a substantially similar investment style as the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

Economies of Scale

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    41

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

FlexFee^™ International Strategic Core Portfolio

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

FlexFee^™ Emerging Markets Growth Portfolio

INTERNATIONAL/ GLOBAL EQUITY (continued)

Sustainable International Thematic Fund

INTERNATIONAL/ GLOBAL VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio¹

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

Multi-Manager Select 2060 Fund

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to July 12, 2019, Total Return Bond Portfolio was named Intermediate Bond Portfolio.

42    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

NOTES

abfunds.com AB IMPACT MUNICIPAL INCOME SHARES    ^|    43

NOTES

44    ^|    AB IMPACT MUNICIPAL INCOME SHARES abfunds.com

AB IMPACT MUNICIPAL INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IMISH-0152-1019                

ITEM 2. CODE OF ETHICS.

Not applicable when filing a semi-annual report to shareholders.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable when filing a semi-annual report to shareholders.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable when filing a semi-annual report to shareholders.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. SCHEDULE OF INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT     NO.	DESCRIPTION OF EXHIBIT
12 (b) (1)	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2)	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (c)	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AB Corporate Shares

By:	/s/ Robert M. Keith
	Robert M. Keith
	President
Date:	December 27, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President
Date:	December 27, 2019
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer
Date:	December 27, 2019

EX-99.906 CERT

Exhibit 12(b)(1)

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Robert M. Keith, President of AB Corporate Shares, certify that:

1. I have reviewed this report on Form N-CSR of AB Corporate Shares;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 27, 2019

/s/ Robert M. Keith

Robert M. Keith

President

Exhibit 12(b)(2)

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Joseph J. Mantineo, Treasurer and Chief Financial Officer of AB Corporate Shares, certify that:

1. I have reviewed this report on Form N-CSR of AB Corporate Shares;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information ; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 27, 2019

/s/ Joseph J. Mantineo

Joseph J. Mantineo

Treasurer and Chief Financial Officer

EX-99.906 CERT

EXHIBIT 12(c)

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT

Pursuant to 18 U.S.C. 1350, each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of AB Corporate Shares (the “Registrant”), hereby certifies that the Registrant’s report on Form N-CSR for the period ended October 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: December 27, 2019

By:	/s/ Robert M. Keith
	Robert M. Keith
	President
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.