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: 811-02383

AB BOND FUND, INC.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

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

Date of fiscal year end: October 31, 2021

Date of reporting period: October 31, 2021

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.21

ANNUAL REPORT

AB ALL MARKET REAL RETURN PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB All Market Real Return Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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ANNUAL REPORT

December 7, 2021

This report provides management’s discussion of fund performance for the AB All Market Real Return Portfolio for the annual reporting period ended October 31, 2021.

The Fund’s investment objective is to maximize real return over inflation.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB ALL MARKET REAL RETURN PORTFOLIO
Class 1 Shares1		10.19%		45.63%
Class 2 Shares1		10.36%		46.10%
Class A Shares2		10.08%		45.29%
Class C Shares		9.71%		44.41%
Advisor Class Shares2,3		10.22%		45.63%
Class R Shares2,3		9.96%		45.04%
Class K Shares2.3		10.10%		45.40%
Class I Shares2,3		10.42%		46.17%
Class Z Shares3		10.31%		46.17%
MSCI AC World Commodity Producers Index (net)		7.96%		65.36%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

3 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

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 Morgan Stanley Capital International All Country (“MSCI AC”) World Commodity Producers Index (net), for the six- and 12-month periods ended October 31, 2021.

All share classes of the Fund underperformed the benchmark for the 12-month period, but outperformed for the six-month period, before sales

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charges. For the 12-month period, the strategic allocation detracted overall, relative to the benchmark, as real estate, commodity futures and inflation-sensitive equities underperformed commodity producers. Security selection within commodity equities, commodity futures, real estate investment trusts (“REITs”) and inflation-sensitive equities contributed. The Fund’s tactical overweight to commodity futures contributed, but this was offset by tactical underweights to REITs and inflation-sensitive equities.

During the six-month period, the strategic allocation contributed overall, relative to the benchmark, as commodity futures and inflation-sensitive equities outperformed commodity producers. Security selection within commodity equities, commodity futures, REITs and inflation-sensitive equities contributed. The Fund’s tactical overweight to commodity equities contributed, while tactical underweights to REITs and inflation-sensitive equities detracted.

The Fund utilized derivatives for hedging and investment purposes in the form of futures, inflation swaps and currency forwards, which added to absolute returns for both periods, while total return swaps and variance swaps detracted for both periods. Written options were utilized for hedging and investment purposes and had no material impact on performance for either period.

MARKET REVIEW AND INVESTMENT STRATEGY

Global equities recorded strong double-digit returns during the 12-month period ended October 31, 2021. Accommodative monetary policy, widespread vaccination distribution and resilient company earnings growth helped quell inflation concerns and supported equity markets throughout most of the period. Bouts of volatility increased as worsening supply-chain constraints and the negative economic impact of the coronavirus delta variant were compounded by the convergence of politically divisive budget negotiations in the US and turmoil in China’s economy. The US Federal Reserve moved gradually toward tapering but signaled that current economic conditions continued to justify low rates for the next several years, which steadied equity markets. Investors also reacted favorably to positive developments in Washington, DC, after Congress reached a deal to temporarily raise the US debt ceiling and as Chinese authorities moved to calm fears around the collapse of the heavily indebted Chinese real estate developer Evergrande and a slowdown in China’s economy. Large-cap stocks underperformed small-cap stocks on a relative basis, and value-style stocks narrowly outperformed their growth-style peers.

Fixed-income market returns were mixed as longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada and the UK. Global inflation-linked bonds significantly outperformed treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone and emerging

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markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially in commercial mortgage-backed securities. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

Inflation assets rallied over the six- and 12-month periods, with natural resource equities, commodities, REITs and inflation breakevens all posting positive returns. The global vaccine rollout kept investor sentiment elevated, as they anticipated that a speedy rollout would allow pent-up demand for goods and services to reenter the market. Early reassurance from central banks around the world that stimulus measures would remain in place further bolstered inflation expectations and benefited these assets. Commodities were the top performers over the six-month period, as coal and natural gas prices in China and Europe spiked in response to constrained supply. Factories across regions were shuttered or forced to reduce capacity in response to the energy crunch, and in turn limited output of metals, which also saw price appreciation. Energy producers also outperformed over this period, benefiting from the energy bounce. Unprecedented supply-chain challenges kept inflation expectations elevated, which benefited breakevens. REITs posted positive returns over the period as well, but lagged the broader equity market.

The Fund’s Senior Investment Management Team continues to look for sources of value via asset allocation shifts, active security selection, risk overlay strategies and currency management. The Fund uses a blend of quantitative and fundamental research in order to determine overall portfolio risk, allocate risk across major real asset classes and identify idiosyncratic opportunities.

INVESTMENT POLICIES

The Fund seeks to maximize real return. Real return is the rate of return after adjusting for inflation. The Fund pursues an aggressive investment strategy involving a variety of asset classes. The Fund invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Fund expects to invest its assets principally in the following instruments that, in the judgment of the Adviser, are affected directly or indirectly by the level and change in rate of inflation: inflation-indexed fixed-income securities, such as Treasury inflation-protected securities

(continued on next page)

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(“TIPS”) and similar bonds issued by governments outside of the United States; commodities; commodity-related equity securities; real estate equity securities; inflation-sensitive equity securities, which the Fund defines as equity securities of companies that the Adviser believes have the ability to pass along increasing costs to consumers and maintain or grow margins in rising inflation environments, including equity securities of utilities and infrastructure-related companies (“inflation-sensitive equities”); securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate); and currencies. The Fund expects its investments in fixed-income securities to have a broad range of maturities and quality levels.

The Fund seeks inflation protection from investments around the globe, both in developed- and emerging-market countries. In selecting securities for purchase and sale, the Adviser utilizes its qualitative and quantitative resources to determine overall inflation sensitivity, asset allocation and security selection. The Adviser assesses the securities’ risks and inflation sensitivity as well as the securities’ impact on the overall risks and inflation sensitivity of the Fund. When its analysis indicates that changes are necessary, the Adviser intends to implement them through a combination of changes to underlying positions and the use of inflation swaps and other types of derivatives, such as interest rate swaps.

The Fund anticipates that its targeted investment mix, other than its investments in inflation-indexed fixed-income securities, will focus on commodity-related equity securities, commodities and commodity derivatives, real estate equity securities and inflation-sensitive equities to provide a balance between expected return and inflation protection. The Fund may vary its investment allocations among these asset classes, at times significantly. Its commodities investments will include significant exposure to energy commodities, but will also include agricultural products, and industrial and precious metals, such as gold. The Fund’s investments in real estate equity securities will include REITs and other real estate-related securities.

The Fund invests in both US and non-US dollar-denominated equity or fixed-income securities. The Fund may invest in currencies for hedging or investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Fund does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in US dollar-denominated securities, although it may hedge the exposure under certain circumstances.

The Fund may enter into derivatives, such as options, futures contracts, forwards, swaps or structured notes, to a significant extent,

(continued on next page)

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subject to the limits of applicable law. The Fund intends to use leverage for investment purposes through the use of cash made available by derivatives transactions to make other investments in accordance with its investment policies. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser considers factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser considers the impact of derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

The Fund may seek to gain exposure to physical commodities traded in the commodities markets through use of a variety of derivative instruments, including investments in commodity index-linked notes. The Adviser expects that the Fund will seek to gain exposure to commodities and commodity-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the Fund except that the Subsidiary, unlike the Fund, may invest, without limitation, in commodities and commodity-related instruments. The Fund is subject to the risks associated with the commodities, derivatives and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Fund limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Fund with commodity exposure within the limitations of federal tax requirements that apply to the Fund.

The Fund is “non-diversified”, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The MSCI AC World Commodity Producers Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The MSCI AC World Commodity Producers Index is a free float-adjusted, market capitalization index designed to track the performance of global listed commodity producers, including emerging markets. Commodities sectors include: energy, grains, industrial metals, petroleum, precious metals and softs. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction of non-US withholding tax. 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, commodity and bond markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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. The current historically low interest rate environment heightens the risks associated with rising interest rates.

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DISCLOSURES AND RISKS (continued)

Commodity Risk: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Derivatives Risk: The Fund may enter into derivative transactions such as

forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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: 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.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Foreign fixed-income securities may have more illiquid investments risk because secondary trading markets for these securities may be smaller and less well-developed and the securities may trade less frequently. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

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.

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

Subsidiary Risk: By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The

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DISCLOSURES AND RISKS (continued)

derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

Real Estate Risk: The Fund’s investments in real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.

Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth

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DISCLOSURES AND RISKS (continued)

more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund Information—Mutual Fund Performance at a Glance.”

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. For Class 1 shares, go to www.bernstein.com, click on “Investments”, found in the footer, then “Mutual Fund Information—Prospectuses, SAIs and Shareholder Reports.” Please read the prospectus and/or summary prospectus carefully before investing.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB All Market Real Return Portfolio Class A shares (from 10/31/2011 to 10/31/2021) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		45.63%		45.63%
5 Years		8.21%		8.21%
10 Years		1.86%		1.86%
CLASS 2 SHARES1
1 Year		46.10%		46.10%
5 Years		8.49%		8.49%
10 Years		2.12%		2.12%
CLASS A SHARES
1 Year		45.29%		39.12%
5 Years		8.00%		7.05%
10 Years		1.71%		1.27%
CLASS C SHARES
1 Year		44.41%		43.41%
5 Years		7.22%		7.22%
10 Years2		0.97%		0.97%
ADVISOR CLASS SHARES3
1 Year		45.63%		45.63%
5 Years		8.27%		8.27%
10 Years		1.99%		1.99%
CLASS R SHARES3
1 Year		45.04%		45.04%
5 Years		7.72%		7.72%
10 Years		1.47%		1.47%
CLASS K SHARES3
1 Year		45.40%		45.40%
5 Years		8.01%		8.01%
10 Years		1.74%		1.74%
CLASS I SHARES3
1 Year		46.17%		46.17%
5 Years		8.49%		8.49%
10 Years		2.11%		2.11%
CLASS Z SHARES3
1 Year		46.17%		46.17%
5 Years		8.49%		8.49%
Since Inception4		2.68%		2.68%

(footnotes continued on next page)

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HISTORICAL PERFORMANCE (continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.15%, 0.88%, 1.44%, 2.19%, 1.18%, 1.64%, 1.33%, 0.91% and 0.90% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs, to 1.30%, 2.05%, 1.05%, 1.55% and 1.30% for Class A, Class C, Advisor Class, Class R and Class K shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 1/31/2014.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		36.95%
5 Years		6.89%
10 Years		2.46%
CLASS 2 SHARES1
1 Year		37.15%
5 Years		7.15%
10 Years		2.72%
CLASS A SHARES
1 Year		30.62%
5 Years		5.74%
10 Years		1.87%
CLASS C SHARES
1 Year		34.50%
5 Years		5.87%
10 Years2		1.57%
ADVISOR CLASS SHARES3
1 Year		36.95%
5 Years		6.92%
10 Years		2.58%
CLASS R SHARES3
1 Year		36.34%
5 Years		6.40%
10 Years		2.08%
CLASS K SHARES3
1 Year		36.79%
5 Years		6.68%
10 Years		2.35%
CLASS I SHARES3
1 Year		37.21%
5 Years		7.13%
10 Years		2.71%
CLASS Z SHARES3
1 Year		37.21%
5 Years		7.13%
Since Inception4		2.11%

(footnotes continued on next page)

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HISTORICAL PERFORMANCE (continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 1/31/2014.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

The 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.

16    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,100.80	$	6.83		1.29	%	$	6.99		1.32	%
Hypothetical**	$	1,000	$	1,018.70	$	6.56		1.29	%	$	6.72		1.32	%
Class C
Actual	$	1,000	$	1,097.10	$	10.78		2.04	%	$	10.94		2.07	%
Hypothetical**	$	1,000	$	1,014.92	$	10.36		2.04	%	$	10.51		2.07	%
Advisor Class
Actual	$	1,000	$	1,102.20	$	5.51		1.04	%	$	5.67		1.07	%
Hypothetical**	$	1,000	$	1,019.96	$	5.30		1.04	%	$	5.45		1.07	%
Class R
Actual	$	1,000	$	1,099.60	$	8.15		1.54	%	$	8.31		1.57	%
Hypothetical**	$	1,000	$	1,017.44	$	7.83		1.54	%	$	7.98		1.57	%
Class K
Actual	$	1,000	$	1,101.00	$	6.67		1.26	%	$	6.83		1.29	%
Hypothetical**	$	1,000	$	1,018.85	$	6.41		1.26	%	$	6.56		1.29	%
Class I
Actual	$	1,000	$	1,104.20	$	4.40		0.83	%	$	4.56		0.86	%
Hypothetical**	$	1,000	$	1,021.02	$	4.23		0.83	%	$	4.38		0.86	%
Class 1
Actual	$	1,000	$	1,101.90	$	5.72		1.08	%	$	5.88		1.11	%
Hypothetical**	$	1,000	$	1,019.76	$	5.50		1.08	%	$	5.65		1.11	%
Class 2
Actual	$	1,000	$	1,103.60	$	4.29		0.81	%	$	4.40		0.83	%
Hypothetical**	$	1,000	$	1,021.12	$	4.13		0.81	%	$	4.23		0.83	%
Class Z
Actual	$	1,000	$	1,103.10	$	4.40		0.83	%	$	4.56		0.86	%
Hypothetical**	$	1,000	$	1,021.02	$	4.23		0.83	%	$	4.38		0.86	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

+ In connection with the Fund’s investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund’s total expenses are equal to the classes’ annualized expense ratio plus the Fund’s pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

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PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,332.3

1 All data are as of October 31, 2021. The portfolio breakdown is expressed as an approximate percentage of the Fund’s net assets inclusive of derivative exposure, based on the Adviser’s internal classification guidelines.

2 The Fund’s security type breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Consolidated Portfolio of Investments” section of the report for additional details).

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PORTFOLIO SUMMARY (continued)

October 31, 2021 (unaudited)

TEN LARGEST HOLDINGS²

Company	U.S. $ Value		Percent of Net Assets
Royal Dutch Shell PLC – Class B	$	31,068,920		2.3	%
Prologis, Inc.		26,950,674		2.0
iShares Global Energy ETF		23,204,849		1.7
Simon Property Group, Inc.		14,281,583		1.1
Digital Realty Trust, Inc.		13,290,758		1.0
Chevron Corp.		12,517,421		0.9
TotalEnergies SE		12,138,368		0.9
Welltower, Inc.		11,610,564		0.9
Mitsui Fudosan Co., Ltd.		11,534,805		0.9
BP PLC		11,279,965		0.8
	$	167,877,907		12.5	%

1 All data are as of October 31, 2021. The Fund’s country breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Consolidated Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.9% or less in the following: Austria, Belgium, Brazil, Chile, Denmark, Finland, Greece, India, Ireland, Israel, Italy, Mexico, Netherlands, New Zealand, Philippines, Russia, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, United Arab Emirates, United Republic of Tanzania and Zambia.

2 Long-term investments.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    19

CONSOLIDATED PORTFOLIO OF INVESTMENTS

October 31, 2021

Company	Shares		U.S. $ Value
COMMON STOCKS – 75.4%
Real Estate – 33.7%
Diversified Real Estate Activities – 2.7%
Ayala Land, Inc.		2,432,200	$	1,693,518
Daito Trust Construction Co., Ltd.		19,100		2,368,096
Mitsubishi Estate Co., Ltd.		191,600		2,911,742
Mitsui Fudosan Co., Ltd.		504,500		11,534,805
New World Development Co., Ltd.		1,028,750		4,462,130
Nomura Real Estate Holdings, Inc.		34,400		838,650
Sumitomo Realty & Development Co., Ltd.		50,600		1,828,680
Sun Hung Kai Properties Ltd.		597,500		7,921,848
UOL Group Ltd.		415,500		2,228,504
				35,787,973
Diversified REITs – 2.4%
Alexander & Baldwin, Inc.		112,690		2,764,286
Broadstone Net Lease, Inc.		80,450		2,139,165
Charter Hall Long Wale REIT		599,370		2,198,855
Cofinimmo SA		12,250		1,976,340
Essential Properties Realty Trust, Inc.		179,230		5,339,262
Fibra Uno Administracion SA de CV		991,230		986,030
Growthpoint Properties Ltd.(a)		1,440,142		1,221,882
ICADE		26,520		2,079,748
Land Securities Group PLC		297,780		2,797,488
Merlin Properties Socimi SA		362,400		3,924,675
Stockland		1,819,436		6,271,487
				31,699,218
Health Care REITs – 1.6%
Medical Properties Trust, Inc.		304,350		6,491,785
Physicians Realty Trust		178,296		3,389,407
Welltower, Inc.		144,410		11,610,564
				21,491,756
Hotel & Resort REITs – 0.9%
Apple Hospitality REIT, Inc.		312,640		4,911,575
Park Hotels & Resorts, Inc.(b)		235,610		4,365,853
RLJ Lodging Trust		207,970		2,998,927
				12,276,355
Industrial REITs – 5.3%
Americold Realty Trust		162,690		4,794,474
Ascendas Real Estate Investment Trust		1,088,200		2,492,447
Centuria Industrial REIT		384,710		1,061,136
Dream Industrial Real Estate Investment Trust		331,324		4,537,768
GLP J-REIT		1,693		2,761,384
Industrial & Infrastructure Fund Investment Corp.		1,353		2,480,789
LondonMetric Property PLC		676,760		2,420,461
Mitsui Fudosan Logistics Park, Inc.		403		2,142,733

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CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Plymouth Industrial REIT, Inc.		54,286	$	1,387,550
Prologis, Inc.		185,918		26,950,674
Rexford Industrial Realty, Inc.		91,090		6,121,248
Segro PLC		402,882		7,120,755
STAG Industrial, Inc.		152,240		6,627,007
				70,898,426
Office REITs – 2.7%
Alexandria Real Estate Equities, Inc.		46,191		9,429,431
alstria office REIT-AG		182,980		3,420,231
City Office REIT, Inc.		273,270		5,183,932
Cousins Properties, Inc.		165,835		6,568,724
Daiwa Office Investment Corp.		284		1,833,190
Japan Prime Realty Investment Corp.		525		1,925,652
Nippon Building Fund, Inc.		670		4,352,952
Orix JREIT, Inc.		130		215,684
True North Commercial Real Estate Investment Trust		146,620		881,426
Workspace Group PLC		174,140		1,958,986
				35,770,208
Real Estate Development – 1.6%
China Resources Land Ltd.		990,000		3,846,613
CIFI Holdings Group Co., Ltd.		8,058,000		4,472,820
Emaar Properties PJSC		1,560,120		1,707,910
Instone Real Estate Group SE(c)		88,019		2,319,899
Longfor Group Holdings Ltd.(c)		437,000		2,114,171
Megaworld Corp.		17,716,000		1,079,339
Midea Real Estate Holding Ltd.(a)(c)		2,554,000		4,407,907
Times China Holdings Ltd.		2,686,000		1,827,703
				21,776,362
Real Estate Operating Companies – 2.9%
Aroundtown SA		584,280		4,060,460
CA Immobilien Anlagen AG		64,239		2,756,431
Castellum AB(a)		110,250		2,938,562
Central Pattana PCL		820,600		1,465,247
CIFI Ever Sunshine Services Group Ltd.(c)		560,120		999,526
CTP NV(c)		118,359		2,513,467
Fastighets AB Balder – Class B(a)(b)		70,280		5,095,860
Hulic Co., Ltd.		176,200		1,694,250
LEG Immobilien SE		35,330		5,255,091
Shurgard Self Storage SA		36,080		2,210,549
Swire Properties Ltd.		783,600		2,100,805
TAG Immobilien AG		122,620		3,725,327
VGP NV		7,460		1,929,400
Vonovia SE		22,530		1,366,733
				38,111,708
Real Estate Services – 0.0%
FirstService Corp.		2,412		481,075

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    21

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Residential REITs – 5.6%
American Campus Communities, Inc.		98,240	$	5,277,453
American Homes 4 Rent – Class A		158,720		6,444,032
Bluerock Residential Growth REIT, Inc.		80,910		1,094,712
Comforia Residential REIT, Inc.		685		1,995,350
Daiwa Securities Living Investments Corp.		2,130		2,151,760
Equity Residential		5,540		478,656
Essex Property Trust, Inc.		27,260		9,266,492
Independence Realty Trust, Inc.		277,370		6,554,253
Invitation Homes, Inc.		162,450		6,701,062
Killam Apartment Real Estate Investment Trust		296,860		5,454,587
Mid-America Apartment Communities, Inc.		35,870		7,325,013
Minto Apartment Real Estate Investment Trust(c)		135,080		2,501,643
Sun Communities, Inc.		51,497		10,092,382
UDR, Inc.		129,870		7,211,681
UNITE Group PLC (The)		160,040		2,389,523
				74,938,599
Retail REITs – 3.9%
AEON REIT Investment Corp.		2,358		3,187,644
Brixmor Property Group, Inc.		240,460		5,636,382
CapitaLand Integrated Commercial Trust		2,464,760		3,925,020
Eurocommercial Properties NV		144,615		3,375,262
Federal Realty Investment Trust		42,430		5,106,451
Link REIT		579,901		5,137,597
Mercialys SA		154,538		1,678,775
NETSTREIT Corp.		185,876		4,505,634
Simon Property Group, Inc.		97,432		14,281,583
SITE Centers Corp.		282,270		4,485,270
				51,319,618
Specialized REITs – 4.1%
American Tower Corp.		12,898		3,636,849
Crown Castle International Corp.		11,850		2,136,555
CubeSmart		117,980		6,490,080
Digital Realty Trust, Inc.		84,220		13,290,758
EPR Properties		84,920		4,263,833
Equinix, Inc.		7,380		6,177,577
Iron Mountain, Inc.		24,108		1,100,289
National Storage Affiliates Trust		59,890		3,740,730
Public Storage		19,490		6,474,188
Safestore Holdings PLC		247,540		4,072,028
SBA Communications Corp.		3,004		1,037,371
VICI Properties, Inc.(a)		31,384		921,120
Weyerhaeuser Co.		39,071		1,395,616
				54,736,994
				449,288,292

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CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Energy – 9.8%
Integrated Oil & Gas – 7.3%
BP PLC		2,354,456	$	11,279,965
Chevron Corp.		109,332		12,517,421
Exxon Mobil Corp.		127,375		8,211,866
Gazprom PJSC (Sponsored ADR)		392,220		3,863,367
LUKOIL PJSC (Sponsored ADR)		19,679		2,007,848
OMV AG		30,138		1,824,655
PetroChina Co., Ltd. – Class H		13,632,000		6,572,634
Repsol SA		509,184		6,521,899
Royal Dutch Shell PLC – Class A		29,773		682,066
Royal Dutch Shell PLC – Class B		1,353,841		31,068,920
TotalEnergies SE		242,404		12,138,368
				96,689,009
Oil & Gas Equipment & Services – 0.2%
Subsea 7 SA		366,830		3,292,850
Oil & Gas Exploration & Production – 1.3%
Aker BP ASA		137,490		5,275,753
Canadian Natural Resources Ltd.		25,521		1,084,684
EOG Resources, Inc.		98,232		9,082,531
Pioneer Natural Resources Co.		3,684		688,834
Williams Cos., Inc. (The)		33,310		935,678
				17,067,480
Oil & Gas Refining & Marketing – 0.4%
ENEOS Holdings, Inc.		860,500		3,469,751
Gevo, Inc.(a)(b)		33,479		242,053
Idemitsu Kosan Co., Ltd.		16,000		436,997
Neste Oyj		2,377		132,332
Renewable Energy Group, Inc.(b)		8,841		565,824
VERBIO Vereinigte BioEnergie AG		3,118		247,915
				5,094,872
Oil & Gas Storage & Transportation – 0.6%
Antero Midstream Corp.		8,901		94,707
Cheniere Energy, Inc.(b)		6,466		668,584
Enbridge, Inc.		68,600		2,873,484
EnLink Midstream LLC(b)		7,120		55,892
Gibson Energy, Inc.(a)		4,015		80,910
Keyera Corp.(a)		6,059		155,294
Kinder Morgan, Inc.		53,441		895,137
Koninklijke Vopak NV(a)		1,792		71,318
ONEOK, Inc.		12,218		777,309
Pembina Pipeline Corp.(a)		15,080		499,214
Targa Resources Corp.		6,269		342,726
TC Energy Corp.		26,846		1,452,278
				7,966,853
				130,111,064

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    23

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Materials – 7.9%
Aluminum – 0.4%
Alcoa Corp.		77,671	$	3,568,983
Norsk Hydro ASA		164,613		1,209,159
				4,778,142
Commodity Chemicals – 0.4%
Beijing Sanju Environmental Protection and New Material Co., Ltd.(b)		689,885		656,598
Corteva, Inc.		75,330		3,250,490
Ecopro Co., Ltd.		4,315		371,012
Guangzhou Tinci Materials Technology Co., Ltd.		15,240		392,196
Kuraray Co., Ltd.		32,400		293,189
LG Chem Ltd.		404		289,892
Mitsubishi Chemical Holdings Corp.		64,200		531,411
W-Scope Corp.(a)(b)		36,600		292,930
				6,077,718
Construction Materials – 0.3%
CSR Ltd.		454,731		2,041,377
GCC SAB de CV		210,117		1,550,261
				3,591,638
Copper – 0.4%
First Quantum Minerals Ltd.		128,343		3,038,502
Lundin Mining Corp.		198,211		1,724,897
OZ Minerals Ltd.		59,404		1,129,974
				5,893,373
Diversified Chemicals – 0.2%
Daicel Corp.		46,400		347,409
Kemira Oyj(a)		21,483		329,933
LANXESS AG		3,639		245,205
Sumitomo Chemical Co., Ltd.		370,100		1,823,229
				2,745,776
Diversified Metals & Mining – 2.2%
Anglo American PLC		229,732		8,739,700
China Molybdenum Co., Ltd.(a)		825,000		510,017
Ganfeng Lithium Co., Ltd.		11,600		303,714
GEM Co., Ltd.		163,600		278,263
Glencore PLC(b)		1,751,964		8,760,837
MMC Norilsk Nickel PJSC (ADR)		63,294		1,976,241
Nanjing Hanrui Cobalt Co., Ltd.		24,200		298,908
Orocobre Ltd.(a)(b)		164,922		1,113,784
Rio Tinto Ltd.		10,788		739,115
Rio Tinto PLC		98,024		6,111,940
Zhejiang Huayou Cobalt Co., Ltd.		18,600		322,594
				29,155,113
Fertilizers & Agricultural Chemicals – 0.2%
CF Industries Holdings, Inc.		39,470		2,241,896

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CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Gold – 1.1%
Agnico Eagle Mines Ltd.		113,374	$	6,017,726
AngloGold Ashanti Ltd.		193,632		3,572,266
Barrick Gold Corp.		138,320		2,540,938
Northern Star Resources Ltd.		115,284		798,092
Regis Resources Ltd.		484,394		726,421
St. Barbara Ltd.		588,647		647,276
				14,302,719
Industrial Gases – 0.1%
Air Liquide SA		3,162		527,920
Air Products and Chemicals, Inc.		1,861		557,946
Linde PLC		1,884		601,373
				1,687,239
Paper Packaging – 0.1%
Sealed Air Corp.		12,212		724,416
Smurfit Kappa Group PLC		8,472		444,073
				1,168,489
Paper Products – 0.4%
Stora Enso Oyj – Class R		205,540		3,420,086
Suzano SA(b)		226,500		1,975,725
				5,395,811
Precious Metals & Minerals – 0.0%
Industrias Penoles SAB de CV(b)		47,462		605,885
Specialty Chemicals – 0.5%
Albemarle Corp.		1,742		436,319
Beijing Easpring Material Technology Co., Ltd.		26,500		366,828
Chr Hansen Holding A/S		1,373		109,242
Danimer Scientific, Inc.(a)(b)		23,998		354,210
Ecolab, Inc.		2,270		504,439
Evonik Industries AG		12,030		389,782
IMCD NV		1,814		402,789
Johnson Matthey PLC		10,190		380,857
Koninklijke DSM NV		2,601		568,262
Livent Corp.(b)		12,480		352,186
Novozymes A/S – Class B		3,794		279,082
Shanghai Putailai New Energy Technology Co., Ltd.		11,260		313,054
Shenzhen Capchem Technology Co., Ltd.		15,000		336,322
Sika AG		1,915		648,763
Symrise AG		1,138		157,410
Umicore SA(a)		18,619		1,067,548
Wacker Chemie AG		2,572		464,778
				7,131,871

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    25

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Steel – 1.6%
APERAM SA		79,411	$	4,734,771
ArcelorMittal SA		254,432		8,604,924
Commercial Metals Co.		21,118		679,577
Evraz PLC		190,089		1,614,616
Steel Dynamics, Inc.		21,346		1,410,544
Vale SA (Sponsored ADR) – Class B		303,110		3,858,590
				20,903,022
				105,678,692
Capital Goods – 4.0%
Aerospace & Defense – 0.0%
Hexcel Corp.(b)		9,342		530,065
Agricultural & Farm Machinery – 0.1%
Lindsay Corp.		3,157		459,880
Toro Co. (The)		2,984		284,883
				744,763
Building Products – 0.8%
A O Smith Corp.		9,429		688,977
Carrier Global Corp.		26,585		1,388,535
Cie de Saint-Gobain		20,068		1,384,944
Fletcher Building Ltd.		350,720		1,803,863
Johnson Controls International PLC		4,652		341,317
Kingspan Group PLC		2,980		343,072
Lennox International, Inc.		1,674		500,995
Nibe Industrier AB		31,588		469,829
Owens Corning		23,487		2,193,921
ROCKWOOL International A/S		778		355,791
Xinyi Glass Holdings Ltd.		128,000		360,697
Zurn Water Solutions Corp.		19,008		689,610
				10,521,551
Construction & Engineering – 0.2%
Arcosa, Inc.		16,172		836,577
Ferrovial SA(a)		13,768		434,629
Vinci SA		14,256		1,524,112
				2,795,318
Construction & Farm Machinery & Heavy Trucks – 0.0%
Cummins, Inc.		1,456		349,207
Electrical Components & Equipment – 1.4%
ABB Ltd.		11,759		389,026
Acuity Brands, Inc.		8,773		1,802,237
Advent Technologies Holdings, Inc.(a)(b)		56,712		543,868
AFC Energy PLC(b)		301,665		248,864
Amara Raja Batteries Ltd.		27,760		253,314
Ballard Power Systems, Inc.(a)(b)		36,133		654,867
Blink Charging Co.(a)(b)		11,843		376,607

26    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Camel Group Co., Ltd.		281,700	$	576,129
Ceres Power Holdings PLC(b)		14,001		238,633
Contemporary Amperex Technology Co., Ltd.		3,300		330,568
EnerSys		6,595		527,864
Eve Energy Co., Ltd.		21,200		375,785
First Solar, Inc.(b)		7,065		844,903
FuelCell Energy, Inc.(a)(b)		54,794		437,804
Gotion High-tech Co., Ltd.(b)		40,500		372,976
GS Yuasa Corp.		13,500		293,890
Hubbell, Inc.		3,509		699,589
Legrand SA		3,523		384,324
Nexans SA		2,646		265,483
nVent Electric PLC		25,762		913,263
Plug Power, Inc.(b)		12,000		459,240
PowerCell Sweden AB(a)(b)		11,096		247,991
Prysmian SpA		36,230		1,369,823
Rockwell Automation, Inc.		6,271		2,002,957
Schneider Electric SE		2,732		471,046
Signify NV(c)		11,990		580,992
SMA Solar Technology AG		8,964		473,952
Sunrun, Inc.(a)(b)		12,799		738,246
Vertiv Holdings Co.		57,410		1,474,289
				18,348,530
Heavy Electrical Equipment – 0.4%
Bloom Energy Corp.(b)		14,667		458,490
CS Wind Corp.		5,270		314,617
ITM Power PLC(a)(b)		49,114		328,440
Ming Yang Smart Energy Group Ltd.		104,319		504,922
NARI Technology Co., Ltd.		62,560		380,923
NEL ASA(b)		164,208		347,672
Nordex SE(b)		22,766		418,378
Siemens Energy AG(b)		22,603		648,719
Siemens Gamesa Renewable Energy SA(a)(b)		14,778		401,010
TPI Composites, Inc.(b)		11,283		379,447
Unison Co., Ltd./South Korea(b)		117,462		347,216
Vestas Wind Systems A/S		6,247		270,055
Xinjiang Goldwind Science & Technology Co., Ltd. – Class H		218,000		487,512
				5,287,401
Industrial Conglomerates – 0.1%
General Electric Co.		4,926		516,590
Honeywell International, Inc.		2,617		572,128
Roper Technologies, Inc.		1,074		523,972
				1,612,690
Industrial Machinery – 0.9%
Chart Industries, Inc.(b)		2,449		434,746

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CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
China Conch Venture Holdings Ltd.		79,500	$	386,318
Energy Recovery, Inc.(b)		25,821		524,683
Evoqua Water Technologies Corp.(b)		13,199		552,114
GEA Group AG		6,521		321,167
John Bean Technologies Corp.		3,342		493,781
Kurita Water Industries Ltd.		3,600		177,810
McPhy Energy SA(b)		10,858		294,620
Mitsubishi Heavy Industries Ltd.		68,000		1,738,954
Mueller Industries, Inc.		12,117		637,839
NGK Insulators Ltd.		21,800		362,995
Pentair PLC		8,506		629,189
Snap-on, Inc.		7,402		1,504,308
SPX Corp.(b)		9,623		559,000
Techtronic Industries Co., Ltd.		91,000		1,869,618
Trane Technologies PLC		1,599		289,307
Watts Water Technologies, Inc.		1,871		355,527
Xylem, Inc./NY		4,288		559,970
				11,691,946
Trading Companies & Distributors – 0.1%
WW Grainger, Inc.		3,997		1,851,051
				53,732,522
Utilities – 3.6%
Electric Utilities – 1.1%
Acciona SA		1,777		341,260
AusNet Services Ltd.		52,502		97,635
Avangrid, Inc.		14,135		744,915
Contact Energy Ltd.		20,730		121,640
Edison International		10,410		655,101
Elia Group SA/NV(a)		922		107,564
Enel SpA		585,486		4,901,561
Eversource Energy		9,422		799,928
Exelon Corp.		13,834		735,831
Fjordkraft Holding ASA(c)		2,632		15,670
Fortis, Inc./Canada		12,919		575,071
Hydro One Ltd.(c)		8,364		199,841
Iberdrola SA		45,224		534,029
Infratil Ltd.		16,493		97,860
NextEra Energy, Inc.		5,340		455,662
NRG Energy, Inc.		40,668		1,622,247
Orsted AS(c)		1,665		235,169
PG&E Corp.(b)		41,366		479,846
Red Electrica Corp. SA		23,367		486,542
Spark Infrastructure Group		48,115		102,009
SSE PLC		9,148		206,009
Terna – Rete Elettrica Nazionale		70,453		524,930
Verbund AG(a)		2,666		277,910
				14,318,230

28    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Gas Utilities – 0.4%
APA Group(a)		32,348	$	200,708
Atmos Energy Corp.		3,586		330,342
Beijing Enterprises Holdings Ltd.		13,148		50,539
Chesapeake Utilities Corp.		482		63,176
China Gas Holdings Ltd.		67,353		168,114
China Resources Gas Group Ltd.		24,742		132,924
Enagas SA		6,823		153,104
ENN Energy Holdings Ltd.		20,754		357,560
Hong Kong & China Gas Co., Ltd.		296,724		460,970
Italgas SpA		13,310		84,565
Kunlun Energy Co., Ltd.		109,202		99,459
National Fuel Gas Co.		2,500		143,575
Naturgy Energy Group SA		9,038		237,481
New Jersey Resources Corp.		2,643		99,932
Northwest Natural Holding Co.		841		37,921
ONE Gas, Inc.		1,467		98,729
Snam SpA		56,207		318,345
Southwest Gas Holdings, Inc.		1,620		112,185
Spire, Inc.		1,417		88,931
Toho Gas Co., Ltd.		2,721		80,603
Tokyo Gas Co., Ltd.		11,244		195,116
Towngas China Co., Ltd.		26,698		18,329
UGI Corp.		37,546		1,629,872
				5,162,480
Independent Power and Renewable Electricity Producers – 0.9%
Albioma SA		14,005		550,943
Atlantica Sustainable Infrastructure PLC(a)		16,858		663,362
Azure Power Global Ltd.(a)(b)		19,907		473,588
Boralex, Inc.		19,602		606,623
Brookfield Renewable Corp.		12,557		520,097
China Longyuan Power Group Corp. Ltd.		180,000		421,027
EDP Renovaveis SA		110,007		3,064,751
Energix-Renewable Energies Ltd.		75,069		353,318
Enlight Renewable Energy Ltd.(b)		149,790		369,281
Falck Renewables SpA(a)		35,245		355,461
Innergex Renewable Energy, Inc.(a)		36,920		614,538
Meridian Energy Ltd.		41,937		150,231
Neoen SA(b)(c)		5,486		252,589
NextEra Energy Partners LP		8,157		703,949
Omega Geracao SA(b)		44,100		255,748
Ormat Technologies, Inc.(a)(b)		8,140		588,766
RENOVA, Inc.(b)		7,500		329,932
Solaria Energia y Medio Ambiente SA(b)		17,349		347,192
Terna Energy SA		20,726		280,323
TransAlta Renewables, Inc.		43,427		642,843
Xinyi Energy Holdings Ltd.		546,000		321,943
				11,866,505

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    29

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Independent Power Producers & Energy Traders – 0.2%
AES Corp. (The)		24,013	$	603,447
Cia Energetica de Sao Paulo (Preference Shares)		93,200		421,099
Clearway Energy, Inc.		18,012		594,216
Drax Group PLC		62,232		452,602
ERG SpA		11,773		425,287
Guangxi Guiguan Electric Power Co., Ltd.		299,800		271,255
Northland Power, Inc.		19,571		629,226
				3,397,132
Multi-Utilities – 0.5%
ACEA SpA		1,167		25,308
Algonquin Power & Utilities Corp.(a)		42,489		612,479
CenterPoint Energy, Inc.		16,255		423,280
Consolidated Edison, Inc.		9,689		730,551
E.ON SE		49,460		627,143
National Grid PLC		133,115		1,704,345
NiSource, Inc.		10,758		265,400
NorthWestern Corp.		1,413		80,343
RWE AG		17,752		683,304
Sempra Energy		8,755		1,117,401
Suez SA		5,247		119,400
United Utilities Group PLC		35,594		505,903
Unitil Corp.		434		18,119
Veolia Environnement SA		8,791		287,105
				7,200,081
Water Utilities – 0.5%
Aguas Andinas SA		1,812,279		345,302
American States Water Co.		6,475		588,189
American Water Works Co., Inc.		7,664		1,334,916
Beijing Enterprises Water Group Ltd.		1,214,417		464,192
California Water Service Group		10,654		648,615
China Water Affairs Group Ltd.		23,271		23,917
Cia de Saneamento Basico do Estado de Sao Paulo		63,500		396,045
Cia de Saneamento Basico do Estado de Sao Paulo (ADR)(a)		9,369		58,837
Essential Utilities, Inc.		6,131		288,586
Guangdong Investment Ltd.		176,000		221,296
Middlesex Water Co.		3,792		417,575
Pennon Group PLC		28,993		462,454
Severn Trent PLC		10,683		400,103
SJW Group		10,349		682,206
				6,332,233
				48,276,661

30    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Software & Services – 2.1%
Application Software – 0.5%
Adobe, Inc.(b)		3,712	$	2,414,136
Autodesk, Inc.(b)		375		119,104
Bentley Systems, Inc.		3,515		207,912
Constellation Software, Inc./Canada		664		1,166,931
Dropbox, Inc. – Class A(b)		33,466		1,020,378
Fair Isaac Corp.(b)		1,197		476,645
Intuit, Inc.		1,815		1,136,172
RingCentral, Inc. – Class A(b)		1,951		475,615
				7,016,893
Data Processing & Outsourced Services – 0.1%
Western Union Co. (The) – Class W		46,591		848,888
Internet Services & Infrastructure – 0.1%
GDS Holdings Ltd. (ADR)(b)		14,210		844,074
Vnet Group, Inc. (ADR)(b)		49,290		772,867
				1,616,941
IT Consulting & Other Services – 0.4%
Accenture PLC – Class A		4,144		1,486,826
EPAM Systems, Inc.(b)		2,392		1,610,390
Gartner, Inc.(b)		5,042		1,673,490
International Business Machines Corp.		3,640		455,364
				5,226,070
Systems Software – 1.0%
Fortinet, Inc.(b)		3,030		1,019,110
Microsoft Corp.		25,446		8,438,402
Oracle Corp.		8,968		860,390
ServiceNow, Inc.(b)		3,001		2,093,978
Trend Micro, Inc./Japan		15,200		859,110
				13,270,990
				27,979,782
Pharmaceuticals & Biotechnology – 1.5%
Biotechnology – 0.2%
AbbVie, Inc.		15,841		1,816,487
Amgen, Inc.		1,804		373,374
Horizon Therapeutics PLC(b)		2,038		244,377
Jinyu Bio-Technology Co., Ltd.		72,000		179,194
Moderna, Inc.(b)		219		75,601
				2,689,033
Life Sciences Tools & Services – 0.6%
Bio-Rad Laboratories, Inc. – Class A(b)		2,442		1,940,609
Eurofins Scientific SE		3,012		355,461
Mettler-Toledo International, Inc.(b)		1,188		1,759,285
Sartorius Stedim Biotech		2,204		1,214,780

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    31

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Waters Corp.(b)		6,325	$	2,324,754
				7,594,889
Pharmaceuticals – 0.7%
Bayer AG		9,674		545,204
Elanco Animal Health, Inc.(b)		22,514		740,260
Eli Lilly & Co.		9,710		2,473,720
Novo Nordisk A/S – Class B		23,845		2,614,720
Pfizer, Inc.		44,957		1,966,419
Sumitomo Dainippon Pharma Co., Ltd.(a)		4,800		67,880
Takeda Pharmaceutical Co., Ltd.		35,800		1,004,756
				9,412,959
				19,696,881
Food Beverage & Tobacco – 1.4%
Agricultural Products – 0.3%
Archer-Daniels-Midland Co.		11,555		742,293
Bunge Ltd.		20,333		1,883,649
Darling Ingredients, Inc.(b)		8,698		735,155
				3,361,097
Brewers – 0.0%
Kirin Holdings Co., Ltd.		37,800		657,941
Packaged Foods & Meats – 0.9%
a2 Milk Co., Ltd. (The)(a)(b)		40,890		192,610
Beyond Meat, Inc.(a)(b)		3,563		352,666
Danone SA		5,276		343,920
Glanbia PLC		21,445		350,220
Hershey Co. (The)		6,707		1,176,073
Hormel Foods Corp.		13,743		581,604
JBS SA		66,700		461,504
Kellogg Co.		6,559		402,067
Kerry Group PLC – Class A		2,160		289,897
Maple Leaf Foods, Inc.		65,160		1,420,505
Marfrig Global Foods SA		85,100		399,580
Minerva SA/Brazil		145,700		251,447
Mowi ASA		136,532		3,959,041
Nestle SA		1,157		152,617
Pilgrim’s Pride Corp.(b)		24,289		683,978
Sao Martinho SA		31,900		216,480
Tyson Foods, Inc. – Class A		9,628		769,951
WH Group Ltd.(c)		392,500		275,148
				12,279,308
Tobacco – 0.2%
Altria Group, Inc.		7,407		326,723
Philip Morris International, Inc.		18,721		1,769,883
				2,096,606
				18,394,952

32    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Semiconductors & Semiconductor Equipment – 1.3%
Semiconductor Equipment – 0.6%
Applied Materials, Inc.		15,640	$	2,137,206
ASML Holding NV		3,682		2,993,096
Enphase Energy, Inc.(b)		2,418		560,082
GCL-Poly Energy Holdings Ltd.(b)(d)(e)		208,000		31,194
KLA Corp.		495		184,516
Lam Research Corp.		594		334,761
Meyer Burger Technology AG(a)(b)		381,744		182,179
Sino-American Silicon Products, Inc.		61,000		417,829
SolarEdge Technologies, Inc.(b)		1,529		542,306
Teradyne, Inc.		3,500		483,840
Xinyi Solar Holdings Ltd.		140,000		290,816
				8,157,825
Semiconductors – 0.7%
Advanced Micro Devices, Inc.(b)		10,505		1,263,016
Broadcom, Inc.		2,114		1,123,950
Canadian Solar, Inc.(a)(b)		13,969		580,412
Flat Glass Group Co., Ltd.(a)		84,421		452,553
LONGi Green Energy Technology Co., Ltd. – Class A		20,780		316,832
NVIDIA Corp.		5,019		1,283,208
QUALCOMM, Inc.		10,837		1,441,755
STMicroelectronics NV		22,117		1,050,088
SunPower Corp.(a)(b)		16,094		541,724
Wolfspeed, Inc.(a)(b)		4,771		573,045
				8,626,583
				16,784,408
Banks – 1.1%
Diversified Banks – 0.9%
Banco Bilbao Vizcaya Argentaria SA		107,180		750,059
Bank of America Corp.		30,760		1,469,713
BNP Paribas SA		7,784		521,039
Commonwealth Bank of Australia		13,972		1,107,451
Danske Bank A/S		11,518		194,903
ING Groep NV		101,862		1,545,135
JPMorgan Chase & Co.		14,992		2,546,991
National Bank of Canada		23,543		1,949,108
Raiffeisen Bank International AG		21,156		618,177
Societe Generale SA		59,118		1,974,773
				12,677,349
Regional Banks – 0.2%
Fifth Third Bancorp		12,388		539,250
Mebuki Financial Group, Inc.		289,600		592,960
SVB Financial Group(b)		1,527		1,095,470
				2,227,680
				14,905,029

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    33

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Technology Hardware & Equipment – 0.9%
Electronic Components – 0.0%
Samsung SDI Co., Ltd.		294	$	185,493
Electronic Equipment & Instruments – 0.1%
Itron, Inc.(b)		8,493		660,501
Landis+Gyr Group AG(b)		8,090		556,168
				1,216,669
Technology Distributors – 0.2%
Arrow Electronics, Inc.(b)		14,757		1,708,122
CDW Corp./DE		5,232		976,553
				2,684,675
Technology Hardware, Storage & Peripherals – 0.6%
Apple, Inc.		56,995		8,537,851
				12,624,688
Media & Entertainment – 0.9%
Broadcasting – 0.0%
RAI Way SpA(c)		2,610		15,810
Cable & Satellite – 0.0%
SES SA		10,513		94,419
Interactive Home Entertainment – 0.2%
Electronic Arts, Inc.		14,249		1,998,423
Sea Ltd. (ADR)(b)		860		295,470
				2,293,893
Interactive Media & Services – 0.7%
Alphabet, Inc. – Class A(b)		1,001		2,963,881
Alphabet, Inc. – Class C(b)		1,054		3,125,542
Meta Platforms, Inc. – Class A(b)		11,929		3,859,867
				9,949,290
Movies & Entertainment – 0.0%
Bollore SA		11,038		64,155
Universal Music Group NV		2,592		75,253
				139,408
				12,492,820
Retailing – 0.9%
Computer & Electronics Retail – 0.0%
Best Buy Co., Inc.		4,470		546,413
Department Stores – 0.1%
Next PLC		10,971		1,195,723
General Merchandise Stores – 0.0%
Target Corp.		1,863		483,672

34    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Home Improvement Retail – 0.3%
Home Depot, Inc. (The)		8,893	$	3,305,884
Lowe’s Cos., Inc.		375		87,682
				3,393,566
Internet & Direct Marketing Retail – 0.5%
Amazon.com, Inc.(b)		1,531		5,163,190
HelloFresh SE(b)		19,184		1,554,650
				6,717,840
				12,337,214
Diversified Financials – 0.9%
Asset Management & Custody Banks – 0.2%
Brookfield Infrastructure Corp.		961		58,275
Carlyle Group, Inc. (The)		36,703		2,060,874
Hicl Infrastructure PLC		53,101		122,308
				2,241,457
Consumer Finance – 0.2%
Ally Financial, Inc.		32,052		1,530,163
Capital One Financial Corp.		6,077		917,809
				2,447,972
Financial Exchanges & Data – 0.1%
Moody’s Corp.		2,736		1,105,754
Investment Banking & Brokerage – 0.2%
Goldman Sachs Group, Inc. (The)		3,757		1,552,956
Raymond James Financial, Inc.		11,392		1,123,137
				2,676,093
Mortgage REITs – 0.0%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a)		6,007		362,823
Multi-Sector Holdings – 0.2%
Industrivarden AB		10,906		359,769
Investor AB(a)		35,208		812,387
Kinnevik AB(b)		30,533		1,198,445
				2,370,601
Other Diversified Financial Services – 0.0%
Voya Financial, Inc.		2,522		175,960
				11,380,660
Health Care Equipment & Services – 0.8%
Health Care Distributors – 0.1%
AmerisourceBergen Corp. – Class A		9,365		1,142,717

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    35

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Health Care Equipment – 0.3%
ABIOMED, Inc.(b)		809	$	268,620
Danaher Corp.		2,250		701,483
IDEXX Laboratories, Inc.(b)		3,934		2,620,595
ResMed, Inc.		1,956		514,252
				4,104,950
Health Care Facilities – 0.0%
Universal Health Services, Inc. – Class B		942		116,902
Health Care Supplies – 0.1%
Align Technology, Inc.(b)		1,197		747,371
Cooper Cos., Inc. (The)		2,204		918,892
				1,666,263
Health Care Technology – 0.1%
Cerner Corp.		26,630		1,978,343
Managed Health Care – 0.2%
Humana, Inc.		477		220,927
Molina Healthcare, Inc.(b)		6,767		2,001,137
				2,222,064
				11,231,239
Transportation – 0.7%
Air Freight & Logistics – 0.1%
Kuehne & Nagel International AG		5,012		1,578,532
Airport Services – 0.1%
Aena SME SA(b)(c)		2,015		330,937
Aeroports de Paris(b)		706		94,198
Auckland International Airport Ltd.(b)		33,107		189,765
Beijing Capital International Airport Co., Ltd.(b)		44,827		29,149
Flughafen Zurich AG(b)		522		94,266
Fraport AG Frankfurt Airport Services Worldwide(b)		1,014		72,573
Grupo Aeroportuario del Centro Norte SAB de CV (ADR)(b)		943		45,632
Grupo Aeroportuario del Pacifico SAB de CV (ADR)(a)		957		120,850
Grupo Aeroportuario del Sureste SAB de CV (ADR)		540		108,891
Hainan Meilan International Airport Co., Ltd.(b)		3,670		14,851
Japan Airport Terminal Co., Ltd.(b)		2,553		126,648
Sydney Airport(a)(b)		36,254		224,827
				1,452,587
Highways & Railtracks – 0.5%
Atlantia SpA(b)		13,810		266,925
Atlas Arteria Ltd.		26,293		123,568

36    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Getlink SE		11,912	$	183,339
Jiangsu Expressway Co., Ltd. – Class H		33,503		31,768
Shenzhen Expressway Co., Ltd. – Class H		19,059		17,963
Transurban Group(a)		521,449		5,313,123
Yuexiu Transport Infrastructure Ltd.		25,688		16,442
Zhejiang Expressway Co., Ltd. – Class H		39,311		34,913
				5,988,041
Marine – 0.0%
AP Moller – Maersk A/S – Class B		36		104,326
Marine Ports & Services – 0.0%
China Merchants Holdings International Co., Ltd.		36,945		61,594
COSCO SHIPPING Ports Ltd.		45,447		37,829
Hamburger Hafen und Logistik AG		639		14,323
Hutchison Port Holdings Trust		138,521		29,839
Westshore Terminals Investment Corp.(a)		1,075		23,253
				166,838
				9,290,324
Consumer Services – 0.7%
Casinos & Gaming – 0.0%
La Francaise des Jeux SAEM(c)		7,430		385,806
Hotels, Resorts & Cruise Lines – 0.2%
Hilton Grand Vacations, Inc.(b)		47,290		2,377,741
Leisure Facilities – 0.1%
Planet Fitness, Inc.(b)		13,700		1,089,835
Restaurants – 0.3%
Chipotle Mexican Grill, Inc. – Class A(b)		711		1,264,890
Darden Restaurants, Inc.		410		59,097
Dine Brands Global, Inc.(b)		13,990		1,182,295
Domino’s Pizza Enterprises Ltd.		17,830		1,828,967
Domino’s Pizza, Inc.		476		232,750
				4,567,999
Specialized Consumer Services – 0.1%
WW International, Inc.(b)		35,673		619,283
				9,040,664
Consumer Durables & Apparel – 0.7%
Apparel, Accessories & Luxury Goods – 0.2%
Lululemon Athletica, Inc.(b)		170		79,222
Pandora A/S		13,715		1,919,216
				1,998,438
Consumer Electronics – 0.0%
Panasonic Corp.		20,600		254,740

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    37

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Homebuilding – 0.4%
Construtora Tenda SA		304,500	$	920,438
Corp. GEO SAB de CV Series B(b)(d)(e)		1,321		– 0	–
Desarrolladora Homex SAB de CV(b)		1,590		4
Installed Building Products, Inc.		3,496		444,167
MRV Engenharia e Participacoes SA		203,700		366,341
PulteGroup, Inc.		60,220		2,895,377
Urbi Desarrollos Urbanos SAB de CV(b)		9		4
				4,626,331
Household Appliances – 0.1%
Electrolux AB(a)		63,682		1,445,229
Whirlpool Corp.		1,505		317,299
				1,762,528
				8,642,037
Commercial & Professional Services – 0.5%
Environmental & Facilities Services – 0.3%
Aker Carbon Capture AS(b)		71,394		258,710
Casella Waste Systems, Inc. – Class A(b)		6,406		555,528
Clean Harbors, Inc.(b)		6,125		689,308
Ecopro HN Co., Ltd.(b)		3,521		330,240
Republic Services, Inc. – Class A		5,130		690,498
Tetra Tech, Inc.		3,576		628,160
Waste Management, Inc.		3,711		594,614
				3,747,058
Human Resource & Employment Services – 0.1%
Robert Half International, Inc.		17,487		1,977,255
Research & Consulting Services – 0.1%
Booz Allen Hamilton Holding Corp.		8,885		771,751
				6,496,064
Insurance – 0.5%
Life & Health Insurance – 0.5%
iA Financial Corp., Inc.		13,895		821,956
Japan Post Insurance Co., Ltd.		65,500		1,062,717
Manulife Financial Corp.		18,434		359,117
MetLife, Inc.		26,688		1,676,006
Prudential Financial, Inc.		17,970		1,977,599
				5,897,395
Multi-line Insurance – 0.0%
Aviva PLC		39,442		212,826
				6,110,221
Automobiles & Components – 0.5%
Auto Parts & Equipment – 0.3%
Aisin Corp.		39,500		1,445,414

38    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
BorgWarner, Inc.		7,709	$	347,445
Exide Industries Ltd.		111,362		257,566
Lear Corp.		2,121		364,494
Magna International, Inc. – Class A (Canada)		8,374		681,166
Tianneng Power International Ltd.(a)		446,000		509,284
				3,605,369
Automobile Manufacturers – 0.2%
Nissan Motor Co., Ltd.(b)		162,300		826,084
Tesla, Inc.(b)		1,462		1,628,668
				2,454,752
				6,060,121
Telecommunication Services – 0.4%
Integrated Telecommunication Services – 0.4%
Cellnex Telecom SA(a)(c)		15,645		962,162
China Tower Corp. Ltd.(c)		1,189,818		154,199
Eutelsat Communications SA		4,550		64,670
Helios Towers PLC(a)(b)		12,067		25,498
Infrastrutture Wireless Italiane SpA(a)(c)		208,630		2,304,966
Telefonica SA		282,470		1,226,953
Telenor ASA		15,611		246,662
Washington H Soul Pattinson & Co., Ltd.		6,458		159,039
				5,144,149
Wireless Telecommunication Services – 0.0%
Softbank Corp.		33,400		455,899
				5,600,048
Food & Staples Retailing – 0.2%
Food Retail – 0.1%
George Weston Ltd.(a)		1,126		121,662
J Sainsbury PLC		70,879		290,310
Kroger Co. (The)		36,154		1,446,883
				1,858,855
Hypermarkets & Super Centers – 0.1%
Costco Wholesale Corp.		2,300		1,130,542
				2,989,397
Industrials – 0.2%
Machinery – 0.2%
AGCO Corp.		2,876		351,476
CNH Industrial NV		37,380		643,892
Deere & Co.		3,024		1,035,145
				2,030,513
Information Technology – 0.1%
Technology Hardware, Storage & Peripherals – 0.1%
NetApp, Inc.		20,815		1,858,779

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    39

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Household & Personal Products – 0.1%
Personal Products – 0.1%
BellRing Brands, Inc.(b)		22,864	$	613,212
Estee Lauder Cos., Inc. (The) – Class A		1,732		561,740
				1,174,952
Total Common Stocks (cost $840,273,071)				1,004,208,024
INVESTMENT COMPANIES – 3.2%
Funds and Investment Trusts – 3.2%(f)
3i Infrastructure PLC		17,108		77,479
iShares Global Energy ETF		798,790		23,204,849
iShares MSCI Global Metals & Mining Producers ETF(a)		92,136		3,908,870
JPMorgan Alerian MLP Index ETN(a)		213,230		4,042,841
VanEck Vectors Agribusiness ETF		54,379		5,203,527
VanEck Vectors Gold Miners ETF		215,430		6,831,285
Total Investment Companies (cost $39,522,892)				43,268,851
SHORT-TERM INVESTMENTS – 17.6%
Investment Companies – 17.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(f)(g)(h) (cost $233,996,687)		233,996,687		233,996,687
Total Investments Before Security Lending Collateral for Securities Loaned – 96.2% (cost $1,113,792,650)				1,281,473,562
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 1.5%
Investment Companies – 1.5%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(f)(g)(h) (cost $20,370,388)		20,370,388		20,370,388
Total Investments – 97.7% (cost $1,134,163,038)				1,301,843,950
Other assets less liabilities – 2.3%				30,496,152
Net Assets – 100.0%			$	1,332,340,102

40    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Copper Futures		134		December 2021	$	14,632,800	$	(485,786	)
LME Nickel Futures		165		November 2021		19,330,740		810,409
LME Primary Aluminum Futures		366		November 2021		24,817,088		2,229,494
LME Zinc Futures		248		November 2021		21,341,950		2,714,498
Gold 100 OZ Futures		214		December 2021		38,175,460		(726,276	)
Natural Gas Futures		154		December 2021		8,514,660		(503,317	)
WTI Crude Futures		482		December 2021		39,417,960		294,654
Gasoline RBOB Futures		87		December 2021		8,470,703		1,137,023
NY Harbor ULSD Futures		100		December 2021		10,340,820		1,494,967
Brent Crude Futures		457		January 2022		37,213,510		2,581,215
Silver Futures		75		December 2021		8,980,875		36,771
Low Sulphur Gasoil Futures		125		March 2022		8,643,750		1,334,148
S&P 500 E-Mini Futures		68		December 2021		15,629,800		318,463
Platinum Futures		88		January 2022		4,491,080		290,982
Cattle Feeder Futures		94		November 2021		7,359,025		(47,278	)
Bcom Comdty Index Futures		1,265		December 2021		13,080,100		416,071
Coffee ‘C’ Futures		102		May 2022		7,925,400		161,242
LME Nickel Futures		107		January 2022		12,493,962		59,999
Natural Gas Futures		785		February 2022		40,388,250		(511,066	)
LME Primary Aluminum Futures		307		January 2022		20,860,650		123,718
LME Zinc Futures		132		January 2022		11,171,325		58,970
Sugar 11 (World) Futures		479		April 2022		10,166,296		(18,626	)
Corn Futures		494		May 2022		14,319,825		122,585
Wheat Futures (CBT)		279		May 2022		10,992,600		(3,517	)
Live Cattle Futures		128		April 2022		7,025,920		(21,034	)
Cotton No.2 Futures		122		May 2022		6,689,870		(43,916	)
Soybean Meal Futures		297		May 2022		9,943,560		16,807
Soybean Oil Futures		299		May 2022		10,711,974		41,450
Lean Hogs Futures		124		April 2022		4,069,680		54,380
KC HRW Wheat Futures		265		May 2022		10,444,313		(38,683	)
Cocoa Futures		139		May 2022		3,608,440		(2,369	)
Coffee Robusta Futures		287		January 2022		6,354,180		258,964
Soybean Futures		262		May 2022		16,614,075		33,848
Sold Contracts
LME Primary Aluminum Futures		366		November 2021		24,817,088		(171,781	)
LME Zinc Futures		248		November 2021		21,341,950		(1,328,140	)
LME Nickel Futures		165		November 2021		19,330,740		(462,890	)
MSCI Emerging Markets Futures		48		December 2021		3,028,800		98,641
MSCI EAFE Futures		51		December 2021		5,965,980		(59,169	)
							$	10,265,451

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    41

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	AUD	6,449	USD	4,836		11/09/2021	$	(15,311	)
Australia and New Zealand Banking Group Ltd.	USD	4,832	AUD	6,449		11/09/2021		18,961
Bank of America, NA	EUR	4,785	USD	5,685		11/08/2021		152,568
Bank of America, NA	SGD	1,591	USD	1,166		11/10/2021		(13,467	)
Bank of America, NA	PEN	33,369	USD	8,131		11/12/2021		(228,659	)
Bank of America, NA	PEN	32,003	USD	8,040		11/12/2021		22,817
Bank of America, NA	SEK	22,984	USD	2,654		11/17/2021		(22,833	)
Bank of America, NA	USD	9,273	JPY	1,056,208		11/17/2021		(4,899	)
Bank of America, NA	CNH	21,721	USD	3,352		12/09/2021		(26,513	)
Barclays Bank PLC	EUR	2,613	USD	3,023		11/08/2021		2,265
Barclays Bank PLC	GBP	4,428	USD	5,953		11/10/2021		(106,648	)
Barclays Bank PLC	USD	6,132	GBP	4,428		11/10/2021		(72,314	)
Barclays Bank PLC	USD	4,659	GBP	3,405		11/10/2021		934
Barclays Bank PLC	USD	5,478	SGD	7,463		11/10/2021		55,930
Barclays Bank PLC	CLP	2,346,092	USD	2,966		11/12/2021		85,339
Barclays Bank PLC	COP	39,093,273	USD	10,161		11/12/2021		(213,473	)
Barclays Bank PLC	AUD	3,965	USD	2,979		11/17/2021		(3,814	)
Barclays Bank PLC	EUR	24,806	USD	28,914		11/17/2021		230,169
Barclays Bank PLC	USD	9,044	SEK	77,680		11/17/2021		2,320
Barclays Bank PLC	CAD	5,836	USD	4,715		11/19/2021		(134	)
Barclays Bank PLC	USD	4,801	CAD	5,922		11/19/2021		(15,686	)
Barclays Bank PLC	CZK	46,665	USD	2,129		12/07/2021		30,187
Barclays Bank PLC	USD	1,133	MYR	4,704		12/22/2021		(409	)
Barclays Bank PLC	USD	8,354	MYR	35,061		12/22/2021		84,383
Barclays Bank PLC	INR	833,740	USD	11,055		01/07/2022		22,364
Barclays Bank PLC	KRW	3,613,044	USD	3,080		01/20/2022		9,263
Barclays Bank PLC	USD	1,668	KRW	1,950,140		01/20/2022		(10,146	)
Barclays Bank PLC	IDR	48,279,039	USD	3,359		01/27/2022		(3,884	)
Barclays Bank PLC	IDR	8,318,884	USD	581		01/27/2022		1,595
Barclays Bank PLC	PHP	894,584	USD	17,446		01/27/2022		(159,678	)
Barclays Bank PLC	USD	4,527	IDR	65,617,750		01/27/2022		44,047
Barclays Bank PLC	USD	35,984	PHP	1,846,819		01/27/2022		362,202
BNP Paribas SA	USD	4,541	AUD	6,226		11/09/2021		142,488
BNP Paribas SA	CHF	48,024	USD	52,011		11/17/2021		(460,893	)
BNP Paribas SA	HUF	2,824,060	USD	9,535		12/07/2021		476,867
BNP Paribas SA	USD	1,597	HUF	473,121		12/07/2021		(79,891	)
BNP Paribas SA	MXN	95,656	USD	4,684		01/13/2022		89,425
BNP Paribas SA	DKK	14,922	USD	2,325		01/20/2022		797
Citibank, NA	AUD	1,937	USD	1,396		11/09/2021		(61,256	)
Citibank, NA	JPY	150,214	USD	1,372		11/17/2021		53,729
Citibank, NA	USD	1,330	JPY	145,602		11/17/2021		(52,079	)
Citibank, NA	HUF	473,121	USD	1,515		12/07/2021		(2,832	)
Citibank, NA	CNH	29,710	USD	4,569		12/09/2021		(52,325	)
Citibank, NA	NOK	10,585	USD	1,268		01/20/2022		15,828
Credit Suisse International	ZAR	106,024	USD	7,044		11/24/2021		121,784
Credit Suisse International	USD	5,979	HUF	1,871,151		12/07/2021		22,550
Credit Suisse International	USD	3,677	CNH	23,556		12/09/2021		(12,299	)
Credit Suisse International	USD	12,247	CNH	79,322		12/09/2021		91,755

42    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Credit Suisse International	USD	6,095	ILS	19,679		12/09/2021	$	124,843
Credit Suisse International	USD	1,285	MXN	26,432		01/13/2022		(15,487	)
Deutsche Bank AG	BRL	97,157	USD	17,380		11/03/2021		165,077
Deutsche Bank AG	USD	17,810	BRL	97,157		11/03/2021		(595,049	)
Deutsche Bank AG	USD	4,811	CLP	3,921,778		11/12/2021		4,565
Deutsche Bank AG	GBP	697	USD	957		11/17/2021		3,194
Deutsche Bank AG	NZD	35,950	USD	25,411		11/17/2021		(346,178	)
Deutsche Bank AG	USD	23,794	JPY	2,717,885		11/17/2021		54,512
Deutsche Bank AG	USD	25,718	NOK	216,766		11/17/2021		(60,929	)
Deutsche Bank AG	USD	649	PLN	2,566		12/07/2021		(6,213	)
Deutsche Bank AG	USD	24,365	RUB	1,795,453		12/15/2021		726,728
Goldman Sachs Bank USA	BRL	57,547	USD	10,198		11/03/2021		1,446
Goldman Sachs Bank USA	USD	10,338	BRL	57,547		11/03/2021		(141,967	)
Goldman Sachs Bank USA	AUD	4,223	USD	3,071		11/09/2021		(105,180	)
Goldman Sachs Bank USA	GBP	655	USD	900		11/10/2021		3,226
Goldman Sachs Bank USA	COP	32,491,316	USD	8,505		11/12/2021		(116,981	)
Goldman Sachs Bank USA	AUD	31,605	USD	23,412		11/17/2021		(364,300	)
Goldman Sachs Bank USA	JPY	260,270	USD	2,280		11/17/2021		(4,222	)
Goldman Sachs Bank USA	USD	8,453	CAD	10,412		11/17/2021		(40,204	)
Goldman Sachs Bank USA	USD	5,451	CHF	5,007		11/17/2021		19,361
Goldman Sachs Bank USA	USD	52,948	EUR	45,605		11/17/2021		(213,355	)
Goldman Sachs Bank USA	USD	1,258	JPY	140,792		11/17/2021		(22,971	)
Goldman Sachs Bank USA	USD	6,828	ZAR	103,361		11/24/2021		(78,901	)
Goldman Sachs Bank USA	BRL	5,353	USD	948		12/02/2021		4,578
Goldman Sachs Bank USA	ILS	19,679	USD	6,149		12/09/2021		(71,361	)
Goldman Sachs Bank USA	RUB	238,018	USD	3,362		12/15/2021		36,024
Goldman Sachs Bank USA	USD	5,716	RUB	418,242		12/15/2021		128,965
Goldman Sachs Bank USA	USD	13,909	MYR	57,832		12/22/2021		9,373
Goldman Sachs Bank USA	USD	3,459	CHF	3,174		01/13/2022		14,951
HSBC Bank USA	EUR	2,086	USD	2,415		11/08/2021		3,588
HSBC Bank USA	USD	3,008	SGD	4,098		11/10/2021		30,690
HSBC Bank USA	CLP	7,074,081	USD	8,898		11/12/2021		210,968
HSBC Bank USA	COP	29,544,703	USD	7,880		11/12/2021		39,865
HSBC Bank USA	USD	5,153	CLP	4,119,483		11/12/2021		(94,516	)
HSBC Bank USA	USD	10,348	CLP	8,537,420		11/12/2021		135,626
HSBC Bank USA	USD	12,538	CAD	15,505		11/17/2021		(10,246	)
HSBC Bank USA	PLN	25,421	USD	6,591		12/07/2021		224,188
HSBC Bank USA	USD	1,547	PLN	5,966		12/07/2021		(52,617	)
HSBC Bank USA	USD	1,229	CNH	7,948		12/09/2021		7,119
HSBC Bank USA	INR	718,072	USD	9,423		01/07/2022		(79,033	)
HSBC Bank USA	USD	20,618	INR	1,551,812		01/07/2022		(83,261	)
HSBC Bank USA	KRW	11,925,312	USD	10,111		01/20/2022		(25,107	)
HSBC Bank USA	SEK	20,123	USD	2,306		01/20/2022		(40,318	)
HSBC Bank USA	USD	3,063	KRW	3,613,044		01/20/2022		7,607
HSBC Bank USA	USD	4,663	NOK	39,878		01/20/2022		53,991
HSBC Bank USA	USD	11,242	TWD	315,335		01/20/2022		139,979
HSBC Bank USA	IDR	415,354	USD	29		01/27/2022		(66	)
JPMorgan Chase Bank, NA	USD	4,517	EUR	3,825		11/08/2021		(95,113	)
JPMorgan Chase Bank, NA	HKD	127,340	USD	16,346		11/10/2021		(20,719	)

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    43

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA	JPY	175,259	USD	1,580		11/17/2021	$	42,371
JPMorgan Chase Bank, NA	U	SD1,029	JPY	114,639		11/17/2021		(22,850	)
JPMorgan Chase Bank, NA	USD	2,097	NOK	17,952		01/20/2022		26,075
Morgan Stanley Capital Services, Inc.	BRL	99,872	USD	17,889		11/03/2021		192,712
Morgan Stanley Capital Services, Inc.	USD	17,698	BRL	99,872		11/03/2021		(2,509	)
Morgan Stanley Capital Services, Inc.	EUR	2,614	USD	3,030		11/08/2021		8,761
Morgan Stanley Capital Services, Inc.	USD	7,915	EUR	6,717		11/08/2021		(149,660	)
Morgan Stanley Capital Services, Inc.	AUD	8,302	USD	5,990		11/09/2021		(255,050	)
Morgan Stanley Capital Services, Inc.	USD	1,248	AUD	1,719		11/09/2021		45,335
Morgan Stanley Capital Services, Inc.	USD	3,697	GBP	2,695		11/10/2021		(8,964	)
Morgan Stanley Capital Services, Inc.	JPY	818,405	USD	7,430		11/17/2021		248,743
Morgan Stanley Capital Services, Inc.	CAD	11,275	USD	8,810		11/19/2021		(300,150	)
Morgan Stanley Capital Services, Inc.	USD	4,545	CAD	5,747		11/19/2021		98,435
Morgan Stanley Capital Services, Inc.	USD	17,784	BRL	99,872		12/02/2021		(190,395	)
Morgan Stanley Capital Services, Inc.	CZK	29,563	USD	1,343		12/07/2021		13,596
Morgan Stanley Capital Services, Inc.	PLN	5,966	USD	1,526		12/07/2021		31,413
Morgan Stanley Capital Services, Inc.	CHF	2,272	USD	2,475		01/13/2022		(11,759	)
Morgan Stanley Capital Services, Inc.	USD	2,655	CHF	2,437		01/13/2022		12,613
Morgan Stanley Capital Services, Inc.	TWD	756,282	USD	27,020		01/20/2022		(277,923	)
Natwest Markets PLC	JPY	342,583	USD	3,070		11/17/2021		63,818
Natwest Markets PLC	NOK	39,878	USD	4,775		01/20/2022		58,107
Societe Generale	USD	1,411	AUD	1,937		11/09/2021		45,840
Standard Chartered Bank	GBP	1,167	USD	1,587		11/10/2021		(9,698	)
Standard Chartered Bank	USD	1,180	SGD	1,602		11/10/2021		8,441
Standard Chartered Bank	ZAR	132,120	USD	9,159		11/24/2021		532,629
State Street Bank & Trust Co.	EUR	19,712	USD	23,373		11/08/2021		582,785
State Street Bank & Trust Co.	USD	1,426	EUR	1,214		11/08/2021		(21,876	)
State Street Bank & Trust Co.	GBP	692	USD	957		11/10/2021		9,837
State Street Bank & Trust Co.	USD	177	HKD	1,380		11/10/2021		206
State Street Bank & Trust Co.	USD	153	JPY	17,039		11/17/2021		(3,497	)
State Street Bank & Trust Co.	USD	341	CAD	437		11/19/2021		11,677
State Street Bank & Trust Co.	CZK	31,511	USD	1,468		12/07/2021		51,568
State Street Bank & Trust Co.	USD	2,977	CZK	63,876		12/07/2021		(104,535	)
State Street Bank & Trust Co.	CNH	33,863	USD	5,219		12/09/2021		(48,669	)

44    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
State Street Bank & Trust Co.	THB	768,737	USD	22,688		12/09/2021	$	(471,731	)
State Street Bank & Trust Co.	USD	11,310	THB	375,781		12/09/2021		10,817
State Street Bank & Trust Co.	NZD	174	USD	121		01/20/2022		(3,818	)
UBS AG	USD	3,089	AUD	4,223		11/09/2021		88,048
UBS AG	GBP	3,405	USD	4,637		11/10/2021		(22,383	)
UBS AG	JPY	273,509	USD	2,406		11/17/2021		5,896
UBS AG	USD	4,626	JPY	505,392		11/17/2021		(191,039	)
UBS AG	USD	7,778	CAD	9,782		11/19/2021		125,993
UBS AG	USD	3,176	SEK	27,711		01/20/2022		54,919
							$	261,423

INFLATION (CPI) SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Market Value

Upfront Premiums Paid/ (Received)

Unrealized Appreciation/ (Depreciation)

Citibank, NA

USD    57,870

03/18/2031

2.378%

CPI#

Maturity

$

351,769

$

– 0

–

$

351,769

Goldman Sachs International

USD  133,680

04/26/2027

1.705%

CPI#

Maturity

7,979,878

– 0

–

7,979,878

Goldman Sachs International

USD    69,760

04/26/2027

2.175%

CPI#

Maturity

2,494,257

– 0

–

2,494,257

Goldman Sachs International

USD  110,190

04/25/2030

1.900%

CPI#

Maturity

3,624,732

– 0

–

3,624,732

Goldman Sachs International

USD    58,060

03/16/2031

2.289%

CPI#

Maturity

609,913

– 0

–

609,913

$

15,060,549

$

– 0

–

$

15,060,549

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

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received	Payment Frequency	Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
Receive Total Return on Reference Obligation
JPMorgan Chase Bank, NA
JPMorgan JMABRF34 Index(1)	0.60%	Annual		USD	36,679		12/15/2021	$	(991,234	)
Pay Total Return on Reference Obligation
UBS AG
FTSE EPRA/NAREIT Developed Real Estate Index	3 Month LIBOR Plus 0.23%	Quarterly		USD	41,604		04/15/2022		(568,336	)
FTSE EPRA/NAREIT Developed Real Estate Index	3 Month LIBOR Plus 0.19%	Quarterly		USD	2,563		09/15/2022		(39,384	)
FTSE EPRA/NAREIT Developed Real Estate Index	3 Month LIBOR Plus 0.26%	Quarterly		USD	55,311		09/15/2022		(846,391	)
								$	(2,445,345	)

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    45

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

VARIANCE SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Volatility Strike Rate			Payment Frequency		Notional Amount (000)			Market Value			Upfront Premiums (Paid)/ Received			Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citibank, NA
USD/JPY 04/19/2022*		6.85	%		Maturity		USD	1,445	$	(187,124	)	$	– 0	–	$	(187,124	)

* Termination date

(a) Represents entire or partial securities out on loan. See Note E for securities lending information.

(b) Non-income producing security.

(c) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $20,569,902 or 1.5% of net assets.

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

(e) Fair valued by the Adviser.

(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. Additionally, shareholder reports for AB funds can be obtained by calling AB at (800) 227-4618.

(g) Affiliated investments.

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

Currency Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

CLP – Chilean Peso

CNH – Chinese Yuan Renminbi (Offshore)

COP – Colombian Peso

CZK – Czech Koruna

DKK – Danish Krone

EUR – Euro

GBP – Great British Pound

HKD – Hong Kong Dollar

HUF – Hungarian Forint

IDR – Indonesian Rupiah

ILS – Israeli Shekel

INR – Indian Rupee

JPY – Japanese Yen

KRW – South Korean Won

MXN – Mexican Peso

MYR – Malaysian Ringgit

NOK – Norwegian Krone

NZD – New Zealand Dollar

PEN – Peruvian Sol

PHP – Philippine Peso

PLN – Polish Zloty

RUB – Russian Ruble

SEK – Swedish Krona

SGD – Singapore Dollar

THB – Thailand Baht

TWD – New Taiwan Dollar

USD – United States Dollar

ZAR – South African Rand

Glossary:

ADR – American Depositary Receipt

CBT – Chicago Board of Trade

CPI – Consumer Price Index

EAFE – Europe, Australia, and Far East

EPRA – European Public Real Estate Association

ETF – Exchange Traded Fund

ETN – Exchange Traded Note

FTSE – Financial Times Stock Exchange

KC HRW – Kansas City Hard Red Winter

LIBOR – London Interbank Offered Rate

LME – London Metal Exchange

MSCI – Morgan Stanley Capital International

NAREIT – National Association of Real Estate Investment Trusts

PJSC – Public Joint Stock Company

RBOB – Reformulated Gasoline Blend-Stock for Oxygen Blending (Unleaded Gas)

REIT – Real Estate Investment Trust

ULSD – Ultra-Low Sulfur Diesel

WTI – West Texas Intermediate

46    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

(1) The following table represents the (long/(short)) basket holdings underlying the total return swap with JPMorgan JMABRF34 Index as of October 31, 2021.

Security Description	Current Notional			Percent of Basket’s Value
LME Zinc Futures 01/2022		USD    (8,380,133	)		(22.8	)%
LME Zinc Futures 05/2022		8,252,020			22.5	%
Cotton No.2 Futures 12/2021		(8,093,376	)		(22.1	)%
WTI Crude Futures 01/2022		(8,064,270	)		(22.0	)%
Cotton No.2 Futures 05/2022		8,036,726			21.9	%
LME Zinc Futures 01/2022		(7,981,424	)		(21.8	)%
LME Zinc Futures 05/2022		7,954,816			21.7	%
Brent Crude Futures 01/2022		(7,852,962	)		(21.4	)%
Gasoline RBOB Futures 01/2022		(7,842,139	)		(21.4	)%
WTI Crude Futures 05/2022		7,771,494			21.2	%
Gasoline RBOB Futures 05/2022		7,745,116			21.1	%
Brent Crude Futures 05/2022		7,730,177			21.1	%
Corn Futures 12/2021		(7,730,030	)		(21.1	)%
Corn Futures 05/2022		7,711,311			21.0	%
Copper Futures 05/2022		7,684,718			21.0	%
Copper Futures 12/2021		(7,681,820	)		(20.9	)%
NY Harbor ULSD Futures 01/2022		(7,678,915	)		(20.9	)%
Soybean Oil Futures 05/2022		7,657,599			20.9	%
Soybean Oil Futures 01/2022		(7,652,388	)		(20.9	)%
KC HRW Wheat Futures 12/2021		(7,620,735	)		(20.8	)%
NY Harbor ULSD Futures 05/2022		7,607,698			20.7	%
Live Cattle Futures 12/2021		(7,605,890	)		(20.7	)%
KC HRW Wheat Futures 05/2022		7,561,606			20.6	%
Live Cattle Futures 04/2021		7,560,369			20.6	%
Wheat Futures (CBT) 05/2022		7,544,702			20.6	%
Wheat Futures (CBT) 12/2021		(7,536,822	)		(20.5	)%
Soybean Meal Futures 01/2022		(7,394,930	)		(20.2	)%
Soybean Meal Futures 05/2022		7,373,123			20.1	%
Coffee ‘C’ Futures 12/2021		(7,362,530	)		(20.1	)%
Coffee ‘C’ Futures 05/2022		7,344,320			20.0	%
Soybean Futures 05/2022		7,334,415			20.0	%
Soybean Futures 01/2022		(7,316,520	)		(19.9	)%
Sugar #11 (World) Futures 03/2022		(7,076,047	)		(19.3	)%
Natural Gas Futures 03/2022		7,061,452			19.3	%
LME Primary Aluminum Futures 05/2022		7,053,939			19.2	%
Sugar #11 (World) Futures 05/2022		7,053,589			19.2	%
LME Primary Aluminum Futures 01/2022		(7,020,988	)		(19.1	)%
Natural Gas Futures 01/2022		(6,936,113	)		(18.9	)%
Lean Hogs Futures 04/2022		6,754,865			18.4	%
Lean Hogs Futures 12/2021		(6,579,152	)		(17.9	)%

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    47

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $879,795,963)	$	1,047,476,875	(a)
Affiliated issuers (cost $254,367,075—including investment of cash collateral for securities loaned of $20,370,388)		254,367,075
Cash collateral due from broker		54,197,552
Foreign currencies, at value (cost $4,578,121)		4,543,560
Unrealized appreciation on inflation swaps		15,060,549
Unrealized appreciation on forward currency exchange contracts		6,661,666
Receivable for investment securities sold and foreign currency transactions		5,731,093
Receivable for capital stock sold		1,397,774
Unaffiliated dividends and interest receivable		1,340,959
Affiliated dividends receivable		1,616
Total assets		1,390,778,719
Liabilities
Due to custodian		1,169,924
Payable for collateral received on securities loaned		20,370,388
Cash collateral due to broker		17,150,000
Unrealized depreciation on forward currency exchange contracts		6,400,243
Payable for investment securities purchased and foreign currency transactions		6,049,814
Payable for variation margin on futures		2,551,431
Unrealized depreciation on total return swaps		2,445,345
Advisory fee payable		821,490
Payable for capital stock redeemed		647,137
Unrealized depreciation on variance swaps		187,124
Distribution fee payable		143,514
Administrative fee payable		32,636
Transfer Agent fee payable		21,581
Foreign capital gains tax payable		4,032
Directors’ fees payable		2,806
Accrued expenses		441,152
Total liabilities		58,438,617
Net Assets	$	1,332,340,102
Composition of Net Assets
Capital stock, at par	$	125,021
Additional paid-in capital		1,235,190,177
Distributable earnings		97,024,904
Net Assets	$	1,332,340,102

(a) Includes securities on loan with a value of $29,958,266 (see Note E).

See notes to consolidated financial statements.

48    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	5,305,858		490,660	$	10.81	*
C	$	199,444		18,370	$	10.86
Advisor	$	18,096,491		1,677,451	$	10.79
R	$	66,525		6,144	$	10.83
K	$	1,157,324		108,313	$	10.68
I	$	27,012,700		2,524,619	$	10.70
1	$	678,946,029		63,999,000	$	10.61
2	$	10,875		1,000	$	10.88
Z	$	601,544,856		56,195,231	$	10.70

* The maximum offering price per share for Class A shares was $11.29 which reflects a sales charge of 4.25%.

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    49

CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $1,408,147)	$	27,454,777
Affiliated issuers		34,351
Interest (net of foreign taxes withheld of $117)(a)		(159,765	)
Securities lending income		249,929		$	27,579,292
Expenses
Advisory fee (see Note B)		8,828,846
Distribution fee—Class A		9,970
Distribution fee—Class C		3,683
Distribution fee—Class R		324
Distribution fee—Class K		2,932
Distribution fee—Class 1		1,489,545
Transfer agency—Class A		12,503
Transfer agency—Class C		1,366
Transfer agency—Advisor Class		54,198
Transfer agency—Class R		159
Transfer agency—Class K		2,357
Transfer agency—Class I		6,380
Transfer agency—Class 1		122,583
Transfer agency—Class 2		3
Transfer agency—Class Z		112,417
Custody and accounting		333,424
Audit and tax		153,666
Registration fees		150,690
Administrative		93,486
Legal		46,024
Directors’ fees		33,340
Printing		31,873
Miscellaneous		50,252
Total expenses		11,540,021
Less: expenses waived and reimbursed by the Adviser (see Notes B & E)		(163,285	)
Net expenses					11,376,736
Net investment income					16,202,556

See notes to consolidated financial statements.

50    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(b)	$	56,124,035
Forward currency exchange contracts		2,737,603
Futures		130,052,916
Swaps		(11,640,193	)
Foreign currency transactions		4,719,024
Net change in unrealized appreciation/depreciation of:
Investments		216,361,647
Forward currency exchange contracts		(1,797,406	)
Futures		187,084
Swaps		6,355,811
Foreign currency denominated assets and liabilities		(46,515	)
Net gain on investment and foreign currency transactions		403,054,006
Net Increase in Net Assets from Operations	$	419,256,562

(a) The negative interest income reflects coupon income adjusted for fluctuations in the inflation index related to inflation-indexed bonds and the amortization of premiums.

(b) Net of foreign realized capital gains taxes of $7,548.

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    51

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	16,202,556		$	13,891,611
Net realized gain (loss) on investment and foreign currency transactions		181,993,385			(66,470,870	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		221,060,621			(63,456,198	)
Contributions from Affiliates (see Note B)		– 0	–		9,171
Net increase (decrease) in net assets from operations		419,256,562			(116,026,286	)
Distributions to Shareholders
Class A		(221,879	)		(167,388	)
Class C		(9,571	)		(4,157	)
Advisor Class		(412,387	)		(343,095	)
Class R		(652	)		(3,960	)
Class K		(32,508	)		(34,127	)
Class I		(808,887	)		(500,083	)
Class 1		(16,708,336	)		(11,399,122	)
Class 2		(293	)		(184	)
Class Z		(15,915,046	)		(10,352,467	)
Capital Stock Transactions
Net increase (decrease)		18,064,568			(83,740,442	)
Total increase (decrease)		403,211,571			(222,571,311	)
Net Assets
Beginning of period		929,128,531			1,151,699,842
End of period	$	1,332,340,102		$	929,128,531

See notes to consolidated financial statements.

52    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB All Market Real Return Portfolio (the “Fund”), a non-diversified portfolio. As part of the Fund’s investment strategy, the Fund seeks to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary. As of October 31, 2021, consolidated net assets of the Fund were $1,332,340,102, of which $247,566,047, or 19%, represented the Fund’s ownership of all issued shares and voting rights of the Subsidiary. This report presents the consolidated financial statements of the Fund and the Subsidiary. All intercompany transactions and balances have been eliminated in consolidation. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, Class Z, and Class T shares. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. As of October 31, 2021, AllianceBernstein L.P. (the “Adviser”), was the sole shareholder of Class 2 shares. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, Class 1, and Class Z shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, and Class 2 shares are sold

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The consolidated 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 consolidated 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 Company’s Board of Directors (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 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

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had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

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

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on

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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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

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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, 2021:

Investments in Securities:	Level 1		Level 2			Level 3			Total
Assets:
Common Stocks:
Real Estate	$	294,794,006	$	154,494,286		$	– 0	–	$	449,288,292
Energy		47,095,641		83,015,423			– 0	–		130,111,064
Materials		38,080,386		67,598,306			– 0	–		105,678,692
Capital Goods		30,581,843		23,150,679			– 0	–		53,732,522
Utilities		28,961,782		19,314,879			– 0	–		48,276,661
Software & Services		27,120,672		859,110			– 0	–		27,979,782
Pharmaceuticals & Biotechnology		13,714,886		5,981,995			– 0	–		19,696,881
Food Beverage & Tobacco		12,463,455		5,931,497			– 0	–		18,394,952
Semiconductors & Semiconductor Equipment		11,049,821		5,703,393			31,194			16,784,408
Banks		7,600,532		7,304,497			– 0	–		14,905,029
Technology Hardware & Equipment		11,883,027		741,661			– 0	–		12,624,688
Media & Entertainment		12,334,246		158,574			– 0	–		12,492,820
Retailing		9,586,841		2,750,373			– 0	–		12,337,214
Diversified Financials		8,887,751		2,492,909			– 0	–		11,380,660
Health Care Equipment & Services		11,231,239		– 0	–		– 0	–		11,231,239
Transportation		364,304		8,926,020			– 0	–		9,290,324
Consumer Services		6,825,891		2,214,773			– 0	–		9,040,664
Consumer Durables & Apparel		6,468,081		2,173,956			0	(a)		8,642,037
Commercial & Professional Services		6,237,354		258,710			– 0	–		6,496,064
Insurance		4,834,678		1,275,543			– 0	–		6,110,221
Automobiles & Components		3,021,773		3,038,348			– 0	–		6,060,121
Telecommunication Services		25,498		5,574,550			– 0	–		5,600,048
Food & Staples Retailing		2,699,087		290,310			– 0	–		2,989,397
Industrials		1,386,621		643,892			– 0	–		2,030,513

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Information Technology	$	1,858,779		$	– 0	–	$	– 0	–	$	1,858,779
Household & Personal Products		1,174,952			– 0	–		– 0	–		1,174,952
Investment Companies		43,191,372			77,479			– 0	–		43,268,851
Short-Term Investments		233,996,687			– 0	–		– 0	–		233,996,687
Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund		20,370,388			– 0	–		– 0	–		20,370,388
Total Investments in Securities		897,841,593			403,971,163	(b)		31,194			1,301,843,950
Other Financial Instruments(c):
Assets:
Futures		14,689,299			– 0	–		– 0	–		14,689,299	(d)
Forward Currency Exchange Contracts		– 0	–		6,661,666			– 0	–		6,661,666
Inflation (CPI) Swaps		– 0	–		15,060,549			– 0	–		15,060,549
Liabilities:
Futures		(4,423,848	)		– 0	–		– 0	–		(4,423,848	)(d)
Forward Currency Exchange Contracts		– 0	–		(6,400,243	)		– 0	–		(6,400,243	)
Total Return Swaps		– 0	–		(2,445,345	)		– 0	–		(2,445,345	)
Variance Swaps		– 0	–		(187,124	)		– 0	–		(187,124	)
Total	$	908,107,044		$	416,660,666		$	31,194		$	1,324,798,904

(a) The Fund held securities with zero market value at period end.

(b) A significant portion of the Fund’s foreign equity investments are categorized as Level 2 investments since they are valued using fair value prices based on third party vendor modeling tools to the extent available.

(c) 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.

(d) 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 consolidated portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

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Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

If, during a taxable year, the Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for Federal income tax purposes. Note that the loss from the Subsidiary’s contemplated activities also cannot be carried forward to reduce future Subsidiary’s income in subsequent years. However, if the Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Fund as income for Federal income tax purposes.

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 consolidated financial statements.

5. Investment Income and Investment Transactions

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

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investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the Fund’s average daily net assets. The Adviser agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB Mutual Funds in which the Fund may invest) on an annual basis (the “Expense Caps”) to 1.30%, 2.05%, 1.05%, 1.55%, 1.30%, 1.05%, 1.30%, 1.05% and 1.05% of daily average net assets for Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2 and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2022. For the year ended October 31, 2021, such reimbursement amounted to $23,383.

The Subsidiary has entered into a separate agreement with the Adviser for the management of the Subsidiary’s portfolio. The Adviser receives no compensation from the Subsidiary for its services under the agreement.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the reimbursement for such services amounted to $93,486.

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The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $237,310 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $28 from the sale of Class A shares and received $5 and $4 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $139,397.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	229,370	$	1,028,539	$	1,023,912	$	233,997	$	34
Government Money Market Portfolio*		6,911		328,739		315,280		20,370		2
Total							$	254,367	$	36

* Investments of cash collateral for securities lending transactions (see Note E).

During the year ended October 31, 2020, the Adviser reimbursed the Fund $9,171 for trading losses incurred due to a trade entry error.

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NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to AllianceBernstein Investments, Inc. (the “Distributor”) at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .25% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Plan in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $159,628, $16,755, $19,733 and $1,946,964 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	696,290,009		$	574,337,449
U.S. government securities		– 0	–		– 0	–

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,512,463,120
Gross unrealized appreciation	$	229,936,519
Gross unrealized depreciation		(381,219,652	)
Net unrealized depreciation	$	(151,283,133	)

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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, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the consolidated 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.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the consolidated 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.

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During the year ended October 31, 2021, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Swaps

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

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be

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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 consolidated 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 consolidated statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the consolidated 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 consolidated 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 consolidated 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 consolidated 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

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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.

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 year ended October 31, 2021, the Fund held inflation (CPI) swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2021, the Fund held total return swaps for hedging and non-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

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During the year ended October 31, 2021, the Fund held variance swaps for hedging and 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 year ended October 31, 2021, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
Equity contracts	Receivable/Payable for variation margin on futures	$	417,104	*	Receivable/Payable for variation margin on futures	$	59,169	*
Commodity contracts	Receivable/Payable for variation margin on futures		14,272,195	*	Receivable/Payable for variation margin on futures		4,364,679	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		6,661,666		Unrealized depreciation on forward currency exchange contracts		6,400,243

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Asset Derivatives			Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value		Consolidated Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Unrealized appreciation on inflation swaps	$	15,060,549
Commodity contracts				Unrealized depreciation on total return swaps	$	962,153
Equity contracts				Unrealized depreciation on total return swaps		1,483,192
Foreign currency contracts				Unrealized depreciation on variance swaps		187,124
Total		$	36,411,514		$	13,456,560

* Only variation margin receivable/payable at period end is reported within the consolidated statement of assets and liabilities.

This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated 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	$	(24,187	)	$	11,047
Equity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		11,452,075			2,380,110
Commodity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		118,625,028			(2,204,073	)

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts	$	2,737,603		$	(1,797,406	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		5,380,360			11,158,402
Commodity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		10,057,954			1,651,937
Foreign exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(138,080	)		(83,956	)
Equity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(26,940,427	)		(6,370,572	)
Total		$	121,150,326		$	4,745,489

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Futures:
Average notional amount of buy contracts	$	392,099,553
Average notional amount of sale contracts	$	42,073,958
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	466,539,968
Average principal amount of sale contracts	$	520,219,414
Inflation Swaps:
Average notional amount	$	460,372,308
Total Return Swaps:
Average notional amount	$	159,680,472
Variance Swaps:
Average notional amount	$	2,949,047

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the consolidated 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, 2021. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

All Market Real Return Portfolio

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Australia and New Zealand Banking Group Ltd.	$	18,961	$	(15,311	)	$	– 0	–	$	– 0	–	$	3,650
Bank of America, NA		175,385		(175,385	)		– 0	–		– 0	–		– 0	–
Barclays Bank PLC		930,998		(586,186	)		– 0	–		– 0	–		344,812
BNP Paribas SA		709,577		(540,784	)		– 0	–		– 0	–		168,793
Citibank, NA		421,326		(355,616	)		– 0	–		– 0	–		65,710
Credit Suisse International		360,932		(27,786	)		– 0	–		– 0	–		333,146
Deutsche Bank AG		954,076		(954,076	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		14,926,704		(1,159,442	)		(13,767,262	)		– 0	–		– 0	–
HSBC Bank USA		853,621		(385,164	)		(300,000	)		– 0	–		168,457
JPMorgan Chase Bank, NA		68,446		(68,446	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services, Inc.		651,608		(651,608	)		– 0	–		– 0	–		– 0	–
Natwest Markets PLC		121,925		– 0	–		– 0	–		– 0	–		121,925
Societe Generale		45,840		– 0	–		– 0	–		– 0	–		45,840
Standard Chartered Bank		541,070		(9,698	)		– 0	–		– 0	–		531,372
State Street Bank & Trust Co.		666,890		(654,126	)		– 0	–		– 0	–		12,764
UBS AG		274,856		(274,856	)		– 0	–		– 0	–		– 0	–
Total	$	21,722,215	$	(5,858,484	)	$	(14,067,262	)	$	– 0	–	$	1,796,469	^

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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
Australia and New Zealand Banking Group Ltd.	$	15,311	$	(15,311	)	$	– 0	–	$	– 0	–	$	– 0	–
Bank of America, NA		296,371		(175,385	)		(120,986	)		– 0	–		– 0	–
Barclays Bank PLC		586,186		(586,186	)		– 0	–		– 0	–		– 0	–
BNP Paribas SA		540,784		(540,784	)		– 0	–		– 0	–		– 0	–
Citibank, NA		355,616		(355,616	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		27,786		(27,786	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		1,008,369		(954,076	)		– 0	–		– 0	–		54,293
Goldman Sachs Bank USA/Goldman Sachs International		1,159,442		(1,159,442	)		– 0	–		– 0	–		– 0	–
HSBC Bank USA		385,164		(385,164	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA		138,682		(68,446	)		– 0	–		– 0	–		70,236
Morgan Stanley Capital Services, Inc.		1,196,410		(651,608	)		(260,000	)		– 0	–		284,802
Standard Chartered Bank		9,698		(9,698	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		654,126		(654,126	)		– 0	–		– 0	–		– 0	–
UBS AG		1,667,533		(274,856	)		(1,392,677	)		– 0	–		– 0	–
Total	$	8,041,478	$	(5,858,484	)	$	(1,773,663	)	$	– 0	–	$	409,331	^

* 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.

AllianceBernstein Cayman Inflation Strategy, Ltd.

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
JPMorgan Chase Bank, NA	$	991,234	$	– 0	–	$	(730,000	)	$	– 0	–	$	261,234
Total	$	991,234	$	– 0	–	$	(730,000	)	$	– 0	–	$	261,234	^

* 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 E

Securities Lending

The Fund may enter into securities lending transactions. Under the Fund’s securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the consolidated statement of assets and liabilities. The collateral will be adjusted

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the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the consolidated statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund’s share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund’s transactions surrounding securities lending for the year ended October 31, 2021 is as follows:

Market Value of Securities on Loan*		Cash Collateral*		Market Value of Non-Cash Collateral*		Income from Borrowers		Government Money Market Portfolio
								Income Earned		Advisory Fee Waived
$	29,958,266	$	20,370,388	$	11,364,448	$	248,064	$	1,865	$	505

* As of October 31, 2021.

NOTE F

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		317,223			106,944		$	3,288,034		$	878,328
Shares issued in reinvestment of dividends		25,555			18,577			214,154			159,388
Shares converted from Class C		47,783			5,054			457,252			40,141
Shares redeemed		(804,855	)		(454,169	)		(7,247,828	)		(3,812,340	)
Net decrease		(414,294	)		(323,594	)	$	(3,288,388	)	$	(2,734,483	)

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	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class C
Shares sold		64			5,106		$	591		$	41,696
Shares issued in reinvestment of dividends		1,081			428			9,141			3,697
Shares converted to Class A		(47,515	)		(5,044	)		(457,252	)		(40,141	)
Shares redeemed		(1,542	)		(21,492	)		(14,427	)		(175,527	)
Net decrease		(47,912	)		(21,002	)	$	(461,947	)	$	(170,275	)
Advisor Class
Shares sold		543,513			266,300		$	5,271,583		$	2,062,690
Shares issued in reinvestment of dividends		35,548			30,646			296,466			261,410
Shares redeemed		(442,417	)		(911,996	)		(4,262,588	)		(6,219,619	)
Net increase (decrease)		136,644			(615,050	)	$	1,305,461		$	(3,895,519	)
Class R
Shares sold		873			5,559		$	8,390		$	43,032
Shares issued in reinvestment of dividends		77			467			652			3,960
Shares redeemed		(1,930	)		(30,671	)		(18,669	)		(234,057	)
Net decrease		(980	)		(24,645	)	$	(9,627	)	$	(187,065	)
Class K
Shares sold		70,470			111,348		$	687,598		$	803,021
Shares issued in reinvestment of dividends		3,926			4,034			32,508			34,127
Shares redeemed		(158,429	)		(165,165	)		(1,448,034	)		(1,162,309	)
Net decrease		(84,033	)		(49,783	)	$	(727,928	)	$	(325,161	)
Class I
Shares sold		286,467			275,947		$	2,889,024		$	1,888,924
Shares issued in reinvestment of dividends		97,928			59,111			808,887			500,083
Shares redeemed		(738,310	)		(200,636	)		(6,968,310	)		(1,540,739	)
Net increase (decrease)		(353,915	)		134,422		$	(3,270,399	)	$	848,268

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	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class 1
Shares sold		13,434,001			7,351,843		$	126,050,237		$	57,260,027
Shares issued in reinvestment of dividends		1,712,373			1,079,630			14,041,460			9,079,689
Shares redeemed		(13,764,673	)		(17,336,540	)		(126,361,702	)		(130,350,693	)
Net increase (decrease)		1,381,701			(8,905,067	)	$	13,729,995		$	(64,010,977	)
Class Z
Shares sold		249,298			669,090		$	2,315,447		$	4,754,066
Shares issued in reinvestment of dividends		1,926,761			1,223,696			15,915,046			10,352,467
Shares redeemed		(844,383	)		(3,826,335	)		(7,443,092	)		(28,371,763	)
Net increase (decrease)		1,331,676			(1,933,549	)	$	10,787,401		$	(13,265,230	)

There were no transactions in capital shares for Class 2 for the year ended October 31, 2021 and the year ended October 31, 2020.

At October 31, 2021, certain AB mutual funds owned approximately 40% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

NOTE G

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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.

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

Commodity Risk—Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the consolidated 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.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Foreign fixed-income securities may have more illiquid investments risk because secondary trading markets for these securities may be smaller and less well developed

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and the securities may trade less frequently. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

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.

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

Subsidiary Risk—By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

Real Estate Risk—The Fund’s investments in the real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs, may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.

Non-Diversification Risk—The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

LIBOR Transition and Associated Risk — A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE H

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the consolidated statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE I

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	34,109,559	$	22,804,583
Total distributions paid	$	34,109,559	$	22,804,583

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	117,458,659
Accumulated capital and other losses		(61,812,103	)(a)
Unrealized appreciation/(depreciation)		(151,358,647	)(b)
Total accumulated earnings/(deficit)	$	(95,712,091	)(c)

(a) As of October 31, 2021, the Fund had a net capital loss carryforward of $61,812,103. During the fiscal year, the Fund utilized $68,312,672 of capital loss carry forwards to offset current year net realized gains.

(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 passive foreign investment companies (PFICs), the tax treatment of earnings from the Subsidiary, the tax treatment of swaps, and the tax deferral of losses on wash sales.

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

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NOTES TO CONSOLIDATED 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 October 31, 2021, the Fund had a net short-term capital loss carryforward of $61,812,103, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to book/tax differences associated with the treatment of earnings from the Subsidiary resulted in a net decrease in distributable earnings and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE J

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

NOTE K

Subsequent Events

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

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CONSOLIDATED FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.65			$  8.66			$  8.53			$  8.90			$  8.24
Income From Investment Operations
Net investment income(a)(b)		.27			.09			.12			.14			.09
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.14			(.96	)		.13			(.23	)		.76
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.41			(.87	)		.25			(.09	)		.85
Less: Dividends
Dividends from net investment income		(.25	)		(.14	)		(.12	)		(.28	)		(.19	)
Net asset value, end of period		$  10.81			$  7.65			$  8.66			$  8.53			$  8.90
Total Return
Total investment return based on net asset value(d)*		45.48	%(g)		(10.11	)%		2.97	%		(1.11	)%		10.45	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,306			$6,926			$10,634			$11,478			$11,819
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.29	%		1.29	%		1.30	%		1.26	%		1.27	%
Expenses, before waivers/reimbursements(e)(f)‡		1.39	%		1.40	%		1.32	%		1.27	%		1.28	%
Net investment income(b)		2.86	%		1.10	%		1.42	%		1.52	%		1.05	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.66			$  8.63			$  8.49			$  8.83			$  8.17
Income From Investment Operations
Net investment income (loss)(a)(b)		(.49	)		.03			.06			.07			.02
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.86			(.95	)		.11			(.23	)		.76
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.37			(.92	)		.17			(.16	)		.78
Less: Dividends
Dividends from net investment income		(.17	)		(.05	)		(.03	)		(.18	)		(.12	)
Net asset value, end of period		$  10.86			$  7.66			$  8.63			$  8.49			$  8.83
Total Return
Total investment return based on net asset value(d)*		44.41	%		(10.74	)%(g)		2.05	%(g)		(1.82	)%		9.73	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$199			$508			$754			$1,225			$1,801
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		2.04	%		2.04	%		2.05	%		2.01	%		2.02	%
Expenses, before waivers/reimbursements(e)(f)‡		2.19	%		2.15	%		2.07	%		2.02	%		2.03	%
Net investment income (loss)(b)		(5.20	)%		.34	%		.66	%		.78	%		.27	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.63			$  8.63			$  8.51			$  8.89			$  8.22
Income From Investment Operations
Net investment income(a)(b)		.16			.11			.14			.16			.11
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.27			(.95	)		.12			(.24	)		.77
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.43			(.84	)		.26			(.08	)		.88
Less: Dividends
Dividends from net investment income		(.27	)		(.16	)		(.14	)		(.30	)		(.21	)
Net asset value, end of period		$  10.79			$  7.63			$  8.63			$  8.51			$  8.89
Total Return
Total investment return based on net asset value(d)*		45.82	%(g)		(9.79	)%		3.15	%		(.96	)%		10.87	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$18,096			$11,761			$18,611			$26,030			$27,670
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.04	%		1.04	%		1.05	%		1.01	%		1.02	%
Expenses, before waivers/reimbursements(e)(f)‡		1.17	%		1.14	%		1.07	%		1.02	%		1.02	%
Net investment income(b)		1.60	%		1.33	%		1.66	%		1.77	%		1.31	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.53			$  8.53			$  8.40			$  8.79			$  8.14
Income From Investment Operations
Net investment income (loss)(a)(b)		(.02	)		.07			.10			.11			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.41			(.95	)		.11			(.23	)		.76
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.39			(.88	)		.21			(.12	)		.83
Less: Dividends
Dividends from net investment income		(.09	)		(.12	)		(.08	)		(.27	)		(.18	)
Net asset value, end of period		$  10.83			$  7.53			$  8.53			$  8.40			$  8.79
Total Return
Total investment return based on net asset value(d)*		45.23	%(g)		(10.32	)%		2.62	%		(1.47	)%		10.29	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$67			$54			$271			$271			$239
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.54	%		1.54	%		1.55	%		1.55	%		1.54	%
Expenses, before waivers/reimbursements(e)(f)‡		1.57	%		1.60	%		1.57	%		1.58	%		1.60	%
Net investment income (loss)(b)		(.19	)%		.92	%		1.16	%		1.24	%		.81	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.55			$  8.55			$  8.42			$  8.80			$  8.15
Income From Investment Operations
Net investment income (loss)(a)(b)		(.02	)		.08			.12			.13			.09
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.39			(.94	)		.13			(.23	)		.75
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.37			(.86	)		.25			(.10	)		.84
Less: Dividends
Dividends from net investment income		(.24	)		(.14	)		(.12	)		(.28	)		(.19	)
Net asset value, end of period		$  10.68			$  7.55			$  8.55			$  8.42			$  8.80
Total Return
Total investment return based on net asset value(d)*		45.60	%(g)		(10.10	)%		3.03	%		(1.20	)%		10.48	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,157			$1,453			$2,069			$2,604			$2,265
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.26	%		1.28	%		1.27	%		1.26	%		1.28	%
Expenses, before waivers/reimbursements(e)(f)‡		1.28	%		1.29	%		1.28	%		1.27	%		1.29	%
Net investment income (loss)(b)		(.18	)%		1.08	%		1.44	%		1.52	%		1.05	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.58			$  8.58			$  8.46			$  8.83			$  8.17
Income From Investment Operations
Net investment income(a)(b)		.09			.12			.15			.17			.12
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.32			(.94	)		.13			(.22	)		.77
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.41			(.82	)		.28			(.05	)		.89
Less: Dividends
Dividends from net investment income		(.29	)		(.18	)		(.16	)		(.32	)		(.23	)
Net asset value, end of period		$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Total Return
Total investment return based on net asset value(d)*		46.03	%(g)		(9.76	)%		3.39	%		(.69	)%		10.98	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$27,013			$21,817			$23,541			$12,213			$16,753
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.84	%		.86	%		.85	%		.83	%		.85	%
Expenses, before waivers/reimbursements(e)(f)‡		.85	%		.87	%		.86	%		.84	%		.86	%
Net investment income(b)		.88	%		1.49	%		1.79	%		1.96	%		1.48	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.52			$  8.51			$  8.39			$  8.76			$  8.11
Income From Investment Operations
Net investment income(a)(b)		.13			.10			.13			.15			.10
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.23			(.93	)		.12			(.22	)		.76
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.36			(.83	)		.25			(.07	)		.86
Less: Dividends
Dividends from net investment income		(.27	)		(.16	)		(.13	)		(.30	)		(.21	)
Net asset value, end of period		$  10.61			$  7.52			$  8.51			$  8.39			$  8.76
Total Return
Total investment return based on net asset value(d)*		45.63	%		(9.94	)%		3.14	%		(.92	)%		10.69	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$678,946			$470,635			$608,485			$641,891			$649,421
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.08	%		1.10	%		1.09	%		1.08	%		1.09	%
Expenses, before waivers/reimbursements(e)(f)‡		1.10	%		1.11	%		1.10	%		1.08	%		1.10	%
Net investment income(b)		1.33	%		1.26	%		1.62	%		1.71	%		1.24	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.70			$  8.71			$  8.58			$  8.96			$  8.29
Income From Investment Operations
Net investment income(a)(b)		.14			.12			.16			.18			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.33			(.95	)		.13			(.24	)		.77
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.47			(.83	)		.29			(.06	)		.90
Less: Dividends
Dividends from net investment income		(.29	)		(.18	)		(.16	)		(.32	)		(.23	)
Net asset value, end of period		$  10.88			$  7.70			$  8.71			$  8.58			$  8.96
Total Return
Total investment return based on net asset value(d)*		46.10	%		(9.70	)%		3.46	%		(.77	)%		10.96	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11			$8			$9			$9			$9
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.83	%		.82	%		.81	%		.82	%		.82	%
Expenses, before waivers/reimbursements(e)(f)‡		.84	%		.84	%		.81	%		.82	%		.83	%
Net investment income(b)		1.45	%		1.53	%		1.90	%		1.95	%		1.50	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.58			$  8.58			$  8.46			$  8.83			$  8.17
Income From Investment Operations
Net investment income(a)(b)		.14			.12			.16			.17			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		3.27			(.94	)		.12			(.22	)		.76
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		3.41			(.82	)		.28			(.05	)		.89
Less: Dividends
Dividends from net investment income		(.29	)		(.18	)		(.16	)		(.32	)		(.23	)
Net asset value, end of period		$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Total Return
Total investment return based on net asset value(d)*		46.17	%		(9.75	)%		3.37	%		(.68	)%		10.98	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$601,545			$415,967			$487,326			$1,013,733			$692,895
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.84	%		.85	%		.84	%		.83	%		.82	%
Expenses, before waivers/reimbursements(e)(f)‡		.85	%		.86	%		.85	%		.84	%		.83	%
Net investment income(b)		1.44	%		1.51	%		1.89	%		1.86	%		1.60	%
Portfolio turnover rate		65	%		88	%		100	%		141	%		123	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.04	%		.02	%		.03	%		.04	%

See footnote summary on page 90.

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CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

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

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended October 31, 2021, October 31, 2020, October 31, 2019, October 31, 2018 and October 31, 2017, such waiver amounted to .01%, .01%, .01%, .01% and .01%, respectively.

(f) The expense ratios presented below exclude interest/bank overdraft expense:

	Year Ended October 31,
	2021	2020			2019	2018	2017
Class A
Net of waivers/reimbursements	1.29%		1.29	%	1.29%	1.26%	1.27%
Before waivers/reimbursements	1.39%		1.40	%	1.32%	1.27%	1.28%
Class C
Net of waivers/reimbursements	2.04%		2.04	%	2.04%	2.01%	2.02%
Before waivers/reimbursements	2.19%		2.15	%	2.07%	2.02%	2.03%
Advisor Class
Net of waivers/reimbursements	1.04%		1.04	%	1.04%	1.01%	1.02%
Before waivers/reimbursements	1.17%		1.14	%	1.06%	1.02%	1.02%
Class R
Net of waivers/reimbursements	1.54%		1.54	%	1.54%	1.55%	1.54%
Before waivers/reimbursements	1.57%		1.60	%	1.57%	1.58%	1.60%
Class K
Net of waivers/reimbursements	1.26%		1.28	%	1.27%	1.26%	1.28%
Before waivers/reimbursements	1.28%		1.29	%	1.28%	1.27%	1.29%
Class I
Net of waivers/reimbursements	.84%		.86	%	.84%	.83%	.85%
Before waivers/reimbursements	.85%		.87	%	.85%	.84%	.86%
Class 1
Net of waivers/reimbursements	1.08%		1.10	%	1.09%	1.08%	1.09%
Before waivers/reimbursements	1.10%		1.11	%	1.09%	1.08%	1.10%
Class 2
Net of waivers/reimbursements	.83%		.82	%	.81%	.82%	.82%
Before waivers/reimbursements	.84%		.84	%	.81%	.82%	.83%
Class Z
Net of waivers/reimbursements	.84%		.85	%	.83%	.83%	.82%
Before waivers/reimbursements	.85%		.86	%	.84%	.84%	.83%

(g) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

* 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 October 31, 2020 and October 31, 2019 by .02% and .07%, respectively.

See notes to consolidated financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB All Market Real Return Portfolio

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities of AB All Market Real Return Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the consolidated portfolio of investments, as of October 31, 2021, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2021. For individual shareholders, the Fund designates 37.01% of dividends paid as qualified dividend income. For corporate shareholders, 7.21% of dividends paid qualify for the dividends received deduction.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1)*

OFFICERS

Vinod Chathlani⁽²⁾, Vice President Daniel J. Loewy⁽²⁾, Vice President Leon Zhu⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s All Market Real Return Portfolio Team. Messrs. Chathlani, Loewy and Zhu are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Portfolio are managed under the direction of the Board of Directors. Certain information concerning the Portfolio’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Vinod Chathlani 39	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Daniel J. Loewy 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Chief Investment Officer and Head of Multi-Asset Solutions and Chief Investment Officer of Dynamic Asset Allocation.
Leon Zhu 54	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc, (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Strategy.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB All Market Real Return Portfolio (the “Fund”) at a meeting held by video conference on August 3-4, 2021 (the “Meeting”).

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

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

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

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2019 and 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised

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by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute transactions for their clients); 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5-, and 10-year periods ended May 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, and their discussion with the Adviser of the reasons for the Fund’s underperformance in the periods reviewed, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the 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,

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    107

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 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, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued, and rules adopted, by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in

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some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund’s asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    109

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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NOTES

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    111

NOTES

112    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

AB ALL MARKET REAL RETURN PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

AMRR-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB BOND INFLATION STRATEGY

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 8, 2021

This report provides management’s discussion of fund performance for the AB Bond Inflation Strategy for the annual reporting period ended October 31, 2021.

The Fund’s investment objective is to maximize real return without assuming what the Adviser considers to be undue risk.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB BOND INFLATION STRATEGY
Class 1 Shares1		3.31%		7.77%
Class 2 Shares1		3.46%		7.98%
Class A Shares		3.20%		7.63%
Class C Shares		2.89%		6.87%
Advisor Class Shares2		3.43%		7.98%
Class R Shares2		3.20%		7.44%
Class K Shares2		3.31%		7.64%
Class I Shares2		3.37%		7.88%
Class Z Shares2		3.44%		7.94%
Bloomberg 1-10 Year TIPS Index		3.55%		7.05%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended October 31, 2021.

During the 12-month period, all share classes except Class C outperformed the benchmark, before sales charges. Off-benchmark sector allocation was the main contributor to outperformance, relative to the benchmark, mostly from allocations to investment-grade corporate bonds, Consumer Price Index (“CPI”) swaps, credit risk-transfer securities, commercial mortgage-backed securities and emerging-market corporate bonds, while interest rate swaps and investment-grade credit default

2    ^|    AB BOND INFLATION STRATEGY abfunds.com

swaps detracted. Currency decisions detracted, primarily from losses due to exposures to the Canadian dollar, Australian dollar and New Zealand dollar that were greater than gains in the euro and Russian ruble.

During the six-month period, all share classes underperformed the benchmark, before sales charges. The Fund’s holdings of agency mortgage-backed securities, collateralized mortgage obligations and credit protection via credit default swaps were the primary detractors. Off-benchmark sector allocation contributed, with gains from CPI swaps, investment-grade corporate bonds and emerging-market corporate bonds. Currency decisions also contributed, due to beneficial exposures to the Russian ruble, Australian dollar and Swedish krona that exceeded a loss in the Canadian dollar.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. CPI swaps were used to hedge inflation and for investment purposes, which added to absolute returns for both periods. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes. Total return swaps were used in the corporate sector for hedging and investment purposes. Written swaptions were used for hedging and investment purposes, which had an immaterial impact on returns for both periods. During the 12-month period, written options were used in the corporate sector for hedging and investment purposes.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada, and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone, and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially commercial mortgage-backed securities. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

abfunds.com AB BOND INFLATION STRATEGY    ^|    3

INVESTMENT POLICIES

The Fund seeks real return. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing principally in inflation-indexed securities (such as TIPS or inflation-indexed securities from issuers other than the US Treasury) or by gaining inflation protection through derivatives transactions, such as inflation (CPI) swaps or total return swaps linked to TIPS. In deciding whether to purchase inflation-indexed securities or use inflation-linked derivatives transactions, the Adviser considers the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Fund may also invest in other fixed-income investments, such as US and non-US government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities.

Under normal circumstances, the Fund invests at least 80% of its net assets in fixed-income securities. While the Fund expects to invest principally in investment-grade securities, it may invest up to 15% of its total assets in fixed-income securities rated BB or B or the equivalent by at least one national rating agency (or deemed by the Adviser to be of comparable credit quality), which are not investment-grade (“junk bonds”).

Inflation-indexed securities are fixed-income securities structured to provide protection against inflation. Their principal value and/or the interest paid on them are adjusted to reflect official inflation measures. The inflation measure for TIPS is the CPI for Urban Consumers. The Fund may also invest in other inflation-indexed securities, issued by both US and non-US issuers, and in derivative instruments linked to these securities.

The Fund may invest in derivatives, such as options, futures contracts, forwards or swaps. The Fund intends to use leverage for investment purposes. To do this, the Fund expects to enter into (i) reverse repurchase agreement transactions and use the cash made available from these transactions to make additional investments in fixed-income securities in accordance with the Fund’s investment policies and (ii) total return swaps. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser considers factors such as the relative risks and returns expected of potential investments and the costs of such transactions. The Adviser considers the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

(continued on next page)

4    ^|    AB BOND INFLATION STRATEGY abfunds.com

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 loan participations and assignments; structured securities; mortgage-backed and other asset-backed securities; variable-, floating- and inverse-floating-rate instruments; and preferred stock, and may use other investment techniques. The Fund may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment-grade, the Fund will not be obligated to sell the security and may continue to hold it if, in the Adviser’s opinion, the investment is appropriate under the circumstances.

abfunds.com AB BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. 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 bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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. The current historically low interest rate environment heightens the risks associated with rising interest rates.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

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DISCLOSURES AND RISKS (continued)

for fixed-income securities with longer maturities. Although the Fund invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

Derivatives Risk: The Fund may enter into derivative transactions such as

forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

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.

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

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

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk

abfunds.com AB BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS (continued)

may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund Information—Mutual Fund Performance at a Glance.”

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Class 1 and Class 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Bond Inflation Strategy Class A shares (from 10/31/2011 to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						-0.26%
1 Year		7.77%		7.77%
5 Years		4.52%		4.52%
10 Years		3.08%		3.08%
CLASS 2 SHARES2						-0.16%
1 Year		7.98%		7.98%
5 Years		4.65%		4.65%
10 Years		3.19%		3.19%
CLASS A SHARES						-0.54%
1 Year		7.63%		3.08%
5 Years		4.37%		3.48%
10 Years		2.91%		2.46%
CLASS C SHARES						-1.29%
1 Year		6.87%		5.87%
5 Years		3.61%		3.61%
10 Years3		2.15%		2.15%
ADVISOR CLASS SHARES4						-0.32%
1 Year		7.98%		7.98%
5 Years		4.65%		4.65%
10 Years		3.18%		3.18%
CLASS R SHARES4						-0.90%
1 Year		7.44%		7.44%
5 Years		4.15%		4.15%
10 Years		2.68%		2.68%
CLASS K SHARES4						-0.60%
1 Year		7.64%		7.64%
5 Years		4.38%		4.38%
10 Years		2.93%		2.93%
CLASS I SHARES4						-0.27%
1 Year		7.88%		7.88%
5 Years		4.63%		4.63%
10 Years		3.18%		3.18%
CLASS Z SHARES4						-0.17%
1 Year		7.94%		7.94%
5 Years		4.64%		4.64%
Since Inception5		4.22%		4.22%

(footnotes continued on next page)

10    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 0.88%, 0.78%, 1.18%, 1.91%, 0.93%, 1.58%, 1.21%, 0.88% and 0.81% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expenses (exclusive of extraordinary expenses, interest expense and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) to 0.60%, 0.50%, 0.75%, 1.50%, 0.50%, 1.00%, 0.75%, 0.50% and 0.50% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

3 Assumes conversion of Class C shares into Class A shares after eight years.

4 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

5 Inception date: 12/11/2014.

abfunds.com AB BOND INFLATION STRATEGY    ^|    11

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		7.42%
5 Years		4.44%
10 Years		3.18%
CLASS 2 SHARES1
1 Year		7.53%
5 Years		4.53%
10 Years		3.28%
CLASS A SHARES
1 Year		2.69%
5 Years		3.38%
10 Years		2.57%
CLASS C SHARES
1 Year		5.51%
5 Years		3.50%
10 Years2		2.27%
ADVISOR CLASS SHARES3
1 Year		7.54%
5 Years		4.53%
10 Years		3.28%
CLASS R SHARES3
1 Year		7.00%
5 Years		4.03%
10 Years		2.80%
CLASS K SHARES3
1 Year		7.30%
5 Years		4.28%
10 Years		3.03%
CLASS I SHARES3
1 Year		7.62%
5 Years		4.55%
10 Years		3.30%
CLASS Z SHARES3
1 Year		7.58%
5 Years		4.54%
Since Inception4		4.20%

(footnotes continued on next page)

12    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 12/11/2014.

abfunds.com AB BOND INFLATION STRATEGY    ^|    13

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

The 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.

14    ^|    AB BOND INFLATION STRATEGY abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,032.00	$	3.94		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class C
Actual	$	1,000	$	1,028.90	$	7.77		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	1,034.30	$	2.67		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class R
Actual	$	1,000	$	1,032.00	$	5.22		1.02	%
Hypothetical**	$	1,000	$	1,020.06	$	5.19		1.02	%
Class K
Actual	$	1,000	$	1,033.10	$	3.95		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class I
Actual	$	1,000	$	1,033.70	$	2.67		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class 1
Actual	$	1,000	$	1,033.10	$	3.18		0.62	%
Hypothetical**	$	1,000	$	1,022.08	$	3.16		0.62	%
Class 2
Actual	$	1,000	$	1,034.60	$	2.67		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class Z
Actual	$	1,000	$	1,034.40	$	2.67		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%

* Expenses are equal to each classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB BOND INFLATION STRATEGY    ^|    15

PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,023.7

Total Investments ($mil): $1,204.9

INFLATION PROTECTION BREAKDOWN¹

U.S. Inflation-Protected Exposure	82.7	%
Non-U.S. Inflation-Protected Exposure	0.2
Non-Inflation Exposure	17.1
	100.0	%

SECTOR BREAKDOWN OF NET PORTFOLIO ASSETS, EXCLUDING TREASURY SECURITIES, TIPS, INTEREST RATE DERIVATIVES AND NET CASH EQUIVALENTS¹

Corporates–Investment Grade	10.9%
Commercial Mortgage-Backed Securities	5.0%
Collateralized Mortgage Obligations	3.9%
Corporates–Non-Investment Grade	2.6%
Asset-Backed Securities	2.0%
Collateralized Loan Obligations	2.0%
Mortgage Pass-Throughs	1.9%
Emerging Markets–Corporate Bonds	0.5%
Local Governments–US Municipal Bonds	0.5%
Quasi-Sovereigns	0.3%
Emerging Markets–Sovereigns	0.2%
Common Stocks	0.1%
Governments–Sovereign Bonds	0.1%

SECTOR BREAKDOWN OF TOTAL PORTFOLIO INVESTMENTS, EXCLUDING DERIVATIVES²

Inflation-Linked Securities	69.8%
Corporates–Investment Grade	9.6%
Commercial Mortgage-Backed Securities	4.4%
Collateralized Mortgage Obligations	3.3%
Corporates–Non-Investment Grade	2.2%
Asset-Backed Securities	1.8%
Collateralized Loan Obligations	1.7%
Mortgage Pass-Throughs	1.6%
Emerging Markets–Corporate Bonds	0.5%
Local Governments–US Municipal Bonds	0.4%
Quasi-Sovereigns	0.3%
Emerging Markets–Sovereigns	0.2%
Governments–Treasuries	0.1%
Other	0.2%
Short-Term	3.9%

1 All data are as of October 31, 2021. The Fund’s sector and inflation protection exposure breakdowns are expressed as an approximate percentage of the Fund’s total net assets (and may vary over time) inclusive of derivative exposure except as noted, based on the Adviser’s internal classification.

2 The Fund’s sector breakdown is expressed, based on the Adviser’s internal classification, as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions (not reflected in the table), which may be used for hedging or investment purposes or to adjust the risk profile or exposures of the Fund (see “Portfolio of Investments” section of the report for additional details). “Other” sector breakdown weightings represent 0.1% or less in the following sectors: Common Stocks and Governments–Sovereign Bonds. Derivative transactions may result in a form of leverage for the Fund. The Fund uses leverage for investment purposes by entering into reverse repurchase agreements. As a result, the Fund’s total investments will generally exceed its net assets.

16    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 82.1%
Canada – 0.2%
Canadian Government Real Return Bond 0.50%, 12/01/2050	CAD		2,819	$	2,378,030
United States – 81.9%
U.S. Treasury Inflation Index 0.125%, 01/15/2023 (TIPS)(a)	U.S.$		24,561		25,486,295
0.125%, 07/15/2024-07/15/2031 (TIPS)			196,177		216,088,922
0.125%, 10/15/2024 (TIPS)(a)(b)			14,228		15,273,340
0.25%, 01/15/2025-07/15/2029 (TIPS)(a)			64,083		70,454,921
0.375%, 07/15/2023 (TIPS)(b)			38,242		40,434,662
0.375%, 01/15/2027-07/15/2027 (TIPS)			142,442		158,341,236
0.50%, 01/15/2028 (TIPS)(a)			31,401		35,267,306
0.625%, 01/15/2024 (TIPS)(a)			53,963		57,715,260
0.625%, 01/15/2026 (TIPS)			107,568		119,030,793
0.75%, 07/15/2028 (TIPS)(a)			45,149		51,864,634
0.875%, 01/15/2029 (TIPS)			26,981		31,289,082
2.50%, 01/15/2029 (TIPS)			11,766		15,103,167
3.875%, 04/15/2029 (TIPS)			1,398		1,953,358
					838,302,976
Total Inflation-Linked Securities (cost $807,919,124)					840,681,006
CORPORATES - INVESTMENT GRADE – 11.3%
Industrial – 6.5%
Basic – 0.7%
Alpek SAB de CV 3.25%, 02/25/2031(c)			564		557,232
4.25%, 09/18/2029(c)			232		244,702
Braskem Netherlands Finance BV 4.50%, 01/31/2030(c)			200		202,913
GUSAP III LP 4.25%, 01/21/2030(c)			1,000		1,050,125
Industrias Penoles SAB de CV 4.75%, 08/06/2050(c)			343		371,898
Inversiones CMPC SA 4.375%, 04/04/2027(c)			845		916,191
Inversiones CMPC SA/Cayman Islands Branch 4.375%, 05/15/2023(c)			270		278,572

abfunds.com AB BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Suzano Austria GmbH 2.50%, 09/15/2028	U.S.$		2,204	$	2,085,535
3.75%, 01/15/2031			222		221,445
Yamana Gold, Inc. 2.63%, 08/15/2031(c)			1,457		1,421,114
					7,349,727
Capital Goods – 0.1%
Flowserve Corp. 2.80%, 01/15/2032			545		535,087
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			180		190,445
					725,532
Communications - Media – 0.7%
Discovery Communications LLC 4.65%, 05/15/2050			58		68,217
5.20%, 09/20/2047			188		235,071
5.30%, 05/15/2049			83		105,517
Netflix, Inc. 5.875%, 11/15/2028			1,272		1,548,864
Prosus NV 3.68%, 01/21/2030(c)			428		435,972
4.027%, 08/03/2050(c)			487		455,345
Tencent Holdings Ltd. 1.81%, 01/26/2026(c)			874		874,983
2.39%, 06/03/2030(c)			610		593,713
3.24%, 06/03/2050(c)			655		625,230
Time Warner Cable LLC 4.50%, 09/15/2042			235		256,214
Weibo Corp. 3.375%, 07/08/2030			2,114		2,088,632
					7,287,758
Communications - Telecommunications – 0.4%
AT&T, Inc. 3.50%, 09/15/2053			319		323,661
3.65%, 09/15/2059			827		840,571
4.30%, 12/15/2042			365		412,512
T-Mobile USA, Inc. 2.625%, 04/15/2026-02/15/2029			509		512,084
2.875%, 02/15/2031			559		556,635
3.375%, 04/15/2029(c)			119		122,343
3.40%, 10/15/2052(c)			1,278		1,272,287
					4,040,093

18    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.4%
General Motors Co. 6.125%, 10/01/2025	U.S.$		194	$	224,875
6.80%, 10/01/2027			272		335,167
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(c)			1,732		1,826,740
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(c)			1,378		1,493,945
					3,880,727
Consumer Cyclical - Other – 0.2%
Las Vegas Sands Corp. 3.90%, 08/08/2029			1,419		1,438,327
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			92		104,289
MDC Holdings, Inc. 6.00%, 01/15/2043			731		925,833
					2,468,449
Consumer Cyclical - Retailers – 0.3%
Advance Auto Parts, Inc. 3.90%, 04/15/2030			1,525		1,681,983
InRetail Consumer 3.25%, 03/22/2028(c)			552		540,719
Ross Stores, Inc. 4.70%, 04/15/2027			1,083		1,230,992
					3,453,694
Consumer Non-Cyclical – 1.1%
Altria Group, Inc. 3.40%, 05/06/2030			950		993,130
4.80%, 02/14/2029			226		257,602
Anheuser-Busch InBev Worldwide, Inc. 5.55%, 01/23/2049			1,080		1,513,804
BAT Capital Corp. 2.259%, 03/25/2028			1,727		1,693,116
2.726%, 03/25/2031			671		654,131
4.70%, 04/02/2027			605		673,559
Baxalta, Inc. 3.60%, 06/23/2022			209		211,895
Cencosud SA 5.15%, 02/12/2025(c)			1,134		1,234,146
Cigna Corp. 4.375%, 10/15/2028			501		574,256
CVS Health Corp. 4.30%, 03/25/2028			49		55,529

abfunds.com AB BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(c)	U.S.$		350	$	346,062
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			1,190		1,163,998
Sigma Alimentos SA de CV 4.125%, 05/02/2026(c)			209		224,061
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/2023			1,151		1,231,927
					10,827,216
Energy – 1.2%
BP Capital Markets America, Inc. 2.939%, 06/04/2051			1,962		1,912,283
Cenovus Energy, Inc. 4.25%, 04/15/2027			33		36,246
4.40%, 04/15/2029			1,830		2,050,039
Enbridge Energy Partners LP 7.375%, 10/15/2045			1,351		2,173,340
Energy Transfer LP 6.25%, 04/15/2049			843		1,121,595
Eni SpA 4.25%, 05/09/2029(c)			954		1,080,729
Marathon Petroleum Corp. 5.125%, 12/15/2026			289		332,630
6.50%, 03/01/2041			282		391,929
Oleoducto Central SA 4.00%, 07/14/2027(c)			453		462,994
ONEOK Partners LP 6.125%, 02/01/2041			105		135,907
ONEOK, Inc. 6.35%, 01/15/2031			166		211,041
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(c)			306		306,459
TransCanada PipeLines Ltd. 6.10%, 06/01/2040			1,455		1,991,473
					12,206,665
Other Industrial – 0.1%
Alfa SAB de CV 5.25%, 03/25/2024(c)			600		639,675
CITIC Ltd. 2.85%, 02/25/2030(c)			550		558,525
					1,198,200

20    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Services – 0.2%
Alibaba Group Holding Ltd. 2.125%, 02/09/2031	U.S.$		1,508	$	1,445,780
Expedia Group, Inc. 4.625%, 08/01/2027			486		544,378
6.25%, 05/01/2025(c)			34		38,837
IHS Markit Ltd. 4.25%, 05/01/2029			295		336,436
4.75%, 08/01/2028			59		68,932
					2,434,363
Technology – 0.9%
Baidu, Inc. 1.625%, 02/23/2027			474		462,861
3.425%, 04/07/2030			201		209,543
Broadcom, Inc. 3.137%, 11/15/2035(c)			188		185,167
3.187%, 11/15/2036(c)			557		546,690
4.11%, 09/15/2028			652		718,647
4.15%, 11/15/2030			1,101		1,210,384
Dell International LLC/EMC Corp. 6.02%, 06/15/2026			974		1,147,197
Infor, Inc. 1.75%, 07/15/2025(c)			450		452,628
Kyndryl Holdings, Inc. 2.05%, 10/15/2026(c)			1,428		1,413,249
Micron Technology, Inc. 4.185%, 02/15/2027			805		887,577
NXP BV/NXP Funding LLC 5.55%, 12/01/2028(c)			711		857,825
SK Hynix, Inc. 2.375%, 01/19/2031(c)			382		367,102
VeriSign, Inc. 2.70%, 06/15/2031			250		252,377
					8,711,247
Transportation - Airlines – 0.1%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(c)			528		564,949
4.75%, 10/20/2028(c)			614		682,363
					1,247,312
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(c)			235		250,742
5.875%, 07/05/2034(c)			300		345,831
					596,573

abfunds.com AB BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Services – 0.0%
ENA Master Trust 4.00%, 05/19/2048(c)	U.S.$		303	$	306,276
					66,733,832
Financial Institutions – 4.6%
Banking – 2.8%
ABN AMRO Bank NV 4.75%, 07/28/2025(c)			200		220,088
American Express Co. Series B 3.553% (LIBOR 3 Month + 3.43%), 11/15/2021(d)(e)			99		99,000
Banco de Credito del Peru 3.125%, 07/01/2030(c)			958		947,510
Bank of America Corp. 2.299%, 07/21/2032			1,775		1,737,423
2.687%, 04/22/2032			636		644,548
Series DD 6.30%, 03/10/2026(d)			295		339,583
Series Z 6.50%, 10/23/2024(d)			458		508,110
Bank of New York Mellon Corp. (The) Series G 4.70%, 09/20/2025(d)			273		297,169
Barclays Bank PLC 6.86%, 06/15/2032(c)(d)			137		185,191
BNP Paribas SA 2.871%, 04/19/2032(c)			1,145		1,163,629
CIT Group, Inc. 5.25%, 03/07/2025			579		637,265
Citigroup, Inc. 3.98%, 03/20/2030			402		446,489
4.075%, 04/23/2029			592		658,943
5.95%, 01/30/2023(d)			257		267,159
Series W 4.00%, 12/10/2025(d)			504		513,813
Series Y 4.15%, 11/15/2026(d)			480		483,533
Credit Suisse Group AG 3.091%, 05/14/2032(c)			1,522		1,548,863
4.194%, 04/01/2031(c)			614		680,478
Deutsche Bank AG/New York NY 2.129%, 11/24/2026			296		297,273
3.961%, 11/26/2025			405		432,410
Discover Bank 4.682%, 08/09/2028			327		345,740

22    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Fifth Third Bancorp Series L 4.50%, 09/30/2025(d)	U.S.$		334	$	360,643
Goldman Sachs Group, Inc. (The) 2.383%, 07/21/2032			631		620,292
2.615%, 04/22/2032			1,364		1,367,874
Series V 4.125%, 11/10/2026(d)			775		778,402
HSBC Holdings PLC 4.292%, 09/12/2026			377		410,806
4.583%, 06/19/2029			1,663		1,878,708
ING Groep NV 2.727%, 04/01/2032			1,217		1,241,316
JPMorgan Chase & Co. 2.58%, 04/22/2032			1,364		1,373,794
Series I 3.599% (LIBOR 3 Month + 3.47%), 01/30/2022(d)(e)			528		529,896
Series V 3.451% (LIBOR 3 Month + 3.32%), 01/01/2022(d)(e)			258		258,712
Series Z 3.932% (LIBOR 3 Month + 3.80%), 02/01/2022(d)(e)			432		434,674
Morgan Stanley Series H 3.734% (LIBOR 3 Month + 3.61%), 01/15/2022(d)(e)			124		124,577
Natwest Group PLC Series U 2.452% (LIBOR 3 Month + 2.32%), 09/30/2027(d)(e)			600		596,946
Santander Holdings USA, Inc. 4.40%, 07/13/2027			424		471,814
Standard Chartered PLC 1.639% (LIBOR 3 Month + 1.51%), 01/30/2027(c)(d)(e)			400		385,184
6.00%, 07/26/2025(c)(d)			1,267		1,374,809
Truist Financial Corp. Series Q 5.10%, 03/01/2030(d)			1,060		1,194,228
UBS AG/Stamford CT 7.625%, 08/17/2022			465		489,110
UniCredit SpA 2.569%, 09/22/2026(c)			746		750,304
3.127%, 06/03/2032(c)			368		365,568

abfunds.com AB BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
US Bancorp Series J 5.30%, 04/15/2027(d)	U.S.$		427	$	473,671
Wells Fargo & Co. 2.188%, 04/30/2026			589		602,088
Series BB 3.90%, 03/15/2026(d)			418		426,021
					28,963,654
Brokerage – 0.2%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(d)			554		609,843
Series I 4.00%, 06/01/2026(d)			1,366		1,406,980
					2,016,823
Finance – 1.1%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 3.30%, 01/30/2032			860		876,693
6.50%, 07/15/2025			209		242,177
Air Lease Corp. 2.10%, 09/01/2028			376		364,946
2.875%, 01/15/2026			111		114,622
3.625%, 04/01/2027			51		54,216
Aircastle Ltd. 2.85%, 01/26/2028(c)			1,329		1,338,901
4.125%, 05/01/2024			232		245,099
4.25%, 06/15/2026			83		89,968
5.25%, 08/11/2025(c)			585		648,063
Aviation Capital Group LLC 1.95%, 01/30/2026-09/20/2026(c)			1,097		1,081,748
3.50%, 11/01/2027(c)			211		220,096
4.125%, 08/01/2025(c)			7		7,477
4.375%, 01/30/2024(c)			194		205,921
4.875%, 10/01/2025(c)			246		268,998
5.50%, 12/15/2024(c)			550		611,066
CDBL Funding 1 3.50%, 10/24/2027(c)			940		980,909
GE Capital European Funding Unlimited Co. 4.625%, 02/22/2027	EUR		200		280,730
GE Capital Funding LLC 4.40%, 05/15/2030	U.S.$		1,570		1,836,429
Synchrony Financial 4.50%, 07/23/2025			1,875		2,051,100
					11,519,159

24    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.4%
Alleghany Corp. 3.625%, 05/15/2030	U.S.$		1,257	$	1,373,360
Centene Corp. 2.625%, 08/01/2031			563		554,437
4.625%, 12/15/2029			237		255,998
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(c)			183		244,104
Nationwide Mutual Insurance Co. 9.375%, 08/15/2039(c)			125		216,909
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049(c)			1,000		1,134,250
Voya Financial, Inc. 5.65%, 05/15/2053			335		351,773
					4,130,831
Other Finance – 0.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			233		254,042
REITs – 0.1%
Vornado Realty LP 3.40%, 06/01/2031			718		736,402
					47,620,911
Utility – 0.2%
Electric – 0.2%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(c)			358		367,688
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(c)			661		537,600
Engie Energia Chile SA 3.40%, 01/28/2030(c)			751		750,437
					1,655,725
Total Corporates – Investment Grade (cost $112,885,654)					116,010,468
COMMERCIAL MORTGAGE-BACKED SECURITIES – 5.2%
Non-Agency Fixed Rate CMBS – 3.3%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(c)			520		475,042
CFCRE Commercial Mortgage Trust Series 2016-C4, Class A4 3.283%, 05/10/2058			730		774,383

abfunds.com AB BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 03/13/2035(c)	U.S.$		885	$	907,328
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			915		943,181
Series 2013-GC11, Class D 4.418%, 04/10/2046(c)			191		195,389
Series 2015-GC27, Class A5 3.137%, 02/10/2048			1,382		1,450,690
Series 2015-GC35, Class A4 3.818%, 11/10/2048			450		487,096
Series 2016-C1, Class A4 3.209%, 05/10/2049			775		826,407
Series 2016-GC36, Class A5 3.616%, 02/10/2049			565		608,980
Series 2017-P8, Class AS 3.789%, 09/15/2050			526		573,858
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(c)			79		79,403
Series 2015-CR24, Class A5 3.696%, 08/10/2048			590		634,043
Series 2015-CR25, Class A4 3.759%, 08/10/2048			1,155		1,247,488
Series 2015-DC1, Class A5 3.35%, 02/10/2048			1,220		1,290,044
Series 2015-PC1, Class A5 3.902%, 07/10/2050			745		802,335
CSAIL Commercial Mortgage Trust Series 2015-C2, Class A4 3.504%, 06/15/2057			475		505,107
Series 2015-C3, Class A4 3.718%, 08/15/2048			395		424,359
Series 2015-C4, Class A4 3.808%, 11/15/2048			1,853		2,006,871
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.159%, 08/10/2044(c)			19		8,983
Series 2013-G1, Class A1 2.059%, 04/10/2031(c)			110		110,301
Series 2014-GC18, Class D 4.975%, 01/10/2047(c)			393		64,764
Series 2014-GC22, Class A5 3.862%, 06/10/2047			1,072		1,139,386
Series 2015-GC28, Class A5 3.396%, 02/10/2048			1,300		1,378,149

26    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(f)(g)	U.S.$		172	$	171,416
Series 2021-1, Class A2 2.435%, 08/15/2026(f)(g)			351		358,198
Series 2021-1, Class AS 2.638%, 08/15/2026(f)(g)			40		40,726
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class A5 3.775%, 08/15/2047			1,220		1,296,269
Series 2014-C21, Class B 4.341%, 08/15/2047			314		330,495
Series 2014-C22, Class XA 0.824%, 09/15/2047(h)			19,325		371,152
Series 2015-C30, Class A5 3.822%, 07/15/2048			585		633,212
Series 2015-C31, Class A3 3.801%, 08/15/2048			986		1,057,583
Series 2015-C33, Class A4 3.77%, 12/15/2048			1,150		1,249,561
JPMCC Commercial Mortgage Securities Trust Series 2017-JP7, Class XA 1.039%, 09/15/2050(h)			8,785		384,639
JPMorgan Chase Commercial Mortgage Securities Trust Series 2011-C5, Class D 5.566%, 08/15/2046(c)			53		52,797
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			78		35,130
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C25, Class XA 1.048%, 10/15/2048(h)			9,942		319,329
Morgan Stanley Capital I Trust Series 2016-UB12, Class A4 3.596%, 12/15/2049			870		944,548
UBS Commercial Mortgage Trust Series 2018-C10, Class A4 4.313%, 05/15/2051			1,200		1,358,339
Series 2018-C8, Class A4 3.983%, 02/15/2051			990		1,100,699
Series 2018-C9, Class A4 4.117%, 03/15/2051			1,800		2,006,193

abfunds.com AB BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class A5 2.85%, 12/10/2045	U.S.$		2,309	$	2,346,085
Wells Fargo Commercial Mortgage Trust Series 2015-C27, Class A5 3.451%, 02/15/2048			1,160		1,232,415
Series 2016-LC25, Class C 4.352%, 12/15/2059			330		347,119
Series 2016-NXS6, Class A4 2.918%, 11/15/2049			900		948,237
Series 2016-NXS6, Class C 4.297%, 11/15/2049			525		556,122
Series 2018-C48, Class A5 4.302%, 01/15/2052			145		165,497
					34,239,348
Non-Agency Floating Rate CMBS – 1.9%
Ashford Hospitality Trust Series 2018-KEYS, Class A 1.09% (LIBOR 1 Month + 1.00%), 06/15/2035(c)(e)			659		659,154
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 1.091% (LIBOR 1 Month + 1.00%), 11/15/2033(c)(e)			1,755		1,751,744
BBCMS Mortgage Trust Series 2020-BID, Class A 2.23% (LIBOR 1 Month + 2.14%), 10/15/2037(c)(e)			1,383		1,389,105
BCP Trust Series 2021-330N, Class A 0.889% (LIBOR 1 Month + 0.80%), 06/15/2038(c)(e)			288		286,287
BFLD Trust Series 2021-FPM, Class A 1.691% (LIBOR 1 Month + 1.60%), 06/15/2038(c)(e)			2,276		2,275,313
BHMS Series 2018-ATLS, Class A 1.34% (LIBOR 1 Month + 1.25%), 07/15/2035(c)(e)			1,001		1,001,287
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 0.91% (LIBOR 1 Month + 0.82%), 06/15/2035(c)(e)			1,000		999,391

28    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BX Commercial Mortgage Trust Series 2019-IMC, Class A 1.09% (LIBOR 1 Month + 1.00%), 04/15/2034(c)(e)	U.S.$		766	$	765,585
Series 2019-IMC, Class D 1.99% (LIBOR 1 Month + 1.90%), 04/15/2034(c)(e)			185		184,555
Series 2019-IMC, Class E 2.24% (LIBOR 1 Month + 2.15%), 04/15/2034(c)(e)			895		888,445
BX Trust Series 2018-EXCL, Class A 1.178% (LIBOR 1 Month + 1.09%), 09/15/2037(c)(e)			1,026		1,021,150
CLNY Trust Series 2019-IKPR, Class D 2.115% (LIBOR 1 Month + 2.03%), 11/15/2038(c)(e)			1,000		994,981
DBWF Mortgage Trust Series 2018-GLKS, Class A 1.11% (LIBOR 1 Month + 1.03%), 12/19/2030(c)(e)			1,042		1,040,861
Federal Home Loan Mortgage Corp. Series 2021-MN1, Class M1 2.049% (SOFR+ 2.00%), 01/25/2051(c)(e)			209		210,849
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 1.29% (LIBOR 1 Month + 1.20%), 06/15/2038(c)(e)			1,368		1,369,878
Series 2019-SMP, Class A 1.24% (LIBOR 1 Month + 1.15%), 08/15/2032(c)(e)			1,125		1,125,891
HFX Funding Series 2017-1A, Class A3 3.647%, 03/15/2035(g)			1,070		1,099,260
Invitation Homes Trust Series 2018-SFR2, Class C 1.37% (LIBOR 1 Month + 1.28%), 06/17/2037(c)(e)			374		374,367
Series 2018-SFR3, Class C 1.386% (LIBOR 1 Month + 1.30%), 07/17/2037(c)(e)			710		711,092
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.04% (LIBOR 1 Month + 1.95%), 11/15/2026(e)(g)			162		149,174

abfunds.com AB BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Natixis Commercial Mortgage Securities Trust Series 2019-MILE, Class A 1.59% (LIBOR 1 Month + 1.50%), 07/15/2036(c)(e)	U.S.$		461	$	461,201
Starwood Retail Property Trust Series 2014-STAR, Class A 1.56% (LIBOR 1 Month + 1.47%), 11/15/2027(c)(e)			756		461,103
					19,220,673
Total Commercial Mortgage-Backed Securities (cost $52,717,896)					53,460,021
COLLATERALIZED MORTGAGE OBLIGATIONS – 3.9%
Risk Share Floating Rate – 3.3%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 1.939% (LIBOR 1 Month + 1.85%), 10/25/2028(c)(e)			412		412,020
Series 2019-1A, Class M1B 1.839% (LIBOR 1 Month + 1.75%), 03/25/2029(c)(e)			914		914,432
Series 2019-2A, Class M1C 2.089% (LIBOR 1 Month + 2.00%), 04/25/2029(c)(e)			707		708,884
Series 2019-3A, Class M1B 1.689% (LIBOR 1 Month + 1.60%), 07/25/2029(c)(e)			660		661,477
Series 2019-3A, Class M1C 2.039% (LIBOR 1 Month + 1.95%), 07/25/2029(c)(e)			480		480,000
Series 2019-4A, Class M1B 2.089% (LIBOR 1 Month + 2.00%), 10/25/2029(c)(e)			965		965,600
Series 2020-2A, Class M1B 3.289% (LIBOR 1 Month + 3.20%), 08/26/2030(c)(e)			167		167,162
Series 2020-3A, Class M1B 2.939% (LIBOR 1 Month + 2.85%), 10/25/2030(c)(e)			178		179,545
Series 2020-4A, Class M2A 2.689% (LIBOR 1 Month + 2.60%), 06/25/2030(c)(e)			144		144,164

30    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2021-1A, Class M1C 2.999% (SOFR+ 2.95%), 03/25/2031(c)(e)	U.S.$		728	$	753,357
Series 2021-2A, Class M1B 1.549% (SOFR+ 1.50%), 06/25/2031(c)(e)			1,425		1,427,191
Series 2021-3A, Class A2 1.049% (SOFR+ 1.00%), 09/25/2031(c)(e)			1,699		1,705,405
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 2.489% (LIBOR 1 Month + 2.40%), 04/25/2031(c)(e)			158		158,380
Series 2019-R02, Class 1M2 2.389% (LIBOR 1 Month + 2.30%), 08/25/2031(c)(e)			96		96,940
Series 2019-R03, Class 1M2 2.239% (LIBOR 1 Month + 2.15%), 09/25/2031(c)(e)			49		48,983
Series 2019-R04, Class 2M2 2.189% (LIBOR 1 Month + 2.10%), 06/25/2039(c)(e)			87		86,989
Series 2019-R05, Class 1M2 2.089% (LIBOR 1 Month + 2.00%), 07/25/2039(c)(e)			49		48,716
Series 2019-R06, Class 2M2 2.189% (LIBOR 1 Month + 2.10%), 09/25/2039(c)(e)			165		165,301
Series 2019-R07, Class 1M2 2.189% (LIBOR 1 Month + 2.10%), 10/25/2039(c)(e)			365		366,531
Series 2020-R01, Class 1M2 2.139% (LIBOR 1 Month + 2.05%), 01/25/2040(c)(e)			734		737,700
Series 2020-R02, Class 2M2 2.089% (LIBOR 1 Month + 2.00%), 01/25/2040(c)(e)			417		418,732
Series 2021-R01, Class 1M2 1.60% (SOFR+ 1.55%), 10/25/2041(c)(e)			1,447		1,453,443
Eagle Re Ltd. Series 2020-1, Class M1A 0.989% (LIBOR 1 Month + 0.90%), 01/25/2030(c)(e)			1,100		1,089,296
Series 2021-2, Class M1B 2.099% (SOFR+ 2.05%), 04/25/2034(c)(e)			675		674,583

abfunds.com AB BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 4.889% (LIBOR 1 Month + 4.80%), 05/25/2028(e)	U.S.$		172	$	176,624
Series 2017-DNA3, Class M2 2.589% (LIBOR 1 Month + 2.50%), 03/25/2030(e)			900		919,225
Series 2017-HQA2, Class M2B 2.739% (LIBOR 1 Month + 2.65%), 12/25/2029(e)			840		859,297
Series 2019-DNA3, Class M2 2.139% (LIBOR 1 Month + 2.05%), 07/25/2049(c)(e)			71		71,704
Series 2019-DNA4, Class M2 2.039% (LIBOR 1 Month + 1.95%), 10/25/2049(c)(e)			297		298,126
Series 2019-FTR2, Class M2 2.239% (LIBOR 1 Month + 2.15%), 11/25/2048(c)(e)			515		515,087
Series 2019-HQA3, Class M2 1.939% (LIBOR 1 Month + 1.85%), 09/25/2049(c)(e)			454		455,821
Series 2020-DNA1, Class M2 1.789% (LIBOR 1 Month + 1.70%), 01/25/2050(c)(e)			469		470,473
Series 2020-DNA5, Class M2 2.849% (SOFR+ 2.80%), 10/25/2050(c)(e)			811		820,514
Series 2021-DNA5, Class M2 1.699% (SOFR+ 1.65%), 01/25/2034(c)(e)			589		591,843
Series 2021-DNA6, Class M2 1.548% (SOFR+ 1.50%), 10/25/2041(c)(e)			2,561		2,565,496
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 4.989% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			164		170,118
Series 2015-C02, Class 1M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			163		165,836
Series 2015-C02, Class 2M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			19		18,715

32    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C03, Class 1M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(e)	U.S.$		155	$	158,989
Series 2015-C03, Class 2M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			36		36,548
Series 2015-C04, Class 1M2 5.789% (LIBOR 1 Month + 5.70%), 04/25/2028(e)			540		570,830
Series 2016-C05, Class 2M2 4.539% (LIBOR 1 Month + 4.45%), 01/25/2029(e)			553		576,048
Series 2016-C06, Class 1M2 4.339% (LIBOR 1 Month + 4.25%), 04/25/2029(e)			248		257,924
Series 2016-C07, Class 2M2 4.439% (LIBOR 1 Month + 4.35%), 05/25/2029(e)			822		857,293
Series 2017-C02, Class 2M2C 3.739% (LIBOR 1 Month + 3.65%), 09/25/2029(e)			938		977,234
Series 2017-C03, Class 1M2 3.089% (LIBOR 1 Month + 3.00%), 10/25/2029(e)			510		525,339
Home Re Ltd. Series 2020-1, Class M1B 3.339% (LIBOR 1 Month + 3.25%), 10/25/2030(c)(e)			788		790,269
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.088% (LIBOR 1 Month + 2.00%), 03/27/2024(c)(e)			146		145,747
Series 2019-2R, Class A 2.838% (LIBOR 1 Month + 2.75%), 05/27/2023(c)(e)			743		735,384
Series 2019-3R, Class A 2.788% (LIBOR 1 Month + 2.70%), 10/27/2022(c)(e)			77		77,394
Series 2020-1R, Class A 2.438% (LIBOR 1 Month + 2.35%), 02/27/2023(e)(g)			277		276,765
Radnor Re Ltd. Series 2019-1, Class M1B 2.039% (LIBOR 1 Month + 1.95%), 02/25/2029(c)(e)			586		586,600
Series 2019-2, Class M1B 1.839% (LIBOR 1 Month + 1.75%), 06/25/2029(c)(e)			723		722,776

abfunds.com AB BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1, Class M1A 1.039% (LIBOR 1 Month + 0.95%), 01/25/2030(c)(e)	U.S.$		391	$	388,254
Series 2020-2, Class M1C 4.689% (LIBOR 1 Month + 4.60%), 10/25/2030(c)(e)			436		436,904
STACR Trust Series 2018-DNA3, Class M2 2.189% (LIBOR 1 Month + 2.10%), 09/25/2048(c)(e)			426		431,718
Traingle Re Ltd. Series 2020-1, Class M1B 3.989% (LIBOR 1 Month + 3.90%), 10/25/2030(c)(e)			1,640		1,643,054
Series 2021-1, Class M1B 3.089% (LIBOR 1 Month + 3.00%), 08/25/2033(c)(e)			701		701,314
Series 2021-3, Class M1A 1.949% (SOFR+ 1.90%), 02/25/2034(c)(e)			1,084		1,086,407
					33,946,501
Agency Floating Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 3955, Class SD 6.51% (6.60% – LIBOR 1 Month), 11/15/2041(e)(i)			2,432		459,829
Series 4693, Class SL 6.06% (6.15% – LIBOR 1 Month), 06/15/2047(e)(i)			1,493		340,873
Series 4954, Class SL 5.961% (6.05% – LIBOR 1 Month), 02/25/2050(e)(i)			2,064		369,605
Series 4981, Class HS 6.011% (6.10% – LIBOR 1 Month), 06/25/2050(e)(i)			4,181		661,533
Federal National Mortgage Association REMICs Series 2011-131, Class ST 6.451% (6.54% – LIBOR 1 Month), 12/25/2041(e)(i)			744		153,125
Series 2014-17, Class SA 5.961% (6.05% – LIBOR 1 Month), 04/25/2044(e)(i)			1,962		426,580
Series 2014-78, Class SE 6.011% (6.10% – LIBOR 1 Month), 12/25/2044(e)(i)			1,117		213,933

34    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-77, Class DS 5.911% (6.00% – LIBOR 1 Month), 10/25/2046(e)(i)	U.S.$		1,173	$	224,754
Series 2017-62, Class AS 6.061% (6.15% – LIBOR 1 Month), 08/25/2047(e)(i)			1,376		280,761
Series 2017-81, Class SA 6.111% (6.20% – LIBOR 1 Month), 10/25/2047(e)(i)			1,597		368,138
Series 2017-97, Class LS 6.111% (6.20% – LIBOR 1 Month), 12/25/2047(e)(i)			1,796		439,228
Government National Mortgage Association Series 2017-122, Class SA 6.114% (6.20% – LIBOR 1 Month), 08/20/2047(e)(i)			1,020		217,774
Series 2017-134, Class MS 6.114% (6.20% – LIBOR 1 Month), 09/20/2047(e)(i)			1,099		244,137
					4,400,270
Agency Fixed Rate – 0.2%
Federal Home Loan Mortgage Corp. REMICs Series 5015, Class BI 4.00%, 09/25/2050(h)			2,584		436,789
Series 5049, Class CI 3.50%, 12/25/2050(h)			2,813		374,818
Federal National Mortgage Association REMICs Series 2020-89, Class KI 4.00%, 12/25/2050(h)			5,520		820,985
					1,632,592
Non-Agency Floating Rate – 0.0%
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 2.189% (LIBOR 1 Month + 2.10%), 04/25/2047(c)(e)			193		196,009
Total Collateralized Mortgage Obligations (cost $40,030,617)					40,175,372
CORPORATES - NON-INVESTMENT GRADE – 2.6%
Industrial – 1.8%
Basic – 0.2%
Axalta Coating Systems LLC 3.375%, 02/15/2029(c)			844		803,007

abfunds.com AB BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
INEOS Quattro Finance 2 PLC 2.50%, 01/15/2026(c)	EUR		506	$	583,474
Ingevity Corp. 3.875%, 11/01/2028(c)	U.S.$		683		671,853
					2,058,334
Capital Goods – 0.2%
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 3.25%, 09/01/2028(c)			942		922,350
GFL Environmental, Inc. 3.50%, 09/01/2028(c)			993		988,720
TransDigm, Inc. 6.25%, 03/15/2026(c)			512		534,804
					2,445,874
Communications - Media – 0.3%
Cable One, Inc. 4.00%, 11/15/2030(c)			499		490,537
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030-06/01/2033(c)			472		472,986
5.00%, 02/01/2028(c)			702		730,073
CSC Holdings LLC 6.75%, 11/15/2021			145		145,173
Sirius XM Radio, Inc. 4.00%, 07/15/2028(c)			1,076		1,083,242
					2,922,011
Communications - Telecommunications – 0.1%
Lumen Technologies, Inc. 4.50%, 01/15/2029(c)			970		937,059
Consumer Cyclical - Automotive – 0.1%
Allison Transmission, Inc. 3.75%, 01/30/2031(c)			985		946,654
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(c)	EUR		191		225,962
					1,172,616
Consumer Cyclical - Entertainment – 0.3%
Carnival Corp. 4.00%, 08/01/2028(c)	U.S.$		1,235		1,234,210
Mattel, Inc. 3.375%, 04/01/2026(c)			549		565,981
3.75%, 04/01/2029(c)			550		571,483

36    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(c)	U.S.$		394	$	441,083
11.50%, 06/01/2025(c)			422		480,417
					3,293,174
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(c)			1,046		1,013,595
Consumer Cyclical - Retailers – 0.1%
Levi Strauss & Co. 3.50%, 03/01/2031(c)			623		630,981
Consumer Non-Cyclical – 0.3%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(c)			664		654,392
Jazz Securities DAC 4.375%, 01/15/2029(c)			305		313,754
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(c)			1,390		1,383,314
Newell Brands, Inc. 4.70%, 04/01/2026			471		515,938
4.875%, 06/01/2025			115		125,912
					2,993,310
Energy – 0.1%
Transocean Poseidon Ltd. 6.875%, 02/01/2027(c)			388		387,969
Venture Global Calcasieu Pass LLC 3.875%, 08/15/2029(c)			343		349,359
4.125%, 08/15/2031(c)			350		362,544
					1,099,872
					18,566,826
Financial Institutions – 0.7%
Banking – 0.5%
Banco Santander SA 7.50%, 02/08/2024(c)(d)			1,200		1,299,144
Credit Suisse Group AG 6.375%, 08/21/2026(c)(d)			320		348,518
7.50%, 07/17/2023-12/11/2023(c)(d)			1,356		1,450,398
Discover Financial Services Series D 6.125%, 06/23/2025(d)			1,667		1,861,272
					4,959,332

abfunds.com AB BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.2%
Navient Corp. 6.125%, 03/25/2024	U.S.$		722	$	772,569
SLM Corp. 4.20%, 10/29/2025			900		951,732
					1,724,301
					6,683,633
Utility – 0.1%
Electric – 0.1%
Vistra Operations Co. LLC 4.375%, 05/01/2029(c)			1,057		1,043,597
Total Corporates - Non-Investment Grade (cost $25,880,712)					26,294,056
ASSET-BACKED SECURITIES – 2.0%
Autos - Fixed Rate – 1.0%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class A 3.70%, 09/20/2024(c)			1,760		1,843,512
Series 2018-2A, Class A 4.00%, 03/20/2025(c)			1,425		1,514,500
Carvana Auto Receivables Trust Series 2021-N3, Class C 1.02%, 06/12/2028			777		772,370
CPS Auto Receivables Trust Series 2021-C, Class D 1.69%, 06/15/2027(c)			1,080		1,072,457
FHF Trust Series 2021-2A, Class A 0.83%, 12/15/2026(c)			791		787,862
First Investors Auto Owner Trust Series 2019-1A, Class B 3.02%, 03/17/2025(c)			1,190		1,195,955
Series 2020-1A, Class A 1.49%, 01/15/2025(c)			146		146,228
Ford Credit Auto Owner Trust Series 2021-1, Class D 2.31%, 10/17/2033(c)			1,000		992,400
Octane Receivables Trust Series 2021-2A, Class B 2.02%, 09/20/2028(c)			1,508		1,507,947
					9,833,231
Other ABS - Fixed Rate – 0.8%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(c)(f)			1,464		1,481,273

38    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Affirm Asset Securitization Trust Series 2020-A, Class A 2.10%, 02/18/2025(c)	U.S.$		711	$	713,978
Series 2021-Z1, Class A 1.07%, 08/15/2025(c)			575		574,615
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(c)			777		794,476
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(c)(f)			561		562,971
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(c)			503		558,593
Series 2020-1A, Class A2 3.981%, 12/20/2050(c)			332		351,289
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(c)			523		536,147
Nelnet Student Loan Trust Series 2021-CA, Class B 2.53%, 04/20/2062(c)			758		763,219
Series 2021-DA, Class B 2.90%, 04/20/2062(c)			793		799,378
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(c)			290		291,150
Series 2021-3, Class B 1.66%, 07/20/2031(c)			1,090		1,080,035
					8,507,124
Credit Cards - Fixed Rate – 0.2%
Brex Commercial Charge Card Master Trust Series 2021-1, Class A 2.09%, 07/15/2024(c)			729		734,536
Mission Lane Credit Card Master Trust Series 2021-A, Class B 2.24%, 09/15/2026(c)			352		347,748
World Financial Network Credit Card Master Trust Series 2019-B, Class M 3.04%, 04/15/2026			1,070		1,086,992
					2,169,276
Total Asset-Backed Securities (cost $20,248,436)					20,509,631

abfunds.com AB BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED LOAN OBLIGATIONS – 2.0%
CLO - Floating Rate – 1.9%
AGL CLO 12 Ltd. Series 2021-12A, Class D 2.98% (LIBOR 3 Month + 2.85%), 07/20/2034(c)(e)	U.S.$		948	$	944,508
Balboa Bay Loan Funding Ltd. Series 2021-1A, Class A 1.347% (LIBOR 3 Month + 1.20%), 07/20/2034(c)(e)			1,111		1,112,054
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 3.224% (LIBOR 3 Month + 3.10%), 04/15/2034(c)(e)			1,000		1,000,159
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 3.035% (LIBOR 3 Month + 3.10%), 07/20/2034(c)(e)			660		660,060
Dryden CLO Ltd. Series 2020-78A, Class C 2.072% (LIBOR 3 Month + 1.95%), 04/17/2033(c)(e)			880		881,202
Series 2020-78A, Class D 3.122% (LIBOR 3 Month + 3.00%), 04/17/2033(c)(e)			460		460,711
Elevation CLO Ltd. Series 2020-11A, Class C 2.324% (LIBOR 3 Month + 2.20%), 04/15/2033(c)(e)			780		761,638
Elmwood CLO IX Ltd. Series 2021-2A, Class D 3.089% (LIBOR 3 Month + 2.95%), 07/20/2034(c)(e)			1,065		1,065,113
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 3.051% (LIBOR 3 Month + 2.90%), 07/19/2034(c)(e)			1,120		1,107,473
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 1.202% (LIBOR 3 Month + 1.07%), 04/20/2034(c)(e)			1,077		1,077,634
Kayne CLO 7 Ltd. Series 2020-7A, Class C 2.122% (LIBOR 3 Month + 2.00%), 04/17/2033(c)(e)			400		400,641

40    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Magnetite XXVI Ltd. Series 2020-26A, Class A1R 1.21% (LIBOR 3 Month + 1.12%), 07/25/2034(c)(e)	U.S.$		2,348	$	2,356,219
Neuberger Berman Loan Advisers CLO 42 Ltd. Series 2021-42A, Class D 2.922% (LIBOR 3 Month + 2.80%), 07/16/2035(c)(e)			1,295		1,280,096
Neuberger Berman Loan Advisers CLO 43 Ltd. Series 2021-43A, Class A 1.242% (LIBOR 3 Month + 1.13%), 07/17/2035(c)(e)			1,354		1,354,272
New Mountain CLO Ltd. Series CLO-3A, Class A 1.311% (LIBOR 3 Month + 1.18%), 10/20/2034(c)(e)			500		500,075
OCP CLO Ltd. Series 2020-18A, Class AR 1.222% (LIBOR 3 Month + 1.09%), 07/20/2032(c)(e)			1,424		1,425,665
Pikes Peak CLO 8 Series 2021-8A, Class A 1.322% (LIBOR 3 Month + 2.17%), 07/20/2034(c)(e)			1,450		1,451,228
Regatta XX Funding Ltd. Series 2021-2A, Class D 3.184% (LIBOR 3 Month + 3.10%), 10/15/2034(c)(e)			1,425		1,425,461
Voya CLO Ltd. Series 2019-1A, Class DR 2.974% (LIBOR 3 Month + 2.85%), 04/15/2031(c)(e)			340		333,101
					19,597,310
CLO - Fixed Rate – 0.1%
CAJUN Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(c)			464		464,000
Total Collateralized Loan Obligations (cost $20,099,101)					20,061,310

abfunds.com AB BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MORTGAGE PASS-THROUGHS – 1.9%
Agency Fixed Rate 30-Year – 1.9%
Uniform Mortgage-Backed Security Series 2021 2.50%, 11/01/2051, TBA (cost $19,873,633)	U.S.$		19,331	$	19,852,031
EMERGING MARKETS - CORPORATE BONDS – 0.5%
Industrial – 0.5%
Basic – 0.1%
CSN Resources SA 4.625%, 06/10/2031(c)			537		526,797
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(c)			379		409,794
Volcan Cia Minera SAA 4.375%, 02/11/2026(c)			262		255,171
					1,191,762
Capital Goods – 0.2%
Cemex SAB de CV 3.875%, 07/11/2031(c)			942		941,341
Embraer Netherlands Finance BV 5.40%, 02/01/2027			590		615,665
6.95%, 01/17/2028(c)			384		425,472
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(c)			270		676
					1,983,154
Communications - Media – 0.0%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(c)			427		412,055
Consumer Cyclical - Other – 0.1%
Wynn Macau Ltd. 5.625%, 08/26/2028(c)			483		446,596
Consumer Non-Cyclical – 0.1%
BRF GmbH 4.35%, 09/29/2026(c)			327		330,229
Natura Cosmeticos SA 4.125%, 05/03/2028(c)			583		577,054
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(g)(j)(k)			655		6,566
					913,849
					4,947,416

42    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 03/01/2026(g)	U.S.$		89	$	91,213
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(c)(l)			229		17,808
Total Emerging Markets - Corporate Bonds (cost $5,816,373)					5,056,437
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.5%
United States – 0.5%
City of New York Series 2021-D 1.923%, 08/01/2031			775		753,334
Port Authority of New York & New Jersey Series 2020-A 1.086%, 07/01/2023			660		666,085
State of California Series 2010 5.70%, 11/01/2021			825		825,000
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035			904		927,270
University of California Series 2021-B 3.071%, 05/15/2051			1,465		1,496,385
Total Local Governments - US Municipal Bonds (cost $4,618,720)					4,668,074
QUASI-SOVEREIGNS – 0.3%
Quasi-Sovereign Bonds – 0.3%
Indonesia – 0.0%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(c)			435		466,103
Mexico – 0.2%
Comision Federal de Electricidad 3.348%, 02/09/2031(c)			1,089		1,052,791
Petroleos Mexicanos 6.75%, 09/21/2047			529		466,181
6.84%, 01/23/2030			29		30,254
					1,549,226

abfunds.com AB BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Peru – 0.1%
Corp. Financiera de Desarrollo SA 2.40%, 09/28/2027(c)	U.S.$		1,185	$	1,158,708
Total Quasi-Sovereigns (cost $3,204,743)					3,174,037
EMERGING MARKETS - SOVEREIGNS – 0.3%
Dominican Republic – 0.1%
Dominican Republic International Bond 4.875%, 09/23/2032(c)			1,213		1,232,181
Egypt – 0.1%
Egypt Government International Bond 5.875%, 02/16/2031(c)			1,259		1,131,526
Oman – 0.1%
Oman Government International Bond 4.875%, 02/01/2025(c)			256		267,088
6.25%, 01/25/2031(c)			336		362,985
					630,073
Total Emerging Markets - Sovereigns (cost $3,042,166)					2,993,780
GOVERNMENTS - TREASURIES – 0.2%
Malaysia – 0.2%
Malaysia Government Bond Series 117 3.882%, 03/10/2022 (cost $1,589,178)	MYR		6,633		1,613,517
		Shares
COMMON STOCKS – 0.2%
Financials – 0.2%
Insurance – 0.2%
Mt Logan Re Ltd. (Preference Shares)(f)(j)(m)(n) (cost $1,427,910)			1,428		1,502,628

44    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - SOVEREIGN BONDS – 0.1%
Colombia – 0.0%
Colombia Government International Bond 3.125%, 04/15/2031	U.S.$		248	$	232,702
Qatar – 0.0%
Qatar Government International Bond 3.40%, 04/16/2025(c)			398		425,188
Saudi Arabia – 0.1%
Saudi Government International Bond 2.90%, 10/22/2025(c)			733		773,681
Total Governments - Sovereign Bonds (cost $1,376,286)					1,431,571
		Shares
SHORT-TERM INVESTMENTS – 4.6%
Investment Companies – 4.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(o)(p)(q) (cost $47,432,507)			47,432,507		47,432,507
Total Investments – 117.7% (cost $1,168,163,056)					1,204,916,446
Other assets less liabilities – (17.7)%					(181,237,635	)
Net Assets – 100.0%				$	1,023,678,811

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. T-Note 2 Yr (CBT) Futures		116		December 2021	$	25,433,000	$	(98,591	)
Sold Contracts
U.S. 10 Yr Ultra Futures		72		December 2021		10,442,250		16,982
U.S. T-Note 5 Yr (CBT) Futures		502		December 2021		61,118,500		759,448
U.S. Ultra Bond (CBT) Futures		44		December 2021		8,641,875		25,069
							$	702,908

abfunds.com AB BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Barclays Bank PLC	CAD	28,804	USD	22,618		11/19/2021	$	(655,943	)
Citibank, NA	AUD	23,469	USD	16,913		11/09/2021		(742,190	)
Deutsche Bank AG	USD	9,205	RUB	678,330		12/15/2021		274,561
Goldman Sachs Bank USA	MYR	7,213	USD	1,735		12/22/2021		(1,169	)
JPMorgan Chase Bank, NA	SEK	205,670	USD	23,512		01/20/2022		(466,810	)
Morgan Stanley Capital Services, Inc.	AUD	1,131	USD	834		11/09/2021		(17,041	)
Morgan Stanley Capital Services, Inc.	SEK	6,916	USD	804		01/20/2022		(2,591	)
Standard Chartered Bank	CAD	1,219	USD	985		11/19/2021		336
State Street Bank & Trust Co.	EUR	965	USD	1,146		11/08/2021		31,163
State Street Bank & Trust Co.	AUD	639	USD	482		11/09/2021		1,097
State Street Bank & Trust Co.	AUD	1,221	USD	904		11/09/2021		(14,560	)
UBS AG	AUD	886	USD	641		11/09/2021		(25,463	)
UBS AG	USD	752	RUB	53,348		12/15/2021		(6,649	)
							$	(1,625,259	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAIG Series 37, 5 Year Index, 12/20/2026*		(1.00	)%		Quarterly		0.52	%		USD	115,612	$	(2,867,929	)	$	(2,642,220	)	$	(225,709	)
Malaysia, 12/20/2026*		(1.00	)		Quarterly		0.54			USD	50,370		(1,214,066	)		(1,210,126	)		(3,940	)
People’s Republic of China, 7.500%, 10/28/2027, 12/20/2026*		(1.00	)		Quarterly		0.46			USD	29,050		(817,849	)		(825,573	)		7,724
												$	(4,899,844	)	$	(4,677,919	)	$	(221,925	)

* Termination date

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

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

16,120

09/07/2026

CPI#

2.670%

Maturity

$

(397,018

)

$

– 0

–

$

(397,018

)

USD

16,120

09/07/2031

2.519%

CPI#

Maturity

504,369

– 0

–

504,369

USD

10,500

04/15/2028

3.010%

CPI#

Maturity

219,058

– 0

–

219,058

46    ^|    AB BOND INFLATION STRATEGY abfunds.com

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	64,600		02/26/2022		CPI#		1.440%		Maturity	$	(3,219,324	)	$	– 0	–	$	(3,219,324	)
USD	38,550		02/28/2022		CPI#		1.352%		Maturity		(1,992,523	)		– 0	–		(1,992,523	)
USD	4,500		07/15/2022		1.484%		CPI#		Maturity		247,646			– 0	–		247,646
USD	11,250		07/15/2022		1.575%		CPI#		Maturity		587,480			– 0	–		587,480
USD	9,450		07/15/2022		1.758%		CPI#		Maturity		462,906			– 0	–		462,906
USD	12,000		07/15/2022		1.850%		CPI#		Maturity		541,006			– 0	–		541,006
USD	21,500		07/15/2022		1.851%		CPI#		Maturity		968,167			– 0	–		968,167
USD	9,000		07/15/2023		1.902%		CPI#		Maturity		525,553			– 0	–		525,553
USD	3,000		01/15/2024		1.599%		CPI#		Maturity		240,709			– 0	–		240,709
USD	64,600		02/26/2025		1.589%		CPI#		Maturity		5,874,101			– 0	–		5,874,101
USD	38,550		02/28/2025		1.527%		CPI#		Maturity		3,628,722			– 0	–		3,628,722
USD	11,250		01/15/2028		2.799%		CPI#		Maturity		457,128			– 0	–		457,128
										$	8,647,980		$	– 0	–	$	8,647,980

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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)
SEK	217,650		08/30/2024		3 Month STIBOR	(0.165)%	Quarterly/ Annual	$	(505,146	)	$	143		$	(505,289	)
USD	1,160		06/09/2025		2.488%	3 Month LIBOR	Semi-Annual/ Quarterly		(69,747	)		– 0	–		(69,747	)
USD	2,106		08/04/2025		2.293%	3 Month LIBOR	Semi-Annual/ Quarterly		(104,918	)		– 0	–		(104,918	)
USD	5,400		10/04/2026		1.487%	3 Month LIBOR	Semi-Annual/ Quarterly		(72,342	)		– 0	–		(72,342	)
USD	1,080		11/08/2026		1.657%	3 Month LIBOR	Semi-Annual/ Quarterly		(30,803	)		– 0	–		(30,803	)
USD	1,080		11/09/2026		1.672%	3 Month LIBOR	Semi-Annual/ Quarterly		(31,650	)		– 0	–		(31,650	)
USD	7,030		04/04/2027		2.436%	3 Month LIBOR	Semi-Annual/ Quarterly		(441,761	)		– 0	–		(441,761	)
USD	20,920		06/05/2027		0.558%	3 Month LIBOR	Semi-Annual/ Quarterly		806,973			– 0	–		806,973
USD	715		07/12/2027		2.355%	3 Month LIBOR	Semi-Annual/ Quarterly		(46,482	)		– 0	–		(46,482	)
USD	5,395		06/04/2029		2.150%	3 Month LIBOR	Semi-Annual/ Quarterly		(315,856	)		– 0	–		(315,856	)
USD	3,170		09/27/2029		1.593%	3 Month LIBOR	Semi-Annual/ Quarterly		(30,162	)		– 0	–		(30,162	)
USD	40,300		05/21/2031		1.617%	3 Month LIBOR	Semi-Annual/ Quarterly		(556,831	)		– 0	–		(556,831	)
USD	1,490		11/10/2035		2.631%	3 Month LIBOR	Semi-Annual/ Quarterly		(197,067	)		– 0	–		(197,067	)
CAD	978		03/03/2051		2.297%	3 Month CDOR	Semi-Annual		8,349			38			8,311
CAD	2,980		03/04/2051		2.333%	3 Month CDOR	Semi-Annual		6,972			– 0	–		6,972
								$	(1,580,471	)	$	181		$	(1,580,652	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)%		Monthly		5.42	%		USD	1,683	$	141,063	$	112,507	$	28,556
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	1,367		114,577		94,575		20,002
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	1,367		114,577		97,909		16,668
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	346		29,000		22,505		6,495
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	346		29,000		22,505		6,495
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	328		27,492		21,813		5,679
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	683		57,247		51,956		5,291
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	67		5,616		12,994		(7,378	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	68		5,700		13,645		(7,945	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	707		59,258		139,945		(80,687	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	708		59,342		140,251		(80,909	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	1,341		112,398		262,437		(150,039	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	2,682		224,797		534,774		(309,977	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	664		55,655		113,369		(57,714	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	288		24,139		57,193		(33,054	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	354		29,671		67,610		(37,939	)

48    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	) %		Monthly		5.42	%		USD	708	$	59,343		$	142,259		$	(82,916	)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9		(2,497	)		(1,388	)		(1,109	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9		(2,496	)		(1,109	)		(1,387	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	13		(3,607	)		(1,266	)		(2,341	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	27		(7,491	)		(3,852	)		(3,639	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	27		(7,490	)		(3,509	)		(3,981	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	25		(6,936	)		(2,886	)		(4,050	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	37		(10,264	)		(4,493	)		(5,771	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	43		(11,929	)		(5,394	)		(6,535	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	43		(11,929	)		(5,222	)		(6,707	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	60		(16,645	)		(7,287	)		(9,358	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	60		(16,645	)		(6,575	)		(10,070	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	87		(24,136	)		(9,534	)		(14,602	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	92		(25,522	)		(10,898	)		(14,624	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	121		(33,568	)		(12,712	)		(20,856	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	1,145		(114,741	)		(24,374	)		(90,367	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5		(1,387	)		(598	)		(789	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	122	$	(33,844	)	$	(14,233	)	$	(19,611	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	139		(38,561	)		(16,507	)		(22,054	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	130		(36,064	)		(10,091	)		(25,973	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	138		(38,284	)		(9,133	)		(29,151	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	226		(62,697	)		(32,093	)		(30,604	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	169		(46,883	)		(13,397	)		(33,486	)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	30		(8,322	)		(3,366	)		(4,956	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	130		(36,064	)		(15,680	)		(20,384	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	150		(41,612	)		(18,092	)		(23,520	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	217		(60,200	)		(23,759	)		(36,441	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	218		(60,477	)		(23,859	)		(36,618	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	436		(120,954	)		(29,941	)		(91,013	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	662		(183,650	)		(44,410	)		(139,240	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	714		(198,076	)		(39,229	)		(158,847	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	15		(4,162	)		(2,181	)		(1,981	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	15		(4,162	)		(1,287	)		(2,875	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	27		(7,490	)		(3,314	)		(4,176	)

50    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	30	$	(8,322	)	$	(2,836	)	$	(5,486	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	30		(8,322	)		(2,621	)		(5,701	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	59		(16,368	)		(6,097	)		(10,271	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	166		(46,052	)		(16,929	)		(29,123	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	178		(49,380	)		(14,723	)		(34,657	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	371		(102,922	)		(58,042	)		(44,880	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	322		(89,328	)		(41,947	)		(47,381	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	517		(143,424	)		(82,047	)		(61,377	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	598		(165,896	)		(87,990	)		(77,906	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,000		(277,416	)		(126,723	)		(150,693	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,300		(360,642	)		(146,980	)		(213,662	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	28		(7,768	)		(2,615	)		(5,153	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	30		(8,322	)		(2,802	)		(5,520	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	118		(32,735	)		(14,413	)		(18,322	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	122		(33,845	)		(11,362	)		(22,483	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	241		(66,857	)		(28,540	)		(38,317	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	691		(191,695	)		(81,115	)		(110,580	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	1,100	$	(305,158	)	$	(155,607	)	$	(149,551	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	191		(52,987	)		(12,892	)		(40,095	)
												$	(2,097,349	)	$	610,297		$	(2,707,646	)

* Termination date

INFLATION (CPI) SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Market Value

Upfront Premiums Paid/ (Received)

Unrealized Appreciation/ (Depreciation)

JPMorgan Chase Bank, NA

USD 23,800

07/15/2023

1.848%

CPI#

Maturity

$

1,458,505

$

– 0

–

$

1,458,505

INTEREST RATE SWAPS (see Note D)

Rate Type

Swap Counterparty

Notional Amount (000)

Termination Date

Payments made by the Fund

Payments received by the Fund

Payment Frequency Paid/ Received

Market Value

Upfront Premiums Paid/ (Received)

Unrealized Appreciation/ (Depreciation)

Morgan Stanley Capital Services LLC

USD

595

03/06/2042

2.804%

3 Month LIBOR

Semi-Annual/ Quarterly

$

(114,466

)

$

– 0

–

$

(114,466

)

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received	Payment Frequency	Current Notional (000)		Maturity Date		Unrealized Appreciation/ (Depreciation)
Pay Total Return on Reference Obligation
Morgan Stanley Capital Services LLC iBoxx $ Liquid High Yield Index	3 Month LIBOR	Maturity		USD   20,837		12/20/2021	$	25,579

52    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2021
HSBC Securities (USA), Inc.†		0.08	%		—	$	35,002,392
HSBC Securities (USA), Inc.†		0.08	%		—		26,126,916
HSBC Securities (USA), Inc.†		0.08	%		—		10,775,122
HSBC Securities (USA), Inc.†		0.08	%		—		8,627,476
HSBC Securities (USA), Inc.†		0.08	%		—		3,977,631
HSBC Securities (USA), Inc.†		0.12	%		—		10,339,797
JPMorgan Chase Bank†		0.12	%		—		30,124,869
JPMorgan Chase Bank†		0.12	%		—		28,235,376
JPMorgan Chase Bank†		0.12	%		—		8,672,106
						$	161,881,685

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2021.

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Inflation-Linked Securities	$	161,881,685	$	– 0 –	$	– 0 –	$	– 0 –	$	161,881,685

(a) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

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

(c) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $159,692,379 or 15.6% of net assets.

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

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

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

(g) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.21% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
GSF Series 2021-1, Class A1 1.433%, 08/15/2026		02/25/2021	$	172,261	$	171,416		0.02	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		360,693		358,198		0.04	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		41,063		40,726		0.00	%
HFX Funding Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		1,143,960		1,099,260		0.11	%
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.04%, 11/15/2026		11/16/2015		161,923		149,174		0.01	%

abfunds.com AB BOND INFLATION STRATEGY    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.438%, 02/27/2023		02/11/2000	$	276,765	$	276,765		0.03	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		89,000		91,213		0.01	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		363,153		6,566		0.00	%

(h) IO – Interest Only.

(i) Inverse interest only security.

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2021.

(m) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		12/30/2014	$	1,427,910	$	1,502,628		0.15	%

(n) Fair valued by the Adviser.

(o) Affiliated investments.

(p) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

EUR – Euro

MYR – Malaysian Ringgit

RUB – Russian Ruble

SEK – Swedish Krona

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

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

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

STIBOR – Stockholm Interbank Offered Rate

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

54    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,120,730,549)	$	1,157,483,939
Affiliated issuers (cost $47,432,507)		47,432,507
Cash		1,448,501
Cash collateral due from broker		11,618,471
Foreign currencies, at value (cost $153,689)		155,637
Receivable for capital stock sold		17,009,846
Interest receivable		2,761,297
Unrealized appreciation on inflation swaps		1,458,505
Market value on credit default swaps (net premiums paid $1,908,247)		1,148,875
Unrealized appreciation on forward currency exchange contracts		307,157
Receivable for investment securities sold		173,005
Unrealized appreciation on total return swaps		25,579
Affiliated dividends receivable		370
Total assets		1,241,023,689
Liabilities
Payable for reverse repurchase agreements		161,881,685
Payable for investment securities purchased		46,021,962
Market value on credit default swaps (net premiums received $1,297,950)		3,246,224
Cash collateral due to broker		2,228,000
Unrealized depreciation on forward currency exchange contracts		1,932,416
Payable for capital stock redeemed		524,040
Payable for variation margin on centrally cleared swaps		484,616
Advisory fee payable		263,765
Payable for variation margin on futures		156,563
Unrealized depreciation on interest rate swaps		114,466
Distribution fee payable		54,635
Administrative fee payable		35,130
Foreign capital gains tax payable		26,085
Transfer Agent fee payable		10,438
Directors’ fees payable		2,381
Accrued expenses		362,472
Total liabilities		217,344,878
Net Assets	$	1,023,678,811
Composition of Net Assets
Capital stock, at par	$	86,286
Additional paid-in capital		976,474,149
Distributable earnings		47,118,376
Net Assets	$	1,023,678,811

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    55

STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	54,687,141		4,567,084	$	11.97	*
C	$	12,914,723		1,110,758	$	11.63
Advisor	$	475,604,297		39,682,410	$	11.99
R	$	2,368,824		197,440	$	12.00
K	$	7,419,974		620,598	$	11.96
I	$	6,092,748		514,527	$	11.84
1	$	377,333,107		32,158,633	$	11.73
2	$	66,347,709		5,658,106	$	11.73
Z	$	20,910,288		1,776,823	$	11.77

* The maximum offering price per share for Class A shares was $12.50 which reflects a sales charge of 4.25%.

See notes to financial statements.

56    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest	$	37,677,341
Dividends
Unaffiliated issuers		7,908
Affiliated issuers		1,469		$	37,686,718
Expenses
Advisory fee (see Note B)		3,659,031
Distribution fee—Class A		92,576
Distribution fee—Class C		68,444
Distribution fee—Class R		11,980
Distribution fee—Class K		18,088
Distribution fee—Class 1		345,655
Transfer agency—Class A		42,124
Transfer agency—Class C		7,729
Transfer agency—Advisor Class		275,816
Transfer agency—Class R		6,230
Transfer agency—Class K		14,471
Transfer agency—Class I		6,489
Transfer agency—Class 1		35,000
Transfer agency—Class 2		6,372
Transfer agency—Class Z		3,259
Registration fees		210,272
Custody and accounting		182,014
Audit and tax		117,526
Administrative		104,020
Printing		57,390
Legal		36,314
Directors’ fees		27,531
Miscellaneous		29,596
Total expenses before interest expense		5,357,927
Interest expense		227,728
Total expenses		5,585,655
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,169,019	)
Net expenses					4,416,636
Net investment income					33,270,082

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    57

STATEMENT OF OPERATIONS (continued)

Year Ended October 31, 2021

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	16,691,774
Forward currency exchange contracts		(533,627	)
Futures		6,637,541
Options written		839,826
Swaps		(10,071,677	)
Swaptions written		467,008
Foreign currency transactions		79,958
Net change in unrealized appreciation/depreciation of:
Investments(b)		(6,152,702	)
Forward currency exchange contracts		(2,237,680	)
Futures		(304,492	)
Options written		(510,303	)
Swaps		13,389,261
Swaptions written		(51,621	)
Foreign currency denominated assets and liabilities		55,950
Net gain on investment and foreign currency transactions		18,299,216
Net Increase in Net Assets from Operations	$	51,569,298

(a) Net of foreign realized capital gains taxes of $829.

(b) Net of increase in accrued foreign capital gains taxes on unrealized gains of $1,890.

See notes to financial statements.

58    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase in Net Assets from Operations
Net investment income	$	33,270,082		$	14,427,948
Net realized gain on investment and foreign currency transactions		14,110,803			7,521,295
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		4,188,413			20,654,424
Net increase in net assets from operations		51,569,298			42,603,667
Distributions to Shareholders
Class A		(1,439,317	)		(649,771	)
Class C		(255,420	)		(50,256	)
Advisor Class		(11,236,851	)		(3,332,209	)
Class R		(74,773	)		(62,687	)
Class K		(278,001	)		(127,416	)
Class I		(241,543	)		(224,256	)
Class 1		(14,464,863	)		(7,448,238	)
Class 2		(2,649,431	)		(1,473,613	)
Class Z		(756,905	)		(502,262	)
Capital Stock Transactions
Net increase (decrease)		430,919,982			(98,268,014	)
Total increase (decrease)		451,092,176			(69,535,055	)
Net Assets
Beginning of period		572,586,635			642,121,690
End of period	$	1,023,678,811		$	572,586,635

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    59

STATEMENT OF CASH FLOWS

For the Year Ended October 31, 2021

Cash flows from operating activities
Net increase in net assets from operations				$	51,569,298
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(919,202,949	)
Purchases of short-term investments		(527,649,241	)
Proceeds from disposition of long-term investments		588,055,941
Proceeds from disposition of short-term investments		482,860,371
Net realized gain on investment transactions and foreign currency transactions		(14,110,803	)
Net realized loss on forward currency exchange contracts		(533,627	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(4,188,413	)
Net accretion of bond discount and amortization of bond premium		7,528,788
Inflation index adjustment		(29,505,553	)
Decrease in receivable for investments sold		6,709,056
Increase in interest receivable		(62,794	)
Increase in affiliated dividends receivable		(275	)
Decrease in cash collateral due from broker		2,609,200
Increase in payable for investments purchased		32,436,214
Increase in cash collateral due to broker		1,885,000
Increase in advisory fee payable		92,344
Increase in administrative fee payable		7,830
Increase in Foreign capital gains tax payable		26,085
Decrease in Transfer Agent fee payable		(1,836	)
Increase in distribution fee payable		15,931
Increase in Directors’ fee payable		209
Increase in accrued expenses		140,333
Payments on options written, net		(12,505	)
Payments on swaptions written, net		(169,112	)
Payments on swaps, net		(5,262,679	)
Proceeds for exchange-traded derivatives settlements, net		12,405,671
Total adjustments					(365,926,814	)
Net cash provided by (used in) operating activities					(314,357,516	)

See notes to financial statements.

60    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF CASH FLOWS (continued)

For the Year Ended October 31, 2021

Cash flows from financing activities
Subscriptions of capital stock, net	$	390,796,286
Cash dividends paid (net of dividend reinvestments)†		(6,250,820	)
Repayment of reverse repurchase agreements		(68,813,523	)
Net cash provided by (used in) financing activities				$	315,731,943
Effect of exchange rate on cash					135,908
Net increase in cash					1,510,335
Cash at beginning of year					93,803
Cash at end of year				$	1,604,138
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	25,146,284
Interest expense paid during the year	$	293,034

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in reverse repurchase agreements throughout the year.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    61

NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Bond Inflation Strategy Portfolio (the “Fund”), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, and Class 1 shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, Class 2 and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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

62    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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

abfunds.com AB BOND INFLATION STRATEGY    ^|    63

NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

64    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

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

abfunds.com AB BOND INFLATION STRATEGY    ^|    65

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2021:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Inflation-Linked Securities

$

– 0

–

$

840,681,006

$

– 0

–

$

840,681,006

Corporates – Investment Grade

– 0

–

116,010,468

– 0

–

116,010,468

Commercial Mortgage-Backed Securities

– 0

–

52,889,681

570,340

53,460,021

Collateralized Mortgage Obligations

– 0

–

40,175,372

– 0

–

40,175,372

Corporates – Non-Investment Grade

– 0

–

26,294,056

– 0

–

26,294,056

Asset-Backed Securities

– 0

–

18,465,387

2,044,244

20,509,631

Collateralized Loan Obligations

– 0

–

20,061,310

– 0

–

20,061,310

Mortgage Pass-Throughs

– 0

–

19,852,031

– 0

–

19,852,031

Emerging Markets – Corporate Bonds

– 0

–

5,056,437

– 0

–

5,056,437

Local Governments – US Municipal Bonds

– 0

–

4,668,074

– 0

–

4,668,074

Quasi-Sovereigns

– 0

–

3,174,037

– 0

–

3,174,037

Emerging Markets – Sovereigns

– 0

–

2,993,780

– 0

–

2,993,780

Governments – Treasuries

– 0

–

1,613,517

– 0

–

1,613,517

Common Stocks

– 0

–

– 0

–

1,502,628

1,502,628

Governments – Sovereign Bonds

– 0

–

1,431,571

– 0

–

1,431,571

Short-Term Investments

47,432,507

– 0

–

– 0

–

47,432,507

Total Investments in Securities

47,432,507

1,153,366,727

4,117,212

1,204,916,446

Other Financial Instruments(a):

Assets:

Futures

801,499

– 0

–

– 0

–

801,499

(b)

Forward Currency Exchange Contracts

– 0

–

307,157

– 0

–

307,157

Centrally Cleared Inflation (CPI) Swaps

– 0

–

14,256,845

– 0

–

14,256,845

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

822,294

– 0

–

822,294

(b)

Credit Default Swaps

– 0

–

1,148,875

– 0

–

1,148,875

Inflation (CPI) Swaps

– 0

–

1,458,505

– 0

–

1,458,505

Total Return Swaps

– 0

–

25,579

– 0

–

25,579

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Futures	$	(98,591	)	$	– 0	–	$	– 0	–	$	(98,591	)(b)
Forward Currency Exchange Contracts		– 0	–		(1,932,416	)		– 0	–		(1,932,416	)
Centrally Cleared Credit Default Swaps		– 0	–		(4,899,844	)		– 0	–		(4,899,844	)(b)
Centrally Cleared Inflation (CPI) Swaps		– 0	–		(5,608,865	)		– 0	–		(5,608,865	)(b)
Centrally Cleared Interest Rate Swaps		– 0	–		(2,402,765	)		– 0	–		(2,402,765	)(b)
Credit Default Swaps		– 0	–		(3,246,224	)		– 0	–		(3,246,224	)
Interest Rate Swaps		– 0	–		(114,466	)		– 0	–		(114,466	)
Reverse Repurchase Agreements		(161,881,685	)		– 0	–		– 0	–		(161,881,685	)
Total	$	(113,746,270	)	$	1,153,181,402		$	4,117,212		$	1,043,552,344

(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. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

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4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

5. Investment Income and Investment Transactions

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

The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from

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those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest), on an annual basis (“Expense Caps”) to .75%, 1.50%, .50%, 1.00%, .75%, .50%, .60%, .50% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2022 and then may be extended for additional one-year terms. For the year ended October 31, 2021, such reimbursement amounted to $1,162,153.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the reimbursement for such services amounted to $104,020.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $153,263 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $16,760 from the sale of Class A shares and received $22,542 and $831 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $6,866.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	2,644	$	510,265	$	465,476	$	47,433	$	1

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $312,902, $56,056, $58,026 and $1,583,324 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the

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Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	174,278,653	$	164,817,184
U.S. government securities		744,946,198		411,500,382

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,168,168,951
Gross unrealized appreciation	$	60,434,118
Gross unrealized depreciation		(16,850,054	)
Net unrealized appreciation	$	43,584,064

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, as described below under “Currency Transactions”.

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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.

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 year ended October 31, 2021, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract

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NOTES TO FINANCIAL STATEMENTS (continued)

and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium

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received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2021, the Fund held written options for hedging and non-hedging purposes.

During the year ended October 31, 2021, the Fund held written swaptions for hedging and non-hedging purposes.

• 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 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

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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 swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 year ended October 31, 2021, the Fund held interest rate swaps for hedging and non-hedging purposes.

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 year ended October 31, 2021, the Fund held inflation (CPI) swaps for hedging and non-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

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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 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 year ended October 31, 2021, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2021, the Fund held total return swaps for hedging and 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.

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During the year ended October 31, 2021, 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	$	801,499	*	Receivable/Payable for variation margin on futures	$	98,591	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		7,724	*	Receivable/Payable for variation margin on centrally cleared swaps		229,649	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		15,079,101	*	Receivable/Payable for variation margin on centrally cleared swaps		8,011,773	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		307,157		Unrealized depreciation on forward currency exchange contracts		1,932,416
Interest rate contracts					Unrealized depreciation on interest rate swaps		114,466
Interest rate contracts	Unrealized appreciation on inflation swaps		1,458,505
Credit contracts	Market value on credit default swaps		1,148,875		Market value on credit default swaps		3,246,224
Credit contracts	Unrealized appreciation on total return swaps		25,579
Total		$	18,828,440			$	13,633,119

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

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	6,637,541		$	(304,492	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(533,627	)		(2,237,680	)
Interest rate contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		839,826			(510,303	)
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		(169,112	)
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		636,120			(51,621	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(2,204,717	)		12,409,864
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(7,866,960	)		979,397
Total		$	(2,660,929	)	$	10,285,165

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The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Futures:
Average notional amount of buy contracts	$	29,871,775	(a)
Average notional amount of sale contracts	$	158,843,418
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	51,756,314
Average principal amount of sale contracts	$	103,490,358
Options Written:
Average notional amount	$	62,745,920	(b)
Swaptions Written:
Average notional amount	$	22,722,600	(c)
Interest Rate Swaps:
Average notional amount	$	595,000
Inflation Swaps:
Average notional amount	$	23,800,000
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	167,424,791
Centrally Cleared Inflation Swaps:
Average notional amount	$	287,960,000
Credit Default Swaps:
Average notional amount of buy contracts	$	14,069,308
Average notional amount of sale contracts	$	13,736,385
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	197,784,308
Total Return Swaps:
Average notional amount	$	20,860,000

(a) Positions were open for eleven months during the year.

(b) Positions were open for one month during the year.

(c) Positions were open for four months during the year.

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, 2021. Exchange-traded

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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/Citigroup Global Markets, Inc.	$	980,067	$	(923,345	)	$	(56,722	)	$	– 0	–	$	– 0	–
Deutsche Bank AG		274,561		(274,561	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		55,655		(55,655	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		1,482,644		(808,032	)		(674,612	)		– 0	–		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		114,593		(114,593	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank		336		– 0	–		– 0	–		– 0	–		336
State Street Bank & Trust Co.		32,260		(14,560	)		– 0	–		– 0	–		17,700
Total	$	2,940,116	$	(2,190,746	)	$	(731,334	)	$	– 0	–	$	18,036	^

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	$	655,943	$	– 0	–	$	– 0	–	$	– 0	–	$	655,943
Citibank, NA/Citigroup Global Markets, Inc.		923,345		(923,345	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		372,461		– 0	–		(260,000	)		(58,407	)		54,054
Deutsche Bank AG		709,355		(274,561	)		– 0	–		(338,838	)		95,956
Goldman Sachs Bank USA/Goldman Sachs International		1,285,055		(55,655	)		– 0	–		(1,229,400	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		808,032		(808,032	)		– 0	–		– 0	–		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		492,243		(114,593	)		(270,500	)		– 0	–		107,150
State Street Bank & Trust Co.		14,560		(14,560	)		– 0	–		– 0	–		– 0	–
UBS AG		32,112		– 0	–		– 0	–		– 0	–		32,112
Total	$	5,293,106	$	(2,190,746	)	$	(530,500	)	$	(1,626,645	)	$	945,215	^

82    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

* 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.

See Note D.3 for additional disclosure of netting arrangements regarding reverse repurchase agreements.

2. Currency Transactions

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

3. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2021, the average amount of reverse repurchase agreements outstanding was $201,615,300 and the daily weighted average interest rate was 0.09%. At October 31, 2021, the Fund had reverse repurchase agreements outstanding in the amount of $161,881,685 as reported on the statement of assets and liabilities.

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The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2021:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Securities (USA), Inc.	$	94,849,334	$	(94,849,334	)	$	– 0	–
JPMorgan Chase Bank		67,032,351		(67,032,351	)		– 0	–
Total	$	161,881,685	$	(161,881,685	)	$	– 0	–

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		2,978,479			1,261,189		$	35,571,322		$	14,062,730
Shares issued in reinvestment of dividends		90,410			43,961			1,077,553			495,138
Shares converted from Class C		37,706			14,046			448,061			156,235
Shares redeemed		(1,241,973	)		(2,126,950	)		(14,796,949	)		(23,152,124	)
Net increase (decrease)		1,864,622			(807,754	)	$	22,299,987		$	(8,438,021	)
Class C
Shares sold		910,217			187,777		$	10,556,717		$	2,049,635
Shares issued in reinvestment of dividends		18,764			3,364			217,682			37,161
Shares converted to Class A		(38,802	)		(14,427	)		(448,061	)		(156,235	)
Shares redeemed		(119,284	)		(81,140	)		(1,373,884	)		(868,047	)
Net increase		770,895			95,574		$	8,952,454		$	1,062,514
Advisor Class
Shares sold		32,633,289			5,506,776		$	390,487,358		$	60,921,189
Shares issued in reinvestment of dividends		752,032			253,528			8,980,280			2,856,501
Shares redeemed		(5,427,376	)		(9,408,756	)		(64,729,262	)		(103,456,299	)
Net increase (decrease)		27,957,945			(3,648,452	)	$	334,738,376		$	(39,678,609	)

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class R
Shares sold		75,262			77,780		$	896,690		$	845,022
Shares issued in reinvestment of dividends		6,268			4,957			74,772			55,751
Shares redeemed		(149,178	)		(457,340	)		(1,768,349	)		(4,996,719	)
Net decrease		(67,648	)		(374,603	)	$	(796,887	)	$	(4,095,946	)
Class K
Shares sold		275,029			289,515		$	3,257,866		$	3,233,235
Shares issued in reinvestment of dividends		23,367			11,291			278,000			127,416
Shares redeemed		(266,306	)		(174,841	)		(3,145,625	)		(1,884,738	)
Net increase		32,090			125,965		$	390,241		$	1,475,913
Class I
Shares sold		196,613			366,818		$	2,313,809		$	4,053,521
Shares issued in reinvestment of dividends		20,510			20,138			241,543			224,256
Shares redeemed		(427,976	)		(574,453	)		(5,005,518	)		(6,419,617	)
Net decrease		(210,853	)		(187,497	)	$	(2,450,166	)	$	(2,141,840	)
Class 1
Shares sold		8,538,149			4,785,245		$	99,794,546		$	52,219,913
Shares issued in reinvestment of dividends		943,670			515,381			11,024,083			5,712,290
Shares redeemed		(4,846,477	)		(7,432,024	)		(56,534,866	)		(80,548,968	)
Net increase (decrease)		4,635,342			(2,131,398	)	$	54,283,763		$	(22,616,765	)
Class 2
Shares sold		1,000,419			2,095,390		$	11,655,904		$	22,581,072
Share issued in reinvestment of dividends		214,040			115,965			2,498,675			1,284,697
Shares redeemed		(871,616	)		(2,363,445	)		(10,110,085	)		(25,251,716	)
Net increase (decrease)		342,843			(152,090	)	$	4,044,494		$	(1,385,947	)
Class Z
Shares sold		1,223,975			1,366,377		$	14,312,713		$	14,759,779
Share issued in reinvestment of dividends		64,293			45,824			753,696			501,842
Shares redeemed		(479,527	)		(3,464,375	)		(5,608,689	)		(37,710,934	)
Net increase (decrease)		808,741			(2,052,174	)	$	9,457,720		$	(22,449,313	)

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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. The current historically low interest rate environment heightens the risks associated with rising interest rates.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Fund invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be difficult to price or unwind and leveraged so that small changes may produce

86    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

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.

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

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

Leverage Risk—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.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk

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NOTES TO FINANCIAL STATEMENTS (continued)

may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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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.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	27,901,153	$	13,870,708
Net long-term capital gains		3,495,951		– 0	–
Total taxable distributions paid	$	31,397,104	$	13,870,708

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed capital gains	$	3,796,204	(a)
Unrealized appreciation/(depreciation)		43,631,840	(b)
Total accumulated earnings/(deficit)	$	47,428,044	(c)

(a) During the fiscal year, the Fund utilized $11,427,672 of capital loss carry forwards to offset current year net realized gains.

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NOTES TO FINANCIAL STATEMENTS (continued)

(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 passive foreign investment companies (PFICs), the tax treatment of Treasury inflation-protected securities, the tax treatment of swaps, the tax deferral of losses on wash sales, and the amortization on callable bonds.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2021, the Fund did not have any capital loss carryforwards.

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps resulted in a net increase in distributable earnings and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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.

90    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.56			$  10.95			$  10.47			$  10.83			$  10.92
Income From Investment Operations
Net investment income(a)(b)		.51			.25			.21			.28			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.35			.59			.52			(.38	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.86			.84			.73			(.10	)		.10
Less: Dividends and Distributions
Dividends from net investment income		(.45	)		(.23	)		(.24	)		(.26	)		(.19	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.45	)		(.23	)		(.25	)		(.26	)		(.19	)
Net asset value, end of period		$  11.97			$  11.56			$  10.95			$  10.47			$  10.83
Total Return
Total investment return based on net asset value(d)		7.63	%		7.64	%		7.00	%		(.99	)%		.91	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$54,687			$31,248			$38,422			$52,116			$27,718
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.78	%		.91	%		1.25	%		1.31	%		1.01	%
Expenses, before waivers/reimbursements(e)		1.00	%		1.18	%		1.51	%		1.56	%		1.34	%
Net investment income(b)		4.29	%		2.26	%		1.93	%		2.60	%		1.95	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

abfunds.com AB BOND INFLATION STRATEGY    ^|    91

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.25			$  10.67			$  10.24			$  10.61			$  10.71
Income From Investment Operations
Net investment income(a)(b)		.44			.18			.13			.19			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.31			.56			.49			(.37	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.75			.74			.62			(.18	)		.02
Less: Dividends
Dividends from net investment income		(.37	)		(.16	)		(.19	)		(.19	)		(.12	)
Net asset value, end of period		$  11.63			$  11.25			$  10.67			$  10.24			$  10.61
Total Return
Total investment return based on net asset value(d)		6.87	%		6.92	%		6.18	%		(1.77	)%		.16	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$12,915			$3,823			$2,607			$3,391			$3,627
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.53	%		1.64	%		1.99	%		2.03	%		1.76	%
Expenses, before waivers/reimbursements(e)		1.75	%		1.91	%		2.26	%		2.29	%		2.09	%
Net investment income(b)		3.79	%		1.62	%		1.28	%		1.77	%		1.26	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

92    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.57			$  10.96			$  10.49			$  10.84			$  10.93
Income From Investment Operations
Net investment income(a)(b)		.57			.27			.27			.30			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.33			.60			.48			(.37	)		(.13	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.90			.87			.75			(.07	)		.12
Less: Dividends and Distributions
Dividends from net investment income		(.48	)		(.26	)		(.27	)		(.28	)		(.21	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.48	)		(.26	)		(.28	)		(.28	)		(.21	)
Net asset value, end of period		$  11.99			$  11.57			$  10.96			$  10.49			$  10.84
Total Return
Total investment return based on net asset value(d)		7.98	%		7.93	%		7.21	%		(.68	)%		1.15	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$475,604			$135,677			$168,440			$150,011			$107,545
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.53	%		.66	%		.97	%		1.05	%		.77	%
Expenses, before waivers/reimbursements(e)		.74	%		.92	%		1.24	%		1.31	%		1.10	%
Net investment income(b)		4.76	%		2.44	%		2.47	%		2.80	%		2.31	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

abfunds.com AB BOND INFLATION STRATEGY    ^|    93

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.57			$  10.93			$  10.46			$  10.82			$  10.89
Income From Investment Operations
Net investment income(a)(b)		.45			.21			.20			.24			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.38			.62			.49			(.37	)		(.12	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.83			.83			.69			(.13	)		.09
Less: Dividends
Dividends from net investment income		(.40	)		(.19	)		(.22	)		(.23	)		(.16	)
Net asset value, end of period		$  12.00			$  11.57			$  10.93			$  10.46			$  10.82
Total Return
Total investment return based on net asset value(d)		7.44	%		7.61	%(f)		6.64	%		(1.15	)%		.80	%(f)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,369			$3,066			$6,992			$6,354			$5,364
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.04	%		1.21	%		1.47	%		1.54	%		1.29	%
Expenses, before waivers/reimbursements(e)		1.40	%		1.58	%		1.83	%		1.90	%		1.67	%
Net investment income(b)		3.74	%		1.88	%		1.88	%		2.24	%		2.08	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

94    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.54			$  10.92			$  10.45			$  10.81			$  10.89
Income From Investment Operations
Net investment income(a)(b)		.52			.27			.17			.27			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.34			.58			.54			(.38	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.86			.85			.71			(.11	)		.10
Less: Dividends and Distributions
Dividends from net investment income		(.44	)		(.23	)		(.23	)		(.25	)		(.18	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.44	)		(.23	)		(.24	)		(.25	)		(.18	)
Net asset value, end of period		$  11.96			$  11.54			$  10.92			$  10.45			$  10.81
Total Return
Total investment return based on net asset value(d)		7.64	%		7.74	%		6.88	%		(1.01	)%		.96	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$7,420			$6,790			$5,051			$12,055			$2,903
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.78	%		.89	%		1.27	%		1.35	%		1.01	%
Expenses, before waivers/reimbursements(e)		1.09	%		1.21	%		1.57	%		1.65	%		1.37	%
Net investment income(b)		4.34	%		2.40	%		1.61	%		2.57	%		1.95	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

abfunds.com AB BOND INFLATION STRATEGY    ^|    95

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.44			$  10.84			$  10.38			$  10.74			$  10.84
Income From Investment Operations
Net investment income(a)(b)		.51			.27			.25			.28			.24
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.37			.59			.49			(.36	)		(.12	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.88			.86			.74			(.08	)		.12
Less: Dividends and Distributions
Dividends from net investment income		(.48	)		(.26	)		(.27	)		(.28	)		(.22	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.48	)		(.26	)		(.28	)		(.28	)		(.22	)
Net asset value, end of period		$  11.84			$  11.44			$  10.84			$  10.38			$  10.74
Total Return
Total investment return based on net asset value(d)		7.88	%		7.97	%		7.23	%		(.73	)%		1.15	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,093			$8,297			$9,893			$5,688			$642
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.53	%		.65	%		.94	%		1.11	%		.76	%
Expenses, before waivers/reimbursements(e)		.74	%		.88	%		1.18	%		1.34	%		.99	%
Net investment income(b)		4.31	%		2.42	%		2.40	%		2.67	%		2.25	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

96    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.35			$  10.77			$  10.33			$  10.69			$  10.80
Income From Investment Operations
Net investment income(a)(b)		.52			.26			.24			.28			.22
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.34			.59			.48			(.36	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.86			.85			.72			(.08	)		.11
Less: Dividends and Distributions
Dividends from net investment income		(.48	)		(.27	)		(.27	)		(.28	)		(.22	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.48	)		(.27	)		(.28	)		(.28	)		(.22	)
Net asset value, end of period		$  11.73			$  11.35			$  10.77			$  10.33			$  10.69
Total Return
Total investment return based on net asset value(d)		7.77	%		7.84	%		7.18	%		(.77	)%(f)		1.01	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$377,333			$312,381			$319,282			$306,620			$274,366
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.63	%		.75	%		1.07	%		1.14	%		.86	%
Expenses, before waivers/reimbursements(e)		.75	%		.88	%		1.20	%		1.28	%		1.04	%
Net investment income(b)		4.44	%		2.42	%		2.31	%		2.66	%		2.10	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

abfunds.com AB BOND INFLATION STRATEGY    ^|    97

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.34			$  10.76			$  10.32			$  10.69			$  10.79
Income From Investment Operations
Net investment income(a)(b)		.53			.28			.26			.29			.24
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.35			.58			.48			(.37	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.88			.86			.74			(.08	)		.13
Less: Dividends and Distributions
Dividends from net investment income		(.49	)		(.28	)		(.29	)		(.29	)		(.23	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.49	)		(.28	)		(.30	)		(.29	)		(.23	)
Net asset value, end of period		$  11.73			$  11.34			$  10.76			$  10.32			$  10.69
Total Return
Total investment return based on net asset value(d)		7.98	%		7.96	%		7.19	%		(.77	)%		1.21	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$66,348			$60,289			$58,829			$50,705			$54,118
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.53	%		.65	%		.96	%		1.03	%		.76	%
Expenses, before waivers/reimbursements(e)		.65	%		.78	%		1.09	%		1.17	%		.94	%
Net investment income(b)		4.51	%		2.53	%		2.45	%		2.78	%		2.24	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

98    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.38			$  10.80			$  10.35			$  10.72			$  10.82
Income From Investment Operations
Net investment income(a)(b)		.56			.24			.27			.28			.24
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.32			.62			.47			(.36	)		(.11	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.88			.86			.74			(.08	)		.13
Less: Dividends and Distributions
Dividends from net investment income		(.49	)		(.28	)		(.28	)		(.29	)		(.23	)
Return of capital		– 0	–		– 0	–		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.49	)		(.28	)		(.29	)		(.29	)		(.23	)
Net asset value, end of period		$  11.77			$  11.38			$  10.80			$  10.35			$  10.72
Total Return
Total investment return based on net asset value(d)		7.94	%		7.92	%		7.26	%		(.77	)%		1.19	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$20,910			$11,016			$32,606			$26,142			$16,019
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.53	%		.67	%		.96	%		1.06	%		.76	%
Expenses, before waivers/reimbursements(e)		.65	%		.81	%		1.10	%		1.21	%		.94	%
Net investment income(b)		4.81	%		2.16	%		2.50	%		2.69	%		2.22	%
Portfolio turnover rate		62	%		48	%		40	%		36	%		42	%

See footnote summary on page 100.

abfunds.com AB BOND INFLATION STRATEGY    ^|    99

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

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

(e) The expense ratios presented below exclude interest expense:

	Year Ended October 31,
	2021			2020			2019			2018			2017
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		.97	%		1.01	%		1.02	%		1.01	%		1.07	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.72	%		1.77	%		1.77	%		1.76	%		1.82	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.72	%		.77	%		.77	%		.76	%		.83	%
Class R
Net of waivers/reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Before waivers/reimbursements		1.36	%		1.37	%		1.36	%		1.36	%		1.38	%
Class K
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.05	%		1.07	%		1.04	%		1.05	%		1.10	%
Class I
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.71	%		.73	%		.73	%		.73	%		.72	%
Class 1
Net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.72	%		.73	%		.73	%		.74	%		.77	%
Class 2
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.62	%		.63	%		.63	%		.64	%		.67	%
Class Z
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.62	%		.63	%		.64	%		.65	%		.68	%

(f) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

See notes to financial statements.

100    ^|    AB BOND INFLATION STRATEGY abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of AB Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statements of operations and cash flows or the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

abfunds.com AB BOND INFLATION STRATEGY    ^|    101

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2021

102    ^|    AB BOND INFLATION STRATEGY abfunds.com

2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2021. For foreign shareholders, 100% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

The Fund designates $3,495,951 of dividends paid as long-term capital gains dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

abfunds.com AB BOND INFLATION STRATEGY    ^|    103

BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Michael Canter⁽²⁾, Vice President Janaki Rao⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Multi-Sector Fixed-Income Team. Messrs. Canter and Rao are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Michael Canter 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Director of Securitized Assets and US Multi-Sector Fixed-Income.
Janaki Rao 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Bond Inflation Strategy (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution

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expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was above the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this

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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 and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously 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, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

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Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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AB BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

BIS-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB HIGH YIELD PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB High Yield Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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ANNUAL REPORT

December 9, 2021

This report provides management’s discussion of fund performance for the AB High Yield Portfolio for the annual reporting period ended October 31, 2021. Prior to April 30, 2021, the Fund was named AB FlexFee^TM High Yield Portfolio.

From February 26, 2018, through April 29, 2021, the Fund had a performance-based, or fulcrum, advisory fee. Accordingly, performance information shown during this period reflects performance fee adjustments and would have been different if the Fund had been managed under the current advisory fee arrangement. Class A and Class Z shares of the Fund were not in operation during this period. The Fund subsequently changed its fiscal year-end from December 31 to October 31.

The Fund’s investment objective is to seek to maximize total return consistent with prudent investment management.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	4 Months		6 Months		12 Months
AB HIGH YIELD PORTFOLIO
Class A Shares		0.46%		2.23%		—1
Advisor Class Shares2		0.54%		2.38%		13.42%
Class Z Shares2		0.54%		2.36%		—1
Primary Benchmark:3 Bloomberg US Corporate HY 2% Issuer Capped Index		0.71%		2.36%		10.53%
Markit iBoxx USD Liquid High Yield Index		0.35%		1.70%		9.07%

1 Recommencement of operations: 4/30/2021.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Effective April 30, 2021, the broad-based index used for comparison with the Fund’s performance has changed from the Markit iBoxx USD Liquid High Yield Index to the Bloomberg US Corporate HY 2% Issuer Capped Index in connection with the elimination of a performance (fulcrum) fee arrangement for the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg US Corporate High Yield (“HY”) 2% Issuer Capped Index, for the four-, six- and 12-month periods ended October 31, 2021. The table also includes the Markit iBoxx USD Liquid High Yield Index. Class A and Z shares recommenced operations on April 30, 2021; due to limited performance history, there is no discussion of performance for these share classes for the 12-month period.

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Advisor Class shares outperformed the primary benchmark during the 12-month period, before sales charges. Security selection drove outperformance, relative to the benchmark, as gains within energy, finance, basic industry and technology offset a loss in airlines. Industry allocation also contributed due to gains from the use of high-yield credit default swap and euro crossover derivatives, as well as underweights to consumer noncyclical and airlines, which were partially offset by an underweight to energy and exposure to US Treasuries. An overweight on the five-year part of the yield curve detracted. Currency decisions did not have a material impact on performance.

During the six-month period, Class A shares underperformed the benchmark, while Class Z performed in line and Advisor Class outperformed, before sales charges. Yield-curve positioning was a minor detractor. Industry allocation did not impact returns since gains within high-yield credit default swaps and interest rate swaps were offset by an underweight to energy. Security selection contributed the most, primarily within energy, consumer noncyclical and basic industry, offsetting a loss within consumer cyclical. Currency decisions had no material impact on performance.

In the four-month period, all share classes underperformed the benchmark, before sales charges. Yield-curve positioning detracted the most, from an overweight to the five-year part of the curve. An underweight to energy also detracted at the industry allocation level. Currency decisions were a minor detractor. Security selection within energy, electric, basic industry and consumer noncyclical contributed, while selection within consumer cyclical detracted.

During all periods, the Fund utilized derivatives in the form of futures to hedge duration and interest-rate risk, and interest rate swaps to hedge duration risk. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used to take active exposure as well as to hedge investment-grade and high-yield credit risk taken through cash bonds. Total return swaps were used to create synthetic high-yield exposure.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada, and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone, and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the

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high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially commercial mortgage-backed securities. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek to maximize total return, utilizing a high-yield strategy with a global, multi-sector approach. The Team invests in corporate bonds from US and non-US issuers, and government bonds from developed and emerging markets, primarily focusing on lower-rated bonds (“junk bonds”), although it may also invest in investment-grade bonds.

INVESTMENT POLICIES

At least 80% of the Fund’s net assets will, under normal circumstances, be invested in fixed-income securities rated Ba1 or lower by Moody’s Investors Service or BB+ or lower by S&P Global Ratings or Fitch Ratings (commonly known as “junk bonds”), unrated securities considered by the Adviser to be of comparable quality, and related derivatives. The Fund may invest in fixed-income securities with a range of maturities from short- to long-term. The Fund may also invest in equity securities.

In selecting securities for purchase or sale by the Fund, the Adviser attempts to take advantage of inefficiencies that it believes exist in the global debt markets. These inefficiencies arise from investor behavior, market complexity, and the investment limitations to which investors are subject. The Adviser combines quantitative analysis with fundamental credit and economic research in seeking to exploit these inefficiencies.

The Fund will most often invest in securities of US issuers, but may also purchase fixed-income securities of foreign issuers, including securities denominated in foreign currencies and securities of emerging-market issuers. The Adviser may or may not hedge any foreign currency exposure through the use of currency-related derivatives.

The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps, to a significant extent. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way

(continued on next page)

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to alter the Fund’s exposure. The Fund may, for example, use credit default and interest rate swaps to gain exposure to the fixed-income markets or particular fixed-income securities and, as noted above, may use currency-related derivatives. The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure substantially in excess of the Fund’s net assets.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Corporate HY 2% Issuer Capped Index and the Markit iBoxx USD Liquid High Yield Index are unmanaged and do not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Corporate HY 2% Issuer Capped Index is the 2% Issuer Capped component of the US Corporate High Yield Index, which represents the performance of fixed-income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million and at least one year to maturity. The Markit iBoxx USD Liquid High Yield Index consists of USD high-yield bond issues with more than $400 million outstanding, selected to provide a balanced representation of the broad USD high-yield liquid corporate bond universe. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond or stock market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price

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DISCLOSURES AND RISKS (continued)

volatility, due to such factors as specific corporate developments, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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: 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.

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 rates may negatively affect the value of the Fund’s investments in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns.

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DISCLOSURES AND RISKS (continued)

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

Performance information prior to July 26, 2016 shown in this report reflects the historical performance of the AB High-Yield Portfolio, a series of The AB Pooling Portfolios (the “Accounting Survivor”). Upon completion of a reorganization of the Accounting Survivor into the Fund on July 26, 2016 (the “Reorganization”), Class Z shares of the Fund assumed the performance and financial history of the Accounting Survivor. Because the Fund has higher expenses than the Accounting Survivor had, the Accounting Survivor’s performance would have been lower than that shown had it operated with the Fund’s current expense levels. At the time of the Reorganization, the Accounting Survivor and the Fund had substantially similar investment objectives and strategies.

From February 26, 2018 through April 29, 2021, the Fund had a performance-based, or fulcrum, advisory fee. Accordingly, performance information shown during this period reflects

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DISCLOSURES AND RISKS (continued)

performance fee adjustments and would have been different if the Fund had been managed under the current advisory fee arrangement. Class A and Class Z shares of the Fund were not in operation during this period.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB High Yield Portfolio Advisor Class shares (from 10/31/2011 to 10/31/2021) as compared to the performance of the Fund’s current and previous benchmarks. The chart assumes the reinvestment of dividends and capital gains distributions.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.05%
Since Recommencement of Operations2		2.23%		-2.09%
ADVISOR CLASS SHARES3						2.39%
1 Year		13.42%		13.42%
5 Years		6.88%		6.88%
10 Years		7.22%		7.22%
CLASS Z SHARES3						2.55%
Since Recommencement of Operations2		2.36%		2.36%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 2.27%, 2.02% and 1.93% for Class A, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) to 0.85%, 0.60% and 0.60% for Class A, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before April 30, 2022. Any fees waived and expenses borne by the Adviser through December 31, 2019 under the expense limitation in effect prior to that date may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total other expenses to exceed the expense limitation for Advisor Class shares in effect (1) at the time of the waiver or reimbursement or (2) at the time of recapture. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratio shown above may differ from the expense ratio in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Recommencement of operations date: 4/30/2021.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
Since Recommencement of Operations1		-1.95%
ADVISOR CLASS SHARES2
1 Year		13.89%
5 Years		6.97%
10 Years		7.81%
CLASS Z SHARES2
Since Recommencement of Operations1		2.48%

1 Recommencement of operations date: 4/30/2021.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value 5/1/2021		Ending Account Value 10/31/2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,022.30	$	4.33		0.85	%
Hypothetical**	$	1,000	$	1,020.92	$	4.33		0.85	%
Advisor Class
Actual	$	1,000	$	1,023.80	$	3.06		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%
Class Z
Actual	$	1,000	$	1,023.60	$	3.06		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%

* Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $63.8

1 All data are as of October 31, 2021. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” represents less than 0.1% weightings in the following security types: Emerging Markets—Treasuries, Rights and Warrants.

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PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
CORPORATES - NON-INVESTMENT GRADE – 79.0%
Industrial – 71.0%
Basic – 4.2%
Advanced Drainage Systems, Inc. 5.00%, 09/30/2027(a)	U.S.$		28	$	29,151
Arconic Corp. 6.125%, 02/15/2028(a)			11		11,606
Axalta Coating Systems LLC 3.375%, 02/15/2029(a)			150		142,715
Big River Steel LLC/BRS Finance Corp. 6.625%, 01/31/2029(a)			16		17,390
Cleveland-Cliffs, Inc. 4.625%, 03/01/2029(a)			6		6,217
4.875%, 03/01/2031(a)			4		4,169
9.875%, 10/17/2025(a)			118		135,043
Commercial Metals Co. 4.875%, 05/15/2023			50		51,885
5.375%, 07/15/2027			45		47,113
CVR Partners LP/CVR Nitrogen Finance Corp. 6.125%, 06/15/2028(a)			29		30,026
Diamond BC BV 4.625%, 10/01/2029(a)			27		27,313
ERP Iron Ore, LLC 9.039%, 12/31/2019(b)(c)(d)(e)(f)			5		3,791
FMG Resources (August 2006) Pty Ltd. 4.375%, 04/01/2031(a)			178		180,897
Freeport-McMoRan, Inc. 5.25%, 09/01/2029			104		113,693
5.40%, 11/14/2034			99		120,909
Glatfelter Corp. 4.75%, 11/15/2029(a)			84		85,574
Graham Packaging Co., Inc. 7.125%, 08/15/2028(a)			10		10,288
Graphic Packaging International LLC 4.75%, 07/15/2027(a)			28		30,307
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. 9.00%, 07/01/2028(a)			37		40,089
INEOS Styrolution Group GmbH 2.25%, 01/16/2027(a)	EUR		100		112,503
Ingevity Corp. 3.875%, 11/01/2028(a)	U.S.$		131		128,862
Intelligent Packaging Holdco Issuer LP 9.00% (9.00% Cash or 9.75% PIK), 01/15/2026(a)(f)			39		41,055
Joseph T Ryerson & Son, Inc. 8.50%, 08/01/2028(a)			48		53,608

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Kleopatra Finco SARL 4.25%, 03/01/2026(a)	EUR		100		$	110,882
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(b)(c)(d)(e)(g)	U.S.$		60			– 0	–
Mercer International, Inc. 5.125%, 02/01/2029			11			10,936
NOVA Chemicals Corp. 5.25%, 06/01/2027(a)			54			56,706
Olin Corp. 5.625%, 08/01/2029			57			62,332
Pactiv Evergreen Group Issuer Inc/Pactiv Evergreen Group Issuer LLC/Reynolds Gro 4.00%, 10/15/2027(a)			147			143,796
Peabody Energy Corp. 6.00%, 03/31/2022(a)			0	**		243
6.375%, 03/31/2025(a)			30			27,313
8.50% (6.00% Cash and 2.50% PIK), 12/31/2024(a)(f)			42			39,958
PIC AU Holdings LLC/PIC AU Holdings Corp. 10.00%, 12/31/2024(a)			46			47,035
Roller Bearing Co. of America, Inc. 4.375%, 10/15/2029(a)			21			21,413
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(a)			231			233,491
Sealed Air Corp. 5.25%, 04/01/2023(a)			35			36,567
5.50%, 09/15/2025(a)			33			36,455
SPCM SA 3.375%, 03/15/2030(a)			200			196,620
TPC Group, Inc. 10.50%, 08/01/2024(a)			24			21,746
Unifrax Escrow Issuer Corp. 5.25%, 09/30/2028(a)			20			20,009
7.50%, 09/30/2029(a)			17			16,902
Valvoline, Inc. 4.25%, 02/15/2030(a)			133			134,996
WR Grace Holdings LLC 5.625%, 08/15/2029(a)			48			48,405
						2,690,009
Capital Goods – 5.4%
ARD Finance SA 5.00% (5.00% Cash or 5.75% PIK), 06/30/2027(a)(f)	EUR		120			142,613
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 3.25%, 09/01/2028(a)	U.S.$		200			195,250

16    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a)	U.S.$		200	$	204,050
5.25%, 08/15/2027(a)			200		199,000
Ball Corp. 2.875%, 08/15/2030			222		213,296
Bombardier, Inc. 6.00%, 02/15/2028(a)			85		85,737
7.50%, 12/01/2024-03/15/2025(a)			151		156,014
7.875%, 04/15/2027(a)			10		10,400
Clean Harbors, Inc. 4.875%, 07/15/2027(a)			73		76,272
5.125%, 07/15/2029(a)			11		11,967
Colfax Corp. 6.375%, 02/15/2026(a)			9		9,383
Crown Cork & Seal Co., Inc. 7.375%, 12/15/2026			20		24,585
Energizer Holdings, Inc. 4.375%, 03/31/2029(a)			74		70,902
EnerSys 4.375%, 12/15/2027(a)			80		84,004
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			162		167,468
GFL Environmental, Inc. 3.50%, 09/01/2028(a)			140		139,396
4.00%, 08/01/2028(a)			120		117,200
Granite US Holdings Corp. 11.00%, 10/01/2027(a)			18		19,722
Griffon Corp. 5.75%, 03/01/2028			3		3,137
JELD-WEN, Inc. 4.625%, 12/15/2025(a)			6		6,069
LSB Industries, Inc. 6.25%, 10/15/2028(a)			44		44,463
Madison IAQ LLC 5.875%, 06/30/2029(a)			37		36,717
Mueller Water Products, Inc. 4.00%, 06/15/2029(a)			13		13,244
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		119,680
Stevens Holding Co., Inc. 6.125%, 10/01/2026(a)	U.S.$		20		21,614
Tervita Corp. 11.00%, 12/01/2025(a)			105		120,526
TransDigm, Inc. 4.625%, 01/15/2029			16		15,898
4.875%, 05/01/2029			84		84,280

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.25%, 03/15/2026(a)	U.S.$		362	$	378,124
6.375%, 06/15/2026			27		27,935
8.00%, 12/15/2025(a)			61		64,882
Triumph Group, Inc. 6.25%, 09/15/2024(a)			23		22,977
7.75%, 08/15/2025			23		23,376
8.875%, 06/01/2024(a)			213		234,709
Trivium Packaging Finance BV 3.75%, 08/15/2026(a)	EUR		100		116,235
Wesco Distribution, Inc. 7.125%, 06/15/2025(a)	U.S.$		91		96,810
7.25%, 06/15/2028(a)			107		118,130
					3,476,065
Communications - Media – 9.3%
Advantage Sales & Marketing, Inc. 6.50%, 11/15/2028(a)			125		130,407
Altice Financing SA 5.00%, 01/15/2028(a)			378		363,747
AMC Networks, Inc. 4.25%, 02/15/2029			133		131,057
Arches Buyer, Inc. 6.125%, 12/01/2028(a)			8		8,090
Cable One, Inc. 4.00%, 11/15/2030(a)			102		100,270
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 02/01/2031-01/15/2034(a)			397		386,546
4.50%, 08/15/2030-06/01/2033(a)			288		292,013
4.75%, 03/01/2030(a)			40		41,345
5.00%, 02/01/2028(a)			193		200,718
5.125%, 05/01/2027(a)			295		306,033
Clear Channel Worldwide Holdings, Inc. 5.125%, 08/15/2027(a)			197		202,174
CSC Holdings LLC 3.375%, 02/15/2031(a)			208		189,376
4.625%, 12/01/2030(a)			316		289,600
7.50%, 04/01/2028(a)			200		213,664
DISH DBS Corp. 5.125%, 06/01/2029			34		32,744
5.875%, 07/15/2022-11/15/2024			201		209,774
7.75%, 07/01/2026			101		112,421
DISH Network Corp. 3.375%, 08/15/2026(h)			27		27,540
Gray Escrow II, Inc. 5.375%, 11/15/2031(a)			179		181,033
iHeartCommunications, Inc. 5.25%, 08/15/2027(a)			37		37,874

18    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.375%, 05/01/2026	U.S.$		5	$	5,348
8.375%, 05/01/2027			40		42,868
Lamar Media Corp. 4.875%, 01/15/2029			8		8,393
Liberty Interactive LLC 8.25%, 02/01/2030			279		304,475
Mav Acquisition Corp. 5.75%, 08/01/2028(a)			91		89,403
8.00%, 08/01/2029(a)			60		58,350
Meredith Corp. 6.875%, 02/01/2026			149		154,457
National CineMedia LLC 5.75%, 08/15/2026			21		16,633
5.875%, 04/15/2028(a)			60		55,605
Scripps Escrow II, Inc. 3.875%, 01/15/2029(a)			121		120,907
5.375%, 01/15/2031(a)			18		17,649
Sinclair Television Group, Inc. 4.125%, 12/01/2030(a)			44		41,928
5.125%, 02/15/2027(a)			9		8,677
5.50%, 03/01/2030(a)			153		146,316
Sirius XM Radio, Inc. 3.875%, 09/01/2031(a)			76		73,064
4.00%, 07/15/2028(a)			135		135,909
4.125%, 07/01/2030(a)			111		110,506
5.50%, 07/01/2029(a)			82		88,499
Summer BC Holdco B SARL 5.75%, 10/31/2026(a)	EUR		100		120,731
TEGNA, Inc. 5.00%, 09/15/2029	U.S.$		177		179,272
Univision Communications, Inc. 4.50%, 05/01/2029(a)			19		19,213
6.625%, 06/01/2027(a)			203		219,697
9.50%, 05/01/2025(a)			10		10,864
Urban One, Inc. 7.375%, 02/01/2028(a)			54		56,713
Virgin Media Secured Finance PLC 5.50%, 05/15/2029(a)			200		210,649
Ziggo BV 5.50%, 01/15/2027(a)			150		154,706
					5,907,258
Communications - Telecommunications – 4.8%
Altice France SA/France 5.125%, 07/15/2029(a)			402		391,225
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(a)			200		206,750

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Embarq Corp. 7.995%, 06/01/2036	U.S.$		185	$	204,529
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			43		44,548
Hughes Satellite Systems Corp. 6.625%, 08/01/2026			125		141,678
Iliad Holding SAS 7.00%, 10/15/2028(a)			200		206,466
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(d)(i)			158		79,819
8.50%, 10/15/2024(a)(d)(i)			47		24,373
Level 3 Financing, Inc. 3.75%, 07/15/2029(a)			66		62,393
4.25%, 07/01/2028(a)			134		132,693
Lumen Technologies, Inc. 4.50%, 01/15/2029(a)			238		229,918
Series G 6.875%, 01/15/2028			65		72,360
Nexstar Broadcasting, Inc. 5.625%, 07/15/2027(a)			118		124,455
Sprint Capital Corp. 8.75%, 03/15/2032			321		479,146
Sprint Communications, Inc. 6.00%, 11/15/2022			38		39,857
Sprint Corp. 7.875%, 09/15/2023			73		81,039
Switch Ltd. 4.125%, 06/15/2029(a)			87		87,621
Telecom Italia Capital SA 6.375%, 11/15/2033			90		104,301
Telesat Canada/Telesat LLC 6.50%, 10/15/2027(a)			30		24,357
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(a)			200		201,388
Zayo Group Holdings, Inc. 6.125%, 03/01/2028(a)			141		137,768
Zayo Group LLC/Zayo Capital, Inc. 5.75%, 01/15/2027(a)			1		886
					3,077,570
Consumer Cyclical - Automotive – 3.8%
Adient US LLC 9.00%, 04/15/2025(a)			26		27,862
Allison Transmission, Inc. 3.75%, 01/30/2031(a)			112		107,640
5.875%, 06/01/2029(a)			30		32,340
Clarios Global LP/Clarios US Finance Co. 6.25%, 05/15/2026(a)			103		107,769

20    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
8.50%, 05/15/2027(a)	U.S.$		59	$	62,705
Dana, Inc. 4.25%, 09/01/2030			20		20,234
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(a)			26		27,174
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(b)(c)(d)(g)			32		– 0	–
(First Lien) 11.00%, 10/31/2024(b)(c)(d)(g)			13		– 0	–
Ford Motor Co. 8.50%, 04/21/2023			128		140,262
9.00%, 04/22/2025			36		43,294
Ford Motor Credit Co. LLC 2.70%, 08/10/2026			200		199,381
3.096%, 05/04/2023			221		225,223
3.219%, 01/09/2022			221		221,676
4.00%, 11/13/2030			200		208,821
Goodyear Tire & Rubber Co. (The) 5.00%, 07/15/2029(a)			135		142,386
5.25%, 07/15/2031(a)			36		38,282
Jaguar Land Rover Automotive PLC 5.875%, 11/15/2024(a)	EUR		100		123,692
6.875%, 11/15/2026(a)			100		128,875
Mclaren Finance PLC 7.50%, 08/01/2026(a)	U.S.$		200		200,043
Meritor, Inc. 4.50%, 12/15/2028(a)			21		20,990
6.25%, 06/01/2025(a)			8		8,390
PM General Purchaser LLC 9.50%, 10/01/2028(a)			90		93,852
Real Hero Merger Sub 2, Inc. 6.25%, 02/01/2029(a)			12		12,319
Tenneco, Inc. 5.00%, 07/15/2026			25		24,379
5.125%, 04/15/2029(a)			76		75,314
7.875%, 01/15/2029(a)			35		38,267
Titan International, Inc. 7.00%, 04/30/2028(a)			60		61,710
					2,392,880
Consumer Cyclical - Entertainment – 4.5%
Boyne USA, Inc. 4.75%, 05/15/2029(a)			26		26,669
Carnival Corp. 4.00%, 08/01/2028(a)			67		66,749
5.75%, 03/01/2027(a)			195		198,412
9.875%, 08/01/2027(a)			28		32,340

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
10.50%, 02/01/2026(a)	U.S.$		260	$	302,120
Cedar Fair LP 5.25%, 07/15/2029			15		15,545
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp. 5.375%, 06/01/2024			70		70,614
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.375%, 04/15/2027			64		65,934
5.50%, 05/01/2025(a)			192		199,677
Cinemark USA, Inc. 5.25%, 07/15/2028(a)			151		147,389
Mattel, Inc. 3.375%, 04/01/2026(a)			78		80,413
3.75%, 04/01/2029(a)			98		101,828
5.875%, 12/15/2027(a)			100		107,704
NCL Corp., Ltd. 3.625%, 12/15/2024(a)			79		74,892
5.875%, 03/15/2026(a)			24		24,098
10.25%, 02/01/2026(a)			107		122,863
Royal Caribbean Cruises Ltd. 5.25%, 11/15/2022			61		62,667
5.50%, 08/31/2026-04/01/2028(a)			222		224,958
10.875%, 06/01/2023(a)			138		153,870
11.50%, 06/01/2025(a)			74		84,082
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(a)			33		35,345
Six Flags Entertainment Corp. 4.875%, 07/31/2024(a)			117		118,420
Six Flags Theme Parks, Inc. 7.00%, 07/01/2025(a)			125		132,940
Vail Resorts, Inc. 6.25%, 05/15/2025(a)			167		175,992
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			16		15,516
7.00%, 02/15/2029(a)			79		79,338
13.00%, 05/15/2025(a)			48		55,032
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			29		28,885
VOC Escrow Ltd. 5.00%, 02/15/2028(a)			69		68,627
					2,872,919
Consumer Cyclical - Other – 3.9%
Adams Homes, Inc. 7.50%, 02/15/2025(a)			58		60,651
Beazer Homes USA, Inc. 6.75%, 03/15/2025			28		29,143

22    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Boyd Gaming Corp. 8.625%, 06/01/2025(a)	U.S.$		20	$	21,632
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 4.875%, 02/15/2030(a)			67		67,199
6.25%, 09/15/2027(a)			151		157,604
Caesars Entertainment, Inc. 4.625%, 10/15/2029(a)			73		73,436
6.25%, 07/01/2025(a)			138		145,261
Churchill Downs, Inc. 4.75%, 01/15/2028(a)			148		153,654
CP Atlas Buyer, Inc. 7.00%, 12/01/2028(a)			26		25,153
Empire Communities Corp. 7.00%, 12/15/2025(a)			61		63,473
Everi Holdings, Inc. 5.00%, 07/15/2029(a)			21		21,506
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			91		94,822
Forestar Group, Inc. 3.85%, 05/15/2026(a)			41		41,014
Hilton Domestic Operating Co., Inc. 3.625%, 02/15/2032(a)			100		97,643
4.875%, 01/15/2030			17		18,157
5.375%, 05/01/2025(a)			40		41,737
5.75%, 05/01/2028(a)			11		11,819
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)			37		36,884
5.00%, 06/01/2029(a)			52		53,067
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. 6.125%, 12/01/2024			28		28,957
Installed Building Products, Inc. 5.75%, 02/01/2028(a)			40		41,980
Mattamy Group Corp. 4.625%, 03/01/2030(a)			58		58,868
MGM Resorts International 6.00%, 03/15/2023			33		34,875
7.75%, 03/15/2022			16		16,376
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. 5.625%, 09/01/2029(a)			46		46,862
5.875%, 09/01/2031(a)			46		46,921
Scientific Games International, Inc. 7.00%, 05/15/2028(a)			9		9,722

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 04/01/2029(a)	U.S.$		20	$	20,186
Standard Industries, Inc./NJ 3.375%, 01/15/2031(a)			250		231,996
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(a)			16		15,872
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(a)			54		60,614
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc. 5.625%, 03/01/2024(a)			17		18,703
5.875%, 04/15/2023(a)			8		8,340
Travel + Leisure Co. 4.625%, 03/01/2030(a)			12		12,442
6.625%, 07/31/2026(a)			233		260,115
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a)			4		4,052
5.50%, 03/01/2025(a)			236		240,100
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/2029(a)			86		86,473
7.75%, 04/15/2025(a)			48		50,573
					2,507,882
Consumer Cyclical - Restaurants – 0.9%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(a)			146		141,477
4.00%, 10/15/2030(a)			173		167,827
5.75%, 04/15/2025(a)			66		68,823
IRB Holding Corp. 6.75%, 02/15/2026(a)			12		12,281
7.00%, 06/15/2025(a)			5		5,297
Papa John’s International, Inc. 3.875%, 09/15/2029(a)			54		52,793
Yum! Brands, Inc. 4.625%, 01/31/2032			140		145,978
					594,476
Consumer Cyclical - Retailers – 3.7%
Arko Corp. 5.125%, 11/15/2029(a)			99		96,529
Bath & Body Works, Inc. 5.25%, 02/01/2028			20		21,580
6.625%, 10/01/2030(a)			185		207,018
6.75%, 07/01/2036			48		57,652
6.875%, 11/01/2035			128		155,476

24    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
7.50%, 06/15/2029	U.S.$		17	$	19,208
BCPE Ulysses Intermediate, Inc. 7.75% (7.75% Cash or 8.50% PIK), 04/01/2027(a)(f)			28		26,843
Dufry One BV 2.50%, 10/15/2024(a)	EUR		103		117,329
Foundation Building Materials, Inc. 6.00%, 03/01/2029(a)	U.S.$		29		28,080
Gap, Inc. (The) 3.625%, 10/01/2029(a)			49		48,057
3.875%, 10/01/2031(a)			33		32,375
Group 1 Automotive, Inc. 4.00%, 08/15/2028(a)			13		13,001
Hanesbrands, Inc. 4.625%, 05/15/2024(a)			191		199,693
5.375%, 05/15/2025(a)			25		26,038
LBM Acquisition LLC 6.25%, 01/15/2029(a)			14		13,589
Levi Strauss & Co. 3.50%, 03/01/2031(a)			139		140,781
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)			62		62,671
7.875%, 05/01/2029(a)			58		58,763
Murphy Oil USA, Inc. 3.75%, 02/15/2031(a)			125		123,171
5.625%, 05/01/2027			2		2,431
NMG Holding Co., Inc./Neiman Marcus Group LLC 7.125%, 04/01/2026(a)			27		28,353
Party City Holdings, Inc. 8.75%, 02/15/2026(a)			20		20,504
Rite Aid Corp. 7.50%, 07/01/2025(a)			22		22,110
8.00%, 11/15/2026(a)			263		265,499
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a)			84		87,477
SRS Distribution, Inc. 6.125%, 07/01/2029(a)			19		19,544
Staples, Inc. 7.50%, 04/15/2026(a)			112		113,426
10.75%, 04/15/2027(a)			61		58,231
TPro Acquisition Corp. 11.00%, 10/15/2024(a)			33		35,929
White Cap Buyer LLC 6.875%, 10/15/2028(a)			19		19,643

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
William Carter Co. (The) 5.50%, 05/15/2025(a)	U.S.$		25	$	26,159
5.625%, 03/15/2027(a)			119		123,461
Wolverine World Wide, Inc. 4.00%, 08/15/2029(a)			73		72,055
					2,342,676
Consumer Non-Cyclical – 9.8%
AdaptHealth LLC 4.625%, 08/01/2029(a)			121		119,840
AHP Health Partners, Inc. 5.75%, 07/15/2029(a)			53		53,238
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(a)			326		321,283
4.875%, 02/15/2030(a)			100		107,173
5.75%, 03/15/2025			11		11,158
Bausch Health Americas, Inc. 8.50%, 01/31/2027(a)			59		62,783
Bausch Health Cos., Inc. 4.875%, 06/01/2028(a)			196		201,827
5.75%, 08/15/2027(a)			85		89,027
6.125%, 04/15/2025(a)			36		36,692
9.00%, 12/15/2025(a)			103		108,096
Catalent Pharma Solutions, Inc. 3.125%, 02/15/2029(a)			50		48,804
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(a)			78		82,614
Charles River Laboratories International, Inc. 3.75%, 03/15/2029(a)			42		42,422
4.00%, 03/15/2031(a)			151		156,258
Chobani LLC/Chobani Finance Corp., Inc. 4.625%, 11/15/2028(a)			24		24,618
CHS/Community Health Systems, Inc. 4.75%, 02/15/2031(a)			20		20,001
5.625%, 03/15/2027(a)			17		17,794
6.00%, 01/15/2029(a)			14		14,806
6.625%, 02/15/2025(a)			52		54,280
6.875%, 04/01/2028-04/15/2029(a)			264		259,336
DaVita, Inc. 3.75%, 02/15/2031(a)			155		146,925
4.625%, 06/01/2030(a)			132		132,754
Elanco Animal Health, Inc. 5.90%, 08/28/2028			120		140,174
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)			122		117,685
Encompass Health Corp. 5.75%, 09/15/2025			30		30,733

26    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Endo Luxembourg Finance Co. I SARL/Endo US, Inc. 6.125%, 04/01/2029(a)	U.S.$		48	$	47,323
Grifols Escrow Issuer SA 4.75%, 10/15/2028(a)			200		203,209
Horizon Therapeutics USA, Inc. 5.50%, 08/01/2027(a)			200		211,645
IQVIA, Inc. 2.25%, 03/15/2029(a)	EUR		100		114,495
5.00%, 05/15/2027(a)	U.S.$		207		214,592
Kronos Acquisition Holdings, Inc./KIK Custom Products, Inc. 7.00%, 12/31/2027(a)			143		137,606
Lamb Weston Holdings, Inc. 4.125%, 01/31/2030(a)			99		99,116
4.375%, 01/31/2032(a)			46		46,062
4.875%, 05/15/2028(a)			80		85,870
Legacy LifePoint Health LLC 6.75%, 04/15/2025(a)			20		21,000
LifePoint Health, Inc. 5.375%, 01/15/2029(a)			217		212,788
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5.50%, 04/15/2025(a)(d)(i)			10		4,716
MEDNAX, Inc. 6.25%, 01/15/2027(a)			119		124,914
ModivCare Escrow Issuer, Inc. 5.00%, 10/01/2029(a)			35		35,598
ModivCare, Inc. 5.875%, 11/15/2025(a)			24		25,218
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(a)			164		163,212
5.25%, 10/01/2029(a)			288		292,719
Newell Brands, Inc. 4.35%, 04/01/2023			25		26,052
4.70%, 04/01/2026			94		102,968
4.875%, 06/01/2025			12		13,139
Nidda Healthcare Holding GmbH 3.50%, 09/30/2024(a)	EUR		100		113,804
Option Care Health, Inc. 4.375%, 10/31/2029(a)	U.S.$		120		121,177
Par Pharmaceutical, Inc. 7.50%, 04/01/2027(a)			40		40,354
Paysafe Finance PLC/Paysafe Holdings US Corp. 4.00%, 06/15/2029(a)			67		63,818

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Performance Food Group, Inc. 4.25%, 08/01/2029(a)	U.S.$		75	$	75,103
Post Holdings, Inc. 4.50%, 09/15/2031(a)			40		39,260
4.625%, 04/15/2030(a)			58		58,348
5.50%, 12/15/2029(a)			100		106,353
5.625%, 01/15/2028(a)			54		56,342
5.75%, 03/01/2027(a)			90		93,389
Primo Water Holdings, Inc. 4.375%, 04/30/2029(a)			32		31,730
Radiology Partners, Inc. 9.25%, 02/01/2028(a)			6		6,362
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			24		25,325
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			20		20,013
Spectrum Brands, Inc. 3.875%, 03/15/2031(a)			77		75,615
5.75%, 07/15/2025			3		3,076
Tempur Sealy International, Inc. 3.875%, 10/15/2031(a)			104		103,077
Tenet Healthcare Corp. 6.125%, 10/01/2028(a)			17		17,853
6.25%, 02/01/2027(a)			58		60,239
7.50%, 04/01/2025(a)			158		167,652
Triton Water Holdings, Inc. 6.25%, 04/01/2029(a)			73		72,951
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			23		23,858
US Foods, Inc. 4.75%, 02/15/2029(a)			60		60,731
6.25%, 04/15/2025(a)			107		112,304
US Renal Care, Inc. 10.625%, 07/15/2027(a)			104		108,135
Vizient, Inc. 6.25%, 05/15/2027(a)			10		10,464
					6,249,896
Energy – 9.8%
Antero Resources Corp. 5.00%, 03/01/2025			30		30,538
7.625%, 02/01/2029(a)			6		6,647
Apache Corp. 4.375%, 10/15/2028			93		99,914
4.625%, 11/15/2025			8		8,616
4.875%, 11/15/2027			14		15,230

28    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Athabasca Oil Corp. 9.75%, 11/01/2026(g)	U.S.$		85	$	85,633
Berry Petroleum Co. LLC 7.00%, 02/15/2026(a)			127		128,776
Blue Racer Midstream LLC/Blue Racer Finance Corp. 6.625%, 07/15/2026(a)			14		14,497
7.625%, 12/15/2025(a)			201		216,066
Bonanza Creek Energy, Inc. 5.00%, 10/15/2026(a)			119		120,195
7.50%, 04/30/2026			6		5,684
Callon Petroleum Co. 8.00%, 08/01/2028(a)			124		124,934
8.25%, 07/15/2025			8		7,921
Citgo Holding, Inc. 9.25%, 08/01/2024(a)			72		73,530
CITGO Petroleum Corp. 6.375%, 06/15/2026(a)			16		16,481
7.00%, 06/15/2025(a)			50		51,487
CNX Resources Corp. 6.00%, 01/15/2029(a)			29		30,602
Comstock Resources, Inc. 6.75%, 03/01/2029(a)			105		112,847
DCP Midstream Operating LP 4.95%, 04/01/2022			35		35,179
Diamond Foreign Asset Co./Diamond Finance LLC 9.00% (9.00% Cash or 13.00% PIK), 04/22/2027(a)(f)			4		4,403
9.00% (9.00% Cash or 13.00% PIK), 04/22/2027(f)			4		3,800
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(a)			122		127,528
EnLink Midstream LLC 5.625%, 01/15/2028(a)			60		63,653
EnLink Midstream Partners LP 4.15%, 06/01/2025			119		123,534
4.40%, 04/01/2024			47		49,116
4.85%, 07/15/2026			107		111,069
5.60%, 04/01/2044			14		13,750
Series C 6.00%, 12/15/2022(j)			102		81,603
EQM Midstream Partners LP 4.50%, 01/15/2029(a)			57		58,633
4.75%, 01/15/2031(a)			106		109,755
5.50%, 07/15/2028			53		58,410

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Genesis Energy LP/Genesis Energy Finance Corp. 5.625%, 06/15/2024	U.S.$		45		$	44,778
6.25%, 05/15/2026			21			20,335
6.50%, 10/01/2025			35			34,482
7.75%, 02/01/2028			62			61,343
8.00%, 01/15/2027			141			141,713
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			96			99,450
7.00%, 08/01/2027			26			27,084
Gulfport Energy Corp. 6.00%, 10/15/2024(d)			128			7,040
6.375%, 05/15/2025-01/15/2026(d)			54			2,970
6.625%, 05/01/2023(d)			4			220
Gulfport Energy Operating Corp. 8.00%, 05/17/2026(a)			55			60,849
Harbour Energy PLC 5.50%, 10/15/2026(a)			200			201,163
Hess Midstream Operations LP 4.25%, 02/15/2030(a)			82			82,044
Hilcorp Energy I LP/Hilcorp Finance Co. 5.75%, 10/01/2025(a)			0	**		447
5.75%, 02/01/2029(a)			12			12,227
6.00%, 02/01/2031(a)			213			218,740
Independence Energy Finance LLC 7.25%, 05/01/2026(a)			95			98,896
ITT Holdings LLC 6.50%, 08/01/2029(a)			179			179,451
Moss Creek Resources Holdings, Inc. 10.50%, 05/15/2027(a)			48			47,627
Murphy Oil Corp. 6.375%, 07/15/2028-12/01/2042			111			116,407
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			36			35,110
7.50%, 01/15/2028(a)			37			35,462
Nabors Industries, Inc. 5.75%, 02/01/2025			30			28,519
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			126			122,779
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			86			87,310
7.50%, 11/01/2023			86			82,965
Occidental Petroleum Corp. 3.40%, 04/15/2026			8			8,154
3.50%, 06/15/2025			23			23,757
5.50%, 12/01/2025			28			30,785

30    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
5.55%, 03/15/2026	U.S.$		272		$	300,280
6.125%, 01/01/2031			93			111,259
6.20%, 03/15/2040			69			83,486
8.50%, 07/15/2027			42			52,509
8.875%, 07/15/2030			42			56,959
PBF Holding Co. LLC/PBF Finance Corp. 6.00%, 02/15/2028			9			6,541
9.25%, 05/15/2025(a)			80			77,625
PDC Energy, Inc. 5.75%, 05/15/2026			69			70,964
Range Resources Corp. 5.00%, 03/15/2023			24			24,667
8.25%, 01/15/2029(a)			55			61,909
Renewable Energy Group, Inc. 5.875%, 06/01/2028(a)			41			43,114
SM Energy Co. 5.625%, 06/01/2025			34			34,102
6.50%, 07/15/2028			19			19,948
Southwestern Energy Co. 5.375%, 02/01/2029(a)			55			57,906
6.45%, 01/23/2025			124			135,128
8.375%, 09/15/2028			22			24,540
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			88			88,587
Sunnova Energy Corp. 5.875%, 09/01/2026(a)			40			40,829
Sunoco LP/Sunoco Finance Corp. 5.875%, 03/15/2028			16			16,919
Talos Production, Inc. 12.00%, 01/15/2026			74			80,393
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.00%, 01/15/2032(a)			175			180,515
Transocean Guardian Ltd. 5.875%, 01/15/2024(a)			149			146,994
Transocean Phoenix 2 Ltd. 7.75%, 10/15/2024(a)			26			25,954
Transocean Poseidon Ltd. 6.875%, 02/01/2027(a)			50			49,996
Transocean, Inc. 6.80%, 03/15/2038			0	**		100
7.50%, 01/15/2026(a)			18			14,510
8.00%, 02/01/2027(a)			89			68,047
11.50%, 01/30/2027(a)			32			32,992
Vantage Drilling International 7.50%, 11/01/2019(b)(c)(d)(e)			46			– 0	–

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Venture Global Calcasieu Pass LLC 4.125%, 08/15/2031(a)	U.S.$		101	$	104,619
W&T Offshore, Inc. 9.75%, 11/01/2023(a)			57		55,483
Weatherford International Ltd. 11.00%, 12/01/2024(a)			2		2,085
Western Midstream Operating LP 3.95%, 06/01/2025			33		34,771
4.65%, 07/01/2026			41		44,414
4.75%, 08/15/2028			12		13,201
5.30%, 02/01/2030			49		53,705
5.45%, 04/01/2044			26		30,534
6.50%, 02/01/2050			84		100,550
					6,248,273
Other Industrial – 1.0%
Avient Corp. 5.75%, 05/15/2025(a)			103		107,995
Belden, Inc. 3.875%, 03/15/2028(a)	EUR		100		119,773
H&E Equipment Services, Inc. 3.875%, 12/15/2028(a)	U.S.$		33		32,876
IAA, Inc. 5.50%, 06/15/2027(a)			62		64,567
Interface, Inc. 5.50%, 12/01/2028(a)			53		55,304
KAR Auction Services, Inc. 5.125%, 06/01/2025(a)			228		229,072
Univar Solutions USA, Inc./Washington 5.125%, 12/01/2027(a)			17		17,799
					627,386
Services – 4.9%
ADT Security Corp. (The) 4.125%, 08/01/2029(a)			52		51,273
4.875%, 07/15/2032(a)			139		138,915
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(a)			77		80,981
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL 4.625%, 06/01/2028(a)			200		198,750
4.875%, 06/01/2028(a)	GBP		100		133,343
ANGI Group LLC 3.875%, 08/15/2028(a)	U.S.$		96		93,923
Aptim Corp. 7.75%, 06/15/2025(a)			85		68,897

32    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
APX Group, Inc. 5.75%, 07/15/2029(a)	U.S.$		199	$	197,257
Aramark Services, Inc. 6.375%, 05/01/2025(a)			95		99,998
Cars.com, Inc. 6.375%, 11/01/2028(a)			115		120,219
eDreams ODIGEO SA 5.50%, 09/01/2023(a)	EUR		102		117,226
Garda World Security Corp. 4.625%, 02/15/2027(a)	U.S.$		115		114,152
9.50%, 11/01/2027(a)			28		30,214
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			134		136,212
Monitronics International, Inc. 0.00%, 04/01/2020(b)(c)(d)(e)			14		– 0	–
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)			312		284,608
Nielsen Finance LLC/Nielsen Finance Co. 5.875%, 10/01/2030(a)			95		99,680
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)			105		100,631
5.25%, 04/15/2024(a)			55		58,515
5.75%, 04/15/2026(a)			130		139,031
6.25%, 01/15/2028(a)			102		104,568
Ritchie Bros Auctioneers, Inc. 5.375%, 01/15/2025(a)			12		12,240
Sabre GLBL, Inc. 7.375%, 09/01/2025(a)			59		62,819
9.25%, 04/15/2025(a)			65		75,114
Service Corp. International/US 3.375%, 08/15/2030			94		92,564
Square, Inc. 2.75%, 06/01/2026(a)			111		112,308
3.50%, 06/01/2031(a)			108		110,745
TripAdvisor, Inc. 7.00%, 07/15/2025(a)			120		127,283
Verscend Escrow Corp. 9.75%, 08/15/2026(a)			137		145,157
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			17		17,595
					3,124,218
Technology – 3.2%
Ahead DB Holdings LLC 6.625%, 05/01/2028(a)			37		38,068

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ascend Learning LLC 6.875%, 08/01/2025(a)	U.S.$		19	$	19,336
Austin BidCo, Inc. 7.125%, 12/15/2028(a)			37		38,205
Boxer Parent Co., Inc. 7.125%, 10/02/2025(a)			25		26,523
Clarivate Science Holdings Corp. 4.875%, 07/01/2029(a)			31		30,860
CommScope, Inc. 4.75%, 09/01/2029(a)			92		90,239
6.00%, 03/01/2026(a)			56		58,004
8.25%, 03/01/2027(a)			29		29,554
Elastic NV 4.125%, 07/15/2029(a)			17		16,909
Imola Merger Corp. 4.75%, 05/15/2029(a)			40		41,105
LogMeIn, Inc. 5.50%, 09/01/2027(a)			24		24,038
Microchip Technology, Inc. 4.25%, 09/01/2025			200		207,955
NCR Corp. 5.00%, 10/01/2028(a)			86		87,579
5.125%, 04/15/2029(a)			101		103,313
5.75%, 09/01/2027(a)			24		25,220
6.125%, 09/01/2029(a)			56		60,194
Pitney Bowes, Inc. 6.875%, 03/15/2027(a)			40		41,575
Playtika Holding Corp. 4.25%, 03/15/2029(a)			83		83,148
Presidio Holdings, Inc. 8.25%, 02/01/2028(a)			5		5,324
Rackspace Technology Global, Inc. 3.50%, 02/15/2028(a)			226		215,353
Science Applications International Corp. 4.875%, 04/01/2028(a)			15		15,468
Seagate HDD Cayman 4.091%, 06/01/2029			156		161,293
Sensata Technologies, Inc. 3.75%, 02/15/2031(a)			217		214,615
TTM Technologies, Inc. 4.00%, 03/01/2029(a)			40		39,620
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			305		316,134
Xerox Corp. 4.375%, 03/15/2023			18		18,587
					2,008,219

34    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Airlines – 0.7%
Air Canada 3.875%, 08/15/2026(a)	U.S.$		25	$	25,329
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)			60		62,920
5.75%, 04/20/2029(a)			52		55,970
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			175		184,020
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			73		81,869
United Airlines, Inc. 4.625%, 04/15/2029(a)			59		60,843
					470,951
Transportation - Services – 1.1%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.375%, 03/01/2029(a)			26		27,442
5.75%, 07/15/2027(a)			22		22,998
BCP V Modular Services 6.75%, 11/30/2029	EUR		113		127,888
EC Finance PLC 3.00%, 10/15/2026			111		129,750
Herc Holdings, Inc. 5.50%, 07/15/2027(a)	U.S.$		34		35,481
Modulaire Global Finance PLC 6.50%, 02/15/2023(a)	EUR		100		117,461
United Rentals North America, Inc. 3.875%, 02/15/2031	U.S.$		205		206,420
5.50%, 05/15/2027			25		26,199
XPO Logistics, Inc. 6.25%, 05/01/2025(a)			25		26,339
					719,978
					45,310,656
Financial Institutions – 6.4%
Banking – 0.7%
Alliance Data Systems Corp. 4.75%, 12/15/2024(a)			103		105,407
7.00%, 01/15/2026(a)			22		23,430
Ally Financial, Inc. Series B 4.70%, 05/15/2026(j)			164		170,084
Series C 4.70%, 05/15/2028(j)			28		28,490

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Discover Financial Services Series D 6.125%, 06/23/2025(j)	U.S.$		93	$	103,838
Societe Generale SA 8.00%, 09/29/2025(a)(j)			3		3,500
					434,749
Brokerage – 0.4%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			57		63,321
Lehman Brothers Holdings, Inc. 5.625%, 01/24/2013(d)(e)			423		2,329
LPL Holdings, Inc. 4.00%, 03/15/2029(a)			60		61,356
NFP Corp. 4.875%, 08/15/2028(a)			95		96,453
6.875%, 08/15/2028(a)			35		35,590
					259,049
Finance – 2.1%
Air Lease Corp. Series B 4.65%, 06/15/2026(j)			50		51,901
Aircastle Ltd. 5.25%, 06/15/2026(a)(j)			31		31,809
Armor Holdco, Inc. 8.50%, 11/15/2029			151		151,000
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			98		97,747
CNG Holdings, Inc. 12.50%, 06/15/2024(a)			32		30,502
Compass Group Diversified Holdings LLC 5.25%, 04/15/2029(a)			36		37,432
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			164		166,654
Enova International, Inc. 8.50%, 09/01/2024-09/15/2025(a)			144		148,109
goeasy Ltd. 4.375%, 05/01/2026(a)			23		23,653
5.375%, 12/01/2024(a)			7		7,198
HighTower Holding, LLC 6.75%, 04/15/2029(a)			11		11,250
Navient Corp. 5.50%, 01/25/2023			87		90,879
5.625%, 08/01/2033			31		29,454
6.125%, 03/25/2024			115		123,055
6.50%, 06/15/2022			84		86,360
7.25%, 09/25/2023			59		64,193

36    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
OneMain Finance Corp. 8.875%, 06/01/2025	U.S.$		37	$	40,018
SLM Corp. 4.20%, 10/29/2025			102		107,863
5.125%, 04/05/2022			21		20,818
					1,319,895
Insurance – 0.4%
Acrisure LLC/Acrisure Finance, Inc. 6.00%, 08/01/2029(a)			19		18,692
10.125%, 08/01/2026(a)			40		44,509
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer 6.75%, 10/15/2027(a)			135		139,663
AmWINS Group, Inc. 4.875%, 06/30/2029(a)			39		38,881
AssuredPartners, Inc. 5.625%, 01/15/2029(a)			42		41,812
USI, Inc./NY 6.875%, 05/01/2025(a)			7		7,098
					290,655
Other Finance – 0.2%
Intrum AB 3.50%, 07/15/2026(a)	EUR		100		115,336
REITs – 2.6%
ADLER Group SA 2.75%, 11/13/2026(a)			100		103,579
Aedas Homes Opco SLU 4.00%, 08/15/2026			111		130,578
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(a)	U.S.$		90		87,822
5.75%, 05/15/2026(a)			105		108,586
Diversified Healthcare Trust 4.75%, 02/15/2028			189		188,438
9.75%, 06/15/2025			90		97,765
Hospitality Properties Trust 4.50%, 06/15/2023			25		25,559
Iron Mountain, Inc. 4.50%, 02/15/2031(a)			130		131,095
4.875%, 09/15/2029(a)			69		71,335
5.25%, 07/15/2030(a)			25		26,132
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 5.625%, 05/01/2024			93		100,928
5.75%, 02/01/2027			59		67,359

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer 4.875%, 05/15/2029(a)	U.S.$		67		$	68,017
Realogy Group LLC/Realogy Co-Issuer Corp. 4.875%, 06/01/2023(a)			27			27,883
9.375%, 04/01/2027(a)			167			182,667
Service Properties Trust 7.50%, 09/15/2025			247			273,174
						1,690,917
						4,110,601
Utility – 1.6%
Electric – 1.6%
Calpine Corp. 3.75%, 03/01/2031(a)			197			189,056
4.50%, 02/15/2028(a)			141			142,798
5.125%, 03/15/2028(a)			133			132,668
Talen Energy Supply LLC 4.60%, 12/15/2021			0	**		205
6.50%, 06/01/2025			132			80,404
7.25%, 05/15/2027(a)			44			42,140
10.50%, 01/15/2026(a)			139			92,022
Vistra Corp. 8.00%, 10/15/2026(a)(j)			59			61,932
Vistra Operations Co. LLC 4.375%, 05/01/2029(a)			148			146,124
5.00%, 07/31/2027(a)			31			31,741
5.50%, 09/01/2026(a)			78			80,297
						999,387
Total Corporates - Non-Investment Grade (cost $49,532,237)						50,420,644
CORPORATES - INVESTMENT GRADE – 10.2%
Industrial – 6.6%
Basic – 0.8%
ArcelorMittal SA 4.25%, 07/16/2029			25			27,383
7.00%, 10/15/2039			71			99,312
Arconic Corp. 6.00%, 05/15/2025(a)			20			21,001
CF Industries, Inc. 3.45%, 06/01/2023			44			45,630
4.95%, 06/01/2043			44			53,673
5.15%, 03/15/2034			23			27,993
5.375%, 03/15/2044			73			93,363

38    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Glencore Finance Canada Ltd. 6.00%, 11/15/2041(a)	U.S.$		5	$	6,176
INEOS Finance PLC 2.875%, 05/01/2026(a)	EUR		120		140,018
					514,549
Capital Goods – 0.1%
General Electric Co. Series D 3.446% (LIBOR 3 Month + 3.33%), 12/15/2021(j)(k)	U.S.$		40		39,117
Howmet Aerospace, Inc. 5.90%, 02/01/2027			4		4,581
					43,698
Communications - Media – 0.8%
Netflix, Inc. 3.625%, 05/15/2027	EUR		124		164,846
4.375%, 11/15/2026	U.S.$		25		27,832
4.625%, 05/15/2029	EUR		113		163,953
4.875%, 04/15/2028	U.S.$		100		114,648
					471,279
Communications - Telecommunications – 1.1%
Hughes Satellite Systems Corp. 5.25%, 08/01/2026			21		23,438
Qwest Corp. 6.75%, 12/01/2021			78		78,717
7.25%, 09/15/2025			55		65,520
T-Mobile USA, Inc. 2.625%, 02/15/2029			80		79,271
2.875%, 02/15/2031			155		154,345
3.375%, 04/15/2029(a)			47		48,320
3.50%, 04/15/2031			126		130,622
4.75%, 02/01/2028			126		132,993
					713,226
Consumer Cyclical - Automotive – 0.4%
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)			200		216,543
Consumer Cyclical - Other – 0.4%
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			16		18,137
MDC Holdings, Inc. 6.00%, 01/15/2043			87		109,988
PulteGroup, Inc. 6.00%, 02/15/2035			26		33,923

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Toll Brothers Finance Corp. 4.875%, 03/15/2027	U.S.$		93	$	103,179
					265,227
Consumer Non-Cyclical – 1.2%
HCA, Inc. 5.375%, 09/01/2026			33		37,573
5.625%, 09/01/2028			35		41,161
5.875%, 02/15/2026			54		61,504
Kraft Heinz Foods Co. 3.00%, 06/01/2026			185		192,980
4.25%, 03/01/2031			84		94,708
4.375%, 06/01/2046			93		108,546
Pilgrim’s Pride Corp. 3.50%, 03/01/2032(a)			105		105,696
5.875%, 09/30/2027(a)			136		143,340
					785,508
Energy – 0.6%
Cenovus Energy, Inc. 4.25%, 04/15/2027			15		16,475
5.40%, 06/15/2047			2		2,507
6.75%, 11/15/2039			1		1,999
Continental Resources, Inc./OK 4.90%, 06/01/2044			16		18,186
5.75%, 01/15/2031(a)			28		33,542
Enable Midstream Partners LP 4.40%, 03/15/2027			105		114,792
4.95%, 05/15/2028			20		22,367
Hess Corp. 7.30%, 08/15/2031			36		48,458
Marathon Oil Corp. 6.80%, 03/15/2032			34		44,375
Ovintiv Exploration, Inc. 5.625%, 07/01/2024			79		86,933
QEP Resources, Inc. 5.375%, 10/01/2022			1		529
					390,163
Services – 0.0%
Expedia Group, Inc. 6.25%, 05/01/2025(a)			5		5,711
Technology – 0.6%
CDW LLC/CDW Finance Corp. 4.125%, 05/01/2025			125		128,885
Dell International LLC/EMC Corp. 7.125%, 06/15/2024(a)			18		18,321

40    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MSCI, Inc. 4.00%, 11/15/2029(a)	U.S.$		149	$	155,735
Nokia Oyj 3.375%, 06/12/2022			16		16,228
6.625%, 05/15/2039			64		85,912
					405,081
Transportation - Airlines – 0.6%
Delta Air Lines, Inc. 7.00%, 05/01/2025(a)			60		70,195
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a)			45		49,893
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. 6.50%, 06/20/2027(a)			234		254,544
					374,632
					4,185,617
Financial Institutions – 3.6%
Banking – 1.0%
Barclays Bank PLC 6.86%, 06/15/2032(a)(j)			15		19,698
CIT Group, Inc. 3.929%, 06/19/2024			37		38,502
Citigroup, Inc. Series T 6.25%, 08/15/2026(j)			38		43,874
Series U 5.00%, 09/12/2024(j)			70		72,355
Series V 4.70%, 01/30/2025(j)			41		41,772
Series W 4.00%, 12/10/2025(j)			18		18,351
Series Y 4.15%, 11/15/2026(j)			46		46,339
Goldman Sachs Group, Inc. (The) Series P 5.00%, 11/10/2022(j)			128		127,771
JPMorgan Chase & Co. Series FF 5.00%, 08/01/2024(j)			80		82,882
Series HH 4.60%, 02/01/2025(j)			49		50,057
Lloyds Banking Group PLC 6.00%, 06/07/2032(j)	GBP		8		10,360

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(j)	U.S.$		111	$	113,130
					665,091
Brokerage – 0.1%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(j)			58		63,846
Finance – 0.5%
Aircastle Ltd. 2.85%, 01/26/2028(a)			2		2,015
5.25%, 08/11/2025(a)			148		163,955
Aviation Capital Group LLC 1.95%, 01/30/2026(a)			2		1,977
3.50%, 11/01/2027(a)			18		18,776
4.125%, 08/01/2025(a)			16		17,089
4.375%, 01/30/2024(a)			36		38,212
4.875%, 10/01/2025(a)			6		6,561
5.50%, 12/15/2024(a)			41		45,552
					294,137
Insurance – 1.2%
ACE Capital Trust II 9.70%, 04/01/2030			20		29,879
Centene Corp. 2.50%, 03/01/2031			453		441,365
2.625%, 08/01/2031			43		42,346
3.00%, 10/15/2030			100		101,617
Liberty Mutual Group, Inc. 7.80%, 03/15/2037(a)			61		85,897
Prudential Financial, Inc. 5.20%, 03/15/2044			20		21,318
5.625%, 06/15/2043			50		52,541
					774,963
REITs – 0.8%
MPT Operating Partnership LP/MPT Finance Corp. 4.625%, 08/01/2029			70		74,123
5.00%, 10/15/2027			122		128,398
5.25%, 08/01/2026			40		40,864
Office Properties Income Trust 3.45%, 10/15/2031			104		101,556
4.50%, 02/01/2025			27		28,721

42    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Vornado Realty LP 3.40%, 06/01/2031	U.S.$		126		$	129,230
						502,892
						2,300,929
Total Corporates - Investment Grade (cost $6,111,842)						6,486,546
BANK LOANS – 4.2%
Industrial – 3.8%
Basic – 0.0%
Nouryon Finance B.V. 2.839% (LIBOR 1 Month + 2.75%), 10/01/2025(l)			8			7,894
Capital Goods – 0.3%
ACProducts Holdings, Inc. 4.750% (LIBOR 3 Month + 4.25%), 05/17/2028(l)			99			98,444
Apex Tool Group, LLC 6.500% (LIBOR 1 Month + 5.25%), 08/01/2024(l)			56			56,133
Granite US Holdings Corporation 4.132% (LIBOR 3 Month + 4.00%), 09/30/2026(b)(l)			55			54,757
The Chamberlain Group, LLC. 10/22/2028(m)			20			19,959
						229,293
Communications - Media – 0.2%
Advantage Sales & Marketing, Inc. 6.000% (LIBOR 3 Month + 5.25%), 10/28/2027(l)			38			37,919
Clear Channel Outdoor Holdings, Inc. 3.601% (LIBOR 2 Month + 3.50%), 08/21/2026(l)			0	**		30
3.629% (LIBOR 3 Month + 3.50%), 08/21/2026(l)			12			11,534
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 3.087% (LIBOR 1 Month + 3.00%), 05/01/2026(l)			18			17,606
Univision Communications, Inc. 3.750% (LIBOR 1 Month + 2.75%), 03/15/2024(l)			52			52,034
						119,123

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 0.6%
Crown Subsea Communications Holding, Inc. 5.750% (LIBOR 1 Month + 5.00%), 04/27/2027(l)	U.S.$		56	$	56,493
DIRECTV Financing, LLC 5.750% (LIBOR 3 Month + 5.00%), 08/02/2027(l)			60		60,029
Intrado Corporation 5.000% (LIBOR 3 Month + 4.00%), 10/10/2024(l)			26		25,221
Proofpoint, Inc. 6.750% (LIBOR 3 Month + 6.25%), 08/31/2029(b)(l)			120		122,400
Zacapa SARL 4.632% (LIBOR 3 Month + 4.50%), 07/02/2025(l)			99		99,103
					363,246
Consumer Cyclical - Automotive – 0.1%
Clarios Global LP 3.337% (LIBOR 1 Month + 3.25%), 04/30/2026(l)			42		41,978
Consumer Cyclical - Entertainment – 0.2%
Seaworld Parks & Entertainment, Inc. 3.500% (LIBOR 1 Month + 3.00%), 08/25/2028(l)			117		116,664
Consumer Cyclical - Other – 0.2%
Caesars Resort Collection, LLC 2.837% (LIBOR 1 Month + 2.75%), 12/23/2024(l)			37		37,179
Flutter Entertainment PLC 2.382% (LIBOR 3 Month + 2.25%), 07/21/2026(l)			4		4,088
Golden Nugget Online Gaming, Inc. 13.000% (LIBOR 3 Month + 12.00%), 10/04/2023(b)(l)			1		812
Scientific Games International, Inc. 2.837% (LIBOR 1 Month + 2.75%), 08/14/2024(l)			78		77,616
					119,695
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. 3.750% (LIBOR 3 Month + 2.75%), 02/05/2025(l)			6		6,014

44    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.1%
Great Outdoors Group, LLC 5.000% (LIBOR 3 Month + 4.25%), 03/06/2028(l)	U.S.$		17	$	16,804
PetSmart LLC 4.500% (LIBOR 3 Month + 3.75%), 02/11/2028(l)			80		79,829
					96,633
Consumer Non-Cyclical – 0.5%
Envision Healthcare Corporation 3.837% (LIBOR 1 Month + 3.75%), 10/10/2025(l)			28		22,935
Gainwell Acquisition Corp. 4.750% (LIBOR 3 Month + 4.00%), 10/01/2027(l)			40		39,767
Global Medical Response, Inc. 5.250% (LIBOR 3 Month + 4.25%), 03/14/2025(l)			16		15,604
Kronos Acquisition Holdings, Inc. 4.250% (LIBOR 3 Month + 3.75%), 12/22/2026(l)			40		38,474
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 3.837% (LIBOR 1 Month + 3.75%), 11/16/2025(l)			27		27,254
Padagis LLC 5.250% (LIBOR 3 Month + 4.75%), 07/06/2028(b)(l)			30		30,037
U.S. Renal Care, Inc. 5.125% (LIBOR 1 Month + 5.00%), 06/26/2026(l)			59		58,374
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 6.250% (LIBOR 3 Month + 5.50%), 12/15/2027(l)			89		89,548
					321,993
Energy – 0.1%
CITGO Petroleum Corporation 7.250% (LIBOR 3 Month + 6.25%), 03/28/2024(l)			35		34,715
Other Industrial – 0.4%
American Tire Distributors, Inc. 10/08/2028(m)			165		165,372

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Dealer Tire, LLC 4.337% (LIBOR 1 Month + 4.25%), 12/12/2025(l)	U.S.$		20	$	19,640
Equiniti Group PLC 10/29/2028(b)(m)			30		30,000
FCG Acquisitions, Inc. 7.250% (LIBOR 3 Month + 6.75%), 03/30/2029(l)			30		29,975
Rockwood Service Corporation 4.087% (LIBOR 1 Month + 4.00%), 01/23/2027(b)(l)			3		3,272
					248,259
Services – 0.2%
Amentum Government Services Holdings LLC 3.587% (LIBOR 1 Month + 3.50%), 01/29/2027(l)			20		19,635
Garda World Security Corporation 4.340% (LIBOR 1 Month + 4.25%), 10/30/2026(l)			58		57,857
Parexel International Corporation 2.837% (LIBOR 1 Month + 2.75%), 09/27/2024(l)			9		8,811
Verscend Holding Corp. 4.087% (LIBOR 1 Month + 4.00%), 08/27/2025(l)			26		26,146
					112,449
Technology – 0.9%
athenahealth, Inc. 4.377% (LIBOR 3 Month + 4.25%), 02/11/2026(l)			71		70,996
Banff Guarantor Inc. 02/27/2026(m)			50		50,563
Boxer Parent Company, Inc. 3.882% (LIBOR 3 Month + 3.75%), 10/02/2025(l)			58		57,505
Endurance International Group Holdings, Inc. 4.250% (LIBOR 3 Month + 3.50%), 02/10/2028(l)			74		72,685
Loyalty Ventures, Inc. 10/08/2027(b)(m)			132		131,175
Peraton Corp. 4.500% (LIBOR 1 Month + 3.75%), 02/01/2028(l)			34		33,551
Playtika Holding Corp. 2.837% (LIBOR 1 Month + 2.75%), 03/13/2028(l)			60		59,569

46    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Presidio Holdings, Inc. 3.590% (LIBOR 1 Month + 3.50%), 01/22/2027(l)	U.S.$		1		$	783
3.630% (LIBOR 3 Month + 3.50%), 01/22/2027(l)			14			14,238
Veritas US, Inc. 6.00% (LIBOR 3 Month + 5.00%), 09/01/2025(l)			84			83,928
						574,993
						2,392,949
Financial Institutions – 0.3%
Insurance – 0.3%
Cross Financial Corp. 4.750% (LIBOR 1 Month + 4.00%), 09/15/2027(l)			45			44,980
Hub International Limited 4.000% (LIBOR 2 Month + 3.25%), 04/25/2025(l)			0	**		169
4.000% (LIBOR 3 Month + 3.25%), 04/25/2025(l)			67			66,808
Jones DesLauriers Insurance Management, Inc. 8.000% (CDOR 3 Month + 7.50%), 03/26/2029(b)(l)	CAD		50			40,415
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 3.837% (LIBOR 1 Month + 3.75%), 09/03/2026(l)	U.S.$		50			49,502
						201,874
Utility – 0.1%
Electric – 0.1%
Generation Bridge Acquisition, LLC 08/06/2028(b)(m)			42			42,095
Granite Generation LLC 4.750% (LIBOR 3 Month + 3.75%), 11/09/2026(l)			9			8,396
4.750% (LIBOR 1 Month + 3.75%), 11/09/2026(l)			44			42,929
						93,420
Total Bank Loans (cost $2,664,621)						2,688,243

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS - CORPORATE BONDS – 1.6%
Industrial – 1.5%
Basic – 0.2%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)	U.S.$		91	$	92,370
First Quantum Minerals Ltd. 7.25%, 04/01/2023(a)			58		59,357
					151,727
Communications - Telecommunications – 0.3%
Sable International Finance Ltd. 5.75%, 09/07/2027(a)			180		186,972
Consumer Cyclical - Other – 0.7%
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(a)			236		231,472
Wynn Macau Ltd. 5.50%, 01/15/2026(a)			209		197,061
					428,533
Consumer Cyclical - Retailers – 0.0%
K2016470219 South Africa Ltd. 3.00%, 12/31/2022(b)(c)(f)(g)			17		– 0	–
K2016470260 South Africa Ltd. 25.00%, 12/31/2022(b)(c)(f)(g)			9		– 0	–
					– 0	–
Consumer Non-Cyclical – 0.0%
Tonon Luxembourg SA 6.50% (0.50% Cash and 6.00% PIK), 10/31/2024(b)(c)(d)(f)(g)(i)			2		22
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(d)(e)(g)			96		964
					986
Technology – 0.3%
CA Magnum Holdings 5.375%, 10/31/2026(a)			200		205,250
					973,468
Utility – 0.1%
Electric – 0.1%
Terraform Global Operating LLC 6.125%, 03/01/2026(g)			28		28,696
Total Emerging Markets - Corporate Bonds (cost $1,134,797)					1,002,164

48    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
COMMON STOCKS – 1.0%
Energy – 0.6%
Energy Equipment & Services – 0.0%
Vantage Drilling International(d)		247	$	1,296
Oil, Gas & Consumable Fuels – 0.6%
Berry Corp.		5,250		50,453
Bonanza Creek Energy, Inc.		523		29,360
CHC Group LLC(d)(n)		9,365		206
Denbury, Inc.(d)		679		57,484
Diamond Offshore Drilling, Inc.(d)		5,350		29,425
Diamond Offshore Drilling, Inc.(d)(g)		1,142		6,281
Edcon Ltd.(b)(c)(d)		8,218		– 0	–
Global Partners LP/MA		1,004		23,434
Gulfport Energy Operating Corp.(d)		2,061		169,083
K201640219 South Africa Ltd. A Shares(b)(c)(d)		191,574		– 0	–
K201640219 South Africa Ltd. B Shares(b)(c)(d)		30,276		– 0	–
SandRidge Energy, Inc.(d)		5		64
Whiting Petroleum Corp.(d)		142		9,249
				375,039
				376,335
Consumer Discretionary – 0.2%
Auto Components – 0.2%
ATD New Holdings, Inc.(b)(d)		1,009		69,621
Exide Corp.(b)(c)(d)		7		14,350
				83,971
Hotels, Restaurants & Leisure – 0.0%
Caesars Entertainment, Inc.(d)		151		16,528
				100,499
Consumer Staples – 0.1%
Food & Staples Retailing – 0.1%
Southeastern Grocers, Inc.(b)(c)(d)		3,584		81,984
Information Technology – 0.1%
Software – 0.1%
Avaya Holdings Corp.(d)		1,385		25,789
Monitronics International, Inc.(d)		578		3,468
				29,257
Communication Services – 0.0%
Media – 0.0%
DISH Network Corp. – Class A(d)		100		4,107
iHeartMedia, Inc. – Class A(d)		1,045		20,252
				24,359

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

		Shares		U.S. $ Value
Industrials – 0.0%
Construction & Engineering – 0.0%
WillScot Mobile Mini Holdings Corp.(d)			508	$	17,653
Materials – 0.0%
Containers & Packaging – 0.0%
Westrock Co.			6		289
Metals & Mining – 0.0%
BIS Industries Holdings Ltd.(b)(c)(d)			21,027		– 0	–
Neenah Enterprises, Inc.(b)(c)(d)			4,481		– 0	–
					– 0	–
					289
Total Common Stocks (cost $744,182)					630,376
		Principal Amount (000)
GOVERNMENTS - TREASURIES – 0.6%
Mexico – 0.1%
Mexican Bonos Series M 5.75%, 03/05/2026	MXN		1,202		55,191
Series M 20 10.00%, 12/05/2024			480		25,216
					80,407
United States – 0.5%
U.S. Treasury Notes 2.75%, 05/31/2023	U.S.$		300		311,250
Total Governments - Treasuries (cost $391,552)					391,657
		Shares
PREFERRED STOCKS – 0.3%
Industrial – 0.3%
Consumer Cyclical - Automotive – 0.0%
Exide International Holdings LP 0.00%,(b)(c)(d)(g)			39		31,492
Consumer Cyclical - Other – 0.0%
Hovnanian Enterprises, Inc. 7.625%			490		8,355
Energy – 0.2%
Gulfport Energy Operating Corp. 10.00%, 11/29/2021(b)(d)			4		23,400

50    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Shares			U.S. $ Value
Targa Resources Corp. Series A 9.50%			70		$	75,727
						99,127
Industrial Conglomerates – 0.1%
WESCO International, Inc. Series A 10.625%			1,425			44,745
						183,719
Financial Institutions – 0.0%
Capital Markets – 0.0%
Ladenburg Thalmann Financial Services, Inc. Series A 8.00%			2,175			29,471
Total Preferred Stocks (cost $168,855)						213,190
		Principal Amount (000)
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.1%
Risk Share Floating Rate – 0.1%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 4.339% (LIBOR 1 Month + 4.25%), 11/25/2023(k)	U.S.$		23			23,504
Series 2014-HQ2, Class M3 3.839% (LIBOR 1 Month + 3.75%), 09/25/2024(k)			31			31,999
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 4.489% (LIBOR 1 Month + 4.40%), 01/25/2024(k)			6			6,009
Series 2015-C03, Class 2M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(k)			0	**		157
						61,669
Non-Agency Fixed Rate – 0.0%
Alternative Loan Trust Series 2006-28CB, Class A14 6.25%, 10/25/2036			4			2,828

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CSMC Mortgage-Backed Trust Series 2006-7, Class 3A12 6.25%, 08/25/2036	U.S.$		4	$	2,623
					5,451
Total Collateralized Mortgage Obligations (cost $67,429)					67,120
ASSET-BACKED SECURITIES – 0.1%
Home Equity Loans - Fixed Rate – 0.1%
CWABS Asset-Backed Certificates Trust Series 2005-7, Class AF5W 5.054%, 10/25/2035			18		18,236
GSAA Home Equity Trust Series 2006-6, Class AF5 6.741%, 03/25/2036			61		24,965
Lehman XS Trust Series 2007-6, Class 3A5 4.467%, 05/25/2037			8		8,231
Total Asset-Backed Securities (cost $66,326)					51,432
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.1%
Non-Agency Fixed Rate CMBS – 0.1%
Citigroup Commercial Mortgage Trust Series 2014-GC23, Class D 4.483%, 07/10/2047(a)			15		14,721
GS Mortgage Securities Trust Series 2014-GC18, Class D 4.975%, 01/10/2047(a)			29		4,808
JPMBB Commercial Mortgage Securities Trust Series 2013-C17, Class D 4.886%, 01/15/2047(a)			29		28,623
Total Commercial Mortgage-Backed Securities (cost $71,348)					48,152
EMERGING MARKETS - TREASURIES – 0.0%
South Africa – 0.0%
Republic of South Africa Government Bond Series 2023 7.75%, 02/28/2023 (cost $20,994)	ZAR		283		18,998

52    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/2022(d)		1,210	$	1,694
Battalion Oil Corp., expiring 10/08/2022(b)(c)(d)		9		– 0	–
SandRidge Energy, Inc., A-CW22, expiring 10/04/2022(d)		1,980		99
SandRidge Energy, Inc., B-CW22, expiring 10/04/2022(d)		831		40
Willscot Corp., expiring 11/29/2022(b)(c)(d)		787		15,269
Total Warrants (cost $13,125)				17,102
RIGHTS – 0.0%
Vistra Energy Corp., expiring 12/31/2049(b)(d) (cost $0)		3,442		4,612
SHORT-TERM INVESTMENTS – 3.9%
Investment Companies – 3.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(o)(p)(q) (cost $2,464,062)		2,464,062		2,464,062
Total Investments – 101.1% (cost $63,451,370)				64,504,298
Other assets less liabilities – (1.1)%				(679,065	)
Net Assets – 100.0%			$	63,825,233

FUTURES (see Note C)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
E-Mini Russell 2000 Futures		1		December 2021	$	114,765	$	2,490
S&P 500 E-Mini Futures		1		December 2021		229,850		4,685
U.S. T-Note 5 Yr (CBT) Futures		18		December 2021		2,191,500		(33,133	)
U.S. T-Note 10 Yr (CBT) Futures		17		December 2021		2,221,953		(39,711	)
Sold Contracts
Euro-OAT Futures		1		December 2021		189,584		5,503
							$	(60,166	)

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation/ (Depreciation)
Brown Brothers Harriman & Co.		MXN	1,313		USD	64		01/13/2022	$	1,216
Brown Brothers Harriman & Co.		EUR	407		USD	477		11/08/2021		6,370
Brown Brothers Harriman & Co.		GBP	100		USD	137		11/10/2021		461
Brown Brothers Harriman & Co.		CAD	65		USD	51		11/19/2021		(1,547	)
Deutsche Bank AG		RUB	4,120		USD	56		12/15/2021		(1,620	)
Deutsche Bank AG		EUR	1,988		USD	2,362		11/08/2021		63,631
Goldman Sachs Bank USA		USD	56		RUB	4,120		12/15/2021		1,483
									$	69,994

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note C)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)		Market Value		Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 34, 5 Year Index, 06/20/2025*		5.00	%		Quarterly		2.56	%	USD	255	$	22,566	$	(238	)	$	22,804
iTraxx Europe Crossover Series 36, 5 Year Index, 12/20/2026*		5.00			Quarterly		2.62		EUR	330		44,688		45,132			(444	)
											$	67,254	$	44,894		$	22,360

* Termination date

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	1,770		03/06/2023	3 Month LIBOR	2.714%	Quarterly/Semi-Annual	$	61,319		$	– 0	–	$	61,319
USD	2,835		09/02/2025	2.248%	3 Month LIBOR	Semi-Annual/Quarterly		(132,682	)		(8,311	)		(124,371	)
USD	961		01/15/2026	1.978%	3 Month LIBOR	Semi-Annual/Quarterly		(38,438	)		5,398			(43,836	)
USD	651		02/16/2026	1.625%	3 Month LIBOR	Semi-Annual/Quarterly		(14,768	)		7,434			(22,202	)
USD	150		03/31/2026	1.693%	3 Month LIBOR	Semi-Annual/Quarterly		(3,575	)		– 0	–		(3,575	)
USD	100		05/03/2026	1.770%	3 Month LIBOR	Semi-Annual/Quarterly		(3,443	)		– 0	–		(3,443	)
USD	800		06/01/2026	1.714%	3 Month LIBOR	Semi-Annual/Quarterly		(24,292	)		32,362			(56,654	)

54    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

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	4,650		04/28/2027	3 Month LIBOR	2.330%	Quarterly/Semi-Annual	$	260,351		$	16,658		$	243,693
USD	350		05/03/2027	2.285%	3 Month LIBOR	Semi-Annual/Quarterly		(22,552	)		112			(22,664	)
USD	940		03/06/2028	2.876%	3 Month LIBOR	Semi-Annual/Quarterly		(90,998	)		– 0	–		(90,998	)
							$	(9,078	)	$	53,653		$	(62,731	)

CREDIT DEFAULT SWAPS (see Note C)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
Credit Suisse International
CDX-CMBX.NA.BB Series 6, 05/11/2063*		(5.00	)%		Monthly		10.00	%	USD	173	$	75,883		$	20,571		$	55,312
Goldman Sachs International
CDX-CMBX.NA.BBB Series 6, 05/11/2063*		(3.00	)		Monthly		10.00		USD	192		53,264			19,207			34,057
Sale Contracts
BNP Paribas SA
Altice France SA, 06/20/2024*		5.00			Quarterly		1.85		EUR	70		6,984			3,323			3,661
Credit Suisse International
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00		USD	28		(12,226	)		(3,270	)		(8,956	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00		USD	66		(29,088	)		(7,217	)		(21,871	)
International Game Technology, 4.750%, 02/15/2023, 06/20/2022*		5.00			Quarterly		0.40		EUR	100		4,102			2,530			1,572
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00		USD	75		(20,819	)		(4,779	)		(16,040	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00		USD	252		(69,951	)		(16,484	)		(53,467	)

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Goldman Sachs International
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023*		5.00	%		Quarterly		0.80	%	USD	20	$	1,907		$	861		$	1,046
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023*		5.00			Quarterly		0.80		USD	10		953			275			678
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00		USD	157		(68,676	)		(26,764	)		(41,912	)
											$	(57,667	)	$	(11,747	)	$	(45,920	)

* Termination date

TOTAL RETURN SWAPS (see Note C)

Counterparty & Referenced Obligation	Rate Paid/ Received	Payment Frequency	Current Notional (000)		Maturity Date		Unrealized Appreciation/ (Depreciation)
Receive Total Return on Reference Obligation
Goldman Sachs International
Markit iBoxx USD Contingent Convertible Liquid Developed Markets AT1 Index TRI	3 Month LIBOR	Maturity		USD  573		12/20/2021	$	(6,790	)

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $41,963,688 or 65.7% of net assets.

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

(c) Fair valued by the Adviser.

(d) Non-income producing security.

(e) Defaulted matured security.

(f) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2021.

56    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(g) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.23% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Athabasca Oil Corp. 9.75%, 11/01/2026		10/07/2021	$	82,458		$	85,633			0.13	%
Diamond Offshore Drilling, Inc.		04/23/2021		19,989			6,281			0.01	%
Exide International Holdings LP 0.00%,		11/05/2020		29,328			31,492			0.05	%
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024		10/29/2020		– 0	–		– 0	–		0.00	%
Exide Technologies (First Lien) 11.00%, 10/31/2024		10/29/2020		– 0	–		– 0	–		0.00	%
K2016470219 South Africa Ltd. 3.00%, 12/31/2022		02/05/2020 - 06/30/2021		16,145			– 0	–		0.00	%
K2016470260 South Africa Ltd. 25.00%, 12/31/2022		12/22/2016 - 06/30/2021		9,176			– 0	–		0.00	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		36,767			– 0	–		0.00	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018 - 06/04/2019		28,029			28,696			0.04	%
Tonon Luxembourg SA 6.50%, 10/31/2024		05/03/2019 - 10/31/2020		4,100			22			0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		02/13/2013		96,161			964			0.00	%

(h) Convertible security.

(i) Defaulted.

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

(k) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

(l) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the CDOR or the LIBOR/CDOR floor rate plus spread at October 31, 2021.

(m) This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

(n) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
CHC Group LLC		03/10/2017	$	127,430	$	206		0.00	%

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PORTFOLIO OF INVESTMENTS (continued)

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

(p) 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.

(q) Affiliated investments.

Currency Abbreviations:

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

MXN – Mexican Peso

RUB – Russian Ruble

USD – United States Dollar

ZAR – South African Rand

Glossary:

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

OAT – Obligations Assimilables du Trésor

REIT – Real Estate Investment Trust

See notes to financial statements.

58    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value Unaffiliated issuers (cost $60,987,308)	$	62,040,236
Affiliated issuers (cost $2,464,062)		2,464,062
Cash		4,881
Cash collateral due from broker		148,299
Foreign currencies, at value (cost $9,121)		9,250
Unaffiliated interest receivable		813,277
Receivable for capital stock sold		298,487
Market value of credit default swaps (net premiums paid $46,767)		143,093
Unrealized appreciation on forward currency exchange contracts		73,161
Receivable from Adviser		43,568
Receivable for variation margin on centrally cleared swaps		2,325
Receivable for variation margin on futures		1,515
Affiliated dividends receivable		24
Total assets		66,042,178
Liabilities
Payable for investment securities purchased		1,430,060
Payable for capital stock redeemed		255,718
Market value of credit default swaps (net premiums received $58,514)		200,760
Audit and tax fee payable		130,350
Dividends payable		76,953
Unrealized depreciation on total return swaps		6,790
Payable for capital gains taxes		6,065
Unrealized depreciation on forward currency exchange contracts		3,167
Transfer Agent fee payable		3,001
Payable for variation margin on centrally cleared swaps		2,326
Directors’ fee payable		1,586
Distribution fee payable		33
Accrued expenses and other liabilities		100,136
Total liabilities		2,216,945
Net Assets	$	63,825,233
Composition of Net Assets
Capital stock, at par	$	6,395
Additional paid-in capital		72,061,775
Accumulated loss		(8,242,937	)
	$	63,825,233

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	157,857		15,815	$	9.98	*
Advisor	$	63,608,682		6,373,554	$	9.98
Z	$	58,694		5,880	$	9.98

* The maximum offering price per share for Class A shares was $10.42, which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    59

STATEMENT OF OPERATIONS

	For the Period January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020
Investment Income
Interest (net of foreign taxes withheld of $492 and $324, respectively)	$	2,169,904		$	2,349,889
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $997 and $0, respectively)		16,641			5,949
Affiliated issuers		198			3,547
Total income		2,186,743			2,359,385
Expenses
Advisory fee (see Note B)		160,450			231,005
Transfer agency—Class A		44			– 0	–
Transfer agency—Advisor Class		41,787			41,096
Transfer agency—Class Z		6			– 0	–
Distribution fee—Class A		78			– 0	–
Audit and tax		144,237			136,812
Legal		105,017			106,071
Custody and accounting		96,761			153,756
Administrative		76,287			72,160
Registration fees		63,391			24,330
Printing		33,800			38,915
Directors’ fees		15,897			16,540
Miscellaneous		6,083			17,418
Total expenses		743,838			838,103
Less: expenses waived and reimbursed by the Adviser (see Note B)		(526,274	)		(568,950	)
Net expenses		217,564			269,153
Net investment income		1,969,179			2,090,232

See notes to financial statements.

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STATEMENT OF OPERATIONS (continued)

	For the Period January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(b)	$	680,336		$	(43,889	)
Forward currency exchange contracts		65,494			(152,216	)
Futures		893			177,890
Swaps		431,871			105,965
Foreign currency transactions		(26,726	)		41,441
Net change in unrealized appreciation/depreciation on:
Investments		(362,957	)(c)		770,281	(d)
Forward currency exchange contracts		79,423			36,943
Futures		(71,240	)		25,520
Swaps		(290,205	)		137,424
Foreign currency denominated assets and liabilities		(1,756	)		486
Net gain on investment and foreign currency transactions		505,133			1,099,845
Net Increase in Net Assets from Operations	$	2,474,312		$	3,190,077

(a) The Fund changed its fiscal year end from December 31 to October 31.

(b) Net of foreign realized capital gains taxes of $1,383 and $20,258, respectively.

(c) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $1,014.

(d) Net of increase in accrued foreign capital gains taxes on unrealized gains of $2,884.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	For the Period January 1, 2021 to, October 31, 2021(a)			Year Ended December 31, 2020			Year Ended December 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	1,969,179		$	2,090,232		$	1,991,008
Net realized gain (loss) on investment and foreign currency transactions		1,151,868			129,191			(233,902	)
Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities		(646,735	)		970,654			3,115,409
Net increase in net assets from operations		2,474,312			3,190,077			4,872,515
Distributions to Shareholders
Class A		(1,360	)		– 0	–		– 0	–
Advisor Class		(2,142,401	)		(2,379,537	)		(2,205,237	)
Class Z		(544	)		– 0	–		– 0	–
Capital Stock Transactions
Net increase (decrease)		24,744,091			(2,277,269	)		7,041,926
Total increase (decrease)		25,074,098			(1,466,729	)		9,709,204
Net Assets
Beginning of period		38,751,135			40,217,864			30,508,660
End of period	$	63,825,233		$	38,751,135		$	40,217,864

(a) The Fund changed its fiscal year end from December 31 to October 31.

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB High Yield Portfolio (the “Fund”), a diversified portfolio. On April 30, 2021, the Fund’s name was changed from the AB FlexFee High Yield Portfolio to AB High Yield Portfolio and the fiscal year end changed from December 31 to October 31. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Effective April 30, 2021 the Fund recommenced offering of Class A and Class Z shares. Class B, Class T, Class 1 and Class 2 shares have not been issued, and no shares of Class C, Class R, Class K or Class I were outstanding as of October 31, 2021. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Advisor Class and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Fund’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

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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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

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

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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, 2021:

Investments in Securities

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Non-Investment Grade

$

– 0

–

$

50,416,853

$

3,791

#

$

50,420,644

Corporates – Investment Grade

– 0

–

6,486,546

– 0

–

6,486,546

Bank Loans

– 0

–

2,233,280

454,963

2,688,243

Emerging Markets – Corporate Bonds

– 0

–

1,002,142

22

#

1,002,164

Common Stocks

428,715

35,706

165,955

#

630,376

Governments – Treasuries

– 0

–

391,657

– 0

–

391,657

Preferred Stocks

53,100

105,198

54,892

213,190

Collateralized Mortgage Obligations

– 0

–

67,120

– 0

–

67,120

Asset-Backed Securities

– 0

–

51,432

– 0

–

51,432

Commercial Mortgage-Backed Securities

– 0

–

48,152

– 0

–

48,152

Emerging Markets – Treasuries

– 0

–

18,998

– 0

–

18,998

Warrants

1,833

– 0

–

15,269

#

17,102

Rights

– 0

–

– 0

–

4,612

4,612

Short-Term Investments:

Investment Companies

2,464,062

– 0

–

– 0

–

2,464,062

Total Investments in Securities

2,947,710

60,857,084

699,504

64,504,298

Other Financial Instruments*:

Assets

Futures

12,678

– 0

–

– 0

–

12,678

†

Forward Currency Exchange Contracts

– 0

–

73,161

– 0

–

73,161

Centrally Cleared Credit Default Swaps

– 0

–

67,254

– 0

–

67,254

†

Centrally Cleared Interest Rate Swaps

– 0

–

321,670

– 0

–

321,670

†

Credit Default Swaps

– 0

–

143,093

– 0

–

143,093

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities	Level 1			Level 2			Level 3			Total
Liabilities
Futures	$	(72,844	)	$	– 0	–	$	– 0	–	$	(72,844	)†
Forward Currency Exchange Contracts		– 0	–		(3,167	)		– 0	–		(3,167	)
Centrally Cleared Interest Rate Swaps		– 0	–		(330,748	)		– 0	–		(330,748	)†
Credit Default Swaps		– 0	–		(200,760	)		– 0	–		(200,760	)
Total Return Swaps		– 0	–		(6,790	)		– 0	–		(6,790	)
Total	$	2,887,544		$	60,920,797		$	699,504		$	64,507,845

# The Fund held securities with zero market value at period end.

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

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

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

	Corporates - Non-Investment Grade#			Bank Loans			Emerging Markets - Corporate Bonds#			Common Stocks#
Balance as of 12/31/20	$	4,250		$	341,734		$	64		$	97,103
Accrued discounts/(premiums)		– 0	–		– 0	–		(378	)		– 0	–
Realized gain (loss)		128			1,954			– 0	–		(29,749	)
Change in unrealized appreciation/depreciation		(459	)		7,583			(931	)		101,731
Purchases/Payups		– 0	–		442,123			1,267			– 0	–
Sales		(128	)		(338,431	)		– 0	–		(3,130	)
Balance as of 10/31/21	$	3,791		$	454,963		$	22		$	165,955
Net change in unrealized appreciation/depreciation from investments held as of 10/31/21**	$	(459	)	$	9,113		$	(931	)	$	71,485

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NOTES TO FINANCIAL STATEMENTS (continued)

	Preferred Stocks			Warrants#			Rights			Total
Balance as of 12/31/20	$	29,445		$	7,169		$	3,442		$	483,207
Accrued discounts/(premiums)		– 0	–		– 0	–		– 0	–		(378	)
Realized gain (loss)		– 0	–		– 0	–		– 0	–		(27,667	)
Change in unrealized appreciation/depreciation		22,408			8,100			1,170			139,602
Purchases/Payups		3,039			– 0	–		– 0	–		446,429
Sales		– 0	–		– 0	–		– 0	–		(341,689	)
Balance as of 10/31/21	$	54,892		$	15,269		$	4,612		$	699,504
Net change in unrealized appreciation/depreciation from investments held as of 10/31/21**	$	22,408		$	8,100		$	1,170		$	110,886

# The Fund held securities with zero market value that were sold/expired/written off during the reporting period.

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

The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at October 31, 2021. Securities priced (i) by third party vendors, (ii) by brokers or (iii) using prior transaction prices, which approximates fair value, are excluded from the following table.

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 10/31/21			Valuation Technique	Unobservable Input	Input
Corporates – Non-Investment Grade	$	3,791		Recovery Analysis	Collateral Value	$75.90
	$	– 0	–	Qualitative Assessment		$0.00
	$	3,791
Common Stocks	$	14,350		Market Approach	Projected Enterprise Value	$595.3mm to $661.3mm
	$	– 0	–	Qualitative Assessment		$0.00
	$	– 0	–	Qualitative Assessment		$0.00
	$	14,350

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NOTES TO FINANCIAL STATEMENTS (continued)

	Fair Value at 10/31/21			Valuation Technique	Unobservable Input	Input
Preferred Stocks	$	31,492		Discounted Cash Flow	Discount Rate on Future Cash Flows	12.21%
Warrants	$	15,269		Option Pricing Model	Exercise Price	$19.40
	$	– 0	–	Qualitative Assessment		$0.00
	$	15,269

Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in Collateral Value, Projected Enterprise Value and Exercise Price in insolation would be expected to result in a significantly higher (lower) fair value measurement. A significant increase (decrease) in Discount Rate on Future Cash Flows in isolation would be expected to result in a significantly lower (higher) fair value measurement.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital

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gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

The Fund has a tax year-end of December 31 concurrent with the filing of the Fund’s tax returns.

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

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

NOTE B

Advisory Fee and Other Transactions with Affiliates

Effective April 30, 2021, under an amended advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first

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NOTES TO FINANCIAL STATEMENTS (continued)

$2.5 billion, .425% of the next $2.5 billion and .40% in excess of $5 billion of the Fund’s average daily net assets. Prior to April 30, 2021, the Fund calculated and accrued daily a base fee, at an annualized rate of .40% of the Fund’s average daily net assets (“Base Fee”). The prior advisory fee was increased or decreased from the Base Fee by a performance adjustment (“Performance Adjustment”) that depended on whether, and to what extent, the investment performance of the Advisor Class shares of the Fund (“Measuring Class”) exceeded, or was exceeded by, the performance of the Markit iBoxx USD Liquid High Yield Index (“Index”) plus .75% (“Index Hurdle”) over the Performance Period (as defined below). The Performance Adjustment was calculated and accrued daily, according to a schedule that added or subtracted .002667% of the Fund’s average daily net assets for each .01% of absolute performance by which the performance of the Measuring Class exceeded or lagged the Index Hurdle for the period from the beginning of the Performance Period through the current business day. The maximum Performance Adjustment (positive or negative) could not exceed an annualized rate of +/- .20% (“Maximum Performance Adjustment”) of the Fund’s average daily net assets, which would occur when the performance of the Measuring Class exceeded, or was exceeded by, the Index Hurdle by .75% or more for the Performance Period. On a monthly basis, the Fund paid the Adviser the minimum fee rate of .20% on an annualized basis (Base Fee minus the Maximum Performance Adjustment) applied to the average daily net assets for the month. At the end of the Performance Period, the Fund paid to the Adviser the total advisory fee, less the amount of any minimum fees paid during the Performance Period and any waivers described below. The period over which performance was measured (“Performance Period”) was initially from February 26, 2018 to December 31, 2019 and thereafter was each 12-month period beginning on the first day in the month of January through December 31 of the same year. In addition, the Adviser had agreed to waive its advisory fee by limiting the Fund’s accrual of the advisory fee (Base Fee plus Performance Adjustment) on any day to the amount corresponding to the maximum fee rate multiplied by the Fund’s current net assets if such amount was less than the amount that would have been accrued based on the Fund’s average daily net assets for the Performance Period. For the period from January 1, 2021 until the implementation of the new advisory fee on April 30, 2021, the Fund paid the minimum fee under the prior advisory fee arrangement (0.20% of the Fund’s average daily net assets) as a result of a fee waiver by the Adviser.

Effective April 30, 2021, the Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total expenses (other than acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction

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costs) on an annual basis (the “Expense Cap”) to .85%, .60% and .60% of daily average net assets for the Class A, Advisor Class and Class Z, respectively. For the period ended October 31, 2021, such reimbursements/ waivers amounted to $448,969. The Expense Cap will remain in effect until April 30, 2022 and then may be continued thereafter from year to year by the Adviser.

Any fees waived and expenses borne by the Adviser between February 26, 2018 and December 31, 2019 are/were subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amount to $484,978 for the year ended December 31, 2019. Prior to April 30, 2021, the Advisor had agreed to waive its fees and bear certain expenses to the extent necessary to limit total expenses (other than the advisory fee, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis from exceeding .10% of average daily net assets. In any case, no repayment will be made that would cause the Fund’s total annual expenses (subject to the exclusions set forth in the preceding sentence) to exceed .10% of average daily net assets.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the period ended October 31, 2021, the Adviser voluntarily agreed to waive such fees in the amount of $76,287.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $15,268 for the period ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the period ended October 31, 2021, such waiver amounted to $1,018.

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A summary of the Fund’s transactions in AB mutual funds for the period ended October 31, 2021 is as follows:

Fund	Market Value 12/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	148	$	32,878	$	30,562	$	2,464	$	0	*

* Amount is less than $500.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares. There are no distribution and servicing fees on Advisor Class and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the period ended October 31, 2021, were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	41,564,643		$	17,773,332
U.S. government securities		– 0	–		– 0	–

As of October 31, 2021, the cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	63,500,111
Gross unrealized appreciation	$	2,737,934
Gross unrealized depreciation		(2,061,080	)
Net unrealized appreciation	$	676,854

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1. Derivative Financial Instruments

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

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

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the period ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• 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, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is

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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.

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 period ended October 31, 2021, the Fund held futures for hedging purposes.

• 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 including by making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment

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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 swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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

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

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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 period ended October 31, 2021, 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

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referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligation with the same counterparty.

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

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

During the period ended October 31, 2021, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the period ended ended October 31, 2021, the Fund held total return swaps for non-hedging purposes.

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

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

During the period ended October 31, 2021, 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	$	5,503	*	Receivable/Payable for variation margin on futures	$	72,844	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		305,012	*	Receivable/Payable for variation margin on centrally cleared swaps		367,743	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		73,161		Unrealized depreciation on forward currency exchange contracts		3,167

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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
Credit contracts	Market value of credit default swaps	$	143,093		Market value of credit default swaps	$	200,760
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		22,804	*	Receivable/Payable for variation margin on centrally cleared swaps		444	*
Credit contracts					Unrealized depreciation on total return swaps		6,790
Equity contracts	Receivable/Payable for variation margin on futures		7,175	*
Total		$	556,748			$	651,748

* 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 on swaps	$	19,965		$	8,096
Interest rate contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation/ depreciation on futures		(53,209	)		(74,748	)
Foreign currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation/ depreciation on forward currency exchange contracts		65,494			79,423
Credit contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation/ depreciation on swaps		411,906			(298,301	)

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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)
Equity contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation/ depreciation on futures	$	54,102	$	3,508
Total		$	498,258	$	(282,022	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the period ended October 31, 2021:

Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	57,696	(a)
Average notional amount of sale contracts	$	2,779,559
Centrally Cleared Interest Rate Swaps
Average notional amount	$	13,207,000
Credit Default Swaps:
Average notional amount of buy contracts	$	368,773
Average notional amount of sale contracts	$	815,732
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	112,901	(b)
Average principal amount of sale contracts	$	2,764,488
Futures:
Average notional amount of buy contracts	$	4,941,516
Average notional amount of sale contracts	$	195,057
Total Return Swaps:
Average notional amount	$	580,000

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

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

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, 2021. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.

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Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
BNP Paribas SA	$	6,984	$	– 0	–	$	– 0	–	$	– 0	–	$	6,984
Brown Brothers Harriman & Co.		8,047		(1,547	)		– 0	–		– 0	–		6,500
Credit Suisse International		79,985		(41,314	)		– 0	–		– 0	–		38,671
Deutsche Bank AG		63,631		(63,631	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		57,607		(57,607	)		– 0	–		– 0	–		– 0	–
Total	$	216,254	$	(164,099	)	$	– 0	–	$	– 0	–	$	52,155	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Brown Brothers Harriman & Co.	$	1,547	$	(1,547	)	$	– 0	–	$	– 0	–	$	– 0	–
Credit Suisse International		41,314		(41,314	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		92,390		(63,631	)		– 0	–		– 0	–		28,759
Goldman Sachs Bank USA/Goldman Sachs International		75,466		(57,607	)		– 0	–		– 0	–		17,859
Total	$	210,717	$	(164,099	)	$	– 0	–	$	– 0	–	$	46,618	^

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

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

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).

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3. Loan Participations and Assignments

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”) or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). A loan is often administered by a bank or other financial institution (the “Lender”) that acts as agent for all holders. The agent administers the terms of the loan as specified in the loan agreement. When investing in Participations, the Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. In addition, when investing in Participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender and only upon receipt of payments by the Lender from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the Lender. When the Fund purchases Assignments from Lenders, it will typically acquire direct rights against the borrower on the loan. These loans may include participations in “bridge loans”, which are loans taken out by borrowers for a short period (typically less than six months) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high-yield bonds issued for the purpose of acquisitions. The Fund may also participate in unfunded loan commitments, which are contractual obligations for investing in future Participations, and may receive a commitment fee based on the amount of the commitment. Under these arrangements, the Fund may receive a fixed rate commitment fee and, if and to the extent the borrower borrows under the facility, the Fund may receive an additional funding fee.

Unfunded loan commitments and funded loans are marked to market daily.

As of October 31, 2021, the Fund had the following unfunded loan commitment which could be extended at the option of borrower pursuant to the respective loan agreement. The unrealized appreciation on such loan was $134.

Borrower	Unfunded Loan Participation Commitment	Funded
Jones DesLauriers Insurance Management, Inc. Delayed Draw Term Loan (Second Lien)	$    5,000	$    – 0 –

As of October 31, 2021, the Fund had no bridge loan commitments outstanding.

During the period ended October 31, 2021, the Fund received commitment fees or additional funding fees in the amount of $25.

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NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares									Amount
	January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020			Year Ended December 31, 2019			January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020			Year Ended December 31, 2019
Class A*
Shares sold		15,725			– 0	–		– 0	–	$	157,857		$	– 0	–	$	– 0	–
Shares issued in reinvestment of dividends		90			– 0	–		– 0	–		899			– 0	–		– 0	–
Net increase		15,815			– 0	–		– 0	–	$	158,756		$	– 0	–	$	– 0	–
Advisor Class
Shares sold		3,689,392			1,342,319			1,524,045		$	36,953,019		$	12,290,493		$	14,445,357
Shares issued in reinvestment of dividends		90,586			121,319			88,873			905,458			1,122,225			846,590
Shares redeemed		(1,335,401	)		(1,709,250	)		(867,925	)		(13,332,322	)		(15,689,987	)		(8,250,021	)
Net increase (decrease)		2,444,577			(245,612	)		744,993		$	24,526,155		$	(2,277,269	)	$	7,041,926
Class Z*
Shares sold		5,880			– 0	–		– 0	–	$	59,180		$	– 0	–	$	– 0	–
Net increase		5,880			– 0	–		– 0	–	$	59,180		$	– 0	–	$	– 0	–

(a) The Fund changed its fiscal year end from December 31 to October 31.

* Commenced distributions on April 30, 2021.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond or stock market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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

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Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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,

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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 in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative

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NOTES TO FINANCIAL STATEMENTS (continued)

Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other

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NOTES TO FINANCIAL STATEMENTS (continued)

short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the period ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal period ended October 31, 2021 and tax years ended December 31, 2020 and December 31, 2019 were as follows:

	October 2021		December 2020		December 2019
Distributions paid from:
Ordinary income	$	2,144,305	$	2,379,537	$	2,205,237
Total taxable distributions paid	$	2,144,305	$	2,379,537	$	2,205,237

As of December 31, 2020, the Fund’s most recent tax year-end, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	189,428
Accumulated capital and other losses		(9,990,151	)(a)
Unrealized appreciation/(depreciation)		1,321,144	(b)
Total accumulated earnings/(deficit)	$	(8,479,579	)(c)

(a) As of December 31, 2020, the Fund’s most recent tax year end, the Fund had a net capital loss carryforward of $9,990,151. During the tax year, the Fund utilized $3,705 of capital loss carry forwards to offset current year net realized gains.

(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 callable bonds, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of December 31, 2020, the Fund’s most recent tax year end, the Fund had a net short-term capital loss carryforward of $5,227,619 and a net long-term capital loss carryforward of $4,762,532, which may be carried forward for an indefinite period.

During the current fiscal period, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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 Capital Stock Outstanding Throughout Each Period

	Class A
	April 30, 2021(a) to October 31, 2021(b)			November 1, 2017 to February 26, 2018(a)			Year Ended October 31, 2017
Net asset value, beginning of period		$  9.98			$  9.71			$  9.46
Income From Investment Operations
Net investment income(c)(d)		.17			.15			.46
Net realized and unrealized gain on investment and foreign currency transactions		.05			(.18	)		.25
Contributions from Affiliates		– 0	–		– 0	–		.00	(e)
Net increase in net asset value from operations		.22			(.03	)		.71
Less: Dividends
Dividends from net investment income		(.22	)		(.12	)		(.42	)
Return of capital		– 0	–		– 0	–		(.04	)
Net asset value, end of period		$  9.98			$  9.56			$  9.71
Total Return
Total investment return based on net asset value(f)*		2.23	%		(.02	)%		7.61	%+
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$158			$3,131			$5,150
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)(h)†		.85	%^		.95	%^		.95	%
Expenses, before waivers/reimbursements(g)(h)†		2.28	%^		3.27	%^		2.64	%
Net investment income(d)		3.43	%^		4.70	%^		4.82	%
Portfolio turnover rate+++		36	%		75	%		65	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%^		.00	%^		.01	%

See footnote summary on page 93-94.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	January 1, 2021 to October 31, 2021(b)			Year Ended December 31,						November 1, 2018 to December 31, 2018(i)			Year Ended October 31,
				2020			2019						2018			2017
Net asset value, beginning of period		$  9.86			$  9.63			$  8.90			$  9.36			$  9.71			$  9.46
Income From Investment Operations
Net investment income(c)(d)		.38			.50			.52			.09			.50			.49
Net realized and unrealized gain (loss) on investment and foreign currency transactions.		.16			.30			.77			(.41	)		(.37	)		.24
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		.00	(e)		.00	(e)
Net increase (decrease) in net asset value from operations		.54			.80			1.29			(.32	)		.13			.73
Less: Dividends and Distributions
Dividends from net investment income		(.42	)		(.57	)		(.56	)		(.14	)		(.48	)		(.43	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		(.05	)
Total dividends and distributions		(.42	)		(.57	)		(.56	)		(.14	)		(.48	)		(.48	)
Net asset value, end of period		$  9.98			$  9.86			$  9.63			$  8.90			$  9.36			$  9.71
Total Return
Total investment return based on net asset value(f)*		5.56	%		8.95	%+		14.77	%+		(3.45	)%		1.32	%**		7.89	%+
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$63,608			$38,751			$40,218			$30,509			$33,990			$4,185
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)(h)†		.51	%^		.70	%		.29	%++		.29	%^++		.33	%		.71	%
Expenses, before waivers/reimbursements(g)(h)†		1.74	%^		2.17	%		1.84	%++		3.25	%^++		2.56	%		2.49	%
Net investment income(d)		4.60	%^		5.41	%		5.45	%		5.73	%^		5.20	%		5.11	%
Portfolio turnover rate+++		36	%		75	%		40	%		5	%		75	%		65	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%^		.00	%		.01	%		.01	%^		.01	%		.01	%

See footnote summary on page 93-94.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	April 30, 2021(a) to October 31 2021(b)			November 1, 2017 to February 26, 2018(a)			Year Ended October 31, 2017
Net asset value, beginning of period		$  9.98			$  9.70			$  9.45
Income From Investment Operations
Net investment income(c)(d)		.18			.16			.49
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.05			(.18	)		.24
Contributions from Affiliates		– 0	–		– 0	–		.00	(e)
Net increase in net asset value from operations		.23			(.02	)		.73
Less: Dividends
Dividends from net investment income		(.23	)		(.13	)		(.43	)
Return of capital		– 0	–		– 0	–		(.05	)
Net asset value, end of period		$  9.98			$  9.55			$  9.70
Total Return
Total investment return based on net asset value(f)*		2.36	%		.14	%		7.91	%+
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$59			$417			$499
Expenses, net of waivers/reimbursements(g)(h)†		.60	%^		.70	%^		.73	%
Expenses, before waivers/reimbursements(g)(h)†		1.92	%^		2.78	%^		1.41	%
Net investment income(d)		3.61	%^		5.04	%^		5.12	%
Portfolio turnover rate+++		36	%		75	%		65	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%^		.00	%^		.01	%

(a) Class A and Class Z shares of the Fund were not in operation from February 26, 2018 until April 30, 2021.

(b) The Fund changed its fiscal year end from December 31 to October 31.

(c) Based on average shares outstanding.

(d) Net of expenses waived/reimbursed by the Adviser.

(e) Amount is less than $.005.

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

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(g) The expense ratios presented below exclude interest expense:

	January 1, 2021 to October 31, 2021(b)			Year Ended						November 1, 2018 to December 31, 2018(k)			Year Ended
				December 31, 2020			December 31, 2019						October 31, 2018			October 31, 2017
Class A
Net of waivers/ reimbursements		.85	%^		N/A			N/A			N/A			.95	%(a)^		.95	%
Before waivers/ reimbursements		2.28	%^		N/A			N/A			N/A			3.27	%(a)^		2.69	%
Advisor Class
Net of waivers/ reimbursements		.51	%^		.70	%		.29	%		.29	%^		.31	%		.70	%
Before waivers/ reimbursements		1.74	%^		2.17	%		1.84	%		3.25	%^		2.54	%		2.54	%
Class Z
Net of waivers/ reimbursements		.60	%^		N/A			N/A			N/A			.70	%(a)^		.73	%
Before waivers/ reimbursements		1.92	%^		N/A			N/A			N/A			2.77	%(a)^		1.47	%

(h) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the year ended December 31, 2019, period ended December 31, 2018, years ended October 31, 2018 and October 31, 2017, such waivers amounted to .01%, .01% (annualized), .01% and .01%, respectively.

(i) The Fund changed its fiscal year end from October 31 to December 31.

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

^ Annualized.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended December 31, 2019, October 31, 2018 and October 31, 2017 by .01%, .03% and .07%, respectively.

** Includes the impact of reimbursements from the Adviser which enhanced the Fund’s performance for the year ended October 31, 2018 by .01%.

+ The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

++ The advisory fee reflected in the Fund’s expense ratio may be higher or lower than the Base Fee plus Performance Adjustment due to the different time periods over which the fee is calculated (i.e., the financial reporting vs. the Performance Period).

+++ Portfolio turnover is calculated for the Fund as a whole for the full fiscal year or period, as applicable, and is not annualized.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of

AB High Yield Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB High Yield Portfolio, formerly known as AB FlexFee High Yield Portfolio (the “Fund”), (one of the portfolios constituting the AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statements of operations for the period from January 1, 2021 to October 31, 2021 and for the year ended December 31, 2020, the statements of changes in net assets for the period from January 1, 2021 to October 31, 2021 and for each of the two years in the period ended December 31, 2020, the financial highlights for each of the periods in the five years ended October 31, 2021 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting the AB Bond Fund, Inc.) at October 31, 2021, the results of its operations for the period from January 1, 2021 to October 31, 2021 and for the year ended December 31, 2020, the changes in its net assets for the period from January 1, 2021 to October 31, 2021 and each of the two years in the period ended December 31, 2020, and its financial highlights for each of the periods in the five years ended October 31 2021, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 29, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the tax year ended December 31, 2020. For foreign shareholders, 69.00% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President William Smith⁽²⁾, Vice President Jacqueline Pincus⁽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 Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110   Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nasvhille, TN 37203   Transfer Agent AllianceBernstein
Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s High Yield Investment Team. Messrs. Distenfeld and Smith and Ms. Pincus are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,+ 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.# Chairman of the Board 80 (2014)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,# 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,# 77 (2014)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,# 73 (2014)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,# 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,# 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,# 69 (2014)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995) where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,# ^ 82 (2014)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Dept.—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

+ Mr. Erzan is an “interested person” of the Portfolio as defined in the Investment Company Act of 1940, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS*, AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Gershon M. Distenfeld 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head of Fixed-Income.
Jacqueline Pincus 35	Vice President	Senior Vice President of the Adviser**, with which she has been associated since 2016.
William Smith 34	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also a Director of US High Yield Credit.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of ABIS**, with which he has been associated since prior to 2016.
Stephen M. Woetzel 50	Controller	Senior Vice President of ABIS**, with which he has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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Board Consideration of Amendment to the Fund’s Advisory Agreement

At the Board Meeting held by video conference on November 3-5, 2020, the Adviser presented its recommendation that the Board of Directors (the “Board” or “Directors”) of AB Bond Fund, Inc. (the “Company”) consider and approve an amendment to the Company’s then-current Advisory Agreement with the Adviser (the “Amended Agreement”) in respect of AB FlexFee^TM High Yield Portfolio (the “Fund”)* to implement an advisory fee with breakpoints at specific asset levels (based on the Fund’s average daily net assets) and eliminate the performance-based advisory fee. The Adviser cited the following reasons for its recommendation:

• The performance-based fee structure has failed to increase investor demand and attract significant assets for the Fund, making it more difficult for the Fund to achieve economies of scale. The Adviser also observed that the Fund’s then-current advisory fee structure was not in line with those of peer funds, noting that few other firms had made a substantial effort to launch fulcrum fee funds since implementation of the performance-based fee structure for the Fund in 2018.

• The methodology used to calculate the performance-based fee is complex, preventing the Fund from being more competitive in the mutual fund marketplace.

• The performance-based fee structure creates uncertainty for investors in reasonably predicting Fund expenses, due to significant fluctuations in advisory fees and total expense ratios that can result from fund performance fluctuations. This was a particular issue in the qualified plan context, where uncertainty about the amount of future fees has been a concern.

At the recommendation of the Adviser, the Board, including a majority of the Directors who are not interested persons of the Company (the “Independent Directors”) as defined in the Investment Company Act of 1940, as amended (“1940 Act”), approved the Amended Agreement between the Company, on behalf of the Fund, and the Adviser, for an initial two-year period, at the Board Meeting. The Board, including the Independent Directors, also recommended approval of the Amended Agreement by stockholders.

At the Board Meeting, the Board also approved, upon recommendation of the Adviser, (i) changing the Fund’s name to “AB High Yield Portfolio”; (ii) changing the benchmark against which the Fund’s performance is compared in the Fund’s prospectus and shareholder reports from the Markit iBoxx USD Liquid High Yield Index to the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index, the index used by the Fund

* Effective April 30, 2021, the Fund changed its name to AB High Yield Portfolio.

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prior to the implementation of the performance-based fee structure; (iii) changing the Fund’s fiscal year end from December 31 to October 31, to be consistent with the other fixed-income mutual funds advised by the Adviser with conventional asset-based advisory fees; and (iv) changing the Fund’s dividend policy to declare dividends daily instead of monthly. The Directors also noted the Adviser’s intent, in connection with these changes, to offer Class A and Class Z shares in addition to Advisor Class shares. Implementation of the foregoing changes and actions was conditioned upon approval by stockholders of the Amended Agreement and would be effective on or about May 1, 2021.

The Directors also considered that the Fund would not bear the expenses relating to the above-referenced changes, including expenses relating to the special meeting of stockholders called to approve the Amended Agreement and the preparation, printing and mailing of the proxy materials and of all related solicitations, in light of the applicable expense limitation agreement and the Adviser’s agreement to bear such expenses to the extent not subject to such expense limitation agreement.

At the Board Meeting, the Directors also approved the continuance of the Fund’s then-current Advisory Agreement for an additional annual term or, if earlier, until such time as the Amended Agreement takes effect.

Prior to their approval of the Amended Agreement and the continuance of the then-current Advisory Agreement, the Directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed Amended Agreement and the proposed continuance of the then-current Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The Directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The Directors also discussed the proposed approvals in private sessions with counsel.

The Directors considered the fact that the Amended Agreement would have terms and conditions substantially identical to those of the then-current Advisory Agreement, except for (i) the absence of the performance-based advisory fee and adoption of a more conventional advisory fee, which would consist of an advisory fee with breakpoints at specific asset levels (based on the Fund’s average daily net assets) under the Amended Agreement and (ii) the change in the name of the Fund.

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

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responsiveness, frankness and attention to concerns raised by the Directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The Directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

The Directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the Directors evaluated, among other things, the reasonableness of the then-current and proposed management fees. In connection with their consideration of the then-current management fee, the Directors considered materials presented to them concerning the SEC’s published guidance on factors that should be considered in connection with fulcrum fee arrangements, including the following factors: (1) the fairness of the fulcrum fee; (2) selection of an appropriate index against which fund performance should be measured; (3) variations in periods used for computing average asset values and performance; (4) length of period over which performance is computed; (5) computation of performance over a rolling period; (6) performance for transitional periods; (7) computation of the performance of the fund and the index with respect to payment of dividends and capital gains distributions; and (8) avoidance of basing significant fee adjustments upon random or insignificant differences. 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 then-current Advisory Agreement and the Amended Agreement, 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 then-current Advisory Agreement and to be provided under the Amended 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

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management team and other senior personnel of the Adviser. The Directors also considered that the Amended Agreement, similar to the then-current Advisory Agreement, provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the Directors. The Directors noted that the Adviser had not requested any reimbursements from the Fund in 2020 through the date of the Board Meeting, in the Fund’s fiscal year ended December 31, 2019, in the two-month fiscal period ended December 31, 2018 and in the fiscal year ended October 31, 2018. 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 then-current Advisory Agreement and to be provided to the Fund under the Amended Agreement.

Costs of Services to be Provided and Profitability

In connection with their approval of the continuance of the Fund’s then-current Advisory Agreement 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 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the Directors. The Directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The Directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The Directors recognized that it is difficult to make comparisons of the profitability of the then-current 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. The Directors noted that, due to the performance fee component of the advisory fee under the then-current Advisory Agreement, profitability would tend to be higher with better performance relative to the Fund’s benchmark index, which they considered to create an appropriate alignment of incentives. The Directors noted that, due to the elimination of the performance fee, profitability in respect of periods after the effective date of the Amended Agreement (if it becomes effective) would no longer be directly affected by investment performance relative to the Fund’s benchmark index.

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The Adviser agreed to provide the Directors with profitability information in connection with future proposed continuances of the Amended Agreement and the Directors recognized that such information for 2021 and subsequent years would differ from that reviewed previously as a result of the elimination of the performance fee.

Fall-Out Benefits

The Directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund, and the money market fund advised by the Adviser in which the Fund invests. including, but not limited to, benefits relating to 12b-1 fees and sales charges to be received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of Class A shares to be offered with the implementation of the Amended Agreement, and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The Directors recognized that the Fund’s unprofitability to the Adviser would be exacerbated without these benefits. The Directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Board Meeting, the Directors reviewed performance information for the Fund’s operations prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Advisor Class shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year period ended July 31, 2020. Based on their review, the Directors concluded that the Fund’s investment performance was acceptable. In connection with their consideration of the Amended Agreement, the Directors noted that the Fund’s performance would have been different had the fee schedule in the Amended Agreement been in effect during such periods.

Management Fees and Other Expenses

The Directors considered the advisory fee rate payable by the Fund to the Adviser under the then-current Advisory Agreement and the proposed advisory fee rate payable by the Fund to the Adviser under the Amended Agreement, and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The Directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The Directors considered the

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Fund’s contractual effective advisory fee rate under the then-current Advisory Agreement against a peer group median. The Directors also compared the Fund’s proposed contractual effective advisory fee rate under the Amended Agreement with a peer group median. The information reviewed by the Directors showed that its proposed contractual effective advisory fee rate under the Amended Agreement was lower than the peer group median.

The Directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule under the then-current Advisory Agreement and the Amended Agreement, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The Directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the Directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The Directors previously 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, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund stockholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and the different risk profile, the Directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The Directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the 1940 Act as these may be varied as a result of exemptive orders issued by the SEC. The Directors also noted that ETFs pay advisory fees pursuant to their

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advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The Directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s operations under the then-current performance-based advisory fee structure, the Directors also considered the total expense ratio of the Advisor Class shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year and the Directors considered the Adviser’s expense cap for the Fund. The Directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The Directors view the expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the Directors concluded that the Fund’s expense ratio was acceptable.

With respect to the Fund’s proposed implementation of an asset-based advisory fee with breakpoints at specific asset levels as provided in the Amended Agreement, the Directors considered the proposed total expense ratio of the Advisor Class shares of the Fund (Class A and Class Z shares will also be offered) in comparison to a peer group and peer universe selected by the 15(c) service provider. The Directors also considered the Adviser’s proposed expense cap for the Fund’s Advisor Class shares, with corresponding expense caps for the other classes of shares, for an initial period to end no earlier than April 30, 2022. The Directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The Directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the Directors concluded that the Fund’s proposed expense ratios were acceptable.

Economies of Scale

The Directors noted that the proposed advisory fee schedule for the Fund in the Amended Agreement, unlike the advisory fee schedule in the then-current Advisory Agreement, contains breakpoints that reduce the fee rates on assets above specified levels. The Directors took into consideration prior presentations by an independent consultant on economies of

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scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The Directors also previously discussed economies of scale with an independent fee consultant. The Directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Board Meeting. The Directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The Directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The Directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The Directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the Directors concluded that the Fund’s stockholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    117

NOTES

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NOTES

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    119

NOTES

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AB HIGH YIELD PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

HY-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB INCOME FUND

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB INCOME FUND    ^|    1

ANNUAL REPORT

December 10, 2021

This report provides management’s discussion of fund performance for the AB Income Fund for the annual reporting period ended October 31, 2021.

The investment objective of the Fund is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB INCOME FUND1
Class A Shares		0.48%		2.48%
Class C Shares		0.22%		1.71%
Advisor Class Shares2		0.73%		2.73%
Class Z Shares2		0.75%		2.78%
Bloomberg US Aggregate Bond Index		1.06%		-0.48%

1 Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance for the six- and 12-month periods ended October 31, 2021, by 0.04% and 0.04%, respectively.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg US Aggregate Bond Index, for the six- and 12-month periods ended October 31, 2021.

During the 12-month period, all share classes outperformed the benchmark, before sales charges. Security selection was the primary contributor, relative to the benchmark, as gains within commercial mortgage-backed securities (“CMBS”), emerging-market sovereign and quasi-sovereign bonds, as well as investment-grade corporate bonds more than offset a loss within US agency mortgages. Sector allocation also contributed, mostly from beneficial off-benchmark allocations to emerging-market corporate and sovereign bonds, credit risk-transfer securities, bank loans and collateralized loan obligations that exceeded losses from an underweight to investment-grade corporate bonds and an overweight to US Treasuries. Currency decisions were a minor contributor to performance. Yield-curve positioning detracted due to an overweight to the five- to 10-year part of the curve, while an underweight to the 20- to 30-year part of

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the curve contributed. Country allocation also detracted due to off-benchmark allocations to Brazil, Australia, Colombia and Canada.

During the six-month period, all share classes underperformed the benchmark, before sales charges. Yield-curve positioning detracted most, as losses from an underweight to the 20- to 30-year part of the curve exceeded gains from being overweight to the 10-year part of the curve. Off-benchmark country allocation to Australia, Brazil and Canada also detracted. Security selection within high-yield corporate bonds, CMBS and investment-grade corporates contributed. Sector allocation and currency decisions were minor contributors to performance during the period.

During both periods, the Fund utilized derivatives in the form of futures, interest rate swaptions and interest rate swaps to manage and hedge duration risk and/or to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used to create synthetic exposure in investment-grade and high-yield credit risk.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada, and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone, and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially CMBS. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US and non-US issuers as well as corporate bonds, with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

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INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments, their agencies or instrumentalities and repurchase agreements relating to US government securities.

The Fund normally invests at least 65% of its total assets in US dollar-denominated securities. The Fund may also invest up to 35% of its total assets in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund may invest no more than 25% of its total assets in securities of issuers in any one country other than the US. The Fund’s investments in foreign securities may include investments in securities of emerging-market countries or of issuers in emerging markets.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings. The Fund may invest in fixed-income securities with any maturity or duration.

The Fund utilizes derivatives, such as options, futures contracts, forwards and swaps to a significant extent, subject to the limits of applicable law. The Fund may, for example, use credit default, interest rate and total return swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The index is not leveraged, whereas the Fund utilizes leverage. 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 bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), 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. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of

abfunds.com AB INCOME FUND    ^|    5

DISCLOSURES AND RISKS (continued)

a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Foreign (Non-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.

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.

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

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

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DISCLOSURES AND RISKS (continued)

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 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges

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DISCLOSURES AND RISKS (continued)

were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

The Fund commenced operations on April 22, 2016. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., a closed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Fund has the same investment objective that the Predecessor Fund had and similar investment strategies and policies. In addition, the Fund has higher expenses (including transfer agency and shareholder servicing fees), and a different advisory fee arrangement than the Predecessor Fund had.

Performance information prior to April 22, 2016 shown in this report reflects the historical performance of the Predecessor Fund based on its NAV. Such performance information may not be representative of performance the Fund would have achieved as an open-end fund under its current investment strategies and policies and expense levels.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Income Fund Advisor Class shares (from 10/31/2011 to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

1 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.54%
1 Year		2.48%		-1.84%
5 Years		3.90%		3.00%
Since Inception2		4.10%		3.30%
CLASS C SHARES						1.91%
1 Year		1.71%		0.72%
5 Years		3.12%		3.12%
Since Inception2		3.34%		3.34%
ADVISOR CLASS SHARES3,4						2.92%
1 Year		2.73%		2.73%
5 Years		4.15%		4.15%
10 Years		4.73%		4.73%
CLASS Z SHARES4						2.99%
1 Year		2.78%		2.78%
Since Inception2		3.42%		3.42%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.80%, 1.55%, 0.55% and 0.48% for Class A, Class C, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs, to 0.77%, 1.52%, 0.52% and 0.52% for Class A, Class C, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2022. Any fees waived and expenses borne by the Adviser through April 22, 2018 under the expense limitations in effect prior to that date may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

3 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund.

4 These share classes are offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-1.85%
5 Years		3.02%
Since Inception1		3.42%
CLASS C SHARES
1 Year		0.79%
5 Years		3.14%
Since Inception1		3.48%
ADVISOR CLASS SHARES2,3
1 Year		2.81%
5 Years		4.18%
10 Years		4.89%
CLASS Z SHARES3
1 Year		2.99%
Since Inception1		3.78%

1 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

2 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund.

3 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

abfunds.com AB INCOME FUND    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,004.80	$	3.99		0.79	%
Hypothetical**	$	1,000	$	1,021.22	$	4.02		0.79	%
Class C
Actual	$	1,000	$	1,002.20	$	7.77		1.54	%
Hypothetical**	$	1,000	$	1,017.44	$	7.83		1.54	%
Advisor Class
Actual	$	1,000	$	1,007.30	$	2.73		0.54	%
Hypothetical**	$	1,000	$	1,022.48	$	2.75		0.54	%
Class Z
Actual	$	1,000	$	1,007.50	$	2.48		0.49	%
Hypothetical**	$	1,000	$	1,022.74	$	2.50		0.49	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $4,643.7

1 All data are as of October 31, 2021. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.7% or less in the following types: Agencies, Asset-Backed Securities, Common Stocks, Local Governments–US Municipal Bonds, Preferred Stocks and Warrants.

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PORTFOLIO SUMMARY (continued)

October 31, 2021 (unaudited)

1 All data are as of October 31, 2021. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.4% or less in the following: Angola, Bahrain, Bermuda, Chile, Costa Rica, Denmark, Dominican Republic, Ecuador, El Salvador, Finland, Germany, Ghana, Honduras, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Kuwait, Lebanon, Macau, Malaysia, Morocco, Netherlands, Nigeria, Norway, Oman, Pakistan, Panama, Peru, Qatar, Saudi Arabia, Senegal, Spain, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, United Arab Emirates and Zambia.

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PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 72.7%
Australia – 2.4%
Australia Government Bond Series 161 0.25%, 11/21/2025(a)	AUD		62,528	$	44,966,614
Series 163 1.00%, 11/21/2031(a)			95,515		65,705,025
					110,671,639
Canada – 3.8%
Canadian Government Bond 1.00%, 09/01/2026	CAD		225,418		177,882,779
Colombia – 0.7%
Colombian TES Series B 5.75%, 11/03/2027	COP		120,958,800		29,390,624
Mexico – 0.7%
Mexican Bonos Series M 20 8.50%, 05/31/2029	MXN		645,000		33,198,875
Peru – 0.0%
Peru Government Bond 6.15%, 08/12/2032	PEN		4,469		1,131,289
Russia – 0.9%
Russian Federal Bond – OFZ Series 6227 7.40%, 07/17/2024	RUB		3,026,338		41,822,563
United States – 64.2%
U.S. Treasury Bonds 1.125%, 08/15/2040	U.S.$		37,958		32,750,292
1.25%, 05/15/2050			33,090		27,960,797
4.50%, 02/15/2036			17,631		24,220,586
5.50%, 08/15/2028(b)(c)(d)			161,400		203,817,937
6.00%, 02/15/2026			30,903		37,257,068
6.125%, 11/15/2027(b)			398,327		509,236,046
6.125%, 08/15/2029			47,418		63,725,347
6.25%, 05/15/2030(b)			122,903		169,835,892
6.375%, 08/15/2027			45,300		58,140,232
6.50%, 11/15/2026			39,144		49,248,045
6.625%, 02/15/2027(b)			106,822		136,264,431
6.875%, 08/15/2025			66,714		81,265,869
7.50%, 11/15/2024			20,000		24,031,250

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
U.S. Treasury Notes 0.25%, 05/31/2025	U.S.$		48,083	$	46,910,879
0.625%, 05/15/2030(b)			118,567		110,249,156
1.50%, 08/15/2026(d)			161,051		163,567,523
1.625%, 10/31/2026(b)			249,722		255,145,956
1.625%, 08/15/2029			14,595		14,777,235
1.75%, 11/15/2029(b)			78,385		80,148,662
2.125%, 07/31/2024(d)			304,188		315,975,389
2.125%, 05/31/2026(b)			274,370		286,588,248
2.25%, 11/15/2025(d)(e)			192,514		201,838,792
2.375%, 08/15/2024			33,381		34,909,224
2.625%, 02/15/2029			9,944		10,748,843
3.125%, 11/15/2028			39,000		43,399,688
					2,982,013,387
Total Governments - Treasuries (cost $3,382,834,767)					3,376,111,156
CORPORATES - INVESTMENT GRADE – 12.5%
Financial Institutions – 7.1%
Banking – 4.1%
AIB Group PLC 4.263%, 04/10/2025(a)			5,750		6,116,102
Ally Financial, Inc. 5.80%, 05/01/2025			1,497		1,706,969
8.00%, 11/01/2031			75		107,377
American Express Co. Series B 3.553% (LIBOR 3 Month + 3.43%), 11/15/2021(f)(g)			576		576,000
Australia & New Zealand Banking Group Ltd. 4.40%, 05/19/2026(a)			200		221,154
4.50%, 03/19/2024(a)			2,577		2,774,811
Banco de Credito del Peru 3.125%, 07/01/2030(a)			3,765		3,723,773
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(a)			3,998		4,415,991
Banco Santander SA 5.179%, 11/19/2025			4,000		4,489,320
Bank of America Corp. Series DD 6.30%, 03/10/2026(f)			2,526		2,907,754
Series X 6.25%, 09/05/2024(f)			6,520		7,123,491

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series Z 6.50%, 10/23/2024(f)	U.S.$		2,072	$	2,298,698
Bank of New York Mellon Corp. (The) Series E 3.542% (LIBOR 3 Month + 3.42%), 12/20/2021(f)(g)			844		846,414
Series G 4.70%, 09/20/2025(f)			992		1,079,822
Barclays Bank PLC 6.86%, 06/15/2032(a)(f)			656		886,755
Barclays PLC 7.125%, 06/15/2025(f)	GBP		333		502,932
7.25%, 03/15/2023(a)(f)			1,350		1,945,075
7.875%, 03/15/2022(a)(f)	U.S.$		205		209,551
BBVA Bancomer SA/Texas 5.875%, 09/13/2034(a)			5,343		5,809,845
BNP Paribas SA 6.75%, 03/14/2022(a)(f)			1,296		1,319,808
CIT Group, Inc. 3.929%, 06/19/2024			1,568		1,631,661
Citigroup, Inc. 3.875%, 02/18/2026(f)			3,286		3,324,939
5.95%, 01/30/2023(f)			2,055		2,136,234
Series T 6.25%, 08/15/2026(f)			1,388		1,602,557
Series U 5.00%, 09/12/2024(f)			2,540		2,625,471
Series V 4.70%, 01/30/2025(f)			1,811		1,845,119
Series W 4.00%, 12/10/2025(f)			2,865		2,920,782
Comerica, Inc. 5.625%, 07/01/2025(f)			8,000		8,878,880
Credit Agricole SA 8.125%, 12/23/2025(a)(f)			4,972		5,968,041
Danske Bank A/S 3.244%, 12/20/2025(a)			200		210,178
5.00%, 01/12/2022(a)			478		481,934
5.375%, 01/12/2024(a)			1,459		1,586,487
5.875%, 04/06/2022(a)(f)	EUR		3,302		3,891,011
Discover Bank 3.45%, 07/27/2026	U.S.$		500		536,275
4.682%, 08/09/2028			8,350		8,828,538
Goldman Sachs Group, Inc. (The) Series O 5.30%, 11/10/2026(f)			760		833,811

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
HSBC Holdings PLC 6.00%, 09/29/2023(a)(f)	EUR		558	$	696,523
6.375%, 03/30/2025(f)	U.S.$		1,942		2,115,576
ING Groep NV 6.50%, 04/16/2025(f)			6,341		6,968,949
6.75%, 04/16/2024(a)(f)			3,383		3,681,008
6.875%, 04/16/2022(a)(f)			515		527,236
JPMorgan Chase & Co. Series I 3.599% (LIBOR 3 Month + 3.47%), 01/30/2022(f)(g)			3,123		3,134,212
Series S 6.75%, 02/01/2024(f)			2,998		3,270,188
Series V 3.451% (LIBOR 3 Month + 3.32%), 01/01/2022(f)(g)			1,561		1,565,308
Series Z 3.932% (LIBOR 3 Month + 3.80%), 02/01/2022(f)(g)			2,673		2,689,546
Lloyds Banking Group PLC 4.50%, 11/04/2024			4,360		4,745,032
Morgan Stanley Series H 3.734% (LIBOR 3 Month + 3.61%), 01/15/2022(f)(g)			724		727,367
Nationwide Building Society 4.302%, 03/08/2029(a)			2,000		2,227,020
Nordea Bank Abp 6.625%, 03/26/2026(a)(f)			8,725		9,962,379
PNC Financial Services Group, Inc. (The) Series O 3.81% (LIBOR 3 Month + 1.68%), 02/01/2022(f)(g)			1,247		1,251,315
Santander Holdings USA, Inc. 4.40%, 07/13/2027			463		515,213
Societe Generale SA 4.75%, 11/24/2025(a)			8,825		9,665,493
Standard Chartered PLC 1.639% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(f)(g)			7,800		7,511,088
7.75%, 04/02/2023(a)(f)			265		283,606
Swedbank AB 6.00%, 03/17/2022(a)(f)			200		203,484
Series NC5 5.625%, 09/17/2024(a)(f)			8,600		9,246,204
Truist Financial Corp. Series P 4.95%, 09/01/2025(f)			10,721		11,664,662

18    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series Q 5.10%, 03/01/2030(f)	U.S.$		2,924	$	3,294,266
UBS Group AG 7.00%, 01/31/2024-02/19/2025(a)(f)			3,569		3,880,221
UniCredit SpA 2.569%, 09/22/2026(a)			4,320		4,344,926
					190,534,382
Brokerage – 0.1%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(f)			6,567		7,228,954
Finance – 1.2%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 2.875%, 08/14/2024			373		386,305
3.00%, 10/29/2028			3,281		3,330,576
3.30%, 01/23/2023			150		154,207
3.875%, 01/23/2028			582		623,980
6.50%, 07/15/2025			861		997,675
Aircastle Ltd. 2.85%, 01/26/2028(a)			1,242		1,251,253
4.125%, 05/01/2024			678		716,280
4.25%, 06/15/2026			163		176,684
4.40%, 09/25/2023			1,716		1,816,849
5.00%, 04/01/2023			140		147,811
5.25%, 08/11/2025(a)			5,846		6,476,199
Aviation Capital Group LLC 1.95%, 01/30/2026-09/20/2026(a)			5,809		5,709,809
3.50%, 11/01/2027(a)			1,437		1,498,949
4.125%, 08/01/2025(a)			1,592		1,700,383
4.375%, 01/30/2024(a)			1,694		1,798,096
4.875%, 10/01/2025(a)			1,315		1,437,939
5.50%, 12/15/2024(a)			4,722		5,246,284
GE Capital Funding LLC 4.40%, 05/15/2030			3,510		4,105,647
Huarong Finance 2017 Co., Ltd. 4.75%, 04/27/2027(a)			400		390,125
Huarong Finance II Co., Ltd. 5.50%, 01/16/2025(a)			7,507		7,546,881
Synchrony Financial 3.95%, 12/01/2027			8,904		9,704,381
					55,216,313
Insurance – 1.1%
ACE Capital Trust II 9.70%, 04/01/2030			750		1,120,470

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Assicurazioni Generali SpA 5.50%, 10/27/2047(a)	EUR		6,630	$	9,274,544
Credit Agricole Assurances SA 4.75%, 09/27/2048(a)			3,200		4,456,463
Fairfax Financial Holdings Ltd. 8.30%, 04/15/2026	U.S.$		5,000		6,116,800
Hartford Financial Services Group, Inc. (The) Series ICON 2.25% (LIBOR 3 Month + 2.13%), 02/12/2047(a)(g)			3,275		3,157,002
MetLife Capital Trust IV 7.875%, 12/15/2037(a)			4,117		5,727,365
Prudential Financial, Inc. 5.20%, 03/15/2044			4,029		4,294,390
5.625%, 06/15/2043			2,868		3,017,681
Voya Financial, Inc. 5.65%, 05/15/2053			12,065		12,669,094
					49,833,809
Other Finance – 0.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			710		774,120
REITs – 0.6%
Brixmor Operating Partnership LP 4.05%, 07/01/2030			2,215		2,445,537
GLP Capital LP/GLP Financing II, Inc. 5.25%, 06/01/2025			886		983,859
5.375%, 04/15/2026			283		319,422
Kite Realty Group LP 4.00%, 10/01/2026			515		548,429
MPT Operating Partnership LP/MPT Finance Corp. 4.625%, 08/01/2029			1,047		1,108,679
5.00%, 10/15/2027			75		78,933
Office Properties Income Trust 3.45%, 10/15/2031			2,398		2,341,647
Omega Healthcare Investors, Inc. 4.50%, 01/15/2025			336		363,216
Regency Centers LP 3.60%, 02/01/2027			1,700		1,849,566
Spirit Realty LP 3.20%, 01/15/2027			2,453		2,584,677
3.40%, 01/15/2030			1,800		1,896,048
4.45%, 09/15/2026			1,010		1,117,605

20    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
STORE Capital Corp. 4.625%, 03/15/2029	U.S.$		1,143	$	1,289,441
Trust Fibra Uno 4.869%, 01/15/2030(a)			4,814		5,139,848
VEREIT Operating Partnership LP 3.40%, 01/15/2028			2,588		2,777,907
4.625%, 11/01/2025			1,286		1,434,083
4.875%, 06/01/2026			459		518,849
					26,797,746
					330,385,324
Industrial – 4.7%
Basic – 0.5%
Anglo American Capital PLC 5.625%, 04/01/2030(a)			3,960		4,731,705
ArcelorMittal SA 7.00%, 10/15/2039			1,180		1,646,124
Arconic Corp. 6.00%, 05/15/2025(a)			1,765		1,853,321
CF Industries, Inc. 4.95%, 06/01/2043			75		91,489
Gold Fields Orogen Holdings BVI Ltd. 5.125%, 05/15/2024(a)			1,445		1,538,744
GTL Trade Finance, Inc. 7.25%, 04/16/2044(a)			274		363,786
GTL Trade Finance, Inc./Gerdau Holdings, Inc. 5.893%, 04/29/2024(a)			328		356,761
GUSAP III LP 4.25%, 01/21/2030(a)			1,491		1,565,736
Industrias Penoles SAB de CV 5.65%, 09/12/2049(a)			970		1,175,701
MEGlobal Canada ULC 5.00%, 05/18/2025(a)			1,988		2,174,748
Nexa Resources SA 5.375%, 05/04/2027(a)			5,600		5,942,300
Suzano Austria GmbH 3.75%, 01/15/2031			1,304		1,300,740
5.00%, 01/15/2030			2,100		2,247,630
7.00%, 03/16/2047(a)			478		598,599
					25,587,384
Capital Goods – 0.1%
General Electric Co. Series D 3.446% (LIBOR 3 Month + 3.33%), 12/15/2021(f)(g)			1,203		1,172,949

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Westinghouse Air Brake Technologies Corp. 4.95%, 09/15/2028	U.S.$		2,060	$	2,364,365
					3,537,314
Communications - Media – 0.2%
Prosus NV 3.68%, 01/21/2030(a)			5,224		5,321,297
4.027%, 08/03/2050(a)			1,123		1,050,005
Weibo Corp. 3.50%, 07/05/2024			4,574		4,734,547
					11,105,849
Communications - Telecommunications – 0.1%
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(a)			1,741		1,840,066
5.152%, 03/20/2028(a)			1,990		2,246,431
					4,086,497
Consumer Cyclical - Automotive – 0.4%
General Motors Co. 6.125%, 10/01/2025			1,290		1,495,304
6.80%, 10/01/2027			1,832		2,257,445
General Motors Financial Co., Inc. 5.25%, 03/01/2026			146		165,202
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(a)			7,173		7,565,363
Lear Corp. 3.50%, 05/30/2030			855		910,772
3.80%, 09/15/2027			1,378		1,504,707
4.25%, 05/15/2029			545		608,662
Nissan Motor Acceptance Co. LLC 2.80%, 01/13/2022(a)			225		225,875
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)			4,615		5,003,306
					19,736,636
Consumer Cyclical - Other – 0.0%
Lennar Corp. 4.75%, 11/29/2027			75		85,523
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			1,526		1,729,828
					1,815,351

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.3%
Altria Group, Inc. 4.80%, 02/14/2029	U.S.$		3,205	$	3,653,155
BAT Capital Corp. 2.726%, 03/25/2031			2,470		2,407,904
4.906%, 04/02/2030			5,400		6,121,710
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(a)			1,267		1,252,747
					13,435,516
Energy – 1.6%
Boardwalk Pipelines LP 5.95%, 06/01/2026			1,798		2,088,413
Cenovus Energy, Inc. 4.40%, 04/15/2029			2,000		2,240,480
Continental Resources, Inc./OK 5.75%, 01/15/2031(a)			2,501		2,996,048
Ecopetrol SA 4.625%, 11/02/2031			1,135		1,126,488
5.875%, 09/18/2023-05/28/2045			813		837,950
6.875%, 04/29/2030			4,658		5,368,345
Empresa Electrica Cochrane SpA 5.50%, 05/14/2027(a)			884		901,852
Enable Midstream Partners LP 4.40%, 03/15/2027			8,139		8,897,962
4.95%, 05/15/2028			452		505,508
Energy Transfer LP 5.50%, 06/01/2027			7,425		8,601,714
Eni SpA 4.25%, 05/09/2029(a)			1,969		2,230,562
Hess Corp. 7.30%, 08/15/2031			8,898		11,977,242
Hunt Oil Co. of Peru LLC Sucursal Del Peru 6.375%, 06/01/2028(a)			1,143		1,123,212
Oleoducto Central SA 4.00%, 07/14/2027(a)			1,169		1,194,791
ONEOK, Inc. 4.35%, 03/15/2029			3,952		4,398,536
5.85%, 01/15/2026			7,452		8,671,296
6.35%, 01/15/2031			1,880		2,390,100
Plains All American Pipeline LP/PAA Finance Corp. 4.50%, 12/15/2026			1,287		1,418,544
4.65%, 10/15/2025			3,902		4,284,396
Raizen Fuels Finance SA 5.30%, 01/20/2027(a)			2,218		2,429,819
					73,683,258

abfunds.com AB INCOME FUND    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Services – 0.1%
Expedia Group, Inc. 3.25%, 02/15/2030	U.S.$		2,340	$	2,408,866
6.25%, 05/01/2025(a)			708		808,735
					3,217,601
Technology – 0.6%
Baidu, Inc. 3.075%, 04/07/2025			797		827,589
3.425%, 04/07/2030			225		234,562
Broadcom, Inc. 3.187%, 11/15/2036(a)			8,786		8,623,371
Dell International LLC/EMC Corp. 4.90%, 10/01/2026			4,940		5,632,291
NXP BV/NXP Funding LLC 5.35%, 03/01/2026(a)			3,499		3,996,077
5.55%, 12/01/2028(a)			1,130		1,363,351
VMware, Inc. 4.50%, 05/15/2025			5,333		5,880,646
					26,557,887
Transportation - Airlines – 0.6%
Delta Air Lines, Inc. 7.00%, 05/01/2025(a)			4,659		5,450,611
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a)			1,640		1,822,597
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. 6.50%, 06/20/2027(a)			8,739		9,508,125
Southwest Airlines Co. 5.25%, 05/04/2025			9,941		11,144,060
					27,925,393
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(a)			378		402,643
5.875%, 07/05/2034(a)			1,672		1,925,703
					2,328,346
Transportation - Services – 0.1%
Adani Ports & Special Economic Zone Ltd. 4.00%, 07/30/2027(a)			4,585		4,722,183
					217,739,215
Utility – 0.7%
Electric – 0.7%
Adani Transmission Ltd. 4.00%, 08/03/2026(a)			3,064		3,229,265

24    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a)	U.S.$		2,474	$	2,540,952
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(a)			3,169		2,577,387
Colbun SA 3.15%, 03/06/2030(a)			209		209,758
ComEd Financing III 6.35%, 03/15/2033			3,462		4,251,405
Empresas Publicas de Medellin ESP 4.25%, 07/18/2029(a)			3,775		3,668,356
4.375%, 02/15/2031(a)			5,315		5,134,955
Engie Energia Chile SA 3.40%, 01/28/2030(a)			6,432		6,427,176
Kallpa Generacion SA 4.125%, 08/16/2027(a)			2,562		2,655,353
LLPL Capital Pte Ltd. 6.875%, 02/04/2039(a)			3,129		3,589,712
					34,284,319
Total Corporates - Investment Grade (cost $548,772,345)					582,408,858
CORPORATES - NON-INVESTMENT GRADE – 12.4%
Industrial – 9.9%
Basic – 0.6%
Axalta Coating Systems LLC 3.375%, 02/15/2029(a)			801		762,096
Cleveland-Cliffs, Inc. 4.875%, 03/01/2031(a)			962		1,002,702
Diamond BC BV 4.625%, 10/01/2029(a)			1,004		1,011,811
ERP Iron Ore, LLC 9.039%, 12/31/2019(h)(i)(j)(k)(l)			118		89,745
Glatfelter Corp. 4.75%, 11/15/2029(a)			1,687		1,718,614
Graham Packaging Co., Inc. 7.125%, 08/15/2028(a)			454		467,075
Graphic Packaging International LLC 4.75%, 07/15/2027(a)			1,032		1,117,016
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. 9.00%, 07/01/2028(a)			2,965		3,212,548
INEOS Group Holdings SA 5.375%, 08/01/2024(a)	EUR		3,215		3,718,435
INEOS Quattro Finance 1 PLC 3.75%, 07/15/2026(a)			107		124,850

abfunds.com AB INCOME FUND    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC 6.00%, 09/15/2028(a)	U.S.$		626	$	644,567
Joseph T Ryerson & Son, Inc. 8.50%, 08/01/2028(a)			1,808		2,019,229
Kleopatra Finco SARL 4.25%, 03/01/2026(a)	EUR		2,779		3,081,421
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(h)(i)(j)(k)(m)	U.S.$		1,407		– 0	–
Peabody Energy Corp. 8.50% (6.00% Cash and 2.50% PIK), 12/31/2024(a)(l)			1,038		977,070
PIC AU Holdings LLC/PIC AU Holdings Corp. 10.00%, 12/31/2024(a)			1,158		1,185,120
Roller Bearing Co. of America, Inc. 4.375%, 10/15/2029(a)			667		680,120
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(a)			3,282		3,317,413
Unifrax Escrow Issuer Corp. 5.25%, 09/30/2028(a)			360		360,162
7.50%, 09/30/2029(a)			280		278,379
Valvoline, Inc. 4.25%, 02/15/2030(a)			1,485		1,507,290
WR Grace Holdings LLC 5.625%, 08/15/2029(a)			1,194		1,204,077
					28,479,740
Capital Goods – 0.6%
ARD Finance SA 6.50% (6.50% Cash or 7.25% PIK), 06/30/2027(a)(l)			5,393		5,648,574
Bombardier, Inc. 7.50%, 12/01/2024-03/15/2025(a)			2,675		2,764,169
7.875%, 04/15/2027(a)			1,946		2,023,782
Cleaver-Brooks, Inc. 7.875%, 03/01/2023(a)			1,258		1,241,608
F-Brasile SpA/F-Brasile US LLC Series XR 7.375%, 08/15/2026(a)			2,778		2,819,726
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			1,047		1,082,336
GFL Environmental, Inc. 4.00%, 08/01/2028(a)			2,642		2,580,362
5.125%, 12/15/2026(a)			273		285,877
LSB Industries, Inc. 6.25%, 10/15/2028(a)			1,035		1,045,888

26    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Madison IAQ LLC 5.875%, 06/30/2029(a)	U.S.$		3,460		$	3,434,050
TK Elevator Holdco GmbH 7.625%, 07/15/2028(a)			1,008			1,068,803
TransDigm, Inc. 6.25%, 03/15/2026(a)			33			34,470
Triumph Group, Inc. 6.25%, 09/15/2024(a)			1,309			1,307,704
7.75%, 08/15/2025			362			367,922
8.875%, 06/01/2024(a)			1,479			1,629,740
Trivium Packaging Finance BV 3.75%, 08/15/2026(a)	EUR		100			116,236
						27,451,247
Communications - Media – 1.1%
Advantage Sales & Marketing, Inc. 1.00%, 10/28/2027	U.S.$		1,290			1,297,243
6.50%, 11/15/2028(a)			5,620			5,863,121
Altice Financing SA 5.75%, 08/15/2029(a)			7,170			7,061,446
AMC Networks, Inc. 4.25%, 02/15/2029			4,309			4,246,045
Arches Buyer, Inc. 6.125%, 12/01/2028(a)			879			888,898
Banijay Entertainment SASU 3.50%, 03/01/2025(a)	EUR		600			693,378
5.375%, 03/01/2025(a)	U.S.$		1,955			2,012,262
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030-06/01/2033(a)			10,147			10,167,261
CSC Holdings LLC 3.375%, 02/15/2031(a)			459			417,901
5.00%, 11/15/2031(a)			2,775			2,577,586
DISH DBS Corp. 7.75%, 07/01/2026			45			50,088
iHeartCommunications, Inc. 6.375%, 05/01/2026			0	**		367
8.375%, 05/01/2027			147			157,031
LCPR Senior Secured Financing DAC 6.75%, 10/15/2027(a)			753			794,498
Mav Acquisition Corp. 5.75%, 08/01/2028(a)			4,782			4,704,819
Meredith Corp. 6.875%, 02/01/2026			293			303,730
National CineMedia LLC 5.875%, 04/15/2028(a)			2,267			2,100,942

abfunds.com AB INCOME FUND    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Scripps Escrow II, Inc. 5.375%, 01/15/2031(a)	U.S.$		2,163	$	2,120,865
Sinclair Television Group, Inc. 5.50%, 03/01/2030(a)			2,251		2,152,654
Sirius XM Radio, Inc. 4.00%, 07/15/2028(a)			1,093		1,100,356
Summer BC Bidco B LLC 5.50%, 10/31/2026(a)			876		890,708
Univision Communications, Inc. 6.625%, 06/01/2027(a)			10		10,822
					49,612,021
Communications - Telecommunications – 0.5%
Altice France SA/France 5.125%, 07/15/2029(a)			1,446		1,408,100
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(a)			1,823		1,890,269
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			1,042		1,079,523
Iliad Holding SAS 6.50%, 10/15/2026(a)			1,880		1,937,096
7.00%, 10/15/2028(a)			1,525		1,570,887
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(j)(n)			4,941		2,494,217
Kaixo Bondco Telecom SA 5.125%, 09/30/2029(a)	EUR		3,266		3,744,725
Telecom Italia Capital SA 7.721%, 06/04/2038	U.S.$		75		96,080
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(a)			6,529		6,563,734
Zayo Group Holdings, Inc. 6.125%, 03/01/2028(a)			2,496		2,438,792
					23,223,423
Consumer Cyclical - Automotive – 0.5%
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(a)	EUR		360		425,898
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(a)	U.S.$		2,682		2,803,119
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(h)(i)(j)(m)			2,273		– 0	–
(First Lien) 11.00%, 10/31/2024(h)(i)(m)			933		– 0	–
Ford Motor Co. 8.50%, 04/21/2023			800		876,640

28    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
IHO Verwaltungs GmbH 3.625% (3.625% Cash or 4.375% PIK), 05/15/2025(a)(l)	EUR		560	$	657,276
3.875% (3.875% Cash or 4.625% PIK), 05/15/2027(a)(l)			623		736,860
Jaguar Land Rover Automotive PLC 5.50%, 07/15/2029(a)	U.S.$		4,207		4,059,461
5.875%, 01/15/2028(a)			546		544,449
7.75%, 10/15/2025(a)			1,661		1,793,299
Mclaren Finance PLC 7.50%, 08/01/2026(a)			6,471		6,466,729
PM General Purchaser LLC 9.50%, 10/01/2028(a)			1,509		1,573,585
Tenneco, Inc. 5.00%, 07/15/2026(b)			680		663,109
7.875%, 01/15/2029(a)			1,764		1,928,652
					22,529,077
Consumer Cyclical - Entertainment – 0.9%
Carnival Corp. 4.00%, 08/01/2028(a)			3,341		3,338,862
5.75%, 03/01/2027(a)			6,142		6,249,485
9.875%, 08/01/2027(a)			1,508		1,737,985
Cedar Fair LP 5.25%, 07/15/2029			996		1,032,215
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a)			9,553		9,935,025
NCL Corp., Ltd. 5.875%, 03/15/2026(a)			2,194		2,202,995
Royal Caribbean Cruises Ltd. 5.50%, 08/31/2026-04/01/2028(a)			4,699		4,780,988
10.875%, 06/01/2023(a)			2,193		2,455,064
11.50%, 06/01/2025(a)			2,358		2,684,418
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(a)			4,017		4,302,448
Six Flags Theme Parks, Inc. 7.00%, 07/01/2025(a)			820		872,086
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			1,057		1,025,015
13.00%, 05/15/2025(a)			1,888		2,164,573
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			1,376		1,370,537
VOC Escrow Ltd. 5.00%, 02/15/2028(a)			75		74,594
					44,226,290

abfunds.com AB INCOME FUND    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Other – 0.5%
Adams Homes, Inc. 7.50%, 02/15/2025(a)	U.S.$		2,232	$	2,334,002
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 4.875%, 02/15/2030(a)			937		939,783
6.25%, 09/15/2027(a)			1,846		1,926,744
Caesars Entertainment, Inc. 4.625%, 10/15/2029(a)			1,713		1,723,227
Empire Communities Corp. 7.00%, 12/15/2025(a)			1,386		1,442,188
Everi Holdings, Inc. 5.00%, 07/15/2029(a)			614		628,810
Forterra Finance LLC/FRTA Finance Corp. 6.50%, 07/15/2025(a)			1,383		1,473,517
Hilton Domestic Operating Co., Inc. 5.375%, 05/01/2025(a)			314		327,637
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)			1,896		1,890,084
5.00%, 06/01/2029(a)			682		696,001
Installed Building Products, Inc. 5.75%, 02/01/2028(a)			846		887,869
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(a)			810		850,743
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. 5.625%, 09/01/2029(a)			2,392		2,436,850
5.875%, 09/01/2031(a)			2,392		2,439,912
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(a)			688		682,482
Travel + Leisure Co. 4.625%, 03/01/2030(a)			717		743,386
6.625%, 07/31/2026(a)			2,404		2,683,754
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.50%, 03/01/2025(a)			75		76,303
					24,183,292
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(a)			3,046		3,038,537

30    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
IRB Holding Corp. 6.75%, 02/15/2026(a)	U.S.$		1,031	$	1,055,105
					4,093,642
Consumer Cyclical - Retailers – 0.6%
Arko Corp. 5.125%, 11/15/2029(a)			2,345		2,286,469
Bath & Body Works, Inc. 5.25%, 02/01/2028			252		271,903
6.75%, 07/01/2036			704		845,567
6.875%, 11/01/2035			2,210		2,684,399
7.50%, 06/15/2029			236		266,647
9.375%, 07/01/2025(a)			185		230,260
Dufry One BV 2.50%, 10/15/2024(a)	EUR		1,810		2,061,791
Foundation Building Materials, Inc. 6.00%, 03/01/2029(a)	U.S.$		1,143		1,106,744
Gap, Inc. (The) 3.625%, 10/01/2029(a)			956		937,597
3.875%, 10/01/2031(a)			718		704,408
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)			2,159		2,182,360
7.875%, 05/01/2029(a)			4,529		4,588,556
PetSmart, Inc./PetSmart Finance Corp. 7.75%, 02/15/2029(a)			1,480		1,601,789
Rite Aid Corp. 7.50%, 07/01/2025(a)			2,417		2,429,061
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a)			1,365		1,421,497
SRS Distribution, Inc. 6.125%, 07/01/2029(a)			548		563,695
Staples, Inc. 7.50%, 04/15/2026(a)			1,173		1,187,932
10.75%, 04/15/2027(a)			1,108		1,057,708
TPro Acquisition Corp. 11.00%, 10/15/2024(a)			1,216		1,323,944
William Carter Co. (The) 5.50%, 05/15/2025(a)			154		161,143
					27,913,470
Consumer Non-Cyclical – 0.8%
AdaptHealth LLC 4.625%, 08/01/2029(a)			241		238,689
5.125%, 03/01/2030(a)			1,286		1,293,279
6.125%, 08/01/2028(a)			1,265		1,341,672

abfunds.com AB INCOME FUND    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 4.625%, 01/15/2027(a)	U.S.$		799	$	835,978
4.875%, 02/15/2030(a)			82		87,882
Bausch Health Americas, Inc. 8.50%, 01/31/2027(a)			223		237,301
Bausch Health Cos., Inc. 6.125%, 04/15/2025(a)			363		369,980
CHS/Community Health Systems, Inc. 6.875%, 04/15/2029(a)			2,079		2,138,605
Cidron Aida Finco SARL 5.00%, 04/01/2028(a)	EUR		496		564,718
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)	U.S.$		642		619,292
Grifols Escrow Issuer SA 4.75%, 10/15/2028(a)			1,399		1,421,720
Jazz Securities DAC 4.375%, 01/15/2029(a)			1,278		1,314,679
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5.50%, 04/15/2025(a)(j)(n)			548		246,682
5.625%, 10/15/2023(a)(j)(n)			107		48,027
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(a)			1,420		1,413,170
5.25%, 10/01/2029(a)			2,874		2,921,105
Option Care Health, Inc. 4.375%, 10/31/2029(a)			2,912		2,940,567
Organon & Co./Organon Foreign Debt Co-Issuer BV 5.125%, 04/30/2031(a)			1,527		1,574,948
Radiology Partners, Inc. 9.25%, 02/01/2028(a)			3,294		3,492,826
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			4,840		5,107,119
Sunshine Mid BV 6.50%, 05/15/2026(a)	EUR		2,077		2,471,265
Triton Water Holdings, Inc. 6.25%, 04/01/2029(a)	U.S.$		1,264		1,263,140
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			656		680,475
US Foods, Inc. 4.75%, 02/15/2029(a)			3,990		4,038,598
Vizient, Inc. 6.25%, 05/15/2027(a)			561		587,030
					37,248,747

32    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 2.1%
Antero Resources Corp. 8.375%, 07/15/2026(a)	U.S.$		655	$	737,150
Athabasca Oil Corp. 9.75%, 11/01/2026(m)			3,771		3,799,094
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			2,125		2,284,290
Bonanza Creek Energy, Inc. 5.00%, 10/15/2026(a)			2,069		2,089,773
7.50%, 04/30/2026			55		55,712
Callon Petroleum Co. 8.00%, 08/01/2028(a)			3,229		3,253,347
Citgo Holding, Inc. 9.25%, 08/01/2024(a)			737		752,661
CITGO Petroleum Corp. 7.00%, 06/15/2025(a)			2,880		2,965,622
CNX Resources Corp. 6.00%, 01/15/2029(a)			1,514		1,597,648
Comstock Resources, Inc. 5.875%, 01/15/2030(a)			2,852		2,966,508
CQP Holdco LP/BIP-V Chinook Holdco LLC 5.50%, 06/15/2031(a)			2,348		2,452,204
Diamond Foreign Asset Co./Diamond Finance LLC 9.00% (9.00% Cash or 13.00 % PIK), 04/22/2027(a)(l)			87		87,678
9.00% (9.00% Cash or 13.00 % PIK), 04/22/2027(l)			76		76,680
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(a)			1,100		1,149,841
EnLink Midstream LLC 5.625%, 01/15/2028(a)			4,206		4,462,061
EnLink Midstream Partners LP 4.40%, 04/01/2024			318		332,320
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026			1,149		1,112,588
6.50%, 10/01/2025			179		176,351
7.75%, 02/01/2028			4,346		4,299,976
8.00%, 01/15/2027			1,356		1,362,861
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			1,924		1,993,149
Gulfport Energy Corp. 6.00%, 10/15/2024(j)			438		24,090
6.375%, 05/15/2025-01/15/2026(j)			2,545		139,975
6.625%, 05/01/2023(j)			236		12,980

abfunds.com AB INCOME FUND    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Gulfport Energy Operating Corp. 8.00%, 05/17/2026(a)	U.S.$		943	$	1,043,534
Harbour Energy PLC 5.50%, 10/15/2026(a)			2,591		2,593,539
Hess Midstream Operations LP 4.25%, 02/15/2030(a)			636		636,343
5.625%, 02/15/2026(a)			2,739		2,836,070
Independence Energy Finance LLC 7.25%, 05/01/2026(a)			2,362		2,458,866
Ithaca Energy North Sea PLC 9.00%, 07/15/2026(a)			2,194		2,261,663
ITT Holdings LLC 6.50%, 08/01/2029(a)			3,258		3,266,210
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			1,294		1,262,012
7.50%, 01/15/2028(a)			1,372		1,314,966
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			3,422		3,334,534
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			6,150		6,243,664
NGL Energy Partners LP/NGL Energy Finance Corp. 7.50%, 11/01/2023			1,441		1,390,147
Occidental Petroleum Corp. 3.20%, 08/15/2026			771		783,714
5.875%, 09/01/2025			1,121		1,244,310
8.00%, 07/15/2025			1,755		2,076,025
8.50%, 07/15/2027			891		1,113,937
8.875%, 07/15/2030			891		1,208,339
PBF Holding Co. LLC/PBF Finance Corp. 9.25%, 05/15/2025(a)			2,420		2,348,150
Renewable Energy Group, Inc. 5.875%, 06/01/2028(a)			550		578,358
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			1,560		1,570,405
Sunnova Energy Corp. 5.875%, 09/01/2026(a)			1,566		1,598,463
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.00%, 01/15/2032(a)			4,769		4,919,319
6.50%, 07/15/2027			775		833,133
Transocean Phoenix 2 Ltd. 7.75%, 10/15/2024(a)			400		407,123
Transocean, Inc. 7.50%, 01/15/2026(a)			1,061		855,261
8.00%, 02/01/2027(a)			2,513		1,921,390

34    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Vantage Drilling International 7.125%, 04/01/2023(h)(i)(j)	U.S.$		3,068	$	– 0	–
Venture Global Calcasieu Pass LLC 4.125%, 08/15/2031(a)			1,325		1,372,488
Western Midstream Operating LP 3.95%, 06/01/2025			207		218,108
4.65%, 07/01/2026			3,058		3,312,640
4.75%, 08/15/2028			1,490		1,639,089
5.30%, 02/01/2030			1,254		1,374,409
					96,200,768
Other Industrial – 0.0%
KAR Auction Services, Inc. 5.125%, 06/01/2025(a)			75		75,352
Services – 0.8%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.00%, 06/01/2029(a)			1,258		1,238,979
9.75%, 07/15/2027(a)			1,513		1,632,920
ANGI Group LLC 3.875%, 08/15/2028(a)			458		448,093
APX Group, Inc. 5.75%, 07/15/2029(a)			5,817		5,766,043
6.75%, 02/15/2027(a)			3,506		3,709,839
Cars.com, Inc. 6.375%, 11/01/2028(a)			2,427		2,537,162
eDreams ODIGEO SA 5.50%, 09/01/2023(a)	EUR		1,227		1,410,157
Garda World Security Corp. 9.50%, 11/01/2027(a)	U.S.$		3,358		3,623,584
ION Trading Technologies SARL 5.75%, 05/15/2028(a)			1,784		1,836,949
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			3,319		3,373,764
MoneyGram International, Inc. 5.375%, 08/01/2026(a)			1,284		1,290,343
Monitronics International, Inc. Zero Coupon, 04/01/2020(h)(i)(j)(k)			1,835		– 0	–
MPH Acquisition Holdings LLC 5.50%, 09/01/2028(a)			1,698		1,687,371
5.75%, 11/01/2028(a)			4,123		3,761,042
Prime Security Services Borrower LLC/Prime Finance, Inc. 6.25%, 01/15/2028(a)			473		484,910
TripAdvisor, Inc. 7.00%, 07/15/2025(a)			1,231		1,305,709

abfunds.com AB INCOME FUND    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Verscend Escrow Corp. 9.75%, 08/15/2026(a)	U.S.$		4,000	$	4,238,160
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			1,252		1,295,795
					39,640,820
Technology – 0.5%
Austin BidCo, Inc. 7.125%, 12/15/2028(a)			947		977,834
Avaya, Inc. 6.125%, 09/15/2028(a)			3,860		4,019,032
Cablevision Lightpath LLC 5.625%, 09/15/2028(a)			1,847		1,826,960
CommScope, Inc. 4.75%, 09/01/2029(a)			2,381		2,335,428
8.25%, 03/01/2027(a)			1,061		1,081,276
NCR Corp. 5.125%, 04/15/2029(a)			2,517		2,574,639
5.75%, 09/01/2027(a)			473		497,052
6.125%, 09/01/2029(a)			366		393,410
Presidio Holdings, Inc. 4.875%, 02/01/2027(a)			165		168,404
8.25%, 02/01/2028(a)			1,836		1,955,120
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			6,350		6,581,838
Xerox Corp. 4.375%, 03/15/2023			27		27,881
					22,438,874
Transportation - Airlines – 0.1%
Air Canada 3.875%, 08/15/2026(a)			667		675,791
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			2,470		2,593,079
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			449		502,778
United Airlines, Inc. 4.625%, 04/15/2029(a)			767		790,961
					4,562,609
Transportation - Services – 0.2%
Albion Financing 1 SARL/Aggreko Holdings, Inc. 6.125%, 10/15/2026(a)			2,342		2,363,101
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.75%, 07/15/2027(a)			787		822,714

36    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BCP V Modular Services Finance II PLC 4.75%, 11/30/2028(a)	EUR		264	$	305,178
BCP V Modular Services Finance PLC 6.75%, 11/30/2029(a)			1,991		2,253,308
EC Finance PLC 3.00%, 10/15/2026(a)			869		1,015,795
Modulaire Global Finance PLC 8.00%, 02/15/2023(a)	U.S.$		1,258		1,281,940
					8,042,036
					459,921,408
Financial Institutions – 2.1%
Banking – 0.8%
Alliance Data Systems Corp. 4.75%, 12/15/2024(a)			4,513		4,618,424
7.00%, 01/15/2026(a)			824		874,833
Ally Financial, Inc. Series B 4.70%, 05/15/2026(f)			5,227		5,420,922
Banco Bilbao Vizcaya Argentaria SA Series 9 6.50%, 03/05/2025(f)			1,800		1,933,218
CaixaBank SA 5.875%, 10/09/2027(a)(f)	EUR		2,400		3,170,334
Credit Suisse Group AG 6.25%, 12/18/2024(a)(f)	U.S.$		640		690,726
6.375%, 08/21/2026(a)(f)			3,961		4,314,004
7.50%, 07/17/2023-12/11/2023(a)(f)			7,239		7,764,142
Discover Financial Services Series D 6.125%, 06/23/2025(f)			2,197		2,453,038
Exide Global Holding NETH 10.75%, 06/30/2024(h)(i)(m)			1,124		1,102,696
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			999		1,076,702
Societe Generale SA 8.00%, 09/29/2025(a)(f)			2,015		2,350,840
					35,769,879
Brokerage – 0.1%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			4,330		4,810,154
NFP Corp. 6.875%, 08/15/2028(a)			2,285		2,323,525
					7,133,679

abfunds.com AB INCOME FUND    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.4%
Aircastle Ltd. 5.25%, 06/15/2026(a)(f)	U.S.$		2,825	$	2,898,676
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			3,299		3,290,489
Compass Group Diversified Holdings LLC 5.25%, 04/15/2029(a)			157		163,244
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			3,140		3,190,805
Enova International, Inc. 8.50%, 09/01/2024(a)			3,418		3,477,336
goeasy Ltd. 5.375%, 12/01/2024(a)			2,145		2,205,768
Jefferies Finance LLC/JFIN Co-Issuer Corp. 5.00%, 08/15/2028(a)			578		586,260
Lincoln Financing SARL 3.625%, 04/01/2024(a)	EUR		759		881,721
Navient Corp. 6.50%, 06/15/2022	U.S.$		71		72,995
					16,767,294
Insurance – 0.3%
Acrisure LLC/Acrisure Finance, Inc. 7.00%, 11/15/2025(a)			4,241		4,289,517
10.125%, 08/01/2026(a)			831		924,678
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer 6.75%, 10/15/2027(a)			2,948		3,049,824
Ardonagh Midco 2 PLC 11.50% (11.50% Cash or 12.75% PIK), 01/15/2027(a)(l)			2,521		2,764,066
AssuredPartners, Inc. 5.625%, 01/15/2029(a)			3,179		3,164,790
					14,192,875
Other Finance – 0.3%
Altice France Holding SA 10.50%, 05/15/2027(a)			3,024		3,276,655
Intrum AB 3.00%, 09/15/2027(a)	EUR		1,490		1,666,081
3.50%, 07/15/2026(a)			1,040		1,199,499
Nordic Aviation Capital 5.04%, 02/27/2024(h)	U.S.$		12,727		9,354,596
					15,496,831

38    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITs – 0.2%
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(a)	U.S.$		1,488	$	1,451,990
5.75%, 05/15/2026(a)			621		642,207
Diversified Healthcare Trust 9.75%, 06/15/2025			1,389		1,508,829
Iron Mountain, Inc. 4.875%, 09/15/2027(a)			75		77,339
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 4.625%, 06/15/2025(a)			628		675,954
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer 4.875%, 05/15/2029(a)			1,270		1,289,279
Realogy Group LLC/Realogy Co-Issuer Corp. 9.375%, 04/01/2027(a)			2,979		3,258,490
					8,904,088
					98,264,646
Utility – 0.4%
Electric – 0.3%
NRG Energy, Inc. 6.625%, 01/15/2027			23		23,905
Talen Energy Supply LLC 6.50%, 06/01/2025			1,092		667,332
7.25%, 05/15/2027(a)			850		814,070
10.50%, 01/15/2026(a)			6,486		4,293,927
Vistra Corp. 8.00%, 10/15/2026(a)(f)			7,597		7,974,495
					13,773,729
Other Utility – 0.1%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(a)			1,727		1,821,968
					15,595,697
Total Corporates - Non-Investment Grade (cost $567,543,735)					573,781,751

abfunds.com AB INCOME FUND    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MORTGAGE PASS-THROUGHS – 7.1%
Agency Fixed Rate 30-Year – 7.1%
Federal Home Loan Mortgage Corp. Series 2020 2.50%, 08/01/2050-09/01/2050	U.S.$		102,523	$	106,166,118
4.50%, 02/01/2050			4,702		5,183,804
Federal National Mortgage Association Series 1998 8.00%, 06/01/2028			3		3,156
Series 1999 7.50%, 11/01/2029			7		8,099
Series 2020 4.50%, 02/01/2050			9,023		9,896,488
Government National Mortgage Association Series 2021 2.50%, 11/01/2051, TBA			78,250		80,432,439
Uniform Mortgage-Backed Security Series 2021 3.50%, 11/01/2051, TBA			13,429		14,190,449
3.00%, 11/01/2051, TBA			110,847		115,628,062
Total Mortgage Pass-Throughs (cost $334,808,031)					331,508,615
COLLATERALIZED MORTGAGE OBLIGATIONS – 5.5%
Risk Share Floating Rate – 4.8%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 1.939% (LIBOR 1 Month + 1.85%), 10/25/2028(a)(g)			944		944,098
Series 2019-1A, Class M2 2.789% (LIBOR 1 Month + 2.70%), 03/25/2029(a)(g)			1,340		1,345,392
Series 2019-2A, Class M1C 2.089% (LIBOR 1 Month + 2.00%), 04/25/2029(a)(g)			9,029		9,051,625
Series 2019-3A, Class M1C 2.039% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(g)			15,567		15,566,994
Eagle RE Ltd. Series 2018-1, Class M1 1.789% (LIBOR 1 Month + 1.70%), 11/25/2028(a)(g)			513		513,672

40    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 4.339% (LIBOR 1 Month + 4.25%), 11/25/2023(g)	U.S.$		1,713	$	1,766,531
Series 2014-DN3, Class M3 4.089% (LIBOR 1 Month + 4.00%), 08/25/2024(g)			1,121		1,147,813
Series 2014-HQ2, Class M3 3.839% (LIBOR 1 Month + 3.75%), 09/25/2024(g)			580		599,519
Series 2015-DN1, Class B 11.589% (LIBOR 1 Month + 11.50%), 01/25/2025(g)			2,035		2,072,636
Series 2015-DNA2, Class B 7.639% (LIBOR 1 Month + 7.55%), 12/25/2027(g)			1,483		1,598,974
Series 2015-DNA3, Class B 9.439% (LIBOR 1 Month + 9.35%), 04/25/2028(g)			2,464		2,673,675
Series 2015-HQA1, Class B 8.889% (LIBOR 1 Month + 8.80%), 03/25/2028(g)			1,571		1,674,663
Series 2016-DNA1, Class B 10.086% (LIBOR 1 Month + 10.00%), 07/25/2028(g)			2,221		2,479,728
Series 2016-DNA2, Class M3 4.739% (LIBOR 1 Month + 4.65%), 10/25/2028(g)			3,978		4,124,982
Series 2016-DNA4, Class M3 3.889% (LIBOR 1 Month + 3.80%), 03/25/2029(g)			4,419		4,569,068
Series 2016-HQA2, Class M3 5.239% (LIBOR 1 Month + 5.15%), 11/25/2028(g)			6,210		6,444,751
Series 2017-DNA1, Class M2 3.339% (LIBOR 1 Month + 3.25%), 07/25/2029(g)			2,414		2,489,036
Series 2017-DNA2, Class B1 5.239% (LIBOR 1 Month + 5.15%), 10/25/2029(g)			5,178		5,660,792
Series 2017-DNA2, Class M2 3.539% (LIBOR 1 Month + 3.45%), 10/25/2029(g)			1,168		1,205,662
Series 2017-DNA3, Class B1 4.539% (LIBOR 1 Month + 4.45%), 03/25/2030(g)			4,550		4,836,057

abfunds.com AB INCOME FUND    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-HQA3, Class B1 4.539% (LIBOR 1 Month + 4.45%), 04/25/2030(g)	U.S.$		9,090	$	9,605,467
Series 2018-DNA2, Class B1 3.789% (LIBOR 1 Month + 3.70%), 12/25/2030(a)(g)			7,000		7,287,527
Series 2018-HQA1, Class B1 4.439% (LIBOR 1 Month + 4.35%), 09/25/2030(g)			4,520		4,715,622
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 4.489% (LIBOR 1 Month + 4.40%), 01/25/2024(g)			2,439		2,517,358
Series 2014-C04, Class 1M2 4.989% (LIBOR 1 Month + 4.90%), 11/25/2024(g)			3,307		3,440,055
Series 2014-C04, Class 2M2 5.089% (LIBOR 1 Month + 5.00%), 11/25/2024(g)			311		316,783
Series 2015-C02, Class 2M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(g)			141		141,158
Series 2015-C03, Class 1M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(g)			1,367		1,406,810
Series 2015-C03, Class 2M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(g)			145		146,342
Series 2015-C04, Class 1M2 5.789% (LIBOR 1 Month + 5.70%), 04/25/2028(g)			3,255		3,443,889
Series 2015-C04, Class 2M2 5.639% (LIBOR 1 Month + 5.55%), 04/25/2028(g)			1,619		1,697,962
Series 2016-C01, Class 1M2 6.839% (LIBOR 1 Month + 6.75%), 08/25/2028(g)			1,902		2,008,109
Series 2016-C01, Class 2M2 7.039% (LIBOR 1 Month + 6.95%), 08/25/2028(g)			734		778,241
Series 2016-C02, Class 1M2 6.089% (LIBOR 1 Month + 6.00%), 09/25/2028(g)			4,703		4,918,877
Series 2016-C04, Class 1M2 4.339% (LIBOR 1 Month + 4.25%), 01/25/2029(g)			421		436,216

42    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C05, Class 2B 10.839% (LIBOR 1 Month + 10.75%), 01/25/2029(g)	U.S.$		2,742	$	2,956,726
Series 2016-C05, Class 2M2 4.539% (LIBOR 1 Month + 4.45%), 01/25/2029(g)			3,626		3,774,003
Series 2016-C07, Class 2B 9.589% (LIBOR 1 Month + 9.50%), 05/25/2029(g)			1,188		1,276,043
Series 2016-C07, Class 2M2 4.439% (LIBOR 1 Month + 4.35%), 05/25/2029(g)			474		494,218
Series 2017-C01, Class 1B1 5.839% (LIBOR 1 Month + 5.75%), 07/25/2029(g)			11,579		12,775,185
Series 2017-C02, Class 2B1 5.589% (LIBOR 1 Month + 5.50%), 09/25/2029(g)			4,031		4,435,658
Series 2017-C03, Class 1B1 4.939% (LIBOR 1 Month + 4.85%), 10/25/2029(g)			7,080		7,647,494
Series 2017-C05, Class 1B1 3.689% (LIBOR 1 Month + 3.60%), 01/25/2030(g)			7,280		7,611,719
Series 2017-C07, Class 2B1 4.539% (LIBOR 1 Month + 4.45%), 05/25/2030(g)			4,276		4,467,244
Series 2018-C01, Class 1B1 3.639% (LIBOR 1 Month + 3.55%), 07/25/2030(g)			8,575		8,844,617
Series 2018-C03, Class 1B1 3.839% (LIBOR 1 Month + 3.75%), 10/25/2030(g)			7,250		7,560,254
Series 2018-C05, Class 1B1 4.339% (LIBOR 1 Month + 4.25%), 01/25/2031(g)			6,873		7,229,918
Home Re Ltd. Series 2019-1, Class B1 4.439% (LIBOR 1 Month + 4.35%), 05/25/2029(g)(m)			2,000		2,060,317
Series 2020-1, Class M2 5.339% (LIBOR 1 Month + 5.25%), 10/25/2030(a)(g)			4,734		4,887,530
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-CH1, Class M2 4.339% (LIBOR 1 Month + 4.25%), 11/25/2024(g)(m)			499		483,294

abfunds.com AB INCOME FUND    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 5.589% (LIBOR 1 Month + 5.50%), 10/25/2025(g)(m)	U.S.$		893	$	899,578
Mortgage Insurance-Linked Notes Series 2019-1, Class M2 2.989% (LIBOR 1 Month + 2.90%), 11/26/2029(a)(g)			10,015		10,017,504
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.088% (LIBOR 1 Month + 2.00%), 03/27/2024(a)(g)			1,328		1,327,842
Series 2019-2R, Class A 2.838% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(g)			1,962		1,942,660
Series 2019-3R, Class A 2.788% (LIBOR 1 Month + 2.70%), 10/27/2022(a)(g)			636		635,942
Series 2020-1R, Class A 2.438% (LIBOR 1 Month + 2.35%), 02/27/2023(g)(m)			3,049		3,048,565
Radnor Re Ltd. Series 2018-1, Class M2 2.789% (LIBOR 1 Month + 2.70%), 03/25/2028(a)(g)			721		725,506
Series 2019-1, Class M1B 2.039% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(g)			2,673		2,675,016
Series 2019-1, Class M2 3.289% (LIBOR 1 Month + 3.20%), 02/25/2029(a)(g)			6,106		6,160,432
Traingle Re Ltd. Series 2021-3, Class M1A 1.949% (SOFR + 1.90%), 02/25/2034(a)(g)			8,174		8,194,093
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.339% (LIBOR 1 Month + 5.25%), 11/25/2025(g)(m)			313		300,787
					226,058,229
Agency Floating Rate – 0.6%
Federal Home Loan Mortgage Corp. REMICs Series 3119, Class PI 7.11% (7.20% – LIBOR 1 Month), 02/15/2036(g)(o)			1,159		283,387

44    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 3856, Class KS 6.46% (6.55% – LIBOR 1 Month), 05/15/2041(g)(o)	U.S.$		7,029	$	1,308,834
Series 4248, Class SL 5.96% (6.05% – LIBOR 1 Month), 05/15/2041(g)(o)			647		102,430
Series 4372, Class JS 6.01% (6.10% – LIBOR 1 Month), 08/15/2044(g)(o)			3,519		713,689
Series 4570, Class ST 5.91% (6.00% – LIBOR 1 Month), 04/15/2046(g)(o)			1,569		361,451
Series 4735, Class SA 6.11% (6.20% – LIBOR 1 Month), 12/15/2047(g)(o)			7,904		1,871,234
Series 4763, Class SB 6.91% (7.00% – LIBOR 1 Month), 03/15/2048(g)(o)			11,578		2,544,230
Series 4774, Class BS 6.11% (6.20% – LIBOR 1 Month), 02/15/2048(g)(o)			6,076		1,048,618
Series 4774, Class SL 6.11% (6.20% – LIBOR 1 Month), 04/15/2048(g)(o)			7,987		1,411,009
Series 4927, Class SJ 5.961% (6.05% – LIBOR 1 Month), 11/25/2049(g)(o)			3,266		677,317
Federal National Mortgage Association REMICs Series 2013-4, Class ST 6.061% (6.15% – LIBOR 1 Month), 02/25/2043(g)(o)			2,267		441,469
Series 2014-88, Class BS 6.061% (6.15% – LIBOR 1 Month), 01/25/2045(g)(o)			1,934		424,702
Series 2015-90, Class SA 6.061% (6.15% – LIBOR 1 Month), 12/25/2045(g)(o)			16,937		3,988,514
Series 2016-69, Class DS 6.011% (6.10% – LIBOR 1 Month), 10/25/2046(g)(o)			25,803		4,125,635
Series 2017-49, Class SP 6.061% (6.15% – LIBOR 1 Month), 07/25/2047(g)(o)			2,263		527,654
Series 2018-32, Class SB 6.111% (6.20% – LIBOR 1 Month), 05/25/2048(g)(o)			4,478		1,029,989

abfunds.com AB INCOME FUND    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2018-45, Class SL 6.111% (6.20% – LIBOR 1 Month), 06/25/2048(g)(o)	U.S.$		3,138	$	760,926
Series 2018-57, Class SL 6.111% (6.20% – LIBOR 1 Month), 08/25/2048(g)(o)			10,415		1,922,081
Series 2018-58, Class SA 6.111% (6.20% – LIBOR 1 Month), 08/25/2048(g)(o)			4,314		785,378
Series 2018-59, Class HS 6.111% (6.20% – LIBOR 1 Month), 08/25/2048(g)(o)			11,002		1,996,965
Series 2019-25, Class SA 5.961% (6.05% – LIBOR 1 Month), 06/25/2049(g)(o)			4,123		837,410
Series 2019-60, Class SJ 5.961% (6.05% – LIBOR 1 Month), 10/25/2049(g)(o)			3,770		793,422
					27,956,344
Non-Agency Fixed Rate – 0.1%
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 08/25/2036			973		742,372
CHL Mortgage Pass-Through Trust Series 2007-3, Class A30 5.75%, 04/25/2037			517		353,174
Series 2007-HY4, Class 1A1 2.901%, 09/25/2047			189		181,684
Citigroup Mortgage Loan Trust Series 2007-AR4, Class 1A1A 3.18%, 03/25/2037			117		117,226
CSMC Mortgage-Backed Trust Series 2006-7, Class 3A12 6.25%, 08/25/2036			360		217,880
Wells Fargo Mortgage Backed Securities Trust Series 2007-AR7, Class A1 2.717%, 12/28/2037			719		719,939
					2,332,275
Non-Agency Floating Rate – 0.0%
First Horizon Alternative Mortgage Securities Trust Series 2007-FA2, Class 1A10 0.339% (LIBOR 1 Month + 0.25%), 04/25/2037(g)			367		98,164

46    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lehman XS Trust Series 2007-10H, Class 2AIO 6.918% (7.00% – LIBOR 1 Month), 07/25/2037(g)(o)	U.S.$		264	$	46,177
					144,341
Agency Fixed Rate – 0.0%
Federal National Mortgage Association REMICs Series 2013-87, Class KI 3.00%, 12/25/2037(p)			1,309		35,735
Series 2016-26, Class IO 5.00%, 05/25/2046(p)			467		79,078
					114,813
Total Collateralized Mortgage Obligations (cost $252,029,680)					256,606,002
EMERGING MARKETS - SOVEREIGNS – 5.0%
Angola – 0.5%
Angolan Government International Bond 8.00%, 11/26/2029(a)			6,780		6,715,590
8.25%, 05/09/2028(a)			460		461,955
9.125%, 11/26/2049(a)			11,122		10,818,230
9.50%, 11/12/2025(a)			4,256		4,593,288
					22,589,063
Bahrain – 0.4%
Bahrain Government International Bond 5.45%, 09/16/2032(a)			7,434		7,259,766
6.75%, 09/20/2029(a)			1,709		1,843,370
7.00%, 10/12/2028(a)			2,107		2,305,190
7.375%, 05/14/2030(a)			1,961		2,181,367
CBB International Sukuk Programme Co. WLL 4.50%, 03/30/2027(a)			1,087		1,140,874
6.25%, 11/14/2024(a)			2,362		2,556,570
					17,287,137
Costa Rica – 0.2%
Costa Rica Government International Bond 6.125%, 02/19/2031(a)			4,214		4,320,140
7.158%, 03/12/2045(a)			3,804		3,836,810
					8,156,950
Dominican Republic – 0.3%
Dominican Republic International Bond 4.50%, 01/30/2030(a)			9,442		9,541,141

abfunds.com AB INCOME FUND    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
4.875%, 09/23/2032(a)	U.S.$		3,361	$	3,414,146
6.40%, 06/05/2049(a)			2,287		2,423,934
					15,379,221
Ecuador – 0.3%
Ecuador Government International Bond Zero Coupon, 07/31/2030(a)			626		333,416
0.50%, 07/31/2040(a)			1,114		665,466
1.00%, 07/31/2035(a)			13,152		8,663,694
5.00%, 07/31/2030(a)			2,144		1,771,778
					11,434,354
Egypt – 0.6%
Egypt Government International Bond 5.75%, 05/29/2024(a)			6,333		6,515,074
6.125%, 01/31/2022(a)			581		583,905
6.20%, 03/01/2024(a)			4,724		4,918,865
6.588%, 02/21/2028(a)			1,000		977,500
7.053%, 01/15/2032(a)			2,597		2,424,949
7.50%, 01/31/2027(a)			6,064		6,278,135
7.60%, 03/01/2029(a)			217		217,271
7.625%, 05/29/2032(a)			5,226		5,043,090
					26,958,789
El Salvador – 0.1%
El Salvador Government International Bond 7.125%, 01/20/2050(a)			628		446,390
8.625%, 02/28/2029(a)			7,640		6,060,908
					6,507,298
Ghana – 0.4%
Ghana Government International Bond 6.375%, 02/11/2027(a)			13,133		11,688,370
7.75%, 04/07/2029(a)			2,161		1,912,485
7.875%, 03/26/2027(a)			2,415		2,221,800
8.625%, 04/07/2034(a)			1,769		1,547,875
8.627%, 06/16/2049(a)			238		199,920
8.95%, 03/26/2051(a)			1,313		1,112,767
10.75%, 10/14/2030(a)			693		800,415
					19,483,632
Honduras – 0.0%
Honduras Government International Bond 6.25%, 01/19/2027(a)			1,555		1,623,809
Ivory Coast – 0.1%
Ivory Coast Government International Bond 4.875%, 01/30/2032(a)	EUR		1,195		1,350,597
6.125%, 06/15/2033(a)	U.S.$		1,654		1,737,527

48    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.375%, 03/03/2028(a)	U.S.$		1,377	$	1,501,188
					4,589,312
Kenya – 0.2%
Republic of Kenya Government International Bond 6.875%, 06/24/2024(a)			620		666,500
7.00%, 05/22/2027(a)			1,680		1,774,500
7.25%, 02/28/2028(a)			1,639		1,757,827
8.00%, 05/22/2032(a)			3,420		3,693,600
					7,892,427
Lebanon – 0.0%
Lebanon Government International Bond 6.60%, 11/27/2026(a)(j)(n)			1,284		192,998
6.65%, 04/22/2024(a)(j)(n)			507		74,782
6.85%, 03/23/2027(a)(j)(n)			1,053		158,498
					426,278
Nigeria – 0.4%
Nigeria Government International Bond 6.125%, 09/28/2028(a)			5,399		5,351,759
7.625%, 11/21/2025-11/28/2047(a)			11,691		12,235,794
7.696%, 02/23/2038(a)			1,729		1,656,922
7.875%, 02/16/2032(a)			426		432,337
					19,676,812
Oman – 0.3%
Oman Government International Bond 4.875%, 02/01/2025(a)			3,371		3,517,006
5.375%, 03/08/2027(a)			4,550		4,766,978
6.00%, 08/01/2029(a)			4,272		4,574,511
6.25%, 01/25/2031(a)			2,630		2,841,222
					15,699,717
Pakistan – 0.1%
Pakistan Government International Bond 6.00%, 04/08/2026(a)			2,282		2,287,956
6.875%, 12/05/2027(a)			245		250,099
7.375%, 04/08/2031(a)			3,816		3,859,350
					6,397,405
Senegal – 0.3%
Senegal Government International Bond 6.25%, 05/23/2033(a)			5,158		5,313,707
6.75%, 03/13/2048(a)			6,453		6,399,763
					11,713,470
South Africa – 0.6%
Republic of South Africa Government International Bond 4.30%, 10/12/2028			425		428,134

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
4.85%, 09/30/2029	U.S.$		9,846	$	10,084,766
5.65%, 09/27/2047			2,762		2,614,060
5.75%, 09/30/2049			10,390		9,901,670
5.875%, 06/22/2030(b)			2,797		3,064,988
6.30%, 06/22/2048			2,368		2,431,344
					28,524,962
Sri Lanka – 0.0%
Sri Lanka Government International Bond 6.20%, 05/11/2027(a)			285		178,535
Ukraine – 0.2%
Ukraine Government International Bond 7.253%, 03/15/2033(a)			4,689		4,766,075
7.375%, 09/25/2032(a)			3,586		3,690,891
					8,456,966
Total Emerging Markets - Sovereigns (cost $232,304,692)					232,976,137
COLLATERALIZED LOAN OBLIGATIONS – 3.0%
CLO - Floating Rate – 3.0%
Ares XXXIV CLO Ltd. Series 2015-2A, Class CR 2.122% (LIBOR 3 Month + 2.00%), 04/17/2033(a)(g)			9,437		9,443,229
Balboa Bay Loan Funding Ltd. Series 2020-1A, Class D 4.132% (LIBOR 3 Month + 4.00%), 01/20/2032(a)(g)			1,900		1,903,505
Series 2021-1A, Class D 3.197% (LIBOR 3 Month + 3.05%), 07/20/2034(a)(g)			2,750		2,750,236
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 3.224% (LIBOR 3 Month + 3.10%), 04/15/2034(a)(g)			2,750		2,750,437
Black Diamond CLO Ltd. Series 2016-1A, Class A2AR 1.875% (LIBOR 3 Month + 1.75%), 04/26/2031(a)(g)			5,300		5,281,938
BlueMountain Fuji US CLO Ltd. Series 2017-2A, Class D 6.282% (LIBOR 3 Month + 6.15%), 10/20/2030(a)(g)			3,300		3,256,377

50    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CBAM Ltd. Series 2018-7A, Class B1 1.732% (LIBOR 3 Month + 1.60%), 07/20/2031(a)(g)	U.S.$		1,996	$	1,996,663
CIFC Funding 2020-IV Ltd. Series 2020-4A, Class D 3.524% (LIBOR 3 Month + 3.40%), 01/15/2034(a)(g)			300		301,009
Dryden 49 Senior Loan Fund Series 2017-49A, Class E 6.422% (LIBOR 3 Month + 6.30%), 07/18/2030(a)(g)			605		603,382
Dryden CLO Ltd. Series 2020-78A, Class C 2.072% (LIBOR 3 Month + 1.95%), 04/17/2033(a)(g)			1,480		1,482,022
Series 2020-78A, Class D 3.122% (LIBOR 3 Month + 3.00%), 04/17/2033(a)(g)			6,824		6,834,178
Elevation CLO Ltd. Series 2020-11A, Class D1 3.974% (LIBOR 3 Month + 3.85%), 04/15/2033(a)(g)			4,490		4,500,915
Elmwood CLO VII Ltd. Series 2020-4A, Class D 3.722% (LIBOR 3 Month + 3.60%), 01/17/2034(a)(g)			4,200		4,223,759
Elmwood CLO VIII Ltd. Series 2021-1A, Class D1 3.132% (LIBOR 3 Month + 3.00%), 01/20/2034(a)(g)			1,000		998,461
Elmwood CLO XII Ltd. Series 2021-5A, Class D 3.176% (LIBOR 3 Month + 3.05%), 01/20/2035(a)(g)			4,850		4,850,000
Generate CLO 7 Ltd. Series 2019-2A, Class A1 1.498% (LIBOR 3 Month + 1.37%), 01/22/2033(a)(g)			4,400		4,401,690
GoldenTree Loan Opportunities IX Ltd. Series 2014-9A, Class DR2 3.13% (LIBOR 3 Month + 3.00%), 10/29/2029(a)(g)			2,815		2,811,127
Greywolf CLO VI Ltd. Series 2018-1A, Class A2 1.755% (LIBOR 3 Month + 1.63%), 04/26/2031(a)(g)			5,300		5,300,647

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Halcyon Loan Advisors Funding Ltd. Series 2018-1A, Class A2 1.932% (LIBOR 3 Month + 1.80%), 07/21/2031(a)(g)	U.S.$		1,826	$	1,825,945
Series 2018-1A, Class C 3.332% (LIBOR 3 Month + 3.20%), 07/21/2031(a)(g)			2,000		1,900,714
Kayne CLO 7 Ltd. Series 2020-7A, Class A1 1.322% (LIBOR 3 Month + 1.20%), 04/17/2033(a)(g)			2,663		2,668,155
Madison Park Funding LI Ltd. Series 2021-51A, Class D 3.20% (LIBOR 3 Month + 3.05%), 07/19/2034(a)(g)			3,650		3,650,325
Magnetite XXV Ltd. Series 2020-25A, Class D 3.424% (LIBOR 3 Month + 3.30%), 01/25/2032(a)(g)			3,000		3,003,849
Marble Point CLO XI Ltd. Series 2017-2A, Class A 1.302% (LIBOR 3 Month + 1.18%), 12/18/2030(a)(g)			2,400		2,398,809
Northwoods Capital Ltd. Series 2018-12BA, Class B 1.966% (LIBOR 3 Month + 1.85%), 06/15/2031(a)(g)			1,350		1,323,842
OCP CLO Ltd. Series 2021-21A, Class D 3.126% (LIBOR 3 Month + 2.95%), 07/20/2034(a)(g)			4,750		4,738,571
Octagon Investment Partners 29 Ltd. Series 2016-1A, Class DR 3.224% (LIBOR 3 Month + 3.10%), 01/24/2033(a)(g)			6,571		6,548,482
OZLM Ltd. Series 2014-7RA, Class CR 3.122% (LIBOR 3 Month + 3.00%), 07/17/2029(a)(g)			1,000		985,173
Series 2018-18A, Class B 1.674% (LIBOR 3 Month + 1.55%), 04/15/2031(a)(g)			5,450		5,447,210
Palmer Square CLO Ltd. Series 2021-3A, Class D 3.079% (LIBOR 3 Month + 2.95%), 01/15/2035(a)(g)			2,400		2,400,000

52    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Regatta XX Funding Ltd. Series 2021-2A, Class D 3.184% (LIBOR 3 Month + 3.10%), 10/15/2034(a)(g)	U.S.$		3,500	$	3,500,241
Rockford Tower CLO Ltd. Series 2017-2A, Class DR 2.974% (LIBOR 3 Month + 2.85%), 10/15/2029(a)(g)			4,444		4,444,908
Series 2017-3A, Class A 1.322% (LIBOR 3 Month + 1.19%), 10/20/2030(a)(g)			1,931		1,931,187
Series 2021-2A, Class D 3.363% (LIBOR 3 Month + 3.25%), 07/20/2034(a)(g)			950		951,104
Series 2021-3A, Class D 3.37% (LIBOR 3 Month + 3.25%), 10/20/2034(a)(g)			8,550		8,551,282
Sixth Street CLO XVI Ltd. Series 2021-20A, Class D 3.182% (LIBOR 3 Month + 3.05%), 10/20/2034(a)(g)			3,250		3,250,585
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 3.282% (LIBOR 3 Month + 3.15%), 01/20/2034(a)(g)			2,400		2,390,753
Sound Point CLO XIX Ltd. Series 2018-1A, Class A 1.124% (LIBOR 3 Month + 1.00%), 04/15/2031(a)(g)			7,931		7,939,312
Venture CLO Ltd. Series 2017-27A, Class D 4.132% (LIBOR 3 Month + 4.00%), 07/20/2030(a)(g)			1,591		1,592,076
Voya CLO Ltd. Series 2019-1A, Class DR 2.974% (LIBOR 3 Month + 2.85%), 04/15/2031(a)(g)			4,595		4,502,064
Total Collateralized Loan Obligations (cost $139,447,375)					139,634,162
EMERGING MARKETS - CORPORATE BONDS – 2.7%
Industrial – 2.3%
Basic – 0.7%
Braskem Idesa SAPI 6.99%, 02/20/2032(a)			2,058		2,104,922

abfunds.com AB INCOME FUND    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
7.45%, 11/15/2029(a)	U.S.$		2,459	$	2,594,983
CSN Inova Ventures 6.75%, 01/28/2028(a)			445		472,034
CSN Resources SA 4.625%, 06/10/2031(a)			4,293		4,211,433
7.625%, 04/17/2026(a)			1,967		2,071,251
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			2,385		2,423,637
First Quantum Minerals Ltd. 6.875%, 10/15/2027(a)			2,310		2,476,464
7.25%, 04/01/2023(a)			1,952		1,988,112
7.50%, 04/01/2025(a)			410		422,813
Indika Energy Capital IV Pte Ltd. 8.25%, 10/22/2025(a)			4,123		4,370,380
OCP SA 3.75%, 06/23/2031(a)			1,011		990,780
Sasol Financing USA LLC 5.875%, 03/27/2024			1,467		1,545,118
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(a)			4,716		5,099,175
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			667		649,616
					31,420,718
Capital Goods – 0.2%
Cemex SAB de CV 5.125%, 06/08/2026(a)(f)			2,796		2,885,539
Embraer Netherlands Finance BV 5.40%, 02/01/2027			4,430		4,622,705
6.95%, 01/17/2028(a)			2,058		2,280,264
Klabin Austria Gmbh 7.00%, 04/03/2049(a)			1,084		1,246,600
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(a)			5,578		13,946
					11,049,054
Communications - Media – 0.0%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a)			996		961,140
VTR Finance NV 6.375%, 07/15/2028(a)			307		328,180
					1,289,320
Communications - Telecommunications – 0.2%
C&W Senior Financing DAC 6.875%, 09/15/2027(a)			247		260,274
Digicel Group Holdings Ltd. 7.00%, 11/15/2021(f)(l)(m)			84		76,659

54    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
8.00% (5.00% Cash and 3.00% PIK), 04/01/2025(a)(l)	U.S.$		342	$	328,851
10.00% (8.00% Cash and 2.00% PIK), 04/01/2024(l)			6,051		6,073,717
Digicel International Finance Ltd./Digicel international Holdings Ltd. 8.75%, 05/25/2024(a)			339		351,810
					7,091,311
Consumer Cyclical - Other – 0.2%
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(a)			200		196,413
MGM China Holdings Ltd. 5.25%, 06/18/2025(a)			895		881,183
5.375%, 05/15/2024(a)			569		568,573
5.875%, 05/15/2026(a)			598		596,991
Studio City Finance Ltd. 6.00%, 07/15/2025(a)			1,088		1,055,632
6.50%, 01/15/2028(a)			998		958,392
Wynn Macau Ltd. 5.50%, 01/15/2026(a)			2,168		2,041,714
5.625%, 08/26/2028(a)			1,919		1,774,365
					8,073,263
Consumer Non-Cyclical – 0.2%
BRF GmbH 4.35%, 09/29/2026(a)			941		950,292
BRF SA 4.875%, 01/24/2030(a)			4,401		4,366,937
Natura Cosmeticos SA 4.125%, 05/03/2028(a)			2,828		2,799,154
Tonon Luxembourg SA 6.50% (0.50% Cash and 6.00% PIK), 10/31/2024(h)(i)(j)(l)(m)(n)			867		8,930
Ulker Biskuvi Sanayi AS 6.95%, 10/30/2025(a)			609		638,803
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(j)(k)(m)			4,738		47,498
10.875%, 01/13/2020(j)(k)(m)			750		93,750
11.75%, 02/09/2022(j)(m)(n)			1,690		8,471
					8,913,835
Energy – 0.7%
Gran Tierra Energy, Inc. 7.75%, 05/23/2027(a)			1,998		1,855,662
Investment Energy Resources Ltd. 6.25%, 04/26/2029(a)			1,306		1,390,890
Kosmos Energy Ltd. 7.50%, 03/01/2028(a)			1,388		1,353,300

abfunds.com AB INCOME FUND    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Leviathan Bond Ltd. 5.75%, 06/30/2023(a)	U.S.$		4,992	$	5,153,616
6.125%, 06/30/2025(a)			1,763		1,895,861
Medco Oak Tree Pte Ltd. 7.375%, 05/14/2026(a)			1,031		1,102,203
Medco Platinum Road Pte Ltd. 6.75%, 01/30/2025(a)			3,831		3,989,747
MV24 Capital BV 6.748%, 06/01/2034(a)			1,673		1,725,921
Peru LNG Srl 5.375%, 03/22/2030(a)			4,293		3,598,071
Petrobras Global Finance BV 6.90%, 03/19/2049			7,273		7,624,686
SEPLAT Energy PLC 7.75%, 04/01/2026(a)			2,065		2,115,180
SierraCol Energy Andina LLC 6.00%, 06/15/2028(a)			602		591,202
					32,396,339
Services – 0.1%
Bidvest Group UK PLC (The) 3.625%, 09/23/2026(a)			1,667		1,669,000
StoneCo Ltd. 3.95%, 06/16/2028(a)			736		656,328
					2,325,328
Technology – 0.0%
CA Magnum Holdings 5.375%, 10/31/2026(a)			1,397		1,433,671
					103,992,839
Financial Institutions – 0.3%
Banking – 0.0%
Fidelity Bank PLC 10.50%, 10/16/2022(a)			575		602,959
Insurance – 0.0%
Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc. 7.625% (7.625% Cash or 8.375% PIK), 10/15/2025(a)(l)			1,938		2,051,694
Other Finance – 0.0%
OEC Finance Ltd. 4.375%, 10/25/2029(a)(l)			3,648		278,023
5.25%, 12/27/2033(a)(l)			1,130		87,913
					365,936

56    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITs – 0.3%
Agile Group Holdings Ltd. 5.50%, 05/17/2026(a)	U.S.$		800	$	596,000
6.05%, 10/13/2025(a)			250		187,500
Central China Real Estate Ltd. 7.25%, 04/24/2023-08/13/2024(a)			1,629		754,850
7.50%, 07/14/2025(a)			403		173,290
7.75%, 05/24/2024(a)			222		99,900
7.90%, 11/07/2023(a)			204		104,040
China Aoyuan Group Ltd. 5.375%, 09/13/2022(a)			200		92,000
5.88%, 03/01/2027(a)			1,299		493,620
7.95%, 02/19/2023(a)			644		276,920
China SCE Group Holdings Ltd. 5.95%, 09/29/2024(a)			468		379,080
6.00%, 02/04/2026(a)			1,319		1,009,035
Kaisa Group Holdings Ltd. 9.375%, 06/30/2024(a)			480		134,400
9.95%, 07/23/2025(a)			1,280		371,200
11.65%, 06/01/2026(a)			200		56,000
KWG Group Holdings Ltd. 5.95%, 08/10/2025(a)			447		335,250
6.00%, 08/14/2026(a)			400		302,000
7.40%, 01/13/2027(a)			245		183,750
Logan Group Co., Ltd. 4.50%, 01/13/2028(a)			200		169,000
Powerlong Real Estate Holdings Ltd. 4.90%, 05/13/2026(a)			200		173,000
5.95%, 04/30/2025(a)			403		360,685
RKPF Overseas Ltd. 5.125%, 07/26/2026(a)			218		185,300
5.90%, 03/05/2025(a)			275		250,250
Ronshine China Holdings Ltd. 6.75%, 08/05/2024(a)			470		192,847
7.10%, 01/25/2025(a)			1,355		542,423
8.10%, 06/09/2023(a)			231		97,092
Seazen Group Ltd. 4.45%, 07/13/2025(a)			945		791,438
Sunac China Holdings Ltd. 5.95%, 04/26/2024(a)			588		426,300
6.50%, 01/26/2026(a)			305		213,500
7.00%, 07/09/2025(a)			205		143,500
Times China Holdings Ltd. 5.55%, 06/04/2024(a)			234		183,690
5.75%, 01/14/2027(a)			887		643,075
6.75%, 07/08/2025(a)			434		332,010

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Yango Justice International Ltd. 7.50%, 02/17/2025(a)	U.S.$		898	$	179,600
7.875%, 09/04/2024(a)			569		113,800
8.25%, 11/25/2023(a)			400		80,000
10.25%, 03/18/2022(a)			215		53,750
Yuzhou Group Holdings Co., Ltd. 6.35%, 01/13/2027(a)			1,068		427,200
7.375%, 01/13/2026(a)			428		175,480
7.70%, 02/20/2025(a)			200		84,000
7.85%, 08/12/2026(a)			250		102,500
8.375%, 10/30/2024(a)			308		132,440
Zhenro Properties Group Ltd. 6.63%, 01/07/2026(a)			997		578,260
6.70%, 08/04/2026(a)			400		232,000
7.10%, 09/10/2024(a)			233		139,800
7.35%, 02/05/2025(a)			200		118,000
					12,669,775
					15,690,364
Utility – 0.1%
Electric – 0.1%
AES Gener SA 6.35%, 10/07/2079(a)			1,816		1,889,775
Light Servicos de Eletricidade SA/Light Energia SA 4.375%, 06/18/2026(a)			2,245		2,190,699
Star Energy Geothermal Wayang Windu Ltd. 6.75%, 04/24/2033(a)			776		865,887
Terraform Global Operating LLC 6.125%, 03/01/2026(m)			289		296,184
					5,242,545
Total Emerging Markets - Corporate Bonds (cost $143,447,406)					124,925,748
BANK LOANS – 2.6%
Industrial – 2.2%
Basic – 0.0%
Nouryon Finance B.V. 2.839% (LIBOR 1 Month + 2.75%), 10/01/2025(q)			139		138,142
Capital Goods – 0.2%
Apex Tool Group, LLC 6.500% (LIBOR 1 Month + 5.25%), 08/01/2024(q)			4,778		4,778,481

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Granite US Holdings Corporation 4.132% (LIBOR 3 Month + 4.00%), 09/30/2026(h)(q)	U.S.$		3,562	$	3,553,348
The Chamberlain Group, LLC 10/22/2028(r)			230		229,522
					8,561,351
Communications - Media – 0.1%
Coral-US Co-Borrower LLC 3.135% (LIBOR 3 Month + 3.00%), 10/15/2029(q)			1,550		1,538,654
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 3.087% (LIBOR 1 Month + 3.00%), 05/01/2026(q)			222		220,071
Univision Communications, Inc. 3.750% (LIBOR 1 Month + 2.75%), 03/15/2024(q)			920		919,274
					2,677,999
Communications - Telecommunications – 0.4%
Crown Subsea Communications Holding, Inc. 5.750% (LIBOR 1 Month + 5.00%), 04/27/2027(q)			3,967		3,994,866
DIRECTV Financing, LLC 5.750% (LIBOR 3 Month + 5.00%), 08/02/2027(q)			2,280		2,281,094
Proofpoint, Inc. 6.750% (LIBOR 3 Month + 6.25%), 08/31/2029(h)(q)			6,000		6,120,000
Zacapa SARL 4.632% (LIBOR 3 Month + 4.50%), 07/02/2025(q)			3,316		3,319,961
					15,715,921
Consumer Cyclical - Automotive – 0.0%
Clarios Global LP 3.337% (LIBOR 1 Month + 3.25%), 04/30/2026(q)			347		344,224
Consumer Cyclical - Other – 0.2%
American Tire Distributors, Inc. 10/08/2028(r)			3,369		3,376,480
Caesars Resort Collection, LLC 2.837% (LIBOR 1 Month + 2.75%), 12/23/2024(q)			4,518		4,494,816

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Golden Nugget Online Gaming, Inc. 13.000% (LIBOR 3 Month + 12.00%), 10/04/2023(h)(q)	U.S.$		111	$	119,310
Scientific Games International, Inc. 2.837% (LIBOR 1 Month + 2.75%), 08/14/2024(q)			2,544		2,532,235
					10,522,841
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. 3.750% (LIBOR 3 Month + 2.75%), 02/05/2025(q)			555		553,801
Consumer Cyclical - Retailers – 0.1%
Great Outdoors Group, LLC 5.000% (LIBOR 3 Month + 4.25%), 03/06/2028(q)			1,201		1,204,123
PetSmart LLC 4.500% (LIBOR 3 Month + 3.75%), 02/11/2028(q)			4,359		4,360,644
					5,564,767
Consumer Non-Cyclical – 0.3%
Global Medical Response, Inc. 5.250% (LIBOR 3 Month + 4.25%), 03/14/2025(q)			1,143		1,137,103
Kronos Acquisition Holdings, Inc. 4.250% (LIBOR 3 Month + 3.75%), 12/22/2026(q)			1,896		1,837,118
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 3.837% (LIBOR 1 Month + 3.75%), 11/16/2025(q)			1,018		1,015,195
Padagis LLC 5.250% (LIBOR 3 Month + 4.75%), 07/06/2028(h)(q)			1,420		1,421,775
U.S. Renal Care, Inc. 5.125% (LIBOR 1 Month + 5.00%), 06/26/2026(q)			5,931		5,888,460
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 6.250% (LIBOR 3 Month + 5.50%), 12/15/2027(q)			4,298		4,308,269
					15,607,920
Energy – 0.0%
CITGO Petroleum Corporation 7.250% (LIBOR 3 Month + 6.25%), 03/28/2024(q)			1,587		1,586,949

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Other Industrial – 0.0%
Dealer Tire, LLC 4.337% (LIBOR 1 Month + 4.25%), 12/12/2025(q)	U.S.$		1,307	$	1,306,072
KAR Auction Services, Inc. 2.375% (LIBOR 1 Month + 2.25%), 09/19/2026(h)(q)			198		192,232
Rockwood Service Corporation 4.087% (LIBOR 1 Month + 4.00%), 01/23/2027(h)(q)			176		175,321
					1,673,625
Services – 0.2%
Amentum Government Services Holdings LLC 3.587% (LIBOR 1 Month + 3.50%), 01/29/2027(q)			444		441,784
Parexel International Corporation 2.837% (LIBOR 1 Month + 2.75%), 09/27/2024(q)			2,660		2,658,270
Team Health Holdings, Inc. 3.750% (LIBOR 1 Month + 2.75%), 02/06/2024(q)			2,621		2,496,862
Verscend Holding Corp. 4.087% (LIBOR 1 Month + 4.00%), 08/27/2025(q)			1,940		1,942,532
					7,539,448
Technology – 0.7%
athenahealth, Inc. 4.377% (LIBOR 3 Month + 4.25%), 02/11/2026(q)			4,935		4,947,451
Banff Guarantor Inc. 02/27/2026(r)			1,050		1,061,813
Boxer Parent Company, Inc. 3.882% (LIBOR 3 Month + 3.75%), 10/02/2025(q)			3,423		3,397,489
Endurance International Group Holdings, Inc. 4.250% (LIBOR 3 Month + 3.50%), 02/10/2028(q)			9,736		9,561,138
Loyalty Ventures Inc. 10/08/2027(h)(r)			4,738		4,708,855
Peraton Corp. 4.500% (LIBOR 1 Month + 3.75%), 02/01/2028(q)			1,652		1,653,500

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Presidio Holdings Inc. 3.590% (LIBOR 1 Month + 3.50%), 01/22/2027(q)	U.S.$		85	$	84,647
3.630% (LIBOR 3 Month + 3.50%), 01/22/2027(q)			1,542		1,538,438
Veritas US, Inc. 6.000% (LIBOR 3 Month + 5.00%), 09/01/2025(q)			5,703		5,717,383
					32,670,714
					103,157,702
Financial Institutions – 0.2%
Finance – 0.0%
Equiniti Group PLC 10/29/2028(h)(r)			380		380,000
Insurance – 0.2%
Hub International Limited 4.000% (LIBOR 2 Month + 3.25%), 04/25/2025(q)			7		7,147
4.000% (LIBOR 3 Month + 3.25%), 04/25/2025(q)			2,834		2,830,172
Jones DesLauriers Insurance Management, Inc. 8.000% (CDOR 3 Month + 7.50%), 03/26/2029(h)(q)	CAD		5,923		4,806,838
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 3.837% (LIBOR 1 Month + 3.75%), 09/03/2026(q)	U.S.$		2,231		2,224,891
					9,869,048
					10,249,048
Utility – 0.2%
Electric – 0.2%
Generation Bridge Acquisition, LLC 08/06/2028(h)(r)			3,040		3,047,600
Granite Generation LLC 4.750% (LIBOR 1 Month + 3.75%), 11/09/2026(q)			3,233		3,175,169
4.750% (LIBOR 3 Month + 3.75%), 11/09/2026(q)			632		621,017
					6,843,786
Total Bank Loans (cost $119,180,497)					120,250,536

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.0%
Non-Agency Fixed Rate CMBS – 1.6%
Banc of America Commercial Mortgage Trust Series 2016-UB10, Class C 4.853%, 07/15/2049	U.S.$		372	$	402,806
BANK Series 2020-BN25, Class XA 0.885%, 01/15/2063(p)			65,723		4,075,855
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.341%, 05/15/2052(p)			10,866		919,092
Benchmark Mortgage Trust Series 2019-B13, Class XA 1.128%, 08/15/2057(p)			44,286		3,023,472
CD Mortgage Trust Series 2017-CD3, Class XA 0.977%, 02/10/2050(p)			14,121		621,343
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.636%, 05/10/2058(p)			13,503		808,260
Citigroup Commercial Mortgage Trust Series 2013-GC15, Class C 5.179%, 09/10/2046			516		533,754
Series 2016-C3, Class XA 1.093%, 11/15/2049(p)			34,321		1,430,636
Commercial Mortgage Trust Series 2014-CR15, Class XA 0.711%, 02/10/2047(p)			33,648		494,710
Series 2015-CR27, Class XA 0.913%, 10/10/2048(p)			6,385		201,492
CSAIL Commercial Mortgage Trust Series 2015-C1, Class D 3.762%, 04/15/2050(a)			670		495,911
Series 2019-C15, Class B 4.476%, 03/15/2052			960		1,071,832
GS Mortgage Securities Trust Series 2011-GC5, Class C 5.159%, 08/10/2044(a)			375		319,688
Series 2011-GC5, Class D 5.159%, 08/10/2044(a)			14,025		6,731,774
Series 2016-GS3, Class XA 1.215%, 10/10/2049(p)			30,475		1,472,616
Series 2019-GC39, Class XA 1.135%, 05/10/2052(p)			15,679		1,005,429

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047	U.S.$		1,599	$	1,684,851
Series 2014-C24, Class C 4.403%, 11/15/2047			5,869		5,706,593
JPMCC Commercial Mortgage Securities Trust Series 2017-JP6, Class XA 1.128%, 07/15/2050(p)			10,580		467,087
JPMDB Commercial Mortgage Securities Trust Series 2019-COR6, Class XA 0.938%, 11/13/2052(p)			37,176		2,232,759
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-C8, Class B 3.977%, 10/15/2045(a)			2,411		2,441,623
Series 2012-C8, Class E 4.672%, 10/15/2045(a)			2,103		1,882,479
Series 2012-LC9, Class E 4.363%, 12/15/2047(a)			7,500		6,463,932
Series 2012-LC9, Class G 4.363%, 12/15/2047(a)			831		634,663
Series 2016-JP2, Class XA 1.789%, 08/15/2049(p)			15,698		1,105,446
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			632		285,481
LCCM Series 2017-LC26, Class XA 1.412%, 07/12/2050(a)(p)			44,472		2,499,299
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9, Class D 4.109%, 05/15/2046(a)			680		627,447
Series 2014-C18, Class C 4.50%, 10/15/2047			4,408		4,529,025
Series 2015-C22, Class XA 1.022%, 04/15/2048(p)			11,891		314,656
UBS Commercial Mortgage Trust Series 2012-C1, Class D 5.536%, 05/10/2045(a)			2,000		1,892,501
Series 2017-C1, Class XA 1.528%, 06/15/2050(p)			7,285		493,424
Series 2019-C16, Class XA 1.552%, 04/15/2052(p)			16,761		1,476,429

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-C18, Class XA 1.035%, 12/15/2052(p)	U.S.$		44,175	$	2,769,551
UBS-Barclays Commercial Mortgage Trust Series 2013-C5, Class B 3.649%, 03/10/2046(a)			2,414		2,438,799
Series 2013-C5, Class C 4.08%, 03/10/2046(a)			782		776,577
Wells Fargo Commercial Mortgage Trust Series 2015-LC20, Class XA 1.308%, 04/15/2050(p)			8,027		267,104
Series 2016-C36, Class XA 1.246%, 11/15/2059(p)			46,938		2,341,912
Series 2016-LC24, Class XA 1.616%, 10/15/2049(p)			29,347		1,874,565
Series 2016-LC25, Class XA 0.856%, 12/15/2059(p)			17,972		632,831
Series 2019-C52, Class XA 1.594%, 08/15/2052(p)			19,387		1,872,599
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class E 4.887%, 06/15/2044(a)			489		367,838
Series 2014-LC14, Class C 4.344%, 03/15/2047			134		139,439
					71,827,580
Non-Agency Floating Rate CMBS – 0.4%
BFLD Trust Series 2019-DPLO, Class E 2.33% (LIBOR 1 Month + 2.24%), 10/15/2034(a)(g)			11,227		11,086,030
DBWF Mortgage Trust Series 2018-GLKS, Class E 3.098% (LIBOR 1 Month + 3.02%), 12/19/2030(a)(g)			1,994		1,983,874
Great Wolf Trust Series 2019-WOLF, Class D 2.023% (LIBOR 1 Month + 1.93%), 12/15/2036(a)(g)			5,005		4,954,698
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 4.09% (LIBOR 1 Month + 4.00%), 05/15/2036(a)(g)			1,651		1,379,828
					19,404,430

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-32, Class XM 0.113%, 11/16/2045(p)	U.S.$		149	$	338
Total Commercial Mortgage-Backed Securities (cost $101,002,858)					91,232,348
QUASI-SOVEREIGNS – 1.4%
Quasi-Sovereign Bonds – 1.4%
Bahrain – 0.1%
Oil and Gas Holding Co. BSCC (The) 7.625%, 11/07/2024(a)			668		722,609
8.375%, 11/07/2028(a)			3,912		4,510,536
					5,233,145
Chile – 0.0%
Corp. Nacional del Cobre de Chile 3.75%, 01/15/2031(a)			212		224,932
Empresa de Transporte de Pasajeros Metro SA 3.65%, 05/07/2030(a)			200		212,725
					437,657
Indonesia – 0.1%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(a)			2,044		2,190,146
5.71%, 11/15/2023(a)			277		301,030
					2,491,176
Kazakhstan – 0.1%
KazMunayGas National Co. JSC 4.75%, 04/24/2025(a)			768		843,984
5.375%, 04/24/2030(a)			1,940		2,274,825
					3,118,809
Malaysia – 0.1%
Petronas Capital Ltd. 3.50%, 04/21/2030(a)			3,739		4,030,979
Mexico – 0.6%
Petroleos Mexicanos 5.95%, 01/28/2031			13,565		13,314,048
6.49%, 01/23/2027			1,455		1,545,065
6.50%, 01/23/2029			403		418,626
6.75%, 09/21/2047			10,176		8,967,600
6.84%, 01/23/2030			645		672,896
6.95%, 01/28/2060			4,846		4,283,864
					29,202,099

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Oman – 0.1%
Lamar Funding Ltd. 3.958%, 05/07/2025(a)	U.S.$		3,297	$	3,284,224
Panama – 0.1%
Aeropuerto Internacional de Tocumen SA 4.00%, 08/11/2041(a)			2,057		2,069,599
5.125%, 08/11/2061(a)			1,569		1,634,996
					3,704,595
South Africa – 0.0%
Eskom Holdings SOC Ltd. 7.125%, 02/11/2025(a)			1,169		1,212,545
Ukraine – 0.2%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026(a)			2,168		2,145,886
State Agency of Roads of Ukraine 6.25%, 06/24/2028(a)			7,856		7,701,335
					9,847,221
United Arab Emirates – 0.0%
DP World Crescent Ltd. 3.875%, 07/18/2029(a)			296		314,592
DP World Ltd./United Arab Emirates 5.625%, 09/25/2048(a)			696		845,640
					1,160,232
Total Quasi-Sovereigns (cost $59,436,953)					63,722,682
GOVERNMENTS - SOVEREIGN BONDS – 1.2%
Colombia – 0.3%
Colombia Government International Bond 3.125%, 04/15/2031			864		810,702
3.25%, 04/22/2032			8,612		8,039,302
5.625%, 02/26/2044			1,372		1,446,860
6.125%, 01/18/2041			3,473		3,843,743
7.375%, 09/18/2037			790		975,798
					15,116,405
Israel – 0.2%
Israel Government International Bond 2.75%, 07/03/2030			7,916		8,356,327
Mexico – 0.1%
Mexico Government International Bond 3.90%, 04/27/2025			1,205		1,305,768

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PORTFOLIO OF INVESTMENTS (continued)

			Principal Amount (000)		U.S. $ Value
4.75%, 04/27/2032	U.S.$			2,706	$	3,041,375
						4,347,143
Panama – 0.1%
Panama Notas del Tesoro 3.75%, 04/17/2026				5,330		5,654,131
Peru – 0.0%
Peruvian Government International Bond 2.392%, 01/23/2026				247		251,446
2.783%, 01/23/2031				719		717,787
						969,233
Qatar – 0.2%
Qatar Government International Bond 3.375%, 03/14/2024(a)				4,399		4,643,144
3.40%, 04/16/2025(a)				1,074		1,147,368
3.75%, 04/16/2030(a)				1,810		2,019,055
3.875%, 04/23/2023(a)				861		902,597
						8,712,164
Saudi Arabia – 0.1%
Saudi Government International Bond 2.90%, 10/22/2025(a)				3,031		3,199,220
3.25%, 10/22/2030(a)				3,774		4,013,649
						7,212,869
United Arab Emirates – 0.2%
Abu Dhabi Government International Bond 2.50%, 04/16/2025(a)(b)				2,587		2,700,828
3.125%, 04/16/2030(a)				4,640		4,997,280
						7,698,108
Total Governments - Sovereign Bonds (cost $56,372,162)						58,066,380
EMERGING MARKETS - TREASURIES – 1.1%
Brazil – 1.1%
Brazil Notas do Tesouro Nacional Series NTNF 10.00%, 01/01/2023-01/01/2025 (cost $63,811,955)		BRL		298,397		51,416,321

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 0.9%
Other ABS - Fixed Rate – 0.6%
CLUB Credit Trust Series 2017-P2, Class C 4.91%, 01/15/2024(a)	U.S.$		302	$	303,163
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.981%, 11/16/2043(m)			444		445,406
Series 2019-36, Class PT 12.985%, 10/17/2044(m)			890		895,323
Series 2019-43, Class PT 5.997%, 11/15/2044(m)			393		389,197
Consumer Loan Underlying Bond Credit Trust Series 2018-P1, Class C 5.21%, 07/15/2025(a)			1,495		1,513,710
Marlette Funding Trust Series 2018-3A, Class C 4.63%, 09/15/2028(a)			2,169		2,171,945
Series 2018-4A, Class C 4.91%, 12/15/2028(a)			503		503,378
Series 2019-2A, Class C 4.11%, 07/16/2029(a)			2,692		2,724,088
Series 2019-3A, Class C 3.79%, 09/17/2029(a)			4,413		4,469,272
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025(h)(i)(m)			761		639,503
Series 2017-5, Class R1 Zero Coupon, 09/25/2026(h)(i)(m)			17		351,099
SoFi Consumer Loan Program Trust Series 2018-1, Class R1 Zero Coupon, 02/25/2027(h)(i)(m)			37		861,203
Series 2018-2, Class C 4.25%, 04/26/2027(a)			1,400		1,420,447
Series 2019-2, Class D 4.20%, 04/25/2028(a)			1,000		1,025,262
Series 2019-3, Class D
3.89%, 05/25/2028(a)			5,378		5,501,930
Series 2019-4, Class D
3.48%, 08/25/2028(a)			3,000		3,045,630
					26,260,556
Autos - Fixed Rate – 0.3%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class C 4.73%, 09/20/2024(a)			2,372		2,489,766

abfunds.com AB INCOME FUND    ^|    69

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CPS Auto Trust Series 2017-A, Class E 7.07%, 04/15/2024(a)	U.S.$		4,200	$	4,250,048
Flagship Credit Auto Trust Series 2017-1, Class E 6.46%, 12/15/2023(a)			1,000		1,006,915
Series 2018-3, Class D 4.15%, 12/16/2024(a)			670		696,709
Series 2019-4, Class E 4.11%, 03/15/2027(a)			2,970		3,098,463
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(a)			2,551		2,653,722
					14,195,623
Total Asset-Backed Securities (cost $39,357,867)					40,456,179
AGENCIES – 0.9%
Agency Debentures – 0.9%
Federal Home Loan Banks 5.50%, 07/15/2036			8,695		12,672,455
Federal Home Loan Mortgage Corp. 6.25%, 07/15/2032			10,400		14,977,352
6.75%, 03/15/2031			4,000		5,759,400
Series GDIF 6.75%, 09/15/2029			4,606		6,433,246
Total Agencies (cost $35,668,602)					39,842,453
		Shares
COMMON STOCKS – 0.3%
Energy – 0.2%
Oil, Gas & Consumable Fuels – 0.2%
Berry Corp.			137,884		1,325,065
Bonanza Creek Energy, Inc.			5,127		287,830
Denbury, Inc.(j)			13,032		1,103,289
Diamond Offshore Drilling, Inc.(j)			107,934		593,637
Diamond Offshore Drilling, Inc.(j)(m)			22,730		125,015
Golden Energy Offshore Services AS(j)			1,497,659		144,485
Gulfport Energy Operating Corp.(j)			35,393		2,903,642
SandRidge Energy, Inc.(j)			105		1,344
Vantage Drilling International(j)			16,001		84,005
Whiting Petroleum Corp.(j)			12,942		842,912
					7,411,224

70    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company		Shares		U.S. $ Value
Consumer Discretionary – 0.1%
Auto Components – 0.1%
ATD New Holdings, Inc.(h)(j)			29,486	$	2,034,534
Exide Corp.(h)(i)(j)			497		1,018,850
					3,053,384
Internet & Catalog Retail – 0.0%
GOLO Mobile, Inc.(h)(i)(j)			30,264		734
					3,054,118
Consumer Staples – 0.0%
Food & Staples Retailing – 0.0%
Southeastern Grocers, Inc.(h)(i)(j)			71,086		1,626,092
Information Technology – 0.0%
Software – 0.0%
Monitronics International, Inc.(j)			68,348		410,088
Paysafe AG Tracker(h)(j)			79,682		– 0	–
Paysafe Ltd.(j)			100,908		787,083
					1,197,171
Communication Services – 0.0%
Media – 0.0%
iHeartMedia, Inc. – Class A(j)			14,385		278,781
Total Common Stocks (cost $16,250,664)					13,567,386
		Principal Amount (000)
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.2%
United States – 0.2%
Texas Transportation Commission State Highway Fund Series 2010-B 5.178%, 04/01/2030	U.S.$		2,560		3,109,272
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(a)			6,915		7,321,998
Total Local Governments - US Municipal Bonds (cost $9,475,000)					10,431,270

abfunds.com AB INCOME FUND    ^|    71

PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
PREFERRED STOCKS – 0.2%
Financial Institutions – 0.1%
Banking – 0.1%
US Bancorp Series F 6.50%		187,450	$	4,757,481
Industrial – 0.1%
Auto Components – 0.1%
Exide Corp. 8.00%(h)(i)(j)		3,093		2,497,597
Energy – 0.0%
Gulfport Energy Operating Corp. 10.00%(h)(j)		113		661,050
				3,158,647
Total Preferred Stocks (cost $7,332,964)				7,916,128
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/2022(j)		2,936		4,111
Encore Automotive Acceptance, expiring 07/05/2031(h)(i)(j)		12		– 0	–
Flexpath Capital, Inc., expiring 04/15/2031(h)(i)(j)		17,195		– 0	–
SandRidge Energy, Inc., A-CW22, expiring 10/04/2022(j)		2,566		128
SandRidge Energy, Inc., B-CW22, expiring 10/04/2022(j)		1,080		52
Total Warrants (cost $3)				4,291
SHORT-TERM INVESTMENTS – 2.4%
Investment Companies – 2.4%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(s)(t)(u) (cost $111,172,521)		111,172,521		111,172,521
Total Investments – 134.1% (cost $6,220,250,077)				6,226,030,924
Other assets less liabilities – (34.1)%				(1,582,327,028	)
Net Assets – 100.0%			$	4,643,703,896

72    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Long Gilt Futures		13		December 2021	$	2,222,472	$	(63,884	)
U.S. T-Note 10 Yr (CBT) Futures		2,436		December 2021		318,392,812		(3,872,214	)
U.S. Ultra Bond (CBT) Futures		1,454		December 2021		285,574,687		(2,506,463	)
Sold Contracts
Euro Buxl 30 Yr Bond Futures		16		December 2021		3,865,294		1,093
Euro-BOBL Futures		22		December 2021		3,401,784		52,113
Euro-Bund Futures		55		December 2021		10,689,068		263,685
Euro-Schatz Futures		297		December 2021		38,439,446		112,593
U.S. 10 Yr Ultra Futures		1,724		December 2021		250,033,875		3,873,166
U.S. T-Note 2 Yr (CBT) Futures		1,271		December 2021		278,666,750		1,180,055
U.S. T-Note 5 Yr (CBT) Futures		3,971		December 2021		483,469,250		6,521,228
							$	5,561,372

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA		USD	26,689		EUR	22,921		11/08/2021	$	(188,441	)
Barclays Bank PLC		EUR	2,097		USD	2,445		11/08/2021		20,783
Barclays Bank PLC		IDR	23,323,000		USD	1,616		01/27/2022		(8,084	)
Citibank, NA		BRL	467,032		USD	86,765		11/03/2021		4,014,043
Citibank, NA		USD	82,763		BRL	467,032		11/03/2021		(11,732	)
Citibank, NA		AUD	150,952		USD	108,784		11/09/2021		(4,773,727	)
Citibank, NA		COP	134,121,322		USD	34,927		11/12/2021		(665,204	)
Deutsche Bank AG		EUR	3,161		USD	3,660		11/08/2021		5,017
Deutsche Bank AG		RUB	3,986,167		USD	54,093		12/15/2021		(1,613,441	)
Goldman Sachs Bank USA		BRL	68,943		USD	12,217		11/03/2021		1,732
Goldman Sachs Bank USA		USD	12,399		BRL	68,943		11/03/2021		(183,276	)
Goldman Sachs Bank USA		GBP	1,204		USD	1,654		11/10/2021		5,930
HSBC Bank USA		USD	42,828		CAD	52,908		11/19/2021		(77,656	)
Morgan Stanley Capital Services, Inc.		BRL	398,089		USD	70,546		11/03/2021		10,000
Morgan Stanley Capital Services, Inc.		USD	11,011		BRL	62,412		11/03/2021		47,410
Morgan Stanley Capital Services, Inc.		USD	60,125		BRL	335,677		11/03/2021		(647,718	)
Morgan Stanley Capital Services, Inc.		CAD	290,541		USD	227,025		11/19/2021		(7,734,316	)
Morgan Stanley Capital Services, Inc.		BRL	335,677		USD	59,773		12/02/2021		639,931
Natwest Markets PLC		MXN	735,624		USD	36,026		01/13/2022		690,874
State Street Bank & Trust Co.		EUR	72,127		USD	85,705		11/08/2021		2,315,511
State Street Bank & Trust Co.		USD	14,424		EUR	12,270		11/08/2021		(238,366	)
State Street Bank & Trust Co.		ZAR	1,022		USD	71		11/24/2021		4,170
									$	(8,386,560	)

abfunds.com AB INCOME FUND    ^|    73

PORTFOLIO OF INVESTMENTS (continued)

INTEREST RATE SWAPTIONS WRITTEN (see Note D)

Description	Index		Counterparty		Strike Rate			Expiration Date		Notional Amount (000)		Premiums Received		Market Value
Put
OTC – 1 Year Interest Rate Swap		3 Month LIBOR		JPMorgan Chase Bank, NA		1.56	%		11/01/2021	USD	25,200	$	206,010	$	(62,024	)
OTC – 1 Year Interest Rate Swap		3 Month LIBOR		Morgan Stanley Capital Services LLC		1.68	%		11/22/2021	USD	24,617		205,552		(91,051	)
												$	411,562	$	(153,075	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)		Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 37, 5 Year Index, 12/20/2026*		5.00	%		Quarterly		3.05	%	USD	6,120	$	577,574	$	563,347	$	14,227
iTraxxx Xover Series 36, 5 Year Index, 12/20/2026*		5.00			Quarterly		2.62		EUR	13,220		1,790,010		1,832,386		(42,376	)
Russian Federation, 7.500%, 03/31/2030, 12/20/2026*		1.00			Quarterly		0.83		USD	5,872		57,124		46,164		10,960
											$	2,424,708	$	2,441,897	$	(17,189	)

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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	109,350		04/20/2023	2.850%	3 Month LIBOR	Semi-Annual/ Quarterly	$	(3,899,309	)	$	– 0	–	$	(3,899,309	)
USD	46,860		04/02/2024	2.851%	3 Month LIBOR	Semi-Annual/ Quarterly		(2,387,771	)		– 0	–		(2,387,771	)
USD	30,755		02/10/2025	2.034%	3 Month LIBOR	Semi-Annual/ Quarterly		(1,147,434	)		– 0	–		(1,147,434	)
USD	6,010		06/09/2025	2.491%	3 Month LIBOR	Semi-Annual/ Quarterly		(362,460	)		– 0	–		(362,460	)

74    ^|    AB INCOME FUND abfunds.com

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	10,000		01/11/2027		2.285%		3 Month LIBOR	Semi-Annual/Quarterly	$	(589,191	)	$	– 0	–	$	(589,191	)
USD	11,920		04/26/2027		2.287%		3 Month LIBOR	Semi-Annual/Quarterly		(640,219	)		– 0	–		(640,219	)
									$	(9,026,384	)	$	– 0	–	$	(9,026,384	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Barclays Bank PLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00	%		Monthly		10.00	%		USD	4,810	$	(2,107,851	)	$	(114,954	)	$	(1,992,897	)
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00			USD	3,848		(1,686,281	)		(568,003	)		(1,118,278	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,187		(329,294	)		(308,999	)		(20,295	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	162		(45,011	)		(9,882	)		(35,129	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	2,227		(617,807	)		(536,788	)		(81,019	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	2,227		(617,807	)		(531,420	)		(86,387	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	643		(178,379	)		(70,157	)		(108,222	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	2,969		(823,650	)		(708,480	)		(115,170	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,146		(317,920	)		(176,688	)		(141,232	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,529		(424,170	)		(150,026	)		(274,144	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	3,250		(901,604	)		(324,074	)		(577,530	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5,000		(1,387,083	)		(586,901	)		(800,182	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5,000		(1,387,083	)		(494,685	)		(892,398	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5,000		(1,387,084	)		(487,529	)		(899,555	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5,300		(1,470,309	)		(320,480	)		(1,149,829	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,557		(2,651,272	)		(932,344	)		(1,718,928	)

abfunds.com AB INCOME FUND    ^|    75

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	9,557	$	(2,651,271	)	$	(922,960	)	$	(1,728,311	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,557		(2,651,271	)		(922,960	)		(1,728,311	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,029		(2,504,795	)		(752,631	)		(1,752,164	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	12,000		(3,329,000	)		(1,468,360	)		(1,860,640	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,564		(2,653,213	)		(579,608	)		(2,073,605	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	11,206		(3,108,731	)		(674,207	)		(2,434,524	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	13,500		(3,745,125	)		(1,153,390	)		(2,591,735	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	13,543		(3,757,054	)		(1,123,231	)		(2,633,823	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	567		(56,820	)		(21,670	)		(35,150	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	1,136		(113,840	)		(44,239	)		(69,601	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	2,839		(284,499	)		(108,501	)		(175,998	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	6,500		(651,372	)		(338,648	)		(312,724	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	15,000		(1,503,166	)		(408,721	)		(1,094,445	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,220		(2,557,782	)		(1,075,676	)		(1,482,106	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	17,343		(4,811,238	)		(2,073,307	)		(2,737,931	)
Goldman Sachs International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	23,700		(2,375,003	)		(1,001,641	)		(1,373,362	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00			USD	15,873		(6,955,907	)		(3,460,672	)		(3,495,235	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	6,323		(1,754,106	)		(989,218	)		(764,888	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	8,827		(2,448,757	)		(1,400,834	)		(1,047,923	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	10,000		(2,774,167	)		(1,529,011	)		(1,245,156	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,029		(2,504,795	)		(749,038	)		(1,755,757	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	11,909		(3,303,755	)		(1,333,965	)		(1,969,790	)

76    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	13,000	$	(3,606,417	)	$	(1,272,222	)	$	(2,334,195	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	14,291		(3,964,562	)		(1,603,825	)		(2,360,737	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	20,000		(5,548,334	)		(2,787,401	)		(2,760,933	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	30,184		(8,373,544	)		(4,058,276	)		(4,315,268	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00			USD	3,606		(1,580,045	)		(674,835	)		(905,210	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00			USD	3,722		(1,631,054	)		(686,556	)		(944,498	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	3,000		(832,250	)		(182,715	)		(649,535	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	4,514		(1,252,259	)		(374,383	)		(877,876	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	9,543		(2,647,387	)		(1,038,837	)		(1,608,550	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	293		(29,366	)		(11,606	)		(17,760	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	547		(151,747	)		(43,998	)		(107,749	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	7,808		(2,166,069	)		(464,046	)		(1,702,023	)
												$	(104,611,306	)	$	(41,652,598	)	$	(62,958,708	)

* Termination date

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2021
First Boston†		(2.00	)%*		—	$	589,570
First Boston†		(0.50	)%*		—		2,771,590
First Boston†		(0.25	)%*		—		3,107,786
HSBC Securities (USA), Inc.†		0.08	%		—		117,719,355
HSBC Securities (USA), Inc.†		0.08	%		—		236,591,099
HSBC Securities (USA), Inc.†		0.08	%		—		266,943,981
JPMorgan Chase Bank†		0.07	%		—		40,316,973
JPMorgan Chase Bank†		0.10	%		—		100,482,825
JPMorgan Chase Bank†		0.13	%		—		542,728,445
						$	1,311,251,624

* Interest payment due from counterparty.

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2021.

abfunds.com AB INCOME FUND    ^|    77

PORTFOLIO OF INVESTMENTS (continued)

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

Overnight and Continuous

Up to 30 Days

31-90 Days

Greater than 90 Days

Total

Government – Treasuries

$

1,304,782,678

$

– 0

–

$

– 0

–

$

– 0

–

$

1,304,782,678

Corporates – Non-Investment Grade

589,570

– 0

–

– 0

–

– 0

–

589,570

Emerging Markets – Sovereigns

3,107,786

– 0

–

– 0

–

– 0

–

3,107,786

Governments – Sovereign Bonds

2,771,590

– 0

–

– 0

–

– 0

–

2,771,590

Total

$

1,311,251,624

$

– 0

–

$

– 0

–

$

– 0

–

$

1,311,251,624

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $1,563,711,663 or 33.7% of net assets.

(b) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(c) Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps.

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

(e) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts.

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

(g) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

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

(i) Fair valued by the Adviser.

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2021.

(m) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.34% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Athabasca Oil Corp. 9.75%, 11/01/2026		10/07/2021	$	3,658,349	$	3,799,094		0.08	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.981%, 11/16/2043		09/27/2018		444,129		445,406		0.01	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-36, Class PT 12.985%, 10/17/2044		09/04/2019		887,748		895,323		0.02	%

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PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 5.997%, 11/15/2044		10/09/2019	$	393,482		$	389,197			0.01	%
Diamond Offshore Drilling, Inc.		04/26/2021		467,814			125,015			0.00	%
Digicel Group Holdings Ltd. 7.00%, 11/15/2021		06/19/2020		13,245			76,659			0.00	%
Exide Global Holding NETH 10.75%, 06/30/2024		10/23/2020		948,245			1,102,696			0.02	%
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024		10/26/2020		– 0	–		– 0	–		0.00	%
Exide Technologies (First Lien) 11.00%, 10/31/2024		06/21/2019		692,006			– 0	–		0.00	%
Home Re Ltd. Series 2019-1, Class B1 4.439%, 05/25/2029		12/20/2019		2,068,354			2,060,317			0.04	%
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-CH1, Class M2 4.339%, 11/25/2024		11/06/2015		496,124			483,294			0.01	%
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 5.589%, 10/25/2025		09/18/2015		889,198			899,578			0.02	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		861,787			– 0	–		0.00	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.438%, 02/27/2023		02/11/2020		3,048,562			3,048,565			0.07	%
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025		07/19/2017		244,630			639,503			0.01	%
SoFi Consumer Loan Program LLC Series 2017-5, Class R1 Zero Coupon, 09/25/2026		09/18/2017		351,099			351,099			0.01	%
SoFi Consumer Loan Program Trust Series 2018-1, Class R1 Zero Coupon, 02/25/2027		02/01/2018		861,203			861,203			0.02	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		289,000			296,184			0.01	%
Tonon Luxembourg SA 6.50%, 10/31/2024		01/16/2013		1,804,783			8,930			0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		06/19/2013		3,510,948			47,498			0.00	%
Virgolino de Oliveira Finance SA 10.875%, 01/13/2020		06/09/2014		745,965			93,750			0.00	%
Virgolino de Oliveira Finance SA 11.75%, 02/09/2022		01/29/2014		916,308			8,471			0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.339%, 11/25/2025		09/06/2016		314,990			300,787			0.01	%

abfunds.com AB INCOME FUND    ^|    79

PORTFOLIO OF INVESTMENTS (continued)

(n) Defaulted.

(o) Inverse interest only security.

(p) IO – Interest Only.

(q) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2021.

(r) This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

(s) Affiliated investments.

(t) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

COP – Colombian Peso

EUR – Euro

GBP – Great British Pound

IDR – Indonesian Rupiah

MXN – Mexican Peso

PEN – Peruvian Sol

RUB – Russian Ruble

USD – United States Dollar

ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

JSC – Joint Stock Company

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TBA – To Be Announced

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $6,109,077,556)	$	6,114,858,403
Affiliated issuers (cost $111,172,521)		111,172,521
Cash		2,080,085
Cash collateral due from broker		2,773,000
Foreign currencies, at value (cost $22,000,275)		22,289,330
Unaffiliated interest and dividends receivable		65,721,394
Receivable for capital stock sold		12,184,269
Unrealized appreciation on forward currency exchange contracts		7,755,401
Receivable for investment securities sold		4,160,954
Receivable for variation margin on futures		703,759
Affiliated dividends receivable		753
Other assets		25,977
Total assets		6,343,725,846
Liabilities
Swaptions written, at value (premiums received $411,562)		153,075
Payable for reverse repurchase agreements		1,311,251,624
Payable for investment securities purchased		244,516,447
Market value on credit default swaps (net premiums received $41,652,598)		104,611,306
Unrealized depreciation on forward currency exchange contracts		16,141,961
Payable for capital stock repurchased		16,021,495
Cash collateral due to broker		2,780,000
Advisory fee payable		1,795,957
Dividends payable		1,085,199
Foreign capital gains tax payable		428,860
Distribution fee payable		224,892
Payable for variation margin on centrally cleared swaps		72,986
Transfer Agent fee payable		68,756
Administrative fee payable		32,857
Directors’ fees payable		6,359
Accrued expenses		830,176
Total liabilities		1,700,021,950
Net Assets	$	4,643,703,896
Composition of Net Assets
Capital stock, at par	$	587,836
Additional paid-in capital		4,677,656,560
Accumulated loss		(34,540,500	)
Net Assets	$	4,643,703,896

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	265,989,547		33,708,052	$	7.89	*
C	$	194,362,531		24,601,562	$	7.90
Advisor	$	4,153,233,549		525,713,107	$	7.90
Z	$	30,118,269		3,813,544	$	7.90

* The maximum offering price per share for Class A shares was $8.24 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    81

STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest (net of foreign taxes withheld of $78,811)	$	180,504,832
Dividends
Unaffiliated issuers		560,638
Affiliated issuers		6,114
Other income		69,585		$	181,141,169
Expenses
Advisory fee (see Note B)		20,199,894
Distribution fee—Class A		734,504
Distribution fee—Class C		2,128,683
Transfer agency—Class A		231,443
Transfer agency—Class C		167,399
Transfer agency—Advisor Class		3,306,833
Transfer agency—Class Z		5,482
Custody and accounting		309,892
Printing		274,451
Audit and tax		156,010
Registration fees		146,231
Legal		107,914
Administrative		91,610
Directors’ fees		80,350
Miscellaneous		143,927
Total expenses before interest expense		28,084,623
Interest expense		904,556
Total expenses					28,989,179
Less: expenses waived and reimbursed by the Adviser (see Note B)		(626,044	)
Net expenses					28,363,135
Net investment income					152,778,034
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					39,773,158
Forward currency exchange contracts					(5,015,142	)
Futures					(6,545,012	)
Swaps					14,313,751
Swaptions written					(51,432	)
Foreign currency transactions					7,743,352
Net change in unrealized appreciation/depreciation of:
Investments(b)					(103,184,245	)
Forward currency exchange contracts					(10,514,739	)
Futures					7,682,398
Swaps					22,431,504
Swaptions written					258,487
Foreign currency denominated assets and liabilities					357,304
Net loss on investment and foreign currency transactions					(32,750,616	)
Contributions from Affiliates (see Note B)					1,723,972
Net Increase in Net Assets from Operations				$	121,751,390

(a) Net of foreign realized capital gains taxes of $177,355.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $109,037.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	152,778,034		$	150,562,614
Net realized gain on investment and foreign currency transactions		50,218,675			34,435,875
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(82,969,291	)		(55,441,926	)
Contributions from Affiliates (see Note B)		1,723,972			– 0	–
Net increase in net assets from operations		121,751,390			129,556,563
Distributions to Shareholders
Class A		(9,801,938	)		(10,178,007	)
Class C		(5,496,599	)		(5,915,916	)
Advisor Class		(150,065,239	)		(156,640,759	)
Class Z(a)		(986,960	)		(437,740	)
Capital Stock Transactions
Net increase		65,001,121			699,536,203
Total increase		20,401,775			655,920,344
Net Assets
Beginning of period		4,623,302,121			3,967,381,777
End of period	$	4,643,703,896		$	4,623,302,121

(a) Commenced distribution on November 20, 2019

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    83

STATEMENT OF CASH FLOWS

For the Year Ended October 31, 2021

Cash flows from operating activities
Net increase in net assets from operations				$	121,751,390
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(10,531,727,929	)
Purchases of short-term investments		(1,341,267,473	)
Proceeds from disposition of long-term investments		10,418,684,852
Proceeds from disposition of short-term investments		1,267,160,834
Net realized gain on investment transactions and foreign currency transactions		(50,218,675	)
Net realized loss on forward currency exchange contracts		(5,015,142	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		82,969,291
Net accretion of bond discount and amortization of bond premium		69,742,873
Inflation index adjustment		(993,974	)
Decrease in receivable for investments sold		119,001,149
Increase in interest receivable		(7,365,654	)
Decrease in affiliated dividends receivable		462
Increase in other assets		(25,977	)
Increase in cash collateral due from broker		(782,000	)
Decrease in payable for investments purchased		(793,304,536	)
Increase in cash collateral due to broker		1,570,000
Increase in advisory fee payable		327,799
Increase in administrative fee payable		6,098
Increase in Foreign capital gains tax payable		428,860
Increase in Transfer Agent fee payable		1,517
Decrease in distribution fee payable		(19,968	)
Decrease in Directors’ fee payable		(833	)
Decrease in accrued expenses		(306,400	)
Proceeds from swaptions written, net		360,130
Proceeds on swaps, net		9,723,850
Proceeds for exchange-traded derivatives settlements, net		7,736,778
Total adjustments					(753,314,068	)
Net cash provided by (used in) operating activities					(631,562,678	)
Cash flows from financing activities
Redemptions of capital stock, net		(40,890,059	)
Cash dividends paid (net of dividend reinvestments)†		(54,973,209	)
Increase in reverse repurchase agreements		740,624,508
Net cash provided by (used in) financing activities					644,761,240
Effect of exchange rate on cash					8,100,656
Net increase in cash					21,299,218
Cash at beginning of year					3,070,197
Cash at end of year				$	24,369,415
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	111,191,049
Interest expense paid during the year	$	1,039,091

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in reverse repurchase agreements throughout the year.

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Income Fund (the “Fund”), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Effective November 20, 2019, the Fund commenced offering Class Z shares. Class B, Class K, Class R, Class I, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Advisor Class and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

86    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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.

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,

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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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on an exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are 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 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

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collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate 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, 2021:

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Governments – Treasuries	$	– 0	–	$	3,376,111,156	$	– 0	–	$	3,376,111,156
Corporates – Investment Grade		– 0	–		582,408,858		– 0	–		582,408,858
Corporates – Non-Investment Grade		– 0	–		563,234,714		10,547,037	(a)		573,781,751
Mortgage Pass-Throughs		– 0	–		331,508,615		– 0	–		331,508,615
Collateralized Mortgage Obligations		– 0	–		256,606,002		– 0	–		256,606,002
Emerging Markets – Sovereigns		– 0	–		232,976,137		– 0	–		232,976,137
Collateralized Loan Obligations		– 0	–		139,634,162		– 0	–		139,634,162
Emerging Markets – Corporate Bonds		– 0	–		124,916,818		8,930			124,925,748

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Investments in Securities:	Level 1			Level 2			Level 3			Total
Bank Loans	$	– 0	–	$	95,725,257		$	24,525,279		$	120,250,536
Commercial Mortgage-Backed Securities		– 0	–		91,232,348			– 0	–		91,232,348
Quasi-Sovereigns		– 0	–		63,722,682			– 0	–		63,722,682
Governments – Sovereign Bonds		– 0	–		58,066,380			– 0	–		58,066,380
Emerging Markets – Treasuries		– 0	–		51,416,321			– 0	–		51,416,321
Asset-Backed Securities		– 0	–		38,604,374			1,851,805			40,456,179
Agencies		– 0	–		39,842,453			– 0	–		39,842,453
Common Stocks		8,168,524			718,652			4,680,210	(a)		13,567,386
Local Governments – US Municipal Bonds		– 0	–		10,431,270			– 0	–		10,431,270
Preferred Stocks		4,757,481			– 0	–		3,158,647			7,916,128
Warrants		4,291			– 0	–		0	(a)		4,291
Short-Term Investments		111,172,521			– 0	–		– 0	–		111,172,521
Total Investments in Securities		124,102,817			6,057,156,199			44,771,908			6,226,030,924
Other Financial Instruments(b):
Assets:
Futures		12,003,933			– 0	–		– 0	–		12,003,933	(c)
Forward Currency Exchange Contracts		– 0	–		7,755,401			– 0	–		7,755,401
Centrally Cleared Credit Default Swaps		– 0	–		2,424,708			– 0	–		2,424,708	(c)
Liabilities:
Futures		(6,442,561	)		– 0	–		– 0	–		(6,442,561	)(c)
Forward Currency Exchange Contracts		– 0	–		(16,141,961	)		– 0	–		(16,141,961	)
Interest Rate Swaptions Written		– 0	–		(153,075	)		– 0	–		(153,075	)
Centrally Cleared Interest Rate Swaps		– 0	–		(9,026,384	)		– 0	–		(9,026,384	)(c)
Credit Default Swaps		– 0	–		(104,611,306	)		– 0	–		(104,611,306	)
Reverse Repurchase Agreements		(1,311,251,624	)		– 0	–		– 0	–		(1,311,251,624	)
Total	$	(1,181,587,435	)	$	5,937,403,582		$	44,771,908		$	4,800,588,055

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(a) The Fund held securities with zero market value at period end.

(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.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

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5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company. Certain prior year amounts have been reclassified to conform to current year presentation.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion of the Fund’s average daily net assets, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the “Expense Caps”) to .77%, 1.52%, .52%, and .52% of daily average net assets for Class A, Class C, Advisor Class, and Class Z

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shares, respectively. For the year ended October 31, 2021, such reimbursement/waivers amounted to $599,105. The Expense Caps may not be terminated by the Adviser before January 31, 2022. Any fees waived and expenses borne by the Adviser through April 22, 2018 are subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amounted to $396,862 for the year ended October 31, 2018. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the reimbursement for such services amounted to $91,610.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $836,849 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $27,325 from the sale of Class A shares and received $63,572 and $19,974 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $26,939.

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A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	26,220	$	1,336,392	$	1,251,439	$	111,173	$	6

During the year ended October 31, 2021, the Adviser reimbursed the Fund $1,723,972 for trading losses incurred due to a trade entry error.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $920,786 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	1,450,161,774	$	1,145,999,967
U.S. government securities		9,081,090,927		9,167,268,843

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The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	6,220,585,984
Gross unrealized appreciation	$	257,023,891
Gross unrealized depreciation		(243,595,992	)
Net unrealized appreciation	$	13,427,899

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, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a 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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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 year ended October 31, 2021, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

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The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s

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maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2021, the Fund held purchased swaptions for hedging and non-hedging purposes.

During the year ended October 31, 2021, the Fund held written swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets 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 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 swaps

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are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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

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

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.

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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 year ended October 31, 2021, the Fund held interest rate swaps for hedging and non-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

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Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

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

During the year ended October 31, 2021, 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.

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During the year ended October 31, 2021, 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	$	12,003,933	*	Receivable/Payable for variation margin on futures	$	6,442,561	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		25,187	*	Receivable/Payable for variation margin on centrally cleared swaps		42,376	*
Interest rate contracts					Receivable/Payable for variation margin on centrally cleared swaps		9,026,384	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		7,755,401		Unrealized depreciation on forward currency exchange contracts		16,141,961
Interest rate contracts					Swaptions written, at value		153,075
Credit contracts					Market value on credit default swaps		104,611,306
Total		$	19,784,521			$	136,417,663

* 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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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	$	(6,545,012	)	$	7,682,398
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(5,015,142	)		(10,514,739	)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		(109,751	)		(141,652	)
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		(51,432	)		258,487
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(5,359,284	)		7,566,168
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		19,673,035			14,865,336
Total		$	2,592,414		$	19,715,998

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Futures:
Average notional amount of buy contracts	$	547,404,500
Average notional amount of sale contracts	$	520,763,706
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	165,919,761
Average principal amount of sale contracts	$	662,521,625

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Purchased Swaptions:
Average notional amount	$	22,443,667	(a)
Swaptions Written:
Average notional amount	$	57,797,333	(b)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	214,895,000
Credit Default Swaps:
Average notional amount of sale contracts	$	396,824,922
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	4,254,000	(b)
Average notional amount of sale contracts	$	49,697,402

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

(b) Positions were open for six months during the year.

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, 2021. 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

Barclays Bank PLC

$

20,783

$

(20,783

)

$

– 0

–

$

– 0

–

$

– 0

–

Citibank, NA/Citigroup Global Markets, Inc.

4,014,043

(4,014,043

)

– 0

–

– 0

–

– 0

–

Deutsche Bank AG

5,017

(5,017

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

7,662

(7,662

)

– 0

–

– 0

–

– 0

–

Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.

697,341

(697,341

)

– 0

–

– 0

–

– 0

–

Natwest Markets PLC

690,874

– 0

–

– 0

–

– 0

–

690,874

State Street Bank & Trust Co.

2,319,681

(238,366

)

– 0

–

– 0

–

2,081,315

Total

$

7,755,401

$

(4,983,212

)

$

– 0

–

$

– 0

–

$

2,772,189

^

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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
Bank of America, NA	$	188,441	$	– 0	–	$	– 0	–	$	– 0	–	$	188,441
Barclays Bank PLC		2,115,935		(20,783	)		– 0	–		(2,095,152	)		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		44,075,877		(4,014,043	)		– 0	–		(37,360,572	)		2,701,262
Credit Suisse International		9,978,717		– 0	–		– 0	–		(9,978,717	)		– 0	–
Deutsche Bank AG		1,613,441		(5,017	)		– 0	–		(1,608,424	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		43,792,623		(7,662	)		(370,000	)		(43,414,961	)		– 0	–
HSBC Bank USA		77,656		– 0	–		– 0	–		– 0	–		77,656
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		8,005,019		– 0	–		(280,000	)		(7,725,019	)		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		10,820,267		(697,341	)		– 0	–		(2,614,101	)		7,508,825
State Street Bank & Trust Co.		238,366		(238,366	)		– 0	–		– 0	–		– 0	–
Total	$	120,906,342	$	(4,983,212	)	$	(650,000	)	$	(104,796,946	)	$	10,476,184	^

* 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

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investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2021, the Fund earned drop income of $2,073,501 which is included in interest income in the accompanying statement of operations.

4. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of

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the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2021, the average amount of reverse repurchase agreements outstanding was $960,918,550 and the daily weighted average interest rate was 0.08%. At October 31, 2021, the Fund had reverse repurchase agreements outstanding in the amount of $1,311,251,624 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2021:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
First Boston	$	6,468,946	$	(6,468,946	)	$	– 0	–
HSBC Securities (USA), Inc.		621,254,435		(620,753,902	)		500,533
JPMorgan Chase Bank		683,528,243		(683,528,243	)		– 0	–
Total	$	1,311,251,624	$	(1,310,751,091	)	$	500,533

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

5. Loan Participations and Assignments

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”) or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). A loan is often administered by a bank or other financial institution (the “Lender”) that acts as agent for all holders. The agent administers the term of the loan as specified in the loan agreement. When investing in Participations, the Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. In addition, when investing in Participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender and only upon receipt of payments by the Lender from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the Lender. When the Fund purchases Assignments from Lenders, it will typically acquire direct rights against the borrower on the loan. These loans may include participations in “bridge loans”, which are loans taken out by borrowers for a short period (typically less than six months) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high-yield bonds issued for the purpose of acquisitions. The Fund may also participate in unfunded loan

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commitments, which are contractual obligations for investing in future Participations, and may receive a commitment fee based on the amount of the commitment. Under these arrangements, the Fund may receive a fixed rate commitment fee and, if and to the extent the borrower borrows under the facility, the Fund may receive an additional funding fee.

Unfunded loan commitments and funded loans are marked to market daily.

As of October 31, 2021, the Fund had the following unfunded loan commitment which could be extended at the option of the borrower pursuant to the respective loan agreement. The unrealized appreciation on such loan commitment was $14,658.

Loan	Unfunded Loan Participation Commitments		Funded
Jones DesLauriers Insurance Management, Inc.	$	472,267		$    – 0	–

As of October 31, 2021, the Fund had no bridge loan commitments outstanding.

During the year ended October 31, 2021, the Fund received $50 of commitment fees.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		12,693,420			21,145,246		$	102,684,240		$	167,807,929
Shares issued in reinvestment of dividends		794,420			794,985			6,379,937			6,292,343
Shares converted from Class C		356,137			197,566			2,859,271			1,553,543
Shares redeemed		(16,512,385	)		(15,889,560	)		(132,616,025	)		(124,259,840	)
Net increase (decrease)		(2,668,408	)		6,248,237		$	(20,692,577	)	$	51,393,975

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	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class C
Shares sold		3,077,054			11,945,989		$	24,874,379		$	95,198,555
Shares issued in reinvestment of dividends		456,339			508,293			3,671,010			4,029,036
Shares converted to Class A		(355,698	)		(197,320	)		(2,859,271	)		(1,553,543	)
Shares redeemed		(5,920,156	)		(5,477,623	)		(47,610,467	)		(42,721,251	)
Net increase (decrease)		(2,742,461	)		6,779,339		$	(21,924,349	)	$	54,952,797
Advisor Class
Shares sold		167,986,666			265,870,110		$	1,352,943,498		$	2,104,021,251
Shares issued in reinvestment of dividends		12,483,656			12,977,218			100,377,691			102,871,686
Shares redeemed		(168,770,779	)		(210,433,650	)		(1,357,710,463	)		(1,630,716,915	)
Net increase		11,699,543			68,413,678		$	95,610,726		$	576,176,022
Class Z(a)
Shares sold		2,157,210			2,554,455		$	17,350,447		$	18,769,036
Shares issued in reinvestment of dividends		94,970			37,721			762,411			298,182
Shares redeemed		(759,196	)		(271,616	)		(6,105,537	)		(2,053,809	)
Net increase		1,492,984			2,320,560		$	12,007,321		$	17,013,409

(a) Commenced distribution on November 20, 2019.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

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

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

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

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higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

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

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

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 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

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LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

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Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	166,350,736	$	173,172,422
Total taxable distributions paid	$	166,350,736	$	173,172,422

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(25,821,866	)(a)
Unrealized appreciation/(depreciation)		8,964,995	(b)
Total accumulated earnings/(deficit)	$	(16,856,871	)(c)

(a) As of October 31, 2021, the Fund had a net capital loss carryforward of $6,276,058. During the fiscal year, the Fund utilized $49,285,069 of capital loss carry forwards to offset current year net realized gains. As of October 31, 2021, the cumulative deferred loss on straddles was $19,545,808.

(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 grantor trusts, the tax treatment of callable bonds, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

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NOTES TO FINANCIAL STATEMENTS (continued)

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2021, the fund had a net long-term capital loss carryforward of $6,276,058, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to contributions from the Adviser, the tax treatment of swaps, and taxable over distributions resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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 Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.96			$  7.98			$  7.49			$  8.09			$  8.08
Income From Investment Operations
Net investment income(a)(b)		.24			.26			.31			.29			.36
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.04	)		.02	(c)		.53			(.50	)		.05
Contributions from Affiliates		.00	(d)		– 0	–		.00	(d)		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.20			.28			.84			(.21	)		.41
Less: Dividends and Distributions
Dividends from net investment income		(.27	)		(.30	)		(.30	)		(.36	)		(.40	)
Return of capital		– 0	–		– 0	–		(.05	)		(.03	)		– 0	–
Total dividends and distributions		(.27	)		(.30	)		(.35	)		(.39	)		(.40	)
Net asset value, end of period		$  7.89			$  7.96			$  7.98			$  7.49			$  8.09
Total Return
Total investment return based on net asset value(e)*		2.48	%		3.55	%		11.50	%		(2.71	)%		5.17	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$265,990			$289,619			$240,567			$232,931			$165,294
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.79	%		.78	%		.77	%		1.08	%		1.03	%
Expenses, before waivers/reimbursements(f)		.80	%		.80	%		.83	%		1.16	%		1.11	%
Net investment income(b)		3.04	%		3.24	%		4.02	%		3.73	%		4.42	%
Portfolio turnover rate**		166	%		246	%		270	%		105	%		42	%

See footnote summary on page 119.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.97			$  7.99			$  7.50			$  8.10			$  8.09
Income From Investment Operations
Net investment income(a)(b)		.18			.20			.25			.23			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.04	)		.02	(c)		.53			(.50	)		.05
Contributions from Affiliates		.00	(d)		– 0	–		.00	(d)		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.14			.22			.78			(.27	)		.35
Less: Dividends and Distributions
Dividends from net investment income		(.21	)		(.24	)		(.25	)		(.30	)		(.34	)
Return of capital		– 0	–		– 0	–		(.04	)		(.03	)		– 0	–
Total dividends and distributions		(.21	)		(.24	)		(.29	)		(.33	)		(.34	)
Net asset value, end of period		$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Total Return
Total investment return based on net asset value(e)*		1.71	%		2.77	%		10.65	%		(3.43	)%		4.37	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$194,363			$217,968			$164,413			$82,283			$62,121
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.54	%		1.53	%		1.52	%		1.83	%		1.78	%
Expenses, before waivers/reimbursements(f)		1.55	%		1.55	%		1.57	%		1.92	%		1.87	%
Net investment income(b)		2.29	%		2.49	%		3.21	%		2.98	%		3.68	%
Portfolio turnover rate**		166	%		246	%		270	%		105	%		42	%

See footnote summary on page 119.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  7.97			$  7.99			$  7.50			$  8.10			$  8.09
Income From Investment Operations
Net investment income(a)(b)		.26			.27			.33			.31			.41
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.04	)		.03	(c)		.53			(.50	)		.02
Contributions from Affiliates		.00	(d)		– 0	–		.00	(d)		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		.22			.30			.86			(.19	)		.43
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.32	)		(.31	)		(.38	)		(.42	)
Return of capital		– 0	–		– 0	–		(.06	)		(.03	)		– 0	–
Total dividends and distributions		(.29	)		(.32	)		(.37	)		(.41	)		(.42	)
Net asset value, end of period		$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Total Return
Total investment return based on net asset value(e)*		2.73	%		3.80	%		11.76	%		(2.46	)%		5.44	%
Ratios/Supplemental Data
Net assets, end of period (000,000’s omitted)		$4,152			$4,097			$3,562			$2,222			$1,806
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.54	%		.53	%		.52	%		.83	%		.81	%
Expenses, before waivers/reimbursements(f)		.55	%		.55	%		.58	%		.91	%		.93	%
Net investment income(b)		3.28	%		3.48	%		4.24	%		3.98	%		5.11	%
Portfolio turnover rate**		166	%		246	%		270	%		105	%		42	%

See footnote summary on page 119.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31, 2021			November 20, 2019(g) to October 31, 2020
Net asset value, beginning of period		$  7.97			$  7.97
Income From Investment Operations
Net investment income(a)(b)		.27			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.05	)		.03	(c)
Net increase in net asset value from operations		.22			.30
Less: Dividends
Dividends from net investment income		(.29	)		(.30	)
Net asset value, end of period		$  7.90			$  7.97
Total Return
Total investment return based on net asset value(e)*		2.78	%		3.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$30,118			$18,492
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.49	%		.48	%^
Expenses, before waivers/reimbursements(f)		.49	%		.48	%^
Net investment income(b)		3.32	%		3.49	%^
Portfolio turnover rate**		166	%		246	%

See footnote summary on page 119.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

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

(d) Amount is less than $.005.

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

(f) The expense ratios, excluding interest expense are:

	Year Ended October 31,
	2021			2020			2019			2018			2017
Class A
Net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.77	%
Before waivers/reimbursements		.78	%		.79	%		.82	%		.85	%		.85	%
Class C
Net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.52	%		1.52	%
Before waivers/reimbursements		1.53	%		1.54	%		1.57	%		1.60	%		1.61	%
Advisor Class
Net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.54	%
Before waivers/reimbursements		.53	%		.54	%		.57	%		.60	%		.65	%
Class Z
Net of waivers/reimbursements		.47	%		.46	%		N/A			N/A			N/A
Before waivers/reimbursements		.47	%		.46	%		N/A			N/A			N/A

(g) Commencement of distributions.

* Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .04% for the year ended October 31, 2021.

** The Fund accounts for dollar roll transactions as purchases and sales.

^ Annualized.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    119

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of AB Income Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Income Fund (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 29, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2021. For foreign shareholders, 66.43% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾*

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Matthew S. Sheridan⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West
New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Investment Grade: Core Fixed Income Investment Team. Messrs. DiMaggio, Distenfeld, and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,##^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept. Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund, as defined in the 1940 Act, due to this position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also co-Head of Fixed Income.
Matthew S. Sheridan 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Income Fund (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution

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expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1- and 3-year periods ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that the fee rate for the period reviewed was above the median but that, due to subsequent increases in assets, the Fund had crossed a breakpoint and the effective fee rate was currently equal to the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund would be for services in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels and that the Fund’s net assets were above the first breakpoint level. Accordingly, the Fund’s current effective advisory fee rate reflected a reduction due to the breakpoint and would be further reduced to the extent the net assets of the Fund increase. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that

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there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s breakpoint arrangements were acceptable and provide a means for sharing economies of scale.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

140    ^|    AB INCOME FUND abfunds.com

AB INCOME FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IF-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB MUNICIPAL BOND INFLATION STRATEGY

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Municipal Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 8, 2021

This report provides management’s discussion of fund performance for the AB Municipal Bond Inflation Strategy for the annual period ended October 31, 2021.

The Fund’s investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB MUNICIPAL BOND INFLATION STRATEGY1
Class 1 Shares2		2.63%		9.01%
Class 2 Shares2		2.68%		9.21%
Class A Shares		2.54%		8.89%
Class C Shares		2.17%		8.12%
Advisor Class Shares3		2.66%		9.14%
Bloomberg 1-10 Year TIPS Index		3.55%		7.05%

1 Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance for the six- and 12-month periods ended October 31, 2021, by 0.03% and 0.03%, respectively.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

3 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended October 31, 2021.

All share classes of the Fund outperformed the benchmark for the 12-month period, but underperformed for the six-month period, before sales charges. The Fund invests primarily in municipal bonds and uses tax-efficient hedges for inflation protection. During the 12-month period, the Fund’s allocation to municipal bonds and overweight to municipal credit contributed, while the Fund’s allocation to municipals detracted during the six-month period as Treasuries outperformed. The use of Consumer Price Index (“CPI”) swaps, a more tax-efficient way of achieving inflation protection, contributed to absolute performance over both periods, was

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neutral relative to the benchmark over the 12-month period and was positive relative to the benchmark over the six-month period.

The Fund utilized derivatives in the form of CPI swaps for hedging purposes, which added to absolute performance for both periods. Interest rate swaps were utilized for hedging purposes and had no material impact on performance for either period. Credit default swaps were utilized for investment purposes and had no material impact on performance for either period.

MARKET REVIEW AND INVESTMENT STRATEGY

Yields have risen so far in 2021, particularly late in the reporting period, as investors have begun to digest the implications of the US Federal Reserve (the “Fed”) tapering of its asset purchase program and the likelihood of short-term interest-rate hikes next year. Even with the expected change in policy from the Fed, municipals continued to perform well over both the six- and 12-month time periods ending October 31, 2021. Heavy investor demand was a key driver of relative outperformance versus other investment-grade fixed-income sectors. Industry-wide flows into municipal bond funds were positive in 76 of the last 77 weeks of the period. Through October, investors added $92 billion into muni funds this year, just a few billion shy of the calendar-year record set back in 2019.

Additionally, strengthening credit fundamentals and attractive credit spreads caused excess demand for municipal credit. BBB and high-yield rated municipal indices outperformed more highly rated bonds significantly as credit spreads compressed. Toward the end of the period, the market began to experience some modest spread widening in certain idiosyncratic issuers and sectors. The Fund’s Senior Investment Management Team (the “Team”) views this spread widening as a reflection of spreads being too tight in certain sectors and not reflective of weakening fundamentals.

The Team continues to focus on real after-tax return by investing in municipal bonds that generate income exempt from federal income taxes. In seeking to manage volatility and interest-rate risk, the Team focuses on intermediate-term bonds and seeks to provide inflation protection by entering into inflation swap agreements or investing in other inflation-protected instruments.

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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    3

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, 2021, 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 3.30% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund seeks real after-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing principally in high-quality, predominantly investment-grade, municipal securities that pay interest exempt from federal taxation. As a fundamental policy, the Fund will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax for some taxpayers.

The Fund will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more national rating agencies or deemed to be of comparable credit quality by the Adviser. The Fund may invest up to 20% of its total assets in fixed-income securities rated BB or B or the equivalent by one or more national rating agencies (or deemed to be of comparable credit quality by the Adviser), which are not investment grade (“junk bonds”). If the rating of a fixed-income security falls below investment-grade, the Fund will not be obligated to sell the security and may continue to hold it if, in the Adviser’s opinion, the investment is appropriate under the circumstances.

The Fund may invest in fixed-income securities with any maturity and duration.

To provide inflation protection, the Fund will typically enter into inflation swaps. The Fund may use other inflation-indexed instruments. Payments to the Fund pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal income taxation. It is expected that the Fund’s primary use of derivatives will be for the purpose of inflation protection.

The Fund may also invest in 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.

(continued on next page)

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The Fund may utilize leverage for investment purposes through the use of tender option bond (“TOB”) transactions. The Adviser considers the impact of TOB transactions, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. 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 bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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, public health crises, 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 is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still

6    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS (continued)

uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

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.

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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: To the extent the Fund uses leveraging techniques, such as TOB transactions, its net asset value (“NAV”) may be more volatile because

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS (continued)

leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, found in the footer, then “Mutual Fund Information—Mutual Fund Performance at a Glance.”

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 3.00% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Class 1 and 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Municipal Bond Inflation Strategy Class A shares (from 10/31/2011 to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1		Taxable Equivalent Yields2
CLASS 1 SHARES3						0.37%		0.57%
1 Year		9.01%		9.01%
5 Years		3.63%		3.63%
10 Years		2.61%		2.61%
CLASS 2 SHARES3						0.47%		0.72%
1 Year		9.21%		9.21%
5 Years		3.75%		3.75%
10 Years		2.71%		2.71%
CLASS A SHARES						0.18%		0.28%
1 Year		8.89%		5.60%
5 Years		3.48%		2.85%
10 Years		2.43%		2.12%
CLASS C SHARES						-0.55%		-0.85%
1 Year		8.12%		7.12%
5 Years		2.72%		2.72%
10 Years4		1.69%		1.69%
ADVISOR CLASS SHARES5						0.43%		0.66%
1 Year		9.14%		9.14%
5 Years		3.74%		3.74%
10 Years		2.71%		2.71%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.67%, 0.57%, 0.85%, 1.61% and 0.60% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, to 0.60%, 0.50%, 0.75%, 1.50% and 0.50% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable.

3 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

4 Assumes conversion of Class C shares into Class A shares after eight years.

5 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		8.40%
5 Years		3.51%
10 Years		2.52%
CLASS 2 SHARES1
1 Year		8.50%
5 Years		3.63%
10 Years		2.63%
CLASS A SHARES
1 Year		4.92%
5 Years		2.73%
10 Years		2.05%
CLASS C SHARES
1 Year		6.41%
5 Years		2.60%
10 Years2		1.61%
ADVISOR CLASS SHARES3
1 Year		8.54%
5 Years		3.64%
10 Years		2.63%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

The 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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,025.40	$	3.83		0.75	%
Hypothetical**	$	1,000	$	1,021.42	$	3.82		0.75	%
Class C
Actual	$	1,000	$	1,021.70	$	7.64		1.50	%
Hypothetical**	$	1,000	$	1,017.64	$	7.63		1.50	%
Advisor Class
Actual	$	1,000	$	1,026.60	$	2.55		0.50	%
Hypothetical**	$	1,000	$	1,022.68	$	2.55		0.50	%
Class 1
Actual	$	1,000	$	1,026.30	$	3.06		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%
Class 2
Actual	$	1,000	$	1,026.80	$	2.55		0.50	%
Hypothetical**	$	1,000	$	1,022.68	$	2.55		0.50	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    13

PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $2,015.8

1 All data are as of October 31, 2021. 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.

14    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2021

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 95.4%
Long-Term Municipal Bonds – 90.7%
Alabama – 1.1%
Alabama Special Care Facilities Financing Authority-Birmingham AL (Children’s Hospital of Alabama Obligated Group (The)) Series 2015 5.00%, 06/01/2028	$	3,905	$	4,458,180
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016 5.00%, 02/01/2025		2,110		2,399,963
Series 2021 4.00%, 02/01/2039		1,675		1,957,330
Special Care Facilities Financing Authority of the City of Pell City Alabama (Noland Obligated Group) Series 2016-A 5.00%, 12/01/2031		11,235		11,278,393
Tuscaloosa County Industrial Development Authority Series 2019-A 4.50%, 05/01/2032(a)		1,468		1,567,870
				21,661,736
American Samoa – 0.1%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2015-A 6.625%, 09/01/2035		1,335		1,550,512
Series 2018 6.50%, 09/01/2028(a)		295		359,369
7.125%, 09/01/2038(a)		280		361,673
				2,271,554
Arizona – 2.3%
Arizona Industrial Development Authority Series 2021-B 4.00%, 07/01/2041		500		530,535
Arizona Industrial Development Authority (Equitable School Revolving Fund LLC Obligated Group) Series 2020 4.00%, 11/01/2030		935		1,118,205
5.00%, 11/01/2031-11/01/2033		2,350		2,989,642

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arizona Industrial Development Authority (Phoenix Children’s Hospital Obligated Group) Series 2021 4.00%, 02/01/2039(b)	$	1,800	$	2,126,403
5.00%, 02/01/2026-02/01/2031(b)		4,750		5,921,968
Arizona State University (Arizona State University COP) Series 2013-A 5.00%, 09/01/2022		3,220		3,349,158
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.542%, 07/01/2033		4,000		3,994,354
City of Phoenix Civic Improvement Corp. (City of Phoenix AZ Excise Tax Revenue) Series 2017-B 5.00%, 07/01/2022		1,995		2,058,931
City of Phoenix Civic Improvement Corp. (Phoenix Sky Harbor International Airport) Series 2017-A 5.00%, 07/01/2029		3,945		4,760,784
City of Tempe AZ (City of Tempe AZ COP) Series 2021 1.951%, 07/01/2031		2,400		2,343,606
Maricopa County Special Health Care District Series 2021-D 5.00%, 07/01/2022		4,595		4,742,249
Salt River Project Agricultural Improvement & Power District Series 2011-A 5.00%, 12/01/2024		3,140		3,152,257
Series 2021 5.00%, 01/01/2029		2,750		3,506,318
State of Arizona Lottery Revenue Series 2019 5.00%, 07/01/2028 (Pre-refunded/ETM)		5,000		6,301,524
Tempe Industrial Development Authority (Mirabella at ASU, Inc.) Series 2017-B 4.00%, 10/01/2023(a)		65		65,019
				46,960,953

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arkansas – 0.5%
University of Arkansas Series 2012 5.00%, 11/01/2042 (Pre-refunded/ETM)	$	9,335	$	9,558,994
California – 8.0%
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021-A 4.00%, 08/01/2047(a)		3,315		3,456,318
California Housing Finance Series 2021-1, Class A 3.50%, 11/20/2035		992		1,142,874
Series 2021-2 0.823%, 03/25/2035		2,500		167,698
3.75%, 03/25/2035		4,995		5,909,678
California Infrastructure & Economic Development Bank Series 2021 0.20%, 01/01/2050 (Pre-refunded/ETM)(a)		1,750		1,749,753
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) Series 2019 7.50%, 12/01/2040(a)		250		204,794
California State Public Works Board (California State Public Works Board Lease) Series 2021-A 5.00%, 02/01/2023		10,000		10,592,441
California State University Series 2021-B 2.374%, 11/01/2035		1,000		992,389
City of Los Angeles Department of Airports Series 2019 5.00%, 05/15/2039		1,000		1,225,334
Series 2021-A 5.00%, 05/15/2037		4,000		5,076,886
CMFA Special Finance Agency VII (CMFA Special Finance Agency VII The Breakwater Apartments) Series 2021 4.00%, 08/01/2047(a)		1,000		1,034,259

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CMFA Special Finance Agency VIII Elan Huntington Beach Series 2021 4.00%, 08/01/2047(a)	$	1,500	$	1,550,139
CSCDA Community Improvement Authority Series 2021 3.50%, 05/01/2047(a)(b)		2,300		2,310,046
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2046(a)		2,000		2,069,534
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 3.50%, 10/01/2046(a)		2,000		1,986,785
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(a)		1,500		1,375,350
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A 3.10%, 07/01/2045(a)		1,000		942,129
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 4.00%, 10/01/2048(a)		2,000		2,051,412
Golden State Tobacco Securitization Corp. Series 2018-A 3.50%, 06/01/2036		1,175		1,187,497
Los Angeles Department of Water & Power Series 2021-B 5.00%, 07/01/2041		10,000		12,886,716
Los Angeles Unified School District/CA Series 2020-A 5.00%, 07/01/2027		6,935		8,556,257
Orange County Transportation Authority Series 2021 5.00%, 10/15/2024		3,505		3,975,999

18    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Sacramento County Water Financing Authority NATL Series 2007-B 0.65% (LIBOR 3 Month + 0.57%), 06/01/2039(c)	$	5,000	$	4,969,442
San Francisco Intl Airport Series 2021-A 5.00%, 05/01/2031-05/01/2036		13,235		16,962,307
State of California Series 2014 5.00%, 08/01/2022-05/01/2025		4,250		4,634,291
Series 2020 5.00%, 11/01/2026-11/01/2030		12,110		15,853,528
Series 2021 4.00%, 10/01/2023-10/01/2035		25,345		29,055,640
5.00%, 09/01/2023		6,000		6,517,581
University of California Series 2022-S 5.00%, 05/15/2024-05/15/2036(b)		12,000		13,799,448
				162,236,525
Colorado – 3.2%
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/2029(a)		1,510		1,591,644
City & County of Denver Co. Airport System Revenue (Denver Intl Airport) Series 2012-A 5.00%, 11/15/2024		10,395		10,890,637
5.00%, 11/15/2025		3,000		3,143,041
Series 2018-A 5.00%, 12/01/2028-12/01/2029		16,555		20,502,041
Colorado Health Facilities Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2041		2,600		3,346,884
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019-A 5.00%, 08/01/2032		640		800,165
5.00%, 08/01/2033		2,250		2,804,035
Colorado Health Facilities Authority (Sanford Obligated Group) Series 2019-A 5.00%, 11/01/2033		1,525		1,934,604

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Denver City & County School District No. 1 Series 2014-B 5.00%, 12/01/2023	$	4,730	$	5,189,412
Series 2021 5.00%, 12/01/2039		6,785		8,780,376
Denver Urban Renewal Authority (Stapleton Development Corp.) Series 2013-A 5.00%, 12/01/2022		1,640		1,712,359
E-470 Public Highway Authority Series 2021-B 0.384% (SOFR + 0.35%), 09/01/2039(c)		2,000		2,004,267
Sterling Ranch Community Authority Board (Sterling Ranch Colorado Metropolitan District No. 2) Series 2020-A 3.75%, 12/01/2040		1,050		1,139,708
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2024		260		294,195
				64,133,368
Connecticut – 3.1%
City of New Haven CT Series 2018-A 5.50%, 08/01/2035		1,920		2,368,536
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2035-07/01/2040(b)		5,500		6,303,565
Connecticut State Health & Educational Facilities Authority (Yale University) Series 2020 1.10%, 07/01/2048		10,105		10,209,306
State of Connecticut 2013-A 5.00%, 10/15/2024		5,035		5,496,840
Series 2014-A 5.00%, 03/01/2028		2,230		2,459,785
Series 2014-F 5.00%, 11/15/2026		1,275		1,446,689
Series 2015-B 5.00%, 06/15/2025-06/15/2028		7,170		8,302,554
Series 2016-A 5.00%, 03/15/2022-03/15/2032		11,320		11,865,775

20    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2018-B 5.00%, 04/15/2028	$	1,440	$	1,802,290
State of Connecticut Clean Water Fund – State Revolving Fund Series 2013-A 5.00%, 03/01/2024		4,360		4,636,983
State of Connecticut Special Tax Revenue Series 2020 5.00%, 05/01/2035-05/01/2040		6,000		7,627,357
				62,519,680
Delaware – 0.4%
State of Delaware Series 2019 5.00%, 02/01/2028		6,810		8,518,952
District of Columbia – 0.9%
Metropolitan Washington Airports Authority Aviation Revenue Series 2018-A 5.00%, 10/01/2025-10/01/2026		8,565		10,040,641
Series 2021-A 4.00%, 10/01/2038		2,500		2,930,646
5.00%, 10/01/2036		1,695		2,168,789
Washington Metropolitan Area Transit Authority Series 2021-A 4.00%, 07/15/2039		2,450		2,922,968
				18,063,044
Florida – 5.2%
Capital Trust Agency, Inc. (Franklin Academy Series 2020 Obligated Group) Series 2020 4.00%, 12/15/2025(a)		300		321,027
Central Florida Expressway Authority Series 2019-B 5.00%, 07/01/2032-07/01/2034		13,255		16,731,601
AGM Series 2021-D 5.00%, 07/01/2035		8,685		11,332,823
Citizens Property Insurance, Inc. Series 2012-A 5.00%, 06/01/2022		7,315		7,517,530
City of Jacksonville FL Series 2012-A 5.00%, 10/01/2023 (Pre-refunded/ETM)		6,140		6,408,367
5.00%, 10/01/2026 (Pre-refunded/ETM)		4,050		4,227,017

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 08/15/2025	$	4,500	$	5,227,437
County of Broward FL Airport System Revenue Series 2019-A 4.00%, 10/01/2044		1,000		1,128,311
Series 2019-C 2.384%, 10/01/2026		2,600		2,701,887
County of Miami-Dade FL Series 2012-A 5.00%, 10/01/2023 (Pre-refunded/ETM)		1,500		1,565,888
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2023-06/01/2027		18,500		20,664,464
County of Miami-Dade Seaport Department AGM Series 2021-A 4.00%, 10/01/2040		8,000		9,348,625
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2030-10/01/2034		595		455,776
Florida Municipal Power Agency (Florida Municipal Power Agency All-Requirements Power Supply Project Revenue) Series 2015-B 5.00%, 10/01/2023		1,500		1,632,972
Series 2021 1.425%, 10/01/2026		500		499,349
Greater Orlando Aviation Authority Series 2017-A 5.00%, 10/01/2029 (Pre-refunded/ETM)		4,420		5,446,154
5.00%, 10/01/2033		4,000		4,826,882
Mid-Bay Bridge Authority Series 2015-A 5.00%, 10/01/2028		1,000		1,140,705
Palm Beach County Health Facilities Authority (Federation CCRC Operations Corp. Obligated Group) Series 2020 2.625%, 06/01/2025		375		381,103

22    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Polk County Industrial Development Authority (Mineral Development LLC) Series 2020 5.875%, 01/01/2033(a)	$	1,000	$	1,241,684
State of Florida Department of Transportation Turnpike System Revenue Series 2021-B 5.00%, 07/01/2022		2,810		2,900,239
				105,699,841
Georgia – 1.9%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2034-07/01/2035		9,555		10,921,931
Cobb County Kennestone Hospital Authority (WellStar Health System Obligated Group) Series 2021 5.00%, 04/01/2025		1,650		1,898,096
Main Street Natural Gas, Inc. (Citigroup, Inc.) Series 2021-C 4.00%, 05/01/2052		2,075		2,429,538
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018-A 4.00%, 04/01/2048		9,370		9,936,643
Series 2018-C 4.00%, 08/01/2048		6,850		7,317,696
Richmond County Board of Education Series 2021 5.00%, 10/01/2023		3,400		3,706,200
State of Georgia Series 2020-A 5.00%, 08/01/2027		2,380		2,946,921
				39,157,025
Guam – 0.3%
Territory of Guam Series 2019 5.00%, 11/15/2031		145		166,404
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015-D 5.00%, 11/15/2023-11/15/2031		3,970		4,476,227

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-F 5.00%, 01/01/2028	$	500	$	602,485
				5,245,116
Hawaii – 0.3%
City & County of Honolulu HI Series 2022-A 5.00%, 11/01/2026(b)		1,500		1,735,218
State of Hawaii Airports System Revenue Series 2020-A 5.00%, 07/01/2033		4,010		5,037,081
				6,772,299
Illinois – 4.1%
Chicago Board of Education Series 2018-A 5.00%, 12/01/2027		1,200		1,446,655
Series 2018-C 5.00%, 12/01/2021		3,165		3,176,786
Series 2019-B 5.00%, 12/01/2030-12/01/2033		500		614,364
Chicago Housing Authority Series 2018-A 5.00%, 01/01/2034-01/01/2038		8,760		10,266,183
Chicago O’Hare International Airport Series 2015-B 5.00%, 01/01/2029		5,000		5,675,332
Series 2016-C 5.00%, 01/01/2033		5,000		5,828,913
Series 2017-B 5.00%, 01/01/2035		1,475		1,758,423
Chicago O’Hare International Airport (Chicago O’Hare International Airport Customer Facility Charge) Series 2013 5.25%, 01/01/2023		2,500		2,634,802
5.50%, 01/01/2025		2,250		2,376,478
County of Cook IL Series 2012-C 5.00%, 11/15/2024		2,560		2,682,257
Illinois Finance Authority (Ascension Health Credit Group) Series 2016-C 5.00%, 02/15/2024		1,630		1,802,714
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 5.00%, 09/01/2022-09/01/2034		800		943,214

24    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (University of Chicago (The)) Series 2021-A 5.00%, 10/01/2033-10/01/2037	$	7,000	$	10,047,116
Illinois State Toll Highway Authority Series 2020-A 5.00%, 01/01/2040		1,080		1,365,862
State of Illinois Series 2013 5.00%, 07/01/2023		1,670		1,794,455
Series 2014 5.00%, 05/01/2030		4,180		4,598,983
Series 2017-B 5.00%, 12/01/2024		5,050		5,698,350
Series 2017-D 5.00%, 11/01/2021-11/01/2027		14,515		15,931,289
Series 2018-A 5.00%, 10/01/2023		2,785		3,020,886
Series 2018-B 5.00%, 10/01/2023		1,730		1,876,529
				83,539,591
Indiana – 1.3%
Indiana Finance Authority (CWA Authority, Inc.) Series 2021 5.00%, 10/01/2032-10/01/2034		9,955		13,199,470
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022-A 4.00%, 04/01/2035(b)		1,210		1,369,567
Indiana Finance Authority (Indiana University Health, Inc. Obligated Group) Series 2021 0.70%, 12/01/2046		8,150		8,115,041
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		495		495,880
Indiana Finance Authority (RES Polyflow Indiana LLC) Series 2019 7.00%, 03/01/2039(a)		2,380		2,221,699
				25,401,657

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Iowa – 1.1%
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2018-B 5.25%, 12/01/2050	$	2,250	$	2,447,661
Iowa Finance Authority (Iowa Finance Authority State Revolving Fund) Series 2021-A 5.00%, 08/01/2039		5,200		6,800,455
Iowa Higher Education Loan Authority (Simpson College) Series 2020 5.25%, 11/01/2040		2,275		2,514,444
Iowa Tobacco Settlement Authority Series 2021-A 4.00%, 06/01/2034-06/01/2040		3,515		4,127,704
5.00%, 06/01/2031		900		1,180,118
Series 2021-B 4.00%, 06/01/2049		2,000		2,212,820
PEFA, Inc. (Goldman Sachs Group, Inc. (The)) Series 2019 5.00%, 09/01/2049		2,360		2,789,621
				22,072,823
Kansas – 0.4%
Kansas Development Finance Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2054		6,000		7,568,419
Kentucky – 2.4%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 5.00%, 02/01/2026-02/01/2031		650		786,854
Kentucky Municipal Power Agency NATL Series 2015-A 5.00%, 09/01/2022-09/01/2023		4,875		5,132,738
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		7,260		8,217,770
Kentucky Public Energy Authority (Morgan Stanley) Series 2018-C 6.365% (CPI + 1.05%), 12/01/2049(c)		20,000		21,648,682

26    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019-C 4.00%, 02/01/2050	$	9,015	$	10,470,540
Kentucky Turnpike Authority Series 2012-A 5.00%, 07/01/2025 (Pre-refunded/ETM)		2,275		2,348,152
				48,604,736
Louisiana – 1.2%
City of New Orleans LA Series 2021-A 5.00%, 12/01/2028-12/01/2041		9,300		11,804,452
Jefferson Sales Tax District AGM Series 2017-B 5.00%, 12/01/2034		1,800		2,206,528
Parish of St. James LA (NuStar Logistics LP) Series 2020 5.85%, 08/01/2041(a)		340		383,876
6.10%, 06/01/2038-12/01/2040(a)		845		1,090,680
State of Louisiana Gasoline & Fuels Tax Revenue Series 2012-A 5.00%, 05/01/2027 (Pre-refunded/ETM)		2,860		2,928,903
5.00%, 05/01/2027		6,225		6,372,153
				24,786,592
Maryland – 6.5%
County of Baltimore MD Series 2021 4.00%, 03/23/2022		11,475		11,650,313
County of Montgomery MD Series 2019-A 5.00%, 11/01/2026		5,925		7,184,752
County of Prince George’s MD Series 2021-A 5.00%, 07/01/2027		10,000		12,325,305
Louisville and Jefferson County Metropolitan Sewer District Series 2021 3.00%, 10/14/2022		15,000		15,398,410
Maryland Health & Higher Educational Facilities Authority (Stevenson University, Inc.) Series 2021 4.00%, 06/01/2039		500		570,847
State of Maryland Series 2016 5.00%, 06/01/2022		13,990		14,383,175

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2017-B 5.00%, 08/01/2024	$	5,790	$	6,529,467
Series 2020-B 5.00%, 08/01/2028		9,315		11,780,552
Series 2021-A 5.00%, 08/01/2026-03/01/2032		21,715		27,365,951
Series 2022-C 5.00%, 03/01/2026(b)		11,500		13,408,910
Series 2022-D 4.00%, 08/01/2029(b)		4,500		5,333,566
Washington Suburban Sanitary Commission Series 2020 5.00%, 12/01/2022		4,140		4,354,500
				130,285,748
Massachusetts – 2.4%
Commonwealth of Massachusetts Series 2004-B 5.25%, 08/01/2023		2,450		2,664,043
Series 2020-B 5.00%, 07/01/2024		7,380		8,293,639
CIFGNA Series 2007-A 0.654% (LIBOR 3 Month + 0.57%), 05/01/2037(c)		3,275		3,233,893
Massachusetts Bay Transportation Authority Sales Tax Revenue Series 2004-C 5.25%, 07/01/2023		3,520		3,812,029
Massachusetts Clean Water Trust (The) (Massachusetts Water Pollution Abatement Trust (The) SRF) Series 2006 5.983% (CPI + 0.99%), 08/01/2022(c)		3,240		3,332,102
5.99% (CPI + 0.99%), 08/01/2023(c)		2,275		2,421,331
Series 2021-2 4.00%, 02/01/2023		1,645		1,722,619
Massachusetts Development Finance Agency (Broad Institute, Inc. (The)) Series 2017 5.00%, 04/01/2028		1,655		2,038,096
Massachusetts Port Authority Series 2021-E 5.00%, 07/01/2037-07/01/2039		11,280		14,356,978

28    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Massachusetts School Building Authority (Massachusetts School Building Authority Sales Tax) Series 2012-A 5.00%, 08/15/2023	$	2,475	$	2,568,278
Massachusetts Water Resources Authority Series 2012-A 5.00%, 08/01/2037 (Pre-refunded/ETM)		2,865		2,968,251
				47,411,259
Michigan – 1.6%
City of Detroit MI Series 2018 5.00%, 04/01/2035-04/01/2036		1,055		1,228,529
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) AGM Series 2006-D 0.688% (LIBOR 3 Month + 0.60%), 07/01/2032(c)		2,605		2,608,006
Michigan Finance Authority (City of Detroit MI) Series 2016-C 5.00%, 04/01/2026-04/01/2027		2,735		3,278,378
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) AGM Series 2014-D2 5.00%, 07/01/2024		10,545		11,790,611
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 5.00%, 11/15/2031		1,785		2,130,593
Michigan Strategic Fund (Michigan Strategic Fund - I 75 Improvement Project) Series 2018 5.00%, 12/31/2028-06/30/2029		9,090		11,261,497
				32,297,614
Minnesota – 0.3%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL Series 1998 0.105%, 08/01/2028(d)		25		25,000

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Hennepin MN Series 2020-B 5.00%, 12/01/2026	$	2,035	$	2,473,247
State of Minnesota (State of Minnesota Lease) Series 2012-B 5.00%, 03/01/2022		3,305		3,357,932
				5,856,179
Mississippi – 0.1%
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 5.00%, 10/01/2033(a)		1,000		1,174,984
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		1,500		1,752,567
				2,927,551
Missouri – 0.6%
Howard Bend Levee District XLCA Series 2005 5.75%, 03/01/2025-03/01/2027		255		284,289
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2016-A 5.00%, 08/15/2036		1,675		1,812,058
Missouri State Environmental Improvement & Energy Resources Authority (Missouri Environmental Improvement & Energy Resources Auth State Revolving Funds) Series 2020-A 5.00%, 01/01/2023		9,785		10,331,482
				12,427,829
Montana – 0.2%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%, 02/15/2031-02/15/2033		3,275		3,889,999

30    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Nebraska – 0.8%
Central Plains Energy Project (Goldman Sachs Group, Inc.(The)) Series 2018 5.00%, 03/01/2050	$	15,000	$	16,317,810
Nevada – 2.9%
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019-A 2.50%, 06/15/2024(a)		360		364,732
Clark County School District Series 2021-A 4.00%, 06/15/2034		10,085		12,137,208
5.00%, 06/15/2027-06/15/2028		8,780		10,843,270
Series 2021-B 5.00%, 06/15/2027-06/15/2029		16,800		20,899,063
BAM Series 2020-B 5.00%, 06/15/2027		4,305		5,270,933
State of Nevada Department of Business & Industry Series 2021 0.25%, 01/01/2050 (Pre-refunded/ETM)(a)		1,000		999,982
Tahoe-Douglas Visitors Authority Series 2020 4.00%, 07/01/2027		1,200		1,326,989
5.00%, 07/01/2029-07/01/2035		5,465		6,437,778
				58,279,955
New Hampshire – 0.1%
New Hampshire Business Finance Authority Series 2020-1 4.125%, 01/20/2034		1,518		1,792,875
New Jersey – 5.2%
Federal Home Loan Mortgage Corp. Enhanced Receipt Series 2019-B 3.87%, 11/15/2035(a)		12,363		14,082,540
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2014-P 5.00%, 06/15/2029		1,150		1,275,479

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Economic Development Authority (Port Newark Container Terminal LLC) Series 2017 5.00%, 10/01/2026-10/01/2027	$	3,810	$	4,528,439
New Jersey Economic Development Authority (United Airlines, Inc.) Series 2012 5.25%, 09/15/2029		1,365		1,417,667
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		4,390		5,151,238
Series 2018-A 5.00%, 06/15/2028-06/15/2031		26,170		30,695,225
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2014-C 5.25%, 06/15/2032		2,960		3,360,395
Series 2020-A 5.00%, 06/15/2036		1,140		1,437,101
New Jersey Turnpike Authority Series 2013-A 5.00%, 01/01/2023 (Pre-refunded/ETM)		1,600		1,689,165
5.00%, 01/01/2023		200		210,783
Series 2014-A 5.00%, 01/01/2028		4,785		5,338,054
Series 2014-C 5.00%, 01/01/2023		1,590		1,675,726
Series 2017-A
5.00%, 01/01/2033		7,300		8,753,173
Series 2020-D 5.00%, 01/01/2028		4,375		5,160,669
Series 2021-B 0.897%, 01/01/2025		1,000		994,377
1.713%, 01/01/2029		1,350		1,333,594
State of New Jersey Series 2020 5.00%, 06/01/2029		10,000		12,587,955

32    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tobacco Settlement Financing Corp./NJ Series 2018-A 5.00%, 06/01/2030	$	4,750	$	5,778,031
				105,469,611
New York – 6.9%
City of New York NY Series 2011-A 5.00%, 08/01/2023		3,220		3,231,490
Series 2020-A 5.00%, 08/01/2026		3,940		4,726,957
Series 2020-B 5.00%, 11/01/2027		3,000		3,713,339
Series 2020-C 5.00%, 08/01/2028-08/01/2033		6,920		8,796,810
Series 2021-A 4.00%, 08/01/2041		2,000		2,346,709
5.00%, 08/01/2033		2,000		2,618,433
Series 2021-D 1.396%, 08/01/2027		3,150		3,085,298
Series 2021-F 5.00%, 06/01/2044		2,500		2,880,884
County of Monroe NY Series 2021 5.00%, 06/01/2028		4,070		5,115,297
Metropolitan Transportation Authority Series 2012-C 5.00%, 11/15/2024 (Pre-refunded/ETM)		4,065		4,269,019
5.00%, 11/15/2025 (Pre-refunded/ETM)		5,000		5,250,946
Series 2012-F 5.00%, 11/15/2026		3,635		3,803,164
Series 2013-A 5.00%, 11/15/2026 (Pre-refunded/ETM)		2,300		2,466,727
Series 2013-E 5.00%, 11/15/2025 (Pre-refunded/ETM)		8,510		9,332,864
Series 2016-A 5.00%, 11/15/2024		1,130		1,276,901
Series 2016-B 5.00%, 11/15/2027		1,370		1,627,862
Series 2017-B 5.00%, 11/15/2023-11/15/2026		3,600		4,124,720
Series 2017-C 5.00%, 11/15/2026-11/15/2028		4,020		4,858,172
Series 2020-A 5.00%, 11/15/2045		5,120		6,464,786
Series 2020-E 4.00%, 11/15/2026		1,000		1,143,972
5.00%, 11/15/2028		4,000		4,915,191

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-D 0.363% (SOFR + 0.33%), 11/01/2035(c)	$	2,090	$	2,084,350
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2012-B 5.00%, 11/01/2026(e)		6,830		7,154,936
Series 2021 5.00%, 11/01/2031		1,000		1,315,881
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028(e)		6,565		7,236,802
Series 2021 2.202%, 03/15/2034		2,000		1,993,429
2.252%, 03/15/2032		2,000		1,993,642
New York State Thruway Authority (State of New York Pers Income Tax) Series 2021-A 4.00%, 03/15/2040		2,000		2,338,919
5.00%, 03/15/2025		2,225		2,562,781
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 5.00%, 01/01/2027-01/01/2029		9,255		11,117,080
Series 2020 4.00%, 10/01/2030		1,500		1,738,538
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2046		345		382,206
Port Authority of New York & New Jersey Series 2021-2 5.00%, 07/15/2028		1,025		1,270,133
Suffolk Tobacco Asset Securitization Corp. Series 2021 5.00%, 06/01/2028-06/01/2032		4,510		5,749,353
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021-A 2.00%, 05/15/2045		2,945		3,114,952
2.591%, 05/15/2036		2,000		2,007,650
2.917%, 05/15/2040		1,000		1,004,110
				139,114,303

34    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
North Carolina – 1.2%
City of Charlotte NC Water & Sewer System Revenue Series 2020 5.00%, 07/01/2022	$	2,230	$	2,301,766
Fayetteville State University Series 2023 5.00%, 04/01/2032(a)(b)		655		788,074
State of North Carolina Series 2013-D 4.00%, 06/01/2022		2,995		3,061,977
State of North Carolina (State of North Carolina Fed Hwy Grant) Series 2015 5.00%, 03/01/2026		6,710		7,687,496
Series 2019 5.00%, 03/01/2029		3,780		4,812,212
Series 2021 5.00%, 03/01/2028		1,175		1,465,527
State of North Carolina (State of North Carolina Lease) Series 2020-B 5.00%, 05/01/2022		3,255		3,333,601
				23,450,653
North Dakota – 0.0%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(a)		425		426,342
7.00%, 12/15/2043(a)		440		440,055
				866,397
Ohio – 1.6%
American Municipal Power, Inc. Series 2016-A 5.00%, 02/15/2036		5,000		5,813,648
Buckeye Tobacco Settlement Financing Authority Series 2020-A 4.00%, 06/01/2039		1,000		1,136,683
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2037		3,385		4,025,530
City of Cleveland OH Airport System Revenue AGM Series 2016-B 5.00%, 01/01/2023-01/01/2024		2,585		2,774,834

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Cleveland OH Income Tax Revenue Series 2017-B1 5.00%, 10/01/2027-10/01/2030	$	7,585	$	9,373,952
Series 2017-B2 5.00%, 10/01/2029		1,485		1,839,450
County of Cuyahoga OH (MetroHealth System/The) Series 2017 5.00%, 02/15/2037		5,600		6,548,909
Ohio Air Quality Development Authority (Energy Harbor Nuclear Generation LLC) Series 2009-A 4.375%, 06/01/2033		235		238,579
Ohio Water Development Authority Water Pollution Control Loan Fund (Energy Harbor Nuclear Generation LLC) Series 2016-A 4.375%, 06/01/2033		420		426,397
Series 2016-B 4.375%, 06/01/2033		825		837,565
				33,015,547
Oklahoma – 0.1%
Oklahoma Development Finance Authority (Gilcrease Expressway West) Series 2020 1.625%, 07/06/2023		500		503,404
Oklahoma Municipal Power Authority Series 2019-A 5.00%, 01/01/2022		1,140		1,148,970
				1,652,374
Oregon – 0.3%
Deschutes County Hospital Facilities Authority (St Charles Health System, Inc.) Series 2016-A 4.00%, 01/01/2033		1,000		1,102,606
Tri-County Metropolitan Transportation District of Oregon Series 2018-A 4.00%, 10/01/2033		1,960		2,237,806
5.00%, 10/01/2029		1,910		2,336,763
				5,677,175
Other – 0.2%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(a)		3,820		4,029,304

36    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania – 4.2%
Allegheny County Airport Authority Series 2021-A 4.00%, 01/01/2037-01/01/2041	$	7,005	$	8,035,183
5.00%, 01/01/2035		5,205		6,583,201
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 5.00%, 07/01/2032-07/01/2035		4,500		5,626,038
City of Philadelphia PA Series 2017 5.00%, 08/01/2028		12,990		15,924,159
City of Philadelphia PA Airport Revenue Series 2021 5.00%, 07/01/2028		3,035		3,740,350
City of Philadelphia PA Water & Wastewater Revenue Series 2017-A 5.00%, 10/01/2032-10/01/2033		2,135		2,611,590
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2018 5.00%, 09/01/2034		1,500		1,840,016
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.125%, 07/01/2025		1,690		1,806,991
Pennsylvania Higher Educational Facilities Authority (University of Pennsylvania Health System Obligated Group (The)) Series 2022 4.00%, 08/15/2042(b)		2,000		2,291,669
Pennsylvania Turnpike Commission Series 2017 5.00%, 12/01/2028-12/01/2029		3,005		3,696,102
Series 2017-B 5.00%, 06/01/2034-06/01/2036		7,580		9,056,965
Series 2019 5.00%, 12/01/2023		4,250		4,653,461
Series 2021-B 4.00%, 12/01/2039		2,000		2,329,707
5.00%, 12/01/2034-12/01/2035		2,850		3,702,221

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2040	$	1,000	$	1,198,182
School District of Philadelphia (The) Series 2016-F 5.00%, 09/01/2034		5,000		5,911,119
State Public School Building Authority Series 2012 5.00%, 04/01/2023 (Pre-refunded/ETM)		2,400		2,446,967
5.00%, 04/01/2026 (Pre-refunded/ETM)		2,750		2,803,816
				84,257,737
Puerto Rico – 0.3%
Puerto Rico Electric Power Authority AGM Series 2007-V 5.25%, 07/01/2031		970		1,070,598
Puerto Rico Highway & Transportation Authority AGC Series 2005-L 5.25%, 07/01/2041		790		859,675
AGC Series 2007-N 5.25%, 07/01/2034-07/01/2036		2,105		2,273,253
AGM Series 2007-C 5.25%, 07/01/2036		100		107,738
Puerto Rico Public Buildings Authority (Commonwealth of Puerto Rico) NATL Series 2007 6.00%, 07/01/2025		100		109,621
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024		1,024		978,807
				5,399,692
South Carolina – 1.6%
County of Richland SC Series 2021-A 5.00%, 03/01/2028		13,020		16,311,982
Renewable Water Resources Series 2012 5.00%, 01/01/2024 (Pre-refunded/ETM)		2,570		2,590,455
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.25%, 06/01/2040(a)		1,000		1,026,306

38    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
South Carolina Public Service Authority Series 2016-A 5.00%, 12/01/2034-12/01/2036	$	2,535	$	2,970,196
Series 2016-B 5.00%, 12/01/2037		5,040		5,983,935
Series 2016-C 5.00%, 12/01/2035		930		1,106,517
Series 2021-B 4.00%, 12/01/2039		1,975		2,324,055
				32,313,446
Tennessee – 0.8%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(a)		1,410		1,368,337
City of Pigeon Forge TN Series 2021-B 5.00%, 06/01/2024		4,545		5,087,390
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2021-A 5.00%, 07/01/2031(b)		5,095		6,528,539
Metropolitan Government of Nashville & Davidson County TN Series 2012 5.00%, 07/01/2023 (Pre-refunded/ETM)		2,385		2,461,191
				15,445,457
Texas – 7.4%
Birdville Independent School District Series 2015-B 5.00%, 02/15/2022		3,825		3,878,270
Board of Regents of the University of Texas System Series 2016-H 5.00%, 08/15/2022		6,225		6,461,935
Central Texas Regional Mobility Authority Series 2021-B 5.00%, 01/01/2030-01/01/2039		7,400		9,398,755
Series 2021-C 5.00%, 01/01/2027		5,000		5,817,286
City of Houston TX Series 2021-A 5.00%, 03/01/2026-03/01/2027		6,680		8,047,305

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Houston TX Airport System Revenue Series 2021-A 4.00%, 07/01/2035-07/01/2037	$	2,285	$	2,571,027
5.00%, 07/01/2028-07/01/2033		4,905		6,256,919
City of Houston TX Airport System Revenue (United Airlines, Inc.) Series 2014 5.00%, 07/01/2029		2,465		2,670,386
City of Houston TX Combined Utility System Revenue Series 2014-C 5.00%, 05/15/2024		1,100		1,230,333
Series 2020-C 5.00%, 11/15/2022		4,330		4,543,413
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2038-02/01/2040		6,220		7,979,055
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2041		905		1,037,184
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2020-B 5.00%, 12/01/2021-12/01/2023		6,425		6,885,799
Fort Worth Independent School District Series 2021-A 5.00%, 02/15/2026-02/15/2027		5,250		6,292,728
Harris County Cultural Education Facilities Finance Corp. (Texas Children’s Hospital Obligated Group) Series 2021 4.00%, 10/01/2041		2,000		2,377,776
Lewisville Independent School District Series 2020 5.00%, 08/15/2023-08/15/2024		4,725		5,224,606
Lower Colorado River Authority (LCRA Transmission Services Corp.) Series 2021 5.00%, 05/15/2029		800		1,016,059
New Hope Cultural Education Facilities Finance Corp. (Westminster Manor) Series 2016 5.00%, 11/01/2031		1,000		1,117,867

40    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Newark Higher Education Finance Corp. (TLC Academy) Series 2021-A 4.00%, 08/15/2041	$	1,690	$	1,797,281
North Texas Tollway Authority (North Texas Tollway System) Series 2017-A 5.00%, 01/01/2038		3,000		3,159,938
Series 2021-B 4.00%, 01/01/2032		1,080		1,306,550
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 3.625%, 01/01/2035(a)		240		246,722
Series 2021 2.00%, 01/01/2027(a)		550		547,583
San Antonio Water System Series 2021-A 5.00%, 05/15/2028-05/15/2037		9,505		12,334,574
Spring Independent School District Series 2021 5.00%, 08/15/2027		1,430		1,755,922
State of Texas Series 2021-A 4.00%, 08/01/2025		2,355		2,645,437
5.00%, 08/01/2026-08/01/2029		7,970		9,689,771
Series 2021-B 5.00%, 08/01/2028		2,340		2,921,203
Tarrant County Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.) Series 2015 5.25%, 11/15/2035(f)(g)		900		513,000
Tarrant County Cultural Education Facilities Finance Corp. (CHRISTUS Health Obligated Group) Series 2018-A 5.00%, 07/01/2030-07/01/2031		13,405		16,589,654
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025		1,105		884,000

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Texas Water Development Board (Texas Water Development Board State Revolving Fund) Series 2021 4.00%, 08/01/2036(b)	$	10,410	$	12,609,156
				149,807,494
Utah – 0.5%
City of Salt Lake City UT Airport Revenue
Series 2021-A 4.00%, 07/01/2040		2,915		3,386,901
5.00%, 07/01/2033		4,000		5,128,809
Military Installation Development Authority
Series 2021-A 4.00%, 06/01/2041		1,000		999,299
				9,515,009
Virginia – 0.6%
Fairfax County Economic Development Authority (County of Fairfax VA) Series 2020 5.00%, 08/01/2022-08/01/2033		1,255		1,531,700
Hampton Roads Transportation Accountability Commission Series 2021-A 5.00%, 07/01/2026		2,685		3,210,831
Virginia Commonwealth Transportation Board Series 2012 5.00%, 05/15/2028 (Pre-refunded/ETM)		4,305		4,416,372
5.00%, 05/15/2029 (Pre-refunded/ETM)		2,250		2,308,208
				11,467,111
Washington – 4.1%
Central Puget Sound Regional Transit Authority (Central Puget Sound Regional Transit Authority Sales Tax) Series 2012-P 5.00%, 02/01/2023-02/01/2025		7,815		7,908,497
City of Seattle WA Municipal Light & Power Revenue Series 2021-A 4.00%, 07/01/2033-07/01/2035		4,080		4,994,797
City of Seattle WA Water System Revenue Series 2017 5.00%, 08/01/2023		4,020		4,354,432

42    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Port of Seattle WA Series 2013 5.00%, 07/01/2024	$	4,820	$	5,180,579
Series 2019 5.00%, 04/01/2033-04/01/2034		3,000		3,698,933
Series 2021 4.00%, 08/01/2040		2,000		2,330,108
5.00%, 08/01/2022-08/01/2023		10,285		10,731,710
State of Washington Series 2015-R 5.00%, 07/01/2026		13,325		15,160,760
Series 2021-D 5.00%, 07/01/2029		4,380		5,624,327
Series 2021-F 5.00%, 06/01/2029		3,165		4,057,476
Series 2021-R 5.00%, 08/01/2022		15,880		16,454,746
Washington State Convention Center Public Facilities District (Washington State Convention Center Public Facilities District Hotel Occupancy Tax) Series 2021 4.00%, 07/01/2031		1,600		1,825,026
Washington State Housing Finance Commission Series 2021-1, Class A 3.50%, 12/20/2035		994		1,140,121
Series 2021-1, Class X 0.725%, 12/20/2035(h)		994		60,343
				83,521,855
West Virginia – 0.2%
Tobacco Settlement Finance Authority/WV Series 2020 4.875%, 06/01/2049		2,600		2,712,827
West Virginia Economic Development Authority (Arch Resources, Inc.) Series 2021 4.125%, 07/01/2045		265		278,675
				2,991,502
Wisconsin – 2.2%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(a)		1,000		963,324
State of Wisconsin Series 2021-2 5.00%, 05/01/2026-05/01/2029		11,850		14,621,127

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
UMA Education, Inc. Series 2019 5.00%, 10/01/2022-10/01/2029(a)	$	2,535	$	2,927,954
Wisconsin Department of Transportation Series 2013-1 5.00%, 07/01/2023(e)		5,500		5,935,401
5.00%, 07/01/2024 (Pre-refunded/ETM)		6,500		7,011,699
Wisconsin Public Finance Authority (Appalachian Regional Healthcare System Obligated Group) Series 2021 5.00%, 07/01/2035-07/01/2040		1,975		2,487,175
Wisconsin Public Finance Authority (Catholic Bishop of Chicago(The)) Series 2021 5.75%, 07/25/2041(a)		5,000		5,294,286
Wisconsin Public Finance Authority (Renown Regional Medical Center) Series 2020 4.00%, 06/01/2035		1,220		1,433,213
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021-B 2.25%, 06/01/2027(b)		1,500		1,488,347
Wisconsin Public Finance Authority (Southeastern Regional Medical Center Obligated Group) Series 2022 5.00%, 02/01/2033(b)		1,725		2,138,534
				44,301,060
Total Long-Term Municipal Bonds (cost $1,783,975,425)				1,828,555,451
Short-Term Municipal Notes – 4.7%
California – 0.7%
City of Los Angeles CA Series 2021-B 5.00%, 09/01/2022(b)		13,070		13,580,233
Connecticut – 0.1%
Connecticut State Development Authority (Embraer Aircraft Holding, Inc.) Series 2010
0.06%, 10/01/2037(i)		1,400		1,400,000

44    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Delaware – 0.5%
State of Delaware Series 2021 5.00%, 02/01/2022	$	11,265	$	11,400,341
District of Columbia – 0.1%
District of Columbia (Carnegie Endowment for International Peace) Series 2010 0.05%, 11/01/2045(i)		2,500		2,500,000
Florida – 1.3%
Florida Development Finance Corp. (Lakeland Regional Health Systems Obligated Group) Series 2021 5.00%, 11/15/2021		3,655		3,661,396
Halifax Hospital Medical Center (Halifax Hospital Medical Center Obligated Group) Series 2010 0.07%, 06/01/2048(i)		1,685		1,685,000
School Board of Miami-Dade County (The) Series 2021 2.50%, 02/23/2022		20,425		20,573,700
				25,920,096
Illinois – 0.2%
Illinois Development Finance Authority (North Park University) Series 2016 0.05%, 10/01/2029(i)		2,565		2,565,000
Illinois Finance Authority (Latin School of Chicago (The)) Series 2005-B 0.06%, 08/01/2035(i)		1,300		1,300,000
				3,865,000
Maryland – 0.1%
Maryland Health & Higher Educational Facilities Authority (Luminis Health Obligated Group) Series 2011 0.06%, 07/01/2043(i)		1,250		1,250,000
Massachusetts – 0.1%
City of Quincy MA Series 2021 1.50%, 01/14/2022		1,330		1,333,670

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York – 0.0%
New York City Health and Hospitals Corp. Series 2008-B 0.06%, 02/15/2031(i)	$	1,000	$	1,000,000
South Carolina – 0.5%
Beaufort County School District/SC Series 2021-A 5.00%, 03/01/2022		7,355		7,472,797
South Carolina Association of Governmental Organizations Series 2021-A 3.00%, 03/01/2022		2,960		2,988,387
				10,461,184
Texas – 1.1%
Austin Independent School District Series 2021 5.00%, 08/01/2022		4,880		5,055,870
County of Collin TX Series 2021 5.00%, 02/15/2022		5,500		5,576,597
Dallas Independent School District Series 2021-C 5.00%, 02/15/2022		5,300		5,373,502
Hays Consolidated Independent School District Series 2021 5.00%, 02/15/2022		6,255		6,342,112
				22,348,081
Total Short-Term Municipal Notes (cost $95,079,974)				95,058,605
Total Municipal Obligations (cost $1,879,055,399)				1,923,614,056
CORPORATES - INVESTMENT GRADE – 0.8%
Industrial – 0.8%
Capital Goods – 0.2%
Caterpillar Financial Services Corp. 0.319% (SOFR + 0.27%), 09/13/2024(c)		2,500		2,502,400
John Deere Capital Corp. 0.169% (SOFR + 0.12%), 07/10/2023(c)		1,435		1,435,172
				3,937,572
Consumer Non-Cyclical – 0.5%
Baylor Scott & White Holdings
Series 2021 0.827%, 11/15/2025		1,000		969,760
1.777%, 11/15/2030		1,000		974,970

46    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Sutter Health Series 20A 3.161%, 08/15/2040	$	1,000	$	1,039,020
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031		2,300		2,249,745
UPMC Series D-1 3.60%, 04/03/2025		5,600		5,992,112
				11,225,607
Services – 0.1%
Hackensack Meridian Health, Inc. Series 2020
2.675%, 09/01/2041		1,790		1,776,504
Total Corporates – Investment Grade (cost $17,061,088)				16,939,683
CORPORATES - NON-INVESTMENT GRADE – 0.3%
Industrial – 0.3%
Communications - Media – 0.1%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(a)		1,933		1,876,131
Consumer Non-Cyclical – 0.1%
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(a)		2,000		1,990,380
Transportation - Airlines – 0.1%
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)		650		681,629
5.75%, 04/20/2029(a)		575		618,896
United Airlines, Inc. 4.375%, 04/15/2026(a)		600		621,252
4.625%, 04/15/2029(a)		275		283,591
				2,205,368
Total Corporates – Non-Investment Grade (cost $6,032,257)				6,071,879
GOVERNMENTS - TREASURIES – 0.3%
United States – 0.3%
U.S. Treasury Notes 2.625%, 02/15/2029(e) (cost $4,999,224)		5,000		5,404,687

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.1%
Risk Share Floating Rate – 0.1%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 4.339% (LIBOR 1 Month + 4.25%), 11/25/2023(c)	$	130	$	134,432
Series 2014-DN3, Class M3 4.089% (LIBOR 1 Month + 4.00%), 08/25/2024(c)		55		56,654
Series 2016-DNA4, Class M3 3.889% (LIBOR 1 Month + 3.80%), 03/25/2029(c)		208		215,251
Series 2017-DNA3, Class M2 2.589% (LIBOR 1 Month + 2.50%), 03/25/2030(c)		270		275,767
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C03, Class 2M2 2.989% (LIBOR 1 Month + 2.90%), 07/25/2024(c)		92		93,909
Series 2015-C02, Class 1M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(c)		86		87,839
Series 2016-C03, Class 2M2 5.989% (LIBOR 1 Month + 5.90%), 10/25/2028(c)		172		180,849
Series 2017-C01, Class 1M2 3.639% (LIBOR 1 Month + 3.55%), 07/25/2029(c)		304		313,397
Series 2017-C02, Class 2M2 3.739% (LIBOR 1 Month + 3.65%), 09/25/2029(c)		146		150,618
Series 2017-C03, Class 1M2 3.089% (LIBOR 1 Month + 3.00%), 10/25/2029(c)		440		452,879
Total Collateralized Mortgage Obligations (cost $1,831,511)				1,961,595
COMMERCIAL MORTGAGE-BACKED SECURITY – 0.1%
Agency CMBS – 0.1%
Federal Home Loan Mortgage Corp. Series 2021-ML10, Class ACA 2.046%, 06/25/2038 (cost $1,036,466)		997		1,012,961

48    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
SHORT-TERM INVESTMENTS – 3.4%
Investment Companies – 3.1%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(j)(k)(l) (cost $63,363,666)		63,363,666	$	63,363,666
Commercial Paper – 0.3%
City of San Antonio TX Series A 0.08%, 11/18/2021 (cost $5,600,000)		5,600		5,600,031
Total Short-Term Investments (cost $68,963,666)				68,963,697
Total Investments – 100.4% (cost $1,978,979,611)				2,023,968,558
Other assets less liabilities – (0.4)%				(8,194,643	)
Net Assets – 100.0%			$	2,015,773,915

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

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

15,000

04/29/2024

2.765%

CPI#

Maturity

$

597,603

$

– 0

–

$

597,603

USD

30,000

08/06/2024

2.815%

CPI#

Maturity

749,133

– 0

–

749,133

USD

20,000

11/02/2024

3.310%

CPI#

Maturity

– 0

–

– 0

–

– 0

–

USD

5,345

01/15/2025

2.565%

CPI#

Maturity

287,256

– 0

–

287,256

USD

2,673

01/15/2025

2.585%

CPI#

Maturity

141,406

– 0

–

141,406

USD

2,672

01/15/2025

2.613%

CPI#

Maturity

138,259

– 0

–

138,259

USD

10,000

04/01/2026

2.508%

CPI#

Maturity

566,551

– 0

–

566,551

USD

30,000

08/06/2026

2.689%

CPI#

Maturity

928,755

– 0

–

928,755

USD

25,000

10/04/2026

2.725%

CPI#

Maturity

464,102

– 0

–

464,102

USD

13,600

01/15/2027

CPI#

3.466%

Maturity

19,652

(19,279

)

38,931

USD

13,000

01/15/2027

CPI#

3.320%

Maturity

(108,707

)

– 0

–

(108,707

)

USD

19,310

01/15/2028

1.230%

CPI#

Maturity

3,038,682

– 0

–

3,038,682

USD

14,770

01/15/2028

0.735%

CPI#

Maturity

2,908,223

– 0

–

2,908,223

USD

25,000

10/04/2028

2.661%

CPI#

Maturity

501,156

– 0

–

501,156

USD

12,000

08/29/2029

1.748%

CPI#

Maturity

1,590,355

– 0

–

1,590,355

USD

15,000

12/23/2029

1.979%

CPI#

Maturity

1,631,487

– 0

–

1,631,487

USD

4,825

01/15/2030

1.572%

CPI#

Maturity

727,804

– 0

–

727,804

USD

4,825

01/15/2030

1.587%

CPI#

Maturity

720,285

– 0

–

720,285

USD

1,670

01/15/2030

1.714%

CPI#

Maturity

227,128

– 0

–

227,128

USD

1,670

01/15/2030

1.731%

CPI#

Maturity

224,141

– 0

–

224,141

USD

7,850

01/15/2031

2.782%

CPI#

Maturity

248,547

– 0

–

248,547

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    49

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	6,150		01/15/2031	2.680%	CPI#	Maturity	$	265,650		$	– 0	–	$	265,650
USD	5,500		04/15/2032	CPI#	2.909%	Maturity		(34,273	)		– 0	–		(34,273	)
USD	5,000		04/15/2032	CPI#	2.748%	Maturity		(132,830	)		– 0	–		(132,830	)
USD	15,000		12/02/2035	2.074%	CPI#	Maturity		1,932,864			– 0	–		1,932,864
USD	25,000		04/01/2036	2.438%	CPI#	Maturity		1,597,414			– 0	–		1,597,414
USD	32,000		04/29/2036	2.503%	CPI#	Maturity		1,625,523			– 0	–		1,625,523
USD	10,000		05/01/2036	2.510%	CPI#	Maturity		493,690			– 0	–		493,690
USD	30,000		08/03/2036	2.488%	CPI#	Maturity		1,129,187			– 0	–		1,129,187
USD	20,000		08/06/2036	2.440%	CPI#	Maturity		895,949			– 0	–		895,949
USD	40,000		10/04/2036	2.510%	CPI#	Maturity		840,378			– 0	–		840,378
USD	35,000		11/02/2036	2.638%	CPI#	Maturity		– 0	–		– 0	–		– 0	–
USD	4,088		02/15/2041	CPI#	2.500%	Maturity		(188,824	)		– 0	–		(188,824	)
USD	4,022		02/15/2041	CPI#	2.505%	Maturity		(180,955	)		– 0	–		(180,955	)
USD	1,650		02/15/2041	CPI#	2.553%	Maturity		(55,154	)		– 0	–		(55,154	)
							$	23,790,437		$	(19,279	)	$	23,809,716

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

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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	30,000		07/22/2023	0.275%	3 Month LIBOR	Semi-Annual/ Quarterly	$	138,934		$	– 0	–	$	138,934
USD	20,000		01/15/2031	1.537%	3 Month LIBOR	Semi-Annual/ Quarterly		(19,014	)		– 0	–		(19,014	)
USD	15,000		07/22/2031	1.227%	3 Month LIBOR	Semi-Annual /Quarterly		428,601			– 0	–		428,601
USD	13,000		07/22/2036	1.440%	3 Month LIBOR	Semi-Annual/ Quarterly		417,199			– 0	–		417,199
							$	965,720		$	– 0	–	$	965,720

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	69	$	(19,142	)	$	(6,593	)	$	(12,549	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	598		(165,896	)		(73,716	)		(92,180	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	40		(11,097	)		(4,782	)		(6,315	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	38		(10,541	)		(3,664	)		(6,877	)

50    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	471	$	(130,663	)	$	(45,474	)	$	(85,189	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	708		(196,411	)		(66,601	)		(129,810	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,216		(337,339	)		(144,406	)		(192,933	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	231		(64,083	)		(28,356	)		(35,727	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	614		(170,334	)		(56,062	)		(114,272	)
												$	(1,105,506	)	$	(429,654	)	$	(675,852	)

* Termination date

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Bank of America, NA		USD	25,000		02/02/2032	2.403%	CPI#	Maturity	$	1,377,175		$	– 0	–	$	1,377,175
Barclays Bank PLC		USD	14,000		04/03/2022	2.663%	CPI#	Maturity		(1,059,427	)		– 0	–		(1,059,427	)
Barclays Bank PLC		USD	16,700		10/05/2022	2.765%	CPI#	Maturity		(1,284,647	)		– 0	–		(1,284,647	)
Barclays Bank PLC		USD	25,000		08/07/2024	2.573%	CPI#	Maturity		(710,411	)		– 0	–		(710,411	)
Barclays Bank PLC		USD	19,000		05/05/2025	2.125%	CPI#	Maturity		1,169,008			– 0	–		1,169,008
Barclays Bank PLC		USD	5,400		03/06/2027	2.695%	CPI#	Maturity		(400,882	)		– 0	–		(400,882	)
Barclays Bank PLC		USD	20,000		06/06/2032	2.145%	CPI#	Maturity		2,041,983			– 0	–		2,041,983
Barclays Bank PLC		USD	14,000		09/01/2032	2.128%	CPI#	Maturity		1,524,279			– 0	–		1,524,279
Barclays Bank PLC		USD	22,000		08/29/2033	2.368%	CPI#	Maturity		1,299,812			– 0	–		1,299,812
Citibank, NA		USD	9,000		06/29/2022	2.398%	CPI#	Maturity		(406,306	)		– 0	–		(406,306	)
Citibank, NA		USD	5,400		07/19/2022	2.400%	CPI#	Maturity		(233,909	)		– 0	–		(233,909	)
Citibank, NA		USD	4,000		08/10/2022	2.550%	CPI#	Maturity		(235,668	)		– 0	–		(235,668	)
Citibank, NA		USD	15,500		12/07/2022	2.748%	CPI#	Maturity		(1,247,638	)		– 0	–		(1,247,638	)
Citibank, NA		USD	47,000		05/24/2023	2.533%	CPI#	Maturity		(2,068,356	)		– 0	–		(2,068,356	)
Citibank, NA		USD	30,000		10/29/2023	2.524%	CPI#	Maturity		(911,647	)		– 0	–		(911,647	)
Citibank, NA		USD	30,000		09/19/2024	2.070%	CPI#	Maturity		2,176,845			– 0	–		2,176,845
Citibank, NA		USD	25,000		07/03/2025	2.351%	CPI#	Maturity		1,208,075			– 0	–		1,208,075
Citibank, NA		USD	15,800		02/08/2028	2.940%	CPI#	Maturity		(1,814,071	)		– 0	–		(1,814,071	)
Citibank, NA		USD	12,000		11/05/2033	2.273%	CPI#	Maturity		938,052			– 0	–		938,052
Deutsche Bank AG		USD	25,000		09/02/2025	1.880%	CPI#	Maturity		2,168,676			– 0	–		2,168,676

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA		USD	19,000		08/17/2022		2.523%		CPI#		Maturity	$	(1,029,483	)	$	– 0	–	$	(1,029,483	)
JPMorgan Chase Bank, NA		USD	1,400		06/30/2026		2.890%		CPI#		Maturity		(173,501	)		– 0	–		(173,501	)
JPMorgan Chase Bank, NA		USD	3,300		07/21/2026		2.935%		CPI#		Maturity		(446,347	)		– 0	–		(446,347	)
JPMorgan Chase Bank, NA		USD	2,400		10/03/2026		2.485%		CPI#		Maturity		(89,737	)		– 0	–		(89,737	)
JPMorgan Chase Bank, NA		USD	5,400		11/14/2026		2.488%		CPI#		Maturity		(208,399	)		– 0	–		(208,399	)
JPMorgan Chase Bank, NA		USD	4,850		12/23/2026		2.484%		CPI#		Maturity		(169,259	)		– 0	–		(169,259	)
JPMorgan Chase Bank, NA		USD	13,000		03/01/2027		2.279%		CPI#		Maturity		818,317			– 0	–		818,317
JPMorgan Chase Bank, NA		USD	21,350		02/20/2028		2.899%		CPI#		Maturity		(2,248,358	)		– 0	–		(2,248,358	)
JPMorgan Chase Bank, NA		USD	12,000		03/26/2028		2.880%		CPI#		Maturity		(1,193,737	)		– 0	–		(1,193,737	)
JPMorgan Chase Bank, NA		USD	10,000		07/03/2028		2.356%		CPI#		Maturity		584,388			– 0	–		584,388
JPMorgan Chase Bank, NA		USD	25,000		11/05/2028		2.234%		CPI#		Maturity		1,840,544			– 0	–		1,840,544
JPMorgan Chase Bank, NA		USD	18,000		04/17/2030		2.378%		CPI#		Maturity		1,019,560			– 0	–		1,019,560
JPMorgan Chase Bank, NA		USD	24,000		11/17/2032		2.183%		CPI#		Maturity		2,329,830			– 0	–		2,329,830
Morgan Stanley Capital Services LLC		USD	10,000		04/16/2023		2.690%		CPI#		Maturity		(638,671	)		– 0	–		(638,671	)
Morgan Stanley Capital Services LLC		USD	5,000		08/15/2026		2.885%		CPI#		Maturity		(615,838	)		– 0	–		(615,838	)
												$	3,310,252		$	– 0	–	$	3,310,252

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

INTEREST RATE SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Citibank, NA		USD	11,075		10/09/2029		1.120%		SIFMA*		Quarterly	$	(1,712	)	$	– 0	–	$	(1,712	)
Citibank, NA		USD	11,075		10/09/2029		1.125%		SIFMA*		Quarterly		(6,395	)		– 0	–		(6,395	)
												$	(8,107	)	$	– 0	–	$	(8,107	)

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

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $68,687,464 or 3.4% of net assets.

(b) When-Issued or delayed delivery security.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

52    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(d) 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, 2021 and the aggregate market value of this security amounted to $25,000 or 0.00% of net assets.

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

(f) Non-income producing security.

(g) Defaulted.

(h) IO – Interest Only.

(i) Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks.

(j) Affiliated investments.

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

(l) 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, 2021, 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 3.3% and 0.0%, respectively.

Glossary:

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

CCRC – Congregate Care Retirement Center

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

CIFGNA – CIFG Assurance North America, Inc.

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

FHLMC – Federal Home Loan Mortgage Corporation

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

SOFR – Secured Overnight Financing Rate

SRF – State Revolving Fund

UPMC – University of Pittsburgh Medical Center

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    53

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,915,615,945)	$	1,960,604,892
Affiliated issuers (cost $63,363,666)		63,363,666
Cash collateral due from broker		24,300,948
Receivable for capital stock sold		42,553,855
Interest receivable		22,175,581
Unrealized appreciation on inflation swaps		20,496,544
Receivable for investment securities sold		180,200
Affiliated dividends receivable		434
Total assets		2,133,676,120
Liabilities
Due to custodian		7
Payable for investment securities purchased		92,117,328
Unrealized depreciation on inflation swaps		17,186,292
Cash collateral due to broker		2,263,000
Payable for variation margin on centrally cleared swaps		2,245,393
Payable for capital stock redeemed		1,829,340
Market value on credit default swaps (net premiums received $429,654)		1,105,506
Advisory fee payable		611,894
Distribution fee payable		134,922
Administrative fee payable		32,865
Transfer Agent fee payable		11,854
Unrealized depreciation on interest rate swaps		8,107
Directors’ fees payable		3,154
Accrued expenses		352,543
Total liabilities		117,902,205
Net Assets	$	2,015,773,915
Composition of Net Assets
Capital stock, at par	$	183,077
Additional paid-in capital		1,966,858,939
Distributable earnings		48,731,899
Net Assets	$	2,015,773,915

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	364,598,662		33,052,751	$	11.03	*
C	$	20,086,234		1,823,212	$	11.02
Advisor	$	837,132,064		75,839,263	$	11.04
1	$	555,641,971		50,652,411	$	10.97
2	$	238,314,984		21,709,462	$	10.98

* The maximum offering price per share for Class A shares was $11.37 which reflects a sales charge of 3.00%.

See notes to financial statements.

54    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest	$	30,576,570
Dividends—Affiliated issuers		7,180		$	30,583,750
Expenses
Advisory fee (see Note B)		6,726,535
Distribution fee—Class A		547,254
Distribution fee—Class C		115,971
Distribution fee—Class 1		483,166
Transfer agency—Class A		61,696
Transfer agency—Class C		3,337
Transfer agency—Advisor Class		118,213
Transfer agency—Class 1		21,777
Transfer agency—Class 2		9,886
Registration fees		270,429
Custody and accounting		171,581
Administrative		94,067
Audit and tax		88,883
Legal		42,331
Directors’ fees		35,058
Printing		27,266
Miscellaneous		36,837
Total expenses		8,854,287
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,013,493	)
Net expenses					7,840,794
Net investment income					22,742,956
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					483,787
Swaps					(974,117	)
Net change in unrealized appreciation/depreciation of:
Investments					(2,176,969	)
Swaps					83,804,246
Net gain on investment transactions					81,136,947
Contributions from Affiliates (see Note B)					555,677
Net Increase in Net Assets from Operations				$	104,435,580

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    55

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	22,742,956		$	23,188,235
Net realized loss on investment transactions		(490,330	)		(7,961,649	)
Net change in unrealized appreciation/depreciation of investments		81,627,277			3,188,257
Contributions from Affiliates (see Note B)		555,677			– 0	–
Net increase in net assets from operations		104,435,580			18,414,843
Distributions to Shareholders
Class A		(3,352,419	)		(2,027,901	)
Class C		(95,535	)		(102,182	)
Advisor Class		(6,909,813	)		(4,764,682	)
Class 1		(8,721,933	)		(11,346,428	)
Class 2		(4,212,452	)		(5,676,606	)
Capital Stock Transactions
Net increase (decrease)		943,374,359			(7,977,474	)
Total increase (decrease)		1,024,517,787			(13,480,430	)
Net Assets
Beginning of period		991,256,128			1,004,736,558
End of period	$	2,015,773,915		$	991,256,128

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Municipal Bond Inflation Strategy (the “Fund”), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class 1 and Class 2 shares. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class B, Class R, Class K, Class I and Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Advisor Class and Class 2 shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. Class 1 shares are sold without an initial or contingent deferred sales charge, but are subject to ongoing distribution expenses. All ten classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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

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

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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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 rates, coupon rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which is then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2021:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

1,828,555,451

$

– 0

–

$

1,828,555,451

Short-Term Municipal Notes

– 0

–

95,058,605

– 0

–

95,058,605

Corporates – Investment Grade

– 0

–

16,939,683

– 0

–

16,939,683

Corporates – Non-Investment Grade

– 0

–

6,071,879

– 0

–

6,071,879

Governments – Treasuries

– 0

–

5,404,687

– 0

–

5,404,687

Collateralized Mortgage Obligations

– 0

–

1,961,595

– 0

–

1,961,595

Commercial Mortgage-Backed Security

– 0

–

1,012,961

– 0

–

1,012,961

Short-Term Investments:

Investment Companies

63,363,666

– 0

–

– 0

–

63,363,666

Commercial Paper

– 0

–

5,600,031

– 0

–

5,600,031

Total Investments in Securities

63,363,666

1,960,604,892

– 0

–

2,023,968,558

Other Financial Instruments(a):

Assets:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

24,491,180

– 0

–

24,491,180

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

984,734

– 0

–

984,734

(b)

Inflation (CPI) Swaps

– 0

–

20,496,544

– 0

–

20,496,544

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Centrally Cleared Inflation (CPI) Swaps	$	– 0	–	$	(700,743	)	$	– 0	–	$	(700,743	)(b)
Centrally Cleared Interest Rate Swaps		– 0	–		(19,014	)		– 0	–		(19,014	)(b)
Credit Default Swaps		– 0	–		(1,105,506	)		– 0	–		(1,105,506	)
Inflation (CPI) Swaps		– 0	–		(17,186,292	)		– 0	–		(17,186,292	)
Interest Rate Swaps		– 0	–		(8,107	)		– 0	–		(8,107	)
Total	$	63,363,666		$	1,987,557,688		$	– 0	–	$	2,050,921,354

(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.

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 original issue and market discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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5. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

6. Dividends and Distributions

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

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) on an annual basis (the “Expense Caps”) to .75%, 1.50%, .50%, .60% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class 1 and Class 2 shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2022 and then may be extended by the Adviser for additional one-year terms. For the year ended October 31, 2021, such reimbursements/waivers amounted to $980,227.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the reimbursement for such services amounted to $94,067.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency

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NOTES TO FINANCIAL STATEMENTS (continued)

services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $71,741 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $0 from the sale of Class A shares and received $31,113 and $357 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $33,266.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	4,637	$	847,394	$	788,667	$	63,364	$	7

During the year ended October 31, 2021, the Adviser reimbursed the Fund $555,677 for trading losses incurred due to a trade entry error.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets

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NOTES TO FINANCIAL STATEMENTS (continued)

attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class and Class 2 shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $527,752 and $1,796,920 for Class C and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	914,215,026	$	125,971,923
U.S. government securities		1,039,913		217,309

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,978,979,611
Gross unrealized appreciation	$	100,931,687
Gross unrealized depreciation		(27,552,984	)
Net unrealized appreciation	$	73,378,703

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 type of derivative 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 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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NOTES TO FINANCIAL STATEMENTS (continued)

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).

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During the year ended October 31, 2021, the Fund held interest rate swaps for hedging purposes.

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 year ended October 31, 2021, the Fund held inflation (CPI) 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

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Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

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

During the year ended October 31, 2021, 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.

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During the year ended October 31, 2021, 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	$	25,495,193	*	Receivable/Payable for variation margin on centrally cleared swaps	$	719,757	*
Interest rate contracts					Unrealized depreciation on interest rate swaps		8,107
Interest rate contracts	Unrealized appreciation on inflation swaps		20,496,544		Unrealized depreciation on inflation swaps		17,186,292
Credit contracts					Market value on credit default swaps		1,105,506
Total		$	45,991,737			$	19,019,662

* 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	$	(1,104,330	)	$	83,630,585
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		130,213			173,661
Total		$	(974,117	)	$	83,804,246

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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 year ended October 31, 2021:

Interest Rate Swaps:
Average notional amount	$	22,150,000
Inflation Swaps:
Average notional amount	$	605,500,000
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	91,484,615
Centrally Cleared Inflation Swaps:
Average notional amount	$	202,719,231
Credit Default Swaps:
Average notional amount of sale contracts	$	3,985,000

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, 2021. 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
Bank of America, NA	$	1,377,175	$	– 0	–	$	– 0	–	$	(1,377,175	)	$	– 0	–
Barclays Bank PLC		6,035,082		(3,455,367	)		– 0	–		(2,579,715	)		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		4,322,972		(4,322,972	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		2,168,676		– 0	–		(2,168,676	)		– 0	–		– 0	–
JPMorgan Chase Bank, NA		6,592,639		(5,558,821	)		– 0	–		(1,033,818	)		– 0	–
Total	$	20,496,544	$	(13,337,160	)	$	(2,168,676	)	$	(4,990,708	)	$	0	^

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NOTES TO FINANCIAL STATEMENTS (continued)

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	$	3,455,367	$	(3,455,367	)	$	– 0	–	$	– 0	–	$	– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		7,110,740		(4,322,972	)		– 0	–		(2,519,316	)		268,452
Credit Suisse International		686,051		– 0	–		– 0	–		(652,886	)		33,165
Goldman Sachs International		234,417		– 0	–		– 0	–		(234,417	)		– 0	–
JPMorgan Chase Bank, NA		5,558,821		(5,558,821	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services LLC		1,254,509		– 0	–		(1,254,509	)		– 0	–		– 0	–
Total	$	18,299,905	$	(13,337,160	)	$	(1,254,509	)	$	(3,406,619	)	$	301,617	^

* 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 E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for Class A, Class C, Advisor Class, Class 1 and Class 2 were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		26,407,533			11,006,167		$	286,981,285		$	112,859,024
Shares issued in reinvestment of dividends		200,012			137,840			2,153,486			1,399,084
Shares converted from Class C		137,753			103,132			1,489,456			1,038,373
Shares redeemed		(7,132,735	)		(3,113,475	)		(77,134,430	)		(30,512,727	)
Net increase		19,612,563			8,133,664		$	213,489,797		$	84,783,754

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class C
Shares sold		1,415,025			124,879		$	15,365,751		$	1,270,546
Shares issued in reinvestment of dividends		7,049			8,149			75,748			82,474
Shares converted to Class A		(137,881	)		(103,270	)		(1,489,456	)		(1,038,373	)
Shares redeemed		(112,864	)		(132,691	)		(1,219,898	)		(1,341,016	)
Net increase (decrease)		1,171,329			(102,933	)	$	12,732,145		$	(1,026,369	)
Advisor Class
Shares sold		63,621,228			10,882,277		$	693,291,421		$	111,180,666
Shares issued in reinvestment of dividends		446,488			347,975			4,831,370			3,533,343
Shares redeemed		(6,255,946	)		(13,275,084	)		(67,976,037	)		(129,905,882	)
Net increase (decrease)		57,811,770			(2,044,832	)	$	630,146,754		$	(15,191,873	)
Class 1
Shares sold		12,539,527			5,864,797		$	135,703,463		$	59,213,283
Shares issued in reinvestment of dividends		601,091			844,734			6,424,253			8,522,724
Shares redeemed		(5,865,521	)		(12,308,849	)		(62,849,375	)		(121,433,030	)
Net increase (decrease)		7,275,097			(5,599,318	)	$	79,278,341		$	(53,697,023	)
Class 2
Shares sold		3,793,264			2,839,197		$	41,218,325		$	28,434,563
Shares issued in reinvestment of dividends		297,652			411,526			3,180,510			4,153,907
Shares redeemed		(3,422,732	)		(5,591,380	)		(36,671,513	)		(55,434,433	)
Net increase (decrease)		668,184			(2,340,657	)	$	7,727,322		$	(22,845,963	)

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, 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 is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

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NOTES TO FINANCIAL STATEMENTS (continued)

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	1,319,862	$	1,229,449
Total taxable distributions	$	1,319,862	$	1,229,449
Tax-exempt distributions		21,972,290		22,688,350
Total distributions paid	$	23,292,152	$	23,917,799

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	195,296
Accumulated capital and other losses		(24,842,412	)(a)
Unrealized appreciation/(depreciation)		73,379,015	(b)
Total accumulated earnings/(deficit)	$	48,731,899

(a) As of October 31, 2021, the Fund had a net capital loss carryforward of $24,842,412.

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

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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 October 31, 2021, the Fund had a net short-term capital loss carryforward of $7,409,262 and a net long-term capital loss carryforward of $17,433,150, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to contributions from the Adviser resulted in a net increase in distributable earnings and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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 other 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 Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.30			$  10.24			$  10.02			$  10.28			$  10.29
Income From Investment Operations
Net investment income(a)(b)		.16			.22			.24			.22			.19
Net realized and unrealized gain (loss) on investment transactions		.75			.07	(c)		.21			(.26	)		(.01	)
Contributions from Affiliates		.00	(d)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.91			.29			.45			(.04	)		.18
Less: Dividends
Dividends from net investment income		(.18	)		(.23	)		(.23	)		(.22	)		(.19	)
Net asset value, end of period		$  11.03			$  10.30			$  10.24			$  10.02			$  10.28
Total Return
Total investment return based on net asset value(e)*		8.89	%		2.85	%		4.58	%		(.42	)%		1.75	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$364,599			$138,454			$54,316			$75,127			$58,270
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Expenses, before waivers/reimbursements		.84	%		.85	%		.86	%		.86	%		.86	%
Net investment income(b)		1.51	%		2.14	%		2.32	%		2.13	%		1.90	%
Portfolio turnover rate		10	%		29	%		12	%		15	%		9	%

See footnote summary on page 83.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.29			$  10.22			$  10.01			$  10.26			$  10.27
Income From Investment Operations
Net investment income(a)(b)		.08			.14			.16			.14			.12
Net realized and unrealized gain (loss) on investment transactions		.74			.08	(c)		.20			(.25	)		(.02	)
Contributions from Affiliates		.01			– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.83			.22			.36			(.11	)		.10
Less: Dividends
Dividends from net investment income		(.10	)		(.15	)		(.15	)		(.14	)		(.11	)
Net asset value, end of period		$  11.02			$  10.29			$  10.22			$  10.01			$  10.26
Total Return
Total investment return based on net asset value(e)*		8.12	%		2.16	%		3.63	%		(1.09	)%		.99	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$20,086			$6,710			$7,717			$10,681			$12,693
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, before waivers/reimbursements		1.59	%		1.61	%		1.61	%		1.61	%		1.61	%
Net investment income(b)		.75	%		1.43	%		1.57	%		1.37	%		1.15	%
Portfolio turnover rate		10	%		29	%		12	%		15	%		9	%

See footnote summary on page 83.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.31			$  10.24			$  10.03			$  10.29			$  10.30
Income From Investment Operations
Net investment income(a)(b)		.18			.25			.26			.24			.22
Net realized and unrealized gain (loss) on investment transactions		.75			.07	(c)		.21			(.26	)		(.02	)
Contributions from Affiliates		.01			– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.94			.32			.47			(.02	)		.20
Less: Dividends
Dividends from net investment income		(.21	)		(.25	)		(.26	)		(.24	)		(.21	)
Net asset value, end of period		$  11.04			$  10.31			$  10.24			$  10.03			$  10.29
Total Return
Total investment return based on net asset value(e)*		9.14	%		3.19	%		4.76	%		(.17	)%		2.00	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$837,132			$185,829			$205,541			$226,145			$199,635
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.59	%		.60	%		.61	%		.61	%		.61	%
Net investment income(b)		1.70	%		2.43	%		2.57	%		2.37	%		2.15	%
Portfolio turnover rate		10	%		29	%		12	%		15	%		9	%

See footnote summary on page 83.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.25			$  10.19			$  9.98			$  10.25			$  10.26
Income From Investment Operations
Net investment income(a)(b)		.18			.23			.25			.23			.21
Net realized and unrealized gain (loss) on investment transactions		.74			.07	(c)		.22			(.26	)		(.01	)
Contributions from Affiliates		.00	(d)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.92			.30			.47			(.03	)		.20
Less: Dividends
Dividends from net investment income		(.20	)		(.24	)		(.26	)		(.24	)		(.21	)
Net asset value, end of period		$  10.97			$  10.25			$  10.19			$  9.98			$  10.25
Total Return
Total investment return based on net asset value(e)*		9.01	%		3.04	%		4.72	%		(.32	)%		1.94	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$555,642			$444,500			$498,857			$485,386			$424,291
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.66	%		.67	%		.67	%		.67	%		.67	%
Net investment income(b)		1.72	%		2.33	%		2.47	%		2.27	%		2.05	%
Portfolio turnover rate		10	%		29	%		12	%		15	%		9	%

See footnote summary on page 83.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.25			$  10.19			$  9.99			$  10.25			$  10.26
Income From Investment Operations
Net investment income(a)(b)		.20			.24			.26			.24			.22
Net realized and unrealized gain (loss) on investment transactions		.74			.07	(c)		.21			(.25	)		(.01	)
Contributions from Affiliates		.00	(d)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.94			.31			.47			(.01	)		.21
Less: Dividends
Dividends from net investment income		(.21	)		(.25	)		(.27	)		(.25	)		(.22	)
Net asset value, end of period		$  10.98			$  10.25			$  10.19			$  9.99			$  10.25
Total Return
Total investment return based on net asset value(e)*		9.21	%		3.14	%		4.73	%		(.12	)%		2.04	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$238,315			$215,763			$238,306			$231,109			$213,880
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.56	%		.57	%		.57	%		.57	%		.57	%
Net investment income(b)		1.84	%		2.43	%		2.57	%		2.37	%		2.14	%
Portfolio turnover rate.		10	%		29	%		12	%		15	%		9	%

See footnote summary on page 83.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

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

(d) Amount is less than $.005.

(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

* Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .03% for the year ended October 31, 2021.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Municipal Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Municipal Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) on October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 29, 2021

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,
Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Terrance T. Hults⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Municipal Bond Investment Team. Messrs. Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund as defined in the “40 Act,” due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Terrance T. Hults 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head—Municipal Portfolio Management.
Matthew J. Norton 38	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head—Municipal Portfolio Management.
Andrew D. Potter 36	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

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The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Municipal Bond Inflation Strategy (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution

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expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. In evaluating the Fund’s investment performance, the directors noted that the Fund lagged its peers in the one- year period. The directors took into account their understanding that only one of the funds in the Fund’s peer group is managed with a significant inflation component and that the Fund’s investment portfolio has a longer duration than that of most of its peers. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    99

that it was above the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

100    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    101

NOTES

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NOTES

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    103

NOTES

104    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

AB MUNICIPAL BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MBIS-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB SHORT DURATION INCOME PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Short Duration Income Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    1

ANNUAL REPORT

December 8, 2021

This report provides management’s discussion of fund performance for the AB Short Duration Income Portfolio for the annual reporting period ended October 31, 2021.

The Fund’s investment objective is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB SHORT DURATION INCOME PORTFOLIO
Class A Shares		-0.04%		2.37%
Class C Shares		-0.44%		1.46%
Advisor Class Shares1		0.16%		2.48%
Bloomberg 1-5 Year US Government/Credit Index		-0.43%		-0.39%

1 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg 1-5 Year US Government/Credit Index, for the six- and 12-month periods ended October 31, 2021.

During the 12-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation was the primary contributor, relative to the benchmark, due to gains from off-benchmark US allocations to high-yield corporate bonds, high-yield credit default swaps, commercial mortgage-backed securities (“CMBS”) and credit risk-transfer securities that were greater than losses from off-benchmark high-yield corporate bonds in the eurozone and an underweight to US investment-grade corporate bonds. Security selection within investment-grade corporate bonds in the US and quasi-sovereign bonds also contributed. Currency decisions were a minor contributor to performance. Yield-curve positioning in the US detracted, the result of being underweight duration relative to the benchmark. Country allocation was a minor detractor due to exposures in Canada, Australia, New Zealand and Colombia that were mostly offset by beneficial allocations to countries in the eurozone.

In the six-month period, all share classes except Class C outperformed the benchmark, before sales charges. Sector allocation contributed the most

2    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

to performance, due to off-benchmark allocation to US high-yield corporate bonds, CMBS and credit risk-transfer securities that added more than a loss from US agency mortgages. An underweight to duration in the US also added to returns from a yield-curve perspective. Security selection contributed because of selection among US investment-grade corporate bonds. Country allocation detracted, as losses within Australia, Canada and New Zealand were partially offset by beneficial exposure to eurozone countries. Currency decisions did not materially impact performance during the period.

During both periods, the Fund utilized derivatives in the form of futures, interest rate swaptions and interest rate swaps to manage and hedge duration risk and to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used to take active exposure and to hedge investment-grade and high-yield credit risk. Total return swaps were used to create synthetic high-yield exposure in the Fund.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada, and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone, and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially CMBS. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US and non-US issuers as well as corporate bonds, with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    3

INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, primarily in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments and their agencies and instrumentalities (including mortgage-backed securities), derivatives related to such securities, and repurchase agreements relating to US government securities. Under normal circumstances, the Fund will maintain a dollar-weighted average duration of less than three years, although it may invest in securities of any duration or maturity.

The Fund may invest in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund’s investments in foreign securities may include both government and corporate securities, and securities of emerging-market countries or of issuers in emerging markets.

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

The Fund may utilize derivatives, such as options, futures contracts, forwards and swaps. The Fund may, for example, use interest rate futures contracts and swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

The Adviser may hedge the foreign currency exposure resulting from the Fund’s security positions, and may take long or short positions in currencies, through the use of currency-related derivatives.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg 1-5 Year US Government/Credit Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 1-5 Year US Government/Credit Index is a broad-based benchmark that measures the nonsecuritized component of the Bloomberg US Aggregate Index. It includes investment-grade, US dollar-denominated, fixed-rate Treasuries and government-related and corporate securities that have a remaining maturity of greater than or equal to one year and less than five years. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    5

DISCLOSURES AND RISKS (continued)

a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

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

Foreign (Non-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.

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

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DISCLOSURES AND RISKS (continued)

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.

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    7

DISCLOSURES AND RISKS (continued)

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

12/12/2018¹ TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Short Duration Income Portfolio Class A shares (from 12/12/2018¹ to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/12/2018.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.53%
1 Year		2.37%		-1.96%
Since Inception2		3.66%		2.12%
CLASS C SHARES						1.83%
1 Year		1.46%		0.46%
Since Inception2		2.81%		2.81%
ADVISOR CLASS SHARES3						2.84%
1 Year		2.48%		2.48%
Since Inception2		3.81%		3.81%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.77%, 2.57% and 1.68% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs, to 0.65%, 1.45% and 0.45% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2022. Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total operating expenses to exceed the applicable expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Inception date: 12/12/2018.

3 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-1.36%
Since Inception1		2.47%
CLASS C SHARES
1 Year		1.06%
Since Inception1		3.21%
ADVISOR CLASS SHARES2
1 Year		3.09%
Since Inception1		4.21%

1 Inception date: 12/12/2018.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	999.60	$	3.48		0.69	%
Hypothetical**	$	1,000	$	1,021.73	$	3.52		0.69	%
Class C
Actual	$	1,000	$	995.60	$	7.39		1.47	%
Hypothetical**	$	1,000	$	1,017.80	$	7.48		1.47	%
Advisor Class
Actual	$	1,000	$	1,001.60	$	2.37		0.47	%
Hypothetical**	$	1,000	$	1,022.84	$	2.40		0.47	%

* Expenses are equal to the Fund’s annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 184/365 (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.

12    ^|    AB SHORT DURATION  INCOME PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

October 31, 2021

PORTFOLIO STATISTICS

Net Assets ($mil): $62.9

1 All data are as of October 31, 2021. 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).

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    13

PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 95.1%
Australia – 9.8%
Australia Government Bond Series 139 3.25%, 04/21/2025(a)	AUD		4,199	$	3,373,395
Series 164 0.50%, 09/21/2026(a)			3,937		2,826,382
					6,199,777
Colombia – 0.4%
Colombian TES Series B 5.75%, 11/03/2027	COP		1,177,700		286,158
Mexico – 0.3%
Mexican Bonos Series M 20 7.50%, 06/03/2027	MXN		3,550		173,239
New Zealand – 4.0%
New Zealand Government Bond Series 0526 0.50%, 05/15/2026	NZD		3,778		2,496,550
Peru – 0.4%
Peru Government Bond 6.35%, 08/12/2028	PEN		880		233,307
Russia – 0.7%
Russian Federal Bond – OFZ Series 6227 7.40%, 07/17/2024	RUB		32,513		449,314
Spain – 0.7%
Spain Government Bond 0.80%, 07/30/2027(a)	EUR		356		428,018
United States – 78.8%
U.S. Treasury Bonds 6.125%, 11/15/2027(b)	U.S.$		859		1,097,794
6.875%, 08/15/2025(b)			2,177		2,651,371
U.S. Treasury Notes 0.50%, 10/31/2027			294		279,477
0.625%, 05/15/2030(b)(c)			1,784		1,658,934
1.50%, 08/15/2026(b)			5,275		5,356,914
1.625%, 10/31/2026-08/15/2029(b)(c)			11,870		12,100,124
2.00%, 08/15/2025(b)			3,030		3,145,934
2.125%, 07/31/2024(b)			3,962		4,115,216
2.125%, 05/31/2026			5,401		5,641,095

14    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
2.25%, 11/15/2024	U.S.$		4,126	$	4,308,987
2.25%, 11/15/2025(b)			2,792		2,926,713
2.375%, 08/15/2024			614		641,901
2.875%, 08/15/2028(b)			743		813,223
3.125%, 11/15/2028(b)			4,298		4,782,757
					49,520,440
Total Governments - Treasuries (cost $60,571,510)					59,786,803
CORPORATES - NON-INVESTMENT GRADE – 14.1%
Industrial – 12.9%
Basic – 0.4%
Arconic Corp. 6.125%, 02/15/2028(a)			6		6,330
Graphic Packaging International LLC 4.75%, 07/15/2027(a)			6		6,494
Hecla Mining Co. 7.25%, 02/15/2028			29		31,214
Kleopatra Finco SARL 4.25%, 03/01/2026(a)	EUR		100		110,882
Unifrax Escrow Issuer Corp. 5.25%, 09/30/2028(a)	U.S.$		10		10,005
WR Grace Holdings LLC 4.875%, 06/15/2027(a)			72		73,136
					238,061
Capital Goods – 0.6%
Bombardier, Inc. 7.50%, 12/01/2024-03/15/2025(a)			28		28,892
Cleaver-Brooks, Inc. 7.875%, 03/01/2023(a)			7		6,909
Energizer Holdings, Inc. 4.75%, 06/15/2028(a)			16		15,948
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			61		63,059
GFL Environmental, Inc. 3.75%, 08/01/2025(a)			10		10,282
5.125%, 12/15/2026(a)			2		2,094
LSB Industries, Inc. 6.25%, 10/15/2028(a)			26		26,274
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		119,679
Tervita Corp. 11.00%, 12/01/2025(a)	U.S.$		14		16,070
TransDigm, Inc. 8.00%, 12/15/2025(a)			35		37,227

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Triumph Group, Inc. 8.875%, 06/01/2024(a)	U.S.$		13	$	14,325
Wesco Distribution, Inc. 7.125%, 06/15/2025(a)			16		17,022
					357,781
Communications - Media – 1.5%
Altice Financing SA 5.00%, 01/15/2028(a)			200		192,670
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(a)			26		26,457
5.125%, 05/01/2027(a)			159		164,946
Clear Channel Worldwide Holdings, Inc. 5.125%, 08/15/2027(a)			161		165,228
DISH DBS Corp. 5.00%, 03/15/2023			8		8,278
5.875%, 11/15/2024			53		56,556
Mav Acquisition Corp. 5.75%, 08/01/2028(a)			56		55,096
Meredith Corp. 6.875%, 02/01/2026			8		8,293
Scripps Escrow II, Inc. 5.375%, 01/15/2031(a)			21		20,591
Sinclair Television Group, Inc. 5.875%, 03/15/2026(a)			100		102,311
Sirius XM Radio, Inc. 3.125%, 09/01/2026(a)			56		56,128
4.00%, 07/15/2028(a)			28		28,188
TEGNA, Inc. 4.75%, 03/15/2026(a)			25		26,043
Univision Communications, Inc. 5.125%, 02/15/2025(a)			4		4,072
9.50%, 05/01/2025(a)			20		21,727
					936,584
Communications - Telecommunications – 0.1%
Consolidated Communications, Inc. 5.00%, 10/01/2028(a)			35		35,442
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			10		10,360
					45,802
Consumer Cyclical - Automotive – 0.6%
Adient US LLC 9.00%, 04/15/2025(a)			88		94,303
Clarios Global LP/Clarios US Finance Co. 6.25%, 05/15/2026(a)			45		47,083

16    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ford Motor Co. 9.00%, 04/22/2025	U.S.$		27	$	32,470
Jaguar Land Rover Automotive PLC 5.875%, 11/15/2024(a)	EUR		116		143,483
Meritor, Inc. 6.25%, 06/01/2025(a)	U.S.$		5		5,244
Tenneco, Inc. 7.875%, 01/15/2029(a)			26		28,427
					351,010
Consumer Cyclical - Entertainment – 1.7%
Boyne USA, Inc. 4.75%, 05/15/2029(a)			16		16,412
Carnival Corp.
4.00%, 08/01/2028(a)			36		35,977
5.75%, 03/01/2027(a)			62		63,085
10.50%, 02/01/2026(a)			107		124,300
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a)			159		165,358
Mattel, Inc. 3.15%, 03/15/2023			144		147,424
5.875%, 12/15/2027(a)			102		109,858
NCL Corp., Ltd. 5.875%, 03/15/2026(a)			33		33,135
Royal Caribbean Cruises Ltd. 5.25%, 11/15/2022			108		110,952
5.50%, 08/31/2026(a)			31		31,611
10.875%, 06/01/2023(a)			47		52,617
11.50%, 06/01/2025(a)			47		53,506
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(a)			20		21,421
Six Flags Theme Parks, Inc. 7.00%, 07/01/2025(a)			58		61,684
Vail Resorts, Inc. 6.25%, 05/15/2025(a)			11		11,592
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			12		11,637
13.00%, 05/15/2025(a)			16		18,344
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			14		13,944
					1,082,857
Consumer Cyclical - Other – 1.0%
Adams Homes, Inc. 7.50%, 02/15/2025(a)			13		13,594
Boyd Gaming Corp. 8.625%, 06/01/2025(a)			6		6,490

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(a)	U.S.$		125	$	130,468
Caesars Entertainment, Inc. 6.25%, 07/01/2025(a)			18		18,947
Churchill Downs, Inc. 5.50%, 04/01/2027(a)			29		30,051
Empire Communities Corp. 7.00%, 12/15/2025(a)			143		148,797
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			85		88,570
Forestar Group, Inc. 3.85%, 05/15/2026(a)			41		41,014
Forterra Finance LLC/FRTA Finance Corp. 6.50%, 07/15/2025(a)			11		11,720
Hilton Domestic Operating Co., Inc. 5.375%, 05/01/2025(a)			7		7,304
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(a)			12		12,604
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028(a)			11		11,087
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(a)			15		16,837
Travel + Leisure Co. 6.625%, 07/31/2026(a)			20		22,327
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.50%, 03/01/2025(a)			33		33,573
					593,383
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(a)			17		16,958
5.75%, 04/15/2025(a)			25		26,070
IRB Holding Corp. 7.00%, 06/15/2025(a)			26		27,543
					70,571
Consumer Cyclical - Retailers – 0.7%
Bath & Body Works, Inc. 9.375%, 07/01/2025(a)			6		7,468
Dufry One BV 2.50%, 10/15/2024(a)	EUR		100		113,911
Hanesbrands, Inc. 4.625%, 05/15/2024(a)	U.S.$		135		141,144
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)			73		73,790

18    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Rite Aid Corp. 7.50%, 07/01/2025(a)	U.S.$		12	$	12,060
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a)			30		31,241
SRS Distribution, Inc. 4.625%, 07/01/2028(a)			39		39,907
Staples, Inc. 7.50%, 04/15/2026(a)			15		15,191
William Carter Co. (The) 5.50%, 05/15/2025(a)			22		23,020
					457,732
Consumer Non-Cyclical – 1.5%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 02/15/2023(a)			154		156,758
5.875%, 02/15/2028(a)			87		92,547
Catalent Pharma Solutions, Inc. 5.00%, 07/15/2027(a)			119		123,510
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(a)			29		30,716
CHS/Community Health Systems, Inc. 6.625%, 02/15/2025(a)			11		11,482
Horizon Therapeutics USA, Inc. 5.50%, 08/01/2027(a)			204		215,877
Legacy LifePoint Health LLC 4.375%, 02/15/2027(a)			23		22,877
6.75%, 04/15/2025(a)			48		50,400
ModivCare, Inc. 5.875%, 11/15/2025(a)			9		9,457
Newell Brands, Inc. 4.70%, 04/01/2026			26		28,481
4.875%, 06/01/2025			7		7,664
Par Pharmaceutical, Inc. 7.50%, 04/01/2027(a)			24		24,212
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			7		7,386
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			39		39,026
Tenet Healthcare Corp. 4.875%, 01/01/2026(a)			9		9,254
6.25%, 02/01/2027(a)			24		24,927
7.50%, 04/01/2025(a)			29		30,772
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			81		84,022
					969,368

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 2.1%
Antero Resources Corp. 8.375%, 07/15/2026(a)	U.S.$		14	$	15,756
Apache Corp. 4.625%, 11/15/2025			6		6,462
4.875%, 11/15/2027			12		13,054
Athabasca Oil Corp. 9.75%, 11/01/2026(d)			50		50,373
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			177		190,268
Bonanza Creek Energy, Inc. 5.00%, 10/15/2026(a)			59		59,592
Callon Petroleum Co. 8.00%, 08/01/2028(a)			28		28,211
CITGO Petroleum Corp. 7.00%, 06/15/2025(a)			33		33,981
CNX Resources Corp. 6.00%, 01/15/2029(a)			33		34,823
EnLink Midstream LLC 5.625%, 01/15/2028(a)			48		50,922
EnLink Midstream Partners LP 4.40%, 04/01/2024			134		140,034
4.85%, 07/15/2026			31		32,179
EQT Corp. 7.50%, 02/01/2030			31		39,697
Genesis Energy LP/Genesis Energy Finance Corp. 7.75%, 02/01/2028			15		14,841
8.00%, 01/15/2027			29		29,147
Independence Energy Finance LLC 7.25%, 05/01/2026(a)			51		53,092
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			15		14,629
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			122		118,882
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			58		58,883
Occidental Petroleum Corp. 3.20%, 08/15/2026			75		76,237
5.875%, 09/01/2025			10		11,100
8.00%, 07/15/2025			18		21,293
PBF Holding Co. LLC/PBF Finance Corp. 9.25%, 05/15/2025(a)			40		38,813
Range Resources Corp. 5.00%, 03/15/2023			3		3,083

20    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Renewable Energy Group, Inc. 5.875%, 06/01/2028(a)	U.S.$		7	$	7,361
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			40		40,267
Sunnova Energy Corp. 5.875%, 09/01/2026(a)			25		25,518
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.00%, 01/15/2032(a)			46		47,450
Transocean, Inc. 8.00%, 02/01/2027(a)			23		17,585
Western Midstream Operating LP 3.95%, 06/01/2025			5		5,268
4.75%, 08/15/2028			24		26,402
5.30%, 02/01/2030			20		21,920
					1,327,123
Other Industrial – 0.0%
Avient Corp. 5.75%, 05/15/2025(a)			16		16,776
IAA, Inc. 5.50%, 06/15/2027(a)			5		5,207
					21,983
Services – 1.4%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(a)			57		59,947
APX Group, Inc. 6.75%, 02/15/2027(a)			53		56,081
Aramark Services, Inc. 6.375%, 05/01/2025(a)			42		44,210
Garda World Security Corp. 4.625%, 02/15/2027(a)			59		58,565
Gartner, Inc. 4.50%, 07/01/2028(a)			63		65,660
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			50		50,825
MoneyGram International, Inc. 5.375%, 08/01/2026(a)			25		25,124
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)			78		71,152
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)			168		161,010
6.25%, 01/15/2028(a)			82		84,065
Sabre GLBL, Inc. 9.25%, 04/15/2025(a)			84		97,070

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Square, Inc. 2.75%, 06/01/2026(a)	U.S.$		81	$	81,954
TripAdvisor, Inc. 7.00%, 07/15/2025(a)			12		12,728
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			15		15,525
					883,916
Technology – 0.7%
Austin BidCo, Inc. 7.125%, 12/15/2028(a)			10		10,326
Avaya, Inc. 6.125%, 09/15/2028(a)			81		84,337
Boxer Parent Co., Inc. 7.125%, 10/02/2025(a)			39		41,376
Microchip Technology, Inc. 4.25%, 09/01/2025			91		94,620
NCR Corp. 5.00%, 10/01/2028(a)			105		106,927
Presidio Holdings, Inc. 4.875%, 02/01/2027(a)			56		57,155
8.25%, 02/01/2028(a)			2		2,130
Science Applications International Corp. 4.875%, 04/01/2028(a)			4		4,125
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			60		62,190
					463,186
Transportation - Airlines – 0.3%
Air Canada 3.875%, 08/15/2026(a)			12		12,158
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			24		24,997
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			41		45,342
United Airlines, Inc. 4.375%, 04/15/2026(a)			91		94,223
					176,720
Transportation - Services – 0.2%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.75%, 07/15/2027(a)			2		2,091
EC Finance PLC 3.00%, 10/15/2026(a)	EUR		100		116,892
					118,983
					8,095,060

22    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 1.0%
Banking – 0.1%
Alliance Data Systems Corp. 4.75%, 12/15/2024(a)	U.S.$		35	$	35,817
7.00%, 01/15/2026(a)			7		7,432
					43,249
Brokerage – 0.1%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			52		57,766
Finance – 0.7%
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			62		61,840
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			53		53,858
goeasy Ltd. 4.375%, 05/01/2026(a)			76		78,158
Jefferies Finance LLC/JFIN Co-Issuer Corp. 5.00%, 08/15/2028(a)			200		202,858
Navient Corp. 6.50%, 06/15/2022			14		14,393
					411,107
Insurance – 0.0%
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer 4.25%, 10/15/2027(a)			21		20,996
REITs – 0.1%
Diversified Healthcare Trust 9.75%, 06/15/2025			36		39,106
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 4.625%, 06/15/2025(a)			31		33,367
					72,473
					605,591
Utility – 0.2%
Electric – 0.1%
Calpine Corp. 5.125%, 03/15/2028(a)			8		7,980
Talen Energy Supply LLC 7.25%, 05/15/2027(a)			5		4,789
Vistra Operations Co. LLC 5.625%, 02/15/2027(a)			68		70,071
					82,840

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Other Utility – 0.1%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(a)	U.S.$		72	$	75,959
					158,799
Total Corporates - Non-Investment Grade (cost $8,713,044)					8,859,450
COLLATERALIZED MORTGAGE OBLIGATIONS – 7.3%
Risk Share Floating Rate – 6.8%
Bellemeade Re Ltd. Series 2019-1A, Class M1B 1.839% (LIBOR 1 Month + 1.75%), 03/25/2029(a)(e)			145		145,148
Series 2019-1A, Class M2 2.789% (LIBOR 1 Month + 2.70%), 03/25/2029(a)(e)			152		152,562
Series 2019-4A, Class M2 2.939% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(e)			150		151,771
Connecticut Avenue Securities Trust Series 2019-R02, Class 1M2 2.389% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(e)			6		6,093
Series 2019-R03, Class 1M2 2.239% (LIBOR 1 Month + 2.15%), 09/25/2031(a)(e)			9		9,088
Series 2019-R05, Class 1M2 2.089% (LIBOR 1 Month + 2.00%), 07/25/2039(a)(e)			4		3,593
Eagle Re Ltd. Series 2021-2, Class M1B 2.099% (SOFR + 2.05%), 04/25/2034(a)(e)			150		150,000
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-DNA3, Class M3 4.789% (LIBOR 1 Month + 4.70%), 04/25/2028(e)			166		171,905
Series 2015-HQA1, Class M3 4.789% (LIBOR 1 Month + 4.70%), 03/25/2028(e)			152		155,319
Series 2016-DNA4, Class M3 3.889% (LIBOR 1 Month + 3.80%), 03/25/2029(e)			208		215,251
Series 2017-DNA1, Class M2 3.339% (LIBOR 1 Month + 3.25%), 07/25/2029(e)			232		239,330

24    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-DNA2, Class M2 3.539% (LIBOR 1 Month + 3.45%), 10/25/2029(e)	U.S.$		400	$	412,868
Series 2019-DNA3, Class M2 2.139% (LIBOR 1 Month + 2.05%), 07/25/2049(a)(e)			10		10,539
Series 2019-DNA4, Class M2 2.039% (LIBOR 1 Month + 1.95%), 10/25/2049(a)(e)			11		10,593
Series 2020-DNA1, Class M2 1.789% (LIBOR 1 Month + 1.70%), 01/25/2050(a)(e)			71		71,612
Series 2021-DNA5, Class M2 1.699% (SOFR + 1.65%), 01/25/2034(a)(e)			77		77,298
Series 2021-DNA6, Class M2 1.548% (SOFR + 1.50%), 10/25/2041(a)(e)			150		150,242
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 4.989% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			124		128,877
Series 2015-C02, Class 1M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			28		28,328
Series 2015-C02, Class 2M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			5		5,467
Series 2015-C03, Class 1M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			33		34,077
Series 2015-C04, Class 2M2 5.639% (LIBOR 1 Month + 5.55%), 04/25/2028(e)			4		3,673
Series 2016-C01, Class 1M2 6.839% (LIBOR 1 Month + 6.75%), 08/25/2028(e)			112		117,945
Series 2016-C01, Class 2M2 7.039% (LIBOR 1 Month + 6.95%), 08/25/2028(e)			15		15,467
Series 2016-C04, Class 1B 10.339% (LIBOR 1 Month + 10.25%), 01/25/2029(e)			118		132,796
Series 2016-C05, Class 2M2 4.539% (LIBOR 1 Month + 4.45%), 01/25/2029(e)			110		114,689
Series 2017-C02, Class 2B1 5.589% (LIBOR 1 Month + 5.50%), 09/25/2029(e)			24		26,409

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-C05, Class 1M2 2.289% (LIBOR 1 Month + 2.20%), 01/25/2030(e)	U.S.$		53	$	53,822
Series 2018-C01, Class 1B1 3.639% (LIBOR 1 Month + 3.55%), 07/25/2030(e)			180		185,660
Home Re Ltd. Series 2020-1, Class M2 5.339% (LIBOR 1 Month + 5.25%), 10/25/2030(a)(e)			150		154,865
Series 2021-1, Class M1B 1.639% (LIBOR 1 Month + 1.55%), 07/25/2033(a)(e)			250		249,384
Mortgage Insurance-Linked Notes Series 2019-1, Class M2 2.989% (LIBOR 1 Month + 2.90%), 11/26/2029(a)(e)			110		110,242
Oaktown Re II Ltd. Series 2018-1A, Class M1 1.639% (LIBOR 1 Month + 1.55%), 07/25/2028(a)(e)			31		30,984
Oaktown Re III Ltd. Series 2019-1A, Class M1B 2.039% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(e)			150		150,000
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 2.838% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(e)			42		41,185
Series 2019-3R, Class A 2.788% (LIBOR 1 Month + 2.70%), 10/27/2022(a)(e)			25		25,030
Radnor Re Ltd. Series 2019-1, Class M1B 2.039% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(e)			96		95,841
Series 2020-1, Class M1C 1.839% (LIBOR 1 Month + 1.75%), 01/25/2030(a)(e)			150		148,512
Triangle Re Ltd. Series 2020-1, Class M1C 4.589% (LIBOR 1 Month + 4.50%), 10/25/2030(a)(e)			150		151,120
Series 2021-3, Class M1A 1.949% (SOFR + 1.90%), 02/25/2034(a)(e)			137		137,034
					4,274,619

26    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Agency Fixed Rate – 0.3%
Federal Home Loan Mortgage Corp. REMICs Series 4913, Class IO 6.00%, 04/15/2041(f)	U.S.$		96	$	21,953
Series 5080, Class IJ 4.00%, 12/25/2050(f)			707		104,232
Federal National Mortgage Association REMICs Series 2012-120, Class CI 3.50%, 12/25/2031(f)			218		10,115
Series 2016-26, Class IO 5.00%, 05/25/2046(f)			213		36,051
Series 2016-31, Class IO 5.00%, 06/25/2046(f)			279		44,676
Series 2016-64, Class BI 5.00%, 09/25/2046(f)			37		5,752
					222,779
Agency Floating Rate – 0.2%
Federal Home Loan Mortgage Corp. REMICs Series 4372, Class JS 6.01% (6.10% – LIBOR 1 Month), 08/15/2044(e)(g)			118		23,829
Series 4906, Class SA 5.961% (6.05% – LIBOR 1 Month), 09/25/2049(e)(g)			118		24,174
Federal National Mortgage Association REMICs Series 2012-17, Class ES 6.461% (6.55% – LIBOR 1 Month), 03/25/2041(e)(g)			108		12,257
Series 2012-17, Class SE 5.861% (5.95% – LIBOR 1 Month), 03/25/2042(e)(g)			80		19,214
Series 2019-25, Class SA 5.961% (6.05% – LIBOR 1 Month), 06/25/2049(e)(g)			60		12,137
Series 2019-42, Class SQ 5.961% (6.05% – LIBOR 1 Month), 08/25/2049(e)(g)			55		10,091
					101,702
Total Collateralized Mortgage Obligations (cost $4,558,872)					4,599,100
GOVERNMENTS - SOVEREIGN AGENCIES – 6.6%
Canada – 6.6%
Canada Housing Trust No. 1 1.95%, 12/15/2025(a) (cost $4,101,244)	CAD		5,065		4,145,557

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 6.1%
Financial Institutions – 4.1%
Banking – 3.3%
Banco de Credito del Peru 3.125%, 07/01/2030(a)	U.S.$		119	$	117,697
Bank of America Corp. Series X 6.25%, 09/05/2024(h)			134		146,403
BNP Paribas SA 6.625%, 03/25/2024(a)(h)			200		216,394
CIT Group, Inc. 3.929%, 06/19/2024			15		15,609
Credit Agricole SA 8.125%, 12/23/2025(a)(h)			200		240,066
HSBC Holdings PLC 6.375%, 03/30/2025(h)			200		217,876
ING Groep NV 6.875%, 04/16/2022(a)(h)			200		204,752
Morgan Stanley Series H 3.734% (LIBOR 3 Month + 3.61%), 01/15/2022(e)(h)			7		7,033
Nordea Bank Abp 6.625%, 03/26/2026(a)(h)			200		228,364
PNC Financial Services Group, Inc. (The) Series O 3.81% (LIBOR 3 Month + 3.68%), 02/01/2022(e)(h)			12		12,041
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(h)			200		215,028
Truist Financial Corp. Series P 4.95%, 09/01/2025(h)			241		262,213
UBS Group AG 7.00%, 01/31/2024(a)(h)			200		216,966
					2,100,442
Finance – 0.6%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 3.65%, 07/21/2027			150		158,810
Aircastle Ltd. 2.85%, 01/26/2028(a)			5		5,037
4.125%, 05/01/2024			8		8,452
4.25%, 06/15/2026			2		2,168
4.40%, 09/25/2023			16		16,940

28    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.00%, 04/01/2023	U.S.$		3	$	3,167
5.25%, 08/11/2025(a)			52		57,606
Aviation Capital Group LLC 1.95%, 01/30/2026-09/20/2026(a)			60		58,983
3.50%, 11/01/2027(a)			8		8,345
4.125%, 08/01/2025(a)			16		17,089
4.375%, 01/30/2024(a)			26		27,598
					364,195
REITs – 0.2%
Office Properties Income Trust 2.65%, 06/15/2026			115		115,059
3.45%, 10/15/2031			30		29,295
					144,354
					2,608,991
Industrial – 1.7%
Basic – 0.0%
Arconic Corp. 6.00%, 05/15/2025(a)			15		15,751
Capital Goods – 0.0%
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			7		7,406
4.40%, 03/15/2024			8		8,547
					15,953
Communications - Media – 0.4%
Netflix, Inc. 4.375%, 11/15/2026			216		240,468
Consumer Cyclical - Other – 0.3%
Las Vegas Sands Corp. 3.50%, 08/18/2026			165		168,729
Consumer Non-Cyclical – 0.4%
Pilgrim’s Pride Corp. 5.875%, 09/30/2027(a)			250		263,492
Energy – 0.3%
Cenovus Energy, Inc. 5.375%, 07/15/2025			16		17,977
Continental Resources, Inc./OK 5.75%, 01/15/2031(a)			41		49,116
Ecopetrol SA 4.625%, 11/02/2031			15		14,888
5.375%, 06/26/2026			55		59,479
5.875%, 05/28/2045			4		4,035
6.875%, 04/29/2030			45		51,862
					197,357

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Services – 0.0%
Expedia Group, Inc. 6.25%, 05/01/2025(a)	U.S.$		4	$	4,569
Technology – 0.3%
Broadcom, Inc. 3.137%, 11/15/2035(a)			22		21,669
4.11%, 09/15/2028			78		85,973
Dell International LLC/EMC Corp. 7.125%, 06/15/2024(a)			36		36,641
					144,283
					1,050,602
Utility – 0.3%
Electric – 0.3%
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(a)			200		162,663
Total Corporates - Investment Grade (cost $3,813,821)					3,822,256
COMMERCIAL MORTGAGE-BACKED SECURITIES – 5.5%
Non-Agency Fixed Rate CMBS – 4.8%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(a)			100		91,354
BANK Series 2020-BN28, Class XA 1.784%, 03/15/2063(f)			2,082		272,904
Series 2020-BN29, Class XA 1.351%, 11/15/2053(f)			993		98,878
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.341%, 05/15/2052(f)			992		83,872
Bbcms Mortgage Trust Series 2017-C1, Class XA 1.445%, 02/15/2050(f)			1,461		89,363
CD Mortgage Trust Series 2016-CD1, Class XA 1.39%, 08/10/2049(f)			1,614		85,140
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.636%, 05/10/2058(f)			90		5,370
Series 2017-C8, Class XA 1.529%, 06/15/2050(f)			292		19,527
Citigroup Commercial Mortgage Trust Series 2017-P7, Class XA 1.105%, 04/14/2050(f)			975		44,446

30    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Commercial Mortgage Trust Series 2012-CR5, Class C 4.32%, 12/10/2045(a)	U.S.$		100	$	99,734
Series 2014-CR16, Class D 4.919%, 04/10/2047(a)			100		95,037
Series 2016-DC2, Class XA 0.958%, 02/10/2049(f)			2,648		88,645
CSAIL Commercial Mortgage Trust Series 2015-C1, Class D 3.762%, 04/15/2050(a)			100		74,017
GS Mortgage Securities Trust
Series 2013-GC13, Class D 4.064%, 07/10/2046(a)			100		48,753
Series 2016-GS3, Class XA 1.215%, 10/10/2049(f)			1,313		63,453
Series 2017-GS5, Class XA 0.844%, 03/10/2050(f)			1,471		59,148
Series 2017-GS7, Class XA 1.112%, 08/10/2050(f)			3,403		165,755
Series 2019-GC39, Class XA 1.135%, 05/10/2052(f)			4,670		299,497
JPMBB Commercial Mortgage Securities Trust Series 2013-C14, Class D 4.548%, 08/15/2046(a)			75		45,998
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-C8, Class E 4.672%, 10/15/2045(a)			100		89,514
Series 2012-LC9, Class G 4.363%, 12/15/2047(a)			100		76,399
Series 2013-LC11, Class B 3.499%, 04/15/2046			110		111,881
UBS Commercial Mortgage Trust Series 2012-C1, Class D 5.536%, 05/10/2045(a)			125		118,281
Series 2017-C1, Class XA 1.528%, 06/15/2050(f)			1,113		75,372
Series 2017-C2, Class XA 1.056%, 08/15/2050(f)			2,589		119,392
Series 2018-C14, Class XA 0.984%, 12/15/2051(f)			976		56,569
Series 2018-C15, Class XA 0.91%, 12/15/2051(f)			900		47,524
Series 2019-C18, Class XA 1.035%, 12/15/2052(f)			1,280		80,271
UBS-Barclays Commercial Mortgage Trust Series 2013-C6, Class D 4.30%, 04/10/2046(a)			81		70,998

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Wells Fargo Commercial Mortgage Trust Series 2016-C35, Class XA 1.893%, 07/15/2048(f)	U.S.$		1,119	$	80,455
Series 2016-LC24, Class XA 1.616%, 10/15/2049(f)			866		55,324
Series 2018-C48, Class XA 0.941%, 01/15/2052(f)			825		48,585
Series 2019-C52, Class XA 1.594%, 08/15/2052(f)			962		92,872
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class D 4.887%, 06/15/2044(a)			60		56,998
Series 2011-C4, Class E
4.887%, 06/15/2044(a)			25		18,796
					3,030,122
Non-Agency Floating Rate CMBS – 0.7%
BFLD Trust Series 2019-DPLO, Class D 1.93% (LIBOR 1 Month + 1.84%), 10/15/2034(a)(e)			59		58,555
Series 2019-DPLO, Class E 2.33% (LIBOR 1 Month + 2.24%), 10/15/2034(a)(e)			10		9,874
CLNY Trust Series 2019-IKPR, Class D 2.115% (LIBOR 1 Month + 2.03%), 11/15/2038(a)(e)			120		119,398
Great Wolf Trust Series 2019-WOLF, Class D 2.023% (LIBOR 1 Month + 1.93%), 12/15/2036(a)(e)			45		44,548
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 4.09% (LIBOR 1 Month + 4.00%), 05/15/2036(a)(e)			133		111,155
Starwood Retail Property Trust Series 2014-STAR, Class A 1.56% (LIBOR 1 Month + 1.47%), 11/15/2027(a)(e)			89		54,067
					397,597
Total Commercial Mortgage-Backed Securities (cost $3,621,162)					3,427,719

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS - SOVEREIGNS – 3.8%
Bahrain – 0.4%
Bahrain Government International Bond 7.00%, 10/12/2028(a)	U.S.$		200	$	218,813
Dominican Republic – 0.6%
Dominican Republic International Bond 5.95%, 01/25/2027(a)			357		397,720
Ecuador – 0.1%
Ecuador Government International Bond 5.00%, 07/31/2030(a)			97		79,947
Egypt – 0.4%
Egypt Government International Bond 5.75%, 05/29/2024(a)			212		218,095
El Salvador – 0.1%
El Salvador Government International Bond 5.875%, 01/30/2025(a)			24		18,972
8.625%, 02/28/2029(a)			90		71,398
					90,370
Ghana – 0.3%
Ghana Government International Bond 6.375%, 02/11/2027(a)			200		178,000
Ivory Coast – 0.5%
Ivory Coast Government International Bond 5.875%, 10/17/2031(a)	EUR		100		119,704
6.375%, 03/03/2028(a)	U.S.$		200		218,037
					337,741
Lebanon – 0.0%
Lebanon Government International Bond 6.10%, 10/04/2022(a)(i)(j)			16		2,360
Nigeria – 0.3%
Nigeria Government International Bond 6.125%, 09/28/2028(a)			200		198,250
Senegal – 0.2%
Senegal Government International Bond 4.75%, 03/13/2028(a)	EUR		100		117,717
South Africa – 0.7%
Republic of South Africa Government International Bond 4.30%, 10/12/2028	U.S.$		200		201,475
5.875%, 09/16/2025			200		223,725
					425,200

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ukraine – 0.2%
Ukraine Government International Bond 7.75%, 09/01/2025(a)	U.S.$		100	$	107,925
Total Emerging Markets - Sovereigns (cost $2,443,137)					2,372,138
COLLATERALIZED LOAN OBLIGATIONS – 3.2%
CLO - Floating Rate – 3.2%
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 3.224% (LIBOR 3 Month + 3.10%), 04/15/2034(a)(e)			250		250,040
Neuberger Berman Loan Advisers CLO 33 Ltd. Series 2019-33A, Class CR 2.022% (LIBOR 3 Month + 1.90%), 10/16/2033(a)(e)			250		249,999
New Mountain CLO Ltd. Series CLO-3A, Class D 3.481% (LIBOR 3 Month + 3.35%), 10/20/2034(a)(e)			250		250,024
Palmer Square CLO Ltd. Series 2021-3A, Class D 3.079% (LIBOR 3 Month + 2.95%), 01/15/2035(a)(e)			250		250,000
Prudential PLC Series 2021-5A, Class D 3.169% (LIBOR 3 Month + 3.05%), 10/18/2034(a)(e)			250		250,037
Rockford Tower CLO Ltd. Series 2021-2A, Class D 3.363% (LIBOR 3 Month + 3.25%), 07/20/2034(a)(e)			250		250,291
Sixth Street CLO XIX Ltd. Series 2021-20A, Class C 2.132% (LIBOR 3 Month + 2.00%), 10/20/2034(a)(e)			250		250,047
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 3.282% (LIBOR 3 Month + 3.15%), 01/20/2034(a)(e)			250		249,037
Total Collateralized Loan Obligations (cost $2,000,000)					1,999,475

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BANK LOANS – 1.6%
Industrial – 1.4%
Capital Goods – 0.2%
ACProducts Holdings, Inc. 4.750% (LIBOR 3 Month + 4.25%), 05/17/2028(k)	U.S.$		102	$	101,428
The Chamberlain Group, LLC 10/22/2028(l)			10		9,979
					111,407
Communications - Media – 0.1%
Coral-US Co-Borrower LLC 3.135% (LIBOR 3 Month + 3.00%), 10/15/2029(k)			30		29,781
Univision Communications, Inc. 3.750% (LIBOR 1 Month + 2.75%), 03/15/2024(k)			9		8,672
					38,453
Communications - Telecommunications – 0.2%
Crown Subsea Communications Holding, Inc. 5.750% (LIBOR 1 Month + 5.00%), 04/27/2027(k)			40		40,352
DIRECTV Financing, LLC 5.750% (LIBOR 3 Month + 5.00%), 08/02/2027(k)			30		30,014
Zacapa SARL 4.632% (LIBOR 3 Month + 4.50%), 07/02/2025(k)			44		43,606
					113,972
Consumer Cyclical - Entertainment – 0.2%
Seaworld Parks & Entertainment, Inc. 3.500% (LIBOR 1 Month + 3.00%), 08/25/2028(k)			143		142,464
Consumer Cyclical - Other – 0.1%
American Tire Distributors, Inc. 10/08/2028(l)			60		60,435
Consumer Non-Cyclical – 0.1%
Kronos Acquisition Holdings, Inc. 4.250% (LIBOR 3 Month + 3.75%), 12/22/2026(k)			40		38,474
Padagis LLC 5.250% (LIBOR 3 Month + 4.75%), 07/06/2028(k)(m)			30		30,037

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
U.S. Renal Care, Inc. 5.125% (LIBOR 1 Month + 5.00%), 06/26/2026(k)	U.S.$		27		$	27,241
						95,752
Other Industrial – 0.0%
Rockwood Service Corporation 4.087% (LIBOR 1 Month + 4.00%), 01/23/2027(k)(m)			3			3,033
Services – 0.1%
Amentum Government Services Holdings LLC 3.587% (LIBOR 1 Month + 3.50%), 01/29/2027(k)			3			2,945
Parexel International Corporation 2.837% (LIBOR 1 Month + 2.75%), 09/27/2024(k)			12			12,159
Team Health Holdings, Inc. 3.75% (LIBOR 1 Month + 2.75%), 02/06/2024(k)			19			18,564
						33,668
Technology – 0.4%
athenahealth, Inc. 4.377% (LIBOR 3 Month + 4.25%), 02/11/2026(k)			19			18,710
Banff Guarantor Inc. 02/27/2026(l)			10			10,113
Boxer Parent Company, Inc. 3.882% (LIBOR 3 Month + 3.75%), 10/02/2025(k)			27			27,004
Endurance International Group Holdings, Inc. 4.250% (LIBOR 3 Month + 3.50%), 02/10/2028(k)			89			87,424
Loyalty Ventures Inc. 10/08/2027(l)(m)			83			82,443
Peraton Corp. 4.500% (LIBOR 1 Month + 3.75%), 02/01/2028(k)			20			19,922
Presidio Holdings Inc. 3.590% (LIBOR 1 Month + 3.50%), 01/22/2027(k)			0	**		488
3.630% (LIBOR 3 Month + 3.50%), 01/22/2027(k)			9			8,870
						254,974
						854,158

36    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.1%
Finance – 0.0%
Equiniti Group PLC 10/29/2028(l)(m)	U.S.$		30	$	30,000
Insurance – 0.1%
Cross Financial Corp. 4.750% (LIBOR 1 Month + 4.00%), 09/15/2027(k)			50		49,978
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 3.837% (LIBOR 1 Month + 3.75%), 09/03/2026(k)			11		10,703
					60,681
					90,681
Utility – 0.1%
Electric – 0.1%
Generation Bridge Acquisition, LLC 08/06/2028(l)(m)			42		41,949
Granite Generation LLC 4.750% (LIBOR 1 Month + 3.75%), 11/09/2026(k)			21		21,088
4.750% (LIBOR 3 Month + 3.75%), 11/09/2026(k)			4		4,124
					67,161
Total Bank Loans (cost $1,007,013)					1,012,000
QUASI-SOVEREIGNS – 0.9%
Quasi-Sovereign Bonds – 0.9%
Mexico – 0.3%
Petroleos Mexicanos 5.35%, 02/12/2028			101		100,662
5.95%, 01/28/2031			53		52,019
6.49%, 01/23/2027			22		23,362
					176,043
Oman – 0.3%
Lamar Funding Ltd. 3.958%, 05/07/2025(a)			208		207,194
Ukraine – 0.3%
State Agency of Roads of Ukraine 6.25%, 06/24/2028(a)			200		196,062
Total Quasi-Sovereigns (cost $565,328)					579,299

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 0.8%
Other ABS - Fixed Rate – 0.5%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 5.997%, 11/15/2044(d)	U.S.$		3	$	3,264
Series 2019-HP1, Class B 3.48%, 12/15/2026(a)			100		101,551
Consumer Loan Underlying Bond CLUB Credit Trust Series 2020-P1, Class B 2.92%, 03/15/2028(a)			100		100,700
Marlette Funding Trust Series 2018-3A, Class C 4.63%, 09/15/2028(a)			48		47,851
SoFi Consumer Loan Program Trust Series 2020-1, Class D 2.94%, 01/25/2029(a)			100		101,688
					355,054
Autos - Fixed Rate – 0.3%
Exeter Automobile Receivables Trust Series 2018-4A, Class E 5.38%, 07/15/2025(a)			115		119,571
Series 2019-1A, Class E 5.20%, 01/15/2026(a)			40		42,168
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(a)			14		14,564
					176,303
Total Asset-Backed Securities (cost $522,907)					531,357
EMERGING MARKETS - CORPORATE BONDS – 0.5%
Industrial – 0.5%
Basic – 0.1%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			28		28,454
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			60		58,436
					86,890
Capital Goods – 0.3%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			146		152,351

38    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 0.1%
Leviathan Bond Ltd. 5.75%, 06/30/2023(a)	U.S.$		59	$	60,910
6.125%, 06/30/2025(a)			23		24,711
					85,621
Total Emerging Markets - Corporate Bonds (cost $312,203)					324,862
		Shares
SHORT-TERM INVESTMENTS – 0.6%
Investment Companies – 0.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(n)(o)(p) (cost $395,094)			395,094		395,094
Total Investments – 146.1% (cost $92,625,335)					91,855,110
Other assets less liabilities – (46.1)%					(29,004,464	)
Net Assets – 100.0%				$	62,850,646

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Sold Contracts
10 Yr Mini Japan Government Bond Futures		3	December 2021	$	398,219	$	1,573
Canadian 10 Yr Bond Futures		10	December 2021		1,138,898		39,092
Euro-BOBL Futures		5	December 2021		773,133		11,844
Euro-Schatz Futures		3	December 2021		388,277		1,142
U.S. 10 Yr Ultra Futures		22	December 2021		3,190,687		51,024
U.S. T-Note 2 Yr (CBT) Futures		24	December 2021		5,262,000		21,501
U.S. T-Note 5 Yr (CBT) Futures		62	December 2021		7,548,500		63,491
U.S. T-Note 10 Yr (CBT) Futures		98	December 2021		12,808,906		229,184
						$	418,851

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date	Unrealized Appreciation/ (Depreciation)
Citibank, NA	BRL	4,591	USD	853	11/03/2021	$	39,459
Citibank, NA	USD	814	BRL	4,591	11/03/2021		(115	)
Citibank, NA	AUD	4,668	USD	3,362	11/09/2021		(149,770	)

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    39

PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date	Unrealized Appreciation/ (Depreciation)
Citibank, NA	RUB	34,655	USD	471	12/15/2021	$	(13,712	)
Goldman Sachs Bank USA	BRL	4,264	USD	756	11/03/2021		107
Goldman Sachs Bank USA	USD	357	BRL	2,025	11/03/2021		1,349
Goldman Sachs Bank USA	USD	403	BRL	2,239	11/03/2021		(5,951	)
HSBC Bank USA	USD	11	IDR	163,286	01/27/2022		50
Morgan Stanley Capital Services, Inc.	BRL	327	USD	58	11/03/2021		8
Morgan Stanley Capital Services, Inc.	USD	59	BRL	327	11/03/2021		(631	)
Morgan Stanley Capital Services, Inc.	COP	1,305,902	USD	340	11/12/2021		(6,565	)
Morgan Stanley Capital Services, Inc.	PEN	1,109	USD	270	11/12/2021		(7,511	)
Morgan Stanley Capital Services, Inc.	CAD	5,357	USD	4,185	11/19/2021		(142,592	)
Morgan Stanley Capital Services, Inc.	BRL	327	USD	58	12/02/2021		623
Morgan Stanley Capital Services, Inc.	NZD	3,599	USD	2,500	01/20/2022		(75,072	)
State Street Bank & Trust Co.	EUR	1,319	USD	1,563	11/08/2021		37,591
State Street Bank & Trust Co.	JPY	2,145	USD	20	11/17/2021		788
State Street Bank & Trust Co.	MXN	3,296	USD	161	01/13/2022		3,126
UBS AG	AUD	3,803	USD	2,860	11/09/2021		(1,336	)
						$	(320,154	)

INTEREST RATE SWAPTIONS WRITTEN (see Note D)

Description

Index

Counterparty

Strike Rate

Expiration Date

Notional Amount (000)

Premiums Received

Market Value

Put

OTC – 1 Year Interest Rate Swap

3 Month LIBOR

Morgan Stanley Capital Services LLC

1.68

%

11/22/2021

USD

308

$

2,572

$

(1,139

)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 37, 5 Year Index, 12/20/2026*		5.00	%		Quarterly		3.05	%		USD	1,310	$	123,625	$	122,731	$	894

40    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
iTraxxx Xover Series 36, 5 Year Index, 12/20/2026*		5.00	%		Quarterly		2.62	%		EUR	1,560	$	211,232	$	216,060	$	(4,828	)
												$	334,857	$	338,791	$	(3,934	)

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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)
CAD	680		05/22/2024	3 Month CDOR	1.985%	Semi-Annual	$	7,217		$	– 0	–	$	7,217
USD	260		05/24/2024	2.206%	3 Month LIBOR	Semi-Annual/Quarterly		(11,323	)		– 0	–		(11,323	)
							$	(4,106	)	$	– 0	–	$	(4,106	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	500	$	(138,708	)	$	(180,553	)	$	41,845
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	10		(2,774	)		(2,603	)		(171	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	18		(4,994	)		(4,339	)		(655	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	19		(5,271	)		(4,534	)		(737	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	26		(7,213	)		(6,204	)		(1,009	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	24		(6,658	)		(2,001	)		(4,657	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	36		(9,987	)		(2,986	)		(7,001	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	53		(14,703	)		(3,212	)		(11,491	)

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    41

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	79	$	(21,916	)	$	(4,753	)	$	(17,163	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	360		(36,075	)		(11,138	)		(24,937	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	555		(153,966	)		(74,656	)		(79,310	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	24		(6,658	)		(1,991	)		(4,667	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	156		(43,277	)		(33,039	)		(10,238	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	400		(110,966	)		(48,623	)		(62,343	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		10.00			USD	189		(82,628	)		(35,979	)		(46,649	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	12		(3,329	)		(995	)		(2,334	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	400		(40,129	)		(39,837	)		(292	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	3		(832	)		(178	)		(654	)
												$	(690,084	)	$	(457,621	)	$	(232,463	)

* Termination date

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation

Rate Paid/ Received

Payment Frequency

Current Notional (000)

Maturity Date

Unrealized Appreciation/ (Depreciation)

Receive Total Return on Reference Obligation

Goldman Sachs International Markit iBoxx USD Contingent Convertible Liquid Developed Markets AT1 Index TRI

3 Month LIBOR

Maturity

USD

148

12/20/2021

$

(1,707

)

42    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2021
HSBC Securities (USA), Inc.†		0.08	%		—	$	11,251,275
HSBC Securities (USA), Inc.†		0.08	%		—		6,608,825
HSBC Securities (USA), Inc.†		0.08	%		—		5,261,718
HSBC Securities (USA), Inc.†		0.08	%		—		2,775,734
HSBC Securities (USA), Inc.†		0.08	%		—		1,340,651
HSBC Securities (USA), Inc.†		0.08	%		—		788,555
HSBC Securities (USA), Inc.†		0.08	%		—		480,771
						$	28,507,529

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2021.

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

Overnight and Continuous

Up to 30 Days

31-90 Days

Greater than 90 Days

Total

Governments – Treasuries

$

28,507,529

$

– 0

–

$

– 0

–

$

– 0

–

$

28,507,529

** Principal amount less than 500.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $29,296,572 or 46.6% of net assets.

(b) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

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

(d) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.09% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Athabasca Oil Corp. 9.75%, 11/01/2026		10/07/2021	$	48,506	$	50,373		0.08	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 5.997%, 11/15/2044		10/09/2019		3,312		3,264		0.01	%

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

(f) IO – Interest Only.

(g) Inverse interest only security.

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    43

PORTFOLIO OF INVESTMENTS (continued)

(i) Defaulted.

(j) Non-income producing security.

(k) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2021.

(l) This position or a portion of this position represents an unsettled loan purchase. The coupon rate will be determined at the time of settlement and will be based upon the London-Interbank Offered Rate (“LIBOR”) plus a premium which was determined at the time of purchase.

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

(n) Affiliated investments.

(o) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

COP – Colombian Peso

EUR – Euro

IDR – Indonesian Rupiah

JPY – Japanese Yen

MXN – Mexican Peso

NZD – New Zealand Dollar

PEN – Peruvian Sol

RUB – Russian Ruble

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

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

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

44    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $92,230,241)	$	91,460,016
Affiliated issuers (cost $395,094)		395,094
Cash		1,142
Cash collateral due from broker		539,781
Foreign currencies, at value (cost $137,630)		138,502
Unaffiliated interest and dividends receivable		738,360
Unrealized appreciation on forward currency exchange contracts		83,101
Receivable for capital stock sold		66,880
Receivable for variation margin on futures		6,377
Receivable for investment securities sold		4,852
Affiliated dividends receivable		8
Total assets		93,434,113
Liabilities
Swaptions written, at value (premiums received $2,572)		1,139
Payable for reverse repurchase agreements		28,507,529
Payable for investment securities purchased		707,031
Market value on credit default swaps (net premiums received $457,621)		690,084
Unrealized depreciation on forward currency exchange contracts		403,255
Dividends payable		58,989
Payable for capital stock redeemed		39,270
Advisory fee payable		20,642
Payable for variation margin on centrally cleared swaps		10,139
Foreign capital gains tax payable		2,026
Unrealized depreciation on total return swaps		1,707
Directors’ fees payable		1,656
Distribution fee payable		1,486
Transfer Agent fee payable		1,452
Accrued expenses		137,062
Total liabilities		30,583,467
Net Assets	$	62,850,646
Composition of Net Assets
Capital stock, at par	$	6,352
Additional paid-in capital		63,197,980
Accumulated loss		(353,686	)
Net Assets	$	62,850,646

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	5,527,851		558,125	$	9.90	*
C	$	729,998		73,784	$	9.89
Advisor	$	56,592,797		5,720,527	$	9.89

* The maximum offering price per share for Class A shares was $10.34 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    |    45

STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest (net of foreign taxes withheld of $1,385)	$	1,540,514
Dividends
Unaffiliated issuers		3,619
Affiliated issuers		100
Other income		172		$	1,544,405
Expenses
Advisory fee (see Note B)		181,078
Distribution fee—Class A		2,962
Distribution fee—Class C		6,850
Transfer agency—Class A		1,136
Transfer agency—Class C		493
Transfer agency—Advisor Class		34,656
Administrative		89,865
Custody and accounting		88,167
Audit and tax		67,856
Registration fees		52,926
Legal		35,046
Printing		19,304
Directors’ fees		19,069
Miscellaneous		11,149
Total expenses before interest expense		610,557
Interest expense		9,855
Total expenses		620,412
Less: expenses waived and reimbursed by the Adviser (see Note B)		(368,355	)
Net expenses					252,057
Net investment income					1,292,348
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					187,776
Forward currency exchange contracts					70,890
Futures					314,751
Swaps					629,949
Swaptions written					(308	)
Foreign currency transactions					77,835
Net change in unrealized appreciation/depreciation of:
Investments(b)					(1,449,318	)
Forward currency exchange contracts					(332,894	)
Futures					304,474
Swaps					(30,395	)
Swaptions written					1,433
Foreign currency denominated assets and liabilities					(615	)
Net loss on investment and foreign currency transactions					(226,422	)
Net Increase in Net Assets from Operations				$	1,065,926

(a) Net of foreign realized capital gains taxes of $2,162.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $892.

See notes to financial statements.

46    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	1,292,348		$	679,615
Net realized gain (loss) on investment and foreign currency transactions		1,280,893			(75,216	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(1,507,315	)		248,938
Net increase in net assets from operations		1,065,926			853,337
Distributions to Shareholders
Class A		(40,601	)		(7,576	)
Class C		(14,065	)		(8,867	)
Advisor Class		(1,504,066	)		(1,417,004	)
Capital Stock Transactions
Net increase		20,561,741			27,840,328
Capital Contributions
Proceeds from third party vendor (see Note E)		– 0	–		3,413
Total increase		20,068,935			27,263,631
Net Assets
Beginning of period		42,781,711			15,518,080
End of period	$	62,850,646		$	42,781,711

See notes to financial statements.

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STATEMENT OF CASH FLOWS

For the year ended October 31, 2021

Cash flows from operating activities
Net increase in net assets from operations				$	1,065,926
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(151,443,500	)
Purchases of short-term investments		(31,698,535	)
Proceeds from disposition of long-term investments		113,568,581
Proceeds from disposition of short-term investments		31,757,536
Net realized gain on investment transactions and foreign currency transactions		(1,280,893	)
Net realized gain on forward currency exchange contracts		70,890
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		1,507,315
Net accretion of bond discount and amortization of bond premium		946,243
Decrease in receivable for investments sold		32,793
Increase in interest receivable		(385,422	)
Decrease in affiliated dividends receivable		4
Decrease in receivable due from Adviser		16,034
Increase in cash collateral due from broker		(28,335	)
Decrease in payable for investments purchased		(9,732,049	)
Increase in advisory fee payable		20,642
Increase in foreign capital gains tax payable		2,026
Increase in distribution fee payable		952
Increase in Directors’ fee payable		144
Increase in accrued expenses		53,356
Proceeds from swaptions written, net		2,264
Proceeds on swaps, net		180,398
Proceeds for exchange-traded derivatives settlements, net		1,137,744
Total adjustments					(45,271,812	)
Net cash provided by (used in) operating activities					(44,205,886	)
Cash flows from financing activities
Subscriptions of capital stock, net		20,206,257
Cash dividends paid (net of dividend reinvestments)†		(1,152,571	)
Increase in reverse repurchase agreements		25,157,251
Net cash provided by (used in) financing activities					44,210,937
Effect of exchange rate on cash					77,220
Net increase in cash					82,271
Cash at beginning of year					57,373
Cash at end of year				$	139,644
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	403,566
Interest expense paid during the year	$	8,398

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in reverse repurchase agreements throughout the year.

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Short Duration Income Portfolio (the “Fund”), a non-diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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,

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2021:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments – Treasuries

$

– 0

–

$

59,786,803

$

– 0

–

$

59,786,803

Corporates – Non-Investment Grade

– 0

–

8,859,450

– 0

–

8,859,450

Collateralized Mortgage Obligations

– 0

–

4,599,100

– 0

–

4,599,100

Governments – Sovereign Agencies

– 0

–

4,145,557

– 0

–

4,145,557

Corporates – Investment Grade

– 0

–

3,822,256

– 0

–

3,822,256

Commercial Mortgage-Backed Securities

– 0

–

3,427,719

– 0

–

3,427,719

Emerging Markets – Sovereigns

– 0

–

2,372,138

– 0

–

2,372,138

Collateralized Loan Obligations

– 0

–

1,999,475

– 0

–

1,999,475

Bank Loans

– 0

–

824,538

187,462

1,012,000

Quasi-Sovereigns

– 0

–

579,299

– 0

–

579,299

Asset-Backed Securities

– 0

–

531,357

– 0

–

531,357

Emerging Markets – Corporate Bonds

– 0

–

324,862

– 0

–

324,862

Short-Term Investments

395,094

– 0

–

– 0

–

395,094

Total Investments in Securities

395,094

91,272,554

187,462

91,855,110

Other Financial Instruments(a):

Assets:

Futures

418,851

– 0

–

– 0

–

418,851

(b)

Forward Currency Exchange Contracts

– 0

–

83,101

– 0

–

83,101

Centrally Cleared Credit Default Swaps

– 0

–

334,857

– 0

–

334,857

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

7,217

– 0

–

7,217

(b)

Liabilities:

Forward Currency Exchange Contracts

– 0

–

(403,255

)

– 0

–

(403,255

)

Interest Rate Swaptions Written

– 0

–

(1,139

)

– 0

–

(1,139

)

Centrally Cleared Interest Rate Swaps

– 0

–

(11,323

)

– 0

–

(11,323

)(b)

Credit Default Swaps

– 0

–

(690,084

)

– 0

–

(690,084

)

Total Return Swaps

– 0

–

(1,707

)

– 0

–

(1,707

)

Reverse Repurchase Agreements

(28,507,529

)

– 0

–

– 0

–

(28,507,529

)

Total

$

(27,693,584

)

$

90,590,221

$

187,462

$

63,084,099

(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.

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NOTES TO FINANCIAL STATEMENTS (continued)

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

5. Investment Income and Investment Transactions

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

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NOTES TO FINANCIAL STATEMENTS (continued)

adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

8. Repurchase Agreements

It is the Fund’s policy that its custodian or designated subcustodian take control of securities as collateral under repurchase agreements and to determine on a daily basis that the value of such securities are sufficient to cover the value of the repurchase agreements. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of collateral by the Fund may be delayed or limited.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .35% of the first $2.5 billion of the Fund’s average daily net assets and .30% of the excess over $2.5 billion of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .65%, 1.45% and .45% of daily average net assets for Class A, Class C, and

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NOTES TO FINANCIAL STATEMENTS (continued)

Advisor Class shares, respectively. For the year ended October 31, 2021, such reimbursement/waivers amounted to $278,066. The Expense Caps may not be terminated by the Adviser before January 31, 2022. Any fees waived and expenses borne by the Adviser through January 20, 2021 may be reimbursed by Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amounted to $265,740, $306,046 and $63,883 for the years ended October 31, 2019, October 31, 2020 and October 31, 2021, respectively. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the Adviser voluntarily agreed to waive such fees in the amount of $89,865.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $18,004 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $0 from the sale of Class A shares and received $101 and $24 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $424.

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NOTES TO FINANCIAL STATEMENTS (continued)

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	430	$	31,598	$	31,633	$	395	$	0	*

* Amount is less than $500.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .20% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $858 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	38,262,840	$	14,853,150
U.S. government securities		113,207,451		97,215,143

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NOTES TO FINANCIAL STATEMENTS (continued)

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	92,705,183
Gross unrealized appreciation	$	1,382,112
Gross unrealized depreciation		(2,120,320	)
Net unrealized depreciation	$	(738,208	)

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, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a 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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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 year ended October 31, 2021, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

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The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional

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amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2021, the Fund held written swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets 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 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 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

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

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

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

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

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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 year ended October 31, 2021, the Fund held interest rate swaps for hedging and non-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 previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

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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 year ended October 31, 2021, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2021, the Fund held total return swaps for non-hedging purposes.

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

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of

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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 year ended October 31, 2021, 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	$	418,851	*	Receivable/Payable for variation margin on futures	$		*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		894	*	Receivable/Payable for variation margin on centrally cleared swaps		4,828	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		7,217	*	Receivable/Payable for variation margin on centrally cleared swaps		11,323	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		83,101		Unrealized depreciation on forward currency exchange contracts		403,255
Interest rate contracts					Swaptions written, at value		1,139
Credit contracts					Market value on credit default swaps		690,084
Credit contracts					Unrealized depreciation on total return swaps		1,707
Total		$	510,063			$	1,112,336

* 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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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	$	314,751		$	304,474
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		70,890			(332,894	)
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		(308	)		1,433
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(14,149	)		2,537
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		644,098			(32,932	)
Total		$	1,015,282		$	(57,382	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Futures:
Average notional amount of buy contracts	$	1,594,437	(a)
Average notional amount of sale contracts	$	21,646,044
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	1,609,441
Average principal amount of sale contracts	$	10,319,249
Swaptions Written:
Average notional amount	$	686,667	(b)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	1,160,034
Credit Default Swaps:
Average notional amount of sale contracts	$	2,574,179

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Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	201,029	(b)
Average notional amount of sale contracts	$	3,978,708
Total Return Swaps:
Average notional amount	$	149,995

(a) Positions were open for ten months during the year.

(b) Positions were open for six months during the year.

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, 2021. 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/Citigroup Global Markets, Inc.

$

39,459

$

(39,459

)

$

– 0

–

$

– 0

–

$

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

1,456

(1,456

)

– 0

–

– 0

–

– 0

–

HSBC Bank USA

50

– 0

–

– 0

–

– 0

–

50

Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.

631

(631

)

– 0

–

– 0

–

– 0

–

State Street Bank & Trust Co.

41,505

– 0

–

– 0

–

– 0

–

41,505

Total

$

83,101

$

(41,546

)

$

– 0

–

$

– 0

–

$

41,555

^

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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
Citibank, NA/Citigroup Global Markets, Inc.	$	375,821	$	(39,459	)	$	– 0	–	$	(267,300	)	$	69,062
Credit Suisse International		190,041		– 0	–		– 0	–		(190,041	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		168,559		(1,456	)		– 0	–		– 0	–		167,103
JPMorgan Securities, LLC		85,957		– 0	–		– 0	–		– 0	–		85,957
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		274,471		(631	)		– 0	–		– 0	–		273,840
UBS AG		1,336		– 0	–		– 0	–		– 0	–		1,336
Total	$	1,096,185	$	(41,546	)	$	– 0	–	$	(457,341	)	$	597,298	^

* 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).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date;

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however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2021, the Fund earned drop income of $17,457 which is included in interest income in the accompanying statement of operations.

4. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2021, the average amount of reverse repurchase agreements outstanding was $13,312,396 and the daily weighted average interest rate was 0.08%. At October 31, 2021, the Fund had reverse repurchase agreements outstanding in the amount of $28,507,529 as reported on the statement of assets and liabilities.

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The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2021:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Securities (USA), Inc.	$	28,507,529	$	(28,483,402	)	$	24,127

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		640,070			73,345		$	6,419,373		$	720,666
Shares issued in reinvestment of dividends and distributions		3,210			271			32,088			2,684
Shares redeemed		(122,450	)		(37,321	)		(1,224,279	)		(372,260	)
Net increase		520,830			36,295		$	5,227,182		$	351,090
Class C
Shares sold		30,942			74,937		$	310,250		$	734,576
Shares issued in reinvestment of dividends and distributions		1,286			845			12,907			8,352
Shares redeemed		(31,820	)		(3,406	)		(319,931	)		(34,020	)
Net increase		408			72,376		$	3,226		$	708,908
Advisor Class
Shares sold		1,731,742			3,398,430		$	17,350,910		$	33,761,871
Shares issued in reinvestment of dividends and distributions		35,778			13,829			358,571			136,589
Shares redeemed		(236,815	)		(720,437	)		(2,378,148	)		(7,118,130	)
Net increase		1,530,705			2,691,822		$	15,331,333		$	26,780,330

At October 31, 2021, the Adviser owns approximately 39% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

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During the year ended October 31, 2020, a third party vendor reimbursed the Fund $3,413 for losses incurred due to a pricing error. This amount is presented in the Fund’s statement of changes in net assets.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

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

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

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

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk—The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value, or NAV.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s

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NOTES TO FINANCIAL STATEMENTS (continued)

Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”)

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NOTES TO FINANCIAL STATEMENTS (continued)

intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021			2020
Distributions paid from:
Ordinary income	$	1,558,732		$	1,419,417
Net long-term capital gains		– 0	–		14,030
Total taxable distributions paid	$	1,558,732		$	1,433,447

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	391,596
Undistributed capital gains		286,597
Other losses		(231,225	)(a)
Unrealized appreciation/(depreciation)		(738,956	)(b)
Total accumulated earnings/(deficit)	$	(291,988	)(c)

(a) As of October 31, 2021, the cumulative deferred loss on straddles was $231,225.

(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, the tax deferral of losses on wash sales, and the amortization on callable bonds.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2021, the Fund did not have any capital loss carryforwards.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on

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NOTES TO FINANCIAL STATEMENTS (continued)

Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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 Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,						December 12, 2018(a) to October 31, 2019
	2021			2020
Net asset value, beginning of period		$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.22			.23			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.02	(d)		(.28	)(d)		.42
Capital contributions		– 0	–		.16			– 0	–
Net increase in net asset value from operations		.24			.11			.70
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.38	)		(.35	)
Distributions from net realized gain on investment transactions		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.29	)		(.51	)		(.35	)
Net asset value, end of period		$  9.90			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(e)		2.37	%		1.17	%		7.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,528			$371			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.68	%		.68	%		.70	%^
Expenses, before waivers/reimbursements(f)		1.26	%		1.77	%		3.18	%^
Net investment income(c)		2.24	%		2.28	%		3.14	%^
Portfolio turnover rate**		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			336	%		181	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,						December 12, 2018(a) to October 31, 2019
	2021			2020
Net asset value, beginning of period		$  9.95			$  10.34			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.15			.09			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.00	(d)(g)		(.04	)(d)		.41
Net increase in net asset value from operations		.15			.05			.62
Less: Dividends and Distributions
Dividends from net investment income		(.21	)		(.31	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.21	)		(.44	)		(.28	)
Net asset value, end of period		$  9.89			$  9.95			$  10.34
Total Return
Total investment return based on net asset value(e)		1.46	%		.51	%		6.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$730			$730			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.47	%		1.48	%		1.49	%^
Expenses, before waivers/reimbursements(f)		2.19	%		2.57	%		4.02	%^
Net investment income(c)		1.53	%		.93	%		2.34	%^
Portfolio turnover rate**		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			336	%		181	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,						December 12, 2018(a) to October 31, 2019
	2021			2020
Net asset value, beginning of period		$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.25			.21			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.00	(d)(g)		(.08	)(d)		.41
Net increase in net asset value from operations		.25			.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.40	)		(.36	)
Distributions from net realized gain on investment transactions		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.31	)		(.53	)		(.36	)
Net asset value, end of period		$  9.89			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(e)		2.48	%		1.34	%		7.25	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$56,593			$41,681			$15,498
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.47	%		.48	%		.49	%^
Expenses, before waivers/reimbursements(f)		1.18	%		1.68	%		2.99	%^
Net investment income(c)		2.52	%		2.13	%		3.31	%^
Portfolio turnover rate**		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			336	%		181	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Net of expenses waived/reimbursed by the Adviser.

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

(e) 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.

(f) The expense ratios presented below exclude interest expense:

	Year Ended October 31,						December 12, 2018(a) to October 31, 2019
	2021			2020
Class A
Net of waivers/reimbursements		.65	%		.65	%		.65	%^
Before waivers/reimbursements		1.23	%		1.73	%		3.13	%^
Class C
Net of waivers/reimbursements		1.45	%		1.45	%		1.45	%^
Before waivers/reimbursements		2.18	%		2.54	%		3.97	%^
Advisor Class
Net of waivers/reimbursements		.45	%		.45	%		.45	%^
Before waivers/reimbursements		1.16	%		1.64	%		2.95	%^

(g) Amount is less than $.005.

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Short Duration Income Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Short Duration Income Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the two years in the period ended October 31, 2021 and the period from December 12, 2018 (commencement of operations) through October 31, 2019 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the two years in the period ended October 31, 2021and the period from December 12, 2018 (commencement of operations) through October 31, 2019, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2021. For foreign shareholders, 69.14% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Matthew S. Sheridan⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Short Duration Income Investment team. Messrs. DiMaggio, Distenfeld and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2018)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2018)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2018)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 66 (2018)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 69 (2018)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2018)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept.—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also co-Head of Fixed-Income.
Matthew S. Sheridan 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Short Duration Income Portfolio (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. The Adviser had not requested any reimbursements from the Fund since the Fund’s inception. 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 fiscal period ended December 31, 2018 and calendar year 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution 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 and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s unprofitability to the Adviser would be exacerbated without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-year period ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the 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 and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the

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Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant. The directors also compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

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

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures for a fund, in some cases pending purchases of underlying securities, that the advisory fee for the Fund would be for services in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the

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expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains a breakpoint that reduces the fee rate on assets above a specified level. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed the breakpoint in the future.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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AB SHORT DURATION INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SDI-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Sustainable Thematic Credit Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    1

ANNUAL REPORT

December 6, 2021

This report provides management’s discussion of fund performance for the AB Sustainable Thematic Credit Portfolio for the annual reporting period ended October 31, 2021.

The Fund’s investment objective is to maximize total return through current income and long-term capital appreciation.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	Since Inception1
AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO
Class A Shares		2.00%
Advisor Class Shares2		2.12%
Bloomberg US Corporate Bond Index		2.46%

1 Inception date: 5/10/2021.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg US Corporate Bond Index, for the period since the Fund’s inception on May 10, 2021, through October 31, 2021.

During the period since the Fund’s inception, all share classes underperformed the benchmark, before sales charges. Opportunistic allocation to eurozone credit, particularly in green bonds, was the largest detractor, relative to the benchmark, as the euro underperformed the US dollar over the period. Industry allocation also detracted, from off-benchmark exposure to sovereign bonds and an underweight to energy. Yield-curve positioning contributed to performance, as gains from an underweight to the 20- to 30-year part of the curve and an overweight to 10-year maturities contributed more than a loss from an underweight to the five-year part of the curve. Security selection also contributed due to gains within electric, banking, real estate investment trusts, telecommunications and consumer noncyclical that were greater than a loss in the basic industries sector. Issuer and security selection in the Climate theme contributed to performance, particularly within the Fund’s allocation to US dollar-denominated green bonds. While security selections within the Empowerment and Health themes were positive across a broad range of sustainable investment opportunities, these gains were offset by losses due to issuer selection across several sub-themes, including Financial Security & Inclusion, Information & Communication Technologies and Food Security & Clean Water.

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During the reporting period, the Fund utilized derivatives in the form of futures and currency forwards for hedging purposes, which had no material impact on absolute returns.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada, and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone, and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially commercial mortgage-backed securities. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

The Fund’s Senior Investment Management Team (the “Team”) seeks to maximize total return through investments that benefit society and the environment. The Team employs top-down and bottom-up investment processes with the goal of identifying securities that fit into sustainable investment themes, such as health, climate and empowerment. The Team’s approach to building a sustainable portfolio with attractive financial return potential has been to align with the United Nations Sustainable Development Goals (“SDGs”), which 193 nations have committed to advancing. The Team invests primarily in investment-grade corporate bonds from US issuers, but may also invest in non-US issuers and high-yield bonds.

INVESTMENT POLICIES

The Fund seeks to achieve its investment objective by investing primarily in fixed-income securities of corporate issuers whose business activities the Adviser believes position the issuer to benefit from certain environmentally or socially oriented sustainable investment themes that are broadly consistent with the United Nations SDGs. Examples of these themes include the advancement of health, climate and empowerment, but the themes may change over time based on the Adviser’s research. Under normal circumstances, at least 80% of the Fund’s net assets will be invested in fixed-income securities of corporate issuers that satisfy the Fund’s sustainability criteria.

(continued on next page)

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The Adviser employs a combination of “top-down” and “bottom-up” investment processes with the goal of identifying, based on its own analysis, the most attractive securities and issuers that fit into sustainable investment themes. The top-down approach seeks to identify the sustainable investment themes. In addition to this top-down approach, the Adviser uses a bottom-up analysis of individual bond issues, focusing on the use of proceeds, issuer fundamentals, valuation, and the issuer’s exposure to environmental, social and governance (“ESG”) factors. Eligible investments include securities of issuers that the Adviser believes will maximize total return while also contributing to positive societal impact aligned with one or more SDGs. The Adviser emphasizes positive selection criteria over broad-based negative screens (e.g., disqualifying business activities) in assessing an issuer’s exposure to ESG factors. The Fund also typically invests in “green bonds,” which are instruments the proceeds of which are specifically earmarked for climate or environmental projects.

The Fund may invest up to 20% of its net assets in securities rated below investment grade (“junk bonds”). The Fund may invest up to 30% of its net assets in securities denominated in currencies other than the US dollar. Foreign investments may include securities issued by emerging-market companies and governments. The Adviser expects under normal circumstances to hedge the majority of the Fund’s foreign currency exposure through the use of currency-related derivatives, although it is not required to do so.

The Fund expects to use derivatives, such as options, futures contracts, forwards and swaps. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may, for example, use interest rate futures contracts or swaps to manage the Fund’s average duration and may, as noted above, use currency-related derivatives to hedge foreign currency exposure. The Adviser may use derivatives to effectively leverage the Fund by creating aggregate market exposure significantly in excess of the Fund’s net assets. The Fund is “non-diversified”.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Corporate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Corporate Bond Index measures the investment-grade, fixed-rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by US and non-US industrial, utility and financial issuers. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock, bond or currency markets fluctuate. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), 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 of companies with ESG practices may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, “sustainability” is not a uniformly defined characteristic, and the Fund’s sustainability criteria may differ from those used by other funds. In addition, in evaluating an investment, the investment adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG factors relevant to a particular investment.

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

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (continued)

that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

Foreign (Non-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 involve more risk than investments in other foreign countries because the markets in emerging-market countries are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory, or other uncertainties.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Emerging-market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries.

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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

6    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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: 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.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

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DISCLOSURES AND RISKS (continued)

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. The Fund has been in operation only for a short period of time, and therefore has a very limited historical performance period. This limited performance period is unlikely to be representative of the performance the Fund will achieve over a longer period.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

5/10/2021¹ TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Sustainable Thematic Credit Portfolio Class A shares (from 5/10/2021¹ to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 5/10/2021.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						1.79%
Since Inception2		2.00%		-2.30%
ADVISOR CLASS SHARES3						2.12%
Since Inception2		2.12%		2.12%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.39% and 1.14% for Class A and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s total operating expense ratios, exclusive of expenses associated with acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense and extraordinary expenses, to 0.85% and 0.60% for Class A and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before May 3, 2022. Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s covered operating expenses to exceed the applicable expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Inception date: 5/10/2021.

3 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
Since Inception1		-2.24%
ADVISOR CLASS SHARES2
Since Inception1		2.15%

1 Inception date: 5/10/2021.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value 5/10/2021+		Ending Account Value 10/31/2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,020.00	$	4.12		0.85	%
Hypothetical**	$	1,000	$	1,019.90	$	4.12		0.85	%
Advisor Class
Actual	$	1,000	$	1,021.20	$	2.91		0.60	%
Hypothetical**	$	1,000	$	1,021.10	$	2.91		0.60	%

+ Commencement of operations.

* Expenses paid are based on the period from May 10, 2021 (commencement of distribution) and are equal to the Class’s annualized expense ratio, multiplied by 175/365 (to reflect the since inception period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $169.3

1 All data are as of October 31, 2021. 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 SUMMARY (continued)

October 31, 2021 (unaudited)

1 All data are as of October 31, 2021. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.7% or less in the following: Argentina, Belgium, India, Japan, Norway, Peru, Sweden, Switzerland and United Republic of Tanzania.

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PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 88.2%
Industrial – 44.5%
Basic – 2.9%
Arkema SA 0.125%, 10/14/2026(a)	EUR		200	$	230,894
Ecolab, Inc. 2.75%, 08/18/2055(a)	U.S.$		525		519,851
Inversiones CMPC SA 3.85%, 01/13/2030(a)			905		934,978
Sealed Air Corp. 1.573%, 10/15/2026(a)			1,485		1,460,285
Sociedad Quimica y Minera de Chile SA 4.25%, 01/22/2050(a)			660		710,861
Suzano Austria GmbH 2.50%, 09/15/2028			663		628,558
3.75%, 01/15/2031			490		488,050
					4,973,477
Capital Goods – 6.4%
CNH Industrial Capital LLC 1.45%, 07/15/2026			1,605		1,581,267
Emerson Electric Co. 2.625%, 02/15/2023			780		797,086
3.15%, 06/01/2025			715		760,937
Parker-Hannifin Corp. 4.20%, 11/21/2034			1,305		1,492,085
Republic Services, Inc. 1.75%, 02/15/2032			1,275		1,206,581
Siemens Financieringsmaatschappij NV 1.20%, 03/11/2026(a)			960		947,238
Trane Technologies Global Holding Co., Ltd. 5.75%, 06/15/2043			495		710,574
Trane Technologies Luxembourg Finance SA 3.50%, 03/21/2026			405		435,006
Waste Management, Inc. 1.50%, 03/15/2031			470		440,881
2.95%, 06/01/2041			710		733,362
Xylem, Inc./NY 1.95%, 01/30/2028			1,725		1,722,701
					10,827,718
Communications - Media – 1.4%
Charter Communications Operating LLC/Charter Communications Operating Capital 2.25%, 01/15/2029			450		442,000
6.834%, 10/23/2055			630		934,161
Tencent Holdings Ltd. 2.39%, 06/03/2030(a)			200		195,102

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Thomson Reuters Corp. 5.50%, 08/15/2035	U.S.$		570	$	736,794
					2,308,057
Communications - Telecommunications – 4.1%
AT&T, Inc. 4.30%, 12/15/2042			202		228,294
Corning, Inc. 4.70%, 03/15/2037			62		73,882
5.35%, 11/15/2048			820		1,136,837
Empresa Nacional de Telecomunicaciones SA 3.05%, 09/14/2032(a)			1,480		1,437,913
Telefonica Emisiones SA 5.213%, 03/08/2047			775		976,340
Verizon Communications, Inc. 2.85%, 09/03/2041			1,135		1,108,737
3.875%, 02/08/2029			835		930,380
Vodafone Group PLC 4.25%, 09/17/2050			930		1,081,767
					6,974,150
Consumer Cyclical - Automotive – 2.4%
Aptiv PLC 4.40%, 10/01/2046			180		215,278
Daimler AG 0.75%, 09/10/2030(a)	EUR		160		188,859
General Motors Co. 5.00%, 10/01/2028	U.S.$		260		298,872
5.95%, 04/01/2049			395		540,238
General Motors Financial Co., Inc. 2.70%, 06/10/2031			365		361,429
3.60%, 06/21/2030			721		766,504
3.85%, 01/05/2028			435		471,838
Lear Corp. 3.80%, 09/15/2027			1,060		1,157,462
					4,000,480
Consumer Cyclical - Other – 1.4%
DR Horton, Inc. 2.50%, 10/15/2024			1,355		1,410,452
Owens Corning 3.95%, 08/15/2029			845		942,429
					2,352,881
Consumer Cyclical - Retailers – 1.8%
Home Depot, Inc. (The) 1.50%, 09/15/2028			1,425		1,397,944

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lowe’s Cos., Inc. 3.70%, 04/15/2046	U.S.$		665	$	738,446
5.50%, 10/15/2035			660		847,939
					2,984,329
Consumer Non-Cyclical – 13.6%
Abbott Laboratories 4.75%, 11/30/2036			1,065		1,362,095
AbbVie, Inc. 4.875%, 11/14/2048			1,015		1,324,840
Amgen, Inc. 4.40%, 05/01/2045			805		971,129
AstraZeneca PLC 6.45%, 09/15/2037			445		661,112
Baxter International, Inc. 3.50%, 08/15/2046			1,405		1,541,420
Becton Dickinson and Co. 2.823%, 05/20/2030			1,130		1,174,830
Biogen, Inc. 3.15%, 05/01/2050			150		147,545
Bristol-Myers Squibb Co. 4.25%, 10/26/2049			465		584,916
5.25%, 08/15/2043			400		537,981
Cigna Corp. 2.375%, 03/15/2031			410		410,853
3.05%, 10/15/2027			820		874,248
4.80%, 08/15/2038			160		196,955
CVS Health Corp. 4.78%, 03/25/2038			900		1,102,282
Danaher Corp. 2.60%, 10/01/2050			225		219,223
4.375%, 09/15/2045			610		767,486
Eli Lilly & Co. 0.50%, 09/14/2033	EUR		1,200		1,362,121
Fresenius Medical Care US Finance III, Inc. 3.00%, 12/01/2031(a)	U.S.$		945		956,453
Gilead Sciences, Inc. 2.50%, 09/01/2023			1,545		1,593,595
GlaxoSmithKline Capital, Inc. 4.20%, 03/18/2043			165		202,419
HCA, Inc. 3.50%, 07/15/2051			425		431,642
5.50%, 06/15/2047			735		969,705
Koninklijke Philips NV 5.00%, 03/15/2042			725		932,083
Pfizer, Inc. 1.75%, 08/18/2031			695		675,996
4.125%, 12/15/2046			775		964,637

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Thermo Fisher Scientific, Inc. 2.80%, 10/15/2041	U.S.$		1,275	$	1,283,444
4.10%, 08/15/2047			800		991,728
Zoetis, Inc. 2.00%, 05/15/2030			755		741,404
					22,982,142
Energy – 0.1%
Contemporary Ruiding Development Ltd. 2.625%, 09/17/2030(a)			205		205,009
Services – 2.0%
IHS Markit Ltd. 4.25%, 05/01/2029			58		66,147
Mastercard, Inc. 3.85%, 03/26/2050			845		1,023,343
Moody’s Corp. 2.55%, 08/18/2060			1,125		1,014,261
2.75%, 08/19/2041			359		351,669
PayPal Holdings, Inc. 3.25%, 06/01/2050			900		974,984
					3,430,404
Technology – 8.4%
Autodesk, Inc. 2.40%, 12/15/2031			1,570		1,543,700
Broadridge Financial Solutions, Inc. 2.60%, 05/01/2031			200		201,398
CDW LLC/CDW Finance Corp. 4.125%, 05/01/2025			1,545		1,593,024
Cisco Systems, Inc./Delaware 5.50%, 01/15/2040			1,075		1,509,694
5.90%, 02/15/2039			50		72,376
HP, Inc. 6.00%, 09/15/2041			315		415,974
Intel Corp. 3.10%, 02/15/2060			1,580		1,588,538
International Business Machines Corp. 4.00%, 06/20/2042			625		720,961
4.25%, 05/15/2049			200		244,751
Lam Research Corp. 2.875%, 06/15/2050			1,220		1,244,656
Micron Technology, Inc. 2.703%, 04/15/2032			1,610		1,606,896
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.15%, 05/01/2027(a)			515		542,925
3.25%, 05/11/2041(a)			705		719,893
Oracle Corp. 3.60%, 04/01/2040			480		499,106

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Salesforce.com, Inc. 2.90%, 07/15/2051	U.S.$		642	$	660,036
Skyworks Solutions, Inc. 3.00%, 06/01/2031			1,080		1,091,269
					14,255,197
					75,293,844
Financial Institutions – 34.0%
Banking – 21.2%
ABN AMRO Bank NV 4.80%, 04/18/2026(a)			600		666,572
Banco Santander SA 2.749%, 12/03/2030			1,000		982,820
4.25%, 04/11/2027			400		442,385
5.179%, 11/19/2025			600		672,375
Bank of America Corp. 2.456%, 10/22/2025			535		552,957
2.572%, 10/20/2032			325		325,713
2.884%, 10/22/2030			470		486,102
3.194%, 07/23/2030			190		201,178
4.078%, 04/23/2040			835		966,192
Series JJ 5.125%, 06/20/2024(b)			425		448,321
Series Z 6.50%, 10/23/2024(b)			45		49,923
BNP Paribas SA
2.159%, 09/15/2029(a)			1,475		1,446,046
2.871%, 04/19/2032(a)			200		202,808
6.625%, 03/25/2024(a)(b)			200		216,317
6.75%, 03/14/2022(a)(b)			200		203,664
7.375%, 08/19/2025(a)(b)			470		540,516
BPCE SA 2.045%, 10/19/2027(a)			480		477,833
4.625%, 07/11/2024(a)			855		922,774
5.15%, 07/21/2024(a)			375		410,495
Citigroup, Inc. 2.904%, 11/03/2042			1,005		995,773
5.316%, 03/26/2041			410		539,696
Series Y 4.15%, 11/15/2026(b)			887		893,529
Cooperatieve Rabobank UA 3.75%, 07/21/2026			1,160		1,259,429
4.00%, 04/10/2029(a)			800		844,545
4.375%, 06/29/2027(a)(b)	EUR		200		254,068
Credit Agricole SA 0.125%, 12/09/2027			200		224,606
1.247%, 01/26/2027(a)	U.S.$		1,285		1,252,304

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Danske Bank A/S 1.549%, 09/10/2027(a)	U.S.$		1,425	$	1,397,231
DNB Bank ASA 6.50%, 03/26/2022(a)(b)			200		203,999
Goldman Sachs Group, Inc. (The) 1.948%, 10/21/2027			805		806,468
2.615%, 04/22/2032			410		411,162
3.691%, 06/05/2028			500		541,051
4.223%, 05/01/2029			350		391,582
4.411%, 04/23/2039			465		557,971
5.95%, 01/15/2027			230		274,014
ING Groep NV 1.40%, 07/01/2026(a)			950		943,162
2.727%, 04/01/2032			540		549,754
6.50%, 04/16/2025(b)			680		746,520
Intesa Sanpaolo SpA 3.875%, 01/12/2028(a)			460		490,709
Series XR
4.00%, 09/23/2029(a)			1,170		1,263,175
KBC Group NV 0.375%, 06/16/2027(a)	EUR		800		924,847
Lloyds Banking Group PLC 3.574%, 11/07/2028	U.S.$		310		332,343
4.65%, 03/24/2026			630		700,094
Mitsubishi UFJ Financial Group, Inc. 0.848%, 07/19/2029(a)	EUR		200		234,349
Morgan Stanley Series GMTN 4.35%, 09/08/2026	U.S.$		495		549,886
Series I 0.864%, 10/21/2025			835		826,195
Natwest Group PLC 2.359%, 05/22/2024			935		955,479
Santander Holdings USA, Inc. 4.50%, 07/17/2025			1,190		1,302,580
Societe Generale SA 2.889%, 06/09/2032(a)			1,480		1,475,240
Standard Chartered PLC 1.214%, 03/23/2025(a)			955		950,746
Svenska Handelsbanken AB 4.75%, 03/01/2031(a)(b)			1,000		1,046,205
UBS Group AG 5.125%, 07/29/2026(a)(b)			890		958,839
UniCredit SpA 2.569%, 09/22/2026(a)			625		627,570
					35,940,112

20    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 5.2%
Allianz SE 3.20%, 10/30/2027(a)(b)	U.S.$		1,400	$	1,354,609
American International Group, Inc. 8.175%, 05/15/2058			1,045		1,532,798
Assicurazioni Generali SpA 2.124%, 10/01/2030(a)	EUR		545		656,975
2.429%, 07/14/2031(a)			470		573,221
Centene Corp. 2.625%, 08/01/2031	U.S.$		708		697,228
Humana, Inc. 2.15%, 02/03/2032			635		614,879
4.50%, 04/01/2025			660		726,039
Kaiser Foundation Hospitals Series 2021 2.81%, 06/01/2041			200		202,554
Prudential Financial, Inc. 5.20%, 03/15/2044			1,150		1,225,755
Voya Financial, Inc. 5.65%, 05/15/2053			898		942,960
Zurich Finance Ireland Designated Activity Co. 3.00%, 04/19/2051(a)			200		197,715
					8,724,733
REITs – 7.6%
Alexandria Real Estate Equities, Inc. 2.00%, 05/18/2032			385		370,828
American Homes 4 Rent LP 3.375%, 07/15/2051			845		868,600
American Tower Corp. 2.95%, 01/15/2051			475		459,309
3.70%, 10/15/2049			510		557,273
3.80%, 08/15/2029			285		313,338
Boston Properties LP 4.50%, 12/01/2028			1,400		1,599,060
Digital Dutch Finco BV 1.00%, 01/15/2032(a)	EUR		800		892,996
Healthcare Trust of America Holdings LP 3.10%, 02/15/2030	U.S.$		1,325		1,372,703
Healthpeak Properties, Inc. 1.35%, 02/01/2027			677		663,971
3.50%, 07/15/2029			860		937,916
Prologis LP 1.25%, 10/15/2030			1,155		1,076,044
3.00%, 04/15/2050			240		250,344
SITE Centers Corp. 4.25%, 02/01/2026			453		486,896
Vornado Realty LP 2.15%, 06/01/2026			950		956,993

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Welltower, Inc. 2.05%, 01/15/2029	U.S.$		1,155	$	1,137,653
4.95%, 09/01/2048			765		1,005,558
					12,949,482
					57,614,327
Utility – 9.7%
Electric – 9.1%
Avangrid, Inc. 3.20%, 04/15/2025			1,515		1,604,157
Commonwealth Edison Co. 3.00%, 03/01/2050			205		211,647
Consolidated Edison Co. of New York, Inc. 4.50%, 05/15/2058			855		1,065,727
Series A 4.125%, 05/15/2049			155		183,303
Consorcio Transmantaro SA 4.70%, 04/16/2034(a)			890		982,226
EDP Finance BV 1.71%, 01/24/2028(a)			1,685		1,643,270
Enel Finance International NV 2.25%, 07/12/2031(a)			1,270		1,241,453
6.80%, 09/15/2037(a)			280		406,709
Engie SA 3.25%, 11/28/2024(a)(b)	EUR		200		248,691
Exelon Generation Co. LLC 6.25%, 10/01/2039	U.S.$		640		817,561
Florida Power & Light Co. 4.125%, 02/01/2042			85		102,770
5.69%, 03/01/2040			160		226,984
Iberdrola International BV Series NC9 1.825%, 08/09/2029(a)(b)	EUR		1,100		1,261,014
NextEra Energy Capital Holdings, Inc. 1.90%, 06/15/2028	U.S.$		897		887,612
2.25%, 06/01/2030			440		439,794
Niagara Mohawk Power Corp. 1.96%, 06/27/2030(a)			1,090		1,053,874
Orsted AS 2.25%, 11/24/3017(a)(b)	EUR		600		724,575
San Diego Gas & Electric Co. Series WWW 2.95%, 08/15/2051	U.S.$		1,275		1,296,754
Southern California Edison Co. 4.00%, 04/01/2047			670		746,155
Series H 3.65%, 06/01/2051			260		280,227
					15,424,503

22    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Other Utility – 0.6%
American Water Capital Corp. 3.25%, 06/01/2051	U.S.$		735	$	777,912
3.45%, 05/01/2050			195		212,584
					990,496
					16,414,999
Total Corporates - Investment Grade (cost $149,773,047)					149,323,170
CORPORATES - NON-INVESTMENT GRADE – 5.1%
Industrial – 3.8%
Basic – 0.1%
Olympus Water US Holding Corp. 3.875%, 10/01/2028	EUR		173		199,354
Capital Goods – 0.8%
Clean Harbors, Inc. 4.875%, 07/15/2027(a)	U.S.$		95		99,258
GFL Environmental, Inc. 4.375%, 08/15/2029(a)			251		248,595
5.125%, 12/15/2026(a)			445		465,990
Paprec Holding 3.50%, 07/01/2028	EUR		435		502,235
					1,316,078
Communications - Telecommunications – 0.2%
Telefonica Europe BV 2.376%, 02/12/2029(a)(b)			300		333,461
Consumer Cyclical - Automotive – 1.1%
Dana, Inc. 4.25%, 09/01/2030	U.S.$		935		945,959
Faurecia SE 2.375%, 06/15/2029(a)	EUR		775		887,228
					1,833,187
Consumer Non-Cyclical – 1.1%
DaVita, Inc. 4.625%, 06/01/2030(a)	U.S.$		470		472,686
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)			985		950,161
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			455		471,976
					1,894,823

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 0.4%
Renewable Energy Group, Inc. 5.875%, 06/01/2028(a)	U.S.$		690	$	725,576
Services – 0.1%
Square, Inc. 3.50%, 06/01/2031(a)			200		205,082
					6,507,561
Financial Institutions – 1.3%
Banking – 1.3%
Banco Santander SA 7.50%, 02/08/2024(a)(b)			600		649,574
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			730		783,122
Societe Generale SA 8.00%, 09/29/2025(a)(b)			645		752,202
					2,184,898
Total Corporates - Non-Investment Grade (cost $8,858,986)					8,692,459
EMERGING MARKETS - CORPORATE BONDS – 2.4%
Industrial – 2.0%
Basic – 1.1%
Klabin Austria GmbH 3.20%, 01/12/2031(a)			2,040		1,867,340
Communications - Telecommunications – 0.2%
HTA Group Ltd./Mauritius 7.00%, 12/18/2025(a)			430		447,549
Services – 0.7%
MercadoLibre, Inc. 3.125%, 01/14/2031			990		933,331
StoneCo Ltd. 3.95%, 06/16/2028(a)			226		202,308
					1,135,639
					3,450,528
Financial Institutions – 0.4%
Banking – 0.4%
IndusInd Bank Ltd./Gift City 3.875%, 04/15/2022(a)			200		200,787
Itau Unibanco Holding SA/Cayman Island 3.875%, 04/15/2031(a)			480		461,400
					662,187
Total Emerging Markets - Corporate Bonds (cost $4,332,523)					4,112,715

24    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - SOVEREIGN BONDS – 0.6%
Chile – 0.6%
Chile Government International Bond 2.55%, 01/27/2032 (cost $947,865)	U.S.$		935	$	924,072
QUASI-SOVEREIGNS – 0.2%
Quasi-Sovereign Bonds – 0.2%
Chile – 0.2%
Empresa de Transporte de Pasajeros Metro SA 4.70%, 05/07/2050(a) (cost $311,186)			275		320,169
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.1%
United States – 0.1%
Metropolitan Transportation Authority Series 2020-C 5.175%, 11/15/2049 (cost $80,612)			65		88,625
		Shares
SHORT-TERM INVESTMENTS – 3.7%
Investment Companies – 3.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(c)(d)(e) (cost $5,564,641)			5,564,641		5,564,641
		Principal Amount (000)
Time Deposits – 0.4%
Citibank, London (0.79)%, 11/01/2021 (cost $681,278)	EUR		589		681,278
Total Short-Term Investments (cost $6,245,919)					6,245,919
Total Investments – 100.3% (cost $170,550,138)					169,707,129
Other assets less liabilities – (0.3)%					(448,395	)
Net Assets – 100.0%				$	169,258,734

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note C)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. Long Bond (CBT) Futures		12		December 2021	$	1,930,125	$	(20,063	)
U.S. T-Note 5 Yr (CBT) Futures		32		December 2021		3,896,000		(50,992	)
U.S. Ultra Bond (CBT) Futures		16		December 2021		3,142,500		33,703
Sold Contracts
Euro-Bund Futures		5		December 2021		971,734		23,964
U.S. 10 Yr Ultra Futures		29		December 2021		4,205,906		62,305
							$	48,917

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation/ (Depreciation)
Citibank, NA		EUR	646		USD	761		11/08/2021	$	14,144
HSBC Bank USA		EUR	597		USD	705		11/08/2021		13,912
JPMorgan Chase Bank, NA		USD	1,610		EUR	1,389		11/08/2021		(4,075	)
Morgan Stanley Capital Services LLC		EUR	7,893		USD	9,374		11/08/2021		248,128
Morgan Stanley Capital Services LLC		EUR	1,336		USD	1,545		11/08/2021		(335	)
Societe Generale		EUR	111		USD	131		11/08/2021		2,321
									$	274,095

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $48,786,067 or 28.8% 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.

(c) 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.

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

(e) Affiliated investments.

Currency Abbreviations:

EUR – Euro

USD – United States Dollar

Glossary:

CBT – Chicago Board of Trade

REIT – Real Estate Investment Trust

See notes to financial statements.

26    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $164,985,497)	$	164,142,488
Affiliated issuers (cost $5,564,641)		5,564,641
Cash		6
Cash collateral due from broker		140,817
Unaffiliated interest receivable		1,326,628
Receivable for capital stock sold		614,280
Unrealized appreciation on forward currency exchange contracts		278,505
Deferred offering cost		67,176
Receivable for variation margin on futures		17,830
Affiliated dividends receivable		39
Total assets		172,152,410
Liabilities
Due to Custodian (includes foreign currency overdraft of $312 with a cost of $313)		312
Payable for investment securities purchased		2,637,996
Advisory fee payable		95,290
Dividends payable		41,632
Payable for capital stock redeemed		6,617
Offering expenses payable		6,000
Unrealized depreciation on forward currency exchange contracts		4,410
Transfer Agent fee payable		3,000
Directors’ fee payable		1,655
Distribution fee payable		15
Accrued expenses and other liabilities		96,749
Total liabilities		2,893,676
Net Assets	$	169,258,734
Composition of Net Assets
Capital stock, at par	$	16,724
Additional paid-in capital		169,551,837
Accumulated loss		(309,827	)
	$	169,258,734

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	74,294		7,340	$	10.12	*
Advisor	$	169,184,440		16,716,286	$	10.12

* The maximum offering price per share for Class A shares was $10.57, which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    27

STATEMENT OF OPERATIONS

Period from May 10, 2021^(a) to October 31, 2021

Investment Income
Interest (net of foreign taxes withheld of $1,050)	$	1,222,629
Dividends
Affiliated issuers		267		$	1,222,896
Expenses
Advisory fee (see Note B)		241,036
Transfer agency—Class A		3
Transfer agency—Advisor Class		10,970
Distribution fee—Class A		28
Amortization of offering expenses		61,197
Administrative		53,700
Audit and tax		46,438
Custody and accounting		25,596
Registration fees		22,837
Legal		13,348
Printing		9,130
Directors’ fees		6,618
Miscellaneous		7,167
Total expenses		498,068
Less: expenses waived and reimbursed by the Adviser (see Note B)		(178,068	)
Net expenses					320,000
Net investment income					902,896
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions					63,544
Forward currency exchange contracts					183,485
Futures					83,578
Foreign currency transactions					(47,506	)
Net change in unrealized appreciation/depreciation on:
Investments					(843,009	)
Forward currency exchange contracts					274,095
Futures					48,917
Foreign currency denominated assets and liabilities					(4,183	)
Net loss on investment and foreign currency transactions					(241,079	)
Net Increase in Net Assets from Operations				$	661,817

(a) Commencement of operations.

See notes to financial statements.

28    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	May 10, 2021(a) to October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	902,896
Net realized gain on investment and foreign currency transactions		283,101
Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities		(524,180	)
Net increase in net assets from operations		661,817
Distributions to Shareholders
Class A		(187	)
Advisor Class		(1,005,775	)
Capital Stock Transactions
Net increase		169,602,879
Total increase		169,258,734
Net Assets
Beginning of period		– 0	–
End of period	$	169,258,734

(a) Commencement of operations.

See notes to financial statements.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    29

NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Sustainable Thematic Credit Portfolio (the “Fund”), a non-diversified portfolio. The Fund commenced operations on May 10, 2021. The Fund has authorized the issuance of Class A, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class C, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued as of October, 31, 2021. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 10 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Company’s Board of Directors (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

30    ^|    AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by 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.,

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    31

NOTES TO FINANCIAL STATEMENTS (continued)

Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

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

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

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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, 2021:

Investments in Securities

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Investment Grade

$

– 0

–

$

149,323,170

$

– 0

–

$

149,323,170

Corporates – Non-Investment Grade

– 0

–

8,692,459

– 0

–

8,692,459

Emerging Markets – Corporate Bonds

– 0

–

4,112,715

– 0

–

4,112,715

Governments – Sovereign Bonds

– 0

–

924,072

– 0

–

924,072

Quasi-Sovereigns

– 0

–

320,169

– 0

–

320,169

Local Governments – US Municipal Bonds

– 0

–

88,625

– 0

–

88,625

Short-Term Investments:

Investment Companies

5,564,641

– 0

–

– 0

–

5,564,641

Time Deposits

– 0

–

681,278

– 0

–

681,278

Total Investments in Securities

5,564,641

164,142,488

– 0

–

169,707,129

Other Financial Instruments*:

Assets

Futures

119,972

– 0

–

– 0

–

119,972

†

Forward Currency Exchange Contracts

– 0

–

278,505

– 0

–

278,505

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities	Level 1			Level 2			Level 3			Total
Liabilities
Futures	$	(71,055	)	$	– 0	–	$	– 0	–	$	(71,055	)†
Forward Currency Exchange Contracts		– 0	–		(4,410	)		– 0	–		(4,410	)
Total	$	5,613,558		$	164,416,583		$	– 0	–	$	170,030,141

* 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.

† 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. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 the current tax year and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

8. Offering Expenses

Offering expenses of $128,373 were deferred and amortized on a straight line basis over a one year period starting from May 10, 2021 (commencement of operations).

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the next $2.5 billion and .35% in excess of $5 billion of the Fund’s

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NOTES TO FINANCIAL STATEMENTS (continued)

average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to reimburse its fees and bear certain expenses to the extent necessary to limit total operating (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .85% and .60% of the daily average net assets for Class A and Advisor Class, respectively. For the period ended October 31, 2021, such reimbursement waivers amounted to $122,942. The Expense Caps may not be terminated by the Adviser before May 3, 2022. Any fees waived and expenses borne by the Adviser through May 10, 2022 are subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waiver that is subject to repayment amounted to $122,942 for the fiscal period ended October 31, 2021. In any case, no repayment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentages set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the period ended October 31, 2021, the Adviser voluntarily agreed to waive such fees in the amount to $53,700.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $9,000 for the period ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $175 from the sale of Class A shares and received no contingent deferred sales charges imposed upon redemptions by shareholders of Class A shares, for the period ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the

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NOTES TO FINANCIAL STATEMENTS (continued)

Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the period ended October 31, 2021, such waiver amounted to $1,426.

A summary of the Fund’s transactions in AB mutual funds for the period ended October 31, 2021 is as follows:

Fund	Market Value 5/10/21* (000)			Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	– 0	–	$	88,335	$	82,770	$	5,565	$	0	**

* Commencement of operations.

** Amount is less than $500.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares. There are no distribution and servicing fees on the Advisor Class. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the period ended October 31, 2021, were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	190,396,805	$	25,531,558
U.S. government securities		8,939,017		8,942,400

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NOTES TO FINANCIAL STATEMENTS (continued)

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	170,647,622
Gross unrealized appreciation	$	1,550,900
Gross unrealized depreciation		(2,491,393	)
Net unrealized depreciation	$	(940,493	)

1. Derivative Financial Instruments

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

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

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the period ended October 31, 2021, the Fund held forward currency exchange contracts for hedging purposes.

• 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

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NOTES TO FINANCIAL STATEMENTS (continued)

or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

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

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

During the period ended October 31, 2021, the Fund held futures 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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

During the period ended October 31, 2021, 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	$	119,972	*	Receivable/Payable for variation margin on futures	$	71,055	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		278,505		Unrealized depreciation on forward currency exchange contracts		4,410
Total		$	398,477			$	75,465

* 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 on futures	$	83,578	$	48,917
Foreign currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation/ depreciation on forward currency exchange contracts		183,485		274,095
Total		$	267,063	$	323,012

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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 period ended October 31, 2021:

Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	520,670	(a)
Average principal amount of sale contracts	$	9,345,684
Futures:
Average notional amount of buy contracts	$	5,364,837
Average notional amount of sale contracts	$	3,100,093

(a) Positions were open for four months during the reporting 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.

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, 2021. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citibank, NA	$	14,144	$	– 0	–	$	– 0	–	$	– 0	–	$	14,144
HSBC Bank USA		13,912		– 0	–		– 0	–		– 0	–		13,912
Morgan Stanley Capital Services LLC		248,128		(335	)		– 0	–		– 0	–		247,793
Societe Generale		2,321		– 0	–		– 0	–		– 0	–		2,321
Total	$	278,505	$	(335	)	$	– 0	–	$	– 0	–	$	278,170	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
JP Morgan Chase Bank, NA	$	4,075	$	– 0	–	$	– 0	–	$	– 0	–	$	4,075
Morgan Stanley Capital Services LLC		335		(335	)		– 0	–		– 0	–		– 0	–
Total	$	4,410	$	(335	)	$	– 0	–	$	– 0	–	$	4,075	^

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

2. Currency Transactions

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

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares			Amount
	May 10, 2021* to October 31, 2021			May 10, 2021* to October 31, 2021
Class A
Shares sold		7,329		$	74,978
Shares issued in reinvestment of dividends		11			107
Net increase		7,340		$	75,085
Advisor Class
Shares sold		19,139,077		$	194,101,830
Shares issued in reinvestment of dividends		78,767			803,778
Shares redeemed		(2,501,558	)		(25,377,814	)
Net increase		16,716,286		$	169,527,794

* Commencement of operations.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the stock, bond or currency markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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ESG Risk—Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non- investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities of companies with ESG practices may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, “sustainability” is not a uniformly defined characteristic, and the Fund’s sustainability criteria may differ from those used by other funds. In addition, in evaluating an investment, the investment adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG factors relevant to a particular investment.

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

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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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. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

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

Emerging-Market Risk—Investments in emerging market countries may involve more risk than investments in other foreign countries because the markets in emerging market countries are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory, or other uncertainties.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Emerging market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling

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NOTES TO FINANCIAL STATEMENTS (continued)

such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemption of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk—The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also

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NOTES TO FINANCIAL STATEMENTS (continued)

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, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the period ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the period ended October 31, 2021 was as follows:

	2021
Distributions paid from:
Ordinary income	$	1,005,962
Total taxable distributions paid	$	1,005,962

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	596,984
Undistributed capital gains		79,497
Unrealized appreciation/(depreciation)		(944,676	)(a)
Total accumulated earnings/(deficit)	$	(268,195	)(b)

(a) 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 deferral of losses on wash sales, and the tax treatment of callable bonds.

(b) 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 October 31, 2021, the Fund did not have any capital loss carryforwards.

During the current fiscal period, permanent differences primarily due to the tax treatment of organizational costs resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    47

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  10.00
Income From Investment Operations
Net investment income(b)(c)		.07
Net realized and unrealized gain on investment and foreign currency transactions		.13
Net increase in net asset value from operations		.20
Less: Dividends
Dividends from net investment income		(.08	)
Total dividends and distributions		(.08	)
Net asset value, end of period		$  10.12
Total Return
Total investment return based on net asset value(d)		2.00	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$74
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.85	%
Expenses, before waivers/reimbursements(e)		1.14	%
Net investment income(c)(e)		1.47	%
Portfolio turnover rate		31	%

See footnote summary on page 49.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  10.00
Income From Investment Operations
Net investment income(b)(c)		.08
Net realized and unrealized gain on investment and foreign currency transactions		.13
Net increase in net asset value from operations		.21
Less: Dividends
Dividends from net investment income		(.09	)
Total dividends and distributions		(.09	)
Net asset value, end of period		$  10.12
Total Return
Total investment return based on net asset value(d)		2.12	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$169,185
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.60	%
Expenses, before waivers/reimbursements(e)		.93	%
Net investment income(c)(e)		1.69	%
Portfolio turnover rate		31	%

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Net of expenses waived/reimbursed by the Adviser.

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

(e) Annualized.

See notes to financial statements.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    49

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Sustainable Thematic Credit Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Sustainable Thematic Credit Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statements of operations and changes in net assets and the financial highlights for the period from May 10, 2021 (commencement of operations) through October 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, and the results of its operations, the changes in its net assets and its financial highlights for the period from May 10, 2021 (commencement of operations) through October 31, 2021, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable period ended October 31, 2021. For foreign shareholders, 44.06% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President Salima Lamdouar⁽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. 501 Commerce Street Nashville, TN 37203   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672   Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Sustainable Thematic Credit Team. Mr. Distenfeld and Mses. Lamdouar and Wong are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    53

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (1992)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semiconductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semiconductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of the Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies since (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019), Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995) where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975- 1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officers of the Fund

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Gershon M. Distenfeld 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head of Fixed-Income.
Salima Lamdouar 34	Vice President	Vice President of the Adviser, with which she has been associated since prior to 2016.
Tiffanie Wong 36	Vice President	Senior Vice President of the Adviser, with which she has been associated since prior to 2016. She is also Director of Investment Grade Credit.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800)-227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions

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have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the Company’s Advisory Agreement with the Adviser in respect of AB Sustainable Credit Thematic Portfolio (the “Fund”) for an initial two-year period at a meeting held by video conference on February 2-3, 2021 (the “Meeting”).

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

The directors considered their knowledge of the nature and quality of the services to be 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 AB Funds.

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 proposed 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 proposed advisory fee, were fair and reasonable in light of the services to be performed, expenses to be 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 to be Provided

The directors considered the scope and quality of services to be provided by the Adviser under the Advisory Agreement, including the quality of the

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investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the AB Funds. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements will be subject to the directors’ approval on a quarterly basis and, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology to be used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services to be provided to the Fund under the Advisory Agreement.

Costs of Services to be Provided and Profitability

Because the Fund had not yet commenced operations, the directors were unable to consider historical information about the profitability of the Fund. However, the Adviser agreed to provide the directors with profitability information in connection with future proposed continuances of the Advisory Agreement. They also considered the costs to be borne by the Adviser in providing services to the Fund and that the Fund was unlikely to be profitable to the Adviser unless it achieves a material level of net assets.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their proposed relationships with the Fund, including, but not limited to, benefits relating to 12b-1 fees and sales charges to be received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees to be paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s future profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

Since the Fund had not yet commenced operations, no performance or other historical information for the Fund was available. Based on the Adviser’s written and oral presentations regarding the proposed management of the Fund and their general knowledge and confidence in the

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    65

Adviser’s expertise in managing mutual funds, the directors concluded that they were satisfied that the Adviser was capable of providing high quality Fund management services to the Fund.

Advisory Fees and Other Expenses

The directors considered the proposed advisory fee rate payable by the Fund to the Adviser and information prepared by an independent service provider (the “15(c) service provider”), concerning advisory fee rates payable by other funds in the same category as the Fund, based on the Fund’s projected net assets of $250 million. 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 paid by other funds. The directors considered the Fund’s proposed contractual effective advisory fee rate against a peer group median and noted that it was above the median. The directors recognized that the Adviser’s total compensation from the Fund pursuant to the Advisory Agreement would be increased by amounts paid pursuant to the expense reimbursement provision in the Advisory Agreement, and that the impact of such expense reimbursement would depend on the size of the Fund and the extent to which the Adviser requests reimbursements pursuant to this provision. Taking into account the projected administrative expense reimbursement, the directors noted that the Adviser’s total rate of compensation was also expected to be above the peer group median.

The directors also considered that the Adviser’s fee schedule for an offshore fund utilizing investment strategies similar to those of the Fund provided for a higher fee rate than that proposed for the Fund.

In connection with their review of the Fund’s proposed advisory fee, the directors also considered the projected total expense ratio of the Class A shares of the Fund in comparison to a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”) selected by the 15(c) service provider. The directors also considered the Adviser’s proposed expense cap for the Fund for a one year period. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view the projected expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s projected expense ratio was acceptable.

Economies of Scale

The directors noted that the proposed advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an

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independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

STC-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Tax-Aware Fixed Income Opportunities Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    1

ANNUAL REPORT

December 8, 2021

This report provides management’s discussion of fund performance for the AB Tax-Aware Fixed Income Opportunities Portfolio for the annual reporting period ended October 31, 2021.

The investment objective of the Fund is to seek to maximize after-tax return and income.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO
Class A Shares		0.92%		9.02%
Class C Shares		0.54%		8.22%
Advisor Class Shares1		1.04%		9.20%
Bloomberg Municipal Bond Index		0.01%		2.64%

1 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Municipal Bond Index, for the six- and 12-month periods ended October 31, 2021.

All share classes of the Fund outperformed the benchmark during both periods, before sales charges. During the 12-month period, the Fund’s overweight to municipal credit contributed, relative to the benchmark. Security selection within the state general obligation sector contributed, while selection in multi-family housing detracted. An overweight to the long end of the yield curve detracted.

For the six-month period, the Fund’s overweight to municipal credit contributed. Security selection in private higher education contributed, while selection in multi-family housing detracted. An overweight to the long end of the yield curve detracted.

Additionally, the Fund’s inflation hedges in tax-efficient Consumer Price Index (“CPI”) swaps were additive to relative performance against the backdrop of inflationary fears. Five-year inflation break-even rates increased 29 basis points during the six-month period and 129 basis points during the 12-month period, and were marked at 2.89% at month-end.

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The Fund utilized derivatives in the form of credit default swaps for hedging and investment purposes, which detracted from absolute performance for the 12-month period and had an immaterial impact on performance for the six-month period. Interest rate swaps were utilized for hedging purposes and had an immaterial impact on performance for the 12-month period and detracted for the six-month period. CPI swaps were utilized for hedging purposes and added over both periods.

MARKET REVIEW AND INVESTMENT STRATEGY

Yields have risen so far in 2021, particularly late in the reporting period, as investors have begun to digest the implications of the US Federal Reserve (the “Fed”) tapering of its asset purchase program and the likelihood of short-term interest-rate hikes next year. Even with the expected change in policy from the Fed, municipals continued to perform well over both the six- and 12-month time periods ending October 31, 2021. Heavy investor demand has been a key driver of relative outperformance versus other investment-grade fixed-income sectors. Industry-wide flows into municipal bond funds were positive in 76 of the last 77 weeks of the period. Through October, investors added $92 billion into muni funds this year, just a few billion shy of the calendar-year record set back in 2019.

Additionally, strengthening credit fundamentals and attractive credit spreads caused excess demand for municipal credit. BBB and high-yield rated municipal indices outperformed more highly rated bonds significantly as credit spreads compressed. Toward the end of the period, the market began to experience some modest spread widening in certain idiosyncratic issuers and sectors. The Fund’s Senior Investment Management Team (the “Team”) views this spread widening as a reflection of spreads being too tight in certain sectors and not reflective of weakening fundamentals.

The Team continues to seek investments in attractive after-tax returns such as municipal and taxable fixed-income and selective below- investment-grade bonds. The Team seeks to manage interest-rate exposure by focusing on lower-rated municipal and corporate bonds.

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

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decline. As of October 31, 2021, 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 2.85% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund pursues its objective by investing principally in a national portfolio of both municipal and taxable fixed-income securities. The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund also invests, under normal circumstances, at least 65% of its total assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers. The income earned and distributed to shareholders on non-municipal securities would not be exempt from federal income tax. The Fund may invest in fixed-income securities rated below investment grade (commonly known as “junk bonds”), although such securities are not expected to be the Fund’s primary focus.

The Adviser selects securities for the Fund based on a variety of factors, including credit quality, maturity, diversification benefits, and the relative expected after-tax returns of taxable and municipal securities (considering federal tax rates and without regard to state and local income taxes). As the objective is to increase the after-tax return of the Fund, an investor in the Fund may incur a tax liability that will generally be greater than the same investor would have in a fund investing exclusively in municipal securities, and that will be higher if the investor is in a higher tax bracket. In addition, the tax implications of the Fund’s trading activity, such as realizing taxable gains, are considered in making purchase and sale decisions for the Fund. The Fund may invest in fixed-income securities of any maturity from short- to long-term.

The Fund may also invest in forward commitments; zero-coupon municipal securities and variable-, floating- and inverse-floating-rate municipal securities.

The Fund may use derivatives, such as swaps, options, futures contracts and forwards, to achieve its investment strategies. For example, the Fund may enter into tender option bonds and credit default and interest rate swaps relating to municipal and taxable fixed-income securities or securities indices. Derivatives may provide more efficient and economical exposure to fixed-income securities markets than direct investments.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg 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 bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that, including public health crises (including the occurrence of a contagious disease or illness), affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Municipal Market Risk: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, 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, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or

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DISCLOSURES AND RISKS (continued)

earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

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.

The Fund invests, from time to time, 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. Like many US states and municipalities, Puerto Rico experienced a significant downturn during the 2007-2009 recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment, including as a result of the COVID-19 pandemic. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility.

Tax Risk: 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

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DISCLOSURES AND RISKS (continued)

tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

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

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations

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DISCLOSURES AND RISKS (continued)

to the Fund. 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.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 3% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to their different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

12/11/2013¹ TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Tax-Aware Fixed Income Opportunities Portfolio Class A shares (from 12/11/2013¹ to 10/31/2021) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/11/2013.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1		Taxable Equivalent Yields2
CLASS A SHARES						0.69%		1.06%
1 Year		9.02%		5.80%
5 Years		3.78%		3.14%
Since Inception3		4.14%		3.74%
CLASS C SHARES						-0.02%		-0.03%
1 Year		8.22%		7.22%
5 Years		3.01%		3.01%
Since Inception3		3.37%		3.37%
ADVISOR CLASS SHARES4						0.96%		1.48%
1 Year		9.20%		9.20%
5 Years		4.04%		4.04%
Since Inception3		4.41%		4.41%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.26%, 2.00% and 0.99% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs, to 0.75%, 1.50% and 0.50% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Taxable equivalent yields are based on SEC yields and a 35% marginal federal income tax rate and maximum state taxes where applicable.

3 Inception date: 12/11/2013.

4 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		6.32%
5 Years		2.99%
Since Inception1		3.80%
CLASS C SHARES
1 Year		7.75%
5 Years		2.85%
Since Inception1		3.44%
ADVISOR CLASS SHARES2
1 Year		9.84%
5 Years		3.88%
Since Inception1		4.47%

1 Inception date: 12/11/2013.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

The 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.

12    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,009.20	$	3.85		0.76	%
Hypothetical**	$	1,000	$	1,021.37	$	3.87		0.76	%
Class C
Actual	$	1,000	$	1,005.40	$	7.63		1.51	%
Hypothetical**	$	1,000	$	1,017.59	$	7.68		1.51	%
Advisor Class
Actual	$	1,000	$	1,010.40	$	2.58		0.51	%
Hypothetical**	$	1,000	$	1,022.63	$	2.60		0.51	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    13

PORTFOLIO SUMMARY

October 31, 2021 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $197.3

1 All data are as of October 31, 2021. The Fund’s quality rating and state breakdowns are 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,

(footnotes continued on next page)

14    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO SUMMARY (continued)

October 31, 2021 (unaudited)

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.

2 “Other” represents less than 2.5% in 27 different states, American Samoa, District of Columbia and Guam.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS

October 31, 2021

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 108.5%
Long-Term Municipal Bonds – 83.0%
Alabama – 1.4%
County of Jefferson AL Sewer Revenue Series 2013-D 6.00%, 10/01/2042	$	110	$	125,643
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2021 4.00%, 02/01/2037		1,610		1,892,295
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019-A 5.25%, 05/01/2044(a)		595		683,855
				2,701,793
American Samoa – 0.1%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2018 7.125%, 09/01/2038(a)		135		174,378
Arizona – 2.7%
Arizona Industrial Development Authority (Arizona Industrial Development Authority) Series 2019-2 3.625%, 05/20/2033		198		219,691
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 7.75%, 07/01/2050(a)		200		236,382
Arizona Industrial Development Authority (Phoenix Children’s Hospital Obligated Group) Series 2021 4.00%, 02/01/2040(b)		1,000		1,177,641
5.00%, 02/01/2032(b)		1,105		1,459,897
Arizona Industrial Development Authority (Pinecrest Academy of Nevada) Series 2020-A 4.00%, 07/15/2050(a)		100		105,530
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.222%, 07/01/2030		1,000		990,237
City of Tempe AZ (City of Tempe AZ COP) Series 2021 2.521%, 07/01/2036		1,000		982,968

16    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona Obligated Group) Series 2014 5.00%, 07/01/2044	$	100	$	107,223
				5,279,569
California – 5.4%
Alameda Corridor Transportation Authority Series 2016-B 5.00%, 10/01/2037		175		203,909
California Community Housing Agency (California Community Housing Agency Aster Apartments) Series 2021-A 4.00%, 02/01/2056(a)		100		105,363
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021 4.00%, 02/01/2056(a)		250		263,834
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 3.00%, 08/01/2056(a)		300		278,231
4.00%, 08/01/2046(a)		250		260,868
California Health Facilities Financing Authority (Lucile Salter Packard Children’s Hospital at Stanford Obligated Group) Series 2022-A 4.00%, 05/15/2051(b)		2,500		2,827,025
California Housing Finance Series 2019-2 4.00%, 03/20/2033		155		182,036
Series 2021-2 0.823%, 03/25/2035		1,000		67,079
California Municipal Finance Authority (CHF-Riverside II LLC) Series 2019 5.00%, 05/15/2040		250		301,301
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/2045(a)		250		260,311
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2018-A 5.50%, 12/01/2058(a)		250		303,321

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Los Angeles Department of Airports Series 2020-C 5.00%, 05/15/2039	$	1,000	$	1,243,182
CMFA Special Finance Agency VIII Elan Huntington Beach Series 2021 3.00%, 08/01/2056(a)		250		229,694
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2056(a)		400		420,735
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 4.00%, 10/01/2056(a)		200		205,690
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(a)		100		91,690
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Pasadena Portfolio) Series 2021 4.00%, 12/01/2056(a)		400		412,733
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A2 4.00%, 07/01/2056(a)		350		361,328
Golden State Tobacco Securitization Corp. Series 2018-A 5.00%, 06/01/2047		1,305		1,336,258
University of California Series 2022-S 5.00%, 05/15/2036(b)		1,000		1,319,774
				10,674,362
Colorado – 3.9%
City & County of Denver Co. (United Airlines, Inc.) Series 2017 5.00%, 10/01/2032		615		648,926

18    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Health Facilities Authority (Christian Living Neighborhoods Obligated Group) Series 2021 4.00%, 01/01/2042	$	250	$	271,098
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015-B 5.00%, 09/01/2030		200		226,903
Copper Ridge Metropolitan District Series 2019 5.00%, 12/01/2039		500		533,511
Douglas County Housing Partnership (Bridgewater Castle Rock ALF LLC) Series 2021 5.375%, 01/01/2041(a)		250		247,767
E-470 Public Highway Authority Series 2021-B 0.384% (SOFR + 0.35%), 09/01/2039(c)		1,000		1,002,134
Pueblo Urban Renewal Authority Series 2021-B Zero Coupon, 12/01/2025(a)		260		225,495
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2028		380		437,043
AGM Series 2020 5.00%, 12/01/2050		100		122,771
Woodmen Heights Metropolitan District No. 1 Series 2012-B 7.30%, 12/15/2041 (Pre-refunded/ETM)		4,000		4,031,904
				7,747,552
Connecticut – 1.0%
City of New Haven CT Series 2018-A 5.50%, 08/01/2038		615		754,169
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2037(b)		1,000		1,145,439
				1,899,608
District of Columbia – 0.2%
District of Columbia (Friendship Public Charter School, Inc.) Series 2016-A 5.00%, 06/01/2041		100		111,902

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
District of Columbia Tobacco Settlement Financing Corp. Series 2006 Zero Coupon, 06/15/2055	$	2,500	$	234,743
				346,645
Florida – 4.7%
Bexley Community Development District Series 2016 4.875%, 05/01/2047		100		106,576
Capital Trust Agency, Inc. (Educational Growth Fund LLC) Series 2021 5.00%, 07/01/2056(a)		100		112,467
Citizens Property Insurance, Inc. Series 2015-A 5.00%, 06/01/2022		310		311,197
City of Tampa FL (State of Florida Cigarette Tax Revenue) Series 2020-A Zero Coupon, 09/01/2053		1,000		299,684
County of Broward FL Airport System Revenue Series 2019-A 4.00%, 10/01/2044		1,000		1,128,311
County of Lake FL (Waterman Communities, Inc.) Series 2020 3.375%, 08/15/2026		100		100,456
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2028		780		897,638
County of Miami-Dade FL Aviation Revenue Series 2015-A 5.00%, 10/01/2031		265		304,492
County of Miami-Dade Seaport Department AGM Series 2021-A 4.00%, 10/01/2040		2,000		2,337,156
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2036		230		150,330
Florida Development Finance Corp. (Drs Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.) Series 2021 4.00%, 07/01/2051(a)		100		103,900
North Broward Hospital District Series 2017-B 5.00%, 01/01/2037-01/01/2048		270		313,595

20    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Palm Beach County Educational Facilities Authority (Palm Beach Atlantic University Obligated Group) Series 2021 4.00%, 10/01/2041	$	1,000	$	1,128,124
Pinellas County Industrial Development Authority Series 2019 5.00%, 07/01/2039		505		570,353
Town of Davie FL (Nova Southeastern University, Inc.) Series 2018 5.00%, 04/01/2048		655		776,732
Village Community Development District No. 13 Series 2019 3.55%, 05/01/2039		620		657,152
				9,298,163
Georgia – 0.2%
City of Atlanta GA Department of Aviation Series 2012-A 5.00%, 01/01/2031		310		312,434
Municipal Electric Authority of Georgia Series 2019 5.00%, 01/01/2038		100		120,923
				433,357
Guam – 1.3%
Antonio B Won Pat International Airport Authority Series 2021-A 4.46%, 10/01/2043		1,000		1,037,415
Territory of Guam Series 2019 5.00%, 11/15/2031		210		240,999
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2021-F 5.00%, 01/01/2029		1,000		1,224,661
				2,503,075
Hawaii – 1.7%
City & County of Honolulu HI Series 2022-A 5.00%, 11/01/2025(b)		3,000		3,380,491
Illinois – 7.1%
Chicago Board of Education Series 2012-A 5.00%, 12/01/2042		240		249,020

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019-A 5.00%, 12/01/2029-12/01/2030	$	200	$	247,331
Series 2019-B 5.00%, 12/01/2033		100		122,156
Chicago O’Hare International Airport Series 2015-C 5.00%, 01/01/2034		335		376,095
Series 2017-B 5.00%, 01/01/2035		725		864,310
Illinois Finance Authority Series 2015 5.25%, 05/15/2050 (Pre-refunded/ETM)		100		116,277
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 4.00%, 09/01/2035		100		113,342
Illinois Finance Authority (Park Place of Elmhurst Obligated Group) Series 2021 5.125%, 05/15/2060		77		74,218
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015-C 5.00%, 08/15/2035		250		286,670
Illinois Finance Authority (University of Chicago (The)) Series 2021-A 5.00%, 10/01/2037-10/01/2038		3,000		4,403,389
Metropolitan Pier & Exposition Authority Series 2015-B 5.00%, 12/15/2045		600		674,448
Series 2020 5.00%, 06/15/2050		640		755,353
Series 2022 4.00%, 12/15/2042(b)		1,000		1,124,726
State of Illinois Series 2010 7.35%, 07/01/2035		250		317,574
Series 2013 5.50%, 07/01/2025		270		292,151
Series 2016 5.00%, 02/01/2024		375		411,629
Series 2017-D 5.00%, 11/01/2026-11/01/2027		930		1,112,541
Series 2018-A 5.00%, 10/01/2027		1,000		1,197,351

22    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019-B 5.00%, 11/01/2031	$	1,000	$	1,224,856
				13,963,437
Indiana – 0.5%
Indiana Finance Authority Series 2013-A 5.00%, 07/01/2040 (Pre-refunded/ETM)		100		107,464
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022-A 5.00%, 04/01/2029(b)		100		120,430
Indiana Finance Authority (Marquette Manor) Series 2015-A 5.00%, 03/01/2030		190		209,370
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		165		165,293
Indiana Finance Authority (RES Polyflow Indiana LLC) Series 2019 7.00%, 03/01/2039(a)		350		326,720
Indiana Housing & Community Development Authority (Vita of Marion LLC) Series 2021-B 4.00%, 04/01/2024		100		100,937
				1,030,214
Iowa – 0.2%
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018-A 5.00%, 05/15/2048		325		367,479
Kentucky – 1.2%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 4.00%, 02/01/2034		385		437,833
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017-B 5.00%, 08/15/2037		175		208,180

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Economic Development Finance Authority (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2039	$	160	$	183,100
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/2042		65		65,535
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017-A 5.00%, 06/01/2037		425		494,933
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		600		679,155
Louisville and Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/2033		225		266,439
				2,335,175
Louisiana – 1.5%
City of New Orleans LA Water System Revenue Series 2014 5.00%, 12/01/2034 (Pre-refunded/ETM)		100		113,934
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/2036		675		806,353
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014-A 7.50%, 07/01/2023(d)(e)		250		2
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) Series 2019 5.00%, 07/01/2059		1,335		1,584,841
New Orleans Aviation Board Series 2017-B 5.00%, 01/01/2043		215		252,568

24    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Parish of St. James LA (NuStar Logistics LP) Series 2020-2 6.35%, 07/01/2040(a)	$	100	$	131,008
				2,888,706
Maine – 0.1%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 01/01/2025(a)		100		111,215
Maryland – 4.5%
City of Baltimore MD (East Baltimore Research Park Project) Series 2017-A 5.00%, 09/01/2038		150		167,976
Maryland Economic Development Corp. (Air Cargo Obligated Group) Series 2019 4.00%, 07/01/2044		600		679,268
Maryland Economic Development Corp. (Bowie State University) Series 2020 5.00%, 07/01/2055		1,000		1,179,506
Maryland Health & Higher Educational Facilities Authority (Adventist Healthcare Obligated Group) Series 2021 5.00%, 01/01/2036		500		635,009
Maryland Stadium Authority (Baltimore City Public School Construction Financing Fund) Series 2020 5.00%, 05/01/2050		1,000		1,447,218
State of Maryland Series 2022-D 4.00%, 08/01/2028(b)		1,000		1,167,187
State of Maryland Department of Transportation Series 2022-2 5.00%, 12/01/2023(b)		3,500		3,657,312
				8,933,476
Massachusetts – 1.9%
Commonwealth of Massachusetts CIFGNA Series 2007-A 0.654% (LIBOR 3 Month + 0.57%), 05/01/2037(c)		1,300		1,283,683

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Commonwealth of Massachusetts Transportation Fund Revenue Series 2021 5.00%, 06/01/2041	$	1,000	$	1,294,657
Massachusetts Development Finance Agency (Merrimack College) Series 2014 5.125%, 07/01/2044		620		680,124
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017 8.00%, 12/01/2022(f)		325		316,065
Series 2017-A 7.75%, 12/01/2044(f)		140		134,895
				3,709,424
Michigan – 1.4%
City of Detroit MI Series 2014-B 4.00%, 04/01/2044		245		233,660
Series 2018 5.00%, 04/01/2038		75		86,869
Series 2021-B 3.644%, 04/01/2034		200		199,149
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012-A 5.00%, 07/01/2022		115		118,583
AGM Series 2006-D 0.688% (LIBOR 3 Month + 0.60%), 07/01/2032(c)		1,000		1,001,154
Michigan Finance Authority (Michigan Finance Authority Tobacco Settlement Revenue) Series 2020-A 3.267%, 06/01/2039		1,000		1,064,532
Series 2020-B Zero Coupon, 06/01/2065		350		44,470
Michigan Tobacco Settlement Finance Authority (Tobacco Settlement Financing Corp./MI) Series 2008-C Zero Coupon, 06/01/2058		1,450		73,680
				2,822,097

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Minnesota – 0.4%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL Series 1998 0.105%, 08/01/2028(g)	$	200	$	200,000
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) Series 2019 5.00%, 08/01/2049		105		112,082
Duluth Economic Development Authority (Benedictine Health System Obligated Group) Series 2021 4.00%, 07/01/2036-07/01/2041		200		213,600
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Minnesota Math & Science Academy) Series 2021 4.00%, 06/01/2051-06/01/2056(a)		200		194,510
				720,192
Mississippi – 0.7%
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 4.00%, 10/01/2035(a)		1,000		1,071,056
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		250		292,094
				1,363,150
Missouri – 0.2%
Kansas City Industrial Development Authority Series 2019 5.00%, 07/01/2040(a)		190		193,590
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2021-A 5.00%, 08/15/2056		165		189,707
				383,297
Nebraska – 0.1%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2012 5.00%, 09/01/2042		100		103,848

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Nevada – 1.1%
Clark County School District Series 2021-A 4.00%, 06/15/2034	$	1,000	$	1,203,491
State of Nevada Department of Business & Industry Series 2021 0.25%, 01/01/2050 (Pre-refunded/ETM)(a)		1,000		999,983
				2,203,474
New Hampshire – 0.2%
New Hampshire Business Finance Authority Series 2020-1 4.125%, 01/20/2034		210		247,889
New Hampshire Health and Education Facilities Authority Act Series 2012 5.00%, 01/01/2042 (Pre-refunded/ETM)		115		115,908
				363,797
New Jersey – 4.6%
Essex County Improvement Authority (Friends of TEAM Academy Charter School Obligated Group) Series 2021 4.00%, 06/15/2051		1,100		1,224,170
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2014-P 5.00%, 06/15/2029		200		221,822
Series 2019 5.25%, 04/01/2026		1,000		1,190,799
New Jersey Economic Development Authority (United Airlines, Inc.) Series 2012 5.25%, 09/15/2029		210		218,103
New Jersey Educational Facilities Authority (Stevens Institute of Technology) Series 2020-A 5.00%, 07/01/2045		100		121,477
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017-A 5.00%, 07/01/2036		280		336,320
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		550		645,372

28    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2018-A 5.00%, 12/15/2035	$	340	$	414,316
Series 2022-A 5.00%, 06/15/2033(b)		1,000		1,277,387
New Jersey Turnpike Authority Series 2017-B 5.00%, 01/01/2032		540		663,831
Series 2020-D 5.00%, 01/01/2028		1,350		1,592,435
Tobacco Settlement Financing Corp./NJ Series 2018-B 5.00%, 06/01/2046		1,045		1,202,252
				9,108,284
New York – 6.6%
Build NYC Resource Corp. (Integration Charter Schools) Series 2021 5.00%, 06/01/2056(a)		300		330,566
Metropolitan Transportation Authority Series 2020-A 5.00%, 11/15/2045		1,000		1,262,654
Series 2020-C 5.00%, 11/15/2050		1,000		1,188,334
Series 2020-E 4.00%, 11/15/2026		1,155		1,321,288
Series 2021-D 0.363% (SOFR + 0.33%), 11/01/2035(c)		950		947,432
Monroe County Industrial Development Corp./NY (St. Ann’s of Greater Rochester Obligated Group) Series 2019 5.00%, 01/01/2040		550		615,406
New York City Transitional Finance Authority Building Aid Revenue (New York City Transitional Finance Authority Building Aid Revenue State Lease) Series 2018-S 5.00%, 07/15/2032		865		1,073,149
New York Counties Tobacco Trust V Series 2005 Zero Coupon, 06/01/2050		350		58,012

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York State Dormitory Authority (Garnet Health Medical Center Obligated Group) Series 2017 5.00%, 12/01/2034(a)	$	200	$	237,641
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028		425		468,491
New York State Thruway Authority (New York State Thruway Authority Ded Tax) Series 2012-A 5.00%, 04/01/2026		365		372,220
New York State Thruway Authority (State of New York Pers Income Tax) Series 2021-A 4.00%, 03/15/2045		2,000		2,309,394
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 4.00%, 01/01/2036		275		305,934
Series 2020 4.00%, 10/01/2030		300		347,708
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2041		150		166,274
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021-A 2.917%, 05/15/2040		500		502,055
4.00%, 05/15/2046		1,000		1,159,312
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 09/15/2037		120		119,343
Westchester Cnty Hlth Care Corp. NY 2.875%, 06/30/2026		250		250,027
Western Regional Off-Track Betting Corp. Series 2021 4.125%, 12/01/2041(a)		100		97,658
				13,132,898
North Carolina – 0.9%
Fayetteville State University Series 2023 5.00%, 04/01/2038(a)(b)		1,045		1,260,481

30    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
North Carolina Turnpike Authority Series 2017 5.00%, 01/01/2032	$	500	$	583,736
				1,844,217
North Dakota – 0.1%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(a)		100		100,316
Ohio – 3.2%
Buckeye Tobacco Settlement Financing Authority Series 2020-B 5.00%, 06/01/2055		2,035		2,283,553
City of Akron OH (City of Akron OH Income Tax) Series 2012-A 5.00%, 12/01/2031		445		457,321
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2047		175		207,694
Cleveland-Cuyahoga County Port Authority (Cleveland-Cuyahoga County Port Authority Flats East Bank TIF District) Series 2021 4.00%, 12/01/2055(a)		500		519,238
County of Cuyahoga OH (County of Cuyahoga OH Lease) Series 2014 5.00%, 12/01/2028		365		400,035
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2042		205		238,649
County of Marion OH (United Church Homes, Inc. Obligated Group) Series 2019 5.125%, 12/01/2049		100		108,156
County of Montgomery OH (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(a)		100		49,762
Jefferson County Port Authority/OH (JSW Steel USA Ohio, Inc.) Series 2021 3.50%, 12/01/2051(a)		1,000		1,009,306

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio Air Quality Development Authority (Energy Harbor Nuclear Generation LLC) Series 2009-A 4.375%, 06/01/2033	$	100	$	101,523
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) Series 2019 3.25%, 09/01/2029		580		618,358
Ohio Air Quality Development Authority (Pratt Paper OH, Inc.) Series 2017 4.25%, 01/15/2038(a)		185		210,088
Ohio Water Development Authority Water Pollution Control Loan Fund (Energy Harbor Nuclear Generation LLC) Series 2016-A 4.375%, 06/01/2033		140		142,132
				6,345,815
Oklahoma – 1.0%
Norman Regional Hospital Authority (Norman Regional Hospital Authority Obligated Group) Series 2019 3.25%, 09/01/2039		505		544,063
Oklahoma Development Finance Authority (Oklahoma City University Obligated Group) Series 2019 5.00%, 08/01/2049		1,180		1,372,065
				1,916,128
Other – 0.2%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(a)		375		395,547
Pennsylvania – 5.4%
Allegheny County Airport Authority Series 2021-A 4.00%, 01/01/2037		2,000		2,322,479
Beaver County Industrial Development Authority (Energy Harbor Nuclear Generation LLC) Series 2016-A 4.375%, 01/01/2035		130		132,110
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 5.00%, 07/01/2054		250		301,166

32    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Lancaster County Hospital Authority/PA (St. Anne’s Retirement Community Obligated Group) Series 2020 5.00%, 03/01/2040	$	100	$	112,704
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 07/01/2035		100		106,394
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019 3.25%, 08/01/2039(a)		510		521,446
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/2038		100		116,536
Pennsylvania Higher Educational Facilities Authority (University of Pennsylvania Health System Obligated Group (The)) Series 2022 4.00%, 08/15/2042(b)		2,000		2,291,669
5.00%, 08/15/2033(b)		1,050		1,353,002
Pennsylvania Turnpike Commission Series 2017-B 5.00%, 06/01/2036		200		238,352
Series 2021-B 5.00%, 12/01/2035		1,000		1,297,671
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2054		100		117,538
School District of Philadelphia (The) Series 2019-A 5.00%, 09/01/2044(i)		1,350		1,663,874
				10,574,941
Puerto Rico – 3.2%
Children’s Trust Fund Series 2008-A Zero Coupon, 05/15/2057		2,000		141,200
Series 2008-B Zero Coupon, 05/15/2057		5,000		275,453

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Commonwealth of Puerto Rico Series 2006-A 5.25%, 07/01/2023(e)(h)	$	30	$	29,663
Series 2011-A 5.75%, 07/01/2041(e)(h)		40		38,850
Series 2012-A 5.75%, 07/01/2028(e)(h)		100		93,625
Series 2014-A 8.00%, 07/01/2035(e)(h)		135		118,800
GDB Debt Recovery Authority of Puerto Rico Series 2018 7.50%, 08/20/2040		128		120,252
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series 2008-A 6.125%, 07/01/2024		90		97,995
Series 2012-A 5.00%, 07/01/2022-07/01/2033		215		221,582
5.125%, 07/01/2037		25		25,786
5.25%, 07/01/2029-07/01/2042		200		206,454
5.50%, 07/01/2028		75		77,544
5.75%, 07/01/2037		50		51,779
6.00%, 07/01/2047		50		51,852
Puerto Rico Electric Power Authority Series 2007-T 5.00%, 07/01/2032-07/01/2037(e)(h)		330		322,574
Series 2008-W 5.00%, 07/01/2028		245		239,487
5.375%, 07/01/2024		125		122,812
Series 2010-A 5.25%, 07/01/2029-07/01/2030(e)(h)		115		112,844
Series 2010-C 5.00%, 07/01/2024(e)(h)		25		24,438
5.25%, 07/01/2028(e)(h)		175		171,719
Series 2010-D 5.00%, 07/01/2021(e)(h)		15		14,700
Series 2010-X 5.25%, 07/01/2040(e)(h)		340		333,625
5.75%, 07/01/2036(e)(h)		125		123,437
Series 2010-Z 5.25%, 07/01/2024		40		39,250
Series 2012-A 5.00%, 07/01/2029-07/01/2042(e)(h)		60		58,650
AGM Series 2007-V 5.25%, 07/01/2031		375		413,891

34    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Highway & Transportation Authority AGC Series 2005-L 5.25%, 07/01/2041	$	125	$	136,025
AGC Series 2007-N 5.25%, 07/01/2036		110		118,501
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) Series 2000 6.625%, 06/01/2026		390		402,675
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024-07/01/2046		2,153		723,103
Series 2019-A 4.329%, 07/01/2040		440		482,888
5.00%, 07/01/2058		867		978,798
				6,370,252
South Carolina – 1.5%
Richland County School District No. 2/SC Series 2015-A 5.00%, 02/01/2022		2,000		2,023,927
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.50%, 06/01/2051(a)		100		102,572
South Carolina Public Service Authority Series 2014-A 5.00%, 12/01/2049		220		243,369
Series 2014-C 5.00%, 12/01/2046		325		365,564
Series 2016-A 5.00%, 12/01/2036		265		310,342
				3,045,774
Tennessee – 0.5%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(a)		370		359,067
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2037-08/01/2038		130		149,150

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trevecca Nazarene University) Series 2021 4.00%, 10/01/2051	$	250	$	270,174
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(a)		135		67,178
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2016 5.00%, 07/01/2035		215		253,716
				1,099,285
Texas – 4.5%
Abilene Convention Center Hotel Development Corp. (City of Abilene TX Abilene Convention Center Revenue) Series 2021-A 4.00%, 10/01/2050		250		270,598
Series 2021-B 5.00%, 10/01/2050(a)		100		104,764
Austin Convention Enterprises, Inc. Series 2017-A 5.00%, 01/01/2034		500		556,090
Baytown Municipal Development District (Baytown Municipal Development District Hotel Occupancy Tax) Series 2021 5.00%, 10/01/2050(a)		100		106,753
Central Texas Regional Mobility Authority Series 2013 5.00%, 01/01/2042 (Pre-refunded/ETM)		100		105,392
Series 2021-C 5.00%, 01/01/2027		1,000		1,163,457
City of Houston TX (City of Houston TX Hotel Occupancy Tax) Series 2015 5.00%, 09/01/2031		160		176,858
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2046		1,000		1,250,775

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2046	$	1,000	$	1,123,145
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2014-A 5.00%, 12/01/2025		580		661,332
Dallas County Flood Control District No. 1 Series 2015 5.00%, 04/01/2028(a)		100		102,755
Love Field Airport Modernization Corp. (Dallas Love Field) Series 2015 5.00%, 11/01/2032		500		577,059
Mission Economic Development Corp. (Natgasoline LLC) Series 2018 4.625%, 10/01/2031(a)		450		473,228
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group) Series 2020 5.00%, 01/01/2055		100		109,566
North Texas Tollway Authority (North Texas Tollway System) Series 2015-B 5.00%, 01/01/2034		250		283,430
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 4.00%, 01/01/2050(a)		100		102,902
Series 2021 2.625%, 01/01/2031(a)		300		297,937
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025		675		540,000
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way) Series 2020-A 5.75%, 12/01/2054		456		485,840

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tarrant County Cultural Education Facilities Finance Corp. (Trinity Terrace Project) Series 2014-A1 5.00%, 10/01/2044	$	100	$	108,627
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC) Series 2019 5.00%, 06/30/2058		235		279,146
				8,879,654
Utah – 0.8%
City of Salt Lake City UT Airport Revenue Series 2018-A 5.00%, 07/01/2048(i)		1,000		1,189,881
Military Installation Development Authority Series 2021-A 4.00%, 06/01/2052		500		481,188
				1,671,069
Virginia – 0.1%
Tobacco Settlement Financing Corp./VA Series 2007-B1 5.00%, 06/01/2047		165		165,918
Washington – 2.7%
City of Seattle WA Municipal Light & Power Revenue Series 2021-A 4.00%, 07/01/2034		1,000		1,223,135
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 01/01/2044		280		321,426
Port of Seattle WA Series 2015-C 5.00%, 04/01/2033		510		568,871
Series 2021 4.00%, 08/01/2040		1,000		1,165,054
Washington Health Care Facilities Authority (Seattle Cancer Care Alliance Obligated Group) Series 2020 4.00%, 09/01/2050		1,000		1,126,503

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington State Convention Center Public Facilities District (Washington State Convention Center Public Facilities District Hotel Occupancy Tax) Series 2021 4.00%, 07/01/2031	$	235	$	268,051
Washington State Housing Finance Commission Series 2012-A 6.75%, 10/01/2047 (Pre-refunded/ETM)(a)		100		105,709
Series 2021-1, Class A 3.50%, 12/20/2035		283		324,935
Series 2021-1, Class X 0.725%, 12/20/2035(j)		994		60,343
Washington State Housing Finance Commission (Rockwood Retirement Communities) Series 2014-A 7.375%, 01/01/2044(a)		100		109,979
				5,274,006
West Virginia – 0.4%
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035		881		903,783
Wisconsin – 3.6%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(a)		200		192,665
UMA Education, Inc. Series 2019 5.00%, 10/01/2025-10/01/2029(a)		330		388,384
Wisconsin Health & Educational Facilities Authority (St. Camillus Health System Obligated Group) Series 2019 5.00%, 11/01/2054		100		110,075
Wisconsin Health & Educational Facilities Authority (St. John’s Communities, Inc. Obligated Group) Series 2022 4.00%, 09/15/2036-09/15/2045(b)		2,190		2,277,383
Wisconsin Public Finance Authority (21st Century Public Academy) Series 2020 3.75%, 06/01/2030(a)		350		360,622

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (Catholic Bishop of Chicago(The)) Series 2021 5.75%, 07/25/2041(a)	$	1,000	$	1,058,857
Wisconsin Public Finance Authority (Celanese US Holdings LLC) Series 2016-C 4.30%, 11/01/2030		100		110,845
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.) Series 2017-A 5.25%, 05/15/2042(a)		130		141,348
Wisconsin Public Finance Authority (McLemore Resort Manager LLC) Series 2021 4.50%, 06/01/2056(a)		150		148,905
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021-A 4.00%, 06/01/2056(b)		500		479,202
Series 2022 4.00%, 06/01/2049(b)		100		93,984
Wisconsin Public Finance Authority (Southeastern Regional Medical Center Obligated Group) Series 2022 4.00%, 02/01/2034(b)		1,300		1,481,268
Wisconsin Public Finance Authority (Washoe Barton Medical Clinic) Series 2021 4.00%, 12/01/2051		300		338,965
				7,182,503
Total Long-Term Municipal Bonds (cost $159,940,101)				163,748,364
SHORT-TERM MUNICIPAL NOTES – 25.5%
California – 1.0%
County of San Bernardino CA (WLP Green Valley Apartments LLC) Series 1999 0.06%, 05/15/2029(k)		2,000		2,000,000
District of Columbia – 1.2%
District of Columbia (Carnegie Endowment for International Peace) Series 2010 0.05%, 11/01/2045(k)		1,075		1,075,000

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
District of Columbia (Georgetown University (The)) Series 2016 0.05%, 04/01/2041(k)	$	270	$	270,000
District of Columbia (MedStar Health Obligated Group) Series 2012-A 0.06%, 08/15/2038(k)		1,075		1,075,000
				2,420,000
Florida – 5.5%
City of Gainesville FL (Gainesville Jewish Student Foundation, Inc.) Series 2021 0.05%, 05/01/2033(k)		1,250		1,250,000
County of Palm Beach FL (Raymond F Kravis Center for the Performing Arts, Inc. (The)) Series 2002 0.07%, 07/01/2032(k)		1,250		1,250,000
Loudon Industrial Development Board (Tate & Lyle Ingredients Americas LLC) Series 1991 0.06%, 06/01/2023(k)		500		500,000
Loudoun County Economic Development Authority (Jack Kent Cooke Foundation) Series 2004 0.06%, 06/01/2034(k)		1,750		1,750,000
Sarasota County Public Hospital District (Sarasota County Public Hospital District Obligated Group) Series 2008 0.06%, 07/01/2037(k)		1,000		1,000,000
School Board of Miami-Dade County (The) Series 2021 2.50%, 02/23/2022		5,000		5,036,402
				10,786,402
Hawaii – 0.6%
Hawaii Housing Finance & Development Corp. (Ho’olehua Housing LP) Series 2008 0.05%, 12/01/2041(k)		1,255		1,255,000
Kentucky – 1.1%
Louisville and Jefferson County Metropolitan Sewer District Series 2021 3.00%, 10/14/2022		2,000		2,053,121

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Louisiana – 1.4%
Louisiana Public Facilities Authority (ANF Partners #1 LP) Series 2006 0.05%, 04/01/2036(k)	$	1,150	$	1,150,000
Louisiana Public Facilities Authority (CHRISTUS Health Obligated Group) Series 2009 0.05%, 07/01/2047(k)		1,655		1,655,000
				2,805,000
Maryland – 0.5%
Maryland Health & Higher Educational Facilities Authority (University of Maryland Medical System Obligated Group) Series 2007 0.05%, 07/01/2034(k)		1,000		1,000,000
Nevada – 1.5%
County of Clark Department of Aviation Series 2008-D 0.06%, 07/01/2029(k)		3,000		3,000,000
New Jersey – 0.8%
New Jersey Health Care Facilities Financing Authority (AHS Hospital Corp.) Series 2008-B 0.05%, 07/01/2036(k)		500		500,000
Series 2008-C 0.05%, 07/01/2036(k)		1,000		1,000,000
				1,500,000
New York – 4.0%
City of New York NY Series 2016 0.06%, 08/01/2044(k)		1,500		1,500,000
New York City Health and Hospitals Corp. Series 2008-E 0.06%, 02/15/2026(k)		2,035		2,035,000
New York City Housing Development Corp. (2 Gold LLC) Series 2008-A 0.05%, 04/15/2036(k)		900		900,000
New York City Municipal Water Finance Authority Series 2015-F 0.03%, 06/15/2035(k)		1,000		1,000,000

42    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York State Housing Finance Agency (42nd and 10th Associates LLC) Series 2012 0.07%, 11/01/2041(k)	$	2,450	$	2,450,000
				7,885,000
Ohio – 0.9%
Columbus Regional Airport Authority Series 2005 0.05%, 07/01/2035(k)		1,665		1,665,000
Rhode Island – 0.6%
Rhode Island Health and Educational Building Corp. (Roger Williams University) Series 2012-B 0.05%, 11/15/2038(k)		1,215		1,215,000
South Carolina – 2.1%
Lexington County School District No. 3/SC Series 2021 4.00%, 08/24/2022		4,000		4,127,279
Texas – 2.7%
City of Houston TX Series 2021 2.00%, 06/30/2022		4,000		4,049,135
City of Houston TX Combined Utility System Revenue Series 2016 0.05%, 05/15/2034(k)		1,000		1,000,000
Newark Higher Education Finance Corp. (TLC Academy) Series 2021-B 3.25%, 08/15/2022		335		334,807
				5,383,942
Vermont – 1.6%
Vermont Educational & Health Buildings Financing Agency (University of Vermont Health Network Obligated Group) Series 2008 0.06%, 12/01/2030(k)		2,500		2,500,000
Washington State Housing Finance Commission (Bitter Lake Village Associates 2 LP) Series 2009 0.05%, 12/15/2044(k)		690		690,000
				3,190,000

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Total Short-Term Municipal Notes (cost $50,288,133)			$	50,285,744
Total Municipal Obligations (cost $210,228,234)				214,034,108
CORPORATES - INVESTMENT GRADE – 1.9%
Financial Institutions – 1.0%
Banking – 0.4%
Bank of America Corp. Series JJ 5.125%, 06/20/2024(l)	$	100		105,487
Bank of New York Mellon Corp. (The) Series H 3.70%, 03/20/2026(l)		100		104,326
Comerica, Inc. 5.625%, 07/01/2025(l)		100		110,986
Fifth Third Bancorp Series L 4.50%, 09/30/2025(l)		100		107,977
Huntington Bancshares, Inc./OH Series F 5.625%, 07/15/2030(l)		100		116,481
JPMorgan Chase & Co. Series Q 5.15%, 05/01/2023(l)		50		51,271
Truist Financial Corp. Series Q 5.10%, 03/01/2030(l)		100		112,663
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(l)		100		101,919
				811,110
Finance – 0.3%
Air Lease Corp. 3.625%, 04/01/2027		600		637,836
Insurance – 0.3%
Centene Corp. 4.25%, 12/15/2027		232		243,027
Prudential Financial, Inc. 5.625%, 06/15/2043		215		226,221
				469,248
				1,918,194
Industrial – 0.9%
Basic – 0.1%
Yamana Gold, Inc. 2.63%, 08/15/2031(a)		290		282,857

44    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Entertainment – 0.5%
YMCA of Greater New York 2.303%, 08/01/2026	$	1,000	$	1,010,250
Consumer Cyclical - Other – 0.3%
Las Vegas Sands Corp. 3.20%, 08/08/2024		600		613,404
				1,906,511
Total Corporates - Investment Grade (cost $3,825,682)				3,824,705
CORPORATES - NON-INVESTMENT GRADE – 1.2%
Industrial – 1.2%
Communications - Media – 0.1%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(a)		309		299,909
Communications - Telecommunications – 0.1%
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(e)(h)		275		138,820
Consumer Cyclical - Entertainment – 0.5%
Carnival Corp. 4.00%, 08/01/2028(a)		400		399,744
Wild Rivers Water Park 8.50%, 11/01/2051		500		499,144
				898,888
Consumer Non-Cyclical – 0.3%
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(a)		350		348,317
Newell Brands, Inc. 4.70%, 04/01/2026		173		189,506
4.875%, 06/01/2025		18		19,708
				557,531
Transportation - Airlines – 0.2%
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)		155		162,542
5.75%, 04/20/2029(a)		165		177,596
United Airlines, Inc. 4.375%, 04/15/2026(a)		150		155,313
				495,451
Total Corporates - Non-Investment Grade (cost $2,469,649)				2,390,599

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 1.0%
Risk Share Floating Rate – 1.0%
Bellemeade Re Ltd. Series 2019-3A, Class M1B 1.689% (LIBOR 1 Month + 1.60%), 07/25/2029(a)(c)	$	252	$	252,133
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2019-DNA3, Class M2 2.139% (LIBOR 1 Month + 2.05%), 07/25/2049(a)(c)		36		36,087
Series 2016-DNA4, Class M3 3.889% (LIBOR 1 Month + 3.80%), 03/25/2029(c)		225		232,471
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 4.489% (LIBOR 1 Month + 4.40%), 01/25/2024(c)		107		110,412
Series 2014-C03, Class 2M2 2.989% (LIBOR 1 Month + 2.90%), 07/25/2024(c)		56		57,122
Series 2015-C02, Class 1M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(c)		54		54,899
Series 2016-C01, Class 1M2 6.839% (LIBOR 1 Month + 6.75%), 08/25/2028(c)		163		172,109
Series 2016-C02, Class 1M2 6.089% (LIBOR 1 Month + 6.00%), 09/25/2028(c)		222		232,462
Series 2016-C04, Class 1M2 4.339% (LIBOR 1 Month + 4.25%), 01/25/2029(c)		114		117,902
Series 2017-C01, Class 1M2 3.639% (LIBOR 1 Month + 3.55%), 07/25/2029(c)		169		174,110
Series 2017-C02, Class 2M2 3.739% (LIBOR 1 Month + 3.65%), 09/25/2029(c)		182		188,273
Series 2017-C04, Class 2M2 2.939% (LIBOR 1 Month + 2.85%), 11/25/2029(c)		235		240,843
Total Collateralized Mortgage Obligations (cost $1,815,261)				1,868,823
ASSET-BACKED SECURITIES – 0.4%
Autos - Fixed Rate – 0.1%
CPS Auto Receivables Trust Series 2021-B, Class C 1.23%, 03/15/2027(a)		250		248,780
Other ABS - Fixed Rate – 0.3%
Affirm Asset Securitization Trust Series 2021-Z1, Class A 1.07%, 08/15/2025(a)		309		308,932

46    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(a)	$	199	$	203,451
				512,383
Total Asset-Backed Securities (cost $757,866)				761,163
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.3%
Non-Agency Floating Rate CMBS – 0.3%
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 1.091% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(c)		250		249,536
DBWF Mortgage Trust Series 2018-GLKS, Class A 1.11% (LIBOR 1 Month + 1.03%), 12/19/2030(a)(c)		275		274,485
Total Commercial Mortgage-Backed Securities (cost $522,824)				524,021
COLLATERALIZED LOAN OBLIGATIONS – 0.1%
CLO - Floating Rate – 0.1%
THL Credit Wind River CLO Ltd. Series 2014-2A, Class AR 1.264% (LIBOR 3 Month + 1.14%), 01/15/2031(a)(c) (cost $250,000)		250		250,168
Total Investments – 113.4% (cost $219,869,516)				223,653,587
Other assets less liabilities – (13.4)%				(26,341,422	)
Net Assets – 100.0%			$	197,312,165

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAIG Series 36, 5 Year Index, 06/20/2026*		(1.00	)%		Quarterly		0.47	%		USD	4,500	$	(113,307	)	$	(89,911	)	$	(23,396	)
CDX-NAHY Series 37, 5 Year Index, 12/20/2026*		(5.00	)		Quarterly		3.05			USD	2,500		(236,043	)		(237,813	)		1,770
												$	(349,350	)	$	(327,724	)	$	(21,626	)

* Termination date

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

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

				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	2,760		01/15/2027	CPI#	3.466%	Maturity	$	3,988		$	(3,913	)	$	7,901
USD	2,650		01/15/2027	CPI#	3.320%	Maturity		(22,159	)		– 0	–		(22,159	)
USD	1,110		01/15/2028	1.230%	CPI#	Maturity		174,673			– 0	–		174,673
USD	650		01/15/2028	0.735%	CPI#	Maturity		127,985			– 0	–		127,985
USD	1,680		01/15/2030	1.714%	CPI#	Maturity		228,488			– 0	–		228,488
USD	1,680		01/15/2030	1.731%	CPI#	Maturity		225,483			– 0	–		225,483
USD	1,600		01/15/2030	1.585%	CPI#	Maturity		239,184			– 0	–		239,184
USD	525		01/15/2030	1.572%	CPI#	Maturity		79,191			– 0	–		79,191
USD	525		01/15/2030	1.587%	CPI#	Maturity		78,373			– 0	–		78,373
USD	1,650		01/15/2031	2.782%	CPI#	Maturity		52,242			– 0	–		52,242
USD	1,380		01/15/2031	2.680%	CPI#	Maturity		59,609			– 0	–		59,609
USD	1,100		01/15/2031	2.601%	CPI#	Maturity		57,263			– 0	–		57,263
USD	1,350		04/15/2032	CPI#	2.909%	Maturity		(8,411	)		– 0	–		(8,411	)
USD	1,000		04/15/2032	CPI#	2.748%	Maturity		(26,566	)		– 0	–		(26,566	)
USD	680		04/15/2032	CPI#	2.722%	Maturity		(20,320	)		– 0	–		(20,320	)
USD	340		02/15/2041	CPI#	2.553%	Maturity		(11,365	)		– 0	–		(11,365	)
USD	900		02/15/2051	CPI#	2.295%	Maturity		(102,406	)		– 0	–		(102,406	)
							$	1,135,252		$	(3,913	)	$	1,139,165

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

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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	7,000		01/15/2031	1.252%	3 Month LIBOR	Semi-Annual/ Quarterly	$	167,625		$	– 0	–	$	167,625
USD	5,000		01/15/2031	1.276%	3 Month LIBOR	Semi-Annual/ Quarterly		95,671			– 0	–		95,671
USD	3,500		01/15/2031	1.401%	3 Month LIBOR	Semi-Annual/ Quarterly		31,950			– 0	–		31,950
USD	3,000		01/15/2031	1.584%	3 Month LIBOR	Semi-Annual/ Quarterly		(17,316	)		– 0	–		(17,316	)
USD	2,300		01/15/2031	1.269%	3 Month LIBOR	Semi-Annual/ Quarterly		49,396			– 0	–		49,396
USD	1,800		01/15/2031	1.314%	3 Month LIBOR	Semi-Annual/ Quarterly		30,599			– 0	–		30,599
USD	2,300		02/15/2036	3 Month LIBOR	1.600	Quarterly/Semi-Annual		(27,258	)		– 0	–		(27,258	)
USD	1,600		02/15/2036	3 Month LIBOR	1.533%	Quarterly/Semi-Annual		(32,794	)		– 0	–		(32,794	)
USD	1,600		02/15/2036	3 Month LIBOR	1.692%	Quarterly/Semi-Annual		249			– 0	–		249
USD	1,500		02/15/2036	3 Month LIBOR	1.530%	Quarterly/Semi-Annual		(31,370	)		– 0	–		(31,370	)

48    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

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	1,400		02/15/2036	3 Month LIBOR	1.535%	Quarterly/Semi-Annual	$	(28,070	)	$	– 0	–	$	(28,070	)
USD	1,200		04/01/2039	0.780%	3 Month LIBOR	Semi-Annual/ Quarterly		179,565			(45	)		179,610
USD	1,100		04/01/2039	0.932%	3 Month LIBOR	Semi-Annual/ Quarterly		138,596			– 0	–		138,596
USD	1,000		04/01/2039	0.774%	3 Month LIBOR	Semi-Annual/ Quarterly		150,652			– 0	–		150,652
USD	4,000		04/01/2044	3 Month LIBOR	2.013%	Quarterly/Semi-Annual		192,146			– 0	–		192,146
USD	3,150		04/01/2054	1.583%	3 Month LIBOR	Semi-Annual/ Quarterly		127,183			– 0	–		127,183
							$	1,026,824		$	(45	)	$	1,026,869

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	515	$	(142,869	)	$	(58,836	)	$	(84,033	)
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,000		(277,417	)		(125,505	)		(151,912	)
Credit Suisse International
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,000		(277,417	)		(127,691	)		(149,726	)
JPMorgan Securities, LLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	2,750		(275,580	)		43,687			(319,267	)
												$	(973,283	)	$	(268,345	)	$	(704,938	)

* Termination date

INTEREST RATE SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Citibank, NA		USD	2,220		10/09/2029		1.120%		SIFMA*		Quarterly	$	(378	)	$	– 0	–	$	(378	)
Citibank, NA		USD	2,220		10/09/2029		1.125%		SIFMA*		Quarterly		(1,317	)		– 0	–		(1,317	)
												$	(1,695	)	$	– 0	–	$	(1,695	)

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

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $20,717,178 or 10.5% of net assets.

(b) When-Issued or delayed delivery security.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

(d) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014-A 7.50%, 07/01/2023		07/31/2014	$	173,772	$	2		0.00	%

(e) Defaulted.

(f) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.23% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017 8.00%, 12/01/2022		12/07/2017	$	309,863	$	316,065		0.16	%
Massachusetts Development Finance Agency (Zero Waste Solutions LLC) Series 2017-A 7.75%, 12/01/2044		12/07/2017		140,000		134,895		0.07	%

(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, 2021 and the aggregate market value of this security amounted to $200,000 or 0.10% of net assets.

(h) Non-income producing security.

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

(j) IO – Interest Only.

(k) Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks.

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

As of October 31, 2021, 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 2.9% and 0.0%, respectively.

50    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Glossary:

ABS – Asset-Backed Securities

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

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

CDX-NAHY – North American High Yield Credit Default Swap Index

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

CIFGNA – CIFG Assurance North America, Inc.

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    51

STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value (cost $219,869,516)	$	223,653,587
Cash		646,607
Cash collateral due from broker		2,080,286
Interest receivable		1,766,768
Receivable for capital stock sold		1,065,487
Receivable for investment securities sold		359,784
Affiliated dividends receivable		9
Total assets		229,572,528
Liabilities
Payable for investment securities purchased		28,343,893
Payable for floating rate notes issued(a)		1,600,000
Payable for capital stock redeemed		1,078,667
Market value on credit default swaps (net premiums received $268,345)		973,283
Advisory fee payable		49,376
Payable for variation margin on centrally cleared swaps		14,108
Distribution fee payable		12,891
Directors’ fees payable		1,699
Unrealized depreciation on interest rate swaps		1,695
Transfer Agent fee payable		1,212
Foreign capital gains tax payable		419
Dividends payable		246
Other liabilities		9,018
Accrued expenses		173,856
Total liabilities		32,260,363
Net Assets	$	197,312,165
Composition of Net Assets
Capital stock, at par	$	17,071
Additional paid-in capital		192,323,041
Distributable earnings		4,972,053
Net Assets	$	197,312,165

Net Asset Value Per Share—21 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	29,380,571		2,541,904	$	11.56	*
C	$	7,943,454		687,347	$	11.56
Advisor	$	159,988,140		13,842,239	$	11.56

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

* The maximum offering price per share for Class A shares was $11.92 which reflects a sales charge of 3.00%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest	$	3,201,639
Dividends—Affiliated issuers		660		$	3,202,299
Expenses
Advisory fee (see Note B)		559,536
Distribution fee—Class A		53,282
Distribution fee—Class C		37,986
Transfer agency—Class A		8,802
Transfer agency—Class C		1,585
Transfer agency—Advisor Class		40,482
Registration fees		94,915
Administrative		88,166
Custody and accounting		79,737
Audit and tax		62,855
Legal		24,243
Directors’ fees		19,879
Printing		13,965
Miscellaneous		9,114
Total expenses before interest expense		1,094,547
Interest expense		18,136
Total expenses		1,112,683
Less: expenses waived and reimbursed by the Adviser (see Note B)		(384,775	)
Net expenses					727,908
Net investment income					2,474,391
Realized and Unrealized Gain on Investment Transactions
Net realized gain on:
Investment transactions					333,634
Swaps					77,544
Net change in unrealized appreciation/depreciation of:
Investments(a)					2,827,695
Swaps					1,203,360
Net gain on investment transactions					4,442,233
Net Increase in Net Assets from Operations				$	6,916,624

(a) Net of increase in accrued foreign capital gains taxes on unrealized gains of $419.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,474,391		$	2,368,847
Net realized gain (loss) on investment transactions		411,178			(479,678	)
Net change in unrealized appreciation/depreciation of investments		4,031,055			(3,162,385	)
Net increase (decrease) in net assets from operations		6,916,624			(1,273,216	)
Distributions to Shareholders
Class A		(406,926	)		(516,141	)
Class C		(35,666	)		(38,826	)
Advisor Class		(2,042,255	)		(2,154,981	)
Capital Stock Transactions
Net increase (decrease)		117,513,762			(1,296,763	)
Total increase (decrease)		121,945,539			(5,279,927	)
Net Assets
Beginning of period		75,366,626			80,646,553
End of period	$	197,312,165		$	75,366,626

See notes to financial statements.

54    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Tax-Aware Fixed Income Opportunities Portfolio (the “Fund”) (formerly known as AB Tax-Aware Fixed Income Portfolio), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class T, Class 1 and Class 2 shares. Class B, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

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, 2021:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

163,748,364

$

– 0

–

$

163,748,364

Short-Term Municipal Notes

– 0

–

50,285,744

– 0

–

50,285,744

Corporates—Investment Grade

– 0

–

3,824,705

– 0

–

3,824,705

Corporates—Non-Investment Grade

– 0

–

2,390,599

– 0

–

2,390,599

Collateralized Mortgage Obligations

– 0

–

1,868,823

– 0

–

1,868,823

Asset-Backed Securities

– 0

–

761,163

– 0

–

761,163

Commercial Mortgage-Backed Securities

– 0

–

524,021

– 0

–

524,021

Collateralized Loan Obligations

– 0

–

250,168

– 0

–

250,168

Liabilities:

Floating Rate Notes(a)

(1,600,000

)

– 0

–

– 0

–

(1,600,000

)

Total Investments in Securities

(1,600,000

)

223,653,587

– 0

–

222,053,587

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Other Financial Instruments(b):

Assets:

Centrally Cleared Inflation (CPI) Swaps

$

– 0

–

$

1,326,479

$

– 0

–

$

1,326,479

(c)

Centrally Cleared Interest Rate Swaps

– 0

–

1,163,632

– 0

–

1,163,632

(c)

Liabilities:

Centrally Cleared Credit Default Swaps

– 0

–

(349,350

)

– 0

–

(349,350

)(c)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(191,227

)

– 0

–

(191,227

)(c)

Centrally Cleared Interest Rate Swaps

– 0

–

(136,808

)

– 0

–

(136,808

)(c)

Credit Default Swaps

– 0

–

(973,283

)

– 0

–

(973,283

)

Interest Rate Swaps

– 0

–

(1,695

)

– 0

–

(1,695

)

Total

$

(1,600,000

)

$

224,491,335

$

– 0

–

$

222,891,335

(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.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

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NOTES TO FINANCIAL STATEMENTS (continued)

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .75%, 1.50% and .50%, of average daily net assets for Class A, Class C and Advisor Class shares, respectively. For the year ended October 31, 2021, such reimbursements/waivers amounted to $293,407. The Expense Caps may not be terminated before January 31, 2022.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the Adviser voluntarily agreed to waive such fees in the amount of $88,166.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $18,555 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $309 from the sale of Class A shares and received $0 and $1,221 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the

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NOTES TO FINANCIAL STATEMENTS (continued)

Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $3,202.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2021 is as follows:

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)			Dividend Income (000)
Government Money Market Portfolio	$	456	$	101,732	$	102,188	$	– 0	–	$	1

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to 0.30% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. The fees are accrued daily and paid monthly. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $52,563 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	130,621,988		$	34,857,664
U.S. government securities		– 0	–		1,719

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NOTES TO FINANCIAL STATEMENTS (continued)

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	218,276,411
Gross unrealized appreciation	$	9,008,865
Gross unrealized depreciation		(2,854,552	)
Net unrealized appreciation	$	6,154,313

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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 year ended October 31, 2021, the Fund held interest rate swaps for hedging purposes.

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 year ended October 31, 2021, the Fund held inflation (CPI) 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)

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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.

During the year ended October 31, 2021, the Fund held credit default swaps for hedging and 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

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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 year ended October 31, 2021, 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
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	1,770	*	Receivable/Payable for variation margin on centrally cleared swaps	$	23,396	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		2,494,069	*	Receivable/Payable for variation margin on centrally cleared swaps		328,035	*
Interest rate contracts					Unrealized depreciation on interest rate swaps		1,695
Credit contracts					Market value on credit default swaps		973,283
Total		$	2,495,839			$	1,326,409

* 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	$	386,777		$	757,540
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(309,233	)		445,820
Total		$	77,544		$	1,203,360

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Interest Rate Swaps:
Average notional amount	$	4,440,000
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	25,288,846
Centrally Cleared Inflation Swaps:
Average notional amount	$	11,046,154
Credit Default Swaps:
Average notional amount of sale contracts	$	5,637,308
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	5,550,000

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, 2021. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

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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
Citibank, NA/Citigroup Global Markets, Inc.	$	421,981	$	– 0	–	$	(421,981	)	$	– 0	–	$	– 0	–
Credit Suisse International		277,417		– 0	–		(256,000	)		– 0	–		21,417
JPMorgan Securities, LLC		275,580		– 0	–		(275,580	)		– 0	–		– 0	–
Total	$	974,978	$	– 0	–	$	(953,561	)	$	– 0	–	$	21,417	^

* 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 E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		1,412,846			1,063,656		$	16,395,252		$	11,231,752
Shares issued in reinvestment of dividends		17,413			20,938			200,359			223,947
Shares converted from Class C		33,047			16,357			379,856			166,789
Shares redeemed		(442,249	)		(656,125	)		(5,086,693	)		(6,848,767	)
Net increase		1,021,057			444,826		$	11,888,774		$	4,773,721
Class C
Shares sold		597,815			63,704		$	6,955,200		$	708,055
Shares issued in reinvestment of dividends		2,391			2,452			27,536			26,233
Shares converted to Class A		(33,047	)		(16,357	)		(379,856	)		(166,789	)
Shares redeemed		(45,530	)		(27,959	)		(523,128	)		(286,256	)
Net increase		521,629			21,840		$	6,079,752		$	281,243

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	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Advisor Class
Shares sold		11,306,229			6,370,236		$	131,083,859		$	68,728,672
Shares issued in reinvestment of dividends		84,583			83,044			975,843			891,901
Shares redeemed		(2,823,940	)		(7,230,083	)		(32,514,466	)		(75,972,300	)
Net increase (decrease)		8,566,872			(776,803	)	$	99,545,236		$	(6,351,727	)

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, 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

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affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.

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.

The Fund invests, from time to time, in the municipal securities of Puerto Rico or other U.S. territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other U.S. issuers of municipal securities. Like many U.S. states and municipalities, Puerto Rico experienced a significant downturn during the 2007-2009 recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment, including as a result of the COVID-19 pandemic. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility.

Tax Risk—From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s 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

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on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

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

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

Leverage Risk—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.

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Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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 Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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

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in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	467,928	$	526,813
Total taxable distributions	$	467,928		526,813
Tax-exempt distributions		2,016,919		2,183,135
Total distributions paid	$	2,484,847	$	2,709,948

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	2,059
Accumulated capital and other losses		(1,183,654	)(a)
Unrealized appreciation/(depreciation)		6,153,894	(b)
Total accumulated earnings/(deficit)	$	4,972,299	(c)

(a) As of October 31, 2021, the Fund had a net capital loss carryforward of $1,183,654. During the fiscal year, the Fund utilized $595,904 of capital loss carry forwards to offset current year net realized gains.

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

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) are 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 October 31, 2021, the Fund had a net short-term capital loss carryforward of $1,183,654, which may be carried forward for an indefinite period.

During the current fiscal year, there were no permanent differences that resulted in adjustments to distributable earnings or additional paid-in capital.

NOTE I

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2021, the amount of the Fund’s Floating Rate Notes outstanding was $1,600,000 and the related interest rate was 0.08% to 0.15%. For the year ended October 31, 2021, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $1,600,000 and 1.05%, 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.

NOTE J

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

NOTE K

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 Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.82			$  11.09			$  10.46			$  10.77			$  10.87
Income From Investment Operations
Net investment income(a)(b)		.22			.29			.30			.24			.21
Net realized and unrealized gain (loss) on investment transactions		.75			(.23	)		.65			(.30	)		(.10	)(c)
Net increase (decrease) in net asset value from operations		.97			.06			.95			(.06	)		.11
Less: Dividends
Dividends from net investment income		(.23	)		(.33	)		(.32	)		(.25	)		(.21	)
Net asset value, end of period		$  11.56			$  10.82			$  11.09			$  10.46			$  10.77
Total Return
Total investment return based on net asset value(d)		9.02	%		.63	%		9.15	%		(.55	)%		1.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$29,381			$16,463			$11,932			$5,666			$8,065
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.76	%		.77	%		.76	%		.75	%		.75	%
Expenses, before waivers/reimbursements(e)(f)		1.08	%		1.26	%		1.30	%		1.27	%		1.40	%
Net investment income(b)		1.88	%		2.68	%		2.78	%		2.26	%		2.01	%
Portfolio turnover rate		30	%		63	%		52	%		68	%		34	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.83			$  11.09			$  10.46			$  10.77			$  10.87
Income From Investment Operations
Net investment income(a)(b)		.11			.20			.22			.16			.13
Net realized and unrealized gain (loss) on investment transactions		.77			(.21	)		.65			(.30	)		(.10	)(c)
Net increase (decrease) in net asset value from operations		.88			(.01	)		.87			(.14	)		.03
Less: Dividends
Dividends from net investment income		(.15	)		(.25	)		(.24	)		(.17	)		(.13	)
Net asset value, end of period		$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Total Return
Total investment return based on net asset value(d)		8.22	%		(.03	)%+		8.33	%		(1.29	)%		.33	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$7,943			$1,794			$1,596			$769			$1,056
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		1.51	%		1.52	%		1.51	%		1.50	%		1.50	%
Expenses, before waivers/reimbursements(e)(f)		1.81	%		2.00	%		2.06	%		2.02	%		2.18	%
Net investment income(b)		.96	%		1.91	%		2.05	%		1.52	%		1.25	%
Portfolio turnover rate		30	%		63	%		52	%		68	%		34	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  10.83			$  11.09			$  10.46			$  10.77			$  10.87
Income From Investment Operations
Net investment income(a)(b)		.24			.31			.33			.27			.24
Net realized and unrealized gain (loss) on investment transactions		.75			(.21	)		.64			(.30	)		(.10	)(c)
Net increase (decrease) in net asset value from operations		.99			.10			.97			(.03	)		.14
Less: Dividends
Dividends from net investment income		(.26	)		(.36	)		(.34	)		(.28	)		(.24	)
Net asset value, end of period		$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Total Return
Total investment return based on net asset value(d)		9.20	%		.97	%		9.42	%		(.30	)%		1.34	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$159,988			$57,110			$67,119			$57,432			$59,782
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.51	%		.52	%		.51	%		.50	%		.50	%
Expenses, before waivers/reimbursements(e)(f)		.82	%		.99	%		1.05	%		1.02	%		1.15	%
Net investment income(b)		2.05	%		2.87	%		3.04	%		2.52	%		2.26	%
Portfolio turnover rate		30	%		63	%		52	%		68	%		34	%

See footnote summary on page 80.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

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

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

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the year ended October 31, 2017, such waiver amounted to .01%.

(f) The expense ratios presented below exclude interest expense:

	Year Ended October 31,
	2021			2020			2019			2018			2017
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.07	%		1.23	%		1.29	%		1.27	%		1.40	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.79	%		1.98	%		2.04	%		2.02	%		2.18	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.80	%		.96	%		1.04	%		1.02	%		1.15	%

+ The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Tax-Aware Fixed Income Opportunities Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Tax-Aware Fixed Income Opportunities Portfolio, formerly known as AB Tax-Aware Fixed Income Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 29, 2021

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾,
Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Terrance T. Hults⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund are made by its Tax-Aware Investment Team. Messrs. Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Terrance T. Hults 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head – Municipal Portfolio Management.
Matthew Norton 38	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Co-Head –Municipal Portfolio Management.
Andrew D. Potter 36	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus of SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions

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have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Tax-Aware Fixed Income Opportunities Portfolio (formerly AB Tax-Aware Fixed Income Portfolio) (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. The Adviser had not requested any reimbursements from the Fund in the Fund’s latest fiscal year. 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 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s unprofitability to the Adviser would be

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exacerbated without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

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In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    97

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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NOTES

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NOTES

100    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TAFIO-0151-1021                

OCT    ^10.31.21

ANNUAL REPORT

AB TOTAL RETURN BOND PORTFOLIO

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are 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.

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’re pleased to provide this report for the AB Total Return Bond Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

At AB, we’re striving to help our clients achieve better outcomes by:

⁺  Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

⁺  Applying differentiated investment insights through a connected global research network

⁺  Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.

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

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    1

ANNUAL REPORT

December 7, 2021

This report provides management’s discussion of fund performance for the AB Total Return Bond Portfolio for the annual reporting period ended October 31, 2021.

The Fund’s investment objective is to maximize long-term total return without assuming what the Adviser considers undue risk.

NAV RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	6 Months		12 Months
AB TOTAL RETURN BOND PORTFOLIO
Class A Shares		1.46%		1.22%
Class C Shares		1.07%		0.55%
Advisor Class Shares1		1.59%		1.56%
Class R Shares1		1.33%		1.04%
Class K Shares1		1.46%		1.22%
Class I Shares1		1.58%		1.46%
Class Z Shares1		1.57%		1.46%
Bloomberg US Aggregate Bond Index		1.06%		-0.48%

1 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg US Aggregate Bond Index, for the six- and 12-month periods ended October 31, 2021.

During the 12-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation was the primary contributor, relative to the benchmark, mostly from off-benchmark exposures to credit risk-transfer securities, high-yield corporate bonds, emerging-market corporate bonds and inflation-linked securities, as well as underweights to US Treasuries and US agency mortgages, and an overweight to commercial mortgage-backed securities (“CMBS”). Security selection within investment-grade corporate bonds and asset-backed securities also contributed, offsetting losses from selection within high-yield corporate bonds and US agency mortgages. Yield-curve positioning detracted the most. Currency decisions also detracted, as losses in the New Zealand dollar, Australian dollar and Canadian dollar were greater than gains in the Russian ruble and euro. A country allocation to Canada was a minor detractor over the period.

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During the six-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation contributed the most to performance, due to off-benchmark exposures to credit risk-transfer securities, swaptions, inflation-linked securities and high-yield corporate bonds, along with an overweight to CMBS, and an underweight to US agency mortgages, while an underweight to investment-grade corporate bonds detracted. Security selection within CMBS and investment-grade corporates contributed more than a loss within US agency mortgages. Currency decisions added to returns, as gains in the Russian ruble, Australian dollar and Swedish krona exceeded a loss in the New Zealand dollar. Country allocation was a minor contributor to returns. Yield-curve positioning on the 20-year part of the curve detracted from performance during the period.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were utilized in the corporate and CMBS sectors for hedging and investment purposes. Total return swaps were utilized in the corporate sector for hedging and investment purposes. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index swaps were held to gain exposure to rising inflation expectations. Written swaptions were used for duration management. During the 12-month period, written options were utilized in the corporate sector for hedging and investment purposes.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income market returns were mixed for the 12-month period ended October 31, 2021. Longer-term treasury returns fell in most major developed markets on rising yields—particularly in Australia, Canada and the UK. Global inflation-linked bonds outperformed US Treasuries. Relatively low interest rates set the stage for the continued outperformance of risk assets, led by the performance of high-yield corporate bonds—particularly in the US, eurozone and emerging markets. Emerging-market hard-currency sovereign bonds also had strong performance, mostly from the high-yield component. Emerging- and developed-market investment-grade corporate bonds also posted positive performance, with the US outperforming the eurozone. Securitized assets outperformed, especially in CMBS. Local-currency sovereign bonds trailed, as the US dollar was mixed against emerging-market currencies and fell versus most developed-market currencies except the yen and South Korean won. Commodity prices were strong, with Brent crude oil and copper climbing from pandemic-related lows.

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INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term and relatively attractive yields that do not involve undue risk of loss of capital. The Fund may invest up to 25% of its net assets in below investment-grade bonds. The Fund may use leverage for investment purposes.

The Fund may invest without limit in US dollar-denominated foreign fixed-income securities and may invest up to 25% of its assets in 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 invest in mortgage-related and other asset-backed securities; loan participations and assignments; inflation-indexed securities; variable-, floating- and inverse-floating-rate instruments; and preferred stock, and may use other investment techniques. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements and dollar rolls. The Fund may invest, without limit, in derivatives, such as options, futures contracts, forwards or swaps.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and CMBS. 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 its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a

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DISCLOSURES AND RISKS (continued)

fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

Foreign (Non-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 rates may negatively affect the value of the Fund’s investments or reduce its returns.

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

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

Derivatives Risk: The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be difficult to price

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DISCLOSURES AND RISKS (continued)

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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

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

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. Class B shares are no longer being offered. Effective November 7, 2019, all outstanding Class B shares were converted to Class A shares.

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DISCLOSURES AND RISKS (continued)

On July 12, 2019, the Fund implemented its current investment policies (the change eliminated the guidelines for the average duration and maturity of the Fund and addressed certain related matters) and also changed its name from AB Intermediate Bond Portfolio to AB Total Return Bond Portfolio. Accordingly, the performance shown for periods prior to July 12, 2019, is based on the Fund’s prior investment strategies and may not be representative of the Fund’s performance under its current investment policies.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2011 TO 10/31/2021

This chart illustrates the total value of an assumed $10,000 investment in AB Total Return Bond Portfolio Class A shares (from 10/31/2011 to 10/31/2021) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2021 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						1.53%
1 Year		1.22%		-3.07%
5 Years		3.12%		2.23%
10 Years		3.26%		2.81%
CLASS C SHARES						0.85%
1 Year		0.55%		-0.42%
5 Years		2.36%		2.36%
10 Years2		2.52%		2.52%
ADVISOR CLASS SHARES3						1.83%
1 Year		1.56%		1.56%
5 Years		3.37%		3.37%
10 Years		3.53%		3.53%
CLASS R SHARES3						1.17%
1 Year		1.04%		1.04%
5 Years		2.86%		2.86%
10 Years		3.02%		3.02%
CLASS K SHARES3						1.49%
1 Year		1.22%		1.22%
5 Years		3.12%		3.12%
10 Years		3.28%		3.28%
CLASS I SHARES3						1.82%
1 Year		1.46%		1.46%
5 Years		3.39%		3.39%
10 Years		3.53%		3.53%
CLASS Z SHARES3						1.90%
1 Year		1.46%		1.46%
5 Years		3.35%		3.35%
Since Inception4		3.51%		3.51%

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 0.99%, 1.75%, 0.74%, 1.37%, 1.07%, 0.70% and 0.64% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios, exclusive of interest expense, to 0.77%, 1.52%, 0.52%, 1.02%, 0.77%, 0.52% and 0.52% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

(footnotes continued on next page)

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HISTORICAL PERFORMANCE (continued)

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2021.

2 Assumes conversion of Class C shares into Class A shares after eight years.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 4/25/2014.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    11

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2021 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-3.06%
5 Years		2.15%
10 Years		2.81%
CLASS C SHARES
1 Year		-0.61%
5 Years		2.25%
10 Years1		2.50%
ADVISOR CLASS SHARES2
1 Year		1.38%
5 Years		3.27%
10 Years		3.52%
CLASS R SHARES2
1 Year		0.87%
5 Years		2.76%
10 Years		3.01%
CLASS K SHARES2
1 Year		1.22%
5 Years		3.03%
10 Years		3.27%
CLASS I SHARES2
1 Year		1.46%
5 Years		3.31%
10 Years		3.53%
CLASS Z SHARES2
1 Year		1.47%
5 Years		3.27%
Since Inception3		3.56%

1 Assumes conversion of Class C shares into Class A shares after eight years.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 4/25/2014.

12    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

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

Actual Expenses

The 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.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    13

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2021		Ending Account Value October 31, 2021		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,014.60	$	3.91		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class C
Actual	$	1,000	$	1,010.70	$	7.70		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	1,015.90	$	2.64		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class R
Actual	$	1,000	$	1,013.30	$	5.18		1.02	%
Hypothetical**	$	1,000	$	1,020.06	$	5.19		1.02	%
Class K
Actual	$	1,000	$	1,014.60	$	3.91		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class I
Actual	$	1,000	$	1,015.80	$	2.64		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class Z
Actual	$	1,000	$	1,015.70	$	2.64		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

14    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

October 31, 2021

PORTFOLIO STATISTICS

Net Assets ($mil): $323.2

TOP TEN SECTORS (including derivatives)¹

Governments–Treasuries2	43.25	%
Corporates–Investment Grade	26.39
Commercial Mortgage Backed Securities3	16.69
Collateralized Mortgage Obligations	16.17
Mortgage Pass-Throughs	9.52
Corporates–Non Investment Grade3	5.05
Asset-Backed Securities	4.30
Collateralized Loan Obligations	3.39
Interest Rate Swaps4	3.14
Inflations Linked Securities	3.08

SECTOR BREAKDOWN (excluding derivatives)⁵

Corporates–Investment Grade	25.6	%
Commercial Mortgage-Backed Securities	16.4
Collateralized Mortgage Obligations	15.7
Governments–Treasuries	10.6
Mortgage Pass-Throughs	9.2
Asset-Backed Securities	4.2
Corporates–Non-Investment Grade	4.0
Collateralized Loan Obligations	3.3
Inflation-Linked Securities	3.0
Emerging Markets–Corporate Bonds	1.1
Local Governments–US Municipal Bonds	0.8
Quasi-Sovereigns	0.7
Emerging Markets–Sovereigns	0.6
Other	0.6
Short-Term	4.2
	100.0	%

1 All data are as of October 31, 2021. The Fund’s sectors include derivative exposure and are expressed as approximate percentages of the Fund’s total net assets, based on the Adviser’s internal classification. The percentages will vary over time.

2 Includes Treasury Futures.

3 Includes Credit Default Swaps.

4 Represents the exposure of the Fund’s fixed-rate payments on the Interest Rate Swaps. Interest Rate Swaps involve the exchange by a fund with another party of payments calculated by reference to specified interest rates (e.g., an exchange of floating-rate payments for fixed-rate payments).

5 All data are as of October 31, 2021. The Fund’s sector breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” sector breakdown weightings represent 0.3% or less in the following: Common Stocks and Governments–Sovereign Bonds.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS

October 31, 2021

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 26.4%
Industrial – 15.4%
Basic – 1.4%
Alpek SAB de CV 3.25%, 02/25/2031(a)	U.S.$		273	$	269,724
4.25%, 09/18/2029(a)			203		214,114
GUSAP III LP 4.25%, 01/21/2030(a)			535		561,817
Industrias Penoles SAB de CV 4.75%, 08/06/2050(a)			268		290,579
Inversiones CMPC SA 4.375%, 04/04/2027(a)			490		531,282
Inversiones CMPC SA/Cayman Islands Branch 4.375%, 05/15/2023(a)			225		232,144
Orbia Advance Corp. SAB de CV 4.00%, 10/04/2027(a)			350		377,628
Suzano Austria GmbH 2.50%, 09/15/2028			809		765,516
3.75%, 01/15/2031			145		144,638
WRKCo, Inc. 4.00%, 03/15/2028			594		660,130
Yamana Gold, Inc. 2.63%, 08/15/2031(a)			619		603,754
					4,651,326
Capital Goods – 0.6%
Flowserve Corp. 2.80%, 01/15/2032			425		417,270
Parker-Hannifin Corp. 3.25%, 06/14/2029			255		273,314
Raytheon Technologies Corp. 4.125%, 11/16/2028			769		871,500
Westinghouse Air Brake Technologies Corp. 4.40%, 03/15/2024			393		419,881
					1,981,965
Communications - Media – 1.8%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.80%, 03/01/2050			129		146,348
5.125%, 07/01/2049			198		234,796
Discovery Communications LLC 4.65%, 05/15/2050			56		65,865
5.20%, 09/20/2047			178		222,568
5.30%, 05/15/2049			81		102,974
Fox Corp. 4.709%, 01/25/2029			240		277,272
5.576%, 01/25/2049			407		557,370

16    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Interpublic Group of Cos., Inc. (The) 4.65%, 10/01/2028	U.S.$		178	$	207,030
Netflix, Inc. 5.875%, 11/15/2028			766		932,728
Prosus NV 3.68%, 01/21/2030(a)			545		555,151
Tencent Holdings Ltd. 1.81%, 01/26/2026(a)			533		533,600
2.39%, 06/03/2030(a)			460		447,718
3.24%, 06/03/2050(a)			328		313,092
Weibo Corp. 3.375%, 07/08/2030			1,312		1,296,256
					5,892,768
Communications - Telecommunications – 0.6%
AT&T, Inc. 3.50%, 09/15/2053			420		426,136
3.65%, 09/15/2059			457		464,500
4.30%, 12/15/2042			149		168,395
T-Mobile USA, Inc. 2.625%, 04/15/2026-02/15/2029			281		282,704
2.875%, 02/15/2031			353		351,507
3.375%, 04/15/2029(a)			66		67,854
					1,761,096
Consumer Cyclical - Automotive – 0.8%
General Motors Financial Co., Inc. 4.30%, 07/13/2025			135		146,719
5.25%, 03/01/2026			165		186,701
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(a)			1,078		1,136,967
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)			1,120		1,214,237
					2,684,624
Consumer Cyclical - Other – 0.4%
Las Vegas Sands Corp. 3.90%, 08/08/2029			797		807,855
MDC Holdings, Inc. 6.00%, 01/15/2043			346		438,219
					1,246,074
Consumer Cyclical - Retailers – 0.8%
Advance Auto Parts, Inc. 3.90%, 04/15/2030			811		894,484
InRetail Consumer 3.25%, 03/22/2028(a)			289		283,094

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lowe’s Cos., Inc. 3.65%, 04/05/2029	U.S.$		267	$	294,672
Ross Stores, Inc. 4.70%, 04/15/2027			893		1,015,028
					2,487,278
Consumer Non-Cyclical – 1.2%
Altria Group, Inc. 3.40%, 05/06/2030			750		784,050
4.80%, 02/14/2029			209		238,224
BAT Capital Corp. 2.259%, 03/25/2028			1,125		1,102,928
2.726%, 03/25/2031			220		214,469
Cencosud SA 5.15%, 02/12/2025(a)			683		743,317
CVS Health Corp. 4.30%, 03/25/2028			28		31,731
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(a)			270		266,963
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			520		508,638
					3,890,320
Energy – 3.5%
BP Capital Markets America, Inc. 2.939%, 06/04/2051			1,201		1,170,567
Cenovus Energy, Inc. 4.25%, 04/15/2027			42		46,131
4.40%, 04/15/2029			1,193		1,336,446
Devon Energy Corp. 5.60%, 07/15/2041			457		577,634
Enbridge Energy Partners LP 7.375%, 10/15/2045			634		1,019,909
Energy Transfer LP 4.75%, 01/15/2026			1,138		1,258,924
6.25%, 04/15/2049			156		207,555
Eni SpA 4.25%, 05/09/2029(a)			850		962,914
Marathon Oil Corp. 6.80%, 03/15/2032			650		848,341
Marathon Petroleum Corp. 5.125%, 12/15/2026			255		293,497
6.50%, 03/01/2041			161		223,761
Oleoducto Central SA 4.00%, 07/14/2027(a)			429		438,465

18    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ONEOK Partners LP 6.125%, 02/01/2041	U.S.$		48	$	62,129
ONEOK, Inc. 4.35%, 03/15/2029			425		473,021
6.35%, 01/15/2031			217		275,879
Suncor Energy, Inc. 6.80%, 05/15/2038			534		759,284
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(a)			237		237,355
TransCanada PipeLines Ltd. 6.10%, 06/01/2040			845		1,156,560
					11,348,372
Other Industrial – 0.3%
Alfa SAB de CV 5.25%, 03/25/2024(a)			530		565,046
CITIC Ltd. 2.85%, 02/25/2030(a)			317		321,914
					886,960
Services – 1.1%
Alibaba Group Holding Ltd. 2.125%, 02/09/2031			1,149		1,101,592
Booking Holdings, Inc. 4.625%, 04/13/2030			925		1,090,538
Expedia Group, Inc. 4.625%, 08/01/2027			374		418,925
6.25%, 05/01/2025(a)			33		37,695
Global Payments, Inc. 3.20%, 08/15/2029			290		303,320
IHS Markit Ltd. 4.25%, 05/01/2029			147		167,647
4.75%, 08/01/2028			32		37,387
Moody’s Corp. 4.25%, 02/01/2029			396		452,553
					3,609,657
Technology – 2.4%
Baidu, Inc. 1.625%, 02/23/2027			442		431,613
3.425%, 04/07/2030			202		210,585
Broadcom, Inc. 3.137%, 11/15/2035(a)			124		122,131
3.187%, 11/15/2036(a)			411		403,392
4.11%, 09/15/2028			431		475,057
4.15%, 11/15/2030			1,018		1,119,138
Dell International LLC/EMC Corp. 6.02%, 06/15/2026			469		552,398

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Fiserv, Inc. 3.50%, 07/01/2029	U.S.$		869	$	937,738
Infor, Inc. 1.75%, 07/15/2025(a)			279		280,629
KLA Corp. 4.10%, 03/15/2029			123		139,647
Kyndryl Holdings, Inc. 2.05%, 10/15/2026(a)			869		860,023
NXP BV/NXP Funding LLC 5.55%, 12/01/2028(a)			277		334,202
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.40%, 05/01/2030(a)			298		318,730
Oracle Corp. 2.875%, 03/25/2031			525		537,784
3.95%, 03/25/2051			630		681,515
SK Hynix, Inc. 2.375%, 01/19/2031(a)			280		269,080
					7,673,662
Transportation - Airlines – 0.3%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(a)			345		368,848
4.75%, 10/20/2028(a)			401		445,647
					814,495
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(a)			211		224,731
5.875%, 07/05/2034(a)			175		201,735
					426,466
Transportation - Services – 0.1%
ENA Master Trust 4.00%, 05/19/2048(a)			457		461,941
					49,817,004
Financial Institutions – 10.3%
Banking – 6.5%
ABN AMRO Bank NV 4.75%, 07/28/2025(a)			200		220,088
American Express Co. Series B 3.553% (LIBOR 3 Month + 3.43%), 11/15/2021(b)(c)			62		62,000
Banco de Credito del Peru 3.125%, 07/01/2030(a)			635		628,047
Bank of America Corp. 2.299%, 07/21/2032			430		420,897
2.687%, 04/22/2032			626		634,413

20    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series DD 6.30%, 03/10/2026(b)	U.S.$		185	$	212,959
Series Z 6.50%, 10/23/2024(b)			289		320,619
Bank of New York Mellon Corp. (The) Series G 4.70%, 09/20/2025(b)			166		180,696
Barclays Bank PLC 6.86%, 06/15/2032(a)(b)			129		174,377
BNP Paribas SA 2.871%, 04/19/2032(a)			722		733,747
CIT Group, Inc. 5.25%, 03/07/2025			383		421,541
Citigroup, Inc. 3.98%, 03/20/2030			334		370,964
4.075%, 04/23/2029			494		549,862
5.95%, 01/30/2023(b)			216		224,538
Series W 4.00%, 12/10/2025(b)			329		335,406
Citizens Financial Group, Inc. 4.30%, 12/03/2025			958		1,052,478
Credit Suisse Group AG 3.091%, 05/14/2032(a)			829		843,632
4.194%, 04/01/2031(a)			396		438,875
Deutsche Bank AG/New York NY 3.961%, 11/26/2025			265		282,935
Discover Bank 4.682%, 08/09/2028			250		264,327
Fifth Third Bancorp Series L 4.50%, 09/30/2025(b)			205		221,353
Goldman Sachs Group, Inc. (The) 2.383%, 07/21/2032			211		207,419
2.615%, 04/22/2032			715		717,031
Series V 4.125%, 11/10/2026(b)			268		269,177
HSBC Holdings PLC 4.292%, 09/12/2026			536		584,063
4.583%, 06/19/2029			459		518,537
6.375%, 03/30/2025(b)			547		595,891
ING Groep NV 6.875%, 04/16/2022(a)(b)			425		435,098
JPMorgan Chase & Co. 2.58%, 04/22/2032			892		898,405
Series I 3.599% (LIBOR 3 Month + 3.47%), 01/30/2022(b)(c)			328		329,178

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series V 3.451% (LIBOR 3 Month + 3.32%), 01/01/2022(b)(c)	U.S.$		161	$	161,444
Series Z 3.932% (LIBOR 3 Month + 3.80%), 02/01/2022(b)(c)			470		472,909
Mizuho Financial Group, Inc. 2.226%, 05/25/2026			235		239,815
Morgan Stanley Series G 3.772%, 01/24/2029			790		867,009
Series H 3.734% (LIBOR 3 Month + 3.61%), 01/15/2022(b)(c)			79		79,367
Natwest Group PLC Series U 2.452% (LIBOR 3 Month + 2.32%), 09/30/2027(b)(c)			700		696,437
Santander Holdings USA, Inc. 4.40%, 07/13/2027			315		350,523
Standard Chartered PLC 1.639% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(b)(c)			400		385,184
6.00%, 07/26/2025(a)(b)			478		518,673
Truist Financial Corp. Series Q 5.10%, 03/01/2030(b)			692		779,628
UBS AG/Stamford CT 7.625%, 08/17/2022			620		652,147
UBS Group AG 7.00%, 02/19/2025(a)(b)			312		350,981
UniCredit SpA 2.569%, 09/22/2026(a)			394		396,273
3.127%, 06/03/2032(a)			356		353,647
US Bancorp Series J 5.30%, 04/15/2027(b)			380		421,534
Wells Fargo & Co. 2.188%, 04/30/2026			542		554,043
3.584%, 05/22/2028			191		205,860
Series BB 3.90%, 03/15/2026(b)			273		278,239
					20,912,266
Brokerage – 0.3%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(b)			568		625,255

22    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series I 4.00%, 06/01/2026(b)	U.S.$		469	$	483,070
					1,108,325
Finance – 1.9%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 3.30%, 01/30/2032			345		351,696
6.50%, 07/15/2025			179		207,415
Air Lease Corp. 2.10%, 09/01/2028			242		234,885
2.875%, 01/15/2026			72		74,349
3.625%, 04/01/2027			34		36,144
Aircastle Ltd. 2.85%, 01/26/2028(a)			835		841,221
4.125%, 05/01/2024			152		160,582
4.25%, 06/15/2026			53		57,449
5.25%, 08/11/2025(a)			384		425,395
Aviation Capital Group LLC 1.95%, 01/30/2026-09/20/2026(a)			582		574,276
3.50%, 11/01/2027(a)			136		141,863
4.125%, 08/01/2025(a)			5		5,340
4.375%, 01/30/2024(a)			135		143,296
4.875%, 10/01/2025(a)			153		167,304
5.50%, 12/15/2024(a)			381		423,302
CDBL Funding 1 3.50%, 10/24/2027(a)			580		605,242
GE Capital European Funding Unlimited Co. 4.625%, 02/22/2027	EUR		150		210,548
GE Capital Funding LLC 4.40%, 05/15/2030	U.S.$		1,218		1,424,695
					6,085,002
Insurance – 1.1%
Centene Corp. 2.625%, 08/01/2031			220		216,654
4.625%, 12/15/2029			132		142,581
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(a)			294		392,166
MetLife Capital Trust IV 7.875%, 12/15/2037(a)			699		972,414
Nationwide Mutual Insurance Co. 9.375%, 08/15/2039(a)			246		426,876
Prudential Financial, Inc. 5.875%, 09/15/2042			805		833,819
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049(a)			400		453,700

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Voya Financial, Inc. 5.65%, 05/15/2053	U.S.$		180	$	189,013
					3,627,223
Other Finance – 0.1%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			271		295,474
REITs – 0.4%
Digital Realty Trust LP 3.60%, 07/01/2029			542		589,197
Vornado Realty LP 3.40%, 06/01/2031			709		727,172
					1,316,369
					33,344,659
Utility – 0.7%
Electric – 0.6%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a)			274		281,415
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(a)			679		552,239
Engie Energia Chile SA 3.40%, 01/28/2030(a)			349		348,738
Entergy Corp. 1.90%, 06/15/2028			785		769,638
					1,952,030
Other Utility – 0.1%
American Water Capital Corp. 3.45%, 06/01/2029			151		165,089
					2,117,119
Total Corporates – Investment Grade (cost $83,050,451)					85,278,782
COMMERCIAL MORTGAGE-BACKED SECURITIES – 16.9%
Non-Agency Fixed Rate CMBS – 12.7%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(a)			960		877,001
Banc of America Commercial Mortgage Trust Series 2015-UBS7, Class AS 3.989%, 09/15/2048			860		923,251
CFCRE Commercial Mortgage Trust Series 2016-C4, Class A4 3.283%, 05/10/2058			735		779,687

24    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C4, Class AM 3.691%, 05/10/2058	U.S.$		375	$	397,846
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 03/13/2035(a)			1,305		1,337,924
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			500		515,400
Series 2013-GC17, Class D 5.108%, 11/10/2046(a)			565		533,147
Series 2015-GC27, Class A5 3.137%, 02/10/2048			1,223		1,282,967
Series 2015-GC35, Class A4 3.818%, 11/10/2048			340		368,028
Series 2016-GC36, Class A5 3.616%, 02/10/2049			425		458,082
Series 2018-B2, Class A4 4.009%, 03/10/2051			1,050		1,178,047
COMM Mortgage Trust Series 2013-LC6, Class B 3.739%, 01/10/2046			1,580		1,619,514
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(a)			114		114,373
Series 2014-LC17, Class B 4.49%, 10/10/2047			800		858,653
Series 2014-UBS6, Class AM 4.048%, 12/10/2047			375		397,961
Series 2015-CR24, Class A5 3.696%, 08/10/2048			430		462,099
Series 2015-CR25, Class A4 3.759%, 08/10/2048			1,045		1,128,680
Series 2015-DC1, Class A5 3.35%, 02/10/2048			765		808,921
Series 2015-PC1, Class A5 3.902%, 07/10/2050			685		737,717
CSAIL Commercial Mortgage Trust Series 2015-C2, Class A4 3.504%, 06/15/2057			332		353,189
Series 2015-C3, Class A4 3.718%, 08/15/2048			573		615,189
Series 2015-C4, Class A4 3.808%, 11/15/2048			1,450		1,570,830
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.159%, 08/10/2044(a)			252		120,790

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2012-GC6, Class B 5.844%, 01/10/2045(a)	U.S.$		600	$	599,949
Series 2012-GCJ9, Class AS 3.124%, 11/10/2045			762		776,643
Series 2013-G1, Class A2 3.557%, 04/10/2031(a)			766		767,211
Series 2014-GC22, Class A5 3.862%, 06/10/2047			658		699,386
Series 2018-GS9, Class A4 3.992%, 03/10/2051			1,125		1,257,707
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(d)(e)			102		100,977
Series 2021-1, Class A2 2.435%, 08/15/2026(d)(e)			204		208,183
Series 2021-1, Class AS 2.638%, 08/15/2026(d)(e)			25		25,454
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class A5 3.775%, 08/15/2047			735		780,949
Series 2014-C24, Class C 4.403%, 11/15/2047			890		865,407
Series 2015-C30, Class A5 3.822%, 07/15/2048			425		460,026
Series 2015-C31, Class A3 3.801%, 08/15/2048			1,005		1,077,907
Series 2015-C33, Class A4 3.77%, 12/15/2048			1,050		1,140,904
JPMCC Commercial Mortgage Securities Trust Series 2017-JP7, Class XA 1.039%, 09/15/2050(f)			4,642		203,233
JPMorgan Chase Commercial Mortgage Securities Trust Series 2011-C5, Class D 5.566%, 08/15/2046(a)			53		52,115
Series 2012-C6, Class D 5.139%, 05/15/2045			690		668,685
Series 2012-C6, Class E 5.139%, 05/15/2045(a)			389		290,763
Series 2012-C8, Class AS 3.424%, 10/15/2045(a)			850		864,051
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			77		34,696

26    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
LSTAR Commercial Mortgage Trust Series 2016-4, Class A2 2.579%, 03/10/2049(a)	U.S.$		528	$	535,635
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C16, Class A5 3.892%, 06/15/2047			730		773,987
Morgan Stanley Capital I Trust Series 2016-UB12, Class A4 3.596%, 12/15/2049			660		716,554
UBS Commercial Mortgage Trust Series 2018-C10, Class A4 4.313%, 05/15/2051			750		848,962
Series 2018-C8, Class A4 3.983%, 02/15/2051			720		800,509
Series 2018-C9, Class A4 4.117%, 03/15/2051			1,300		1,448,917
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class A5 2.85%, 12/10/2045			1,098		1,115,936
Wells Fargo Commercial Mortgage Trust Series 2015-C27, Class A5 3.451%, 02/15/2048			1,040		1,104,924
Series 2015-SG1, Class A4 3.789%, 09/15/2048			715		761,034
Series 2016-C35, Class XA 1.893%, 07/15/2048(f)			3,442		247,553
Series 2016-LC24, Class XA 1.616%, 10/15/2049(f)			8,228		525,577
Series 2016-LC25, Class C 4.352%, 12/15/2059			545		573,273
Series 2016-NXS6, Class C 4.297%, 11/15/2049			600		635,568
Series 2018-C43, Class A4 4.012%, 03/15/2051			900		1,005,557
Series 2018-C48, Class A5 4.302%, 01/15/2052			89		102,083
WF-RBS Commercial Mortgage Trust Series 2013-C11, Class B 3.714%, 03/15/2045			480		491,016
Series 2013-C11, Class XA 1.133%, 03/15/2045(a)(f)			6,030		61,659
Series 2014-C24, Class AS 3.931%, 11/15/2047			945		992,191
					41,054,477

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Floating Rate CMBS – 4.2%
Ashford Hospitality Trust Series 2018-KEYS, Class A 1.09% (LIBOR 1 Month + 1.00%), 06/15/2035(a)(c)	U.S.$		526	$	526,030
Atrium Hotel Portfolio Trust Series 2018-ATRM, Class A 1.04% (LIBOR 1 Month + 0.95%), 06/15/2035(a)(c)			750		749,536
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 1.091% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(c)			1,330		1,327,533
BBCMS Mortgage Trust Series 2020-BID, Class A 2.23% (LIBOR 1 Month + 2.14%), 10/15/2037(a)(c)			692		695,055
BCP Trust Series 2021-330N, Class A 0.889% (LIBOR 1 Month + 0.80%), 06/15/2038(a)(c)			135		134,563
BFLD Trust Series 2021-FPM, Class A 1.691% (LIBOR 1 Month + 1.60%), 06/15/2038(a)(c)			1,060		1,059,680
BHMS Series 2018-ATLS, Class A 1.34% (LIBOR 1 Month + 1.25%), 07/15/2035(a)(c)			547		547,262
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 0.91% (LIBOR 1 Month + 0.82%), 06/15/2035(a)(c)			700		699,574
BX Commercial Mortgage Trust Series 2019-IMC, Class D 1.99% (LIBOR 1 Month + 1.90%), 04/15/2034(a)(c)			142		140,939
Series 2019-IMC, Class E 2.24% (LIBOR 1 Month + 2.15%), 04/15/2034(a)(c)			566		561,990
BX Trust Series 2018-EXCL, Class A 1.178% (LIBOR 1 Month + 1.09%), 09/15/2037(a)(c)			709		705,373

28    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CLNY Trust Series 2019-IKPR, Class D 2.115% (LIBOR 1 Month + 2.03%), 11/15/2038(a)(c)	U.S.$		540	$	537,290
DBWF Mortgage Trust Series 2018-GLKS, Class A 1.11% (LIBOR 1 Month + 1.03%), 12/19/2030(a)(c)			541		539,940
Federal Home Loan Mortgage Corp. Series 2021-MN1, Class M1 2.049% (SOFR + 2.00%), 01/25/2051(a)(c)			136		137,510
Great Wolf Trust Series 2019-WOLF, Class A 1.124% (LIBOR 1 Month + 1.03%), 12/15/2036(a)(c)			1,019		1,018,350
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 1.29% (LIBOR 1 Month + 1.20%), 06/15/2038(a)(c)			725		725,752
Series 2019-SMP, Class A 1.24% (LIBOR 1 Month + 1.15%), 08/15/2032(a)(c)			700		700,554
HFX Funding Series 2017-1A, Class A3 3.647%, 03/15/2035(e)			710		729,415
Invitation Homes Trust Series 2018-SFR2, Class C 1.37% (LIBOR 1 Month + 1.28%), 06/17/2037(a)(c)			206		206,368
Series 2018-SFR3, Class C 1.386% (LIBOR 1 Month + 1.30%), 07/17/2037(a)(c)			390		390,600
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.04% (LIBOR 1 Month + 1.95%), 11/15/2026(c)(e)			154		141,229
Series 2019-BPR, Class C 3.14% (LIBOR 1 Month + 3.05%), 05/15/2036(a)(c)			520		466,797
Natixis Commercial Mortgage Securities Trust Series 2019-MILE, Class A 1.59% (LIBOR 1 Month + 1.50%), 07/15/2036(a)(c)			379		379,117

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Starwood Retail Property Trust Series 2014-STAR, Class A 1.56% (LIBOR 1 Month + 1.47%), 11/15/2027(a)(c)	U.S.$		828	$	504,793
					13,625,250
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-39, Class IO 0.00%, 07/16/2046(f)			664		6
Total Commercial Mortgage-Backed Securities (cost $53,975,863)					54,679,733
COLLATERALIZED MORTGAGE OBLIGATIONS – 16.2%
Risk Share Floating Rate – 13.3%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 1.939% (LIBOR 1 Month + 1.85%), 10/25/2028(a)(c)			445		444,763
Series 2018-3A, Class M2 2.839% (LIBOR 1 Month + 2.75%), 10/25/2028(a)(c)			325		325,876
Series 2019-1A, Class M1B 1.839% (LIBOR 1 Month + 1.75%), 03/25/2029(a)(c)			968		967,653
Series 2019-2A, Class M1C 2.089% (LIBOR 1 Month + 2.00%), 04/25/2029(a)(c)			487		488,371
Series 2019-2A, Class M2 3.189% (LIBOR 1 Month + 3.10%), 04/25/2029(a)(c)			325		328,802
Series 2019-3A, Class M1B 1.689% (LIBOR 1 Month + 1.60%), 07/25/2029(a)(c)			359		359,928
Series 2019-3A, Class M1C 2.039% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(c)			263		263,000
Series 2019-4A, Class M1B 2.089% (LIBOR 1 Month + 2.00%), 10/25/2029(a)(c)			885		885,551
Series 2019-4A, Class M1C 2.589% (LIBOR 1 Month + 2.50%), 10/25/2029(a)(c)			750		755,830
Series 2019-4A, Class M2 2.939% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(c)			540		546,376

30    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-2A, Class M1B 3.289% (LIBOR 1 Month + 3.20%), 08/26/2030(a)(c)	U.S.$		108	$	108,247
Series 2020-4A, Class M2A 2.689% (LIBOR 1 Month + 2.60%), 06/25/2030(a)(c)			95		95,087
Series 2021-1A, Class M1C 2.999% (SOFR + 2.95%), 03/25/2031(a)(c)			398		411,938
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 2.489% (LIBOR 1 Month + 2.40%), 04/25/2031(a)(c)			84		84,175
Series 2019-R01, Class 2M2 2.539% (LIBOR 1 Month + 2.45%), 07/25/2031(a)(c)			247		248,776
Series 2019-R02, Class 1M2 2.389% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(c)			68		68,034
Series 2019-R06, Class 2M2 2.189% (LIBOR 1 Month + 2.10%), 09/25/2039(a)(c)			209		209,688
Series 2020-R01, Class 1B1 3.339% (LIBOR 1 Month + 3.25%), 01/25/2040(a)(c)			500		502,021
Series 2020-SBT1, Class 1M2 3.739% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			1,000		1,041,450
Series 2020-SBT1, Class 2M2 3.739% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			300		314,145
Eagle Re Ltd. Series 2018-1, Class M2 3.089% (LIBOR 1 Month + 3.00%), 11/25/2028(a)(c)			325		326,621
Series 2019-1, Class M2 3.389% (LIBOR 1 Month + 3.30%), 04/25/2029(a)(c)			325		329,280
Series 2020-1, Class M1A 0.989% (LIBOR 1 Month + 0.90%), 01/25/2030(a)(c)			950		940,755
Series 2020-2, Class M1B 4.089% (LIBOR 1 Month + 4.00%), 10/25/2030(a)(c)			253		252,956
Series 2021-2, Class M1B 2.099% (SOFR + 2.05%), 04/25/2034(a)(c)			254		253,783

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 4.889% (LIBOR 1 Month + 4.80%), 05/25/2028(c)	U.S.$		311	$	320,161
Series 2016-DNA4, Class M3 3.889% (LIBOR 1 Month + 3.80%), 03/25/2029(c)			833		861,003
Series 2016-HQA3, Class M3 3.939% (LIBOR 1 Month + 3.85%), 03/25/2029(c)			1,114		1,149,658
Series 2017-DNA2, Class B1 5.239% (LIBOR 1 Month + 5.15%), 10/25/2029(c)			750		820,000
Series 2017-DNA3, Class M2 2.589% (LIBOR 1 Month + 2.50%), 03/25/2030(c)			250		255,340
Series 2017-HQA1, Class M2 3.639% (LIBOR 1 Month + 3.55%), 08/25/2029(c)			826		853,835
Series 2017-HQA2, Class B1 4.839% (LIBOR 1 Month + 4.75%), 12/25/2029(c)			800		867,745
Series 2017-HQA2, Class M2 2.739% (LIBOR 1 Month + 2.65%), 12/25/2029(c)			225		229,681
Series 2017-HQA2, Class M2B 2.739% (LIBOR 1 Month + 2.65%), 12/25/2029(c)			560		572,528
Series 2017-HQA3, Class B1 4.539% (LIBOR 1 Month + 4.45%), 04/25/2030(c)			750		792,530
Series 2018-HQA2, Class B1 4.339% (LIBOR 1 Month + 4.25%), 10/25/2048(a)(c)			1,250		1,305,522
Series 2019-DNA1, Class B2 10.839% (LIBOR 1 Month + 10.75%), 01/25/2049(a)(c)			750		850,262
Series 2019-DNA1, Class M2 2.739% (LIBOR 1 Month + 2.65%), 01/25/2049(a)(c)			931		942,097
Series 2019-DNA3, Class B1 3.339% (LIBOR 1 Month + 3.25%), 07/25/2049(a)(c)			600		608,354
Series 2019-FTR2, Class B1 3.089% (LIBOR 1 Month + 3.00%), 11/25/2048(a)(c)			750		732,774

32    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-FTR2, Class M2 2.239% (LIBOR 1 Month + 2.15%), 11/25/2048(a)(c)	U.S.$		895	$	895,557
Series 2019-FTR3, Class B2 4.886% (LIBOR 1 Month + 4.80%), 09/25/2047(c)(e)			700		688,602
Series 2019-HQA2, Class B1 4.189% (LIBOR 1 Month + 4.10%), 04/25/2049(a)(c)			750		772,212
Series 2019-HQA3, Class B1 3.089% (LIBOR 1 Month + 3.00%), 09/25/2049(a)(c)			500		504,579
Series 2019-HQA4, Class B1 3.039% (LIBOR 1 Month + 2.95%), 11/25/2049(a)(c)			750		753,896
Series 2020-DNA5, Class M2 2.849% (SOFR + 2.80%), 10/25/2050(a)(c)			524		529,915
Series 2021-DNA3, Class B1 3.549% (SOFR + 3.50%), 10/25/2033(a)(c)			651		676,364
Series 2021-DNA6, Class M2 1.548% (SOFR + 1.50%), 10/25/2041(a)(c)			828		829,340
Federal National Mortgage Association Connecticut Avenue Securities Series 2015-C02, Class 1M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			157		160,426
Series 2015-C02, Class 2M2 4.089% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			18		18,084
Series 2015-C03, Class 1M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			158		162,098
Series 2015-C03, Class 2M2 5.089% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			36		36,333
Series 2015-C04, Class 1M2 5.789% (LIBOR 1 Month + 5.70%), 04/25/2028(c)			393		416,145
Series 2016-C02, Class 1B 12.339% (LIBOR 1 Month + 12.25%), 09/25/2028(c)			149		172,643
Series 2016-C03, Class 1B 11.839% (LIBOR 1 Month + 11.75%), 10/25/2028(c)			99		114,436

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C05, Class 2M2 4.539% (LIBOR 1 Month + 4.45%), 01/25/2029(c)	U.S.$		580	$	603,244
Series 2016-C06, Class 1B 9.339% (LIBOR 1 Month + 9.25%), 04/25/2029(c)			377		413,674
Series 2016-C06, Class 1M2 4.339% (LIBOR 1 Month + 4.25%), 04/25/2029(c)			270		280,416
Series 2016-C07, Class 2B 9.589% (LIBOR 1 Month + 9.50%), 05/25/2029(c)			378		406,483
Series 2017-C01, Class 1B1 5.839% (LIBOR 1 Month + 5.75%), 07/25/2029(c)			750		827,491
Series 2017-C01, Class 1M2 3.639% (LIBOR 1 Month + 3.55%), 07/25/2029(c)			314		323,843
Series 2017-C02, Class 2B1 5.589% (LIBOR 1 Month + 5.50%), 09/25/2029(c)			750		825,290
Series 2017-C02, Class 2M2C 3.739% (LIBOR 1 Month + 3.65%), 09/25/2029(c)			618		643,590
Series 2017-C03, Class 1M2 3.089% (LIBOR 1 Month + 3.00%), 10/25/2029(c)			646		665,732
Series 2017-C04, Class 2M2 2.939% (LIBOR 1 Month + 2.85%), 11/25/2029(c)			268		275,249
Series 2017-C06, Class 2B1 4.539% (LIBOR 1 Month + 4.45%), 02/25/2030(c)			750		785,609
Series 2017-C07, Class 1B1 4.089% (LIBOR 1 Month + 4.00%), 05/25/2030(c)			305		318,790
Series 2017-C07, Class 2B1 4.539% (LIBOR 1 Month + 4.45%), 05/25/2030(c)			750		783,635
Home Re Ltd. Series 2020-1, Class M1B 3.339% (LIBOR 1 Month + 3.25%), 10/25/2030(a)(c)			509		510,174
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-CH1, Class M2 4.339% (LIBOR 1 Month + 4.25%), 11/25/2024(c)(e)			28		27,082

34    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Mortgage Insurance-Linked Notes Series 2019-1, Class M2 2.989% (LIBOR 1 Month + 2.90%), 11/26/2029(a)(c)	U.S.$		661	$	661,449
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.088% (LIBOR 1 Month + 2.00%), 03/27/2024(a)(c)			210		209,708
Series 2019-2R, Class A 2.838% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(c)			370		366,216
Series 2019-3R, Class A 2.788% (LIBOR 1 Month + 2.70%), 10/27/2022(a)(c)			171		171,455
Series 2020-1R, Class A 2.438% (LIBOR 1 Month + 2.35%), 02/27/2023(c)(e)			277		276,765
Radnor Re Ltd. Series 2019-1, Class M1B 2.039% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(c)			635		635,743
Series 2019-2, Class M1B 1.839% (LIBOR 1 Month + 1.75%), 06/25/2029(a)(c)			351		351,366
Series 2020-1, Class M1A 1.039% (LIBOR 1 Month + 0.95%), 01/25/2030(a)(c)			900		893,289
Series 2020-1, Class M2A 2.089% (LIBOR 1 Month + 2.00%), 01/25/2030(a)(c)			850		850,000
Series 2020-2, Class M1C 4.689% (LIBOR 1 Month + 4.60%), 10/25/2030(a)(c)			284		284,379
Traingle Re Ltd. Series 2020-1, Class M1B 3.989% (LIBOR 1 Month + 3.90%), 10/25/2030(a)(c)			1,075		1,076,658
Series 2021-1, Class M1B 3.089% (LIBOR 1 Month + 3.00%), 08/25/2033(a)(c)			378		377,553
Series 2021-3, Class M1B 2.949% (SOFR + 2.90%), 02/25/2034(a)(c)			530		527,354
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.339% (LIBOR 1 Month + 5.25%), 11/25/2025(c)(e)			160		154,288

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-WF1, Class 2M2 5.589% (LIBOR 1 Month + 5.50%), 11/25/2025(c)(e)	U.S.$		40	$	39,369
					43,011,120
Non-Agency Fixed Rate – 1.4%
Alternative Loan Trust Series 2006-24CB, Class A16 5.75%, 08/25/2036			212		161,870
Series 2006-28CB, Class A14 6.25%, 10/25/2036			155		112,594
Series 2006-J1, Class 1A13 5.50%, 02/25/2036			96		86,207
Bayview MSR Opportunity Master Fund Trust Series 2021-2, Class A2 2.50%, 06/25/2051(a)			252		254,729
CIM Trust Series 2021-INV1, Class A2 2.50%, 07/01/2051(a)			628		635,565
Countrywide Home Loan Mortgage Pass-Through Trust Series 2006-13, Class 1A19 6.25%, 09/25/2036			51		32,319
First Horizon Alternative Mortgage Securities Trust Series 2006-FA3, Class A9 6.00%, 07/25/2036			178		116,588
Flagstar Mortgage Trust Series 2021-8INV, Class A3 2.50%, 09/25/2051(a)			558		565,628
JPMorgan Alternative Loan Trust Series 2006-A3, Class 2A1 3.169%, 07/25/2036			416		356,677
Mello Mortgage Capital Acceptance Series 2021-INV2, Class A3 2.50%, 08/25/2051(a)			530		534,925
New Residential Mortgage Loan Trust Series 2021-INV1, Class A2 2.50%, 06/25/2051(a)			787		797,981
Structured Asset Securities Corp. Mortgage Pass-Through Certificates Series 2002-3, Class B3 6.50%, 03/25/2032			452		210,668
United Wholesale Mortgage Trust Series 2021-INV1, Class A3 2.50%, 08/25/2051(a)			689		696,142
					4,561,893

36    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Agency Floating Rate – 0.7%
Federal Home Loan Mortgage Corp. REMICs Series 4719, Class JS 6.06% (6.15% – LIBOR 1 Month), 09/15/2047(c)(g)	U.S.$		872	$	163,635
Series 4981, Class HS 6.011% (6.10% – LIBOR 1 Month), 06/25/2050(c)(g)			2,719		430,189
Federal National Mortgage Association REMICs Series 2011-131, Class ST 6.451% (6.54% – LIBOR 1 Month), 12/25/2041(c)(g)			558		114,844
Series 2015-90, Class SL 6.061% (6.15% – LIBOR 1 Month), 12/25/2045(c)(g)			1,125		223,000
Series 2016-77, Class DS 5.911% (6.00% – LIBOR 1 Month), 10/25/2046(c)(g)			877		167,974
Series 2017-26, Class TS 5.861% (5.95% – LIBOR 1 Month), 04/25/2047(c)(g)			1,104		236,201
Series 2017-62, Class AS 6.061% (6.15% – LIBOR 1 Month), 08/25/2047(c)(g)			1,033		210,787
Series 2017-81, Class SA 6.111% (6.20% – LIBOR 1 Month), 10/25/2047(c)(g)			1,161		267,736
Series 2017-97, Class LS 6.111% (6.20% – LIBOR 1 Month), 12/25/2047(c)(g)			1,109		271,288
Government National Mortgage Association Series 2017-65, Class ST 6.064% (6.15% – LIBOR 1 Month), 04/20/2047(c)(g)			1,072		226,483
					2,312,137
Agency Fixed Rate – 0.5%
Federal Home Loan Mortgage Corp. REMICs Series 5015, Class BI 4.00%, 09/25/2050(f)			1,682		284,351
Series 5049, Class CI 3.50%, 12/25/2050(f)			1,831		244,037
Federal National Mortgage Association Grantor Trust Series 2004-T5, Class AB4 0.626%, 05/28/2035			65		63,525

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal National Mortgage Association REMICs Series 2016-31, Class IO 5.00%, 06/25/2046(f)	U.S.$		3,373	$	540,255
Series 2020-89, Class KI 4.00%, 12/25/2050(f)			3,608		536,500
					1,668,668
Non-Agency Floating Rate – 0.3%
Deutsche Alt-A Securities Mortgage Loan Trust Series 2006-AR4, Class A2 0.469% (LIBOR 1 Month + 0.38%), 12/25/2036(c)			479		226,859
HomeBanc Mortgage Trust Series 2005-1, Class A1 0.589% (LIBOR 1 Month + 0.50%), 03/25/2035(c)			108		99,240
Impac Secured Assets Corp. Series 2005-2, Class A2D 0.949% (LIBOR 1 Month + 0.86%), 03/25/2036(c)			185		168,085
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 2.189% (LIBOR 1 Month + 2.10%), 04/25/2047(a)(c)			124		126,006
Residential Accredit Loans, Inc. Trust Series 2007-QS4, Class 2A4 0.429% (LIBOR 1 Month + 0.34%), 03/25/2037(c)			520		90,965
					711,155
Total Collateralized Mortgage Obligations (cost $53,523,384)					52,264,973
GOVERNMENTS - TREASURIES – 10.9%
Malaysia – 0.3%
Malaysia Government Bond Series 117 3.882%, 03/10/2022	MYR		3,708		901,993
United States – 10.6%
U.S. Treasury Bonds 1.75%, 08/15/2041	U.S.$		396		380,243
1.875%, 02/15/2051			6,849		6,730,791
2.00%, 08/15/2051			2,878		2,916,629
3.00%, 05/15/2045			80		95,425
3.125%, 08/15/2044(h)			3,034		3,663,564
U.S. Treasury Notes 0.125%, 08/31/2022(h)			6,132		6,131,700

38    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
1.125%, 02/15/2031	U.S.$		4,704	$	4,542,649
1.25%, 08/15/2031			2,782		2,705,157
1.625%, 05/15/2026			6,105		6,239,399
2.00%, 11/15/2026			965		1,003,205
					34,408,762
Total Governments – Treasuries (cost $34,188,630)					35,310,755
MORTGAGE PASS-THROUGHS – 9.5%
Agency Fixed Rate 30-Year – 8.7%
Federal Home Loan Mortgage Corp. Series 2019 3.50%, 10/01/2049-11/01/2049			609		651,222
Series 2020 3.50%, 01/01/2050			895		965,510
Federal Home Loan Mortgage Corp. Gold Series 2005 5.50%, 01/01/2035			99		113,215
Series 2007 5.50%, 07/01/2035			16		18,339
Series 2016 4.00%, 02/01/2046			648		711,914
Series 2017 4.00%, 07/01/2044			445		486,411
Series 2018 4.50%, 03/01/2048-11/01/2048			1,264		1,380,352
5.00%, 11/01/2048			264		294,618
Federal National Mortgage Association Series 2003 5.50%, 04/01/2033-07/01/2033			99		112,075
Series 2004 5.50%, 04/01/2034-01/01/2035			339		387,709
Series 2005 5.50%, 02/01/2035			41		46,427
Series 2007 5.50%, 08/01/2037			197		224,524
Series 2010 4.00%, 12/01/2040			288		315,267
Series 2012 3.50%, 02/01/2042-01/01/2043			2,320		2,511,337
Series 2013 3.50%, 04/01/2043			1,120		1,212,858
4.00%, 10/01/2043			675		741,065
Series 2016 3.50%, 01/01/2047			529		565,747
Series 2018 4.50%, 09/01/2048			1,259		1,375,242

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019 3.50%, 08/01/2049-11/01/2049	U.S.$		1,777	$	1,899,367
Series 2020 3.50%, 01/01/2050			829		888,494
Government National Mortgage Association Series 2016 3.00%, 04/20/2046-05/20/2046			352		369,181
Uniform Mortgage-Backed Security Series 2021 2.00%, 11/01/2051, TBA			3,645		3,644,146
2.50%, 11/01/2051, TBA			8,985		9,227,614
					28,142,634
Agency Fixed Rate 15-Year – 0.8%
Federal National Mortgage Association Series 2016 2.50%, 08/01/2031-01/01/2032			1,749		1,822,401
Series 2017 2.50%, 02/01/2032			733		763,580
					2,585,981
Agency ARMs – 0.0%
Federal Home Loan Mortgage Corp. Series 2006 2.375% (LIBOR 12 Month + 2.00%), 01/01/2037(c)			17		18,127
Other Agency Fixed Rate Programs – 0.0%
Federal Home Loan Mortgage Corp. Series 2012 2.50%, 05/01/2022			6		5,745
Total Mortgage Pass-Throughs (cost $30,071,196)					30,752,487
ASSET-BACKED SECURITIES – 4.3%
Autos - Fixed Rate – 2.2%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class A 3.70%, 09/20/2024(a)			920		963,654
Series 2018-2A, Class A 4.00%, 03/20/2025(a)			755		802,419
Carvana Auto Receivables Trust Series 2021-N3, Class C 1.02%, 06/12/2028			313		311,135
CPS Auto Receivables Trust Series 2021-C, Class D 1.69%, 06/15/2027(a)			470		466,717

40    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Exeter Automobile Receivables Trust Series 2017-3A, Class C 3.68%, 07/17/2023(a)	U.S.$		167	$	169,079
FHF Trust Series 2021-2A, Class A 0.83%, 12/15/2026(a)			318		316,508
First Investors Auto Owner Trust Series 2018-1A, Class E 5.35%, 07/15/2024(a)			1,000		1,024,748
Series 2020-1A, Class A 1.49%, 01/15/2025(a)			92		92,529
Flagship Credit Auto Trust Series 2019-3, Class E 3.84%, 12/15/2026(a)			960		987,405
Series 2020-1, Class E 3.52%, 06/15/2027(a)			1,000		1,016,699
Ford Credit Auto Owner Trust Series 2021-1, Class D 2.31%, 10/17/2033(a)			542		537,881
Octane Receivables Trust 2021-2 Series 2021-2A, Class C 2.53%, 05/21/2029(a)			541		540,301
					7,229,075
Other ABS - Fixed Rate – 1.5%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(a)(d)			743		751,736
Affirm Asset Securitization Trust Series 2020-A, Class A 2.10%, 02/18/2025(a)			467		468,956
Series 2021-Z1, Class A 1.07%, 08/15/2025(a)			300		299,665
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(a)			414		423,178
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(a)(d)			295		295,995
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(a)			331		367,338
Series 2020-1A, Class A2 3.981%, 12/20/2050(a)			993		1,050,025
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(a)			302		309,647

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Nelnet Student Loan Trust Series 2021-BA, Class B 2.68%, 04/20/2062(a)	U.S.$		220	$	221,698
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(a)			189		189,407
Series 2021-3, Class B 1.66%, 07/20/2031(a)			480		475,612
					4,853,257
Credit Cards - Fixed Rate – 0.6%
Brex Commercial Charge Card Master Trust Series 2021-1, Class A 2.09%, 07/15/2024(a)			397		400,015
World Financial Network Credit Card Master Trust Series 2019-A, Class M 3.61%, 12/15/2025			780		786,021
Series 2019-B, Class M 3.04%, 04/15/2026			600		609,528
					1,795,564
Home Equity Loans - Floating Rate – 0.0%
ABFC Trust Series 2003-WF1, Class A2 1.214% (LIBOR 1 Month + 1.13%), 12/25/2032(c)			14		13,907
Total Asset-Backed Securities (cost $13,669,265)					13,891,803
CORPORATES - NON-INVESTMENT GRADE – 4.1%
Industrial – 2.9%
Basic – 0.5%
Axalta Coating Systems LLC 3.375%, 02/15/2029(a)			557		529,947
INEOS Quattro Finance 2 PLC 2.50%, 01/15/2026(a)	EUR		313		360,923
Ingevity Corp. 3.875%, 11/01/2028(a)	U.S.$		453		445,607
Sealed Air Corp. 4.00%, 12/01/2027(a)			379		398,227
					1,734,704
Capital Goods – 0.1%
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 3.25%, 09/01/2028(a)			485		474,883

42    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Media – 0.3%
Cable One, Inc. 4.00%, 11/15/2030(a)	U.S.$		326	$	320,471
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030-06/01/2033(a)			619		620,286
CSC Holdings LLC 6.75%, 11/15/2021			120		120,143
					1,060,900
Communications - Telecommunications – 0.2%
Lumen Technologies, Inc. 4.50%, 01/15/2029(a)			545		526,492
Consumer Cyclical - Automotive – 0.2%
Allison Transmission, Inc. 3.75%, 01/30/2031(a)			554		532,433
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(a)	EUR		130		153,796
					686,229
Consumer Cyclical - Entertainment – 0.7%
Carnival Corp. 4.00%, 08/01/2028(a)	U.S.$		712		711,544
Mattel, Inc. 3.375%, 04/01/2026(a)			311		320,619
3.75%, 04/01/2029(a)			310		322,109
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(a)			364		407,498
11.50%, 06/01/2025(a)			391		445,126
					2,206,896
Consumer Cyclical - Restaurants – 0.2%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(a)			685		663,779
Consumer Cyclical - Retailers – 0.1%
Levi Strauss & Co. 3.50%, 03/01/2031(a)			382		386,893
Consumer Non-Cyclical – 0.4%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(a)			373		367,602
Mozart Debt Merger Sub, Inc. 3.875%, 04/01/2029(a)			530		527,451
Newell Brands, Inc. 4.70%, 04/01/2026			261		285,902

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
4.875%, 06/01/2025	U.S.$		65	$	71,168
					1,252,123
Energy – 0.2%
Transocean Poseidon Ltd. 6.875%, 02/01/2027(a)			225		224,982
Venture Global Calcasieu Pass LLC 3.875%, 08/15/2029(a)			147		149,726
4.125%, 08/15/2031(a)			149		154,340
					529,048
					9,521,947
Financial Institutions – 1.0%
Banking – 0.8%
Credit Suisse Group AG 7.50%, 07/17/2023(a)(b)			1,020		1,085,739
Discover Financial Services Series D 6.125%, 06/23/2025(b)			1,087		1,213,679
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			288		310,400
					2,609,818
Finance – 0.2%
SLM Corp. 4.20%, 10/29/2025			587		620,741
					3,230,559
Utility – 0.2%
Electric – 0.2%
Vistra Operations Co. LLC 4.375%, 05/01/2029(a)			536		529,204
Total Corporates – Non-Investment Grade (cost $13,022,066)					13,281,710
COLLATERALIZED LOAN OBLIGATIONS – 3.4%
CLO - Floating Rate – 3.4%
AGL CLO 12 Ltd. Series 2021-12A, Class D 2.98% (LIBOR 3 Month + 2.85%), 07/20/2034(a)(c)			500		498,369
Balboa Bay Loan Funding Ltd. Series 2021-1A, Class D 3.19% (LIBOR 3 Month + 3.05%), 07/20/2034(a)(c)			709		709,447
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 3.035% (LIBOR 3 Month + 2.90%), 07/20/2034(a)(c)			400		400,036

44    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Elevation CLO Ltd. Series 2020-11A, Class D1 3.974% (LIBOR 3 Month + 3.85%), 04/15/2033(a)(c)	U.S.$		1,000	$	1,002,431
Elmwood CLO IX Ltd. Series 2021-2A, Class D 3.089% (LIBOR 3 Month + 2.95%), 07/20/2034(a)(c)			700		700,074
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 3.051% (LIBOR 1 Month + 2.90%), 07/19/2034(a)(c)			700		692,171
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 1.202% (LIBOR 3 Month + 1.07%), 04/20/2034(a)(c)			581		581,731
Magnetite XXVI Ltd. Series 2020-26A, Class A1R 1.21% (LIBOR 3 Month + 1.12%), 07/25/2034(a)(c)			998		1,001,613
Neuberger Berman Loan Advisers CLO 42 Ltd. Series 2021-42A, Class D 2.922% (LIBOR 3 Month + 2.80%), 07/16/2035(a)(c)			698		690,599
Series 2021-43A, Class D 3.212% (LIBOR 3 Month + 3.10%), 07/17/2035(a)(c)			350		351,039
OCP CLO Ltd. Series 2020-18A, Class AR 1.222% (LIBOR 3 Month + 1.09%), 07/20/2032(a)(c)			761		761,890
Peace Park CLO Ltd. Series 2021-1A, Class D 3.088% (LIBOR 3 Month + 2.95%), 10/20/2034(a)(c)			300		299,994
Pikes Peak CLO 8 Series 2021-8A, Class A 1.322% (LIBOR 3 Month + 1.17%), 07/20/2034(a)(c)			675		675,572
Regatta XX Funding Ltd. Series 2021-2A, Class A 1.244% (LIBOR 3 Month + 1.16%), 10/15/2034(a)(c)			1,019		1,020,181
Rockford Tower CLO Ltd. Series 2021-1A, Class D 3.132% (LIBOR 3 Month + 3.00%), 07/20/2034(a)(c)			711		710,639

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2021-2A, Class A1 1.273% (LIBOR 3 Month + 1.16%), 07/20/2034(a)(c)	U.S.$		504	$	504,091
Voya CLO Ltd. Series 2019-1A, Class DR 2.974% (LIBOR 3 Month + 2.85%), 04/15/2031(a)(c)			210		205,739
					10,805,616
CLO - Fixed Rate – 0.0%
CAJUN Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(a)			141		141,000
Total Collateralized Loan Obligations (cost $10,957,096)					10,946,616
INFLATION-LINKED SECURITIES – 3.1%
Canada – 0.6%
Canadian Government Real Return Bond 1.50%, 12/01/2044	CAD		1,855		1,877,219
United States – 2.5%
U.S. Treasury Inflation Index 0.125%, 01/15/2031 (TIPS)	U.S.$		757		838,168
0.375%, 01/15/2027 (TIPS)			6,535		7,239,836
					8,078,004
Total Inflation-Linked Securities (cost $10,006,182)					9,955,223
EMERGING MARKETS - CORPORATE BONDS – 1.2%
Industrial – 1.2%
Basic – 0.3%
CSN Resources SA 4.625%, 06/10/2031(a)			261		256,041
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(a)			377		407,631
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			160		155,830
					819,502
Capital Goods – 0.4%
Cemex SAB de CV 3.875%, 07/11/2031(a)			572		571,600
Embraer Netherlands Finance BV 5.40%, 02/01/2027			540		563,490
6.95%, 01/17/2028(a)			219		242,652

46    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(a)	U.S.$		477	$	1,193
					1,378,935
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a)			417		402,405
Consumer Cyclical - Other – 0.1%
Wynn Macau Ltd. 5.625%, 08/26/2028(a)			330		305,128
Consumer Non-Cyclical – 0.2%
BRF GmbH 4.35%, 09/29/2026(a)			349		352,446
Natura Cosmeticos SA 4.125%, 05/03/2028(a)			283		280,113
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(e)(i)(j)			660		6,617
					639,176
Services – 0.1%
MercadoLibre, Inc. 2.375%, 01/14/2026			200		194,125
					3,739,271
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 03/01/2026(e)			60		61,491
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(a)(k)			183		14,255
7.125%, 12/26/2046(a)(k)			223		16,504
					30,759
Total Emerging Markets – Corporate Bonds (cost $4,640,774)					3,831,521
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.9%
United States – 0.9%
State of California
Series 2010
7.625%, 03/01/2040			970		1,619,480
Tobacco Settlement Finance Authority/WV
Series 2020
3.00%, 06/01/2035			431		441,636

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
University of California Series 2021-B 3.071%, 05/15/2051	U.S.$		730	$	745,639
Total Local Governments – US Municipal Bonds (cost $2,518,757)					2,806,755
QUASI-SOVEREIGNS – 0.7%
Quasi-Sovereign Bonds – 0.7%
Indonesia – 0.1%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(a)			407		436,101
Mexico – 0.3%
Comision Federal de Electricidad 3.348%, 02/09/2031(a)			653		631,287
Petroleos Mexicanos 6.75%, 09/21/2047			392		345,450
6.84%, 01/23/2030			15		15,649
					992,386
Peru – 0.3%
Corp. Financiera de Desarrollo SA 2.40%, 09/28/2027(a)			808		790,073
Total Quasi-Sovereigns (cost $2,228,419)					2,218,560
EMERGING MARKETS - SOVEREIGNS – 0.6%
Dominican Republic – 0.2%
Dominican Republic International Bond 4.875%, 09/23/2032(a)			763		775,065
Egypt – 0.2%
Egypt Government International Bond 5.875%, 02/16/2031(a)			765		687,544
Oman – 0.2%
Oman Government International Bond 4.875%, 02/01/2025(a)			380		396,459
6.25%, 01/25/2031(a)			245		264,676
					661,135
Total Emerging Markets – Sovereigns (cost $2,144,935)					2,123,744

48    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - SOVEREIGN BONDS – 0.3%
Colombia – 0.1%
Colombia Government International Bond 3.125%, 04/15/2031	U.S.$		375	$	351,867
Qatar – 0.1%
Qatar Government International Bond 3.40%, 04/16/2025(a)			252		269,215
Saudi Arabia – 0.1%
Saudi Government International Bond 2.90%, 10/22/2025(a)			453		478,141
Total Governments – Sovereign Bonds (cost $1,077,594)					1,099,223
		Shares
COMMON STOCKS – 0.3%
Financials – 0.3%
Insurance – 0.3%
Mt Logan Re Ltd. (Preference Shares)(d)(j)(l)(m) (cost $945,040)			944		993,334
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 4.3%
U.S. Treasury Bills – 2.7%
U.S. Treasury Bill Zero Coupon, 11/26/2021-05/19/2022 (cost $8,638,543)	U.S.$		8,640		8,637,886
		Shares
Investment Companies – 1.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.01%(n)(o)(p) (cost $5,229,283)			5,229,283		5,229,283
Total Short-Term Investments (cost $13,867,826)					13,867,169
Total Investments – 103.1% (cost $329,887,478)					333,302,388
Other assets less liabilities – (3.1)%					(10,131,034	)
Net Assets – 100.0%				$	323,171,354

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		44	December 2021	$	6,381,375	$	(49,936	)
U.S. T-Note 2 Yr (CBT) Futures		241	December 2021		52,839,250		(172,780	)
U.S. T-Note 5 Yr (CBT) Futures		148	December 2021		18,019,000		(176,791	)
U.S. Ultra Bond (CBT) Futures		133	December 2021		26,122,031		(33,916	)
						$	(433,423	)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Barclays Bank PLC	CAD	11,167	USD	8,769		11/19/2021	$	(254,302	)
Citibank, NA	AUD	9,823	USD	7,079		11/09/2021		(310,629	)
Deutsche Bank AG	USD	3,521	RUB	259,477		12/15/2021		105,026
Goldman Sachs Bank USA	MYR	4,032	USD	970		12/22/2021		(654	)
HSBC Bank USA	USD	648	CAD	802		11/19/2021		432
JPMorgan Chase Bank, NA	SEK	28,800	USD	3,292		01/20/2022		(65,367	)
State Street Bank & Trust Co.	EUR	642	USD	763		11/08/2021		20,579
State Street Bank & Trust Co.	USD	322	AUD	438		11/09/2021		7,357
State Street Bank & Trust Co.	USD	366	SEK	3,139		01/20/2022		5
UBS AG	USD	563	AUD	751		11/09/2021		1,166
UBS AG	RUB	30,545	USD	435		12/15/2021		7,951
							$	(488,436	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 34, 5 Year Index, 06/20/2025*		5.00	%		Quarterly		2.56	%		USD	776	$	68,705	$	31,666	$	37,039
CDX-NAHY Series 37, 5 Year Index, 12/20/2026*		5.00			Quarterly		3.05			USD	2,014		190,058		188,291		1,767
												$	258,763	$	219,957	$	38,806

* Termination date

50    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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

				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	4,300		09/07/2026		CPI#		2.670%	Maturity	$	(105,904	)	$	– 0	–	$	(105,904	)
USD	4,300		09/07/2031		2.519%		CPI#	Maturity		134,540			– 0	–		134,540
									$	28,636		$	– 0	–	$	28,636

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

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				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)
SEK	121,200		08/30/2024		3 Month STIBOR		(0.165)%	Quarterly/Annual	$	(281,295	)	$	– 0	–	$	(281,295	)
USD	2,000		12/13/2029		1.764%		3 Month LIBOR	Semi-Annual/ Quarterly		(54,388	)		– 0	–		(54,388	)
CAD	2,100		03/04/2051		2.333%		3 Month CDOR	Semi-Annual		4,913			– 0	–		4,913
									$	(330,770	)	$	– 0	–	$	(330,770	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)%		Monthly		5.42	%		USD	58	$	4,862	$	11,481	$	(6,619	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	58		4,862		11,490		(6,628	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	697		58,420		135,177		(76,757	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	692		58,002		138,854		(80,852	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	1,743		146,093		341,109		(195,016	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	3,486		292,185		695,086		(402,901	)

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PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	) %		Monthly		5.42	%		USD	433	$	36,294		$	73,929		$	(37,635	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	368		30,845			73,080			(42,235	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	231		19,361			44,118			(24,757	)
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		5.42			USD	462		38,723			92,830			(54,107	)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5		(1,387	)		(771	)		(616	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	5		(1,387	)		(616	)		(771	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	11		(3,052	)		(1,430	)		(1,622	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	13		(3,607	)		(1,501	)		(2,106	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	14		(3,884	)		(1,363	)		(2,521	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	19		(5,270	)		(2,307	)		(2,963	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	23		(6,380	)		(2,885	)		(3,495	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	23		(6,380	)		(2,793	)		(3,587	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	25		(6,936	)		(3,174	)		(3,762	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	34		(9,432	)		(4,850	)		(4,582	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	32		(8,877	)		(3,886	)		(4,991	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	32		(8,878	)		(3,507	)		(5,371	)

52    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	45	$	(12,484	)	$	(5,194	)	$	(7,290	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	46		(12,761	)		(5,041	)		(7,720	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	155		(43,000	)		(10,258	)		(32,742	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	291		(80,729	)		(41,323	)		(39,406	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	1,882		(522,047	)		(73,646	)		(448,401	)
Deutsche Bank AG
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		10.00			USD	850		(85,180	)		(15,916	)		(69,264	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	4		(1,110	)		(438	)		(672	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	52		(14,426	)		(5,835	)		(8,591	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	46		(12,761	)		(2,527	)		(10,234	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	181		(50,213	)		(19,810	)		(30,403	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	322		(89,328	)		(38,838	)		(50,490	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	745		(206,675	)		(49,978	)		(156,697	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	20		(5,549	)		(2,908	)		(2,641	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	26		(7,213	)		(2,230	)		(4,983	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	52		(14,425	)		(4,916	)		(9,509	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	52		(14,425	)		(4,543	)		(9,882	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	90		(24,968	)		(11,048	)		(13,920	)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2021			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		10.00	%		USD	104	$	(28,851	)	$	(10,747	)	$	(18,104	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	224		(62,141	)		(35,044	)		(27,097	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	313		(86,832	)		(49,673	)		(37,159	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	260		(72,128	)		(33,870	)		(38,258	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	219		(60,754	)		(13,897	)		(46,857	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	311		(86,276	)		(25,723	)		(60,553	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	356		(98,761	)		(36,305	)		(62,456	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	760		(210,837	)		(57,914	)		(152,923	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	30		(8,322	)		(2,801	)		(5,521	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	32		(8,876	)		(2,989	)		(5,887	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	61		(16,923	)		(7,451	)		(9,472	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	130		(36,063	)		(15,395	)		(20,668	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	131		(36,342	)		(12,200	)		(24,142	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	374		(103,754	)		(43,903	)		(59,851	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		10.00			USD	800		(221,934	)		(113,169	)		(108,765	)
												$	(1,711,911	)	$	832,541		$	(2,544,452	)

* Termination date

54    ^|    AB TOTAL RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received		Payment Frequency		Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
Pay Total Return on Reference Obligation
Morgan Stanley Capital Services LLC iBoxx $ Liquid High Yield Index		3 Month LIBOR		Maturity		USD	13,086		12/20/2021	$	16,064

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2021, the aggregate market value of these securities amounted to $118,942,708 or 36.8% 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.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2021.

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

(e) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.76% of net assets as of October 31, 2021, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2019-FTR3, Class B2 4.886%, 09/25/2047		01/07/2020	$	732,689	$	688,602		0.21	%
GSF Series 2021-1, Class A1 1.433%, 08/15/2026		02/25/2021		101,111		100,977		0.03	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		209,633		208,183		0.06	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		25,664		25,454		0.01	%
HFX Funding Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		759,076		729,415		0.23	%
JPMorgan Chase Commercial Mortgage Securities Trust Series 2014-CH1, Class M2 4.339%, 11/25/2024		11/06/2015		27,820		27,082		0.01	%
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.04%, 11/15/2026		11/16/2015		153,298		141,229		0.04	%

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.438%, 02/27/2023		02/11/2020	$	276,765	$	276,765		0.09	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		60,000		61,491		0.02	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		365,927		6,617		0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.339%, 11/25/2025		09/28/2015		164,585		154,288		0.05	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 2M2 5.589%, 11/25/2025		09/28/2015		40,371		39,369		0.01	%

(f) IO – Interest Only.

(g) Inverse interest only security.

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

(i) Defaulted matured security.

(j) Non-income producing security.

(k) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2021.

(l) Fair valued by the Adviser.

(m) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		01/02/2014	$	452,350	$	475,622		0.15	%

(n) Affiliated investments.

(o) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

EUR – Euro

MYR – Malaysian Ringgit

RUB – Russian Ruble

SEK – Swedish Krona

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

ARMs – Adjustable Rate Mortgages

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

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

CDX-NAHY – North American High Yield Credit Default Swap Index

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PORTFOLIO OF INVESTMENTS (continued)

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

STIBOR – Stockholm Interbank Offered Rate

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2021

Assets
Investments in securities, at value
Unaffiliated issuers (cost $324,658,195)	$	328,073,105
Affiliated issuers (cost $5,229,283)		5,229,283
Cash		1,179
Cash collateral due from broker		1,948,567
Foreign currencies, at value (cost $85,918)		87,002
Receivable for investment securities sold		5,292,978
Interest receivable		1,627,372
Market value on credit default swaps (net premiums paid $1,617,154)		689,647
Receivable for capital stock sold		251,455
Unrealized appreciation on forward currency exchange contracts		142,516
Receivable for variation margin on futures		27,224
Unrealized appreciation on total return swaps		16,064
Affiliated dividends receivable		19
Total assets		343,386,411
Liabilities
Payable for investment securities purchased		15,724,984
Market value on credit default swaps (net premiums received $784,613)		2,401,558
Unrealized depreciation on forward currency exchange contracts		630,952
Cash collateral due to broker		526,000
Dividends payable		175,544
Payable for capital stock redeemed		160,002
Advisory fee payable		111,571
Distribution fee payable		49,708
Payable for variation margin on centrally cleared swaps		45,070
Foreign capital gains tax payable		38,024
Administrative fee payable		30,586
Transfer Agent fee payable		28,115
Directors’ fees payable		1,888
Accrued expenses		291,055
Total liabilities		20,215,057
Net Assets	$	323,171,354
Composition of Net Assets
Capital stock, at par	$	28,722
Additional paid-in capital		320,851,253
Distributable earnings		2,291,379
Net Assets	$	323,171,354

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	203,167,627		18,059,547	$	11.25	*
C	$	5,682,127		506,201	$	11.23
Advisor	$	102,827,056		9,135,837	$	11.26
R	$	746,332		66,354	$	11.25
K	$	5,736,200		509,439	$	11.26
I	$	1,818,614		161,397	$	11.27
Z	$	3,193,398		283,268	$	11.27

* The maximum offering price per share for Class A shares was $11.75 which reflects a sales charge of 4.25%.

See notes to financial statements.

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STATEMENT OF OPERATIONS

Year Ended October 31, 2021

Investment Income
Interest	$	10,838,131
Dividends
Unaffiliated issuers		19,039
Affiliated issuers		806
Other income		878		$	10,858,854
Expenses
Advisory fee (see Note B)		1,630,465
Distribution fee—Class A		537,607
Distribution fee—Class C		78,501
Distribution fee—Class R		6,380
Distribution fee—Class K		15,715
Transfer agency—Class A		266,010
Transfer agency—Class C		10,000
Transfer agency—Advisor Class		153,582
Transfer agency—Class R		3,318
Transfer agency—Class K		12,572
Transfer agency—Class I		1,552
Transfer agency—Class Z		1,039
Custody and accounting		168,923
Audit and tax		106,340
Registration fees		102,778
Administrative		90,800
Printing		39,311
Legal		38,399
Directors’ fees		23,143
Miscellaneous		26,588
Total expenses		3,313,023
Less: expenses waived and reimbursed by the Adviser (see Note B)		(792,622	)
Net expenses					2,520,401
Net investment income					8,338,453
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					4,891,652
Forward currency exchange contracts					500,925
Futures					(2,298,637	)
Options written					223,716
Swaps					(2,632,174	)
Swaptions written					339,805
Foreign currency transactions					(346,186	)
Net change in unrealized appreciation/depreciation of:
Investments(b)					(4,486,609	)
Forward currency exchange contracts					(728,298	)
Futures					792,675
Options written					(117,383	)
Swaps					275,006
Swaptions written					(34,052	)
Foreign currency denominated assets and liabilities					1,349
Net loss on investment and foreign currency transactions					(3,618,211	)
Net Increase in Net Assets from Operations				$	4,720,242

(a) Net of foreign realized capital gains taxes of $12,427.

(b) Net of increase in accrued foreign capital gains taxes on unrealized gains of $4,501.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2021			Year Ended October 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	8,338,453		$	9,720,991
Net realized gain on investment and foreign currency transactions		679,101			12,753,070
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(4,297,312	)		(7,028,658	)
Net increase in net assets from operations		4,720,242			15,445,403
Distributions to Shareholders
Class A		(8,026,732	)		(6,405,787	)
Class B		– 0	–		(201	)
Class C		(258,221	)		(231,596	)
Advisor Class		(4,899,949	)		(3,763,633	)
Class R		(46,797	)		(68,726	)
Class K		(237,994	)		(197,901	)
Class I		(92,889	)		(89,863	)
Class Z		(208,684	)		(250,502	)
Capital Stock Transactions
Net increase (decrease)		(41,446,404	)		9,467,968
Total increase (decrease)		(50,497,428	)		13,905,162
Net Assets
Beginning of period		373,668,782			359,763,620
End of period	$	323,171,354		$	373,668,782

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2021

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Total Return Bond Portfolio (the “Fund”) (formerly AB Intermediate Bond Portfolio), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class R, Class K, Class I, Class T and Class Z shares. Class B and Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically converted to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares ten years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at 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 Company’s Board of Directors (the “Board”).

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2021:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Corporates – Investment Grade

$

– 0

–

$

85,278,782

$

– 0

–

$

85,278,782

Commercial Mortgage-Backed Securities

– 0

–

54,345,119

334,614

54,679,733

Collateralized Mortgage Obligations

– 0

–

52,264,973

– 0

–

52,264,973

Governments – Treasuries

– 0

–

35,310,755

– 0

–

35,310,755

Mortgage Pass-Throughs

– 0

–

30,752,487

– 0

–

30,752,487

Asset-Backed Securities

– 0

–

12,844,072

1,047,731

13,891,803

Corporates – Non-Investment Grade

– 0

–

13,281,710

– 0

–

13,281,710

Collateralized Loan Obligations

– 0

–

10,946,616

– 0

–

10,946,616

Inflation-Linked Securities

– 0

–

9,955,223

– 0

–

9,955,223

Emerging Markets – Corporate Bonds

– 0

–

3,831,521

– 0

–

3,831,521

Local Governments – US Municipal Bonds

– 0

–

2,806,755

– 0

–

2,806,755

Quasi-Sovereigns

– 0

–

2,218,560

– 0

–

2,218,560

Emerging Markets – Sovereigns

– 0

–

2,123,744

– 0

–

2,123,744

Governments – Sovereign Bonds

– 0

–

1,099,223

– 0

–

1,099,223

Common Stocks

– 0

–

– 0

–

993,334

993,334

Short-Term Investments:

U.S. Treasury Bills

– 0

–

8,637,886

– 0

–

8,637,886

Investment Companies

5,229,283

– 0

–

– 0

–

5,229,283

Total Investments in Securities

5,229,283

325,697,426

2,375,679

333,302,388

Other Financial Instruments(a):

Assets:

Forward Currency Exchange Contracts

– 0

–

142,516

– 0

–

142,516

Centrally Cleared Credit Default Swaps

– 0

–

258,763

– 0

–

258,763

(b)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

134,540

– 0

–

134,540

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

4,913

– 0

–

4,913

(b)

Credit Default Swaps

– 0

–

689,647

– 0

–

689,647

Total Return Swaps

– 0

–

16,064

– 0

–

16,064

Liabilities:

Futures

(433,423

)

– 0

–

– 0

–

(433,423

)(b)

Forward Currency Exchange Contracts

– 0

–

(630,952

)

– 0

–

(630,952

)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(105,904

)

– 0

–

(105,904

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(335,683

)

– 0

–

(335,683

)(b)

Credit Default Swaps

– 0

–

(2,401,558

)

– 0

–

(2,401,558

)

Total

$

4,795,860

$

323,469,772

$

2,375,679

$

330,641,311

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NOTES TO FINANCIAL STATEMENTS (continued)

(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. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

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

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the next $2.5 billion up to $5 billion, .35% of the excess over $5 billion up to $8 billion and .30% in excess of $8 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (which excludes acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the “Expense Caps”) to .77%, 1.52%, .52%, 1.02%, .77%, .52%, and .52% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, and Class Z shares, respectively. This waiver extends through January 31, 2022 and then may be extended by the

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NOTES TO FINANCIAL STATEMENTS (continued)

Adviser for additional one year terms. For the year ended October 31, 2021, such reimbursements/waivers amounted to $789,694.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2021, the reimbursement for such services amounted to $90,800.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $170,373 for the year ended October 31, 2021.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $2,748 from the sale of Class A shares and received $1,117 and $404 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2021.

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, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2021, such waiver amounted to $2,928.

Fund	Market Value 10/31/20 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/21 (000)		Dividend Income (000)
Government Money Market Portfolio	$	3,612	$	196,930	$	195,313	$	5,229	$	1

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act

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of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class, Class I and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $1,208,915, $148,574 and $67,060 for Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2021 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	115,894,524	$	130,651,863
U.S. government securities		339,031,376		353,738,455

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	330,115,003
Gross unrealized appreciation	$	11,083,654
Gross unrealized depreciation		(8,728,858	)
Net unrealized appreciation	$	2,354,796

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:

• 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, as described below under “Currency Transactions”.

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

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

During the year ended October 31, 2021, the Fund held futures for hedging and non-hedging purposes.

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• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2021, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

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When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2021, the Fund held written options for hedging and non-hedging purposes. During the year ended October 31, 2021, the Fund held written swaptions for hedging and non-hedging purposes.

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• 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 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 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

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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 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

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are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2021, the Fund held interest rate swaps for hedging and non-hedging purposes.

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 year ended October 31, 2021, the Fund held inflation (CPI) swaps for hedging and non-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

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credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

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

During the year ended October 31, 2021, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2021, the Fund held total return swaps for hedging and 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

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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 year ended October 31, 2021, 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	$	433,423	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	38,806	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		139,453	*	Receivable/Payable for variation margin on centrally cleared swaps		441,587	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		142,516		Unrealized depreciation on forward currency exchange contracts		630,952
Credit contracts	Market value on credit default swaps		689,647		Market value on credit default swaps		2,401,558
Credit contracts	Unrealized appreciation on total return swaps		16,064
Total		$	1,026,486			$	3,907,520

* 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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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	$	(2,298,637	)	$	792,675
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		500,925			(728,298	)
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		223,716			(117,383	)
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		(79,811	)		– 0	–
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		419,616			(34,052	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(594,763	)		(181,545	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(2,037,411	)		456,551
Total		$	(3,866,365	)	$	187,948

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The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2021:

Futures:
Average notional amount of buy contracts	$	143,154,931
Average notional amount of sale contracts	$	15,524,794	(a)
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	27,639,940
Average principal amount of sale contracts	$	45,030,277
Options Written:
Average notional amount	$	29,911,200	(b)
Swaptions Written:
Average notional amount	$	12,863,600	(c)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	49,214,821
Centrally Cleared Inflation Swaps:
Average notional amount	$	8,600,000	(d)
Credit Default Swaps:
Average notional amount of buy contracts	$	8,538,769
Average notional amount of sale contracts	$	10,165,122
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	3,534,008
Total Return Swaps:
Average notional amount	$	13,100,000

(a) Positions were open for ten months during the year.

(b) Positions were open for less than one month during the year.

(c) Positions were open for four months during the year.

(d) Positions were open for two months during the year.

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, 2021. 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/Citigroup Global Markets, Inc.	$	564,424	$	(401,344	)	$	(163,080	)	$	– 0	–	$	– 0	–
Deutsche Bank AG		105,026		(105,026	)		– 0	–		– 0	–		– 0	–

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Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Goldman Sachs Bank USA/Goldman Sachs International	$	36,294	$	(36,294	)	$	– 0	–	$	– 0	–	$	– 0	–
HSBC Bank USA		432		– 0	–		– 0	–		– 0	–		432
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		30,845		(30,845	)		– 0	–		– 0	–		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC		74,148		(74,148	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		27,941		– 0	–		– 0	–		– 0	–		27,941
UBS AG		9,117		– 0	–		– 0	–		– 0	–		9,117
Total	$	848,227	$	(647,657	)	$	(163,080	)	$	– 0	–	$	37,490	^
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	$	254,302	$	– 0	–	$	– 0	–	$	– 0	–	$	254,302
Citibank, NA/Citigroup Global Markets, Inc.		401,344		(401,344	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		645,776		– 0	–		– 0	–		(645,776	)		– 0	–
Deutsche Bank AG		459,693		(105,026	)		(160,000	)		(194,667	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		773,814		(36,294	)		– 0	–		(737,520	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		275,647		(30,845	)		– 0	–		(216,839	)		27,963
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC		221,934		(74,148	)		– 0	–		(101,000	)		46,786
Total	$	3,032,510	$	(647,657	)	$	(160,000	)	$	(1,895,802	)	$	329,051	^

* 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.

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2. Currency Transactions

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

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2021, the Fund earned drop income of $318,746 which is included in interest income in the accompanying statement of operations.

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NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class A
Shares sold		739,035			1,888,650		$	8,403,048		$	21,407,368
Shares issued in reinvestment of dividends and distributions		554,374			438,046			6,322,222			4,969,924
Shares converted from Class B		– 0	–		35,898			– 0	–		403,846
Shares converted from Class C		217,654			182,964			2,459,656			2,082,073
Shares redeemed		(2,926,511	)		(2,549,088	)		(33,270,087	)		(28,719,237	)
Net increase (decrease)		(1,415,448	)		(3,530	)	$	(16,085,161	)	$	143,974
Class B
Shares sold		– 0	–		2		$	– 0	–	$	30
Shares converted to Class A		– 0	–		(35,898	)		– 0	–		(403,846	)
Shares redeemed		– 0	–		(132	)		– 0	–		(1,602	)
Net decrease		– 0	–		(36,028	)	$	– 0	–	$	(405,418	)
Class C
Shares sold		60,727			432,800		$	693,436		$	4,849,702
Shares issued in reinvestment of dividends and distributions		17,026			14,549			194,209			164,668
Shares converted to Class A		(218,074	)		(183,382	)		(2,459,656	)		(2,082,073	)
Shares redeemed		(234,007	)		(316,423	)		(2,658,869	)		(3,542,669	)
Net decrease		(374,328	)		(52,456	)	$	(4,230,880	)	$	(610,372	)
Advisor Class
Shares sold		3,650,665			5,154,674		$	41,660,646		$	58,200,348
Shares issued in reinvestment of dividends and distributions		193,069			155,888			2,202,877			1,769,237
Shares redeemed		(5,296,425	)		(3,956,933	)		(59,900,768	)		(43,675,272	)
Net increase (decrease)		(1,452,691	)		1,353,629		$	(16,037,245	)	$	16,294,313

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2021			Year Ended October 31, 2020			Year Ended October 31, 2021			Year Ended October 31, 2020
Class R
Shares sold		66,576			42,105		$	762,932		$	468,652
Shares issued in reinvestment of dividends and distributions		4,045			6,020			46,179			68,154
Shares redeemed		(160,662	)		(182,460	)		(1,835,776	)		(1,990,251	)
Net decrease		(90,041	)		(134,335	)	$	(1,026,665	)	$	(1,453,445	)
Class K
Shares sold		107,358			328,822		$	1,232,269		$	3,745,267
Shares issued in reinvestment of dividends and distributions		20,756			17,425			236,904			197,903
Shares redeemed		(188,986	)		(431,270	)		(2,142,508	)		(4,696,457	)
Net decrease		(60,872	)		(85,023	)	$	(673,335	)	$	(753,287	)
Class I
Shares sold		32,838			107,909		$	375,668		$	1,239,855
Shares issued in reinvestment of dividends and distributions		7,551			7,118			86,280			81,001
Shares redeemed		(116,547	)		(238,893	)		(1,333,364	)		(2,743,592	)
Net decrease		(76,158	)		(123,866	)	$	(871,416	)	$	(1,422,736	)
Class Z
Shares sold		293,258			342,251		$	3,349,932		$	3,852,305
Shares issued in reinvestment of dividends and distributions		18,055			22,034			206,201			250,023
Shares redeemed		(532,260	)		(568,822	)		(6,077,835	)		(6,427,389	)
Net decrease		(220,947	)		(204,537	)	$	(2,521,702	)	$	(2,325,061	)

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value

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NOTES TO FINANCIAL STATEMENTS (continued)

of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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

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

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

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. 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, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. 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.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions

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NOTES TO FINANCIAL STATEMENTS (continued)

of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR’s administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition 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

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NOTES TO FINANCIAL STATEMENTS (continued)

in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2021.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2021 and October 31, 2020 were as follows:

	2021		2020
Distributions paid from:
Ordinary income	$	7,517,670	$	10,898,767
Net long-term capital gains		6,253,596		109,442
Total taxable distributions paid	$	13,771,266	$	11,008,209

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2021, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed capital gains	$	504,410
Other losses		(13,606	)(a)
Unrealized appreciation/(depreciation)		2,350,610	(b)
Total accumulated earnings/(deficit)	$	2,841,414	(c)

(a) As of October 31, 2021, the cumulative deferred loss on straddles was $13,606.

(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 passive foreign investment companies (PFICs), the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of callable bonds.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2021, the Fund did not have any capital loss carryforwards.

During the current fiscal year, there were no permanent differences that resulted in adjustments to distributable earnings or additional paid-in capital.

NOTE I

Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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 Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.53			$  11.35			$  10.65			$  11.11			$  11.23
Income From Investment Operations
Net investment income(a)(b)		.25			.29			.33			.25			.24	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.11	)		.22			.74			(.44	)		(.06	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.14			.51			1.07			(.19	)		.18
Less: Dividends and Distributions
Dividends from net investment income		(.28	)		(.33	)		(.37	)		(.27	)		(.23	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.03	)
Total dividends and distributions		(.42	)		(.33	)		(.37	)		(.27	)		(.30	)
Net asset value, end of period		$  11.25			$  11.53			$  11.35			$  10.65			$  11.11
Total Return
Total investment return based on net asset value(d)		1.22	%		4.60	%		10.23	%		(1.75	)%		1.68	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$203,168			$224,484			$221,033			$216,950			$240,386
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.79	%
Expenses, before waivers/reimbursements		.99	%		.99	%		1.04	%		1.01	%		1.03	%
Net investment income(b)		2.23	%		2.58	%		2.98	%		2.29	%		2.16	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.50			$  11.32			$  10.63			$  11.08			$  11.21
Income From Investment Operations
Net investment income(a)(b)		.17			.21			.25			.17			.15	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.11	)		.22			.73			(.43	)		(.06	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.06			.43			.98			(.26	)		.09
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.25	)		(.29	)		(.19	)		(.16	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.02	)
Total dividends and distributions		(.33	)		(.25	)		(.29	)		(.19	)		(.22	)
Net asset value, end of period		$  11.23			$  11.50			$  11.32			$  10.63			$  11.08
Total Return
Total investment return based on net asset value(d)		.55	%		3.83	%		9.33	%		(2.40	)%		.83	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,682			$10,128			$10,564			$11,334			$15,676
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.52	%		1.55	%
Expenses, before waivers/reimbursements		1.74	%		1.75	%		1.79	%		1.76	%		1.78	%
Net investment income(b)		1.51	%		1.84	%		2.24	%		1.54	%		1.38	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.53			$  11.35			$  10.65			$  11.11			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.28			.32			.35			.28			.27	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.10	)		.22			.75			(.44	)		(.07	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.18			.54			1.10			(.16	)		.20
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.36	)		(.40	)		(.30	)		(.25	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.04	)
Total dividends and distributions		(.45	)		(.36	)		(.40	)		(.30	)		(.33	)
Net asset value, end of period		$  11.26			$  11.53			$  11.35			$  10.65			$  11.11
Total Return
Total investment return based on net asset value(d)		1.56	%		4.86	%		10.50	%		(1.50	)%		1.84	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$102,827			$122,108			$104,850			$76,406			$67,357
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.54	%
Expenses, before waivers/reimbursements		.74	%		.74	%		.79	%		.76	%		.78	%
Net investment income(b)		2.47	%		2.82	%		3.21	%		2.55	%		2.41	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.52			$  11.34			$  10.65			$  11.10			$  11.23
Income From Investment Operations
Net investment income(a)(b)		.23			.26			.30			.23			.21	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.11	)		.22			.74			(.44	)		(.06	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.12			.48			1.04			(.21	)		.15
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.30	)		(.35	)		(.24	)		(.21	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.03	)
Total dividends and distributions		(.39	)		(.30	)		(.35	)		(.24	)		(.28	)
Net asset value, end of period		$  11.25			$  11.52			$  11.34			$  10.65			$  11.10
Total Return
Total investment return based on net asset value(d)		1.04	%		4.33	%		9.86	%		(1.90	)%		1.34	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$746			$1,802			$3,298			$2,814			$2,699
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.02	%		1.02	%		1.02	%		1.02	%		1.04	%
Expenses, before waivers/reimbursements		1.37	%		1.37	%		1.42	%		1.35	%		1.39	%
Net investment income(b)		1.99	%		2.34	%		2.73	%		2.07	%		1.91	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.54			$  11.36			$  10.66			$  11.11			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.25			.29			.33			.25			.24	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.11	)		.22			.74			(.43	)		(.07	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.14			.51			1.07			(.18	)		.17
Less: Dividends and Distributions
Dividends from net investment income		(.28	)		(.33	)		(.37	)		(.27	)		(.23	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.03	)
Total dividends and distributions		(.42	)		(.33	)		(.37	)		(.27	)		(.30	)
Net asset value, end of period		$  11.26			$  11.54			$  11.36			$  10.66			$  11.11
Total Return
Total investment return based on net asset value(d)		1.22	%		4.59	%		10.22	%		(1.66	)%		1.59	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,736			$6,580			$7,444			$7,863			$5,876
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.79	%
Expenses, before waivers/reimbursements		1.06	%		1.07	%		1.10	%		1.08	%		1.09	%
Net investment income(b)		2.24	%		2.59	%		2.98	%		2.32	%		2.15	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.55			$  11.36			$  10.66			$  11.12			$  11.24
Income From Investment Operations
Net investment income(a)(b)		.28			.32			.36			.28			.27	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.11	)		.23			.74			(.44	)		(.06	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.17			.55			1.10			(.16	)		.21
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.36	)		(.40	)		(.30	)		(.25	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.04	)
Total dividends and distributions		(.45	)		(.36	)		(.40	)		(.30	)		(.33	)
Net asset value, end of period		$  11.27			$  11.55			$  11.36			$  10.66			$  11.12
Total Return
Total investment return based on net asset value(d)		1.46	%		4.93	%		10.50	%		(1.50	)%		1.93	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,819			$2,743			$4,107			$2,894			$2,729
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.54	%
Expenses, before waivers/reimbursements		.68	%		.70	%		.75	%		.72	%		.75	%
Net investment income(b)		2.48	%		2.85	%		3.22	%		2.57	%		2.41	%†
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2021			2020			2019			2018			2017
Net asset value, beginning of period		$  11.55			$  11.37			$  10.67			$  11.13			$  11.26
Income From Investment Operations
Net investment income(a)(b)		.29			.32			.36			.27			.27	†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.12	)		.22			.74			(.43	)		(.07	)
Contributions from Affiliates		– 0	–		– 0	–		.00	(c)		– 0	–		.00	(c)
Net increase (decrease) in net asset value from operations		.17			.54			1.10			(.16	)		.20
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.36	)		(.40	)		(.30	)		(.25	)
Distributions from net realized gain on investment transactions		(.14	)		– 0	–		– 0	–		– 0	–		(.04	)
Return of capital		– 0	–		– 0	–		– 0	–		– 0	–		(.04	)
Total dividends and distributions		(.45	)		(.36	)		(.40	)		(.30	)		(.33	)
Net asset value, end of period		$  11.27			$  11.55			$  11.37			$  10.67			$  11.13
Total Return
Total investment return based on net asset value(d)		1.46	%		4.84	%		10.48	%		(1.49	)%		1.84	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$3,193			$5,824			$8,059			$7,274			$24,653
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.54	%
Expenses, before waivers/reimbursements		.64	%		.64	%		.68	%		.64	%		.66	%
Net investment income(b)		2.51	%		2.82	%		3.22	%		2.48	%		2.42	%
Portfolio turnover rate**		128	%		83	%		74	%		195	%		209	%

See footnote summary on page 97.

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FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

† For the year ended October 31, 2017, the amount includes a refund for overbilling of prior years’ custody out of pocket fees as follows:

Net Investment Income Per Share	Net Investment Income Ratio	Total Return
$.002	.02%	.02%

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Total Return Bond Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Total Return Bond Portfolio, formerly AB Intermediate Bond Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) on October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

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REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2021

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2021 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2021. For foreign shareholders, 98.36% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

The Fund designates $6,253,596 of dividends paid as long-term capital gains dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2022.

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BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Onur Erzan, President and Chief Executive Officer Nancy P. Jacklin⁽¹⁾ Jeanette W. Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner^(1),*

OFFICERS

Michael Canter⁽²⁾, Vice President Janaki Rao⁽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. 501 Commerce Street Nashville, TN 37203   Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

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

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Investment Grade Core Fixed Income Team. Messrs. Canter and Rao are the investment professionals primarily responsible for the day-to-day management of the Fund’s portfolio.

* Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,# 1345 Avenue of the Americas New York, NY 10105 45 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and Head of the Global Client Group overseeing AB’s institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 80 (2005)	Private Investor since prior to 2016. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 70 (2020)	Private Investor since prior to 2016. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		74	Moody’s Corporation since April 2011
Michael J. Downey,## 77 (2005)	Private Investor since prior to 2016. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2016 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,## 73 (2006)	Private Investor since prior to 2016. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		74	None
Jeanette W. Loeb,## 69 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		74	Apollo Investment Corp. (business development company) since August 2011

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 66 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016 and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 69 (2008)	Private Investor since prior to 2016. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee and as Chairman of the Audit Committees of the AB Funds since 2008.		74	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## ^ 82 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		72	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department-Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Erzan is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

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

^ Mr. Weiner is expected to retire on or about December 31, 2021.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Onur Erzan 45	President and Chief Executive Officer	See biography above.
Michael Canter 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016. He is also Director of Securitized Assets and U.S. Multi-Sector Income.
Janaki Rao 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2016.
Emilie D. Wrapp 66	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2016.
Michael B. Reyes 45	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2016.
Joseph J. Mantineo 62	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2016.
Phyllis J. Clarke 60	Controller	Vice President of ABIS**, with which she has been associated since prior to 2016.
Vincent S. Noto 57	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2016.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”).

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2021, which covered the period January 1, 2020 through December 31, 2020 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended,

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, beginning in March 2020, all financial markets experienced extreme levels of price volatility and relative illiquidity resulting from the COVID-19 impacts on the global economy. This extreme relative illiquidity resulted in significantly wider bid-ask spreads to transact in securities, including many of those securities held by the Fund, and in a diminished depth of liquidity in most markets, to varying degrees. Nonetheless, there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    111

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

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Total Return Bond Portfolio (formerly AB Intermediate Bond Portfolio) (the “Fund”) at a meeting held by video conference on November 3-5, 2020 (the “Meeting”).

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

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

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

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The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the requests of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution

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expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

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

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was close to the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose,

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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 and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant. The directors also compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

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

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

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Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio¹

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio¹

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio¹

Tax-Managed All Market Income Portfolio

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 December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy. Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee^™ US Thematic Portfolio. Prior to April 30, 2021, High Yield Portfolio was named FlexFee^™ High Yield Portfolio.

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NOTES

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NOTES

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NOTES

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AB TOTAL RETURN BOND PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TRB-0151-1021                

ITEM 2. CODE OF ETHICS.

(a)    The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 12(a)(1).

(b)    During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c)    During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors has determined that independent directors Garry L. Moody, Marshall C. Turner, Jr. and Jorge A. Bermudez qualify as audit committee financial experts.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) - (c) The following table sets forth the aggregate fees billed by the independent registered public accounting firm Ernst & Young LLP, for the Fund’s last two fiscal years for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues and quarterly press release review (for those Funds which issue press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

		Audit Fees		Audit-Related Fees		Tax Fees
AB Total Return Bond Portfolio	2020	$	84,906	$	1,020	$	11,114
	2021	$	84,906	$	—	$	17,169
AB Bond Inflation Strategy	2020	$	96,097	$	—	$	11,114
	2021	$	96,097	$	—	$	25,664
AB Municipal Bond Inflation Strategy	2020	$	69,532	$	—	$	9,367
	2021	$	69,532	$	—	$	16,235
				`
AB All Market Real Return	2020	$	87,794	$	—	$	33,887
	2021	$	87,794	$	—	$	62,754
AB Short Duration Income	2020	$	30,961	$	—	$	9,445
	2021	$	41,281	$	—	$	30,840
AB Tax Aware Fixed Income	2020	$	36,060	$	—	$	15,550
	2021	$	36,060	$	—	$	24,797
AB Income	2020	$	121,160	$	—	$	16,391
	2021	$	121,160	$	—	$	39,544
AB Sustainable Thematic Credit	2020	$	—	$	—	$	—
	2021	$	33,750	$	—	$	11,900
AB High Yield	2020	$	111,951	$	—	$	6,219
	2021	$	111,951	$	3,000	$	22,569

(d) Not applicable.

(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for services pre-approved by the Fund’s Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund:

		All Fees for Non-Audit Services Provided to the Portfolio, the Adviser and Service Affiliates		Total Amount of Foregoing Column Pre-approved by the Audit  Committee (Portion Comprised of Audit Related Fees) (Portion Comprised of Tax Fees)
AB Total Return Bond Portfolio	2020	$	1,025,571	$	12,134
				$	(1,020	)
				$	(11,114	)
	2021	$	1,078,309	$	17,169
				$	—
				$	(17,169	)
AB Bond Inflation Strategy	2020	$	1,024,551	$	11,114
				$	—
				$	(11,114	)
	2021	$	1,086,804	$	25,664
				$	—
				$	(25,664	)
AB Municipal Bond Inflation Strategy	2020	$	1,022,804	$	9,367
				$	—
				$	(9,367	)
	2021	$	1,077,375	$	16,235
				$	—
				$	(16,235	)
AB All Market Real Return	2020	$	1,047,324	$	33,887
				$	—
				$	(33,887	)
	2021	$	1,123,894	$	62,754
				$	—
				$	(62,754	)
AB Short Duration Income	2020	$	1,022,882	$	9,445
				$	—
				$	(9,445	)
	2021	$	1,091,980	$	30,840
				$	—
				$	(30,840	)
AB Tax Aware Fixed Income	2020	$	1,028,987	$	15,550
				$	—
				$	(15,550	)
	2021	$	1,085,937	$	24,797
				$	—
				$	(24,797	)
AB Income	2020	$	1,029,828	$	16,391
				$	—
				$	(16,391	)
	2021	$	1,100,684	$	39,544
				$	—
				$	(39,544	)
AB Sustainable Thematic Credit	2020	$	—	$	—
				$	—
				$	—
	2021	$	1,073,040	$	11,900
				$	—
				$	(11,900	)
AB High Yield	2020	$	904,270	$	6,219
				$	—
				$	(6,219	)
	2021	$	1,086,709	$	25,569
				$	(3,000	)
				$	(22,569	)

(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. 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-3 (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. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 13. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
12 (a) (1)	Code of Ethics that is subject to the disclosure of Item 2 hereof
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 Bond Fund, Inc.
By:	/s/ Onur Erzan
	Onur Erzan
	President
Date: December 30, 2021

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/ Onur Erzan
	Onur Erzan
	President
Date:	December 30, 2021
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer
Date:	December 30, 2021