N-CSR

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, 2022

Date of reporting period: October 31, 2022

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.22

ANNUAL REPORT

AB ALL MARKET REAL RETURN PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    1

ANNUAL REPORT

December 6, 2022

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, 2022.

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

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB ALL MARKET REAL RETURN PORTFOLIO
Class 1 Shares1		-10.95%		-6.85%
Class 2 Shares1		-10.85%		-6.63%
Class A Shares		-11.00%		-7.01%
Class C Shares		-11.33%		-7.71%
Advisor Class Shares2		-10.83%		-6.64%
Class R Shares2		-11.15%		-7.32%
Class K Shares2		-11.05%		-7.08%
Class I Shares2		-10.86%		-6.75%
Class Z Shares2		-10.85%		-6.64%
MSCI AC World Commodity Producers Index (net)		0.72%		16.97%

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 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 Morgan Stanley Capital International All Country (“MSCI AC”) World Commodity Producers Index (net), for the six- and 12-month periods ended October 31, 2022.

All share classes of the Fund underperformed the benchmark for both periods, before sales charges. For the 12-month period, the strategic allocation detracted overall, relative to the benchmark, as real estate investment trusts (“REITs”), inflation-sensitive equities and commodity futures underperformed commodity producers. Security selection within commodity equities detracted, while selection within inflation-sensitive equities and REITs contributed. The Fund’s tactical underweight to REITs contributed, while tactical overweights to commodity futures detracted.

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

The Fund utilized derivatives for hedging and investment purposes in the form of currency forwards and total return swaps, which added to absolute returns for both periods, while futures and inflation swaps added for the 12-month period and detracted for the six-month period; during the 12-month period, variance swaps added to returns.

MARKET REVIEW AND INVESTMENT STRATEGY

US, international and emerging-market stocks declined during the 12-month period ended October 31, 2022. Initially, positive earnings momentum overshadowed concerns surrounding coronavirus variants, supply chain disruptions and rising inflation. But the global economic outlook deteriorated as increasingly hawkish central banks elevated investor concern that rapidly rising borrowing costs would slow economic growth significantly and tip global economies into recession. The US Federal Reserve (the “Fed”) raised interest rates five times during the period, including three consecutive 0.75% increases, setting a course followed by other key central banks. Equity markets began to rise at the end of the period, after some central banks raised rates by less than expected and several Fed governors suggested the possibility of a shift toward a less reactive course in order to review the impact of higher rates over a longer time horizon. Against a backdrop of rising rates, growth stocks came under pressure throughout most of the period. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks significantly. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

Inflation assets were mixed over the six- and 12-month periods ended October 31, 2022. REITs fell meaningfully over both periods as the asset class faced headwinds from rising interest rates. Natural resource equities posted positive performance over the 12-month period and were close to neutral toward the end of the period. For both periods, natural resource equities outperformed broader equity markets. Elsewhere, commodities rose over the 12-month period but fell over the six-month period. While the ongoing conflict between Russia and Ukraine was initially supportive of higher prices (especially in oil, gas and agriculture), concerns regarding the impact of restrictive monetary policy on future economic growth weighed on sentiment toward the end of the period. Finally, inflation swaps were slightly negative over the trailing six-month period but remained positive over the 12-month period.

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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 (“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

(continued on next page)

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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, 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

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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) and regional and global conflicts, that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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 Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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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: 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.

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.

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. 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.

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DISCLOSURES AND RISKS (continued)

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 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.

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

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DISCLOSURES AND RISKS (continued)

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)

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB All Market Real Return Portfolio Class A shares (from 10/31/2012 to 10/31/2022) 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.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    11

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-6.85%		-6.85%
5 Years		4.54%		4.54%
10 Years		0.80%		0.80%
CLASS 2 SHARES1
1 Year		-6.63%		-6.63%
5 Years		4.81%		4.81%
10 Years		1.05%		1.05%
CLASS A SHARES
1 Year		-7.01%		-10.96%
5 Years		4.34%		3.43%
10 Years		0.64%		0.20%
CLASS C SHARES
1 Year		-7.71%		-8.57%
5 Years		3.57%		3.57%
10 Years2		-0.09%		-0.09%
ADVISOR CLASS SHARES3
1 Year		-6.64%		-6.64%
5 Years		4.61%		4.61%
10 Years		0.92%		0.92%
CLASS R SHARES3
1 Year		-7.32%		-7.32%
5 Years		4.04%		4.04%
10 Years		0.39%		0.39%
CLASS K SHARES3
1 Year		-7.08%		-7.08%
5 Years		4.34%		4.34%
10 Years		0.65%		0.65%
CLASS I SHARES3
1 Year		-6.75%		-6.75%
5 Years		4.78%		4.78%
10 Years		1.03%		1.03%
CLASS Z SHARES3
1 Year		-6.64%		-6.64%
5 Years		4.81%		4.81%
Since Inception4		1.57%		1.57%

(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 1.13%, 0.87%, 1.18%, 1.93%, 0.92%, 1.60%, 1.31%, 0.88% and 0.88% 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 limited the Fund’s total annual operating expense ratio (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) to 1.55% for Class R shares. These waivers/reimbursements may not be terminated before January 31, 2023, 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. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

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, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-7.41%
5 Years		3.73%
10 Years		0.19%
CLASS 2 SHARES1
1 Year		-7.09%
5 Years		4.00%
10 Years		0.45%
CLASS A SHARES
1 Year		-11.40%
5 Years		2.66%
10 Years		-0.39%
CLASS C SHARES
1 Year		-9.05%
5 Years		2.76%
10 Years2		-0.69%
ADVISOR CLASS SHARES3
1 Year		-7.19%
5 Years		3.82%
10 Years		0.32%
CLASS R SHARES3
1 Year		-7.85%
5 Years		3.25%
10 Years		-0.20%
CLASS K SHARES3
1 Year		-7.63%
5 Years		3.54%
10 Years		0.06%
CLASS I SHARES3
1 Year		-7.22%
5 Years		3.98%
10 Years		0.43%
CLASS Z SHARES3
1 Year		-7.21%
5 Years		3.98%
Since Inception4		0.99%

(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. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	890.00	$	5.67		1.19	%	$	5.81		1.22	%
Hypothetical**	$	1,000	$	1,019.21	$	6.06		1.19	%	$	6.21		1.22	%
Class C
Actual	$	1,000	$	886.70	$	9.37		1.97	%	$	9.46		1.99	%
Hypothetical**	$	1,000	$	1,015.27	$	10.01		1.97	%	$	10.11		1.99	%
Advisor Class
Actual	$	1,000	$	891.70	$	4.48		0.94	%	$	4.58		0.96	%
Hypothetical**	$	1,000	$	1,020.47	$	4.79		0.94	%	$	4.89		0.96	%
Class R
Actual	$	1,000	$	888.50	$	7.28		1.52	%	$	7.33		1.54	%
Hypothetical**	$	1,000	$	1,017.49	$	7.78		1.52	%	$	7.83		1.54	%
Class K
Actual	$	1,000	$	889.50	$	6.00		1.26	%	$	6.14		1.29	%
Hypothetical**	$	1,000	$	1,018.85	$	6.41		1.26	%	$	6.56		1.29	%
Class I
Actual	$	1,000	$	891.40	$	4.10		0.86	%	$	4.20		0.88	%
Hypothetical**	$	1,000	$	1,020.87	$	4.38		0.86	%	$	4.48		0.88	%
Class 1
Actual	$	1,000	$	890.50	$	5.15		1.08	%	$	5.29		1.11	%
Hypothetical**	$	1,000	$	1,019.76	$	5.50		1.08	%	$	5.65		1.11	%
Class 2
Actual	$	1,000	$	891.50	$	3.96		0.83	%	$	4.05		0.85	%
Hypothetical**	$	1,000	$	1,021.02	$	4.23		0.83	%	$	4.33		0.85	%
Class Z
Actual	$	1,000	$	891.50	$	3.96		0.83	%	$	4.05		0.85	%
Hypothetical**	$	1,000	$	1,021.02	$	4.23		0.83	%	$	4.33		0.85	%

* 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).

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    17

PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,029.7

1 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).

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

PORTFOLIO SUMMARY (continued)

October 31, 2022 (unaudited)

TEN LARGEST HOLDINGS²

Company	U.S. $ Value		Percent of Net Assets
Shell PLC	$	21,133,068		2.1	%
Prologis, Inc.		17,578,351		1.7
Exxon Mobil Corp.		17,102,304		1.7
Equinix, Inc.		12,002,863		1.2
ConocoPhillips		10,971,847		1.1
Public Storage		10,804,080		1.0
EOG Resources, Inc.		9,458,788		0.9
Mitsui Fudosan Co., Ltd.		8,400,387		0.8
TotalEnergies SE		8,366,193		0.8
Chevron Corp.		7,614,624		0.7
	$	123,432,505		12.0	%

1 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 “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.6% or less in the following: Austria, Belgium, Brazil, Denmark, Finland, India, Ireland, Israel, Luxembourg, Mexico, Netherlands, New Zealand, Philippines, Russia, South Africa, South Korea, Sweden, Switzerland, 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, 2022

Company	Shares		U.S. $ Value
COMMON STOCKS – 67.8%
Real Estate – 26.4%
Diversified Real Estate Activities – 1.7%
Ayala Land, Inc.		2,554,100	$	1,133,482
City Developments Ltd.		295,500		1,593,221
Daito Trust Construction Co., Ltd.		8,700		861,507
Mitsui Fudosan Co., Ltd.		438,700		8,400,387
Nomura Real Estate Holdings, Inc.		14,900		336,797
Sun Hung Kai Properties Ltd.		435,000		4,674,648
Tokyu Fudosan Holdings Corp.		233,300		1,183,665
				18,183,707
Diversified REITs – 1.6%
Alexander & Baldwin, Inc.		99,800		1,944,104
Armada Hoffler Properties, Inc.		250,690		2,930,566
Charter Hall Long Wale REIT		606,580		1,691,336
Essential Properties Realty Trust, Inc.		153,440		3,302,029
Growthpoint Properties Ltd.(a)		2,072,622		1,461,202
ICADE		29,880		1,111,502
Merlin Properties Socimi SA		278,910		2,364,201
United Urban Investment Corp.		1,519		1,607,144
				16,412,084
Health Care REITs – 1.9%
Assura PLC		2,490,200		1,595,505
Cofinimmo SA		13,570		1,125,434
Medical Properties Trust, Inc.		288,010		3,297,714
Ventas, Inc.		145,390		5,689,111
Welltower, Inc.		124,340		7,589,713
				19,297,477
Hotel & Resort REITs – 0.8%
Invincible Investment Corp.		9,400		2,950,786
Park Hotels & Resorts, Inc.		234,690		3,069,745
RLJ Lodging Trust		159,880		1,945,740
				7,966,271
Industrial REITs – 4.3%
Americold Realty Trust, Inc.		78,680		1,907,990
CapitaLand Ascendas REIT		825,200		1,526,777
Centuria Industrial REIT		913,830		1,775,892
Dream Industrial Real Estate Investment Trust		303,414		2,438,715
GLP J-Reit(b)		1,146		1,188,496
Industrial & Infrastructure Fund Investment Corp.		1,115		1,177,597
Mapletree Logistics Trust(a)		1,205,318		1,293,631
Mitsui Fudosan Logistics Park, Inc.(b)		479		1,589,253
Plymouth Industrial REIT, Inc.		70,946		1,308,244
Prologis, Inc.		158,721		17,578,351
Rexford Industrial Realty, Inc.		64,600		3,571,088

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Segro PLC		575,272	$	5,177,447
STAG Industrial, Inc.		122,160		3,859,035
				44,392,516
Office REITs – 1.2%
Alexandria Real Estate Equities, Inc.		7,540		1,095,562
City Office REIT, Inc.		231,540		2,458,955
Cousins Properties, Inc.		121,065		2,876,504
Daiwa Office Investment Corp.		602		2,844,007
Derwent London PLC		66,190		1,638,156
Kenedix Office Investment Corp.(a)		648		1,476,147
				12,389,331
Real Estate Development – 0.9%
China Overseas Land & Investment Ltd.		743,500		1,420,768
China Resources Land Ltd.		678,000		2,121,315
CK Asset Holdings Ltd.		284,000		1,570,113
Emaar Properties PJSC		686,820		1,133,771
Instone Real Estate Group SE(c)		81,039		589,854
Megaworld Corp.		17,716,000		639,126
Midea Real Estate Holding Ltd.(a)(c)		2,151,600		1,503,466
				8,978,413
Real Estate Operating Companies – 1.6%
Azrieli Group Ltd.		14,750		1,092,761
CA Immobilien Anlagen AG		58,719		1,854,600
Central Pattana PCL		411,500		743,316
CTP NV(c)		96,979		1,005,870
Hongkong Land Holdings Ltd.		441,000		1,697,799
Hulic Co., Ltd.		146,600		1,064,953
Shurgard Self Storage SA		27,430		1,194,328
TAG Immobilien AG		117,450		735,566
Vonovia SE		176,274		3,897,525
Wihlborgs Fastigheter AB		489,360		3,205,908
				16,492,626
Real Estate Services – 0.1%
Unibail-Rodamco-Westfield(b)		20,600		974,738
Residential REITs – 4.0%
American Homes 4 Rent – Class A		141,480		4,518,871
Equity LifeStyle Properties, Inc.		44,010		2,814,880
Equity Residential		102,510		6,460,180
Essex Property Trust, Inc.		22,830		5,073,739
Independence Realty Trust, Inc.		240,000		4,022,400
Kenedix Residential Next Investment Corp.		538		788,746
Killam Apartment Real Estate Investment Trust		272,860		3,162,520
Minto Apartment Real Estate Investment Trust(c)		150,500		1,472,577

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Sun Communities, Inc.		46,857	$	6,318,666
UDR, Inc.		119,730		4,760,465
UNITE Group PLC (The)		156,180		1,595,371
				40,988,415
Retail REITs – 3.7%
AEON REIT Investment Corp.		1,654		1,780,738
Brixmor Property Group, Inc.		172,880		3,684,073
CapitaLand Integrated Commercial Trust		3,103,460		4,118,769
Frasers Centrepoint Trust		513,100		754,054
Kite Realty Group Trust		168,660		3,312,482
Link REIT		511,301		3,022,102
Mercialys SA		122,148		1,057,716
NETSTREIT Corp.		144,266		2,715,086
Phillips Edison & Co., Inc.		103,350		3,114,969
Realty Income Corp.		14,250		887,348
Shopping Centres Australasia Property Group		772,030		1,344,657
Simon Property Group, Inc.		34,378		3,746,514
SITE Centers Corp.		314,880		3,898,215
Spirit Realty Capital, Inc.		91,430		3,550,227
Waypoint REIT Ltd.		467,450		816,164
				37,803,114
Specialized REITs – 4.6%
American Tower Corp.		13,394		2,775,103
Crown Castle, Inc.		12,458		1,660,153
CubeSmart		115,710		4,844,778
Digital Realty Trust, Inc.		9,160		918,290
Equinix, Inc.		21,190		12,002,863
Iron Mountain, Inc.		25,600		1,281,792
National Storage Affiliates Trust		45,180		1,927,379
Public Storage		34,880		10,804,080
Safestore Holdings PLC		224,530		2,326,216
SBA Communications Corp.		3,104		837,770
VICI Properties, Inc.		220,100		7,047,602
Weyerhaeuser Co.		45,585		1,409,944
				47,835,970
				271,714,662
Energy – 11.2%
Coal & Consumable Fuels – 0.1%
Cameco Corp.		26,821		636,194
Integrated Oil & Gas – 6.5%
Cenovus Energy, Inc.(a)		17,389		351,520
Chevron Corp.		42,093		7,614,624
Equinor ASA		142,609		5,195,776
Exxon Mobil Corp.		154,339		17,102,304
Gazprom PJSC(d)		818,956		– 0	–
LUKOIL PJSC(d)		20,541		– 0	–

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Repsol SA(b)		532,416	$	7,243,235
Shell PLC		762,883		21,133,068
Suncor Energy, Inc.		6,237		214,530
TotalEnergies SE		153,358		8,366,193
				67,221,250
Oil & Gas Drilling – 0.2%
China Oilfield Services Ltd. – Class H		1,648,000		1,855,185
Oil & Gas Equipment & Services – 0.1%
Halliburton Co.		26,015		947,466
Oil & Gas Exploration & Production – 3.1%
ConocoPhillips		87,016		10,971,847
Coterra Energy, Inc.		48,350		1,505,136
EOG Resources, Inc.		69,285		9,458,788
Hess Corp.		31,848		4,493,116
Texas Pacific Land Corp.		620		1,428,399
Tourmaline Oil Corp.(a)		13,858		780,813
Williams Cos., Inc. (The)		35,053		1,147,285
Woodside Energy Group Ltd.		91,483		2,114,945
				31,900,329
Oil & Gas Refining & Marketing – 0.3%
Marathon Petroleum Corp.		13,509		1,534,893
Neste Oyj		11,223		491,887
Valero Energy Corp.		11,950		1,500,322
				3,527,102
Oil & Gas Storage & Transportation – 0.9%
Antero Midstream Corp.		9,634		102,602
Cheniere Energy, Inc.		7,186		1,267,682
Enbridge, Inc.(a)		71,454		2,783,997
EnLink Midstream LLC(b)		7,164		85,108
Gibson Energy, Inc.		5,174		88,300
Keyera Corp.(a)		7,799		167,160
Kinder Morgan, Inc.		57,035		1,033,474
Koninklijke Vopak NV		2,307		47,137
New Fortress Energy, Inc.		1,373		75,611
ONEOK, Inc.		12,855		762,559
Pembina Pipeline Corp.(a)		19,593		646,892
Targa Resources Corp.		6,517		445,567
TC Energy Corp.		35,711		1,568,574
				9,074,663
				115,162,189
Materials – 6.0%
Aluminum – 0.1%
Alcoa Corp.		20,672		806,828

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Commodity Chemicals – 0.5%
Beijing Haixin Energy Technology Co., Ltd. – Class A		1,735,085	$	952,315
Corteva, Inc.		41,683		2,723,567
Ecopro Co., Ltd.		8,277		821,674
LG Chem Ltd.		1,416		621,395
W-Scope Corp.(a)(b)		19,600		253,243
				5,372,194
Construction Materials – 0.2%
GCC SAB de CV		258,717		1,614,092
Copper – 0.2%
First Quantum Minerals Ltd.		85,965		1,516,306
OZ Minerals Ltd.(a)		37,029		573,358
				2,089,664
Diversified Chemicals – 0.1%
Sumitomo Chemical Co., Ltd.		316,200		1,064,727
Diversified Metals & Mining – 1.6%
Allkem Ltd.(b)		74,824		691,348
Anglo American PLC		132,981		3,983,339
BHP Group Ltd.		43,087		1,034,958
CMOC Group Ltd. – Class H(a)		1,368,000		440,430
Ganfeng Lithium Group Co., Ltd – Class A		50,480		546,534
Glencore PLC		726,435		4,164,702
MMC Norilsk Nickel PJSC (ADR)(d)(e)		66,074		– 0	–
Rio Tinto PLC		72,754		3,802,242
Teck Resources Ltd. – Class B		55,531		1,690,364
Zhejiang Huayou Cobalt Co., Ltd. – Class A		53,270		398,377
				16,752,294
Fertilizers & Agricultural Chemicals – 0.5%
CF Industries Holdings, Inc.		38,154		4,054,244
OCI NV		35,167		1,345,063
				5,399,307
Forest Products – 0.0%
Interfor Corp.(b)		28,218		501,248
Gold – 0.8%
Agnico Eagle Mines Ltd.		61,135		2,689,339
Barrick Gold Corp.		143,570		2,157,857
Endeavour Mining PLC		122,275		2,126,768
Northern Star Resources Ltd.		71,866		401,091
Regis Resources Ltd.		301,971		294,427
St. Barbara Ltd.(b)		412,784		134,387
				7,803,869

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Industrial Gases – 0.2%
Air Liquide SA		4,613	$	603,443
Air Products and Chemicals, Inc.		2,547		637,769
Linde PLC		2,065		614,028
				1,855,240
Paper Packaging – 0.1%
Sealed Air Corp.		26,931		1,282,454
Paper Products – 0.2%
Stora Enso Oyj – Class R		94,140		1,227,473
Suzano SA		105,200		1,083,466
				2,310,939
Specialty Chemicals – 0.7%
Albemarle Corp.		2,888		808,265
Danimer Scientific, Inc.(a)(b)		167,875		439,833
Ecolab, Inc.		3,149		494,613
Evonik Industries AG		49,372		909,517
IMCD NV		4,070		527,856
Johnson Matthey PLC		31,809		706,083
Livent Corp.(a)(b)		26,870		848,286
Shanghai Putailai New Energy Technology Co., Ltd. – Class A		60,520		414,260
Sika AG (REG)		2,054		463,127
Umicore SA		18,303		603,375
Wacker Chemie AG		5,147		599,241
				6,814,456
Steel – 0.8%
ArcelorMittal SA		174,554		3,901,919
Commercial Metals Co.		20,956		953,498
Steel Dynamics, Inc.		15,744		1,480,723
Vale SA (Sponsored ADR)		138,199		1,788,295
				8,124,435
				61,791,747
Capital Goods – 4.5%
Aerospace & Defense – 0.3%
BAE Systems PLC		108,753		1,017,228
Hexcel Corp.		13,775		767,268
Huntington Ingalls Industries, Inc.		5,361		1,378,152
				3,162,648
Agricultural & Farm Machinery – 0.3%
Deere & Co.		2,279		902,074
Lindsay Corp.		4,466		756,094
Toro Co. (The)		8,093		853,245
				2,511,413
Building Products – 0.6%
A O Smith Corp.		12,800		701,184
Carrier Global Corp.		18,733		744,824

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Cie de Saint-Gobain		26,986	$	1,103,213
Kingspan Group PLC		11,474		578,481
Lennox International, Inc.		2,335		545,386
Nibe Industrier AB – Class B		59,623		475,599
Owens Corning		14,873		1,273,277
Zurn Elkay Water Solutions Corp.		18,797		441,542
				5,863,506
Construction & Engineering – 0.2%
Ferrovial SA		17,604		430,213
MDU Resources Group, Inc.		5,849		166,580
Vinci SA		18,979		1,746,769
				2,343,562
Construction & Farm Machinery & Heavy Trucks – 0.1%
Cummins, Inc.		4,099		1,002,246
Electrical Components & Equipment – 1.3%
Acuity Brands, Inc.		7,334		1,346,302
Advent Technologies Holdings, Inc.(a)(b)		278,432		629,256
Ballard Power Systems, Inc.(a)(b)		80,904		458,457
Beijing Easpring Material Technology Co., Ltd. – Class A		53,500		434,679
Blink Charging Co.(a)(b)		19,644		290,731
Camel Group Co., Ltd. – Class A		546,200		639,253
Contemporary Amperex Technology Co., Ltd. – Class A		8,900		456,745
EnerSys		16,176		1,072,307
First Solar, Inc.(b)		7,443		1,083,478
FuelCell Energy, Inc.(a)(b)		146,061		455,710
Gotion High-tech Co., Ltd. – Class A		121,200		501,112
Hubbell, Inc.		3,554		844,004
Legrand SA		10,424		794,357
nVent Electric PLC		30,848		1,125,952
Plug Power, Inc.(a)(b)		23,424		374,316
Prysmian SpA		23,685		770,902
Signify NV(c)		39,231		1,086,901
SunPower Corp.(a)(b)		22,852		422,534
Sunrun, Inc.(b)		28,997		652,722
				13,439,718
Heavy Electrical Equipment – 0.5%
Bloom Energy Corp. – Class A(b)		19,157		358,428
CS Wind Corp.		14,045		578,576
ITM Power PLC(a)(b)		213,956		202,118
Ming Yang Smart Energy Group Ltd. – Class A		188,696		645,860
NARI Technology Co., Ltd. – Class A		168,609		566,285
NEL ASA(b)		333,613		407,785

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Nordex SE(b)		52,303	$	487,577
Siemens Energy AG(b)		75,800		883,647
TPI Composites, Inc.(b)		31,683		315,563
Vestas Wind Systems A/S		24,079		474,685
				4,920,524
Industrial Conglomerates – 0.1%
General Electric Co.		13,929		1,083,815
Industrial Machinery – 1.0%
Chart Industries, Inc.(b)		3,225		718,788
Energy Recovery, Inc.(b)		25,889		666,124
Evoqua Water Technologies Corp.(b)		14,600		572,028
Illinois Tool Works, Inc.		7,222		1,542,114
John Bean Technologies Corp.		6,165		562,248
McPhy Energy SA(b)		32,420		367,775
Mueller Industries, Inc.		11,185		700,628
NGK Insulators Ltd.		66,500		775,793
Pentair PLC		17,361		745,655
Snap-on, Inc.		6,315		1,402,246
SPX Technologies, Inc.(b)		15,185		999,781
Watts Water Technologies, Inc. – Class A		5,198		760,779
Xylem, Inc./NY		7,142		731,555
				10,545,514
Trading Companies & Distributors – 0.1%
WW Grainger, Inc.		2,433		1,421,724
				46,294,670
Utilities – 4.4%
Electric Utilities – 1.1%
Avangrid, Inc.(a)		22,721		924,290
Constellation Energy Corp.		1		95
Edison International		10,973		658,819
Elia Group SA/NV		1,271		160,695
Enel SpA		505,112		2,256,511
Eversource Energy		9,966		760,206
Exelon Corp.		14,729		568,392
Fortis, Inc./Canada		16,892		659,016
Hydro One Ltd.(c)		11,198		280,782
Iberdrola SA		82,974		843,785
NextEra Energy, Inc.		4,547		352,393
NRG Energy, Inc.		31,429		1,395,448
Orsted AS(c)		5,787		477,461
PG&E Corp.(b)		46,315		691,483
Red Electrica Corp. SA		15,275		247,084
SSE PLC		34,755		621,102
Terna – Rete Elettrica Nazionale		49,652		329,275
				11,226,837

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    27

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Gas Utilities – 0.8%
AltaGas Ltd.		17,530	$	316,154
APA Group		323,138		2,175,490
Atmos Energy Corp.		4,024		428,757
Beijing Enterprises Holdings Ltd.		16,913		42,907
Chesapeake Utilities Corp.		510		63,434
China Gas Holdings Ltd.		105,593		93,712
China Resources Gas Group Ltd.		31,847		81,566
Enagas SA		8,783		142,582
ENN Energy Holdings Ltd.		26,732		265,771
Hong Kong & China Gas Co., Ltd.		381,933		294,382
Italgas SpA		17,156		88,392
Kunlun Energy Co., Ltd.		140,561		84,009
Naturgy Energy Group SA(a)		40,971		1,051,419
New Jersey Resources Corp.		2,768		123,564
Northwest Natural Holding Co.		1,001		48,138
ONE Gas, Inc.		1,557		120,636
Snam SpA		72,348		321,696
Southwest Gas Holdings, Inc.		1,773		129,553
Spire, Inc.		1,510		105,413
Toho Gas Co., Ltd.		3,491		65,044
Tokyo Gas Co., Ltd.		14,473		258,654
Towngas Smart Energy Co., Ltd.		39,098		13,694
UGI Corp.		38,767		1,369,638
				7,684,605
Independent Power and Renewable Electricity Producers – 0.7%
Atlantica Sustainable Infrastructure PLC		22,761		630,707
Azure Power Global Ltd.(a)(b)		58,369		337,956
Boralex, Inc. – Class A		17,325		491,258
Brookfield Renewable Corp. – Class A		15,520		482,227
China Longyuan Power Group Corp. Ltd. – Class H		436,000		498,204
EDP Renovaveis SA		81,512		1,715,215
Innergex Renewable Energy, Inc.		52,473		577,748
NextEra Energy Partners LP(a)		9,801		725,960
Ormat Technologies, Inc.(a)		7,255		656,215
Solaria Energia y Medio Ambiente SA(b)		30,463		481,806
TransAlta Renewables, Inc.(a)		61,898		664,710
Xinyi Energy Holdings Ltd.(a)		1,580,000		402,437
				7,664,443
Independent Power Producers & Energy Traders – 0.5%
AES Corp. (The)		28,600		748,176
Clearway Energy, Inc. – Class A		18,541		599,431
Drax Group PLC		104,811		625,891
ERG SpA		24,584		771,122

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Guangxi Guiguan Electric Power Co., Ltd. – Class A		778,700	$	668,481
Northland Power, Inc.		21,941		638,412
RWE AG		22,706		874,070
				4,925,583
Multi-Utilities – 0.7%
ACEA SpA		1,503		18,939
Algonquin Power & Utilities Corp.		56,518		625,604
CenterPoint Energy, Inc.		18,109		518,099
Consolidated Edison, Inc.		10,200		897,192
DTE Energy Co.		6,684		749,343
E.ON SE		67,344		563,938
National Grid PLC		136,793		1,490,376
NiSource, Inc.		11,678		300,008
NorthWestern Corp.		1,615		85,320
Sempra Energy		12,677		1,913,466
United Utilities Group PLC		24,063		259,307
Unitil Corp.		461		24,299
				7,445,891
Water Utilities – 0.6%
American States Water Co.		7,480		676,641
American Water Works Co., Inc.		9,061		1,316,925
Beijing Enterprises Water Group Ltd.		3,070,538		645,114
California Water Service Group		14,893		924,260
China Water Affairs Group Ltd.		30,530		21,623
Cia de Saneamento Basico do Estado de Sao Paulo (ADR)		12,060		139,414
Essential Utilities, Inc.		6,860		303,349
Middlesex Water Co.		3,851		344,549
Pennon Group PLC		9,208		88,486
Severn Trent PLC		8,939		256,547
SJW Group		16,297		1,151,872
				5,868,780
				44,816,139
Pharmaceuticals & Biotechnology – 1.9%
Biotechnology – 0.3%
AbbVie, Inc.		6,902		1,010,453
Amgen, Inc.		1,716		463,921
Moderna, Inc.(b)		4,536		681,897
Neurocrine Biosciences, Inc.(b)		5,444		626,713
Regeneron Pharmaceuticals, Inc.(b)		1,116		835,605
				3,618,589
Life Sciences Tools & Services – 0.5%
Danaher Corp.		3,046		766,587
Eurofins Scientific SE		12,537		802,553
Mettler-Toledo International, Inc.(b)		1,117		1,412,927

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Sartorius Stedim Biotech		489	$	155,179
Waters Corp.(b)		5,979		1,788,737
				4,925,983
Pharmaceuticals – 1.1%
Bayer AG (REG)		22,622		1,189,488
Elanco Animal Health, Inc.(b)		62,566		825,245
Eli Lilly & Co.		6,176		2,236,268
Johnson & Johnson		300		52,191
Novo Nordisk A/S – Class B		17,095		1,858,761
Pfizer, Inc.		40,807		1,899,566
Roche Holding AG (Roche)		1,269		515,074
Roche Holding AG (Genusschein)		4,707		1,561,774
Takeda Pharmaceutical Co., Ltd.		16,700		441,030
Zoetis, Inc.		3,810		574,472
				11,153,869
				19,698,441
Software & Services – 1.9%
Application Software – 0.5%
Autodesk, Inc.(b)		3,735		800,411
Cadence Design Systems, Inc.(b)		9,649		1,460,762
Dropbox, Inc. – Class A(b)		63,208		1,374,774
Fair Isaac Corp.(b)		1,541		737,892
Roper Technologies, Inc.		2,559		1,060,808
				5,434,647
Data Processing & Outsourced Services – 0.4%
Mastercard, Inc. – Class A		6,728		2,207,995
Visa, Inc. – Class A		6,229		1,290,400
				3,498,395
Internet Services & Infrastructure – 0.1%
VeriSign, Inc.(b)		6,730		1,349,096
IT Consulting & Other Services – 0.1%
Gartner, Inc.(b)		4,620		1,394,870
Kyndryl Holdings, Inc.(b)		606		5,860
				1,400,730
Systems Software – 0.8%
Fortinet, Inc.(b)		22,356		1,277,869
Microsoft Corp.		21,408		4,969,439
Palo Alto Networks, Inc.(b)		3,978		682,585
ServiceNow, Inc.(b)		2,069		870,511
				7,800,404
				19,483,272

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Food Beverage & Tobacco – 1.6%
Agricultural Products – 0.3%
Archer-Daniels-Midland Co.		11,204	$	1,086,564
Bunge Ltd.		13,976		1,379,431
Darling Ingredients, Inc.(b)		11,976		939,877
				3,405,872
Brewers – 0.1%
Carlsberg AS – Class B		6,255		736,498
Kirin Holdings Co., Ltd.		31,600		464,518
				1,201,016
Packaged Foods & Meats – 1.0%
Danone SA		15,513		770,988
Hershey Co. (The)		6,030		1,439,783
Hormel Foods Corp.		15,728		730,566
JBS SA		158,600		766,365
Maple Leaf Foods, Inc.		49,198		729,113
Marfrig Global Foods SA		389,700		807,238
Mowi ASA		56,453		842,605
Nestle SA (REG)		20,051		2,182,728
Pilgrim’s Pride Corp.(b)		34,010		783,931
Sao Martinho SA		118,800		620,276
Tyson Foods, Inc. – Class A		11,981		818,901
				10,492,494
Tobacco – 0.2%
Imperial Brands PLC		64,211		1,564,120
				16,663,502
Technology Hardware & Equipment – 1.0%
Electronic Components – 0.1%
Samsung SDI Co., Ltd.		1,355		699,065
TDK Corp.		1,600		49,981
				749,046
Electronic Equipment & Instruments – 0.2%
Itron, Inc.(b)		14,699		718,634
Landis+Gyr Group AG(b)		14,851		855,818
				1,574,452
Technology Distributors – 0.0%
CDW Corp./DE		2,581		446,023
Technology Hardware, Storage & Peripherals – 0.7%
Apple, Inc.		49,183		7,541,721
				10,311,242

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Commercial & Professional Services – 0.9%
Diversified Support Services – 0.2%
Brambles Ltd.		112,577	$	842,834
Copart, Inc.(b)		8,585		987,447
				1,830,281
Environmental & Facilities Services – 0.5%
Aker Carbon Capture ASA(b)		209,829		236,125
Casella Waste Systems, Inc. – Class A(b)		8,032		657,098
Clean Harbors, Inc.(b)		9,646		1,181,249
Republic Services, Inc.		6,397		848,370
Rollins, Inc.		32,642		1,373,575
Tetra Tech, Inc.		4,976		703,009
Waste Management, Inc.		4,201		665,313
				5,664,739
Research & Consulting Services – 0.2%
Booz Allen Hamilton Holding Corp.		12,001		1,306,309
Nihon M&A Center Holdings, Inc.		28,200		318,203
Thomson Reuters Corp.		4,286		455,829
				2,080,341
				9,575,361
Transportation – 0.9%
Air Freight & Logistics – 0.1%
CH Robinson Worldwide, Inc.		3,539		345,831
Expeditors International of Washington, Inc.		3,436		336,213
Kuehne & Nagel International AG (REG)		1,634		347,823
				1,029,867
Airport Services – 0.2%
Aena SME SA(b)(c)		2,594		304,876
Aeroports de Paris(b)		978		132,256
Auckland International Airport Ltd.(b)		42,616		190,511
Beijing Capital International Airport Co., Ltd. – Class H(b)		59,027		31,965
Flughafen Zurich AG (REG)(b)		672		104,251
Fraport AG Frankfurt Airport Services Worldwide(b)		1,305		50,277
Grupo Aeroportuario del Centro Norte SAB de CV (ADR)		1,201		76,588
Grupo Aeroportuario del Pacifico SAB de CV (ADR)		1,281		198,632
Grupo Aeroportuario del Sureste SAB de CV (ADR)		665		155,224
Japan Airport Terminal Co., Ltd.(a)(b)		3,287		140,687
				1,385,267

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Highways & Railtracks – 0.5%
Atlantia SpA		17,776	$	396,538
Atlas Arteria Ltd.		43,029		181,143
Getlink SE		14,168		224,201
Jiangsu Expressway Co., Ltd. – Class H		43,124		30,417
Shenzhen Expressway Corp. Ltd. – Class H		21,630		15,528
Transurban Group(a)		498,103		4,225,381
Yuexiu Transport Infrastructure Ltd.		33,065		12,942
				5,086,150
Marine – 0.0%
SITC International Holdings Co., Ltd.		101,000		165,418
Marine Ports & Services – 0.0%
China Merchants Port Holdings Co., Ltd.		47,253		55,399
COSCO SHIPPING Ports Ltd.		59,696		29,439
Hamburger Hafen und Logistik AG		793		9,288
Hutchison Port Holdings Trust		178,300		29,121
Westshore Terminals Investment Corp.(a)		1,294		23,147
				146,394
Road & Rail – 0.1%
Aurizon Holdings Ltd.		513,638		1,190,288
				9,003,384
Semiconductors & Semiconductor Equipment – 0.9%
Semiconductor Equipment – 0.5%
Applied Materials, Inc.		11,454		1,011,274
ASML Holding NV		3,124		1,465,427
Enphase Energy, Inc.(b)		4,343		1,333,301
KLA Corp.		1,092		345,563
SolarEdge Technologies, Inc.(b)		1,804		414,974
Xinyi Solar Holdings Ltd.		444,000		440,802
				5,011,341
Semiconductors – 0.4%
Canadian Solar, Inc.(b)		19,902		674,678
LONGi Green Energy Technology Co., Ltd. – Class A(b)		82,732		546,376
NVIDIA Corp.		5,619		758,396
QUALCOMM, Inc.		11,049		1,300,025
Wolfspeed, Inc.(a)(b)		6,685		526,444
				3,805,919
				8,817,260
Health Care Equipment & Services – 0.9%
Health Care Distributors – 0.3%
AmerisourceBergen Corp.		8,981		1,411,993
McKesson Corp.		3,871		1,507,251
				2,919,244

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Health Care Equipment – 0.1%
ABIOMED, Inc.(b)		1,321	$	332,998
Hologic, Inc.(b)		5,168		350,390
Inmode Ltd.(b)		6,523		223,869
				907,257
Health Care Supplies – 0.1%
Coloplast A/S – Class B		10,204		1,137,441
Health Care Technology – 0.1%
Veeva Systems, Inc. – Class A(b)		2,774		465,866
Managed Health Care – 0.3%
Centene Corp.(b)		17,500		1,489,775
Humana, Inc.		357		199,235
Molina Healthcare, Inc.(b)		3,875		1,390,582
UnitedHealth Group, Inc.		404		224,281
				3,303,873
				8,733,681
Insurance – 0.8%
Insurance Brokers – 0.2%
Aon PLC – Class A		5,352		1,506,535
Willis Towers Watson PLC		4,115		897,934
				2,404,469
Life & Health Insurance – 0.3%
Japan Post Holdings Co., Ltd.		66,500		447,184
Japan Post Insurance Co., Ltd.		87,200		1,290,835
Medibank Pvt Ltd.		570,753		1,027,736
NN Group NV		5,413		229,200
				2,994,955
Multi-line Insurance – 0.1%
Aviva PLC		102,679		492,513
Sampo Oyj – Class A		8,524		389,783
				882,296
Property & Casualty Insurance – 0.2%
Arch Capital Group Ltd.(b)		25,001		1,437,557
Fidelity National Financial, Inc.		25,616		1,008,758
				2,446,315
				8,728,035
Banks – 0.7%
Diversified Banks – 0.6%
Banco Bilbao Vizcaya Argentaria SA		38,744		199,872
Barclays PLC		197,141		334,992
BNP Paribas SA		6,659		312,266
Commerzbank AG(b)		13,541		108,188
JPMorgan Chase & Co.		10,970		1,380,904
National Bank of Canada		12,998		885,011

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Natwest Group PLC		112,343	$	302,573
Oversea-Chinese Banking Corp., Ltd.		68,000		583,718
Skandinaviska Enskilda Banken AB – Class A		37,694		397,423
Societe Generale SA		57,128		1,310,346
Standard Chartered PLC		99,680		595,562
				6,410,855
Regional Banks – 0.1%
Resona Holdings, Inc.		277,600		1,046,261
				7,457,116
Media & Entertainment – 0.5%
Advertising – 0.0%
Dentsu Group, Inc.		11,300		351,468
Cable & Satellite – 0.0%
SES SA		13,532		95,982
Interactive Home Entertainment – 0.1%
Electronic Arts, Inc.		11,548		1,454,586
Interactive Media & Services – 0.4%
Alphabet, Inc. – Class A(b)		17,717		1,674,434
Alphabet, Inc. – Class C(b)		16,366		1,549,205
Meta Platforms, Inc. – Class A(b)		4,506		419,779
				3,643,418
				5,545,454
Retailing – 0.5%
Automotive Retail – 0.1%
AutoZone, Inc.(b)		236		597,760
Department Stores – 0.0%
Next PLC		8,724		492,728
General Merchandise Stores – 0.0%
Dollarama, Inc.(a)		3,669		218,010
Internet & Direct Marketing Retail – 0.3%
Amazon.com, Inc.(b)		27,284		2,794,973
Specialty Retail – 0.1%
Ulta Beauty, Inc.(b)		3,296		1,382,243
				5,485,714
Telecommunication Services – 0.5%
Integrated Telecommunication Services – 0.5%
Cellnex Telecom SA(c)		56,647		1,854,070
China Tower Corp. Ltd. – Class H(c)		1,646,763		148,991

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Elisa Oyj		3,015	$	145,704
Eutelsat Communications SA		5,857		58,793
Helios Towers PLC(b)		15,533		22,318
Infrastrutture Wireless Italiane SpA(c)		169,617		1,497,067
RAI Way SpA(c)		3,359		16,091
Spark New Zealand Ltd.		348,074		1,036,133
Telstra Group Ltd.(a)		79,859		200,241
Vantage Towers AG		3,212		90,336
				5,069,744
Wireless Telecommunication Services – 0.0%
SoftBank Corp.		11,600		114,427
				5,184,171
Diversified Financials – 0.5%
Asset Management & Custody Banks – 0.3%
Ameriprise Financial, Inc.		4,678		1,446,063
Brookfield Infrastructure Corp. – Class A		3,431		147,945
Carlyle Group, Inc. (The)		28,498		805,924
Hicl Infrastructure PLC		71,691		133,967
				2,533,899
Investment Banking & Brokerage – 0.1%
Goldman Sachs Group, Inc. (The)		3,583		1,234,379
Mortgage REITs – 0.1%
Annaly Capital Management, Inc.		46,964		871,182
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		13,439		365,272
				1,236,454
				5,004,732
Consumer Durables & Apparel – 0.4%
Apparel, Accessories & Luxury Goods – 0.1%
Pandora A/S		8,720		458,702
Consumer Electronics – 0.1%
Panasonic Holdings Corp.(a)		110,500		787,049
Homebuilding – 0.2%
Desarrolladora Homex SAB de CV(b)		1,590		2
Installed Building Products, Inc.		5,065		435,590
Open House Group Co., Ltd.(a)		9,100		323,682
PulteGroup, Inc.		42,130		1,684,779
Urbi Desarrollos Urbanos SAB de CV(b)		9		3
				2,444,056
				3,689,807

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Consumer Services – 0.3%
Casinos & Gaming – 0.0%
La Francaise des Jeux SAEM(c)		2,851	$	92,910
Hotels, Resorts & Cruise Lines – 0.1%
Booking Holdings, Inc.(b)		175		327,159
Marriott International, Inc./MD – Class A		2,015		322,622
				649,781
Restaurants – 0.1%
Chipotle Mexican Grill, Inc.(b)		158		236,736
Domino’s Pizza, Inc.		3,759		1,248,890
Sodexo SA		2,624		232,440
Yum! Brands, Inc.		2,053		242,767
				1,960,833
Specialized Consumer Services – 0.1%
WW International, Inc.(b)		153,085		691,944
				3,395,468
Automobiles & Components – 0.3%
Auto Parts & Equipment – 0.1%
Aisin Corp.		35,300		906,142
Automobile Manufacturers – 0.2%
Nissan Motor Co., Ltd.		145,700		464,390
Tesla, Inc.(b)		7,636		1,737,495
				2,201,885
				3,108,027
Food & Staples Retailing – 0.3%
Food Distributors – 0.1%
Sysco Corp.		12,936		1,119,740
Food Retail – 0.1%
Alimentation Couche-Tard, Inc.		16,303		729,976
George Weston Ltd.		1,089		119,863
Kroger Co. (The)		8,836		417,855
				1,267,694
Hypermarkets & Super Centers – 0.1%
Costco Wholesale Corp.		1,151		577,226
				2,964,660
Information Technology – 0.2%
Technology Hardware, Storage & Peripherals – 0.2%
NetApp, Inc.		11,621		804,987
Ricoh Co., Ltd.		104,400		765,021
				1,570,008
Household & Personal Products – 0.1%
Household Products – 0.1%
Colgate-Palmolive Co.		20,102		1,484,332

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Industrials – 0.1%
Machinery – 0.1%
AGCO Corp.		10,094	$	1,253,372
CNH Industrial NV		16,410		212,297
				1,465,669
Residential – 0.1%
Homebuilding – 0.1%
Ez Tec Empreendimentos e Participacoes SA		285,700		1,152,092
Total Common Stocks (cost $738,921,855)				698,300,835
INVESTMENT COMPANIES – 1.1%
Funds and Investment Trusts – 1.1%(f)
3i Infrastructure PLC		22,021		79,330
JPMorgan Alerian MLP Index ETN(a)		179,740		4,117,843
VanEck Agribusiness ETF		45,479		4,040,809
VanEck Gold Miners ETF/USA(a)		103,210		2,493,554
Total Investment Companies (cost $9,273,833)				10,731,536
SHORT-TERM INVESTMENTS – 27.6%
Investment Companies – 27.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(g)(h)(i) (cost $284,519,965)		284,519,965		284,519,965
Total Investments Before Security Lending Collateral for Securities Loaned – 96.5% (cost $1,032,715,653)				993,552,336
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.6%
Investment Companies – 0.6%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(g)(h)(i) (cost $5,935,657)		5,935,657		5,935,657
Total Investments – 97.1% (cost $1,038,651,310)				999,487,993
Other assets less liabilities – 2.9%				30,192,139
Net Assets – 100.0%			$	1,029,680,132

38    ^|    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
Bloomberg Commodity Index Futures		1,295		December 2022	$	14,678,825	$	(368,251	)
Brent Crude Futures		228		March 2023		19,842,840		510,808
Coffee Robusta Futures		108		January 2023		2,001,240		(209,192	)
Coffee ‘C’ Futures		84		March 2023		5,482,575		(605,327	)
Copper Futures		140		December 2022		11,812,500		(847,736	)
Corn Futures		552		March 2023		19,230,300		(221,449	)
Cotton No.2 Futures		101		March 2023		3,617,820		(534,691	)
Gasoline RBOB Futures		81		February 2023		8,315,168		199,151
Gold 100 OZ Futures		207		December 2022		33,962,490		(1,731,052	)
KC HRW Wheat Futures		120		March 2023		5,845,500		(39,977	)
Lean Hogs Futures		225		April 2023		8,424,000		638,350
Live Cattle Futures		119		April 2023		7,571,970		197,686
LME Nickel Futures		53		November 2022		6,906,006		150,241
LME Nickel Futures		53		January 2023		6,930,969		82,212
LME Primary Aluminum Futures		217		November 2022		12,043,500		(303,732	)
LME Primary Aluminum Futures		217		January 2023		12,054,350		(38,318	)
LME Zinc Futures		111		November 2022		7,563,263		(1,224,137	)
LME Zinc Futures		115		January 2023		7,771,125		(469,525	)
Low SU Gasoil Futures		140		March 2023		13,023,500		(215,776	)
Natural Gas Futures		427		December 2022		28,211,890		(5,967,486	)
NY Harbor ULSD Futures		79		February 2023		10,828,957		(117,329	)
Platinum Futures		41		January 2023		1,906,705		23,434
Silver Futures		83		December 2022		7,934,385		(186,144	)
Soybean Futures		258		March 2023		18,414,750		187,814
Soybean Meal Futures		264		March 2023		10,805,520		215,180
Soybean Oil Futures		300		March 2023		12,263,400		847,877
Sugar 11 (World) Futures		379		April 2023		7,169,467		(418,019	)
Wheat (CBT) Futures		207		March 2023		9,307,238		(104,716	)
WTI Crude Futures		297		February 2023		24,615,360		428,104
Sold Contracts
Euro STOXX 50 Index Futures		68		December 2022		2,431,331		(157,212	)
FTSE 100 Index Futures		10		December 2022		815,088		(25,073	)
LME Nickel Futures		53		November 2022		6,906,006		(86,805	)
LME Primary Aluminum Futures		217		November 2022		12,043,500		(33,923	)
LME Zinc Futures		111		November 2022		7,563,263		469,493
MSCI Emerging Markets Futures		174		December 2022		7,426,320		1,113,341
S&P 500 E-Mini Futures		57		December 2022		11,066,550		(640,171	)
S&P/TSX 60 Index Futures		4		December 2022		691,511		(33,215	)
SPI 200 Futures		5		December 2022		548,180		(10,162	)
TOPIX Index Futures		8		December 2022		1,036,215		(26,127	)
							$	(9,551,854	)

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

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)
Bank of America, NA		USD	2,315		GBP	1,960		11/17/2022	$	(66,193	)
Bank of America, NA		NZD	1,071		USD	631		11/18/2022		7,864
Bank of America, NA		USD	1,027		MXN	21,145		11/18/2022		37,782
Bank of America, NA		USD	1,883		PEN	7,351		11/22/2022		(41,932	)
Bank of America, NA		SEK	13,210		USD	1,171		12/01/2022		(27,969	)
Bank of America, NA		USD	2,714		SEK	29,410		12/01/2022		(45,375	)
Bank of America, NA		JPY	109,211		USD	770		12/02/2022		32,803
Bank of America, NA		USD	582		JPY	84,304		12/02/2022		(13,025	)
Bank of America, NA		CHF	1,580		USD	1,622		12/07/2022		37,934
Bank of America, NA		EUR	9,782		USD	9,449		12/08/2022		(244,130	)
Bank of America, NA		KRW	5,619,214		USD	3,932		01/30/2023		(15,283	)
Barclays Bank PLC		USD	4,620		AUD	7,403		11/16/2022		117,643
Barclays Bank PLC		USD	1,101		AUD	1,698		11/16/2022		(14,422	)
Barclays Bank PLC		USD	9,415		JPY	1,397,402		11/16/2022		(2,469	)
Barclays Bank PLC		USD	2,250		NOK	23,980		11/16/2022		58,085
Barclays Bank PLC		USD	1,845		SEK	20,079		11/16/2022		(25,179	)
Barclays Bank PLC		PEN	12,513		USD	3,179		11/22/2022		44,784
Barclays Bank PLC		USD	1,515		PEN	6,071		11/22/2022		5,958
Barclays Bank PLC		USD	6,307		CZK	158,064		11/30/2022		60,518
Barclays Bank PLC		USD	1,278		HUF	544,013		11/30/2022		24,869
Barclays Bank PLC		USD	1,042		SGD	1,460		12/07/2022		(10,909	)
Barclays Bank PLC		MYR	136,020		USD	30,475		12/15/2022		1,696,465
Barclays Bank PLC		USD	27,089		MYR	120,810		12/15/2022		(1,528,164	)
Barclays Bank PLC		ZAR	132,806		USD	7,306		12/15/2022		100,149
Barclays Bank PLC		TWD	35,921		USD	1,115		12/21/2022		418
Barclays Bank PLC		USD	3,528		CNH	25,323		02/16/2023		(53,362	)
BNP Paribas SA		GBP	1,257		USD	1,428		11/17/2022		(14,567	)
BNP Paribas SA		USD	1,019		NZD	1,652		11/18/2022		(58,230	)
BNP Paribas SA		USD	980		NOK	10,095		12/01/2022		(8,313	)
BNP Paribas SA		CHF	688		USD	705		12/07/2022		15,561
BNP Paribas SA		IDR	25,860,133		USD	1,654		01/26/2023		5,266
BNP Paribas SA		USD	16,019		IDR	249,834,791		01/26/2023		(90,167	)
Brown Brothers Harriman & Co.		SEK	8,974		USD	797		12/01/2022		(17,174	)
Brown Brothers Harriman & Co.		USD	3,341		EUR	3,414		12/08/2022		41,924
Citibank, NA		AUD	1,566		USD	994		01/19/2023		(10,745	)
Citibank, NA		USD	6,067		PHP	362,023		01/26/2023		120,908
Credit Suisse International		USD	3,901		COP	17,346,841		11/22/2022		(400,499	)
Credit Suisse International		HUF	2,844,489		USD	6,845		11/30/2022		34,185
Credit Suisse International		PLN	8,980		USD	1,884		11/30/2022		9,259
Deutsche Bank AG		BRL	17,460		USD	3,297		11/03/2022		(83,289	)
Deutsche Bank AG		USD	3,321		BRL	17,460		11/03/2022		58,831
Deutsche Bank AG		THB	817,142		USD	23,152		11/10/2022		1,670,315
Deutsche Bank AG		CHF	9,493		USD	9,555		11/16/2022		60,375
Deutsche Bank AG		CHF	1,957		USD	1,955		11/16/2022		(1,818	)
Deutsche Bank AG		EUR	2,690		USD	2,625		11/16/2022		(35,872	)
Deutsche Bank AG		USD	6,951		AUD	11,048		11/16/2022		118,330
Deutsche Bank AG		USD	6,921		CAD	9,395		11/16/2022		(24,134	)
Deutsche Bank AG		USD	4,359		EUR	4,337		11/16/2022		(68,360	)

40    ^|    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)
Deutsche Bank AG		USD	1,914		JPY	283,060		11/16/2022	$	(7,049	)
Deutsche Bank AG		USD	12,655		NZD	22,490		11/16/2022		423,865
Deutsche Bank AG		MXN	58,739		USD	2,917		11/18/2022		(39,864	)
Deutsche Bank AG		USD	6,216		MXN	124,572		11/18/2022		54,753
Deutsche Bank AG		COP	15,590,304		USD	3,135		11/22/2022		(10,868	)
Deutsche Bank AG		CZK	446,748		USD	17,863		11/30/2022		(132,989	)
Deutsche Bank AG		USD	13,370		HUF	5,462,406		11/30/2022		(290,466	)
Deutsche Bank AG		DKK	23,781		USD	3,185		12/01/2022		21,500
Deutsche Bank AG		ZAR	29,824		USD	1,636		12/15/2022		18,136
Deutsche Bank AG		INR	394,961		USD	4,763		12/21/2022		19,885
Deutsche Bank AG		USD	2,027		CAD	2,741		01/19/2023		(12,492	)
Deutsche Bank AG		CNH	116,714		USD	16,308		02/16/2023		291,942
Goldman Sachs Bank USA		BRL	30,521		USD	5,806		11/03/2022		(102,841	)
Goldman Sachs Bank USA		USD	5,631		BRL	30,521		11/03/2022		277,286
Goldman Sachs Bank USA		NOK	93,871		USD	9,140		11/16/2022		106,478
Goldman Sachs Bank USA		NZD	14,774		USD	8,596		11/16/2022		4,254
Goldman Sachs Bank USA		USD	4,731		CAD	6,492		11/16/2022		33,894
Goldman Sachs Bank USA		USD	1,269		NOK	13,368		11/16/2022		17,089
Goldman Sachs Bank USA		USD	2,684		NZD	4,819		11/16/2022		118,750
Goldman Sachs Bank USA		USD	5,431		MXN	111,793		11/18/2022		196,637
Goldman Sachs Bank USA		CLP	3,947,706		USD	4,041		11/22/2022		(130,531	)
Goldman Sachs Bank USA		PEN	7,384		USD	1,849		11/22/2022		(511	)
Goldman Sachs Bank USA		USD	2,308		CLP	2,157,233		11/22/2022		(28,719	)
Goldman Sachs Bank USA		USD	2,959		HUF	1,205,746		11/30/2022		(71,917	)
Goldman Sachs Bank USA		USD	916		JPY	131,472		12/02/2022		(28,535	)
Goldman Sachs Bank USA		MYR	9,623		USD	2,164		12/15/2022		127,674
Goldman Sachs Bank USA		USD	17,774		INR	1,446,302		12/21/2022		(405,068	)
Goldman Sachs Bank USA		USD	5,326		PHP	315,800		01/26/2023		71,107
Goldman Sachs Bank USA		CNH	29,789		USD	4,092		02/16/2023		4,045
HSBC Bank USA		USD	8,896		PLN	42,764		11/30/2022		33,908
JPMorgan Chase Bank, NA		BRL	12,935		USD	2,444		11/03/2022		(60,450	)
JPMorgan Chase Bank, NA		USD	2,461		BRL	12,935		11/03/2022		43,585
JPMorgan Chase Bank, NA		EUR	12,952		USD	12,770		11/16/2022		(42,778	)
JPMorgan Chase Bank, NA		GBP	11,000		USD	12,484		11/16/2022		(134,903	)
JPMorgan Chase Bank, NA		SEK	107,078		USD	9,624		11/16/2022		(82,562	)
JPMorgan Chase Bank, NA		CLP	3,926,733		USD	4,181		11/22/2022		31,699
JPMorgan Chase Bank, NA		PEN	7,854		USD	2,008		11/22/2022		40,942
JPMorgan Chase Bank, NA		USD	839		CLP	745,890		11/22/2022		(50,626	)
JPMorgan Chase Bank, NA		PLN	29,622		USD	6,230		11/30/2022		44,483
JPMorgan Chase Bank, NA		USD	1,271		CZK	31,495		11/30/2022		(2,185	)
JPMorgan Chase Bank, NA		USD	1,406		HUF	587,407		11/30/2022		943
JPMorgan Chase Bank, NA		USD	4,595		PLN	22,370		11/30/2022		76,119
JPMorgan Chase Bank, NA		TWD	147,713		USD	4,623		12/21/2022		41,031
Morgan Stanley Capital Services, Inc.		GBP	2,182		USD	2,596		11/17/2022		92,190
Morgan Stanley Capital Services, Inc.		USD	1,529		GBP	1,393		11/17/2022		69,862
Morgan Stanley Capital Services, Inc.		MXN	21,145		USD	1,053		11/18/2022		(11,664	)
Morgan Stanley Capital Services, Inc.		USD	7,639		COP	34,041,724		11/22/2022		(770,056	)

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation (Depreciation)
Morgan Stanley Capital Services, Inc.		SEK	8,582		USD	783		12/01/2022	$	3,947
Morgan Stanley Capital Services, Inc.		JPY	264,817		USD	1,839		12/02/2022		52,447
Morgan Stanley Capital Services, Inc.		JPY	168,886		USD	1,132		12/02/2022		(7,259	)
Morgan Stanley Capital Services, Inc.		USD	653		EUR	669		12/08/2022		10,408
Morgan Stanley Capital Services, Inc.		USD	916		EUR	924		12/08/2022		(771	)
Morgan Stanley Capital Services, Inc.		MYR	22,046		USD	4,653		12/15/2022		(10,942	)
Morgan Stanley Capital Services, Inc.		USD	9,814		MYR	43,531		12/15/2022		(604,161	)
Morgan Stanley Capital Services, Inc.		TWD	61,686		USD	1,937		12/21/2022		23,866
Natwest Markets PLC		GBP	983		USD	1,153		11/17/2022		25,325
Natwest Markets PLC		USD	2,013		JPY	287,824		12/02/2022		(70,532	)
Natwest Markets PLC		USD	735		CNH	5,261		02/16/2023		(13,386	)
Societe Generale		USD	858		SEK	9,419		12/01/2022		(3,449	)
Standard Chartered Bank		TWD	61,686		USD	1,938		12/21/2022		24,779
State Street Bank & Trust Co.		THB	149,191		USD	4,074		11/10/2022		151,605
State Street Bank & Trust Co.		USD	11,713		THB	419,310		11/10/2022		(689,985	)
State Street Bank & Trust Co.		GBP	789		USD	898		11/17/2022		(7,073	)
State Street Bank & Trust Co.		USD	123		GBP	109		11/17/2022		1,997
State Street Bank & Trust Co.		NZD	593		USD	354		11/18/2022		9,416
State Street Bank & Trust Co.		NOK	10,198		USD	994		12/01/2022		12,158
State Street Bank & Trust Co.		SEK	1,810		USD	165		12/01/2022		368
State Street Bank & Trust Co.		USD	860		SEK	9,430		12/01/2022		(3,826	)
State Street Bank & Trust Co.		JPY	48,349		USD	335		12/02/2022		8,632
State Street Bank & Trust Co.		CHF	1,524		USD	1,598		12/07/2022		69,710
State Street Bank & Trust Co.		SGD	1,460		USD	1,028		12/07/2022		(4,003	)
State Street Bank & Trust Co.		USD	362		EUR	366		12/08/2022		406
State Street Bank & Trust Co.		USD	805		HKD	6,310		01/12/2023		(990	)
UBS AG		USD	610		JPY	87,664		12/02/2022		(18,500	)
UBS AG		USD	4,064		CHF	3,973		12/07/2022		(80,370	)
									$	183,446

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

30,950

03/18/2031

2.378%

CPI#

Maturity

$

353,391

$

– 0

–

$

353,391

Goldman Sachs International

USD

53,750

04/26/2027

2.175%

CPI#

Maturity

3,139,466

– 0

–

3,139,466

Goldman Sachs International

USD

110,190

04/25/2030

1.900%

CPI#

Maturity

3,537,697

– 0

–

3,537,697

Goldman Sachs International

USD

58,060

03/16/2031

2.289%

CPI#

Maturity

873,507

– 0

–

873,507

$

7,904,061

$

– 0

–

$

7,904,061

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

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

CONSOLIDATED 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
UBS AG
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR Plus 0.37%	Quarterly		USD	2,297		1/17/23	$	179,284
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR Plus 0.43%	Quarterly		USD	1,518		1/17/23		118,607
FTSE EPRA/NAREIT Developed Real Estate Index	OBFR Plus 0.32%	Quarterly		USD	43,809		9/15/23		3,238,850
								$	3,536,741

(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, 2022, the aggregate market value of these securities amounted to $10,330,916 or 1.0% 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) 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.

(h) Affiliated investments.

(i) 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 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 SEK – Swedish Krona SGD – Singapore Dollar THB – Thailand Baht TWD – New Taiwan Dollar USD – United States Dollar ZAR – South African Rand

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

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Glossary:

ADR – American Depositary Receipt

CBT – Chicago Board of Trade

CPI – Consumer Price Index

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

LME – London Metal Exchange

MSCI – Morgan Stanley Capital International

NAREIT – National Association of Real Estate Investment Trusts

OBFR – Overnight Bank Funding Rate

PJSC – Public Joint Stock Company

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

REG – Registered Shares

REIT – Real Estate Investment Trust

SPI – Share Price Index

TOPIX – Tokyo Price Index

TSX – Toronto Stock Exchange

ULSD – Ultra-Low Sulfur Diesel

WTI – West Texas Intermediate

See notes to consolidated financial statements..

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

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $748,195,688)	$	709,032,371	(a)
Affiliated issuers (cost $290,455,622—including investment of cash collateral for securities loaned of $5,935,657)		290,455,622
Cash collateral due from broker		29,496,542
Foreign currencies, at value (cost $3,031,450)		3,012,535
Receivable for investment securities sold		13,443,196
Unrealized appreciation on inflation swaps		7,904,061
Unrealized appreciation on forward currency exchange contracts		7,017,347
Unrealized appreciation on total return swaps		3,536,741
Receivable for variation margin on futures		3,267,250
Unaffiliated dividends receivable		1,034,188
Affiliated dividends receivable		501,587
Receivable for capital stock sold		429,844
Total assets		1,069,131,284
Liabilities
Payable for investment securities purchased and foreign currency transactions		14,392,879
Cash collateral due to broker		10,718,000
Unrealized depreciation on forward currency exchange contracts		6,833,901
Payable for collateral received on securities loaned		5,935,657
Advisory fee payable		569,597
Payable for capital stock redeemed		382,754
Distribution fee payable		126,341
Administrative fee payable		31,456
Transfer Agent fee payable		16,962
Foreign capital gains tax payable		13,123
Directors’ fees payable		2,904
Accrued expenses		427,578
Total liabilities		39,451,152
Net Assets	$	1,029,680,132
Composition of Net Assets
Capital stock, at par	$	114,598
Additional paid-in capital		1,201,795,027
Accumulated loss		(172,229,493	)
Net Assets	$	1,029,680,132

(a) Includes securities on loan with a value of $19,553,104 (see Note E).

See notes to consolidated financial statements.

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

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	$	6,689,786		731,737	$	9.14	*
C	$	574,031		61,644	$	9.31
Advisor	$	31,703,149		3,470,439	$	9.14
R	$	69,952		7,635	$	9.16
K	$	1,059,401		117,440	$	9.02
I	$	27,259,597		3,018,366	$	9.03
1	$	638,228,592		71,328,163	$	8.95
2	$	9,199		1,000	$	9.20
Z	$	324,086,425		35,861,280	$	9.04

* The maximum offering price per share for Class A shares was $9.55 which reflects a sales charge of 4.25%.

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $1,417,613)	$	29,398,903
Affiliated issuers		2,173,764
Securities lending income		328,329		$	31,900,996
Expenses
Advisory fee (see Note B)		9,235,305
Distribution fee—Class A		14,625
Distribution fee—Class C		3,303
Distribution fee—Class R		357
Distribution fee—Class K		2,709
Distribution fee—Class 1		1,714,848
Transfer agency—Class A		5,760
Transfer agency—Class C		393
Transfer agency—Advisor Class		26,706
Transfer agency—Class R		187
Transfer agency—Class K		2,179
Transfer agency—Class I		12,476
Transfer agency—Class 1		146,813
Transfer agency—Class 2		1
Transfer agency—Class Z		117,358
Custody and accounting		309,145
Registration fees		163,022
Audit and tax		137,222
Administrative		88,018
Printing		61,710
Legal		55,093
Directors’ fees		33,777
Miscellaneous		119,554
Total expenses		12,250,561
Less: expenses waived and reimbursed by the Adviser (see Notes B & E)		(218,051	)
Net expenses					12,032,510
Net investment income					19,868,486

See notes to consolidated financial statements.

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

CONSOLIDATED STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	31,101,671
Forward currency exchange contracts		1,833,380
Futures		54,611,621
Swaps		32,065,756
Foreign currency transactions		(670,745	)
Net change in unrealized appreciation (depreciation) of:
Investments(b)		(206,853,320	)
Forward currency exchange contracts		(77,977	)
Futures		(19,817,305	)
Swaps		(987,278	)
Foreign currency denominated assets and liabilities		(24,905	)
Net loss on investment and foreign currency transactions		(108,819,102	)
Contributions from Affiliates (see Note B)		1,612
Net Decrease in Net Assets from Operations	$	(88,949,004	)

(a) Net of foreign realized capital gains taxes of $4,438.

(b) Net of increase in accrued foreign capital gains taxes on unrealized gains of $9,091.

See notes to consolidated financial statements.

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CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	19,868,486		$	16,202,556
Net realized gain on investment and foreign currency transactions		118,941,683			181,993,385
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(227,760,785	)		221,060,621
Contributions from Affiliates (see Note B)		1,612			– 0	–
Net increase (decrease) in net assets from operations		(88,949,004	)		419,256,562
Distributions to Shareholders
Class A		(464,964	)		(221,879	)
Class C		(12,613	)		(9,571	)
Advisor Class		(1,665,845	)		(412,387	)
Class R		(5,635	)		(652	)
Class K		(108,197	)		(32,508	)
Class I		(2,495,051	)		(808,887	)
Class 1		(61,937,570	)		(16,708,336	)
Class 2		(981	)		(293	)
Class Z		(54,143,835	)		(15,915,046	)
Capital Stock Transactions
Net increase (decrease)		(92,876,275	)		18,064,568
Total increase (decrease)		(302,659,970	)		403,211,571
Net Assets
Beginning of period		1,332,340,102			929,128,531
End of period	$	1,029,680,132		$	1,332,340,102

See notes to consolidated financial statements.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2022

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, 2022, consolidated net assets of the Fund were $1,029,680,132, of which $117,236,096, or 11%, 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, 2022, 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 convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R, 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 without an

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, the Adviser serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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., 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

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.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2022:

Investments in Securities:	Level 1			Level 2			Level 3			Total
Assets:
Common Stocks:
Real Estate	$	178,322,072		$	93,392,590		$	– 0	–	$	271,714,662
Energy		68,714,763			46,447,426			0	(a)		115,162,189
Materials		28,185,075			33,606,672			0	(a)		61,791,747
Capital Goods		30,869,117			15,425,553			– 0	–		46,294,670
Utilities		25,519,352			19,296,787			– 0	–		44,816,139
Pharmaceuticals & Biotechnology		13,174,582			6,523,859			– 0	–		19,698,441
Software & Services		19,483,272			– 0	–		– 0	–		19,483,272
Food Beverage & Tobacco		10,102,045			6,561,457			– 0	–		16,663,502
Technology Hardware & Equipment		8,706,378			1,604,864			– 0	–		10,311,242
Commercial & Professional Services		8,178,199			1,397,162			– 0	–		9,575,361
Transportation		1,135,635			7,867,749			– 0	–		9,003,384
Semiconductors & Semiconductor Equipment		6,364,655			2,452,605			– 0	–		8,817,260
Health Care Equipment & Services		7,596,240			1,137,441			– 0	–		8,733,681
Insurance		4,850,784			3,877,251			– 0	–		8,728,035
Banks		2,265,915			5,191,201			– 0	–		7,457,116
Media & Entertainment		5,098,004			447,450			– 0	–		5,545,454
Retailing		4,992,986			492,728			– 0	–		5,485,714
Telecommunication Services		– 0	–		5,184,171			– 0	–		5,184,171
Diversified Financials		4,870,765			133,967			– 0	–		5,004,732
Consumer Durables & Apparel		2,120,374			1,569,433			– 0	–		3,689,807
Consumer Services		3,070,118			325,350			– 0	–		3,395,468
Automobiles & Components		1,737,495			1,370,532			– 0	–		3,108,027
Food & Staples Retailing		2,964,660			– 0	–		– 0	–		2,964,660
Information Technology		804,987			765,021			– 0	–		1,570,008

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Household & Personal Products

$

1,484,332

$

– 0

–

$

– 0

–

$

1,484,332

Industrials

1,253,372

212,297

– 0

–

1,465,669

Residential

1,152,092

– 0

–

– 0

–

1,152,092

Investment Companies

10,652,206

79,330

– 0

–

10,731,536

Short-Term Investments

284,519,965

– 0

–

– 0

–

284,519,965

Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund

5,935,657

– 0

–

– 0

–

5,935,657

Total Investments in Securities

744,125,097

255,362,896

0

(a)

999,487,993

Other Financial Instruments(b):

Assets:

Futures

5,063,691

– 0

–

– 0

–

5,063,691

(c)

Forward Currency Exchange Contracts

– 0

–

7,017,347

– 0

–

7,017,347

Inflation (CPI) Swaps

– 0

–

7,904,061

– 0

–

7,904,061

Total Return Swaps

– 0

–

3,536,741

– 0

–

3,536,741

Liabilities:

Futures

(14,615,545

)

– 0

–

– 0

–

(14,615,545

)(c)

Forward Currency Exchange Contracts

– 0

–

(6,833,901

)

– 0

–

(6,833,901

)

Total

$

734,573,243

$

266,987,144

$

0

(a)

$

1,001,560,387

(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, written options and written swaptions which are valued at market value.

(c) 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. 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,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2023. For the year ended October 31, 2022, such reimbursement amounted to $29.

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, 2022, the reimbursement for such services amounted to $88,018.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 $220,207 for the year ended October 31, 2022.

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 $955 from the sale of Class A shares and received $0 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $214,886.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	233,997	$	1,559,249	$	1,508,726	$	284,520	$	2,174
Government Money Market Portfolio*		20,370		188,344		202,778		5,936		42
Total							$	290,456	$	2,216

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

During the year ended October 31, 2022, the Adviser reimbursed the Fund $1,612 for trading losses incurred due to a trade entry error.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 $160,653, $16,966, $19,723 and $1,945,115 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, 2022 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	737,023,974		$	897,425,817
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	$	1,404,961,428
Gross unrealized appreciation	$	79,557,802
Gross unrealized depreciation		(446,355,053	)
Net unrealized depreciation	$	(366,797,251	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2022, 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, 2022, 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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2022, 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, 2022, 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.

During the year ended October 31, 2022, the Fund held variance swaps for hedging and non hedging purposes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2022, 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	$	1,113,341	*	Receivable/Payable for variation margin on futures	$	891,960	*
Commodity contracts	Receivable/Payable for variation margin on futures		3,950,350	*	Receivable/Payable for variation margin on futures		13,723,585	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		7,017,347		Unrealized depreciation on forward currency exchange contracts		6,833,901
Interest rate contracts	Unrealized appreciation on inflation swaps		7,904,061

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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
Equity contracts	Unrealized appreciation on total return swaps	$	3,536,741
Total		$	23,521,840		$	21,449,446

* 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)
Equity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures	$	33,147		$	(136,554	)
Commodity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures		54,578,474			(19,680,751	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		1,833,380			(77,977	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		9,007,296			(7,156,488	)
Commodity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(2,691,262	)		991,234

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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 exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps	$	(66,699	)	$	187,124
Equity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		25,816,421			4,990,852
Total		$	88,510,757		$	(20,882,560	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Futures:
Average notional amount of buy contracts	$	401,699,453
Average notional amount of sale contracts	$	30,987,272
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	467,997,320
Average principal amount of sale contracts	$	495,946,253
Inflation Swaps:
Average notional amount	$	319,308,462
Total Return Swaps:
Average notional amount	$	122,744,236
Variance Swaps:
Average notional amount	$	1,445,350	(a)

(a) Positions were open for five 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 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, 2022. 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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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

$

116,383

$

(116,383

)

$

– 0

–

$

– 0

–

$

– 0

–

Barclays Bank PLC

2,108,889

(1,634,505

)

– 0

–

– 0

–

474,384

BNP Paribas SA

20,827

(20,827

)

– 0

–

– 0

–

– 0

–

Brown Brothers Harriman & Co.

41,924

(17,174

)

– 0

–

– 0

–

24,750

Citibank, NA

474,299

(10,745

)

– 0

–

– 0

–

463,554

Credit Suisse International

43,444

(43,444

)

– 0

–

– 0

–

– 0

–

Deutsche Bank AG

2,737,932

(707,201

)

– 0

–

– 0

–

2,030,731

Goldman Sachs Bank USA/Goldman Sachs International

8,507,884

(768,122

)

(7,090,000

)

– 0

–

649,762

HSBC Bank USA

33,908

– 0

–

– 0

–

– 0

–

33,908

JPMorgan Chase Bank, NA

278,802

(278,802

)

– 0

–

– 0

–

– 0

–

Morgan Stanley Capital Services, Inc.

252,720

(252,720

)

– 0

–

– 0

–

– 0

–

Natwest Markets PLC

25,325

(25,325

)

– 0

–

– 0

–

– 0

–

Standard Chartered Bank

24,779

– 0

–

(24,779

)

– 0

–

– 0

–

State Street Bank & Trust Co.

254,292

(254,292

)

– 0

–

– 0

–

– 0

–

UBS AG

3,536,741

(98,870

)

(3,437,871

)

– 0

–

– 0

–

Total

$

18,458,149

$

(4,228,410

)

$

(10,552,650

)

$

– 0

–

$

3,677,089

^

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

$

453,907

$

(116,383

)

$

– 0

–

$

– 0

–

$

337,524

Barclays Bank PLC

1,634,505

(1,634,505

)

– 0

–

– 0

–

– 0

–

BNP Paribas SA

171,277

(20,827

)

– 0

–

– 0

–

150,450

Brown Brothers Harriman & Co.

17,174

(17,174

)

– 0

–

– 0

–

– 0

–

Citibank, NA

10,745

(10,745

)

– 0

–

– 0

–

– 0

–

Credit Suisse International

400,499

(43,444

)

(320,000

)

– 0

–

37,055

Deutsche Bank AG

707,201

(707,201

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

768,122

(768,122

)

– 0

–

– 0

–

– 0

–

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NOTES TO CONSOLIDATED 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
JPMorgan Chase Bank, NA	$	373,504	$	(278,802	)	$	– 0	–	$	– 0	–	$	94,702
Morgan Stanley Capital Services, Inc.		1,404,853		(252,720	)		(1,152,133	)		– 0	–		– 0	–
Natwest Markets PLC		83,918		(25,325	)		– 0	–		– 0	–		58,593
Societe Generale		3,449		– 0	–		– 0	–		– 0	–		3,449
State Street Bank & Trust Co.		705,877		(254,292	)		– 0	–		– 0	–		451,585
UBS AG		98,870		(98,870	)		– 0	–		– 0	–		– 0	–
Total	$	6,833,901	$	(4,228,410	)	$	(1,472,133	)	$	– 0	–	$	1,133,358	^

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

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

2. Currency Transactions

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

NOTE 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

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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 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A summary of the Fund’s transactions surrounding securities lending for the year ended October 31, 2022 is as follows:

								Government Money Market Portfolio
Market Value of Securities on Loan*		Cash Collateral*		Market Value of Non-Cash Collateral*		Income from Borrowers		Income Earned		Advisory Fee Waived
$	19,553,104	$	5,935,657	$	15,561,534	$	285,898	$	42,431	$	3,136

* As of October 31, 2022.

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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		349,177			317,223		$	3,423,280		$	3,288,034
Shares issued in reinvestment of dividends		45,750			25,555			433,245			214,154
Shares converted from Class C		10,676			47,783			109,344			457,252
Shares redeemed		(164,526	)		(804,855	)		(1,613,537	)		(7,247,828	)
Net increase (decrease)		241,077			(414,294	)	$	2,352,332		$	(3,288,388	)
Class C
Shares sold		55,339			64		$	550,702		$	591
Shares issued in reinvestment of dividends		1,299			1,081			12,612			9,141
Shares converted to Class A		(10,463	)		(47,515	)		(109,344	)		(457,252	)
Shares redeemed		(2,901	)		(1,542	)		(28,381	)		(14,427	)
Net increase (decrease)		43,274			(47,912	)	$	425,589		$	(461,947	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Advisor Class
Shares sold		2,640,030			543,513		$	26,830,283		$	5,271,583
Shares issued in reinvestment of dividends		135,873			35,548			1,282,638			296,466
Shares redeemed		(982,915	)		(442,417	)		(9,652,710	)		(4,262,588	)
Net increase		1,792,988			136,644		$	18,460,211		$	1,305,461
Class R
Shares sold		926			873		$	9,244		$	8,390
Shares issued in reinvestment of dividends		591			77			5,634			652
Shares redeemed		(26	)		(1,930	)		(262	)		(18,669	)
Net increase (decrease)		1,491			(980	)	$	14,616		$	(9,627	)
Class K
Shares sold		123,524			70,470		$	1,212,120		$	687,598
Shares issued in reinvestment of dividends		11,559			3,926			108,197			32,508
Shares redeemed		(125,956	)		(158,429	)		(1,234,185	)		(1,448,034	)
Net increase (decrease)		9,127			(84,033	)	$	86,132		$	(727,928	)
Class I
Shares sold		541,727			286,467		$	5,327,187		$	2,889,024
Shares issued in reinvestment of dividends		267,422			97,928			2,495,050			808,887
Shares redeemed		(315,402	)		(738,310	)		(3,078,805	)		(6,968,310	)
Net increase (decrease)		493,747			(353,915	)	$	4,743,432		$	(3,270,399	)
Class 1
Shares sold		14,122,033			13,434,001		$	137,649,533		$	126,050,237
Shares issued in reinvestment of dividends		5,191,186			1,712,373			48,122,290			14,041,460
Shares redeemed		(11,984,056	)		(13,764,673	)		(117,086,783	)		(126,361,702	)
Net increase		7,329,163			1,381,701		$	68,685,040		$	13,729,995

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class Z
Shares sold		14,904,457			249,298		$	150,963,872		$	2,315,447
Shares issued in reinvestment of dividends		5,796,984			1,926,761			54,143,834			15,915,046
Shares redeemed		(41,035,392	)		(844,383	)		(392,751,333	)		(7,443,092	)
Net increase (decrease)		(20,333,951	)		1,331,676		$	(187,643,627	)	$	10,787,401

There were no transactions in capital shares for Class 2 for the year ended October 31, 2022 and the year ended October 31, 2021.

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) and regional and global conflicts, that affect large portions of the market.

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

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk—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.

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. 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the 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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2022.

NOTE I

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	120,834,691	$	34,109,559
Total distributions paid	$	120,834,691	$	34,109,559

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	77,586,580
Accumulated capital and other losses		(18,244,552	)(a)
Unrealized appreciation (depreciation)		(366,906,504	)(b)
Total accumulated earnings/(deficit)	$	(307,564,476	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $18,244,552. During the fiscal year, the Fund utilized $43,146,571 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) are 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, 2022, the Fund had a net short-term capital loss carryforward of $18,244,552, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the utilization of earnings and profits distributed to shareholders on redemption of shares, book/tax differences associated with the treatment of earnings from the Subsidiary, and contributions from the Adviser resulted in a net increase in accumulated loss 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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.81			$  7.65			$  8.66			$  8.53			$  8.90
Income From Investment Operations
Net investment income(a)(b)		.14			.27			.09			.12			.14
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.86	)		3.14			(.96	)		.13			(.23	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.72	)		3.41			(.87	)		.25			(.09	)
Less: Dividends
Dividends from net investment income		(.95	)		(.25	)		(.14	)		(.12	)		(.28	)
Net asset value, end of period		$  9.14			$  10.81			$  7.65			$  8.66			$  8.53
Total Return
Total investment return based on net asset value(d)*		(7.01	)%		45.48	%+		(10.11	)%		2.97	%		(1.11	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,690			$5,306			$6,926			$10,634			$11,478
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.16	%		1.29	%		1.29	%		1.30	%		1.26	%
Expenses, before waivers/reimbursements(e)(f)‡		1.18	%		1.39	%		1.40	%		1.32	%		1.27	%
Net investment income(b)		1.46	%		2.86	%		1.10	%		1.42	%		1.52	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.86			$  7.66			$  8.63			$  8.49			$  8.83
Income From Investment Operations
Net investment income (loss)(a)(b)		.07			(.49	)		.03			.06			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.89	)		3.86			(.95	)		.11			(.23	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.82	)		3.37			(.92	)		.17			(.16	)
Less: Dividends
Dividends from net investment income		(.73	)		(.17	)		(.05	)		(.03	)		(.18	)
Net asset value, end of period		$  9.31			$  10.86			$  7.66			$  8.63			$  8.49
Total Return
Total investment return based on net asset value(d)*		(7.71	)%		44.41	%		(10.74	)%+		2.05	%+		(1.82	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$574			$199			$508			$754			$1,225
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.94	%		2.04	%		2.04	%		2.05	%		2.01	%
Expenses, before waivers/reimbursements(e)(f)‡		1.96	%		2.19	%		2.15	%		2.07	%		2.02	%
Net investment income (loss)(b)		.72	%		(5.20	)%		.34	%		.66	%		.78	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.79			$  7.63			$  8.63			$  8.51			$  8.89
Income From Investment Operations
Net investment income(a)(b)		.17			.16			.11			.14			.16
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.87	)		3.27			(.95	)		.12			(.24	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.70	)		3.43			(.84	)		.26			(.08	)
Less: Dividends
Dividends from net investment income		(.95	)		(.27	)		(.16	)		(.14	)		(.30	)
Net asset value, end of period		$  9.14			$  10.79			$  7.63			$  8.63			$  8.51
Total Return
Total investment return based on net asset value(d)*		(6.64	)%		45.82	%+		(9.79	)%		3.15	%		(.96	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$31,703			$18,096			$11,761			$18,611			$26,030
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.91	%		1.04	%		1.04	%		1.05	%		1.01	%
Expenses, before waivers/reimbursements(e)(f)‡		.93	%		1.17	%		1.14	%		1.07	%		1.02	%
Net investment income(b)		1.75	%		1.60	%		1.33	%		1.66	%		1.77	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.83			$  7.53			$  8.53			$  8.40			$  8.79
Income From Investment Operations
Net investment income (loss)(a)(b)		.11			(.02	)		.07			.10			.11
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.88	)		3.41			(.95	)		.11			(.23	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.77	)		3.39			(.88	)		.21			(.12	)
Less: Dividends
Dividends from net investment income		(.90	)		(.09	)		(.12	)		(.08	)		(.27	)
Net asset value, end of period		$  9.16			$  10.83			$  7.53			$  8.53			$  8.40
Total Return
Total investment return based on net asset value(d)*		(7.32	)%		45.23	%+		(10.32	)%		2.62	%		(1.47	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$70			$67			$54			$271			$271
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.53	%		1.54	%		1.54	%		1.55	%		1.55	%
Expenses, before waivers/reimbursements(e)(f)‡		1.59	%		1.57	%		1.60	%		1.57	%		1.58	%
Net investment income (loss)(b)		1.06	%		(.19	)%		.92	%		1.16	%		1.24	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.68			$  7.55			$  8.55			$  8.42			$  8.80
Income From Investment Operations
Net investment income (loss)(a)(b)		.13			(.02	)		.08			.12			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.85	)		3.39			(.94	)		.13			(.23	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.72	)		3.37			(.86	)		.25			(.10	)
Less: Dividends
Dividends from net investment income		(.94	)		(.24	)		(.14	)		(.12	)		(.28	)
Net asset value, end of period		$  9.02			$  10.68			$  7.55			$  8.55			$  8.42
Total Return
Total investment return based on net asset value(d)*		(7.08	)%		45.60	%+		(10.10	)%		3.03	%		(1.20	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,059			$1,157			$1,453			$2,069			$2,604
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.26	%		1.26	%		1.28	%		1.27	%		1.26	%
Expenses, before waivers/reimbursements(e)(f)‡		1.28	%		1.28	%		1.29	%		1.28	%		1.27	%
Net investment income (loss)(b)		1.33	%		(.18	)%		1.08	%		1.44	%		1.52	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Income From Investment Operations
Net investment income(a)(b)		.17			.09			.12			.15			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.86	)		3.32			(.94	)		.13			(.22	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.69	)		3.41			(.82	)		.28			(.05	)
Less: Dividends
Dividends from net investment income		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  9.03			$  10.70			$  7.58			$  8.58			$  8.46
Total Return
Total investment return based on net asset value(d)*		(6.75	)%		46.03	%+		(9.76	)%		3.39	%		(.69	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$27,260			$27,013			$21,817			$23,541			$12,213
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.86	%		.84	%		.86	%		.85	%		.83	%
Expenses, before waivers/reimbursements(e)(f)‡		.88	%		.85	%		.87	%		.86	%		.84	%
Net investment income(b)		1.74	%		.88	%		1.49	%		1.79	%		1.96	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.61			$  7.52			$  8.51			$  8.39			$  8.76
Income From Investment Operations
Net investment income(a)(b)		.15			.13			.10			.13			.15
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.85	)		3.23			(.93	)		.12			(.22	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.70	)		3.36			(.83	)		.25			(.07	)
Less: Dividends
Dividends from net investment income		(.96	)		(.27	)		(.16	)		(.13	)		(.30	)
Net asset value, end of period		$  8.95			$  10.61			$  7.52			$  8.51			$  8.39
Total Return
Total investment return based on net asset value(d)*		(6.85	)%		45.63	%		(9.94	)%		3.14	%		(.92	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$638,229			$678,946			$470,635			$608,485			$641,891
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.08	%		1.08	%		1.10	%		1.09	%		1.08	%
Expenses, before waivers/reimbursements(e)(f)‡		1.10	%		1.10	%		1.11	%		1.10	%		1.08	%
Net investment income(b)		1.50	%		1.33	%		1.26	%		1.62	%		1.71	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.88			$  7.70			$  8.71			$  8.58			$  8.96
Income From Investment Operations
Net investment income(a)(b)		.18			.14			.12			.16			.18
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.88	)		3.33			(.95	)		.13			(.24	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.70	)		3.47			(.83	)		.29			(.06	)
Less: Dividends
Dividends from net investment income		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  9.20			$  10.88			$  7.70			$  8.71			$  8.58
Total Return
Total investment return based on net asset value(d)*		(6.63	)%		46.10	%		(9.70	)%		3.46	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$9			$11			$8			$9			$9
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.81	%		.83	%		.82	%		.81	%		.82	%
Expenses, before waivers/reimbursements(e)(f)‡		.83	%		.84	%		.84	%		.81	%		.82	%
Net investment income(b)		1.78	%		1.45	%		1.53	%		1.90	%		1.95	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.70			$  7.58			$  8.58			$  8.46			$  8.83
Income From Investment Operations
Net investment income(a)(b)		.17			.14			.12			.16			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.85	)		3.27			(.94	)		.12			(.22	)
Contributions from Affiliates		.00	(c)		– 0	–		.00	(c)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.68	)		3.41			(.82	)		.28			(.05	)
Less: Dividends
Dividends from net investment income		(.98	)		(.29	)		(.18	)		(.16	)		(.32	)
Net asset value, end of period		$  9.04			$  10.70			$  7.58			$  8.58			$  8.46
Total Return
Total investment return based on net asset value(d)*		(6.64	)%		46.17	%		(9.75	)%		3.37	%		(.68	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$324,086			$601,545			$415,967			$487,326			$1,013,733
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.83	%		.84	%		.85	%		.84	%		.83	%
Expenses, before waivers/reimbursements(e)(f)‡		.85	%		.85	%		.86	%		.85	%		.84	%
Net investment income(b)		1.76	%		1.44	%		1.51	%		1.89	%		1.86	%
Portfolio turnover rate		79	%		65	%		88	%		100	%		141	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.03	%		.03	%		.04	%		.02	%		.03	%

See footnote summary on page 87.

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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, 2022, October 31, 2021, October 31, 2020, October 31, 2019 and October 31, 2018, such waiver amounted to .02%, ..01%, .01%, .01% and .01%, respectively.

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

	Year Ended October 31,
	2022	2021			2020	2019	2018
Class A
Net of waivers/reimbursements	1.16%		1.29	%	1.29%	1.29%	1.26%
Before waivers/reimbursements	1.18%		1.39	%	1.40%	1.32%	1.27%
Class C
Net of waivers/reimbursements	1.94%		2.04	%	2.04%	2.04%	2.01%
Before waivers/reimbursements	1.96%		2.19	%	2.15%	2.07%	2.02%
Advisor Class
Net of waivers/reimbursements	.91%		1.04	%	1.04%	1.04%	1.01%
Before waivers/reimbursements	.93%		1.17	%	1.14%	1.07%	1.02%
Class R
Net of waivers/reimbursements	1.53%		1.54	%	1.54%	1.54%	1.55%
Before waivers/reimbursements	1.59%		1.57	%	1.60%	1.57%	1.58%
Class K
Net of waivers/reimbursements	1.26%		1.26	%	1.28%	1.27%	1.26%
Before waivers/reimbursements	1.28%		1.28	%	1.29%	1.28%	1.27%
Class I
Net of waivers/reimbursements	.86%		.84	%	.86%	.84%	.83%
Before waivers/reimbursements	.88%		.85	%	.87%	.85%	.84%
Class 1
Net of waivers/reimbursements	1.08%		1.08	%	1.10%	1.09%	1.08%
Before waivers/reimbursements	1.10%		1.10	%	1.11%	1.09%	1.08%
Class 2
Net of waivers/reimbursements	.81%		.83	%	.82%	.81%	.82%
Before waivers/reimbursements	.82%		.84	%	.84%	.81%	.82%
Class Z
Net of waivers/reimbursements	.83%		.84	%	.85%	.83%	.83%
Before waivers/reimbursements	.85%		.85	%	.86%	.84%	.84%

(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, 2022, 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, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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 28, 2022

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2022 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, 2022. For individual shareholders, the Fund designates 96.13% of dividends paid as qualified dividend income. For corporate shareholders, 2.57% 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 2023.

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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⁾

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 Vice President 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.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    91

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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2005)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2005)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2008)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Vinod Chathlani 40	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Daniel J. Loewy 48	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Chief Investment Officer and Head of Multi-Asset Solutions and Chief Investment Officer of Dynamic Asset Allocation.
Leon Zhu 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc, (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 in-person on August 2-3, 2022 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Vice President 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 2020 and 2021 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, 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

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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 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, 2022 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 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.

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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 Vice President and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements.

The 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.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year. The information provided included a pro forma expense ratio to reflect changes to the Fund’s transfer agent out-of-pocket expense allocation effective November 1, 2021. The Adviser had agreed to cap the Fund’s expenses, but the directors noted that the Fund’s pro forma expense ratio was currently below the level of the Adviser’s cap. 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 pro forma expense ratio was acceptable.

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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    ^|    105

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

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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NOTES

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

NOTES

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AB ALL MARKET REAL RETURN PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

AMRR-0151-1022        

OCT    ^10.31.22

ANNUAL REPORT

AB BOND INFLATION STRATEGY

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 6, 2022

This report provides management’s discussion of fund performance for the AB Bond Inflation Strategy for the annual reporting period ended October 31, 2022.

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, 2022 (unaudited)

	6 Months		12 Months
AB BOND INFLATION STRATEGY
Class 1 Shares1		-6.47%		-8.75%
Class 2 Shares1		-6.43%		-8.77%
Class A Shares		-6.53%		-8.93%
Class C Shares		-6.84%		-9.58%
Advisor Class Shares2		-6.42%		-8.72%
Class R Shares2		-6.58%		-9.15%
Class K Shares2		-6.47%		-8.94%
Class I Shares2		-6.40%		-8.67%
Class Z Shares2		-6.32%		-8.65%
Bloomberg 1-10 Year TIPS Index		-5.32%		-7.18%

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, 2022.

During both periods, all share classes underperformed the benchmark, before sales charges. In the 12-month period, the Fund’s yield-curve positioning was the largest detractor, relative to the benchmark, as losses on the five- and 10-year parts of the curve were greater than gains from positioning on the two- and 20-year parts of the curve. Sector allocation also detracted, as allocations to investment-grade corporate bonds, agency risk-sharing securities, collateralized mortgage obligations and US agency mortgages lost more than gains within Consumer Price Index (“CPI”)

2    ^|    AB BOND INFLATION  STRATEGY abfunds.com

swaps and investment-grade credit default swaps. Positioning in US Treasury inflation-protected securities (“TIPS”) was a minor detractor from performance. Currency decisions added to performance, due to exposure to the Swedish krona, Australian dollar, offshore Chinese renminbi and Canadian dollar that gained more than an exposure to the Russian ruble.

During the six-month period, sector allocation was the largest detractor, mostly from allocations to investment-grade corporate bonds, agency risk-sharing securities and collateralized mortgage obligations. Yield-curve positioning on the five- to 10-year and six-month parts of the curve also detracted, and was partially offset by gains on the two- and 20-year parts of the curve. Overall positioning in TIPS contributed to performance. A currency position in the offshore Chinese renminbi was a minor contributor to performance.

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. 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.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

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 nationally recognized statistical rating organization (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) and regional and global conflicts, that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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 Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

6    ^|    AB BOND INFLATION  STRATEGY abfunds.com

DISCLOSURES AND RISKS (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. 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: 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.

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 2.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Effective on March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25%. 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.

8    ^|    AB BOND INFLATION  STRATEGY abfunds.com

HISTORICAL PERFORMANCE

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

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB Bond Inflation Strategy Class A shares (from 10/31/2012 to 10/31/2022) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 2.25% 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, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						2.13%
1 Year		-8.75%		-8.75%
5 Years		2.42%		2.42%
10 Years		1.49%		1.49%
CLASS 2 SHARES2						2.23%
1 Year		-8.77%		-8.77%
5 Years		2.50%		2.50%
10 Years		1.58%		1.58%
CLASS A SHARES						1.73%
1 Year		-8.93%		-11.01%
5 Years		2.25%		1.79%
10 Years		1.32%		1.09%
CLASS C SHARES						1.02%
1 Year		-9.58%		-10.44%
5 Years		1.51%		1.51%
10 Years3		0.58%		0.58%
ADVISOR CLASS SHARES4						2.02%
1 Year		-8.72%		-8.72%
5 Years		2.52%		2.52%
10 Years		1.58%		1.58%
CLASS R SHARES4						1.50%
1 Year		-9.15%		-9.15%
5 Years		2.02%		2.02%
10 Years		1.09%		1.09%
CLASS K SHARES4						1.80%
1 Year		-8.94%		-8.94%
5 Years		2.24%		2.24%
10 Years		1.33%		1.33%
CLASS I SHARES4						2.13%
1 Year		-8.67%		-8.67%
5 Years		2.52%		2.52%
10 Years		1.60%		1.60%
CLASS Z SHARES4						2.22%
1 Year		-8.65%		-8.65%
5 Years		2.52%		2.52%
Since Inception5		2.49%		2.49%

(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 0.75%, 0.65%, 1.00%, 1.75%, 0.75%, 1.40%, 1.09%, 0.74% and 0.66% 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 limited the Fund’s total annual 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) 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, 2023, 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, 2022.

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, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-9.20%
5 Years		2.25%
10 Years		1.44%
CLASS 2 SHARES1
1 Year		-9.03%
5 Years		2.37%
10 Years		1.55%
CLASS A SHARES
1 Year		-11.38%
5 Years		1.65%
10 Years		1.05%
CLASS C SHARES
1 Year		-10.84%
5 Years		1.34%
10 Years2		0.54%
ADVISOR CLASS SHARES3
1 Year		-9.08%
5 Years		2.35%
10 Years		1.54%
CLASS R SHARES3
1 Year		-9.59%
5 Years		1.86%
10 Years		1.05%
CLASS K SHARES3
1 Year		-9.34%
5 Years		2.09%
10 Years		1.28%
CLASS I SHARES3
1 Year		-9.11%
5 Years		2.37%
10 Years		1.55%
CLASS Z SHARES3
1 Year		-9.09%
5 Years		2.37%
Since Inception4		2.39%

(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, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	934.70	$	4.44		0.91	%
Hypothetical**	$	1,000	$	1,020.62	$	4.63		0.91	%
Class C
Actual	$	1,000	$	931.60	$	8.08		1.66	%
Hypothetical**	$	1,000	$	1,016.84	$	8.44		1.66	%
Advisor Class
Actual	$	1,000	$	935.80	$	3.27		0.67	%
Hypothetical**	$	1,000	$	1,021.83	$	3.41		0.67	%
Class R
Actual	$	1,000	$	934.20	$	5.66		1.16	%
Hypothetical**	$	1,000	$	1,019.36	$	5.90		1.16	%
Class K
Actual	$	1,000	$	935.30	$	4.44		0.91	%
Hypothetical**	$	1,000	$	1,020.62	$	4.63		0.91	%
Class I
Actual	$	1,000	$	936.00	$	3.27		0.67	%
Hypothetical**	$	1,000	$	1,021.83	$	3.41		0.67	%
Class 1
Actual	$	1,000	$	935.30	$	3.71		0.76	%
Hypothetical**	$	1,000	$	1,021.37	$	3.87		0.76	%
Class 2
Actual	$	1,000	$	935.70	$	3.22		0.66	%
Hypothetical**	$	1,000	$	1,021.88	$	3.36		0.66	%
Class Z
Actual	$	1,000	$	936.80	$	3.27		0.67	%
Hypothetical**	$	1,000	$	1,021.83	$	3.41		0.67	%

* 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, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,058.5

Total Investments ($mil): $1,118.0

INFLATION PROTECTION BREAKDOWN¹

U.S. Inflation-Protected Exposure	74.8	%
Non-Inflation Exposure	25.2
	100.0	%

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

Corporates–Investment Grade	9.9%
Asset-Backed Securities	4.8%
Collateralized Mortgage Obligations	4.8%
Collateralized Loan Obligations	2.5%
Mortgage Pass-Throughs	2.3%
Corporates–Non-Investment Grade	1.7%
Commercial Mortgage-Backed Securities	1.4%
Emerging Markets–Corporate Bonds	0.3%
Local Governments–US Municipal Bonds	0.2%
Quasi-Sovereigns	0.2%
Common Stocks	0.1%
Emerging Markets–Sovereigns	0.1%

SECTOR BREAKDOWN OF TOTAL PORTFOLIO INVESTMENTS, EXCLUDING DERIVATIVES²

Inflation-Linked Securities	69.2%
Corporates–Investment Grade	9.4%
Asset-Backed Securities	4.6%
Collateralized Mortgage Obligations	4.5%
Collateralized Loan Obligations	2.3%
Mortgage Pass-Throughs	2.2%
Corporates–Non-Investment Grade	1.6%
Commercial Mortgage-Backed Securities	1.5%
Emerging Markets–Corporate Bonds	0.3%
Local Governments–US Municipal Bonds	0.2%
Quasi-Sovereigns	0.1%
Common Stocks	0.1%
Emerging Markets–Sovereigns	0.1%
Short-Term Investments	3.9%

1 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). 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, 2022

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 73.1%
United States – 73.1%
U.S. Treasury Inflation Index 0.125%, 07/15/2024(TIPS)	U.S.$		42,184	$	41,076,943
0.125%, 10/15/2024 (TIPS)(a)			10,555		10,233,138
0.125%, 10/15/2025 (TIPS)			5,938		5,673,236
0.125%, 07/15/2026 (TIPS)(b)			100,227		94,636,379
0.125%, 07/15/2030 (TIPS)			6,649		5,925,960
0.125%, 07/15/2031 (TIPS)(b)			228,710		201,264,656
0.25%, 01/15/2025 (TIPS)(a)			113,872		109,903,890
0.375%, 01/15/2027 (TIPS)			85,893		81,101,433
0.50%, 01/15/2028 (TIPS)			4,538		4,265,089
0.625%, 01/15/2026 (TIPS)(b)			97,607		94,038,438
0.75%, 07/15/2028 (TIPS)			60,525		57,536,892
0.875%, 01/15/2029 (TIPS)			29,212		27,788,233
1.75%, 01/15/2028 (TIPS)			12,967		12,981,618
2.50%, 01/15/2029 (TIPS)			25,798		26,946,457
Total Inflation-Linked Securities (cost $873,016,160)					773,372,362
CORPORATES - INVESTMENT GRADE – 9.9%
Industrial – 5.0%
Basic – 0.3%
Anglo American Capital PLC 3.875%, 03/16/2029(c)			373		316,187
Braskem Netherlands Finance BV 4.50%, 01/31/2030(c)			200		161,000
Celanese US Holdings LLC 5.90%, 07/05/2024			2,365		2,324,133
Freeport Indonesia PT 4.763%, 04/14/2027(c)			415		371,944
Inversiones CMPC SA/Cayman Islands Branch 4.375%, 05/15/2023(c)			270		267,320
Suzano Austria GmbH 3.75%, 01/15/2031			222		176,629
					3,617,213
Capital Goods – 0.4%
CNH Industrial Capital LLC 3.95%, 05/23/2025			1,889		1,810,078
Flowserve Corp. 2.80%, 01/15/2032			545		390,743
Parker-Hannifin Corp. 4.50%, 09/15/2029			1,430		1,336,235

abfunds.com AB BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025	U.S.$		180	$	167,184
					3,704,240
Communications - Media – 0.4%
Discovery Communications LLC 4.65%, 05/15/2050			58		37,995
5.20%, 09/20/2047			188		133,634
5.30%, 05/15/2049			83		59,840
Prosus NV 3.257%, 01/19/2027(c)			593		489,225
3.68%, 01/21/2030(c)			428		313,457
4.027%, 08/03/2050(c)			487		260,636
Tencent Holdings Ltd. 3.24%, 06/03/2050(c)			655		340,313
Time Warner Cable LLC 4.50%, 09/15/2042			235		161,175
Warnermedia Holdings, Inc. 4.279%, 03/15/2032(c)			1,595		1,289,031
Weibo Corp. 3.375%, 07/08/2030			2,114		1,453,771
					4,539,077
Communications - Telecommunications – 0.0%
T-Mobile USA, Inc. 2.625%, 02/15/2029			203		168,462
3.375%, 04/15/2029			119		102,998
					271,460
Consumer Cyclical - Automotive – 0.3%
General Motors Co. 6.125%, 10/01/2025			194		193,242
6.80%, 10/01/2027			272		275,710
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(c)			1,942		1,657,167
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(c)			1,378		1,161,888
					3,288,007
Consumer Cyclical - Other – 0.2%
Las Vegas Sands Corp. 3.90%, 08/08/2029			1,419		1,144,778
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			92		92,903
MDC Holdings, Inc. 6.00%, 01/15/2043			731		556,349
					1,794,030

18    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.2%
Advance Auto Parts, Inc. 3.50%, 03/15/2032	U.S.$		141	$	111,552
3.90%, 04/15/2030			1,525		1,292,026
Ross Stores, Inc. 4.70%, 04/15/2027			1,083		1,036,431
					2,440,009
Consumer Non-Cyclical – 0.6%
Altria Group, Inc. 3.40%, 05/06/2030			950		771,875
4.80%, 02/14/2029			226		208,053
BAT Capital Corp. 2.259%, 03/25/2028			1,727		1,366,644
4.70%, 04/02/2027			605		563,194
4.906%, 04/02/2030			593		518,359
Cargill, Inc. 5.125%, 10/11/2032(c)			632		616,725
Cigna Corp. 4.375%, 10/15/2028			501		470,880
CVS Health Corp. 4.30%, 03/25/2028			49		46,005
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			1,190		890,013
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/2023			384		380,202
					5,831,950
Energy – 0.7%
BP Capital Markets America, Inc. 2.939%, 06/04/2051			1,962		1,211,712
Continental Resources, Inc./OK 2.875%, 04/01/2032(c)			1,496		1,093,980
5.75%, 01/15/2031(c)			1,113		1,012,708
Enbridge Energy Partners LP 7.375%, 10/15/2045			1,351		1,429,318
Energy Transfer LP 6.25%, 04/15/2049			843		735,829
EQT Corp. 5.70%, 04/01/2028			345		335,768
Marathon Petroleum Corp. 5.125%, 12/15/2026			289		284,110
6.50%, 03/01/2041			282		275,057
Oleoducto Central SA 4.00%, 07/14/2027(c)			453		368,572
ONEOK Partners LP 6.125%, 02/01/2041			105		92,785

abfunds.com AB BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ONEOK, Inc. 6.35%, 01/15/2031	U.S.$		166	$	163,958
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(c)			306		195,687
					7,199,484
Other Industrial – 0.1%
Alfa SAB de CV 5.25%, 03/25/2024(c)			600		593,925
Services – 0.2%
Expedia Group, Inc. 4.625%, 08/01/2027			486		455,056
6.25%, 05/01/2025(c)			34		33,980
Global Payments, Inc. 2.90%, 11/15/2031			432		330,355
5.40%, 08/15/2032			971		897,495
S&P Global, Inc. 4.25%, 05/01/2029(c)			295		275,291
4.75%, 08/01/2028(c)			59		57,199
					2,049,376
Technology – 1.5%
Broadcom, Inc. 3.137%, 11/15/2035(c)			188		130,399
3.187%, 11/15/2036(c)			557		380,047
4.00%, 04/15/2029(c)			188		164,989
4.15%, 11/15/2030			260		223,678
4.15%, 04/15/2032(c)			673		564,593
4.926%, 05/15/2037(c)			689		567,874
Entegris Escrow Corp. 4.75%, 04/15/2029(c)			1,896		1,693,033
Honeywell International, Inc. 4.125%, 11/02/2034	EUR		1,651		1,610,194
HP, Inc. 5.50%, 01/15/2033	U.S.$		1,844		1,641,676
Infor, Inc. 1.75%, 07/15/2025(c)			450		403,488
Intel Corp. 5.05%, 08/05/2062			1,204		981,284
International Business Machines Corp. 4.90%, 07/27/2052			1,186		1,000,154
Kyndryl Holdings, Inc. 2.05%, 10/15/2026			1,428		1,119,666
Micron Technology, Inc. 6.75%, 11/01/2029			1,463		1,463,687
NXP BV/NXP Funding LLC 5.55%, 12/01/2028			711		681,835

20    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Oracle Corp. 5.375%, 07/15/2040	U.S.$		376	$	313,937
SK Hynix, Inc. 2.375%, 01/19/2031(c)			382		268,904
TSMC Arizona Corp. 3.875%, 04/22/2027			1,009		943,627
VeriSign, Inc. 2.70%, 06/15/2031			250		194,187
Western Digital Corp. 3.10%, 02/01/2032			1,677		1,163,050
Workday, Inc. 3.70%, 04/01/2029			182		162,195
					15,672,497
Transportation - Airlines – 0.1%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(c)			528		514,714
4.75%, 10/20/2028(c)			614		570,830
					1,085,544
Transportation - Railroads – 0.0%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(c)			223		182,739
5.875%, 07/05/2034(c)			284		263,283
					446,022
Transportation - Services – 0.0%
Ashtead Capital, Inc. 5.50%, 08/11/2032(c)			305		275,708
ENA Master Trust 4.00%, 05/19/2048(c)			303		205,472
					481,180
					53,014,014
Financial Institutions – 4.7%
Banking – 3.6%
AIB Group PLC 7.583%, 10/14/2026(c)			2,155		2,142,652
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(c)			958		839,974
Banco Santander SA 4.175%, 03/24/2028			600		528,438
Bank of America Corp. 4.376%, 04/27/2028			2,480		2,306,598
Bank of Ireland Group PLC 6.253%, 09/16/2026(c)			456		440,674
Barclays PLC 7.385%, 11/02/2028			1,252		1,245,815

abfunds.com AB BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BNP Paribas SA 2.591%, 01/20/2028(c)	U.S.$		593	$	500,397
4.625%, 02/25/2031(c)(d)			1,227		849,526
7.75%, 08/16/2029(c)(d)			1,097		1,035,853
Citigroup, Inc. 4.075%, 04/23/2029			592		533,321
4.14%, 05/24/2025			2,463		2,392,509
5.95%, 01/30/2023(d)			213		211,473
Series W 4.00%, 12/10/2025(d)			504		424,877
Series Y 4.15%, 11/15/2026(d)			480		376,310
Credit Suisse Group AG 3.091%, 05/14/2032(c)			928		636,794
4.194%, 04/01/2031(c)			614		475,119
6.373%, 07/15/2026(c)			1,025		956,048
Danske Bank A/S 4.298%, 04/01/2028(c)			746		658,173
Deutsche Bank AG/New York NY 2.129%, 11/24/2026			296		249,120
3.961%, 11/26/2025			405		373,074
6.119%, 07/14/2026			846		808,742
Discover Bank 4.682%, 08/09/2028			327		313,904
Federation des Caisses Desjardins du Quebec 4.55%, 08/23/2027(c)			1,174		1,097,678
Fifth Third Bancorp Series L 4.50%, 09/30/2025(d)			334		307,794
Goldman Sachs Group, Inc. (The) Series V 4.125%, 11/10/2026(d)			775		603,694
HSBC Holdings PLC 4.762%, 03/29/2033			373		296,498
5.402%, 08/11/2033			603		523,368
7.336%, 11/03/2026			1,794		1,797,534
JPMorgan Chase & Co. 2.58%, 04/22/2032			1,364		1,049,080
4.565%, 06/14/2030			426		390,863
Mizuho Financial Group, Inc. 5.414%, 09/13/2028			1,151		1,111,682
Morgan Stanley 0.406%, 10/29/2027	EUR		1,030		868,897
4.21%, 04/20/2028	U.S.$		799		739,554
6.296%, 10/18/2028			1,224		1,235,077
Nationwide Building Society 2.972%, 02/16/2028(c)			982		831,852

22    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Santander Holdings USA, Inc. 2.49%, 01/06/2028	U.S.$		497	$	410,606
Societe Generale SA 2.797%, 01/19/2028(c)			1,764		1,461,298
Standard Chartered PLC 3.971%, 03/30/2026(c)			657		604,230
5.925% (LIBOR 3 Month + 1.51%), 01/30/2027(c)(d)(e)			400		294,744
6.00%, 07/26/2025(c)(d)			1,267		1,155,669
Svenska Handelsbanken AB 4.75%, 03/01/2031(c)(d)			1,400		1,082,438
Truist Financial Corp. Series Q 5.10%, 03/01/2030(d)			1,060		931,963
UBS Group AG 4.488%, 05/12/2026(c)			648		614,673
UniCredit SpA 1.982%, 06/03/2027(c)			204		165,860
2.569%, 09/22/2026(c)			1,071		919,004
3.127%, 06/03/2032(c)			368		259,937
US Bancorp Series J 5.30%, 04/15/2027(d)			427		357,297
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(d)			418		354,832
					37,765,513
Brokerage – 0.2%
Charles Schwab Corp. (The) 2.90%, 03/03/2032			322		261,509
Series G 5.375%, 06/01/2025(d)			402		392,634
Series I 4.00%, 06/01/2026(d)			1,366		1,114,164
					1,768,307
Finance – 0.6%
Air Lease Corp. 2.875%, 01/15/2026			111		98,702
3.625%, 04/01/2027			51		44,941
Aircastle Ltd. 2.85%, 01/26/2028(c)			1,329		999,076
4.125%, 05/01/2024			232		221,193
4.25%, 06/15/2026			83		73,211
5.25%, 08/11/2025(c)			585		547,396
Aviation Capital Group LLC 1.95%, 01/30/2026(c)			751		625,080
1.95%, 09/20/2026(c)			346		278,374

abfunds.com AB BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
3.50%, 11/01/2027(c)	U.S.$		211	$	171,902
4.125%, 08/01/2025(c)			7		6,351
4.375%, 01/30/2024(c)			194		187,072
4.875%, 10/01/2025(c)			246		225,661
5.50%, 12/15/2024(c)			550		528,182
CDBL Funding 1 3.50%, 10/24/2027(c)			940		846,921
Synchrony Financial 2.875%, 10/28/2031			791		559,269
3.95%, 12/01/2027			429		369,253
4.50%, 07/23/2025			244		231,144
4.875%, 06/13/2025			414		397,746
					6,411,474
Insurance – 0.1%
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(c)			183		139,234
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049(c)			1,000		871,510
Voya Financial, Inc. 5.65%, 05/15/2053			335		323,851
					1,334,595
REITs – 0.2%
American Tower Corp. 3.65%, 03/15/2027			635		574,662
GLP Capital LP/GLP Financing II, Inc. 3.25%, 01/15/2032			1,373		1,017,599
Vornado Realty LP 3.40%, 06/01/2031			718		530,186
					2,122,447
					49,402,336
Utility – 0.2%
Electric – 0.2%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(c)			358		281,433
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(c)			661		458,693
Duke Energy Carolinas NC Storm Funding LLC Series A-2 2.617%, 07/01/2041			1,183		855,569
Engie Energia Chile SA 3.40%, 01/28/2030(c)			751		548,230
					2,143,925
Total Corporates - Investment Grade (cost $122,557,459)					104,560,275

24    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 4.8%
Autos - Fixed Rate – 2.9%
ACM Auto Trust Series 2022-1A, Class A 3.23%, 04/20/2029(c)	U.S.$		1,389	$	1,383,072
American Credit Acceptance Receivables Trust Series 2022-3, Class A 4.12%, 02/13/2026(c)			1,294		1,282,958
Avis Budget Rental Car Funding AESOP LLC Series 2017-2A, Class D 4.56%, 03/20/2024(c)			2,039		2,028,101
Series 2018-1A, Class A 3.70%, 09/20/2024(c)			1,760		1,733,453
Series 2018-2A, Class A 4.00%, 03/20/2025(c)			1,425		1,395,028
Carvana Auto Receivables Trust Series 2021-N3, Class C 1.02%, 06/12/2028			777		750,404
Series 2021-N4, Class D 2.30%, 09/11/2028			916		822,321
Series 2021-P4, Class D 2.61%, 09/11/2028			1,206		975,643
CPS Auto Receivables Trust Series 2021-C, Class D 1.69%, 06/15/2027(c)			1,080		978,584
Series 2022-A, Class C 2.17%, 04/16/2029(c)			1,765		1,631,648
FHF Trust Series 2021-2A, Class A 0.83%, 12/15/2026(c)			478		451,776
Ford Credit Auto Owner Trust Series 2021-1, Class D 2.31%, 10/17/2033(c)			1,000		857,867
Hertz Vehicle Financing III LLC Series 2022-1A, Class C 2.63%, 06/25/2026(c)			1,660		1,453,353
LAD Auto Receivables Trust Series 2021-1A, Class A 1.30%, 08/17/2026(c)			910		874,666
Series 2022-1A, Class A 5.21%, 06/15/2027(c)			2,063		2,025,340
Octane Receivables Trust Series 2021-2A, Class B 2.02%, 09/20/2028(c)			1,508		1,343,996
Prestige Auto Receivables Trust Series 2022-1A, Class A2 5.90%, 07/15/2025(c)			1,459		1,456,754

abfunds.com AB BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Research-Driven Pagaya Motor Asset Trust VII Series 2022-3A, Class A 5.38%, 11/25/2030(c)	U.S.$		2,298	$	2,232,310
Santander Bank Auto Credit-Linked Notes Series 2022-A, Class B 5.281%, 05/15/2032(c)			2,240		2,163,044
Series 2022-B, Class B 5.721%, 08/16/2032(c)			2,286		2,274,283
Santander Bank NA – SBCLN Series 2021-1A, Class B 1.833%, 12/15/2031(c)			793		759,991
United Auto Credit Securitization Trust Series 2022-2, Class A 4.39%, 04/10/2025(c)			1,948		1,933,881
					30,808,473
Other ABS - Fixed Rate – 1.5%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(c)			1,457		1,183,909
Affirm Asset Securitization Trust Series 2021-Z1, Class A 1.07%, 08/15/2025(c)			270		261,979
Series 2021-Z2, Class A 1.17%, 11/16/2026(c)			439		422,194
Series 2022-X1, Class A 1.75%, 02/15/2027(c)			1,372		1,331,032
Amur Equipment Finance Receivables XI LLC Series 2022-2A, Class A2 5.30%, 06/21/2028(c)			936		923,400
Atalaya Equipment Leasing Trust Series 2021-1A, Class B 2.08%, 02/15/2027(c)			482		448,385
BHG Securitization Trust Series 2022-A, Class D 3.56%, 02/20/2035(c)			1,350		1,079,151
Cajun Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(c)			459		381,477
College Ave Student Loans LLC Series 2021-C, Class B 2.72%, 07/26/2055(c)			603		509,121
Conn’s Receivables Funding LLC Series 2021-A, Class A 1.05%, 05/15/2026(c)			342		340,841

26    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Dext ABS LLC Series 2021-1, Class B 1.76%, 02/15/2028(c)	U.S.$		197	$	178,377
Diamond Issuer Series 2021-1A, Class A 2.305%, 11/20/2051(c)			2,152		1,804,246
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(c)			769		616,948
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(c)			502		421,497
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(c)			498		448,817
Series 2020-1A, Class A2 3.981%, 12/20/2050(c)			329		275,667
MVW LLC Series 2021-2A, Class B 1.83%, 05/20/2039(c)			954		846,439
Neighborly Issuer Series 2022-1A, Class A2 3.695%, 01/30/2052(c)			1,653		1,317,585
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(c)			518		423,328
Nelnet Student Loan Trust Series 2021-CA, Class B 2.53%, 04/20/2062(c)			758		577,223
Series 2021-DA, Class B 2.90%, 04/20/2062(c)			793		615,437
NMEF Funding LLC Series 2022-B, Class A2 6.07%, 06/15/2029(c)			968		964,807
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(c)			1		1,240
Series 2021-3, Class B 1.66%, 07/20/2031(c)			1,090		1,008,932
					16,382,032
Credit Cards - Fixed Rate – 0.4%
Brex Commercial Charge Card Master Trust Series 2021-1, Class A 2.09%, 07/15/2024(c)			729		716,601
Series 2022-1, Class A 4.63%, 07/15/2025(c)			2,894		2,787,659

abfunds.com AB BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Mission Lane Credit Card Master Trust Series 2021-A, Class B 2.24%, 09/15/2026(c)	U.S.$		352	$	337,902
					3,842,162
Total Asset-Backed Securities (cost $55,194,381)					51,032,667
COLLATERALIZED MORTGAGE OBLIGATIONS – 4.8%
Risk Share Floating Rate – 4.4%
Bellemeade Re Ltd. Series 2019-1A, Class M1B 5.336% (LIBOR 1 Month + 1.75%), 03/25/2029(c)(e)			108		107,633
Series 2019-3A, Class M1B 5.186% (LIBOR 1 Month + 1.60%), 07/25/2029(c)(e)			138		137,406
Series 2019-3A, Class M1C 5.536% (LIBOR 1 Month + 1.95%), 07/25/2029(c)(e)			480		474,362
Series 2020-3A, Class M1B 6.436% (LIBOR 1 Month + 2.85%), 10/25/2030(c)(e)			27		27,430
Series 2021-1A, Class M1C 5.947% (SOFR + 2.95%), 03/25/2031(c)(e)			728		704,352
Series 2021-2A, Class M1B 4.497% (SOFR + 1.50%), 06/25/2031(c)(e)			1,425		1,378,478
Series 2021-3A, Class A2 3.997% (SOFR + 1.00%), 09/25/2031(c)(e)			1,699		1,600,586
Series 2022-1, Class M1B 5.147% (SOFR + 2.15%), 01/26/2032(c)(e)			1,255		1,204,889
Series 2022-2, Class M1A 7.025% (SOFR + 4.00%), 09/27/2032(c)(e)			2,594		2,594,119
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 5.986% (LIBOR 1 Month + 2.40%), 04/25/2031(c)(e)			52		52,038
Series 2019-R02, Class 1M2 5.886% (LIBOR 1 Month + 2.30%), 08/25/2031(c)(e)			22		21,867

28    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-R03, Class 1M2 5.736% (LIBOR 1 Month + 2.15%), 09/25/2031(c)(e)	U.S.$		12	$	12,404
Series 2019-R06, Class 2M2 5.686% (LIBOR 1 Month + 2.10%), 09/25/2039(c)(e)			13		13,397
Series 2019-R07, Class 1M2 5.686% (LIBOR 1 Month + 2.10%), 10/25/2039(c)(e)			96		95,112
Series 2020-R01, Class 1M2 5.636% (LIBOR 1 Month + 2.05%), 01/25/2040(c)(e)			388		381,613
Series 2020-R02, Class 2M2 5.586% (LIBOR 1 Month + 2.00%), 01/25/2040(c)(e)			202		197,885
Series 2021-R01, Class 1M2 4.547% (SOFR + 1.55%), 10/25/2041(c)(e)			1,447		1,353,768
Series 2021-R03, Class 1M2 4.647% (SOFR + 1.65%), 12/25/2041(c)(e)			864		786,267
Series 2022-R01, Class 1M2 4.897% (SOFR + 1.90%), 12/25/2041(c)(e)			2,899		2,631,555
Series 2022-R02, Class 2M1 4.197% (SOFR + 1.20%), 01/25/2042(c)(e)			1,915		1,860,234
Series 2022-R03, Class 1M2 6.497% (SOFR + 3.50%), 03/25/2042(c)(e)			2,283		2,171,537
Series 2022-R04, Class 1M2 6.097% (SOFR + 3.10%), 03/25/2042(c)(e)			573		536,658
Eagle Re Ltd. Series 2021-2, Class M1B 5.047% (SOFR + 2.05%), 04/25/2034(c)(e)			675		656,730
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2022-DNA4, Class M1B 6.347% (SOFR + 3.35%), 05/25/2042(c)(e)			2,051		1,933,399
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 8.386% (LIBOR 1 Month + 4.80%), 05/25/2028(e)			100		102,004

abfunds.com AB BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-DNA4, Class M2 5.536% (LIBOR 1 Month + 1.95%), 10/25/2049(c)(e)	U.S.$		75	$	74,467
Series 2020-DNA1, Class M2 5.286% (LIBOR 1 Month + 1.70%), 01/25/2050(c)(e)			191		187,640
Series 2020-DNA5, Class M2 5.797% (SOFR + 2.80%), 10/25/2050(c)(e)			402		401,508
Series 2021-DNA5, Class M2 4.647% (SOFR + 1.65%), 01/25/2034(c)(e)			498		484,930
Series 2021-DNA6, Class M2 4.497% (SOFR + 1.50%), 10/25/2041(c)(e)			2,561		2,350,743
Series 2021-DNA7, Class M2 4.797% (SOFR + 1.80%), 11/25/2041(c)(e)			2,635		2,416,421
Series 2021-HQA3, Class M1 3.847% (SOFR + 0.85%), 09/25/2041(c)(e)			1,119		1,057,844
Series 2021-HQA4, Class M2 5.347% (SOFR + 2.35%), 12/25/2041(c)(e)			1,765		1,484,282
Series 2022-DNA1, Class M1B 4.847% (SOFR + 1.85%), 01/25/2042(c)(e)			1,542		1,384,119
Series 2022-DNA2, Class M1B 5.397% (SOFR + 2.40%), 02/25/2042(c)(e)			2,468		2,270,452
Series 2022-DNA3, Class M1B 5.897% (SOFR + 2.90%), 04/25/2042(c)(e)			1,069		991,083
Series 2022-DNA5, Class M1B 7.497% (SOFR + 4.50%), 06/25/2042(c)(e)			3,681		3,666,835
Series 2022-DNA6, Class M1A 5.147% (SOFR + 2.15%), 09/25/2042(c)(e)			1,165		1,156,812
Series 2022-DNA7, Class M1A 5.497% (SOFR + 2.50%), 03/25/2052(c)(e)			3,188		3,158,755
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 8.486% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			117		120,223

30    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C02, Class 1M2 7.586% (LIBOR 1 Month + 4.00%), 05/25/2025(e)	U.S.$		105	$	105,838
Series 2015-C03, Class 1M2 8.586% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			100		101,170
Series 2015-C04, Class 1M2 9.286% (LIBOR 1 Month + 5.70%), 04/25/2028(e)			395		415,847
Series 2021-R02, Class 2M2 4.997% (SOFR + 2.00%), 11/25/2041(c)(e)			1,221		1,081,164
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 6.346% (LIBOR 1 Month + 2.75%), 05/27/2023(c)(e)			519		494,412
Series 2020-1R, Class A 5.946% (LIBOR 1 Month + 2.35%), 02/27/2023(e)(f)			172		161,866
Radnor Re Ltd. Series 2019-1, Class M1B 5.536% (LIBOR 1 Month + 1.95%), 02/25/2029(c)(e)			586		573,492
Series 2019-2, Class M1B 5.336% (LIBOR 1 Month + 1.75%), 06/25/2029(c)(e)			127		126,625
Series 2020-1, Class M1A 4.536% (LIBOR 1 Month + 0.95%), 01/25/2030(c)(e)			148		147,566
Traingle Re Ltd. Series 2021-3, Class M1A 4.897% (SOFR + 1.90%), 02/25/2034(c)(e)			987		981,630
					46,431,447
Agency Floating Rate – 0.2%
Federal Home Loan Mortgage Corp. REMICs Series 3955, Class SD 3.188% (6.60% – LIBOR 1 Month), 11/15/2041(e)(g)			1,925		157,777
Series 4693, Class SL 2.738% (6.15% – LIBOR 1 Month), 06/15/2047(e)(g)			1,179		115,440
Series 4954, Class SL 2.464% (6.05% – LIBOR 1 Month), 02/25/2050(e)(g)			1,469		138,838

abfunds.com AB BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 4981, Class HS 2.514% (6.10% – LIBOR 1 Month), 06/25/2050(e)(g)	U.S.$		2,932	$	273,888
Federal National Mortgage Association REMICs Series 2011-131, Class ST 2.954% (6.54% – LIBOR 1 Month), 12/25/2041(e)(g)			593		73,313
Series 2014-17, Class SA 2.464% (6.05% – LIBOR 1 Month), 04/25/2044(e)(g)			1,558		155,570
Series 2014-78, Class SE 2.514% (6.10% – LIBOR 1 Month), 12/25/2044(e)(g)			866		76,155
Series 2016-77, Class DS 2.414% (6.00% – LIBOR 1 Month), 10/25/2046(e)(g)			915		81,663
Series 2017-62, Class AS 2.564% (6.15% – LIBOR 1 Month), 08/25/2047(e)(g)			1,004		102,292
Series 2017-81, Class SA 2.614% (6.20% – LIBOR 1 Month), 10/25/2047(e)(g)			1,251		140,684
Series 2017-97, Class LS 2.614% (6.20% – LIBOR 1 Month), 12/25/2047(e)(g)			1,441		144,958
Government National Mortgage Association Series 2017-122, Class SA 2.711% (6.20% – LIBOR 1 Month), 08/20/2047(e) (g)			760		79,462
Series 2017-134, Class MS 2.711% (6.20% – LIBOR 1 Month), 09/20/2047(e)(g)			863		91,265
					1,631,305
Agency Fixed Rate – 0.1%
Federal Home Loan Mortgage Corp. REMICs Series 5015, Class BI 4.00%, 09/25/2050(h)			2,051		391,721
Federal National Mortgage Association REMICs Series 2020-89, Class KI 4.00%, 12/25/2050(h)			4,424		841,028
					1,232,749

32    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Fixed Rate – 0.1%
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035(f)	U.S.$		1,070	$	972,946
Non-Agency Floating Rate – 0.0%
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 5.686% (LIBOR 1 Month + 2.10%), 04/25/2047(c)(e)			143		130,954
Total Collateralized Mortgage Obligations (cost $52,893,858)					50,399,401
COLLATERALIZED LOAN OBLIGATIONS – 2.4%
CLO - Floating Rate – 2.4%
AGL CLO 10 Ltd. Series 2021-10A, Class A 5.209% (LIBOR 3 Month + 1.13%), 04/15/2034(c)(e)			250		239,382
AGL CLO 12 Ltd. Series 2021-12A, Class D 7.093% (LIBOR 3 Month + 2.85%), 07/20/2034(c)(e)			948		793,373
AGL CLO 16 Ltd. Series 2021-16A, Class A 5.373% (LIBOR 3 Month + 1.13%), 01/20/2035(c)(e)			4,408		4,198,078
Series 2021-16A, Class D 7.343% (LIBOR 3 Month + 3.10%), 01/20/2035(c)(e)			650		548,082
Balboa Bay Loan Funding Ltd. Series 2020-1A, Class DR 7.393% (LIBOR 3 Month + 3.15%), 01/20/2032(c)(e)			415		361,585
Series 2021-1A, Class A 5.443% (LIBOR 3 Month + 1.20%), 07/20/2034(c)(e)			1,111		1,065,485
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 7.179% (LIBOR 3 Month + 3.10%), 04/15/2034(c)(e)			1,000		850,847
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 7.143% (LIBOR 3 Month + 2.90%), 07/20/2034(c)(e)			660		552,698

abfunds.com AB BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Crown Point CLO 11 Ltd. Series 2021-11A, Class D 7.679% (LIBOR 3 Month + 3.60%), 01/17/2034(c)(e)	U.S.$		400	$	356,162
Dryden 78 CLO Ltd. Series 2020-78A, Class C 6.029% (LIBOR 3 Month + 1.95%), 04/17/2033(c)(e)			880		810,908
Series 2020-78A, Class D 7.079% (LIBOR 3 Month + 3.00%), 04/17/2033(c)(e)			460		399,729
Dryden 98 CLO Ltd. Series 2022-98A, Class D 7.063% (SOFR + 3.10%), 04/20/2035(c)(e)			500		434,768
Elevation CLO Ltd. Series 2020-11A, Class C 6.279% (LIBOR 3 Month + 2.20%), 04/15/2033(c)(e)			780		695,522
Elmwood CLO IX Ltd. Series 2021-2A, Class D 7.193% (LIBOR 3 Month + 2.95%), 07/20/2034(c)(e)			1,065		913,012
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 7.127% (LIBOR 3 Month + 2.90%), 07/19/2034(c)(e)			1,120		1,000,380
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 5.313% (LIBOR 3 Month + 1.07%), 04/20/2034(c)(e)			1,077		1,027,569
Magnetite XXVI Ltd. Series 2020-26A, Class A1R 5.478% (LIBOR 3 Month + 1.12%), 07/25/2034(c)(e)			2,348		2,255,447
Neuberger Berman Loan Advisers CLO 42 Ltd. Series 2021-42A, Class D 6.879% (LIBOR 3 Month + 2.80%), 07/16/2035(c)(e)			1,295		1,097,655
Neuberger Berman Loan Advisers CLO 43 Ltd. Series 2021-43A, Class A 5.209% (LIBOR 3 Month + 1.13%), 07/17/2035(c)(e)			1,354		1,300,859

34    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Neuberger Berman Loan Advisers CLO Ltd. Series 2021-42A, Class A 5.179% (LIBOR 3 Month + 1.10%), 07/16/2035(c)(e)	U.S.$		903	$	864,545
New Mountain CLO 3 Ltd. Series CLO-3A, Class A 5.423% (LIBOR 3 Month + 1.18%), 10/20/2034(c)(e)			500		477,090
OCP CLO Ltd. Series 2020-18A, Class AR 5.333% (LIBOR 3 Month + 1.09%), 07/20/2032(c)(e)			1,424		1,376,159
Pikes Peak CLO 8 Series 2021-8A, Class A 5.413% (LIBOR 3 Month + 1.17%), 07/20/2034(c)(e)			1,450		1,391,010
Rad CLO 7 Ltd. Series 2020-7A, Class C 6.079% (LIBOR 3 Month + 2.00%), 04/17/2033(c)(e)			400		370,822
Rad CLO 14 Ltd Series 2021-14A, Class A 5.249% (LIBOR 3 Month + 1.17%), 01/15/2035(c)(e)			291		277,556
Regatta XX Funding Ltd. Series 2021-2A, Class D 7.179% (LIBOR 3 Month + 3.10%), 10/15/2034(c)(e)			1,425		1,253,292
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 7.343% (LIBOR 3 Month + 3.10%), 01/20/2035(c)(e)			500		417,955
Sixth Street CLO XVII Ltd. Series 2021-17A, Class A 5.483% (LIBOR 3 Month + 1.24%), 01/20/2034(c)(e)			381		367,085
Voya CLO Ltd. Series 2019-1A, Class DR 6.929% (LIBOR 3 Month + 2.85%), 04/15/2031(c)(e)			340		290,675
Total Collateralized Loan Obligations (cost $28,169,501)					25,987,730

abfunds.com AB BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MORTGAGE PASS-THROUGHS – 2.3%
Agency Fixed Rate 30-Year – 2.3%
Federal National Mortgage Association Series 2022 2.50%, 03/01/2052	U.S.$		3,828	$	3,146,066
3.00%, 02/01/2052			6,700		5,719,351
Uniform Mortgage-Backed Security Series 2022 2.50%, 11/01/2052, TBA			7,341		6,009,874
3.00%, 11/01/2052, TBA			11,228		9,532,166
Total Mortgage Pass-Throughs (cost $26,330,521)					24,407,457
CORPORATES - NON-INVESTMENT GRADE – 1.7%
Industrial – 1.3%
Basic – 0.0%
INEOS Quattro Finance 2 PLC 2.50%, 01/15/2026(c)	EUR		506		417,545
Capital Goods – 0.1%
TK Elevator Midco GmbH 4.375%, 07/15/2027(c)			401		335,347
TransDigm, Inc. 6.25%, 03/15/2026(c)	U.S.$		512		504,883
					840,230
Communications - Media – 0.4%
Altice Financing SA 3.00%, 01/15/2028(c)	EUR		642		484,578
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(c)	U.S.$		104		84,523
4.50%, 06/01/2033(c)			368		280,302
4.75%, 02/01/2032(c)			2,261		1,812,576
DISH DBS Corp. 5.75%, 12/01/2028(c)			1,067		861,165
VZ Vendor Financing II BV 2.875%, 01/15/2029(c)	EUR		561		408,793
					3,931,937
Communications - Telecommunications – 0.1%
Altice France SA/France 3.375%, 01/15/2028(c)			307		232,854
Lorca Telecom Bondco SA 4.00%, 09/18/2027(c)			642		558,436
					791,290

36    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.2%
Adient Global Holdings Ltd. 3.50%, 08/15/2024(c)	EUR		642	$	600,615
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(c)			191		175,852
Ford Motor Co. 6.10%, 08/19/2032	U.S.$		1,172		1,073,833
ZF Finance GmbH 3.75%, 09/21/2028(c)	EUR		600		487,737
					2,338,037
Consumer Cyclical - Entertainment – 0.2%
Carnival Corp. 4.00%, 08/01/2028(c)	U.S.$		1,235		996,485
Royal Caribbean Cruises Ltd. 8.25%, 01/15/2029(c)			1,118		1,114,456
11.50%, 06/01/2025(c)			422		454,329
					2,565,270
Consumer Non-Cyclical – 0.1%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(c)			664		549,373
IQVIA, Inc. 2.25%, 03/15/2029(c)	EUR		550		440,472
Organon & Co./Organon Foreign Debt Co-Issuer BV 2.875%, 04/30/2028(c)			550		458,262
					1,448,107
Services – 0.1%
APCOA Parking Holdings GmbH 4.625%, 01/15/2027(c)			642		511,397
Technology – 0.1%
Playtech PLC 4.25%, 03/07/2026(c)			550		504,278
Transportation - Airlines – 0.0%
Deutsche Lufthansa AG 3.00%, 05/29/2026(c)			400		348,054
					13,696,145
Financial Institutions – 0.3%
Banking – 0.3%
Credit Suisse Group AG 5.25%, 02/11/2027(c)(d)	U.S.$		713		506,230
6.375%, 08/21/2026(c)(d)			320		239,859

abfunds.com AB BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
7.50%, 07/17/2023(c)(d)	U.S.$		694	$	614,981
7.50%, 12/11/2023(c)(d)			257		233,919
Discover Financial Services Series D 6.125%, 06/23/2025(d)			1,667		1,615,490
					3,210,479
Utility – 0.1%
Electric – 0.1%
Vistra Corp. 7.00%, 12/15/2026(c)(d)			751		667,421
Total Corporates - Non-Investment Grade (cost $21,264,856)					17,574,045
COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.6%
Non-Agency Floating Rate CMBS – 1.1%
AREIT Trust Series 2022-CRE6, Class A 4.144% (SOFR + 1.25%), 01/16/2037(c)(e)			3,807		3,635,014
Ashford Hospitality Trust Series 2018-KEYS, Class A 4.413% (LIBOR 1 Month + 1.00%), 06/15/2035(c)(e)			659		627,883
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 4.413% (LIBOR 1 Month + 1.00%), 11/15/2033(c)(e)			1,755		1,597,765
BBCMS Mortgage Trust Series 2020-BID, Class A 5.552% (LIBOR 1 Month + 2.14%), 10/15/2037(c)(e)			1,383		1,354,074
BFLD Trust Series 2021-FPM, Class A 5.013% (LIBOR 1 Month + 1.60%), 06/15/2038(c)(e)			2,276		2,185,674
BX Commercial Mortgage Trust Series 2019-IMC, Class D 5.312% (LIBOR 1 Month + 1.90%), 04/15/2034(c)(e)			185		172,823
Series 2019-IMC, Class E 5.562% (LIBOR 1 Month + 2.15%), 04/15/2034(c)(e)			895		830,707

38    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CLNY Trust Series 2019-IKPR, Class D 5.437% (LIBOR 1 Month + 2.02%), 11/15/2038(c)(e)	U.S.$		1,000	$	912,362
Federal Home Loan Mortgage Corp. Multifamily Structured Credit Risk Series 2021-MN1, Class M1 4.997% (SOFR + 2.00%), 01/25/2051(c)(e)			116		107,800
Natixis Commercial Mortgage Securities Trust Series 2019-MILE, Class A 4.912% (LIBOR 1 Month + 1.50%), 07/15/2036(c)(e)			461		452,759
					11,876,861
Non-Agency Fixed Rate CMBS – 0.5%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(c)			520		438,489
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			915		901,284
Series 2013-GC11, Class D 4.407%, 04/10/2046(c)			191		182,153
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(c)			27		26,489
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.155%, 08/10/2044(c)			19		7,923
Series 2014-GC18, Class D 5.057%, 01/10/2047(c)			157		64,081
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(f)(i)			573		531,342
Series 2021-1, Class A2 2.435%, 08/15/2026(f)(i)			1,421		1,339,427
Series 2021-1, Class AS 2.638%, 08/15/2026(f)(i)			40		36,896
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047			314		291,530
Series 2014-C22, Class XA 0.802%, 09/15/2047(h)			17,774		188,162

abfunds.com AB BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039	U.S.$		78	$	34,104
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C25, Class XA 1.044%, 10/15/2048(h)			9,541		199,566
Wells Fargo Commercial Mortgage Trust Series 2016-LC25, Class C 4.339%, 12/15/2059			330		281,781
Series 2016-NXS6, Class C 4.385%, 11/15/2049			525		459,186
					4,982,413
Total Commercial Mortgage-Backed Securities (cost $17,984,451)					16,859,274
EMERGING MARKETS - CORPORATE BONDS – 0.3%
Industrial – 0.3%
Basic – 0.1%
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(c)			379		316,181
Volcan Cia Minera SAA 4.375%, 02/11/2026(c)			125		104,062
					420,243
Capital Goods – 0.1%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			590		538,117
6.95%, 01/17/2028(c)			384		361,469
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(c)			270		676
					900,262
Communications - Media – 0.0%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(c)			427		330,447
Consumer Cyclical - Other – 0.0%
Wynn Macau Ltd. 5.625%, 08/26/2028(c)			483		284,970
Consumer Non-Cyclical – 0.1%
Natura & Co. Luxembourg Holdings SARL 6.00%, 04/19/2029(c)			592		491,908
Natura Cosmeticos SA 4.125%, 05/03/2028(c)			583		452,116

40    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(f)(i)(j)(k)(l)	U.S.$		655	$	66
					944,090
					2,880,012
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LP 6.125%, 03/01/2026(f)			89		81,910
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(c)(m)			247		5,168
Total Emerging Markets - Corporate Bonds (cost $4,483,507)					2,967,090
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.2%
United States – 0.2%
City of New York NY Series 2021-D 1.923%, 08/01/2031			775		583,082
Port Authority of New York & New Jersey Series 2020-A 1.086%, 07/01/2023			660		643,731
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035			405		372,327
University of California Series 2021-B 3.071%, 05/15/2051			1,465		886,044
Total Local Governments - US Municipal Bonds (cost $3,295,748)					2,485,184
QUASI-SOVEREIGNS – 0.2%
Quasi-Sovereign Bonds – 0.2%
Mexico – 0.2%
Comision Federal de Electricidad 3.348%, 02/09/2031(c)			1,089		800,960
4.688%, 05/15/2029(c)			1,016		856,170
Total Quasi-Sovereigns (cost $2,104,812)					1,657,130

abfunds.com AB BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Shares		U.S. $ Value
COMMON STOCKS – 0.1%
Financials – 0.1%
Insurance – 0.1%
Mt. Logan Re Ltd. (Preference Shares)(i)(j)(l)			1,428	$	1,245,015
Mt. Logan Re Ltd. (Special Investment)(i)(j)(l)			226		189,472
Total Common Stocks (cost $1,427,910)					1,434,487
		Principal Amount (000)
EMERGING MARKETS - SOVEREIGNS – 0.1%
Dominican Republic – 0.1%
Dominican Republic International Bond 4.875%, 09/23/2032(c)	U.S.$		1,213		930,447
Egypt – 0.0%
Egypt Government International Bond 5.875%, 02/16/2031(c)			699		424,992
Total Emerging Markets - Sovereigns (cost $1,889,811)					1,355,439
GOVERNMENTS - SOVEREIGN BONDS – 0.0%
Colombia – 0.0%
Colombia Government International Bond 3.125%, 04/15/2031 (cost $247,274)			248		170,081
		Shares
SHORT-TERM INVESTMENTS – 4.1%
Investment Companies – 4.1%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(n)(o)(p) (cost $43,763,545)			43,763,545		43,763,545
Total Investments – 105.6% (cost $1,254,623,794)					1,118,026,167
Other assets less liabilities – (5.6)%					(59,519,797	)
Net Assets – 100.0%				$	1,058,506,370

42    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		68		December 2022	$	7,886,937	$	(43,076	)
U.S. T-Note 5 Yr (CBT) Futures		906		December 2022		96,573,937		(2,263,327	)
Sold Contracts
10 Yr Japan Bond (OSE) Futures		37		December 2022		37,018,662		(17,038	)
U.S. T-Note 2 Yr (CBT) Futures		163		December 2022		33,314,398		203,244
U.S. Ultra Bond (CBT) Futures		80		December 2022		10,212,500		1,799,885
							$	(320,312	)

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.	EUR	1,281	USD	1,272		12/08/2022	$	2,325
Bank of America, NA	JPY	104,935	USD	740		12/02/2022		32,056
Bank of America, NA	EUR	5,027	USD	4,865		12/08/2022		(116,410	)
Morgan Stanley Capital Services, Inc.	EUR	1,321	USD	1,284		11/09/2022		(22,765	)
							$	(104,794	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 39, 5 Year Index, 12/20/2027*		(5.00	)%		Quarterly		5.19	%		USD	10,100	$	17,764	$	248,790	$	(231,026	)

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	64,600		02/26/2025		1.589%		CPI#	Maturity	$	8,476,342	$	– 0	–	$	8,476,342
USD	61,010		05/13/2027		3.263%		CPI#	Maturity		237,382		– 0	–		237,382
USD	38,550		02/28/2025		1.527%		CPI#	Maturity		5,171,912		– 0	–		5,171,912
USD	29,760		07/08/2027		2.770%		CPI#	Maturity		555,046		– 0	–		555,046
USD	29,760		07/08/2027		2.778%		CPI#	Maturity		544,733		– 0	–		544,733
USD	9,000		07/15/2023		1.902%		CPI#	Maturity		912,717		– 0	–		912,717
USD	3,000		01/15/2024		1.599%		CPI#	Maturity		376,988		– 0	–		376,988
									$	16,275,120	$	– 0	–	$	16,275,120

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

abfunds.com AB BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

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	1,160		06/09/2025		2.488%	3 Month LIBOR	Semi-Annual/ Quarterly	$	56,424	$	– 0	–	$	56,424
USD	2,106		08/04/2025		2.293%	3 Month LIBOR	Semi-Annual/ Quarterly		131,786		– 0	–		131,786
USD	5,400		10/04/2026		1.487%	3 Month LIBOR	Semi-Annual/ Quarterly		576,403		– 0	–		576,403
USD	1,080		11/08/2026		1.657%	3 Month LIBOR	Semi-Annual/ Quarterly		108,345		– 0	–		108,345
USD	1,080		11/09/2026		1.672%	3 Month LIBOR	Semi-Annual/ Quarterly		107,597		– 0	–		107,597
USD	7,030		04/04/2027		2.436%	3 Month LIBOR	Semi-Annual/ Quarterly		550,178		– 0	–		550,178
USD	20,920		06/05/2027		0.558%	3 Month LIBOR	Semi-Annual/ Quarterly		3,340,297		– 0	–		3,340,297
USD	715		07/12/2027		2.355%	3 Month LIBOR	Semi-Annual/ Quarterly		56,423		– 0	–		56,423
USD	5,395		06/04/2029		2.150%	3 Month LIBOR	Semi-Annual/ Quarterly		619,767		– 0	–		619,767
USD	3,170		09/27/2029		1.593%	3 Month LIBOR	Semi-Annual/ Quarterly		500,714		– 0	–		500,714
USD	40,300		05/21/2031		1.617%	3 Month LIBOR	Semi-Annual/ Quarterly		7,240,891		– 0	–		7,240,891
USD	1,490		11/10/2035		2.631%	3 Month LIBOR	Semi-Annual/ Quarterly		217,637		– 0	–		217,637
								$	13,506,462	$	– 0	–	$	13,506,462

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	6	$	(1,427	)	$	(948	)	$	(479	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6		(1,427	)		(758	)		(669	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	9		(2,060	)		(864	)		(1,196	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	19		(4,279	)		(2,630	)		(1,649	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	19		(4,279	)		(2,396	)		(1,883	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	18		(3,963	)		(1,971	)		(1,992	)

44    ^|    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, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	26	$	(5,865	)	$	(3,069	)	$	(2,796	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	30		(6,816	)		(3,684	)		(3,132	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	30		(6,815	)		(3,566	)		(3,249	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	42		(9,510	)		(4,976	)		(4,534	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	42		(9,510	)		(4,490	)		(5,020	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	64		(14,582	)		(7,443	)		(7,139	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	61		(13,789	)		(6,511	)		(7,278	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	85		(19,178	)		(8,681	)		(10,497	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	4		(792	)		(408	)		(384	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	85		(19,336	)		(9,720	)		(9,616	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	97		(22,031	)		(11,273	)		(10,758	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	91		(20,604	)		(6,891	)		(13,713	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	158		(35,819	)		(21,916	)		(13,903	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	97		(21,872	)		(6,237	)		(15,635	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	118		(26,786	)		(9,149	)		(17,637	)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,755	)		(2,299	)		(2,456	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	91		(20,604	)		(10,708	)		(9,896	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	105		(23,775	)		(12,356	)		(11,419	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	152		(34,393	)		(16,225	)		(18,168	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	153		(34,552	)		(16,294	)		(18,258	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	305		(69,104	)		(20,447	)		(48,657	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	463	$	(104,923	)	$	(30,328	)	$	(74,595	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	500		(113,165	)		(26,790	)		(86,375	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	11		(2,377	)		(1,489	)		(888	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	11		(2,378	)		(879	)		(1,499	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	19		(4,279	)		(2,263	)		(2,016	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,755	)		(1,937	)		(2,818	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,755	)		(1,790	)		(2,965	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	41		(9,352	)		(4,164	)		(5,188	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	116		(26,310	)		(11,561	)		(14,749	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	125		(28,212	)		(10,054	)		(18,158	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	260		(58,801	)		(39,637	)		(19,164	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	225		(51,035	)		(28,646	)		(22,389	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	362		(81,942	)		(56,031	)		(25,911	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	419		(94,780	)		(60,089	)		(34,691	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	700		(158,494	)		(86,540	)		(71,954	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	910		(206,043	)		(100,374	)		(105,669	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	20		(4,438	)		(1,786	)		(2,652	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,755	)		(1,914	)		(2,841	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	83		(18,702	)		(9,843	)		(8,859	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	85		(19,336	)		(7,759	)		(11,577	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	169		(38,197	)		(19,490	)		(18,707	)

46    ^|    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, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	484	$	(109,520	)	$	(55,394	)	$	(54,126	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	770		(174,343	)		(106,265	)		(68,078	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	134		(30,272	)		(8,804	)		(21,468	)
												$	(1,789,087	)	$	(869,737	)	$	(919,350	)

* 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

$

2,480,597

$

– 0

–

$

2,480,597

# 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)

Morgan Stanley Capital Services LLC

USD

595

03/06/2042

2.804%

3 Month LIBOR

Semi-Annual/ Quarterly

$

99,561

$

– 0

–

$

99,561

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2022
HSBC Securities (USA), Inc.†		3.10	%		—	$	6,508,280
HSBC Securities (USA), Inc.†		3.10	%		—		8,699,210
HSBC Securities (USA), Inc.†		3.10	%		—		39,021,652
						$	54,229,142

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2022.

abfunds.com AB BOND INFLATION STRATEGY    ^|    47

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

Inflation-Linked Securities

$

54,229,142

$

– 0

–

$

– 0

–

$

– 0

–

$

54,229,142

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

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

(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, 2022, the aggregate market value of these securities amounted to $193,667,782 or 18.3% 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, 2022.

(f) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.30% of net assets as of October 31, 2022, 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	$	558,713	$	531,342		0.05	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		1,457,044		1,339,427		0.13	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		40,849		36,896		0.00	%
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		1,139,410		972,946		0.09	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 5.946%, 02/27/2023		11/02/2000		171,746		161,866		0.02	%
Terraform Global Operating LP 6.125%, 03/01/2026		08/02/2018		89,000		81,910		0.01	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		363,153		66		0.00	%

(g) Inverse interest only security.

(h) IO – Interest Only.

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

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Fair valued by the Adviser.

(m) 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, 2022.

(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.

48    ^|    AB BOND INFLATION  STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Currency Abbreviations:

EUR – Euro

JPY – Japanese Yen

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

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

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rate

OSE – Osaka Securities Exchange

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    49

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,210,860,249)	$	1,074,262,622
Affiliated issuers (cost $43,763,545)		43,763,545
Cash		253,331
Cash collateral due from broker		11,510,992
Foreign currencies, at value (cost $7,820)		7,819
Receivable for investment securities sold		19,714,026
Unaffiliated interest and dividends receivable		2,855,220
Unrealized appreciation on inflation swaps		2,480,597
Receivable for capital stock sold		1,684,631
Receivable for variation margin on centrally cleared swaps		463,580
Unrealized appreciation on interest rate swaps		99,561
Unrealized appreciation on forward currency exchange contracts		34,381
Affiliated dividends receivable		22,673
Total assets		1,157,152,978
Liabilities
Payable for reverse repurchase agreements		54,229,142
Payable for investment securities purchased and foreign currency transactions		34,772,165
Payable for capital stock redeemed		4,431,811
Cash collateral due to broker		2,500,000
Market value on credit default swaps (net premiums received $869,737)		1,789,087
Advisory fee payable		219,320
Unrealized depreciation on forward currency exchange contracts		139,175
Payable for variation margin on futures		90,373
Distribution fee payable		58,837
Administrative fee payable		35,416
Transfer Agent fee payable		19,734
Foreign capital gains tax payable		14,365
Directors’ fees payable		2,744
Accrued expenses		344,439
Total liabilities		98,646,608
Net Assets	$	1,058,506,370
Composition of Net Assets
Capital stock, at par	$	103,895
Additional paid-in capital		1,192,347,039
Accumulated loss		(133,944,564	)
Net Assets	$	1,058,506,370

See notes to financial statements.

50    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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	$	63,936,079		6,215,841	$	10.29	*
C	$	15,480,152		1,554,720	$	9.96
Advisor	$	506,033,055		49,128,779	$	10.30
R	$	2,633,061		255,182	$	10.32
K	$	4,373,155		425,426	$	10.28
I	$	6,413,931		630,695	$	10.17
1	$	390,054,599		38,769,511	$	10.06
2	$	59,262,211		5,893,109	$	10.06
Z	$	10,320,127		1,022,031	$	10.10

* The maximum offering price per share for Class A shares was $10.53 which reflects a sales charge of 2.25%.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    51

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest	$	76,132,876
Dividends—Affiliated issuers		135,729		$	76,268,605
Expenses
Advisory fee (see Note B)		5,874,855
Distribution fee—Class A		170,972
Distribution fee—Class C		169,338
Distribution fee—Class R		12,197
Distribution fee—Class K		13,633
Distribution fee—Class 1		409,527
Transfer agency—Class A		80,975
Transfer agency—Class C		19,804
Transfer agency—Advisor Class		666,576
Transfer agency—Class R		6,343
Transfer agency—Class K		10,907
Transfer agency—Class I		7,876
Transfer agency—Class 1		59,752
Transfer agency—Class 2		10,055
Transfer agency—Class Z		4,784
Registration fees		274,202
Custody and accounting		178,097
Audit and tax		131,376
Printing		111,968
Administrative		98,498
Legal		47,436
Directors’ fees		32,646
Miscellaneous		36,737
Total expenses before interest expense		8,428,554
Interest expense		1,025,697
Total expenses		9,454,251
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,793,015	)
Net expenses					7,661,236
Net investment income					68,607,369

See notes to financial statements.

52    ^|    AB BOND INFLATION  STRATEGY abfunds.com

STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	(28,319,072	)
Forward currency exchange contracts		1,506,571
Futures		(6,264,885	)
Swaps		622,285
Foreign currency transactions		2,351,939
Net change in unrealized appreciation (depreciation) of:
Investments(b)		(173,348,817	)
Forward currency exchange contracts		1,520,465
Futures		(1,023,220	)
Swaps		25,703,989
Foreign currency denominated assets and liabilities		(85,855	)
Net loss on investment and foreign currency transactions		(177,336,600	)
Net Decrease in Net Assets from Operations	$	(108,729,231	)

(a) Net of foreign realized capital gains taxes of $9,520.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $2,200.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    53

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	68,607,369		$	33,270,082
Net realized gain (loss) on investment and foreign currency transactions		(30,103,162	)		14,110,803
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(147,233,438	)		4,188,413
Net increase (decrease) in net assets from operations		(108,729,231	)		51,569,298
Distributions to Shareholders
Class A		(4,072,663	)		(1,439,317	)
Class C		(935,082	)		(255,420	)
Advisor Class		(35,350,604	)		(11,236,851	)
Class R		(134,438	)		(74,773	)
Class K		(306,142	)		(278,001	)
Class I		(438,474	)		(241,543	)
Class 1		(25,583,456	)		(14,464,863	)
Class 2		(4,260,551	)		(2,649,431	)
Class Z		(1,252,299	)		(756,905	)
Capital Stock Transactions
Net increase		215,890,499			430,919,982
Total increase		34,827,559			451,092,176
Net Assets
Beginning of period		1,023,678,811			572,586,635
End of period	$	1,058,506,370		$	1,023,678,811

See notes to financial statements.

54    ^|    AB BOND INFLATION  STRATEGY abfunds.com

STATEMENT OF CASH FLOWS

For the year ended October 31, 2022

Cash flows from operating activities
Net decrease in net assets from operations				$	(108,729,231	)
Reconciliation of net decrease in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(1,109,250,749	)
Purchases of short-term investments		(769,496,233	)
Proceeds from disposition of long-term investments		1,051,157,312
Proceeds from disposition of short-term investments		772,061,841
Net realized loss on investment transactions and foreign currency transactions		30,103,162
Net realized gain on forward currency exchange contracts		1,506,571
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		147,233,438
Net accretion of bond discount and amortization of bond premium		17,130,103
Inflation index adjustment		(76,379,884	)
Increase in receivable for investments sold		(19,541,021	)
Increase in interest receivable		(93,923	)
Increase in affiliated dividends receivable		(22,303	)
Decrease in cash collateral due from broker		107,479
Decrease in payable for investments purchased		(11,249,797	)
Increase in cash collateral due to broker		272,000
Decrease in advisory fee payable		(44,445	)
Increase in administrative fee payable		286
Decrease in Foreign capital gains tax payable		(11,720	)
Increase in Transfer Agent fee payable		9,296
Increase in distribution fee payable		4,202
Increase in Directors’ fee payable		363
Decrease in accrued expenses		(18,033	)
Proceeds on swaps, net		1,263,102
Proceeds for exchange-traded derivatives settlements, net		15,241,879
Total adjustments					49,982,926
Net cash provided by (used in) operating activities					(58,746,305	)

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    55

STATEMENT OF CASH FLOWS (continued)

Cash flows from financing activities
Subscriptions of capital stock, net	$	179,734,845
Cash dividends paid (net of dividend reinvestments)†		(16,945,069	)
Repayment of reverse repurchase agreements		(107,652,543	)
Net cash provided by (used in) financing activities				$	55,137,233
Effect of exchange rate on cash					2,266,084
Net decrease in cash					(1,342,988	)
Cash at beginning of year					1,604,138
Cash at end of year				$	261,150
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	55,388,640
Interest expense paid during the year	$	900,520

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.

56    ^|    AB BOND INFLATION  STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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. Effective March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25% and purchases in amounts of $500,000 or more, or by certain group retirement plans, may be subject to a 1%, 18-month contingent deferred sales charge, which may be subject to waiver in certain circumstances. Prior to March 7, 2022, purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may have been subject to a 1%, 1-year contingent deferred sales charge, which may have been subject to waiver in certain circumstances. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R, 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 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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    57

NOTES TO FINANCIAL STATEMENTS (continued)

1. Security Valuation

Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

58    ^|    AB BOND INFLATION  STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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 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)

abfunds.com AB BOND INFLATION STRATEGY    ^|    59

NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

60    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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, 2022:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Inflation-Linked Securities

$

– 0

–

$

773,372,362

$

– 0

–

$

773,372,362

Corporates—Investment Grade

– 0

–

104,560,275

– 0

–

104,560,275

Asset-Backed Securities

– 0

–

51,032,667

– 0

–

51,032,667

Collateralized Mortgage Obligations

– 0

–

50,399,401

– 0

–

50,399,401

Collateralized Loan Obligations

– 0

–

25,987,730

– 0

–

25,987,730

Mortgage Pass-Throughs

– 0

–

24,407,457

– 0

–

24,407,457

Corporates—Non-Investment Grade

– 0

–

17,574,045

– 0

–

17,574,045

Commercial Mortgage-Backed Securities

– 0

–

14,951,609

1,907,665

16,859,274

Emerging Markets—Corporate Bonds

– 0

–

2,967,024

66

2,967,090

Local Governments—US Municipal Bonds

– 0

–

2,485,184

– 0

–

2,485,184

Quasi-Sovereigns

– 0

–

1,657,130

– 0

–

1,657,130

Common Stocks

– 0

–

– 0

–

1,434,487

1,434,487

Emerging Markets—Sovereigns

– 0

–

1,355,439

– 0

–

1,355,439

Governments—Sovereign Bonds

– 0

–

170,081

– 0

–

170,081

Short-Term Investments

43,763,545

– 0

–

– 0

–

43,763,545

Total Investments in Securities

43,763,545

1,070,920,404

3,342,218

1,118,026,167

Other Financial Instruments(a):

Assets:

Futures

2,003,129

– 0

–

– 0

–

2,003,129

(b)

Forward Currency Exchange Contracts

– 0

–

34,381

– 0

–

34,381

Centrally Cleared Credit Default Swaps

– 0

–

17,764

– 0

–

17,764

(b)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

16,275,120

– 0

–

16,275,120

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

13,506,462

– 0

–

13,506,462

(b)

Inflation (CPI) Swaps

– 0

–

2,480,597

– 0

–

2,480,597

Interest Rate Swaps

– 0

–

99,561

– 0

–

99,561

abfunds.com AB BOND INFLATION STRATEGY    ^|    61

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Futures	$	(2,323,441	)	$	– 0	–	$	– 0	–	$	(2,323,441	)(b)
Forward Currency Exchange Contracts		– 0	–		(139,175	)		– 0	–		(139,175	)
Credit Default Swaps		– 0	–		(1,789,087	)		– 0	–		(1,789,087	)
Reverse Repurchase Agreements		(54,229,142	)		– 0	–		– 0	–		(54,229,142	)
Total	$	(10,785,909	)	$	1,101,406,027		$	3,342,218		$	1,093,962,336

(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, written options and written swaptions 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

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NOTES TO FINANCIAL STATEMENTS (continued)

gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

5. Investment Income and Investment Transactions

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

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

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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    63

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 .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, 2023 and then may be extended for additional one-year terms. For the year ended October 31, 2022, such reimbursement amounted to $1,778,032.

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, 2022, the reimbursement for such services amounted to $98,498.

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 $218,108 for the year ended October 31, 2022.

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 $10,072 from the sale of Class A shares and received $2,712 and $5,934 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, such waiver amounted to $14,983.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	47,433	$	768,268	$	771,937	$	43,764	$	136

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 $302,226, $59,887, $59,686 and $1,583,343 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.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2022 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	175,508,517	$	141,842,046
U.S. government securities		933,773,791		878,601,369

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

Cost	$	1,258,817,817
Gross unrealized appreciation	$	34,862,159
Gross unrealized depreciation		(150,035,786	)
Net unrealized depreciation	$	(115,173,627	)

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

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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, 2022, 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, 2022, the Fund held forward currency exchange contracts 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 merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions

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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, 2022, 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, 2022, 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 credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments

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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, 2022, 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, 2022, 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.

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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, 2022, 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	$	2,003,129	*	Receivable/Payable for variation margin on futures	$	2,323,441	*
Credit contracts					Receivable/Payable for variation margin on centrally cleared swaps		231,026	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		29,781,582	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		34,381		Unrealized depreciation on forward currency exchange contracts		139,175
Interest rate contracts	Unrealized appreciation on interest rate swaps		99,561
Interest rate contracts	Unrealized appreciation on inflation swaps		2,480,597
Credit contracts					Market value on credit default swaps		1,789,087
Total		$	34,399,250			$	4,482,729

* 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	$	(6,264,885	)	$	(1,023,220	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		1,506,571			1,520,465
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(543,543	)		23,950,373
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		1,165,828			1,753,616
Total		$	(4,136,029	)	$	26,201,234

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Futures:
Average notional amount of buy contracts	$	89,002,655
Average notional amount of sale contracts	$	71,240,584
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	24,632,259	(a)
Average principal amount of sale contracts	$	58,585,666
Interest Rate Swaps:
Average notional amount	$	595,000
Inflation Swaps:
Average notional amount	$	23,800,000
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	98,025,868
Centrally Cleared Inflation Swaps:
Average notional amount	$	248,564,615
Credit Default Swaps:
Average notional amount of buy contracts	$	13,160,200	(b)
Average notional amount of sale contracts	$	10,811,415
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	121,620,951	(a)
Total Return Swaps:
Average notional amount	$	20,860,000	(c)

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

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

(c) Positions were open for less than one month 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, 2022. 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
Australia and New Zealand Banking Group Ltd.	$	2,325	$	– 0	–	$	– 0	–	$	– 0	–	$	2,325
Bank of America, NA		32,056		(32,056	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		2,480,597		(194,948	)		(2,165,200	)		– 0	–		120,449
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		99,561		(99,561	)		– 0	–		– 0	–		– 0	–
Total	$	2,614,539	$	(326,565	)	$	(2,165,200	)	$	– 0	–	$	122,774	^
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	$	116,410	$	(32,056	)	$	– 0	–	$	– 0	–	$	84,354
Citigroup Global Markets, Inc.		103,500		– 0	–		– 0	–		– 0	–		103,500
Credit Suisse International		147,240		– 0	–		(147,240	)		– 0	–		– 0	–
Deutsche Bank AG		405,271		– 0	–		– 0	–		(405,271	)		– 0	–
Goldman Sachs International		733,513		– 0	–		– 0	–		(733,513	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		194,948		(194,948	)		– 0	–		– 0	–		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.		227,380		(99,561	)		(90,500	)		– 0	–		37,319
Total	$	1,928,262	$	(326,565	)	$	(237,740	)	$	(1,138,784	)	$	225,173	^

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* 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. 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

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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, 2022, the Fund earned drop income of $358,317 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, 2022, the average amount of reverse repurchase agreements outstanding was $127,260,457 and the daily weighted average interest rate was .81%. At October 31, 2022, the Fund had reverse repurchase agreements outstanding in the amount of $54,229,142 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, 2022:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Securities (USA), Inc.	$	54,229,142	$	(54,012,968	)	$	216,174

† Including accrued interest.

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

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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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		3,408,664			2,978,479		$	39,211,778		$	35,571,322
Shares issued in reinvestment of dividends and distributions		255,057			90,410			2,866,214			1,077,553
Shares converted from Class C		26,159			37,706			297,352			448,061
Shares redeemed		(2,041,123	)		(1,241,973	)		(22,492,315	)		(14,796,949	)
Net increase		1,648,757			1,864,622		$	19,883,029		$	22,299,987
Class C
Shares sold		957,369			910,217		$	10,835,221		$	10,556,717
Shares issued in reinvestment of dividends and distributions		73,644			18,764			802,273			217,682
Shares converted to Class A		(26,969	)		(38,802	)		(297,352	)		(448,061	)
Shares redeemed		(560,082	)		(119,284	)		(6,068,964	)		(1,373,884	)
Net increase		443,962			770,895		$	5,271,178		$	8,952,454
Advisor Class
Shares sold		40,616,333			32,633,289		$	468,051,394		$	390,487,358
Shares issued in reinvestment of dividends and distributions		2,345,667			752,032			26,434,513			8,980,280
Shares redeemed		(33,515,631	)		(5,427,376	)		(375,042,679	)		(64,729,262	)
Net increase		9,446,369			27,957,945		$	119,443,228		$	334,738,376
Class R
Shares sold		141,704			75,262		$	1,603,993		$	896,690
Shares issued in reinvestment of dividends and distributions		11,932			6,268			134,438			74,772
Shares redeemed		(95,894	)		(149,178	)		(1,097,267	)		(1,768,349	)
Net increase (decrease)		57,742			(67,648	)	$	641,164		$	(796,887	)

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class K
Shares sold		112,908			275,029		$	1,294,450		$	3,257,866
Shares issued in reinvestment of dividends and distributions		27,068			23,367			306,141			278,000
Shares redeemed		(335,148	)		(266,306	)		(3,896,262	)		(3,145,625	)
Net increase (decrease)		(195,172	)		32,090		$	(2,295,671	)	$	390,241
Class I
Shares sold		423,106			196,613		$	4,824,045		$	2,313,809
Shares issued in reinvestment of dividends and distributions		39,405			20,510			438,474			241,543
Shares redeemed		(346,343	)		(427,976	)		(3,852,368	)		(5,005,518	)
Net increase (decrease)		116,168			(210,853	)	$	1,410,151		$	(2,450,166	)
Class 1
Shares sold		11,062,605			8,538,149		$	125,319,297		$	99,794,546
Shares issued in reinvestment of dividends and distributions		1,752,879			943,670			19,320,268			11,024,083
Shares redeemed		(6,204,606	)		(4,846,477	)		(68,561,063	)		(56,534,866	)
Net increase		6,610,878			4,635,342		$	76,078,502		$	54,283,763
Class 2
Shares sold		3,439,902			1,000,419		$	39,531,686		$	11,655,904
Share issued in reinvestment of dividends and distributions		347,497			214,040			3,835,645			2,498,675
Shares redeemed		(3,552,396	)		(871,616	)		(40,218,571	)		(10,110,085	)
Net increase		235,003			342,843		$	3,148,760		$	4,044,494
Class Z
Shares sold		660,539			1,223,975		$	7,478,978		$	14,312,713
Share issued in reinvestment of dividends and distributions		113,031			64,293			1,250,674			753,696
Shares redeemed		(1,528,362	)		(479,527	)		(16,419,494	)		(5,608,689	)
Net increase (decrease)		(754,792	)		808,741		$	(7,689,842	)	$	9,457,720

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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) and regional and global conflicts, that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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 Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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

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

80    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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 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 utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. 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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing

abfunds.com AB BOND INFLATION STRATEGY    ^|    81

NOTES TO FINANCIAL STATEMENTS (continued)

and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	68,537,505	$	27,901,153
Net long-term capital gains		3,796,204		3,495,951
Total taxable distributions paid	$	72,333,709	$	31,397,104

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NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	3,129,746
Accumulated capital and other losses		(21,564,655	)(a)
Unrealized appreciation (depreciation)		(115,209,506	)(b)
Total accumulated earnings/(deficit)	$	(133,644,415	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $21,564,655.

(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 callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax and 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, 2022, the Fund had a net short-term capital loss carryforward of $9,889,007 and a net long-term capital loss carryforward of $11,665,648, which may be carried forward for an indefinite period.

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 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 BOND INFLATION STRATEGY    ^|    83

FINANCIAL HIGHLIGHTS

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

	Class A
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.97			$  11.56			$  10.95			$  10.47			$  10.83
Income From Investment Operations
Net investment income(a)(b)		.64			.51			.25			.21			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.66	)		.35			.59			.52			(.38	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.02	)		.86			.84			.73			(.10	)
Less: Dividends and Distributions
Dividends from net investment income		(.62	)		(.45	)		(.23	)		(.24	)		(.26	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.66	)		(.45	)		(.23	)		(.25	)		(.26	)
Net asset value, end of period		$  10.29			$  11.97			$  11.56			$  10.95			$  10.47
Total Return
Total investment return based on net asset value(d)		(8.93	)%		7.63	%		7.64	%		7.00	%		(.99	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$63,936			$54,687			$31,248			$38,422			$52,116
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.84	%		.78	%		.91	%		1.25	%		1.31	%
Expenses, before waivers/reimbursements(e)		1.04	%		1.00	%		1.18	%		1.51	%		1.56	%
Net investment income(b)		5.69	%		4.29	%		2.26	%		1.93	%		2.60	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

84    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Class C
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.63			$  11.25			$  10.67			$  10.24			$  10.61
Income From Investment Operations
Net investment income(a)(b)		.54			.44			.18			.13			.19
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.62	)		.31			.56			.49			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.08	)		.75			.74			.62			(.18	)
Less: Dividends and Distributions
Dividends from net investment income		(.55	)		(.37	)		(.16	)		(.19	)		(.19	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.59	)		(.37	)		(.16	)		(.19	)		(.19	)
Net asset value, end of period		$  9.96			$  11.63			$  11.25			$  10.67			$  10.24
Total Return
Total investment return based on net asset value(d)		(9.58	)%		6.87	%		6.92	%		6.18	%		(1.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$15,480			$12,915			$3,823			$2,607			$3,391
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.59	%		1.53	%		1.64	%		1.99	%		2.03	%
Expenses, before waivers/reimbursements(e)		1.78	%		1.75	%		1.91	%		2.26	%		2.29	%
Net investment income(b)		4.91	%		3.79	%		1.62	%		1.28	%		1.77	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

abfunds.com AB BOND INFLATION STRATEGY    ^|    85

FINANCIAL HIGHLIGHTS (continued)

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

	Advisor Class
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.99			$  11.57			$  10.96			$  10.49			$  10.84
Income From Investment Operations
Net investment income(a)(b)		.67			.57			.27			.27			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.67	)		.33			.60			.48			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.00	)		.90			.87			.75			(.07	)
Less: Dividends and Distributions
Dividends from net investment income		(.65	)		(.48	)		(.26	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.69	)		(.48	)		(.26	)		(.28	)		(.28	)
Net asset value, end of period		$  10.30			$  11.99			$  11.57			$  10.96			$  10.49
Total Return
Total investment return based on net asset value(d)		(8.72	)%		7.98	%		7.93	%		7.21	%		(.68	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$506,033			$475,604			$135,677			$168,440			$150,011
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.59	%		.53	%		.66	%		.97	%		1.05	%
Expenses, before waivers/reimbursements(e)		.78	%		.74	%		.92	%		1.24	%		1.31	%
Net investment income(b)		5.95	%		4.76	%		2.44	%		2.47	%		2.80	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  12.00			$  11.57			$  10.93			$  10.46			$  10.82
Income From Investment Operations
Net investment income(a)(b)		.61			.45			.21			.20			.24
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.67	)		.38			.62			.49			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.06	)		.83			.83			.69			(.13	)
Less: Dividends and Distributions
Dividends from net investment income		(.58	)		(.40	)		(.19	)		(.22	)		(.23	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.62	)		(.40	)		(.19	)		(.22	)		(.23	)
Net asset value, end of period		$  10.32			$  12.00			$  11.57			$  10.93			$  10.46
Total Return
Total investment return based on net asset value(d)		(9.15	)%		7.44	%		7.61	%(f)		6.64	%		(1.15	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,633			$2,369			$3,066			$6,992			$6,354
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.09	%		1.04	%		1.21	%		1.47	%		1.54	%
Expenses, before waivers/reimbursements(e)		1.43	%		1.40	%		1.58	%		1.83	%		1.90	%
Net investment income(b)		5.36	%		3.74	%		1.88	%		1.88	%		2.24	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.96			$  11.54			$  10.92			$  10.45			$  10.81
Income From Investment Operations
Net investment income(a)(b)		.61			.52			.27			.17			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.64	)		.34			.58			.54			(.38	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.03	)		.86			.85			.71			(.11	)
Less: Dividends and Distributions
Dividends from net investment income		(.61	)		(.44	)		(.23	)		(.23	)		(.25	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.65	)		(.44	)		(.23	)		(.24	)		(.25	)
Net asset value, end of period		$  10.28			$  11.96			$  11.54			$  10.92			$  10.45
Total Return
Total investment return based on net asset value(d)		(8.94	)%		7.64	%		7.74	%		6.88	%		(1.01	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$4,373			$7,420			$6,790			$5,051			$12,055
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.82	%		.78	%		.89	%		1.27	%		1.35	%
Expenses, before waivers/reimbursements(e)		1.10	%		1.09	%		1.21	%		1.57	%		1.65	%
Net investment income(b)		5.33	%		4.34	%		2.40	%		1.61	%		2.57	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.84			$  11.44			$  10.84			$  10.38			$  10.74
Income From Investment Operations
Net investment income(a)(b)		.66			.51			.27			.25			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.64	)		.37			.59			.49			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(.98	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.65	)		(.48	)		(.26	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.69	)		(.48	)		(.26	)		(.28	)		(.28	)
Net asset value, end of period		$  10.17			$  11.84			$  11.44			$  10.84			$  10.38
Total Return
Total investment return based on net asset value(d)		(8.67	)%		7.88	%		7.97	%		7.23	%		(.73	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,414			$6,093			$8,297			$9,893			$5,688
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.59	%		.53	%		.65	%		.94	%		1.11	%
Expenses, before waivers/reimbursements(e)		.78	%		.74	%		.88	%		1.18	%		1.34	%
Net investment income(b)		5.92	%		4.31	%		2.42	%		2.40	%		2.67	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

abfunds.com AB BOND INFLATION STRATEGY    ^|    89

FINANCIAL HIGHLIGHTS (continued)

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

	Class 1
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.73			$  11.35			$  10.77			$  10.33			$  10.69
Income From Investment Operations
Net investment income(a)(b)		.64			.52			.26			.24			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.62	)		.34			.59			.48			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(.98	)		.86			.85			.72			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.65	)		(.48	)		(.27	)		(.27	)		(.28	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.69	)		(.48	)		(.27	)		(.28	)		(.28	)
Net asset value, end of period		$  10.06			$  11.73			$  11.35			$  10.77			$  10.33
Total Return
Total investment return based on net asset value(d)		(8.75	)%		7.77	%		7.84	%		7.18	%		(.77	)%(f)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$390,055			$377,333			$312,381			$319,282			$306,620
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.69	%		.63	%		.75	%		1.07	%		1.14	%
Expenses, before waivers/reimbursements(e)		.78	%		.75	%		.88	%		1.20	%		1.28	%
Net investment income(b)		5.76	%		4.44	%		2.42	%		2.31	%		2.66	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

90    ^|    AB BOND INFLATION  STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

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

	Class 2
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.73			$  11.34			$  10.76			$  10.32			$  10.69
Income From Investment Operations
Net investment income(a)(b)		.64			.53			.28			.26			.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.61	)		.35			.58			.48			(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(.97	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.66	)		(.49	)		(.28	)		(.29	)		(.29	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.70	)		(.49	)		(.28	)		(.30	)		(.29	)
Net asset value, end of period		$  10.06			$  11.73			$  11.34			$  10.76			$  10.32
Total Return
Total investment return based on net asset value(d)		(8.77	)%		7.98	%		7.96	%		7.19	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$59,262			$66,348			$60,289			$58,829			$50,705
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.58	%		.53	%		.65	%		.96	%		1.03	%
Expenses, before waivers/reimbursements(e)		.67	%		.65	%		.78	%		1.09	%		1.17	%
Net investment income(b)		5.75	%		4.51	%		2.53	%		2.45	%		2.78	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

abfunds.com AB BOND INFLATION STRATEGY    ^|    91

FINANCIAL HIGHLIGHTS (continued)

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

	Class Z
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.77			$  11.38			$  10.80			$  10.35			$  10.72
Income From Investment Operations
Net investment income(a)(b)		.67			.56			.24			.27			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.65	)		.32			.62			.47			(.36	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(.98	)		.88			.86			.74			(.08	)
Less: Dividends and Distributions
Dividends from net investment income		(.65	)		(.49	)		(.28	)		(.28	)		(.29	)
Distributions from net realized gain on investment transactions		(.04	)		– 0	–		– 0	–		– 0	–		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.01	)		– 0	–
Total dividends and distributions		(.69	)		(.49	)		(.28	)		(.29	)		(.29	)
Net asset value, end of period		$  10.10			$  11.77			$  11.38			$  10.80			$  10.35
Total Return
Total investment return based on net asset value(d)		(8.65	)%		7.94	%		7.92	%		7.26	%		(.77	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10,320			$20,910			$11,016			$32,606			$26,142
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.58	%		.53	%		.67	%		.96	%		1.06	%
Expenses, before waivers/reimbursements(e)		.68	%		.65	%		.81	%		1.10	%		1.21	%
Net investment income(b)		6.02	%		4.81	%		2.16	%		2.50	%		2.69	%
Portfolio turnover rate		79	%		62	%		48	%		40	%		36	%

See footnote summary on page 93.

92    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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,
	2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		.95	%		.97	%		1.01	%		1.02	%		1.01	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.69	%		1.72	%		1.77	%		1.77	%		1.76	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.69	%		.72	%		.77	%		.77	%		.76	%
Class R
Net of waivers/reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Before waivers/reimbursements		1.34	%		1.36	%		1.37	%		1.36	%		1.36	%
Class K
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.02	%		1.05	%		1.07	%		1.04	%		1.05	%
Class I
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.69	%		.71	%		.73	%		.73	%		.73	%
Class 1
Net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.69	%		.72	%		.73	%		.73	%		.74	%
Class 2
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.59	%		.62	%		.63	%		.63	%		.64	%
Class Z
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.60	%		.62	%		.63	%		.64	%		.65	%

(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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    93

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, 2022, 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, 2022, 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

94    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 2022

abfunds.com AB BOND INFLATION STRATEGY    ^|    95

2022 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, 2022. For foreign shareholders, 95.15% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

The Fund designates $3,796,204 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 2023.

96    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Janaki Rao⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    97

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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	None

98    ^|    AB BOND INFLATION STRATEGY abfunds.com

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 81 (2005)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2005)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2008)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Michael Canter 53	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Director and Chief Investment Officer – Securitized Assets.
Janaki Rao 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Director of US Multi-Sector Fixed-Income Portfolios.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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.

104    ^|    AB BOND INFLATION STRATEGY abfunds.com

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 2022, which covered the period January 1, 2021 through December 31, 2021 (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,

abfunds.com AB BOND INFLATION STRATEGY    ^|    105

and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

106    ^|    AB BOND INFLATION  STRATEGY abfunds.com

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 2-4, 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

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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 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 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, 2021 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. Taking into account the administrative expense reimbursement paid to the Adviser in the latest fiscal year, the directors noted that the Adviser’s total compensation was above the median.

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 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. The directors noted that the Fund’s expense ratio was in line with the medians.

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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 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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

112    ^|    AB BOND INFLATION  STRATEGY abfunds.com

AB BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

BIS-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB HIGH YIELD PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    1

ANNUAL REPORT

December 5, 2022

This report provides management’s discussion of fund performance for the AB High Yield Portfolio for the annual reporting period ended October 31, 2022.

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

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB HIGH YIELD PORTFOLIO
Class A Shares		-5.94%		-12.89%
Advisor Class Shares1		-5.82%		-12.68%
Class Z Shares1		-5.82%		-12.67%
Primary Benchmark: Bloomberg US Corporate HY 2% Issuer Capped Index		-4.71%		-11.76%
Markit iBoxx USD Liquid High Yield Index		-3.92%		-10.82%

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 primary benchmark, the Bloomberg US Corporate High Yield (“HY”) 2% Issuer Capped Index, for the six- and 12-month periods ended October 31, 2022. The table also includes the Markit iBoxx USD Liquid High Yield Index.

During both periods, all share classes underperformed the primary benchmark, before sales charges. In the 12-month period, industry allocation was the main detractor, relative to the benchmark, mostly from the utilization of high-yield credit default swaps, underweights to energy and electric, and an overweight to retailers, partially offset by the utilization of futures. Security selection also detracted, as selection within technology, electric, entertainment, consumer cyclical–other, and real estate investment trusts (“REITs”) lost more than gains within telecommunications, energy and retailers. Yield-curve positioning contributed, as underweights to the two-, 20- and 30-year parts of the curve added more than losses from overweights to the five- and 10-year parts of the curve. Currency decisions were a minor contributor to performance.

During the six-month period, industry allocation detracted, as losses from underweights to energy and electric, the use of high-yield credit default

2    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

swaps and an overweight to the entertainment sector more than offset a gain from the use of futures. Security selection also hampered returns, as selection within technology, autos, finance and REITs detracted, and were partially offset by gains from selection within entertainment, retailers, media, telecommunications and capital goods. An overweight to the six-month part of the yield curve and underweights to the two-, 20- and 30-year parts of the curve contributed, and were partially offset by overweights to the five- and 10-year parts of the curve. Currency decisions added modestly to results.

During both 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. Credit options were used to generate income over the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

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.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    3

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities rated Ba1 or lower by Moody’s Investors Service, or BB+ or lower by S&P Global Ratings or Fitch Ratings, or the equivalent by any nationally recognized statistical rating organization (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 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) and regional and global conflicts, that affect large portions of the market.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (continued)

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 if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“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 and are subject to increased economic, political, regulatory or other uncertainties.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns.

6    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

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 performance fee

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

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.

8    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE

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

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB High Yield Portfolio Advisor Class shares (from 10/31/2012 to 10/31/2022) as compared to the performance of the Fund’s current and previous benchmarks. The chart assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						7.28%
1 Year		-12.89%		-16.57%
Since Recommencement of Operations2		-7.42%		-10.04%
ADVISOR CLASS SHARES3						7.84%
1 Year		-12.68%		-12.68%
5 Years		2.43%		2.43%
10 Years		4.31%		4.31%
CLASS Z SHARES3						7.84%
1 Year		-12.67%		-12.67%
Since Recommencement of Operations2		-7.19%		-7.19%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 2.28%, 1.83% and 1.92% 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 limited the Fund’s total 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 January 31, 2023. 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, 2022.

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.

10    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-18.69%
Since Recommencement of Operations1		-12.08%
ADVISOR CLASS SHARES2
1 Year		-14.84%
5 Years		2.03%
10 Years		4.19%
CLASS Z SHARES2
1 Year		-14.83%
Since Recommencement of Operations1		-9.15%

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.

abfunds.com AB HIGH YIELD 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, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	940.60	$	4.16		0.85	%
Hypothetical**	$	1,000	$	1,020.92	$	4.33		0.85	%
Advisor Class
Actual	$	1,000	$	941.80	$	2.94		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%
Class Z
Actual	$	1,000	$	941.80	$	2.94		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.

12    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $68.3

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

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    13

PORTFOLIO OF INVESTMENTS

October 31, 2022

		Principal Amount (000)		U.S. $ Value
CORPORATES - NON-INVESTMENT GRADE – 72.8%
Industrial – 66.6%
Basic – 4.9%
Arconic Corp. 6.125%, 02/15/2028(a)	U.S.$		11	$	10,307
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(a)			170		136,684
7.50%, 09/30/2029(a)			17		11,403
Big River Steel LLC/BRS Finance Corp. 6.625%, 01/31/2029(a)			16		15,153
Cheever Escrow Issuer LLC 7.125%, 10/01/2027(a)			206		188,812
Cleveland-Cliffs, Inc. 4.625%, 03/01/2029(a)			6		5,166
Commercial Metals Co. 4.875%, 05/15/2023			50		49,869
Constellium SE 3.125%, 07/15/2029(a)	EUR		166		121,589
Crown Americas LLC/Crown Americas Capital Corp. VI 4.75%, 02/01/2026	U.S.$		60		57,499
CVR Partners LP/CVR Nitrogen Finance Corp. 6.125%, 06/15/2028(a)			29		26,255
Element Solutions, Inc. 3.875%, 09/01/2028(a)			110		93,451
ERP Iron Ore, LLC 9.039%, 12/31/2019(b)(c)(d)(e)(f)			5		3,332
FMG Resources August 206 Pty Ltd. 4.375%, 04/01/2031(a)			145		115,188
6.125%, 04/15/2032(a)			180		159,850
Graham Packaging Co., Inc. 7.125%, 08/15/2028(a)			119		97,736
Graphic Packaging International LLC 3.75%, 02/01/2030(a)			23		19,768
4.75%, 07/15/2027(a)			28		25,835
Guala Closures SpA 3.25%, 06/15/2028(a)	EUR		200		159,993
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. 9.00%, 07/01/2028(a)	U.S.$		37		31,289
INEOS Styrolution Group GmbH 2.25%, 01/16/2027(a)	EUR		100		77,825
Ingevity Corp. 3.875%, 11/01/2028(a)	U.S.$		30		25,456
Intelligent Packaging Holdco Issuer LP 9.00% (9.00% Cash or 9.75% PIK), 01/15/2026(a)(f)			39		29,363

14    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

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.$		98	$	73,135
Kleopatra Finco SARL 4.25%, 03/01/2026(a)	EUR		100		81,266
Kobe US Midco 2, Inc. 9.25% (9.25% Cash or 10.00% PIK), 11/01/2026(a)(f)	U.S.$		97		74,703
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(b)(c)(d)(e)(g)			60		– 0	–
Mercer International, Inc. 5.125%, 02/01/2029			199		165,836
Monitchem HoldCo 3 SA 5.25%, 03/15/2025(a)	EUR		207		186,254
Olin Corp. 5.625%, 08/01/2029	U.S.$		301		282,952
Rimini Bidco SpA 6.25% (EURIBOR 3 Month + 5.25%), 12/14/2026(h)	EUR		100		84,059
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(a)	U.S.$		431		344,135
Sealed Air Corp. 5.50%, 09/15/2025(a)			33		32,416
Valvoline, Inc. 4.25%, 02/15/2030(a)			63		60,939
Vibrantz Technologies, Inc. 9.00%, 02/15/2030(a)			269		177,992
WR Grace Holdings LLC 4.875%, 06/15/2027(a)			158		138,226
5.625%, 08/15/2029(a)			261		201,760
					3,365,496
Capital Goods – 5.4%
ARD Finance SA 5.00% (5.00% Cash or 5.75% PIK), 06/30/2027(a)(f)	EUR		120		80,870
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC 3.00%, 09/01/2029(a)			100		70,660
4.00%, 09/01/2029(a)	U.S.$		200		151,750
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a)			200		172,050
5.25%, 08/15/2027(a)			200		143,206
Ball Corp. 2.875%, 08/15/2030			222		172,700

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Bombardier, Inc. 6.00%, 02/15/2028(a)	U.S.$		85	$	75,739
7.50%, 12/01/2024(a)			59		58,851
7.50%, 03/15/2025(a)			42		41,295
7.875%, 04/15/2027(a)			173		164,378
Clean Harbors, Inc. 4.875%, 07/15/2027(a)			16		15,069
5.125%, 07/15/2029(a)			11		10,201
Crown Cork & Seal Co., Inc. 7.375%, 12/15/2026			20		20,381
Eco Material Technologies, Inc. 7.875%, 01/31/2027(a)			258		241,388
Energizer Holdings, Inc. 4.375%, 03/31/2029(a)			74		59,886
EnerSys 4.375%, 12/15/2027(a)			80		70,164
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			162		155,520
GFL Environmental, Inc. 3.50%, 09/01/2028(a)			28		23,723
4.00%, 08/01/2028(a)			50		42,875
Granite US Holdings Corp. 11.00%, 10/01/2027(a)			18		16,831
Griffon Corp. 5.75%, 03/01/2028			39		35,730
Harsco Corp. 5.75%, 07/31/2027(a)			151		107,047
JELD-WEN, Inc. 4.625%, 12/15/2025(a)			6		4,990
LSB Industries, Inc. 6.25%, 10/15/2028(a)			52		47,344
Madison IAQ LLC 5.875%, 06/30/2029(a)			299		205,692
Mueller Water Products, Inc. 4.00%, 06/15/2029(a)			13		11,291
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		89,128
SPX FLOW, Inc. 8.75%, 04/01/2030(a)	U.S.$		130		106,323
Stevens Holding Co., Inc. 6.125%, 10/01/2026(a)			20		20,048
TK Elevator Midco GmbH 4.375%, 07/15/2027(a)	EUR		100		83,628
TransDigm, Inc. 4.625%, 01/15/2029	U.S.$		150		127,842
4.875%, 05/01/2029			84		71,533
6.25%, 03/15/2026(a)			288		283,998

16    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.375%, 06/15/2026	U.S.$		158	$	152,202
8.00%, 12/15/2025(a)			61		62,070
Triumph Group, Inc. 6.25%, 09/15/2024(a)			258		239,354
7.75%, 08/15/2025			23		17,447
8.875%, 06/01/2024(a)			28		28,295
Trivium Packaging Finance BV 3.75%, 08/15/2026(a)	EUR		100		88,725
WESCO Distribution, Inc. 7.125%, 06/15/2025(a)	U.S.$		14		14,140
7.25%, 06/15/2028(a)			107		108,520
					3,692,884
Communications - Media – 9.4%
Advantage Sales & Marketing, Inc. 6.50%, 11/15/2028(a)			125		106,353
Altice Financing SA 5.00%, 01/15/2028(a)			608		485,764
AMC Networks, Inc. 4.25%, 02/15/2029			298		231,162
Arches Buyer, Inc. 6.125%, 12/01/2028(a)			100		77,185
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 02/01/2031(a)			50		39,498
4.25%, 01/15/2034(a)			482		353,933
4.50%, 08/15/2030(a)			235		190,990
4.50%, 06/01/2033(a)			53		40,370
4.75%, 03/01/2030(a)			40		33,327
5.00%, 02/01/2028(a)			193		174,148
5.125%, 05/01/2027(a)			295		273,341
6.375%, 09/01/2029(a)			66		61,139
Clear Channel Outdoor Holdings, Inc. 5.125%, 08/15/2027(a)			124		111,587
CSC Holdings LLC 3.375%, 02/15/2031(a)			208		150,873
4.50%, 11/15/2031(a)			200		155,745
4.625%, 12/01/2030(a)			516		371,750
7.50%, 04/01/2028(a)			200		172,919
DISH DBS Corp. 5.25%, 12/01/2026(a)			218		189,282
5.75%, 12/01/2028(a)			263		212,264
5.875%, 11/15/2024			86		79,318
7.375%, 07/01/2028			71		53,969
7.75%, 07/01/2026			101		85,323
DISH Network Corp. 3.375%, 08/15/2026(i)			27		18,692

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Gray Escrow II, Inc. 5.375%, 11/15/2031(a)	U.S.$		137	$	110,091
iHeartCommunications, Inc. 4.75%, 01/15/2028(a)			118		102,945
5.25%, 08/15/2027(a)			37		33,722
6.375%, 05/01/2026			5		4,853
8.375%, 05/01/2027			40		36,188
Lamar Media Corp. 4.875%, 01/15/2029			8		7,237
LCPR Senior Secured Financing DAC 6.75%, 10/15/2027(a)			200		189,370
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(a)			176		154,968
8.00%, 08/01/2029(a)			13		11,066
National CineMedia LLC 5.75%, 08/15/2026			21		1,691
5.875%, 04/15/2028(a)			60		24,113
Outfront Media Capital LLC/Outfront Media Capital Corp.
4.25%, 01/15/2029(a)			139		114,270
4.625%, 03/15/2030(a)			11		9,077
Radiate Holdco LLC/Radiate Finance, Inc. 4.50%, 09/15/2026(a)			214		182,724
Sinclair Television Group, Inc. 5.125%, 02/15/2027(a)			9		7,558
5.50%, 03/01/2030(a)			344		257,229
Sirius XM Radio, Inc. 3.875%, 09/01/2031(a)			210		167,898
4.00%, 07/15/2028(a)			135		116,529
4.125%, 07/01/2030(a)			111		90,893
5.50%, 07/01/2029(a)			24		22,132
Summer BC Holdco B SARL 5.75%, 10/31/2026(a)	EUR		100		85,325
Summer BidCo BV 9.00% (9.00% Cash or 9.75% PIK), 11/15/2025(a)(f)			150		109,369
TEGNA, Inc. 5.00%, 09/15/2029	U.S.$		61		58,239
Univision Communications, Inc. 4.50%, 05/01/2029(a)			71		59,898
7.375%, 06/30/2030(a)			150		146,062
Urban One, Inc. 7.375%, 02/01/2028(a)			54		47,262
Virgin Media Finance PLC 5.00%, 07/15/2030(a)			200		160,233

18    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Virgin Media Vendor Financing Notes IV DAC 5.00%, 07/15/2028(a)	U.S.$		200	$	171,265
VZ Vendor Financing II BV 2.875%, 01/15/2029(a)	EUR		100		72,868
Ziggo Bond Co. BV 5.125%, 02/28/2030(a)	U.S.$		200		158,393
					6,382,400
Communications - Telecommunications – 3.6%
Altice France SA/France 3.375%, 01/15/2028(a)	EUR		100		75,848
5.50%, 01/15/2028(a)	U.S.$		200		159,812
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(a)			404		379,760
Consolidated Communications, Inc. 6.50%, 10/01/2028(a)			309		253,858
Embarq Corp. 7.995%, 06/01/2036			123		49,776
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			43		35,444
8.75%, 05/15/2030(a)			140		142,936
Hughes Satellite Systems Corp. 6.625%, 08/01/2026			122		114,935
Intelsat Jackson Holdings SA
5.50%, 08/01/2023(b)(c)(e)			158		– 0	–
8.50%, 10/15/2024(b)(c)(e)(g)			47		– 0	–
Kaixo Bondco Telecom SA 5.125%, 09/30/2029(a)	EUR		100		79,740
Level 3 Financing, Inc. 3.75%, 07/15/2029(a)	U.S.$		180		137,176
4.25%, 07/01/2028(a)			134		110,433
Lorca Telecom Bondco SA 4.00%, 09/18/2027(a)	EUR		142		123,517
Nexstar Media, Inc. 5.625%, 07/15/2027(a)	U.S.$		76		71,544
Telecom Italia Capital SA 6.375%, 11/15/2033			90		70,201
7.20%, 07/18/2036			175		137,276
United Group BV 4.00%, 11/15/2027(a)	EUR		394		283,860
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(a)	U.S.$		200		163,624
Zayo Group Holdings, Inc. 4.00%, 03/01/2027(a)			108		83,413
6.125%, 03/01/2028(a)			7		4,654
					2,477,807

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 6.1%
Adient Global Holdings Ltd. 4.875%, 08/15/2026(a)	U.S.$		200	$	178,953
American Axle & Manufacturing, Inc. 5.00%, 10/01/2029			161		130,932
Clarios Global LP/Clarios US Finance Co. 8.50%, 05/15/2027(a)			59		58,020
Dana, Inc. 4.25%, 09/01/2030			20		15,980
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(a)			338		296,153
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(b)(c)(e)(g)			32		– 0	–
(First Lien) 11.00%, 10/31/2024(b)(c)(e)(g)			13		– 0	–
Faurecia SE 3.75%, 06/15/2028(a)	EUR		100		83,282
Ford Motor Co. 3.25%, 02/12/2032	U.S.$		162		121,651
6.10%, 08/19/2032			539		493,851
Ford Motor Credit Co. LLC 2.70%, 08/10/2026			200		173,230
4.00%, 11/13/2030			200		162,133
4.95%, 05/28/2027			200		183,229
5.113%, 05/03/2029			200		178,684
Goodyear Tire & Rubber Co. (The) 5.00%, 07/15/2029			303		262,978
IHO Verwaltungs GmbH 3.75% (3.75% Cash or 4.50% PIK), 09/15/2026(a)(f)	EUR		100		82,148
6.00% (6.00% Cash or 6.75% PIK), 05/15/2027(a)(f)	U.S.$		200		171,872
Jaguar Land Rover Automotive PLC 4.50%, 01/15/2026(a)	EUR		110		92,073
4.50%, 10/01/2027(a)	U.S.$		200		141,829
5.875%, 11/15/2024(a)	EUR		100		93,582
6.875%, 11/15/2026(a)			100		84,884
Mclaren Finance PLC 7.50%, 08/01/2026(a)	U.S.$		200		159,689
PM General Purchaser LLC 9.50%, 10/01/2028(a)			90		77,283
Real Hero Merger Sub 2, Inc. 6.25%, 02/01/2029(a)			130		94,109
Renault SA 2.375%, 05/25/2026(a)	EUR		100		87,717

20    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Schaeffler AG 3.375%, 10/12/2028(a)	EUR		200	$	167,341
Tenneco, Inc. 5.00%, 07/15/2026	U.S.$		25		24,903
7.875%, 01/15/2029(a)			169		167,920
Titan International, Inc. 7.00%, 04/30/2028			60		55,894
ZF Europe Finance BV 3.00%, 10/23/2029(a)	EUR		200		153,743
ZF Finance GmbH 2.25%, 05/03/2028(a)			100		77,007
2.75%, 05/25/2027			100		82,382
					4,153,452
Consumer Cyclical - Entertainment – 3.6%
Boyne USA, Inc. 4.75%, 05/15/2029(a)	U.S.$		26		22,748
Carnival Corp. 4.00%, 08/01/2028(a)			220		176,962
5.75%, 03/01/2027(a)			195		135,086
9.875%, 08/01/2027(a)			78		72,735
10.50%, 02/01/2026(a)			260		254,215
Cedar Fair LP 5.25%, 07/15/2029			15		13,197
Cedar Fair LP/Canada’s Wonderland Co.,/Magnum Management Corp./Millennium Op 5.375%, 04/15/2027			64		60,176
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a)			192		190,694
Cinemark USA, Inc. 5.25%, 07/15/2028(a)			151		115,883
Lindblad Expeditions LLC 6.75%, 02/15/2027(a)			41		36,728
Mattel, Inc. 3.375%, 04/01/2026(a)			78		71,438
5.875%, 12/15/2027(a)			66		64,164
NCL Corp., Ltd. 3.625%, 12/15/2024(a)			79		68,979
5.875%, 03/15/2026(a)			24		19,653
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(a)			91		71,294
5.50%, 08/31/2026(a)			49		40,062
5.50%, 04/01/2028(a)			173		133,210
9.25%, 01/15/2029(a)			82		83,230
11.50%, 06/01/2025(a)			74		79,696

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SeaWorld Parks & Entertainment, Inc. 5.25%, 08/15/2029(a)	U.S.$		121	$	105,137
8.75%, 05/01/2025(a)			33		33,850
Six Flags Entertainment Corp. 4.875%, 07/31/2024(a)			117		113,260
Vail Resorts, Inc. 6.25%, 05/15/2025(a)			60		59,701
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			16		12,788
7.00%, 02/15/2029(a)			79		62,905
13.00%, 05/15/2025(a)			148		159,060
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			29		22,623
VOC Escrow Ltd. 5.00%, 02/15/2028(a)			241		200,805
					2,480,279
Consumer Cyclical - Other – 4.3%
Adams Homes, Inc. 7.50%, 02/15/2025(a)			58		46,899
Beazer Homes USA, Inc. 6.75%, 03/15/2025			28		26,248
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(a)			151		131,822
Builders FirstSource, Inc. 6.375%, 06/15/2032(a)			115		105,934
Caesars Entertainment, Inc. 6.25%, 07/01/2025(a)			78		76,149
Churchill Downs, Inc. 4.75%, 01/15/2028(a)			49		43,406
Cirsa Finance International SARL 4.75%, 05/22/2025(a)	EUR		100		91,907
CP Atlas Buyer, Inc. 7.00%, 12/01/2028(a)	U.S.$		26		18,742
Empire Communities Corp. 7.00%, 12/15/2025(a)			61		52,874
Everi Holdings, Inc. 5.00%, 07/15/2029(a)			21		18,297
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			223		186,067
Forestar Group, Inc. 3.85%, 05/15/2026(a)			41		35,230
Hilton Domestic Operating Co., Inc. 3.625%, 02/15/2032(a)			100		79,614
4.875%, 01/15/2030			17		15,284
5.75%, 05/01/2028(a)			11		10,616

22    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)	U.S.$		163	$	133,326
5.00%, 06/01/2029(a)			49		42,168
Installed Building Products, Inc. 5.75%, 02/01/2028(a)			40		35,424
International Game Technology PLC 4.125%, 04/15/2026(a)			200		186,189
Mattamy Group Corp. 4.625%, 03/01/2030(a)			155		122,466
MGM Resorts International 4.75%, 10/15/2028			138		119,823
6.00%, 03/15/2023			33		33,027
6.75%, 05/01/2025			90		88,813
NH Hotel Group SA 4.00%, 07/02/2026(a)	EUR		139		120,615
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. 5.625%, 09/01/2029(a)	U.S.$		20		14,885
5.875%, 09/01/2031(a)			46		32,646
Scientific Games International, Inc. 7.00%, 05/15/2028(a)			9		8,709
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 04/01/2029(a)			20		16,297
Standard Industries, Inc./NJ 3.375%, 01/15/2031(a)			395		296,045
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(a)			16		14,986
Taylor Morrison Communities, Inc. 5.125%, 08/01/2030(a)			61		50,715
5.875%, 06/15/2027(a)			17		15,986
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc. 5.625%, 03/01/2024(a)			17		17,266
Travel + Leisure Co. 4.50%, 12/01/2029(a)			52		42,333
4.625%, 03/01/2030(a)			12		9,743
6.625%, 07/31/2026(a)			289		281,993
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a)			240		209,028
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/2029(a)			86		68,546
7.75%, 04/15/2025(a)			48		46,786
					2,946,904

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Restaurants – 0.8%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(a)	U.S.$		146	$	122,275
4.00%, 10/15/2030(a)			165		134,647
5.75%, 04/15/2025(a)			66		65,992
IRB Holding Corp. 7.00%, 06/15/2025(a)			5		5,002
Papa John’s International, Inc. 3.875%, 09/15/2029(a)			22		17,911
Stonegate Pub Co. Financing 2019 PLC 8.25%, 07/31/2025(a)	GBP		113		117,251
Yum! Brands, Inc. 4.625%, 01/31/2032	U.S.$		96		81,974
					545,052
Consumer Cyclical - Retailers – 3.5%
Arko Corp. 5.125%, 11/15/2029(a)			99		78,444
Asbury Automotive Group, Inc. 4.625%, 11/15/2029(a)			99		81,410
5.00%, 02/15/2032(a)			26		20,962
Bath & Body Works, Inc. 6.625%, 10/01/2030(a)			185		165,758
6.75%, 07/01/2036			48		39,616
6.875%, 11/01/2035			128		108,845
7.50%, 06/15/2029			17		16,124
BCPE Ulysses Intermediate, Inc. 7.75% (7.75% Cash or 8.50% PIK), 04/01/2027(a)(f)			28		18,534
Carvana Co. 5.50%, 04/15/2027(a)			39		18,868
5.875%, 10/01/2028(a)			114		52,473
Dufry One BV 2.50%, 10/15/2024(a)	EUR		103		97,336
FirstCash, Inc. 5.625%, 01/01/2030(a)	U.S.$		47		42,060
Foundation Building Materials, Inc. 6.00%, 03/01/2029(a)			29		20,290
Gap, Inc. (The) 3.625%, 10/01/2029(a)			243		170,719
3.875%, 10/01/2031(a)			115		79,351
Group 1 Automotive, Inc. 4.00%, 08/15/2028(a)			13		10,702
Kontoor Brands, Inc. 4.125%, 11/15/2029(a)			72		57,941
Levi Strauss & Co. 3.50%, 03/01/2031(a)			71		56,841

24    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)	U.S.$		221	$	157,212
7.875%, 05/01/2029(a)			58		32,491
Murphy Oil USA, Inc. 5.625%, 05/01/2027			2		2,238
NMG Holding Co., Inc./Neiman Marcus Group LLC 7.125%, 04/01/2026(a)			144		136,954
Party City Holdings, Inc. 8.75%, 02/15/2026(a)			20		12,654
Rite Aid Corp. 7.50%, 07/01/2025(a)			17		11,978
8.00%, 11/15/2026(a)			263		170,832
Sonic Automotive, Inc. 4.625%, 11/15/2029(a)			115		90,513
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(a)			312		252,711
SRS Distribution, Inc. 6.125%, 07/01/2029(a)			19		15,608
Staples, Inc. 7.50%, 04/15/2026(a)			206		179,163
10.75%, 04/15/2027(a)			61		44,289
TPro Acquisition Corp. 11.00%, 10/15/2024(a)			33		32,347
White Cap Buyer LLC 6.875%, 10/15/2028(a)			19		16,147
William Carter Co. (The) 5.625%, 03/15/2027(a)			119		114,406
					2,405,817
Consumer Non-Cyclical – 8.9%
AdaptHealth LLC 4.625%, 08/01/2029(a)			52		44,291
AHP Health Partners, Inc. 5.75%, 07/15/2029(a)			10		7,750
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(a)			346		286,270
4.875%, 02/15/2030(a)			100		88,730
Bausch Health Americas, Inc. 8.50%, 01/31/2027(a)			59		26,539
Bausch Health Cos., Inc. 4.875%, 06/01/2028(a)			196		120,278
5.00%, 02/15/2029(a)			20		7,813
6.25%, 02/15/2029(a)			31		12,090

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CAB SELAS 3.375%, 02/01/2028(a)	EUR		322	$	248,392
Catalent Pharma Solutions, Inc. 3.125%, 02/15/2029(a)	U.S.$		14		11,462
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(a)			78		74,096
Chobani LLC/Chobani Finance Corp., Inc. 4.625%, 11/15/2028(a)			24		20,924
Chrome Bidco SASU 3.50%, 05/31/2028(a)	EUR		200		160,001
CHS/Community Health Systems, Inc. 4.75%, 02/15/2031(a)	U.S.$		20		13,421
5.25%, 05/15/2030(a)			498		344,938
5.625%, 03/15/2027(a)			17		13,555
6.00%, 01/15/2029(a)			14		10,433
6.875%, 04/01/2028(a)			138		53,616
6.875%, 04/15/2029(a)			126		51,937
8.00%, 03/15/2026(a)			44		37,937
Darling Ingredients, Inc. 6.00%, 06/15/2030(a)			60		57,748
DaVita, Inc. 3.75%, 02/15/2031(a)			78		56,598
4.625%, 06/01/2030(a)			212		165,293
Elanco Animal Health, Inc. 6.40%, 08/28/2028			120		108,203
Embecta Corp. 5.00%, 02/15/2030(a)			161		138,198
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)			122		73,303
Garden Spinco Corp. 8.625%, 07/20/2030(a)			82		84,832
Grifols Escrow Issuer SA 3.875%, 10/15/2028(a)	EUR		100		75,309
Gruenenthal GmbH 3.625%, 11/15/2026(a)			100		88,081
4.125%, 05/15/2028(a)			239		195,550
Horizon Therapeutics USA, Inc. 5.50%, 08/01/2027(a)	U.S.$		200		192,377
IQVIA, Inc. 2.25%, 03/15/2029(a)	EUR		100		80,451
Kronos Acquisition Holdings, Inc./KIK Custom Products, Inc. 7.00%, 12/31/2027(a)	U.S.$		143		120,567
Lamb Weston Holdings, Inc. 4.125%, 01/31/2030(a)			99		86,559
4.875%, 05/15/2028(a)			17		15,919

26    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Legacy LifePoint Health LLC 4.375%, 02/15/2027(a)	U.S.$		107	$	84,482
6.75%, 04/15/2025(a)			20		17,711
LifePoint Health, Inc. 5.375%, 01/15/2029(a)			424		269,484
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 10.00%, 06/15/2029(a)			2		1,110
Medline Borrower LP
3.875%, 04/01/2029(a)			164		133,955
5.25%, 10/01/2029(a)			288		224,491
ModivCare, Inc. 5.875%, 11/15/2025(a)			24		22,929
Nidda Healthcare Holding GmbH 7.50%, 08/21/2026	EUR		270		246,751
Organon & Co./Organon Foreign Debt Co-Issuer BV 2.875%, 04/30/2028(a)			100		83,361
Paysafe Finance PLC/Paysafe Holdings US Corp. 4.00%, 06/15/2029(a)	U.S.$		67		48,156
Performance Food Group, Inc. 4.25%, 08/01/2029(a)			75		63,788
Picard Groupe SAS 3.875%, 07/01/2026(a)	EUR		100		85,211
Post Holdings, Inc. 4.50%, 09/15/2031(a)	U.S.$		125		103,373
4.625%, 04/15/2030(a)			58		49,029
5.50%, 12/15/2029(a)			100		90,031
5.75%, 03/01/2027(a)			14		13,562
Radiology Partners, Inc. 9.25%, 02/01/2028(a)			6		3,194
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			24		19,169
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			231		173,797
Spectrum Brands, Inc. 3.875%, 03/15/2031(a)			193		142,269
5.75%, 07/15/2025			3		2,959
Tenet Healthcare Corp. 4.375%, 01/15/2030(a)			153		128,612
6.125%, 10/01/2028(a)			256		221,956
6.125%, 06/15/2030(a)			149		138,548
6.25%, 02/01/2027(a)			51		48,999
Triton Water Holdings, Inc. 6.25%, 04/01/2029(a)			222		168,621

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)	U.S.$		342	$	309,663
US Renal Care, Inc. 10.625%, 07/15/2027(a)			80		31,923
					6,100,595
Energy – 4.7%
Berry Petroleum Co. LLC 7.00%, 02/15/2026(a)			63		57,314
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			178		176,181
Callon Petroleum Co. 8.25%, 07/15/2025			8		7,998
Citgo Holding, Inc. 9.25%, 08/01/2024(a)			72		72,100
CITGO Petroleum Corp. 6.375%, 06/15/2026(a)			16		15,749
7.00%, 06/15/2025(a)			50		49,285
Civitas Resources, Inc. 5.00%, 10/15/2026(a)			58		53,468
CNX Resources Corp. 6.00%, 01/15/2029(a)			37		34,569
Comstock Resources, Inc. 6.75%, 03/01/2029(a)			58		55,539
Crescent Energy Finance LLC 7.25%, 05/01/2026(a)			89		82,535
Diamond Foreign Asset Co./Diamond Finance LLC 9.00% (9.00% Cash or 13.00% PIK), 04/22/2027(a)(f)			4		3,960
9.00% (9.00% Cash or 13.00% PIK), 04/22/2027(f)			4		3,432
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(a)			86		81,356
EnLink Midstream LLC 5.625%, 01/15/2028(a)			37		35,448
EnLink Midstream Partners LP 4.15%, 06/01/2025			48		45,171
5.60%, 04/01/2044			14		11,015
Series C 6.00%, 12/15/2170(j)			102		78,348
EQM Midstream Partners LP 4.50%, 01/15/2029(a)			62		52,704
4.75%, 01/15/2031(a)			114		95,240
5.50%, 07/15/2028			18		16,110

28    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

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	$	43,990
6.25%, 05/15/2026			21		19,667
6.50%, 10/01/2025			24		23,054
7.75%, 02/01/2028			62		59,110
8.00%, 01/15/2027			104		100,969
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			96		87,390
7.00%, 08/01/2027			21		20,140
Gulfport Energy Corp. 6.00%, 10/15/2024(c)			128		160
6.375%, 05/15/2025(c)			24		30
6.375%, 01/15/2026(c)			30		37
6.625%, 05/01/2023(c)			4		5
8.00%, 05/17/2026(a)			29		28,801
Hess Midstream Operations LP 4.25%, 02/15/2030(a)			17		14,533
Hilcorp Energy I LP/Hilcorp Finance Co. 5.75%, 02/01/2029(a)			5		4,576
ITT Holdings LLC 6.50%, 08/01/2029(a)			227		182,723
Moss Creek Resources Holdings, Inc. 10.50%, 05/15/2027(a)			48		46,271
Murphy Oil Corp. 6.125%, 12/01/2042			21		16,681
6.375%, 07/15/2028			55		53,814
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			27		26,037
7.50%, 01/15/2028(a)			37		34,142
Nabors Industries, Inc. 7.375%, 05/15/2027(a)			121		119,221
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			77		75,610
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			64		57,943
Occidental Petroleum Corp. 5.50%, 12/01/2025			28		28,097
5.55%, 03/15/2026			272		275,872
6.125%, 01/01/2031			46		46,175
6.20%, 03/15/2040			69		66,369
8.50%, 07/15/2027			42		45,990
8.875%, 07/15/2030			42		48,020
PBF Holding Co. LLC/PBF Finance Corp. 6.00%, 02/15/2028			9		8,173

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
PDC Energy, Inc. 5.75%, 05/15/2026	U.S.$		51		$	48,945
Southwestern Energy Co. 5.70%, 01/23/2025			32			31,535
8.375%, 09/15/2028			10			10,379
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			150			144,037
Sunnova Energy Corp. 5.875%, 09/01/2026(a)			40			35,275
Sunoco LP/Sunoco Finance Corp. 5.875%, 03/15/2028			16			15,235
Talos Production, Inc. 12.00%, 01/15/2026			23			24,393
Transocean Guardian Ltd. 5.875%, 01/15/2024(a)			121			117,810
Transocean Phoenix 2 Ltd. 7.75%, 10/15/2024(a)			20			20,280
Transocean Poseidon Ltd. 6.875%, 02/01/2027(a)			99			94,619
Transocean, Inc. 6.80%, 03/15/2038			0	**		102
Venture Global Calcasieu Pass LLC 4.125%, 08/15/2031(a)			69			58,990
Weatherford International Ltd. 11.00%, 12/01/2024(a)			2			2,054
						3,164,776
Other Industrial – 0.4%
American Builders & Contractors Supply Co., Inc. 4.00%, 01/15/2028(a)			35			30,940
Belden, Inc. 3.375%, 07/15/2031(a)	EUR		153			112,740
3.875%, 03/15/2028(a)			100			87,578
H&E Equipment Services, Inc. 3.875%, 12/15/2028(a)	U.S.$		33			27,909
Interface, Inc. 5.50%, 12/01/2028(a)			11			8,798
Univar Solutions USA, Inc./Washington 5.125%, 12/01/2027(a)			17			15,734
						283,699
Services – 4.6%
ADT Security Corp. (The) 4.875%, 07/15/2032(a)			10			8,506

30    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(a)	U.S.$		182	$	174,219
9.75%, 07/15/2027(a)			51		44,345
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL 4.625%, 06/01/2028(a)			200		163,774
4.875%, 06/01/2028(a)	GBP		100		85,922
ANGI Group LLC 3.875%, 08/15/2028(a)	U.S.$		353		257,313
Aptim Corp. 7.75%, 06/15/2025(a)			85		58,396
APX Group, Inc. 5.75%, 07/15/2029(a)			253		199,637
6.75%, 02/15/2027(a)			128		125,106
Block, Inc. 2.75%, 06/01/2026			216		193,300
3.50%, 06/01/2031			11		8,856
Elior Group SA 3.75%, 07/15/2026(a)	EUR		100		70,156
Garda World Security Corp. 4.625%, 02/15/2027(a)	U.S.$		53		47,158
9.50%, 11/01/2027(a)			71		64,334
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			134		96,500
Monitronics International, Inc. 0.00%, 04/01/2020(b)(c)(d)(e)			14		– 0	–
MPH Acquisition Holdings LLC 5.50%, 09/01/2028(a)			193		167,455
5.75%, 11/01/2028(a)			312		241,075
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)			105		91,192
5.75%, 04/15/2026(a)			130		127,089
6.25%, 01/15/2028(a)			102		94,461
Q-Park Holding I BV 2.00%, 03/01/2027(a)	EUR		236		184,825
Ritchie Bros Auctioneers, Inc. 5.375%, 01/15/2025(a)	U.S.$		12		11,828
Sabre GLBL, Inc. 7.375%, 09/01/2025(a)			101		94,943
9.25%, 04/15/2025(a)			65		63,371
Service Corp. International/US 3.375%, 08/15/2030			22		17,589
TripAdvisor, Inc. 7.00%, 07/15/2025(a)			27		26,773

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Verisure Holding AB 3.25%, 02/15/2027(a)	EUR		100	$	83,979
3.875%, 07/15/2026(a)			139		122,639
Verscend Escrow Corp. 9.75%, 08/15/2026(a)	U.S.$		137		137,383
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			17		15,873
ZipRecruiter, Inc. 5.00%, 01/15/2030(a)			85		69,625
					3,147,622
Technology – 3.6%
Ahead DB Holdings LLC 6.625%, 05/01/2028(a)			37		30,075
AthenaHealth Group, Inc. 6.50%, 02/15/2030(a)			42		32,771
Avaya, Inc. 6.125%, 09/15/2028(a)			139		58,809
Boxer Parent Co., Inc. 7.125%, 10/02/2025(a)			136		133,873
Centurion Bidco SpA 5.875%, 09/30/2026(a)	EUR		141		123,133
Clarivate Science Holdings Corp. 4.875%, 07/01/2029(a)	U.S.$		200		166,758
CommScope, Inc. 4.75%, 09/01/2029(a)			28		23,705
6.00%, 03/01/2026(a)			56		54,154
8.25%, 03/01/2027(a)			29		25,803
Elastic NV 4.125%, 07/15/2029(a)			17		14,221
Entegris Escrow Corp. 5.95%, 06/15/2030(a)			169		154,431
GoTo Group, Inc. 5.50%, 09/01/2027(a)			117		68,177
Imola Merger Corp. 4.75%, 05/15/2029(a)			40		34,687
NCR Corp. 5.00%, 10/01/2028(a)			86		72,900
5.125%, 04/15/2029(a)			101		84,683
5.75%, 09/01/2027(a)			27		26,046
NortonLifeLock, Inc. 6.75%, 09/30/2027(a)			103		101,608
7.125%, 09/30/2030(a)			103		101,657
Pitney Bowes, Inc. 6.875%, 03/15/2027(a)			40		25,654
Playtika Holding Corp. 4.25%, 03/15/2029(a)			50		41,640

32    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Presidio Holdings, Inc. 8.25%, 02/01/2028(a)	U.S.$		193	$	171,952
Rackspace Technology Global, Inc. 3.50%, 02/15/2028(a)			226		149,525
5.375%, 12/01/2028(a)			109		45,783
Science Applications International Corp. 4.875%, 04/01/2028(a)			15		13,702
Seagate HDD Cayman 4.091%, 06/01/2029			117		93,700
Sensata Technologies BV 4.00%, 04/15/2029(a)			200		168,320
Sensata Technologies, Inc. 3.75%, 02/15/2031(a)			180		143,298
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			305		256,458
Virtusa Corp. 7.125%, 12/15/2028(a)			37		26,625
Xerox Corp. 4.625%, 03/15/2023			4		3,979
					2,448,127
Transportation - Airlines – 0.8%
Air Canada 3.875%, 08/15/2026(a)			25		22,112
Allegiant Travel Co. 7.25%, 08/15/2027(a)			72		67,852
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)			183		174,215
5.75%, 04/20/2029(a)			161		146,275
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			119		109,841
United Airlines, Inc. 4.625%, 04/15/2029(a)			22		18,887
					539,182
Transportation - Services – 2.0%
AerCap Global Aviation Trust 6.50%, 06/15/2045(a)			200		182,635
Atlantia SpA 1.875%, 02/12/2028(a)	EUR		253		197,824
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 4.75%, 04/01/2028(a)	U.S.$		89		78,138
5.375%, 03/01/2029(a)			157		135,842
5.75%, 07/15/2027(a)			22		20,130

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BCP V Modular Services Finance PLC 6.75%, 11/30/2029	EUR		113	$	77,346
EC Finance PLC 3.00%, 10/15/2026			111		96,686
Hertz Corp. (The) 4.625%, 12/01/2026(a)	U.S.$		183		155,930
5.00%, 12/01/2029(a)			76		60,485
Kapla Holding SAS 3.375%, 12/15/2026(a)	EUR		149		120,166
Loxam SAS 4.50%, 02/15/2027			113		99,018
PROG Holdings, Inc. 6.00%, 11/15/2029(a)	U.S.$		150		121,911
XPO Logistics, Inc. 6.25%, 05/01/2025(a)			11		11,122
					1,357,233
					45,491,325
Financial Institutions – 5.5%
Banking – 0.7%
Ally Financial, Inc. Series B 4.70%, 05/15/2026(j)			164		118,800
Series C 4.70%, 05/15/2028(j)			28		18,830
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(a)			103		90,583
7.00%, 01/15/2026(a)			22		18,963
Credit Suisse Group AG 5.25%, 02/11/2171(a)(j)			200		142,189
Discover Financial Services Series D 6.125%, 06/23/2025(j)			93		90,127
Societe Generale SA 8.00%, 09/29/2025(a)(j)			3		2,958
					482,450
Brokerage – 0.5%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			87		86,874
AG Issuer LLC 6.25%, 03/01/2028(a)			127		119,205
Hightower Holding LLC 6.75%, 04/15/2029(a)			11		9,011
LPL Holdings, Inc. 4.00%, 03/15/2029(a)			12		10,505
NFP Corp. 7.50%, 10/01/2030(a)			132		126,620
					352,215

34    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 1.8%
Air Lease Corp. Series B 4.65%, 06/15/2026(j)	U.S.$		50	$	41,485
Aircastle Ltd. 5.25%, 06/15/2026(a)(j)			31		23,092
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			98		83,280
CNG Holdings, Inc. 12.50%, 06/15/2024(a)			32		26,880
Compass Group Diversified Holdings LLC 5.25%, 04/15/2029(a)			93		79,920
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			214		126,314
Enova International, Inc. 8.50%, 09/01/2024(a)			13		12,206
8.50%, 09/15/2025(a)			131		118,933
goeasy Ltd. 4.375%, 05/01/2026(a)			23		19,939
5.375%, 12/01/2024(a)			63		59,227
Jefferies Finance LLC/JFIN Co-Issuer Corp. 5.00%, 08/15/2028(a)			200		157,182
Navient Corp. 5.50%, 01/25/2023			87		87,010
5.625%, 08/01/2033			151		106,652
6.125%, 03/25/2024			115		113,086
7.25%, 09/25/2023			35		35,040
SLM Corp. 3.125%, 11/02/2026			78		68,403
4.20%, 10/29/2025			57		53,030
					1,211,679
Insurance – 0.1%
Acrisure LLC/Acrisure Finance, Inc. 6.00%, 08/01/2029(a)			19		15,728
10.125%, 08/01/2026(a)			40		39,929
USI, Inc./NY 6.875%, 05/01/2025(a)			7		6,828
					62,485
Other Finance – 0.6%
Armor Holdco, Inc. 8.50%, 11/15/2029(a)			151		112,769
Coinbase Global, Inc. 3.375%, 10/01/2028(a)			54		35,750
3.625%, 10/01/2031(a)			78		46,926
Intrum AB 3.50%, 07/15/2026(a)	EUR		100		80,585

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Motion Finco SARL 7.00%, 05/15/2025(a)	EUR		132	$	127,894
					403,924
REITs – 1.8%
ADLER Group SA 2.75%, 11/13/2026(a)			100		41,998
Aedas Homes Opco SLU 4.00%, 08/15/2026			111		94,029
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(a)	U.S.$		202		172,302
5.75%, 05/15/2026(a)			150		139,524
Diversified Healthcare Trust 4.75%, 02/15/2028			189		128,866
9.75%, 06/15/2025			46		43,452
Iron Mountain, Inc. 4.50%, 02/15/2031(a)			198		161,513
4.875%, 09/15/2029(a)			69		59,464
5.25%, 07/15/2030(a)			25		21,682
SBA Communications Corp. 3.125%, 02/01/2029			46		37,273
Service Properties Trust 4.50%, 06/15/2023			25		24,638
7.50%, 09/15/2025			247		240,770
Vivion Investments SARL 3.00%, 08/08/2024(a)	EUR		100		84,819
					1,250,330
					3,763,083
Utility – 0.7%
Electric – 0.6%
Calpine Corp. 4.50%, 02/15/2028(a)	U.S.$		64		57,610
5.125%, 03/15/2028(a)			133		118,329
Vistra Corp. 7.00%, 12/15/2026(a)(j)			28		24,884
8.00%, 10/15/2026(a)(j)			29		27,544
Vistra Operations Co. LLC 4.375%, 05/01/2029(a)			103		88,276
5.50%, 09/01/2026(a)			78		74,821
					391,464
Natural Gas – 0.0%
AmeriGas Partners LP / AmeriGas Finance Corp. 5.875%, 08/20/2026			11		10,336

36    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

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.$		89	$	85,151
					486,951
Total Corporates - Non-Investment Grade (cost $57,283,840)					49,741,359
CORPORATES - INVESTMENT GRADE – 11.7%
Industrial – 7.1%
Basic – 0.9%
ArcelorMittal SA 7.00%, 10/15/2039	U.S.$		25		23,595
Arconic Corp. 6.00%, 05/15/2025(a)			20		19,791
Celanese US Holdings LLC 5.90%, 07/05/2024			43		42,257
6.05%, 03/15/2025			43		41,827
CF Industries, Inc. 5.15%, 03/15/2034			23		20,773
Freeport-McMoRan, Inc. 5.25%, 09/01/2029			104		96,730
5.40%, 11/14/2034			99		88,460
INEOS Finance PLC 2.875%, 05/01/2026(a)	EUR		358		313,954
					647,387
Capital Goods – 0.1%
General Electric Co. Series D 6.623% (LIBOR 3 Month + 3.33%), 12/15/2022(h)(j)	U.S.$		40		38,804
Howmet Aerospace, Inc. 5.90%, 02/01/2027			4		3,968
					42,772
Communications - Media – 1.3%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(a)			314		282,605
Discovery Communications LLC 4.125%, 05/15/2029			12		10,138
Netflix, Inc. 3.625%, 05/15/2027	EUR		124		119,206
4.375%, 11/15/2026	U.S.$		25		23,845
4.625%, 05/15/2029	EUR		113		108,884
4.875%, 04/15/2028	U.S.$		286		271,852

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Warnermedia Holdings, Inc. 3.755%, 03/15/2027(a)	U.S.$		47	$	41,829
4.279%, 03/15/2032(a)			65		52,531
					910,890
Communications - Telecommunications – 0.8%
Hughes Satellite Systems Corp. 5.25%, 08/01/2026			21		20,043
Sprint Capital Corp. 8.75%, 03/15/2032			357		418,825
Sprint Communications, Inc. 6.00%, 11/15/2022			38		38,006
Sprint Corp. 7.875%, 09/15/2023			73		74,189
					551,063
Consumer Cyclical - Other – 0.5%
MDC Holdings, Inc. 6.00%, 01/15/2043			87		66,094
Resorts World Las Vegas LLC / RWLV Capital, Inc. 4.625%, 04/16/2029(a)			300		207,972
Toll Brothers Finance Corp. 4.875%, 03/15/2027			93		85,808
					359,874
Consumer Cyclical - Retailers – 0.3%
Macy’s Retail Holdings LLC 4.50%, 12/15/2034			225		154,816
5.875%, 03/15/2030(a)			45		37,992
6.125%, 03/15/2032(a)			37		30,760
					223,568
Consumer Non-Cyclical – 1.4%
BAT Capital Corp. 7.75%, 10/19/2032			70		71,550
BAT International Finance PLC 4.448%, 03/16/2028			116		102,417
Charles River Laboratories International, Inc. 3.75%, 03/15/2029(a)			42		36,351
4.00%, 03/15/2031(a)			151		127,071
HCA, Inc. 5.375%, 09/01/2026			33		32,027
5.625%, 09/01/2028			35		33,667
Newell Brands, Inc. 4.45%, 04/01/2026			190		176,710
4.875%, 06/01/2025			12		11,578
5.75%, 04/01/2046			27		20,763

38    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.375%, 09/15/2027	U.S.$		35	$	34,271
6.625%, 09/15/2029			35		34,204
Pilgrim’s Pride Corp. 3.50%, 03/01/2032(a)			148		113,597
5.875%, 09/30/2027(a)			136		133,039
					927,245
Energy – 1.1%
Antero Resources Corp. 7.625%, 02/01/2029(a)			3		3,060
Apache Corp. 5.10%, 09/01/2040			326		263,942
Cenovus Energy, Inc. 5.40%, 06/15/2047			2		1,706
6.75%, 11/15/2039			1		1,438
Continental Resources, Inc./OK 4.90%, 06/01/2044			16		11,398
5.75%, 01/15/2031(a)			28		25,477
EQT Corp. 3.90%, 10/01/2027			118		106,054
6.125%, 02/01/2025			70		70,062
Hess Corp. 7.30%, 08/15/2031			36		38,200
Marathon Oil Corp. 6.80%, 03/15/2032			34		34,639
Western Midstream Operating LP 3.95%, 06/01/2025			26		24,704
4.30%, 02/01/2030			49		43,072
4.65%, 07/01/2026			41		38,760
4.75%, 08/15/2028			12		11,093
5.45%, 04/01/2044			26		21,048
5.50%, 02/01/2050			84		65,980
					760,633
Services – 0.0%
Expedia Group, Inc. 6.25%, 05/01/2025(a)			5		4,997
Technology – 0.3%
Broadcom, Inc. 4.00%, 04/15/2029(a)			16		14,042
4.15%, 04/15/2032(a)			63		52,852
HP, Inc. 5.50%, 01/15/2033			91		81,016
MSCI, Inc. 4.00%, 11/15/2029(a)			25		21,707
Western Digital Corp. 3.10%, 02/01/2032			14		9,709
					179,326

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Airlines – 0.4%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a)	U.S.$		45	$	41,727
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. 6.50%, 06/20/2027(a)			222		219,797
					261,524
					4,869,279
Financial Institutions – 4.3%
Banking – 2.0%
AIB Group PLC 7.583%, 10/14/2026(a)			200		198,978
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			200		193,506
Barclays PLC 8.00%, 03/15/2029(j)			200		179,750
BNP Paribas SA 4.625%, 08/25/2171(a)(j)			200		138,893
Citigroup, Inc. Series T 6.25%, 08/15/2026(j)			30		28,993
Series W 4.00%, 12/10/2025(j)			18		15,174
Series Y 4.15%, 11/15/2026(j)			46		36,063
First-Citizens Bank & Trust Co. 3.929%, 06/19/2024			37		36,423
Goldman Sachs Group, Inc. (The) Series P 5.00%, 12/01/2022(j)			126		117,228
HSBC Holdings PLC 4.762%, 03/29/2033			203		161,964
7.336%, 11/03/2026			200		200,403
Lloyds Banking Group PLC 6.00%, 06/07/2171(j)	GBP		8		8,488
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(j)	U.S.$		111		94,226
					1,410,089
Brokerage – 0.1%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(j)			38		37,114

40    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.3%
Aircastle Ltd. 2.85%, 01/26/2028(a)	U.S.$		2	$	1,503
5.25%, 08/11/2025(a)			148		138,486
Aviation Capital Group LLC 1.95%, 01/30/2026(a)			2		1,665
3.50%, 11/01/2027(a)			18		14,665
4.125%, 08/01/2025(a)			16		14,516
4.375%, 01/30/2024(a)			36		34,714
4.875%, 10/01/2025(a)			6		5,504
					211,053
Insurance – 1.1%
ACE Capital Trust II 9.70%, 04/01/2030			20		24,930
Centene Corp. 2.50%, 03/01/2031			639		488,365
2.625%, 08/01/2031			43		32,879
3.00%, 10/15/2030			66		52,993
Liberty Mutual Group, Inc. 7.80%, 03/15/2037(a)			55		60,356
Prudential Financial, Inc. 5.20%, 03/15/2044			20		18,663
5.625%, 06/15/2043			50		49,341
					727,527
REITs – 0.8%
MPT Operating Partnership LP/MPT Finance Corp. 3.50%, 03/15/2031			314		217,079
4.625%, 08/01/2029			21		16,778
5.00%, 10/15/2027			122		104,312
Office Properties Income Trust 3.45%, 10/15/2031			104		63,651
VICI Properties LP/VICI Note Co., Inc. 5.625%, 05/01/2024(a)			93		91,942
5.75%, 02/01/2027(a)			59		55,736
					549,498
					2,935,281
Utility – 0.3%
Electric – 0.3%
Enel Finance International NV 7.50%, 10/14/2032(a)			200		201,025
Total Corporates - Investment Grade (cost $8,950,641)					8,005,585

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
BANK LOANS – 3.5%
Industrial – 3.1%
Capital Goods – 0.3%
ACProducts Holdings, Inc.
7.127% (LIBOR 3 Month + 4.25%), 05/17/2028(k)	U.S.$		74		$	50,980
7.924% (LIBOR 3 Month + 4.25%), 05/17/2028(k)			24			16,822
Apex Tool Group, LLC 8.624% (SOFR 1 Month + 5.25%), 02/08/2029(k)			45			38,548
Chariot Buyer, LLC 7.254% (LIBOR 1 Month + 3.50%), 11/03/2028(k)			20			17,986
Granite US Holdings Corporation 7.688% (LIBOR 3 Month + 4.00%), 09/30/2026(b)(k)			54			52,912
						177,248
Communications - Media – 0.1%
Advantage Sales & Marketing, Inc. 8.284% (LIBOR 3 Month + 4.50%), 10/28/2027(k)			37			32,388
Clear Channel Outdoor Holdings, Inc.
7.254% (LIBOR 1 Month + 3.50%), 08/21/2026(k)			0	**		27
7.915% (LIBOR 3 Month + 3.50%), 08/21/2026(k)			12			10,606
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 6.754% (LIBOR 1 Month + 3.00%), 05/01/2026(k)			18			16,722
Univision Communications, Inc. 6.504% (LIBOR 1 Month + 2.75%), 03/15/2024(k)			10			9,853
						69,596
Communications - Telecommunications – 0.5%
Crown Subsea Communications Holding, Inc. 8.518% (LIBOR 1 Month + 4.75%), 04/27/2027(k)			56			54,778
DIRECTV Financing, LLC 8.754% (LIBOR 1 Month + 5.00%), 08/02/2027(k)			55			51,911
Intrado Corporation (West Corp/Olympus Merger) 8.415% (LIBOR 3 Month + 4.00%), 10/10/2024(k)			25			22,116

42    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Proofpoint, Inc. 9.320% (LIBOR 3 Month + 6.25%), 08/31/2029(k)	U.S.$		120	$	115,200
Zacapa SARL 7.803% (SOFR 3 Month + 4.25%), 03/22/2029(k)			98		93,614
					337,619
Consumer Cyclical - Automotive – 0.1%
Clarios Global LP 7.004% (LIBOR 1 Month + 3.25%), 04/30/2026(k)			42		41,012
Consumer Cyclical - Entertainment – 0.2%
Seaworld Parks & Entertainment, Inc. 6.813% (LIBOR 1 Month + 3.00%), 08/25/2028(k)			116		112,985
Consumer Cyclical - Other – 0.0%
Caesars Resort Collection, LLC 6.504% (LIBOR 1 Month + 2.75%), 12/23/2024(k)			30		29,599
Flutter Entertainment PLC 5.892% (LIBOR 3 Month + 2.25%), 07/21/2026(k)			4		3,985
					33,584
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. 5.865% (LIBOR 1 Month + 2.75%), 02/05/2025(k)			6		5,873
Consumer Cyclical - Retailers – 0.1%
Great Outdoors Group, LLC 7.504% (LIBOR 1 Month + 3.75%), 03/06/2028(k)			17		15,594
Restoration Hardware, Inc. 7.079% (SOFR 1 Month + 3.25%), 10/20/2028(k)			70		65,917
					81,511
Consumer Non-Cyclical – 0.4%
Gainwell Acquisition Corp. 7.674% (LIBOR 3 Month + 4.00%), 10/01/2027(k)			39		37,269
Global Medical Response, Inc. 8.004% (LIBOR 1 Month + 4.25%), 03/14/2025(k)			16		11,945
Kronos Acquisition Holdings, Inc. 6.820% (LIBOR 3 Month + 3.75%), 12/22/2026(k)			39		37,067

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 8.165% (LIBOR 3 Month + 3.75%), 11/16/2025(k)	U.S.$		27	$	24,087
Padagis, LLC 8.491% (LIBOR 3 Month + 4.75%), 07/06/2028(b)(k)			28		23,859
PetSmart, LLC 7.500% (LIBOR 1 Month + 3.75%), 02/11/2028(k)			79		75,873
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 8.924% (LIBOR 3 Month + 5.25%), 12/15/2027(k)			89		79,346
					289,446
Energy – 0.4%
CITGO Petroleum Corporation 9.365% (LIBOR 1 Month + 6.25%), 03/28/2024(k)			34		34,325
GIP II Blue Holding, L.P. 8.174% (LIBOR 3 Month + 4.50%), 09/29/2028(k)			206		203,462
Parkway Generation, LLC 8.500% (LIBOR 1 Month + 4.75%), 02/18/2029(k)			59		58,522
					296,309
Other Industrial – 0.2%
American Tire Distributors, Inc. 10.608% (LIBOR 3 Month + 6.25%), 10/20/2028(k)			82		75,393
Dealer Tire, LLC 8.004% (LIBOR 1 Month + 4.25%), 12/12/2025(k)			19		19,069
FCG Acquisitions, Inc. 10.424% (LIBOR 3 Month + 6.75%), 03/30/2029(b)(k)			30		28,050
Rockwood Service Corporation 8.004% (LIBOR 1 Month + 4.25%), 01/23/2027(k)			3		3,157
					125,669
Services – 0.1%
Amentum Government Services Holdings, LLC
7.674% (LIBOR 3 Month + 4.00%), 01/29/2027(b)(k)			15		14,202
8.170% (LIBOR 3 Month + 4.00%), 01/29/2027(b)(k)			5		4,713

44    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Garda World Security Corporation 7.240% (LIBOR 3 Month + 4.25%), 10/30/2026(k)	U.S.$		58	$	54,929
Verscend Holding Corp. 7.754% (LIBOR 1 Month + 4.00%), 08/27/2025(b)(k)			26		25,493
					99,337
Technology – 0.7%
Ascend Learning, LLC 9.504% (LIBOR 1 Month + 5.75%), 12/10/2029(k)			50		42,312
Banff Guarantor, Inc. 9.254% (LIBOR 1 Month + 5.50%), 02/27/2026(k)			50		45,850
Boxer Parent Company, Inc. 7.504% (LIBOR 1 Month + 3.75%), 10/02/2025(k)			57		54,961
Endurance International Group Holdings, Inc. 6.698% (LIBOR 1 Month + 3.50%), 02/10/2028(k)			73		62,201
FINThrive Software Intermediate Holdings, Inc. 10.504% (LIBOR 1 Month + 6.75%), 12/17/2029(k)			50		42,725
Loyalty Ventures, Inc. 8.254% (LIBOR 1 Month + 4.50%), 11/03/2027(k)			125		38,618
Peraton Corp. 7.504% (LIBOR 1 Month + 3.75%), 02/01/2028(k)			33		31,306
Playtika Holding Corp. 6.504% (LIBOR 1 Month + 2.75%), 03/13/2028(k)			59		57,416
Presidio Holdings, Inc.
7.260% (LIBOR 1 Month + 3.50%), 01/22/2027(b)(k)			1		619
7.920% (LIBOR 3 Month + 3.50%), 01/22/2027(b)(k)			14		13,953
Veritas US, Inc. 8.674% (LIBOR 3 Month + 5.00%), 09/01/2025(k)			83		66,387
					456,348
					2,126,537

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Financial Institutions – 0.3%
Finance – 0.0%
Orbit Private Holdings I Ltd. 8.174% (LIBOR 3 Month + 4.50%), 12/11/2028(b)(k)	U.S.$		30		$	28,956
Insurance – 0.3%
Cross Financial Corp. 7.813% (LIBOR 1 Month + 4.00%), 09/15/2027(k)			44			43,440
Hub International Limited
7.232% (LIBOR 3 Month + 3.25%), 04/25/2025(k)			0	**		166
7.528% (LIBOR 3 Month + 3.25%), 04/25/2025(k)			66			64,959
Jones DesLauriers Insurance Management, Inc. 12.063% (CDOR 3 Month + 7.50%), 03/26/2029(b)(k)	CAD		95			64,367
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 7.504% (LIBOR 1 Month + 3.75%), 09/03/2026(k)	U.S.$		49			47,856
						220,788
						249,744
Utility – 0.1%
Electric – 0.1%
Granite Generation LLC 7.504% (LIBOR 1 Month + 3.75%), 11/09/2026(k)	U.S.$		50			48,146
Total Bank Loans (cost $2,664,059)						2,424,427
EMERGING MARKETS - CORPORATE BONDS – 2.1%
Industrial – 2.0%
Basic – 0.1%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			91			73,605
Communications - Telecommunications – 0.2%
Sable International Finance Ltd. 5.75%, 09/07/2027(a)			180			159,138
Consumer Cyclical - Other – 1.4%
Allwyn Entertainment Financing UK PLC 4.446% (EURIBOR 3 Month + 4.12%), 02/15/2028(h)	EUR		113			105,105

46    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(a)	U.S.$		236	$	128,620
MGM China Holdings Ltd. 4.75%, 02/01/2027(a)			421		311,540
Studio City Co., Ltd. 7.00%, 02/15/2027(a)			200		161,000
Wynn Macau Ltd. 5.50%, 01/15/2026(a)			409		280,165
					986,430
Consumer Cyclical - Retailers – 0.0%
K201640219 South Africa Ltd. Zero Coupon, 06/25/2023(b)(e)	ZAR		1		– 0	–
K2016470219 South Africa Ltd. 3.00%, 12/31/2022(e)(f)(g)	U.S.$		17		9
K2016470260 South Africa Ltd. 25.00%, 12/31/2022(e)(f)(g)			12		1
					10
Consumer Non-Cyclical – 0.0%
Tonon Luxembourg SA 6.50% (0.50% Cash and 6.00% PIK), 10/31/2024(c)(e)(f)(g)(l)			2		– 0	–
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(b)(c)(d)(e)(g)			96		10
					10
Technology – 0.3%
CA Magnum Holdings 5.375%, 10/31/2026(a)	U.S.$		200		167,500
					1,386,693
Utility – 0.1%
Electric – 0.1%
Terraform Global Operating LP 6.125%, 03/01/2026(g)			28		25,770
Total Emerging Markets - Corporate Bonds (cost $1,916,404)					1,412,463
		Shares
COMMON STOCKS – 0.6%
Energy – 0.2%
Energy Equipment & Services – 0.0%
BIS Industries Holdings Ltd.(b)(c)(e)			21,027		– 0	–
CHC Group LLC(c)			468		5
Diamond Offshore Drilling, Inc.(a)(c)			1,142		11,249
Vantage Drilling International(c)			118		2,124
					13,378

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
Oil, Gas & Consumable Fuels – 0.2%
Berry Corp.		2,975	$	26,388
Chord Energy Corp.		47		7,195
Civitas Resources, Inc.		523		36,563
Denbury, Inc.(c)		339		30,988
Edcon Ltd.(b)(c)(e)		8,218		– 0	–
Global Partners LP/MA		1,004		33,714
SandRidge Energy, Inc.(c)		5		95
				134,943
				148,321
Consumer Discretionary – 0.1%
Diversified Consumer Services – 0.0%
Monitronics International, Inc.(c)		262		65
Hotels, Restaurants & Leisure – 0.0%
Caesars Entertainment, Inc.(c)		151		6,603
Multiline Retail – 0.1%
ATD New Holdings, Inc.(c)		1,009		72,144
K201640219 South Africa Ltd. A Shares(b)(c)(e)		191,574		– 0	–
K201640219 South Africa Ltd. B Shares(b)(c)(e)		30,276		– 0	–
				72,144
				78,812
Consumer Staples – 0.1%
Household Products – 0.1%
Southeastern Grocers, Inc.(b)(c)(e)		3,584		66,304
Communication Services – 0.1%
Diversified Telecommunication Services – 0.1%
Intelsat Jackson Holdings SA(b)(c)(e)		402		– 0	–
Intelsat SA(c)		1,932		48,300
				48,300
Media – 0.0%
DISH Network Corp. – Class A(c)		100		1,491
iHeartMedia, Inc. – Class A(c)		1,045		8,653
				10,144
				58,444
Industrials – 0.1%
Construction & Engineering – 0.1%
WillScot Mobile Mini Holdings Corp.(c)		508		21,605
Electrical Equipment – 0.0%
Exide Corp.(b)(c)(e)		7		875
				22,480

48    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
Information Technology – 0.0%
Software – 0.0%
Avaya Holdings Corp.(c)		1,385	$	2,188
Health Care – 0.0%
Pharmaceuticals – 0.0%
Mallinckrodt PLC(c)		91		1,380
Materials – 0.0%
Containers & Packaging – 0.0%
Westrock Co.		6		204
Metals & Mining – 0.0%
Neenah Enterprises, Inc.(b)(c)		4,481		– 0	–
				204
Total Common Stocks (cost $600,389)				378,133
PREFERRED STOCKS – 0.2%
Industrial – 0.1%
Consumer Cyclical - Automotive – 0.0%
Exide International Holdings LP 0.00%, (b)(c)(e)(g)		39		19,500
Energy – 0.0%
Gulfport Energy Corp. 10.00% (b)(c)		4		24,000
Industrial Conglomerates – 0.1%
WESCO International, Inc. Series A 10.625%		1,425		38,475
				81,975
Financial Institutions – 0.1%
Capital Markets – 0.1%
Ladenburg Thalmann Financial Services, Inc. Series A 8.00%		2,175		27,731
Consumer Discretionary – 0.0%
Household Durables – 0.0%
Hovnanian Enterprises, Inc. 7.625%		490		9,310
Total Preferred Stocks (cost $93,585)				119,016

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 0.1%
Mexico – 0.1%
Mexican Bonos Series M 5.75%, 03/05/2026	MXN		1,202	$	53,492
Series M 20 10.00%, 12/05/2024			480		24,105
Total Governments - Treasuries (cost $91,135)					77,597
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.1%
Risk Share Floating Rate – 0.1%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 7.836% (LIBOR 1 Month + 4.25%), 11/25/2023(h)	U.S.$		19		18,959
Series 2014-HQ2, Class M3
7.336% (LIBOR 1 Month + 3.75%), 09/25/2024(h)			22		21,703
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 7.986% (LIBOR 1 Month + 4.40%), 01/25/2024(h)			4		4,405
					45,067
Non-Agency Fixed Rate – 0.0%
Alternative Loan Trust Series 2006-28CB, Class A14 6.25%, 10/25/2036			4		1,988
CSMC Mortgage-Backed Trust Series 2006-7, Class 3A12 6.25%, 08/25/2036			4		1,673
					3,661
Total Collateralized Mortgage Obligations (cost $51,718)					48,728
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.1%
Non-Agency Fixed Rate CMBS – 0.1%
Citigroup Commercial Mortgage Trust Series 2014-GC23, Class D 4.481%, 07/10/2047(a)			15		13,135
GS Mortgage Securities Trust Series 2014-GC18, Class D 5.057%, 01/10/2047(a)			12		4,758

50    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMBB Commercial Mortgage Securities Trust Series 2013-C17, Class D 4.883%, 01/15/2047(a)	U.S.$		29	$	27,027
Total Commercial Mortgage-Backed Securities (cost $54,250)					44,920
		Shares
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/2022(c)			1,210		36
Willscot Corp., expiring 11/29/2022(b)(c)(e)			787		21,306
Total Warrants (cost $3,589)					21,342
		Principal Amount (000)
EMERGING MARKETS - TREASURIES – 0.0%
South Africa – 0.0%
Republic of South Africa Government Bond Series 2023 7.75%, 02/28/2023 (cost $21,059)	ZAR		283		15,409
		Shares
RIGHTS – 0.0%
Vistra Energy Corp., expiring 12/31/2049(b)(c) (cost $0)			3,442		3,872
SHORT-TERM INVESTMENTS – 7.8%
Investment Companies – 7.8%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(m)(n)(o) (cost $5,336,489)			5,336,489		5,336,489
Total Investments – 99.0% (cost $77,067,158)					67,629,340
Other assets less liabilities – 1.0%					668,490
Net Assets – 100.0%				$	68,297,830

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
U.S. Long Bond (CBT) Futures		4	December 2022	$	482,000	$	(67,070	)
U.S. T-Note 5 Yr (CBT) Futures		14	December 2022		1,492,313		(65,047	)
U.S. T-Note 10 Yr (CBT) Futures		16	December 2022		1,769,500		(116,375	)
Sold Contracts
Euro-OAT Futures		1	December 2022		131,319		5,653
						$	(242,839	)

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		EUR	6,820		USD	6,588		12/08/2022	$	(170,472	)
Brown Brothers Harriman & Co.		GBP	207		USD	246		11/17/2022		8,232
Brown Brothers Harriman & Co.		MXN	1,195		USD	58		11/18/2022		(1,865	)
Brown Brothers Harriman & Co.		EUR	153		USD	154		12/08/2022		1,761
Brown Brothers Harriman & Co.		EUR	662		USD	650		12/08/2022		(5,588	)
Brown Brothers Harriman & Co.		USD	337		EUR	346		12/08/2022		5,812
Brown Brothers Harriman & Co.		USD	220		EUR	220		12/08/2022		(1,616	)
Brown Brothers Harriman & Co.		CAD	99		USD	73		01/19/2023		(14	)
									$	(163,750	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)		Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 39, 5 Year Index, 12/20/2027*		(5.00	)%		Quarterly		5.19	%		USD  2,590	$	4,555	$	78,206	$	(73,651	)

* Termination date

52    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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	1,770		03/06/2023	3 Month LIBOR	2.714%	Quarterly/ Semi-Annual	$	(12,230	)	$	—		$	(12,230	)
USD	2,835		09/02/2025	2.248%	3 Month LIBOR	Semi-Annual/ Quarterly		182,796			(8,311	)		191,107
USD	961		01/15/2026	1.978%	3 Month LIBOR	Semi-Annual/ Quarterly		69,264			5,398			63,866
USD	651		02/16/2026	1.625%	3 Month LIBOR	Semi-Annual/ Quarterly		59,577			7,434			52,143
USD	150		03/31/2026	1.693%	3 Month LIBOR	Semi-Annual/ Quarterly		13,496			—			13,496
USD	100		05/03/2026	1.770%	3 Month LIBOR	Semi-Annual/ Quarterly		8,641			—			8,641
USD	800		06/01/2026	1.714%	3 Month LIBOR	Semi-Annual/ Quarterly		71,201			32,362			38,839
USD	4,650		04/28/2027	3 Month LIBOR	2.330%	Quarterly/ Semi-Annual		(386,912	)		16,658			(403,570	)
USD	350		05/03/2027	2.285%	3 Month LIBOR	Semi-Annual/ Quarterly		28,217			112			28,105
USD	940		03/06/2028	2.876%	3 Month LIBOR	Semi-Annual/ Quarterly		63,770			—			63,770
							$	97,820		$	53,653		$	44,167

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			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		7.50	%		USD	130	$	49,368		$	15,035		$	34,333
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	134		30,431			12,628			17,803
Sale Contracts
BNP Paribas SA
Altice France SA, 6/20/2024*		5.00			Quarterly		5.28			EUR	70		10			2,063			(2,053	)
Credit Suisse International
CDX-CMBX.NA.BB- Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	21		(7,954	)		(2,390	)		(5,564	)
CDX-CMBX.NA.BB- Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	50		(18,924	)		(5,277	)		(13,647	)

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	176	$	(39,970	)	$	(11,269	)	$	(28,701	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	53		(11,896	)		(3,267	)		(8,629	)
Goldman Sachs International
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023*		5.00			Quarterly		1.43			USD	10		452			147			305
Avis Budget Car Rental LLC, 5.250%, 03/15/2025, 12/20/2023*		5.00			Quarterly		1.43			USD	20		903			458			445
CDX-CMBX.NA.BB- Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	117		(44,680	)		(19,557	)		(25,123	)
												$	(42,260	)	$	(11,429	)	$	(30,831	)

* 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 Bank USA
Markit iBoxx USD Contingent Convertible Liquid Developed Market AT1		1 Day SOFR		Maturity		USD  557		12/20/2022	$	(29,182	)

** 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, 2022, the aggregate market value of these securities amounted to $45,833,662 or 67.1% of net assets.

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

(c) Non-income producing security.

(d) Defaulted matured security.

(e) Fair valued by the Adviser.

(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, 2022.

54    ^|    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 0.07% of net assets as of October 31, 2022, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Exide International Holdings LP		11/05/2020	$	29,328		$	19,500			0.03	%
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	%
Intelsat Jackson Holdings SA 8.50%, 10/15/2024		09/05/2018 - 04/17/2019		– 0	–		– 0	–		0.00	%
K2016470219 South Africa Ltd. 3.00%, 12/31/2022		03/13/2015 - 06/30/2021		16,653			9			0.00	%
K2016470260 South Africa Ltd. 25.00%, 12/31/2022		12/22/2016 - 06/30/2021		11,614			1			0.00	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		36,767			– 0	–		0.00	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018 - 06/04/2019		28,004			25,770			0.04	%
Tonon Luxembourg SA 6.50%, 10/31/2024		05/03/2019 - 10/31/2020		4,111			– 0	–		0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		02/13/2013		96,161			10			0.00	%

(h) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2022.

(i) Convertible security.

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

(k) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the SOFR/CDOR or the LIBOR/SOFR/CDOR floor rate plus spread at October 31, 2022.

(l) Defaulted.

(m) Affiliated investments.

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

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

Currency Abbreviations:

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

MXN – Mexican Peso

USD – United States Dollar

ZAR – South African Rand

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PORTFOLIO OF INVESTMENTS (continued)

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

EURIBOR – Euro Interbank Offered Rate

LIBOR – London Interbank Offered Rate

OAT – Obligations Assimilables du Trésor

REIT – Real Estate Investment Trust

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

56    ^|    AB HIGH YIELD PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value Unaffiliated issuers (cost $71,730,669)	$	62,292,851
Affiliated issuers (cost $5,336,489)		5,336,489
Cash collateral due from broker		311,720
Foreign currencies, at value (cost $8,603)		8,366
Unaffiliated interest receivable		999,390
Receivable for investment securities sold		110,411
Receivable for capital stock sold		83,479
Market value of credit default swaps (net premiums paid $30,331)		81,164
Receivable for variation margin on centrally cleared swaps		20,034
Unrealized appreciation on forward currency exchange contracts		15,805
Affiliated dividends receivable		9,421
Receivable for terminated total return swaps		8,455
Total assets		69,277,585
Liabilities
Due to Custodian		987
Payable for investment securities purchased		200,000
Unrealized depreciation on forward currency exchange contracts		179,555
Audit and tax fee payable		135,439
Payable for capital stock redeemed		127,067
Market value of credit default swaps (net premiums received $41,760)		123,424
Dividends payable		82,948
Custody and accounting fees payable		50,508
Unrealized depreciation on total return swaps		29,182
Payable for variation margin on futures		12,218
Advisory fee payable		4,349
Payable for capital gains taxes		4,029
Payable for variation margin on centrally cleared swaps		555
Transfer Agent fee payable		290
Distribution fee payable		196
Accrued expenses		29,008
Total liabilities		979,755
Net Assets	$	68,297,830
Composition of Net Assets
Capital stock, at par	$	8,317
Additional paid-in capital		88,648,768
Accumulated loss		(20,359,255	)
	$	68,297,830

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

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	1,000,327		121,794	$	8.21	*
Advisor	$	67,249,210		8,189,472	$	8.21
Z	$	48,293		5,880	$	8.21

* The maximum offering price per share for Class A shares was $8.57, which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    57

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest (net of foreign taxes withheld of $1,111)	$	3,443,912
Dividends
Affiliated issuers		28,204
Unaffiliated issuers		25,593		$	3,497,709
Expenses
Advisory fee (see Note B)		281,116
Transfer agency—Class A		1,017
Transfer agency—Advisor Class		68,296
Transfer agency—Class Z		15
Distribution fee—Class A		2,262
Audit and tax		142,549
Custody and accounting		107,903
Administrative		81,463
Registration fees		69,961
Legal		37,996
Printing		29,964
Directors’ fees		17,028
Miscellaneous		5,240
Total expenses		844,810
Less: expenses waived and reimbursed by the Adviser (see Note B)		(469,606	)
Net expenses					375,204
Net investment income					3,122,505
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					(1,039,088	)
Forward currency exchange contracts					905,936
Futures					(491,522	)
Swaps					(129,751	)
Written swaptions					45,105
Foreign currency transactions					84,588
Net change in unrealized appreciation (depreciation) on:
Investments(b)					(10,488,876	)
Forward currency exchange contracts					(233,744	)
Futures					(182,673	)
Swaps					3,584
Foreign currency denominated assets and liabilities					(1,498	)
Net loss on investment and foreign currency transactions					(11,527,939	)
Net Decrease in Net Assets from Operations				$	(8,405,434	)

(a) Net of foreign realized capital gains taxes of $166.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $1,870.

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			For the Period January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020
Increase (Decrease) in Net Assets from Operations
Net investment income	$	3,122,505		$	1,969,179		$	2,090,232
Net realized gain (loss) on investment and foreign currency transactions		(624,732	)		1,151,868			129,191
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities		(10,903,207	)		(646,735	)		970,654
Net increase (decrease) in net assets from operations		(8,405,434	)		2,474,312			3,190,077
Distributions to Shareholders
Class A		(48,807	)		(1,360	)		– 0	–
Advisor Class		(3,658,061	)		(2,142,401	)		(2,379,537	)
Class Z		(4,016	)		(544	)		– 0	–
Capital Stock Transactions
Net increase (decrease)		16,588,915			24,744,091			(2,277,269	)
Total increase (decrease)		4,472,597			25,074,098			(1,466,729	)
Net Assets
Beginning of period		63,825,233			38,751,135			40,217,864
End of period	$	68,297,830		$	63,825,233		$	38,751,135

(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, 2022

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, 2022. 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Company’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other

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NOTES TO FINANCIAL STATEMENTS (continued)

things, for making all fair value determinations relating to the Company’s portfolio investments, subject to the Board’s oversight.

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

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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 modeling techniques and are generally classified as Level 2. Pricing vendor

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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, 2022:

Investments in Securities	Level 1			Level 2			Level 3			Total
Assets:
Corporates – Non-Investment Grade	$	– 0	–	$	49,738,027		$	3,332	#	$	49,741,359
Corporates – Investment Grade		– 0	–		8,005,585			– 0	–		8,005,585
Bank Loans		– 0	–		2,167,303			257,124			2,424,427
Emerging Markets – Corporate Bonds		– 0	–		1,412,453	#		10	#		1,412,463
Common Stocks		190,440			120,514			67,179	#		378,133
Preferred Stocks		47,785			27,731			43,500			119,016
Governments – Treasuries		– 0	–		77,597			– 0	–		77,597
Collateralized Mortgage Obligations		– 0	–		48,728			– 0	–		48,728
Commercial Mortgage-Backed Securities		– 0	–		44,920			– 0	–		44,920
Warrants		36			– 0	–		21,306			21,342
Emerging Markets – Treasuries		– 0	–		15,409			– 0	–		15,409
Rights		– 0	–		– 0	–		3,872			3,872
Short-Term Investments:
Investment Companies		5,336,489			– 0	–		– 0	–		5,336,489
Total Investments in Securities		5,574,750			61,658,267			396,323			67,629,340

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities

Level 1

Level 2

Level 3

Total

Other Financial Instruments*:

Assets

Futures

$

5,653

$

– 0

–

$

– 0

–

$

5,653

†

Forward Currency Exchange Contracts

– 0

–

15,805

– 0

–

15,805

Centrally Cleared Credit Default Swaps

– 0

–

4,555

– 0

–

4,555

†

Centrally Cleared Interest Rate Swaps

– 0

–

496,962

– 0

–

496,962

†

Credit Default Swaps

– 0

–

81,164

– 0

–

81,164

Liabilities

Futures

(248,492

)

– 0

–

– 0

–

(248,492

)†

Forward Currency Exchange Contracts

– 0

–

(179,555

)

– 0

–

(179,555

)

Centrally Cleared Interest Rate Swaps

– 0

–

(399,142

)

– 0

–

(399,142

)†

Credit Default Swaps

– 0

–

(123,424

)

– 0

–

(123,424

)

Total Return Swaps

– 0

–

(29,182

)

– 0

–

(29,182

)

Total

$

5,331,911

$

61,525,450

$

396,323

$

67,253,684

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

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

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

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.

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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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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

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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

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 $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

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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 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 year ended October 31, 2022, such reimbursements/waivers amounted to $386,176. The Expense Cap will remain in effect until January 31, 2023 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 year ended October 31, 2022, the Adviser voluntarily agreed to waive such fees in the amount of $81,463.

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 $18,340 for the year ended October 31, 2022.

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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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $1,967.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	2,464	$	44,725	$	41,853	$	5,336	$	28

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.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2022, were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	40,728,207		$	28,336,430
U.S. government securities		– 0	–		309,621

As of October 31, 2022, the cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	77,127,181
Gross unrealized appreciation	$	1,006,348
Gross unrealized depreciation		(11,030,624	)
Net unrealized depreciation	$	(10,024,276	)

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.

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During the year ended October 31, 2022, 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 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, 2022, the Fund held futures 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,

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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 purchased option by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call purchased options 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 written option. 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 written options. 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 a written option by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

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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 of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The 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, 2022, the Fund held written swaptions for 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 including by making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated

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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 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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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, 2022, 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

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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 year ended October 31, 2022, 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, 2022, the Fund held total return swaps for hedging and 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 year ended October 31, 2022, 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	$	5,653	*	Receivable/Payable for variation margin on futures	$	248,492	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		459,967	*	Receivable/Payable for variation margin on centrally cleared swaps		415,800	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		15,805		Unrealized depreciation on forward currency exchange contracts		179,555
Credit contracts	Market value of credit default swaps		81,164		Market value of credit default swaps		123,424

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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				Receivable/Payable for variation margin on centrally cleared swaps	$	73,651	*
Credit contracts				Unrealized depreciation on total return swaps		29,182
Total		$	562,589		$	1,070,104

* 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	$	(9,659	)	$	106,898
Interest rate contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation (depreciation) on futures		(481,445	)		(175,498	)
Foreign currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts		905,936			(233,744	)
Credit contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation (depreciation) on swaps		(120,092	)		(103,314	)
Credit Contracts	Net realized gain/(loss) on written swaptions; Net change in unrealized appreciation (depreciation) on written swaptions		45,105			– 0	–

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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	$	(10,077	)	$	(7,175	)
Total		$	329,768		$	(412,833	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	2,590,000	(a)
Average notional amount of sale contracts	$	3,413,789	(b)
Centrally Cleared Interest Rate Swaps
Average notional amount	$	13,207,000
Credit Default Swaps:
Average notional amount of buy contracts	$	334,264
Average notional amount of sale contracts	$	701,904
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	186,535	(c)
Average principal amount of sale contracts	$	4,865,719
Futures:
Average notional amount of buy contracts	$	4,459,399
Average notional amount of sale contracts	$	166,297
Total Return Swaps:
Average notional amount	$	750,355
Written Swaptions:
Average notional amount	$	2,910,000	(d)

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

b) Positions were open for eleven months during the reporting period.

c) Positions were open for ten months during the reporting period.

d) Positions were open for three 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, 2022. 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	$	10	$	– 0	–	$	– 0	–	$	– 0	–	$	10
Brown Brothers Harriman & Co.		15,805		(9,083	)		– 0	–		– 0	–		6,722
Credit Suisse International		49,368		(26,878	)		– 0	–		– 0	–		22,490
Goldman Sachs Bank USA/Goldman Sachs International		31,786		(31,786	)		– 0	–		– 0	–		– 0	–
Total	$	96,969	$	(67,747	)	$	– 0	–	$	– 0	–	$	29,222	^
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	$	170,472	$	– 0	–	$	– 0	–	$	– 0	–	$	170,472
Brown Brothers Harriman & Co.		9,083		(9,083	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		26,878		(26,878	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		51,866		– 0	–		– 0	–		– 0	–		51,866
Goldman Sachs Bank USA/Goldman Sachs International		73,862		(31,786	)		– 0	–		– 0	–		42,076
Total	$	332,161	$	(67,747	)	$	– 0	–	$	– 0	–	$	264,414	^

* 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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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, 2022			January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020			Year Ended October 31, 2022			January 1, 2021 to October 31, 2021(a)			Year Ended December 31, 2020
Class A*
Shares sold		110,732			15,725			– 0	–	$	1,074,065		$	157,857		$	– 0	–
Shares issued in reinvestment of dividends		1,981			90			– 0	–		17,332			899			– 0	–
Shares redeemed		(6,734	)		– 0	–		– 0	–		(59,373	)		– 0	–		– 0	–
Net increase		105,979			15,815			– 0	–	$	1,032,024		$	158,756		$	– 0	–
Advisor Class
Shares sold		5,003,503			3,689,392			1,342,319		$	45,166,837		$	36,953,019		$	12,290,493
Shares issued in reinvestment of dividends		218,017			90,586			121,319			1,949,901			905,458			1,122,225
Shares redeemed		(3,405,602	)		(1,335,401	)		(1,709,250	)		(31,564,032	)		(13,332,322	)		(15,689,987	)
Net increase (decrease)		1,815,918			2,444,577			(245,612	)	$	15,552,706		$	24,526,155		$	(2,277,269	)
Class Z*
Shares sold		2,395			5,880			– 0	–	$	24,001		$	59,180		$	– 0	–
Shares issued in reinvestment of dividends		90			– 0	–		– 0	–		834			– 0	–		– 0	–
Shares redeemed		(2,485	)		– 0	–		– 0	–		(20,650	)		– 0	–		– 0	–
Net increase		– 0	–		5,880			– 0	–	$	4,185		$	59,180		$	– 0	–

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

* Commenced distribution 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 market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of

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existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

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

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

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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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.

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

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

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments in fixed-income securities denominated in foreign currencies or reduce the Fund’s returns.

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

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the 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,

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banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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

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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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal year ended October 31, 2022, period ended October 31, 2021 and year ended December 31, 2020 were as follows:

	November 1, 2021 to October 31, 2022		January 1, 2021 to October 31, 2021		January 1, 2020 to December 31, 2020
Distributions paid from:
Ordinary income	$	3,710,884	$	2,144,305	$	2,379,537
Total taxable distributions paid	$	3,710,884	$	2,144,305	$	2,379,537

As of December 31, 2021, the Fund’s most recent tax year-end, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	42,753
Accumulated capital and other losses		(9,133,476	)(a)
Unrealized appreciation (depreciation)		601,097	(b)
Total accumulated earnings/(deficit)	$	(8,489,626	)(c)

(a) As of December 31, 2021, the Fund had a net capital loss carryforward of $9,133,476. During the tax year, the Fund utilized $856,675 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, return of capital distributions received from underlying securities, 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of December 31, 2021, the Fund’s most recent tax year end, the Fund had a net short-term capital loss carryforward of $4,806,884 and a net long-term capital loss carryforward of $4,326,592, which may be carried forward for an indefinite period.

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 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, 2022			April 30, 2021(a) to October 31, 2021(b)			November 1, 2017 to February 26, 2018(a)			Year Ended October 31, 2017
Net asset value, beginning of period		$  9.98			$  9.98			$  9.71			$  9.46
Income From Investment Operations
Net investment income(c)(d)		.44			.17			.15			.46
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.69	)		.05			(.18	)		.25
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(e)
Net increase (decrease) in net asset value from operations		(1.25	)		.22			(.03	)		.71
Less: Dividends and Distributions
Dividends from net investment income		(.52	)		(.22	)		(.12	)		(.42	)
Return of capital		– 0	–		– 0	–		– 0	–		(.04	)
Total dividends and distributions		(.52	)		(.22	)		(.12	)		(.46	)
Net asset value, end of period		$  8.21			$  9.98			$  9.56			$  9.71
Total Return
Total investment return based on net asset value(f)*		(12.89	)%		2.23	%		(.02	)%		7.61	%+
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,001			$158			$3,131			$5,150
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)(h)†		.85	%		.85	%^		.95	%^		.95	%
Expenses, before waivers/reimbursements(g)(h)†		1.61	%		2.28	%^		3.27	%^		2.64	%
Net investment income(d)		4.88	%		3.43	%^		4.70	%^		4.82	%
Portfolio turnover rate+++		48	%		36	%		75	%		65	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%		.00	%^		.00	%^		.01	%

See footnote summary on page 90.

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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, 2022			January 1, 2021 to October 31, 2021(b)			Year Ended December 31,						November 1, 2018 to December 31, 2018(i)			Year Ended October 31, 2018
							2020			2019
Net asset value, beginning of period		$  9.98			$  9.86			$  9.63			$  8.90			$  9.36			$  9.71
Income From Investment Operations
Net investment income(c)(d)		.45			.38			.50			.52			.09			.50
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.68	)		.16			.30			.77			(.41	)		(.37	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		.00	(e)
Net increase (decrease) in net asset value from operations		(1.23	)		.54			.80			1.29			(.32	)		.13
Less: Dividends
Dividends from net investment income		(.54	)		(.42	)		(.57	)		(.56	)		(.14	)		(.48	)
Net asset value, end of period		$  8.21			$  9.98			$  9.86			$  9.63			$  8.90			$  9.36
Total Return
Total investment return based on net asset value(f)*		(12.68	)%		5.56	%		8.95	%+		14.77	%+		(3.45	)%		1.32	%**
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$67,249			$63,608			$38,751			$40,218			$30,509			$33,990
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)(h)†		.60	%		.51	%^		.70	%		.29	%++		.29	%^++		.33	%
Expenses, before waivers/reimbursements(g)(h)†		1.35	%		1.74	%^		2.17	%		1.84	%++		3.25	%^++		2.56	%
Net investment income(d)		5.00	%		4.60	%^		5.41	%		5.45	%		5.73	%^		5.20	%
Portfolio turnover rate+++		48	%		36	%		75	%		40	%		5	%		75	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%		.00	%^		.00	%		.01	%		.01	%^		.01	%

See footnote summary on page 90.

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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, 2022			April 30, 2021(a) to October 31 2021(b)			November 1, 2017 to February 26, 2018(a)			Year Ended October 31, 2017
Net asset value, beginning of period		$  9.98			$  9.98			$  9.70			$  9.45
Income From Investment Operations
Net investment income(c)(d)		.44			.18			.16			.49
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.67	)		.05			(.18	)		.24
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(e)
Net increase (decrease) in net asset value from operations		(1.23	)		.23			(.02	)		.73
Less: Dividends and Distributions
Dividends from net investment income		(.54	)		(.23	)		(.13	)		(.43	)
Return of capital		– 0	–		– 0	–		– 0	–		(.05	)
Total dividends and distributions		(.54	)		(.23	)		(.13	)		(.48	)
Net asset value, end of period		$  8.21			$  9.98			$  9.55			$  9.70
Total Return
Total investment return based on net asset value(f)*		(12.67	)%		2.36	%		.14	%		7.91	%+
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$48			$59			$417			$499
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)(h)†		.60	%		.60	%^		.70	%^		.73	%
Expenses, before waivers/reimbursements(g)(h)†		1.27	%		1.92	%^		2.78	%^		1.41	%
Net investment income(d)		4.87	%		3.61	%^		5.04	%^		5.12	%
Portfolio turnover rate+++		48	%		36	%		75	%		65	%
†  Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying
portfolios		.00	%		.00	%^		.00	%^		.01	%

See footnote summary on page 90.

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FINANCIAL HIGHLIGHTS (continued)

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

(a) Class A and Class Z shares of the Fund were not in operation from February 26, 2018 until April 30, 2021.

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

(c) Based on average shares outstanding.

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

(e) Amount is less than $.005.

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

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

	Year Ended October 31, 2022			January 1, 2021 to October  31, 2021(b)			Year Ended December 31,						November 1, 2018  to December 31, 2018(i)			Year Ended October 31,
							2020			2019						2018			2017
Class A
Net of waivers/ reimbursements		.85	%		.85	%^		N/A			N/A			N/A			.95	%(a)^		.95	%
Before waivers/ reimbursements		1.61	%		2.28	%^		N/A			N/A			N/A			3.27	%(a)^		2.69	%
Advisor Class
Net of waivers/ reimbursements		.60	%		.51	%^		.70	%		.29	%		.29	%^		.31	%		.70	%
Before waivers/ reimbursements		1.35	%		1.74	%^		2.17	%		1.84	%		3.25	%^		2.54	%		2.54	%
Class Z
Net of waivers/ reimbursements		.60	%		.60	%^		N/A			N/A			N/A			.70	%(a)^		.73	%
Before waivers/ reimbursements		1.27	%		1.92	%^		N/A			N/A			N/A			2.77	%(a)^		1.47	%

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

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

^ Annualized.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended December 31, 2019, October 31, 2018 and October 31, 2017 by .01%, .03% and .07%, respectively.

** Includes the impact of reimbursements from the Adviser which enhanced the Fund’s performance for the year ended October 31, 2018 by .01%.

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

++ The advisory fee reflected in the Fund’s expense ratio may be higher or lower than the Base Fee plus Performance Adjustment due to the different time periods over which the fee is calculated (i.e., the financial reporting vs. the Performance Period).

+++ Portfolio turnover is calculated for the Fund as a whole for the full fiscal year or period, as applicable, and is not annualized.

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, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, the period from January 1, 2021 through October 31, 2021 and for the year ended December 31, 2020, the financial highlights for each of the periods indicated therein through October 31, 2022 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, 2022, the results of its operations for the year then ended, the changes in its net assets for the year then ended, the period from January 1, 2021 through October 31, 2021 and for the year ended December 31, 2020, and its financial highlights for each of the periods indicated therein through October 31, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 2022

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2022 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, 2021. For foreign shareholders, 67.78% 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 2023.

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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⁾

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President Robert Schwartz⁽²⁾, Vice President William Smith⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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, Schwartz and Smith are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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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 DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Onur Erzan,+ 1345 Avenue of the Americas New York, NY 10105 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2014)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 he currently serves on the board of the George Lucas Educational Foundation. 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.		75	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,# 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,# 78 (2014)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,# 74 (2014)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,# 70 (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.		75	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,# 67 (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.		75	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,# 70 (2014)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Gershon M. Distenfeld 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Co-Head of Fixed-Income.
William Smith 35	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also a Director of US High Yield Credit.
Robert Schwartz 50	Vice President	Senior Vice President of the Manager**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of ABIS**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 Funds’ Liquidity Risk Management Program:

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

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

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors/Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the “Program Reporting Period”).

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

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

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

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

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

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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

abfunds.com AB HIGH YIELD PORTFOLIO    ^|    109

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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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AB HIGH YIELD PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

HY-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB INCOME FUND

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 6, 2022

This report provides management’s discussion of fund performance for the AB Income Fund for the annual reporting period ended October 31, 2022.

The investment objective of the Fund is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB INCOME FUND
Class A Shares		-10.16%		-18.83%
Class C Shares		-10.49%		-19.41%
Advisor Class Shares1		-10.03%		-18.60%
Class Z Shares1		-10.02%		-18.57%
Bloomberg US Aggregate Bond Index		-6.86%		-15.68%

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, 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, 2022.

During both periods, all share classes underperformed the benchmark, before sales charges. During the 12-month period, overall duration exposure and yield-curve positioning were the largest detractors, relative to the benchmark, as overweights on the two- to 10-year parts of the curve lost more than gains from underweights on the 20- to 30-year parts of the curve. Sector allocation also detracted, mostly from off-benchmark exposure to emerging-market sovereign and corporate bonds, and exposure to collateralized loan obligations. These sector losses were partially offset by an overweight to US Treasuries, off-benchmark exposure to high-yield corporate bonds, and underweights to investment-grade corporate bonds and US agency mortgages. Security selection within high-yield corporate bonds, emerging-market sovereign bonds and US agency mortgages also detracted, and were partially offset by gains from selection within commercial mortgage-backed securities (“CMBS”). An off-benchmark country allocation to Canada contributed more than a loss from a minor position in Russia. Currency decisions did not materially impact performance during the period.

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In the six-month period, overall duration exposure and yield-curve positioning were the largest detractors, as losses from overweights on the two- to 10-year parts of the yield curve detracted more than gains from underweights on the 20- to 30-year parts of the curve. Sector allocation also negatively impacted performance, mostly due to off-benchmark exposure to emerging-market sovereign bonds, collateralized loan obligations and bank loans, which was partially offset by gains from an overweight to US Treasuries and an underweight to US agency mortgages. Security selection also detracted, primarily from selection within emerging-market sovereign bonds, high-yield and investment-grade corporate bonds, and US agency mortgages that was partially offset by selection within CMBS. Country allocation was a minor contributor to performance results, as exposure to Canada added more than exposure to Australia during the period. Currency decisions did not materially impact results.

During both periods, the Fund utilized derivatives in the form of treasury futures and interest rate swaps to manage and hedge duration risk and/or to take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain active inflation exposure. Currency forwards were used to hedge foreign currency exposure. Credit default swap indices were used to take active high-yield credit risk. CMBS indices were used to take active commercial real estate exposure. During the 12-month period, interest rate swaptions were used to manage and hedge duration risk, generate income and/or to take active yield-curve positioning.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in

abfunds.com AB INCOME FUND    ^|    3

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.

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 CMBS. 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) and regional and global conflicts, that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. 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 Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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DISCLOSURES AND RISKS (continued)

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

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

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

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

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

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DISCLOSURES AND RISKS (continued)

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: 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.

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 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%

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DISCLOSURES AND RISKS (continued)

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)

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB Income Fund Advisor Class shares (from 10/31/2012 to 10/31/2022) 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.

abfunds.com AB INCOME FUND    ^|     9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						6.07%
1 Year		-18.83%		-22.27%
5 Years		-1.35%		-2.20%
Since Inception2		0.21%		-0.45%
CLASS C SHARES						5.56%
1 Year		-19.41%		-20.20%
5 Years		-2.08%		-2.08%
Since Inception2		-0.52%		-0.52%
ADVISOR CLASS SHARES3,4						6.59%
1 Year		-18.60%		-18.60%
5 Years		-1.10%		-1.10%
10 Years		1.43%		1.43%
CLASS Z SHARES4						6.62%
1 Year		-18.57%		-18.57%
Since Inception2		-4.63%		-4.63%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.80%, 1.55%, 0.55% and 0.49% 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 limited the Fund’s total 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% and 0.52% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2023. 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, 2022.

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.

10    ^|    AB INCOME FUND abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-21.43%
5 Years		-1.98%
Since Inception1		-0.23%
CLASS C SHARES
1 Year		-19.36%
5 Years		-1.87%
Since Inception1		-0.30%
ADVISOR CLASS SHARES2,3
1 Year		-17.74%
5 Years		-0.88%
10 Years		1.64%
CLASS Z SHARES3
1 Year		-17.71%
Since Inception1		-4.30%

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, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	898.40	$	6.46		1.35	%
Hypothetical**	$	1,000	$	1,018.40	$	6.87		1.35	%
Class C
Actual	$	1,000	$	895.10	$	10.03		2.10	%
Hypothetical**	$	1,000	$	1,014.62	$	10.66		2.10	%
Advisor Class
Actual	$	1,000	$	899.70	$	5.27		1.10	%
Hypothetical**	$	1,000	$	1,019.66	$	5.60		1.10	%
Class Z
Actual	$	1,000	$	899.80	$	5.22		1.09	%
Hypothetical**	$	1,000	$	1,019.71	$	5.55		1.09	%

* 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.

12    ^|    AB INCOME FUND abfunds.com

PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $2,630.2

1 The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.3% or less in the following types: Asset-Backed Securities, Common Stocks, Local Governments–US Municipal Bonds, Preferred Stocks and Warrants.

abfunds.com AB INCOME FUND    ^|    13

PORTFOLIO SUMMARY (continued)

October 31, 2022 (unaudited)

1 The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.3% or less in the following: Angola, Australia, Bermuda, Chile, Denmark, Dominican Republic, Ecuador, El Salvador, Finland, Germany, Ghana, Hong Kong, Indonesia, Israel, Italy, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Kuwait, Lebanon, Macau, Morocco, Netherlands, Nigeria, Norway, Pakistan, Panama, Senegal, South Africa, Spain, Sweden, Turkey and Ukraine.

14    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2022

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 75.5%
Canada – 5.7%
Canadian Government Bond 1.00%, 09/01/2026	CAD		225,418	$	150,294,661
United States – 69.8%
U.S. Treasury Bonds 3.00%, 08/15/2052(a)	U.S.$		49,257		39,220,488
U.S. Treasury Notes 2.875%, 05/15/2032(a)			342,529		309,988,926
4.125%, 09/30/2027(a)(b)(c)(d)			528,947		525,806,477
4.25%, 10/31/2027			509,098		506,313,970
4.375%, 10/31/2024			455,821		454,752,769
					1,836,082,630
Total Governments - Treasuries (cost $2,021,706,343)					1,986,377,291
MORTGAGE PASS-THROUGHS – 19.5%
Agency Fixed Rate 30-Year – 19.5%
Federal Home Loan Mortgage Corp. Series 2020 2.50%, 08/01/2050			49,351		41,019,079
2.50%, 09/01/2050			39,019		32,420,344
4.50%, 02/01/2050			2,724		2,600,088
Federal National Mortgage Association Series 1998 8.00%, 06/01/2028			1		1,329
Series 1999 7.50%, 11/01/2029			5		5,234
Series 2020 4.50%, 02/01/2050			6,545		6,236,753
Government National Mortgage Association Series 2021 4.00%, 11/21/2052, TBA			13,732		12,647,373
4.50%, 11/21/2052, TBA			70,886		67,148,902
Uniform Mortgage-Backed Security Series 2022 3.00%, 11/01/2052, TBA			61,874		52,530,134
3.50%, 11/01/2052, TBA			82,946		72,940,899
4.00%, 11/01/2052, TBA			44,832		40,775,927
4.50%, 11/01/2052, TBA			133,971		125,629,464
5.00%, 11/01/2052, TBA			62,077		59,831,803
Total Mortgage Pass-Throughs (cost $540,165,290)					513,787,329

abfunds.com AB INCOME FUND    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 17.4%
Financial Institutions – 11.0%
Banking – 7.3%
AIB Group PLC 4.263%, 04/10/2025(e)	U.S.$		5,750	$	5,480,555
7.583%, 10/14/2026(e)			8,459		8,410,530
Ally Financial, Inc. 8.00%, 11/01/2031			75		76,990
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(e)			3,765		3,301,152
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(e)			3,998		3,847,075
Banco Santander SA 4.175%, 03/24/2028			2,800		2,466,044
5.179%, 11/19/2025			4,000		3,801,720
Bank of America Corp. Series X 6.25%, 09/05/2024(f)			5,833		5,677,317
Series Z 6.50%, 10/23/2024(f)			869		859,371
Bank of Ireland Group PLC 6.253%, 09/16/2026(e)			2,167		2,094,167
Barclays PLC 7.125%, 06/15/2025(f)	GBP		333		350,646
7.25%, 03/15/2023(e)(f)			1,350		1,537,017
7.385%, 11/02/2028	U.S.$		3,394		3,377,234
8.00%, 03/15/2029(f)			8,072		7,244,458
BBVA Bancomer SA/Texas 5.875%, 09/13/2034(e)			5,343		4,446,578
BNP Paribas SA 4.625%, 02/25/2031(e)(f)			2,244		1,553,656
7.75%, 08/16/2029(e)(f)			3,972		3,750,601
Citigroup, Inc. 3.875%, 02/18/2026(f)			3,286		2,696,097
5.95%, 01/30/2023(f)			1,726		1,713,625
Series T 6.25%, 08/15/2026(f)			1,126		1,088,200
Series U 5.00%, 09/12/2024(f)			2,540		2,261,565
Series V 4.70%, 01/30/2025(f)			1,811		1,451,118
Series W 4.00%, 12/10/2025(f)			2,865		2,415,224

16    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Comerica, Inc. 5.625%, 07/01/2025(f)	U.S.$		7,029	$	6,816,162
Credit Agricole SA 8.125%, 12/23/2025(e)(f)			4,972		4,947,538
Credit Suisse Group AG 6.373%, 07/15/2026(e)			1,114		1,039,061
Danske Bank A/S 3.244%, 12/20/2025(e)			200		184,668
4.298%, 04/01/2028(e)			4,773		4,211,075
Deutsche Bank AG/New York NY 6.119%, 07/14/2026			4,938		4,720,530
First-Citizens Bank & Trust Co. 3.929%, 06/19/2024			1,568		1,543,539
HSBC Holdings PLC 4.60%, 12/17/2030(f)			758		500,515
4.762%, 03/29/2033			3,659		2,908,539
6.375%, 03/30/2025(f)			707		627,979
7.336%, 11/03/2026			9,148		9,166,021
ING Groep NV 6.50%, 04/16/2025(f)			6,341		5,773,671
6.75%, 04/16/2024(e)(f)			3,383		3,206,103
JPMorgan Chase & Co. 4.323%, 04/26/2028			9,095		8,466,263
Mitsubishi UFJ Financial Group, Inc. 5.017%, 07/20/2028			3,927		3,735,402
Mizuho Financial Group, Inc. 5.414%, 09/13/2028			6,110		5,901,282
Morgan Stanley 4.21%, 04/20/2028			3,639		3,368,258
6.296%, 10/18/2028			10,098		10,189,387
Nationwide Building Society 4.302%, 03/08/2029(e)			2,000		1,741,920
Nordea Bank Abp 6.625%, 03/26/2026(e)(f)			8,725		8,256,380
PNC Financial Services Group, Inc. (The) Series O 6.46% (LIBOR 3 Month + 3.68%), 02/01/2023(f)(g)			1,247		1,245,030
Standard Chartered PLC 5.925% (LIBOR 3 Month + 1.51%), 01/30/2027(e)(f)(g)			7,500		5,526,450
7.75%, 08/15/2027(e)(f)			290		265,362
Swedbank AB Series NC5 5.625%, 09/17/2024(e)(f)			8,800		8,280,272
Truist Financial Corp. Series Q 5.10%, 03/01/2030(f)			14,180		12,467,198

abfunds.com AB INCOME FUND    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
UBS Group AG 4.375%, 02/10/2031(e)(f)	U.S.$		4,958	$	3,408,179
7.00%, 02/19/2025(e)(f)			211		204,362
UniCredit SpA 1.982%, 06/03/2027(e)			250		203,260
2.569%, 09/22/2026(e)			3,984		3,418,591
					192,223,937
Brokerage – 0.2%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(f)			4,807		4,694,997
Finance – 1.5%
Aircastle Ltd. 2.85%, 01/26/2028(e)			1,242		933,674
4.125%, 05/01/2024			678		646,419
4.25%, 06/15/2026			163		143,776
4.40%, 09/25/2023			1,716		1,680,290
5.00%, 04/01/2023			140		139,035
5.25%, 08/11/2025(e)			5,846		5,470,219
Aviation Capital Group LLC 1.95%, 01/30/2026(e)			1,442		1,200,220
1.95%, 09/20/2026(e)			4,367		3,513,470
3.50%, 11/01/2027(e)			1,437		1,170,724
4.125%, 08/01/2025(e)			1,592		1,444,310
4.375%, 01/30/2024(e)			1,694		1,633,507
4.875%, 10/01/2025(e)			1,315		1,206,276
5.50%, 12/15/2024(e)			4,722		4,534,678
Huarong Finance 2017 Co., Ltd. 4.75%, 04/27/2027(e)			400		285,825
Huarong Finance II Co., Ltd. 5.50%, 01/16/2025(e)			7,507		6,349,514
Synchrony Financial 3.95%, 12/01/2027			9,789		8,425,686
					38,777,623
Insurance – 1.5%
ACE Capital Trust II 9.70%, 04/01/2030			750		934,867
Assicurazioni Generali SpA 5.50%, 10/27/2047(e)	EUR		6,630		6,436,386
Credit Agricole Assurances SA 4.75%, 09/27/2048(e)			3,200		2,962,377
Fairfax Financial Holdings Ltd. 8.30%, 04/15/2026	U.S.$		5,000		5,267,250
Hartford Financial Services Group, Inc. (The) Series ICON 5.03% (LIBOR 3 Month + 2.12%), 02/12/2047(e)(g)			3,275		2,697,421

18    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MetLife Capital Trust IV 7.875%, 12/15/2037(e)	U.S.$		4,117	$	4,286,456
Prudential Financial, Inc. 5.20%, 03/15/2044			4,029		3,759,661
5.625%, 06/15/2043			2,868		2,833,871
Voya Financial, Inc. 5.65%, 05/15/2053			12,065		11,663,477
					40,841,766
REITs – 0.5%
GLP Capital LP/GLP Financing II, Inc. 5.25%, 06/01/2025			886		857,887
5.375%, 04/15/2026			283		270,073
Office Properties Income Trust 3.45%, 10/15/2031			2,398		1,467,648
Spirit Realty LP 2.10%, 03/15/2028			3,911		3,080,304
3.40%, 01/15/2030			1,800		1,438,794
STORE Capital Corp. 4.625%, 03/15/2029			1,143		1,061,698
Trust Fibra Uno 4.869%, 01/15/2030(e)			4,814		3,616,758
VICI Properties LP/VICI Note Co., Inc. 4.625%, 06/15/2025(e)			628		590,891
					12,384,053
					288,922,376
Industrial – 5.3%
Basic – 0.7%
Anglo American Capital PLC 5.625%, 04/01/2030(e)			3,960		3,736,359
ArcelorMittal SA 7.00%, 10/15/2039			1,180		1,113,082
Arconic Corp. 6.00%, 05/15/2025(e)			765		756,990
Celanese US Holdings LLC 5.90%, 07/05/2024			1,124		1,104,577
6.05%, 03/15/2025			1,124		1,093,337
CF Industries, Inc. 4.95%, 06/01/2043			75		60,269
Freeport Indonesia PT 4.763%, 04/14/2027(e)			964		863,985
Gold Fields Orogen Holdings BVI Ltd. 5.125%, 05/15/2024(e)			1,445		1,412,307
MEGlobal Canada ULC 5.00%, 05/18/2025(e)			1,988		1,916,929
Nexa Resources SA 5.375%, 05/04/2027(e)			5,600		5,055,680

abfunds.com AB INCOME FUND    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Suzano Austria GmbH 3.75%, 01/15/2031	U.S.$		1,304	$	1,037,495
5.00%, 01/15/2030			2,100		1,850,363
Series DM3N 3.125%, 01/15/2032			427		314,913
					20,316,286
Capital Goods – 0.1%
General Electric Co. Series D 6.623% (LIBOR 3 Month + 3.33%), 12/15/2022(f)			1,203		1,163,553
Westinghouse Air Brake Technologies Corp. 4.95%, 09/15/2028			2,060		1,921,939
					3,085,492
Communications - Media – 0.5%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(e)			2,691		2,421,954
Prosus NV 3.68%, 01/21/2030(e)			5,224		3,825,927
Warnermedia Holdings, Inc. 4.279%, 03/15/2032(e)			4,364		3,526,854
Weibo Corp. 3.50%, 07/05/2024			4,574		4,303,276
					14,078,011
Communications - Telecommunications – 0.1%
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(e)			1,244		1,224,920
5.152%, 03/20/2028(e)			1,990		1,938,638
					3,163,558
Consumer Cyclical - Automotive – 0.0%
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(e)			655		558,931
Consumer Cyclical - Other – 0.1%
Lennar Corp. 4.75%, 11/29/2027			75		69,398
PulteGroup, Inc. 6.375%, 05/15/2033			2,868		2,671,714
Resorts World Las Vegas LLC/RWLV Capital, Inc. 4.625%, 04/16/2029(e)			1,100		762,564
					3,503,676

20    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Retailers – 0.1%
Macy’s Retail Holdings LLC 5.875%, 03/15/2030(e)	U.S.$		985	$	831,606
6.125%, 03/15/2032(e)			1,510		1,255,354
					2,086,960
Consumer Non-Cyclical – 0.6%
BAT Capital Corp. 4.906%, 04/02/2030			7,540		6,590,940
7.75%, 10/19/2032			15		15,332
BAT International Finance PLC 4.448%, 03/16/2028			7,944		7,049,506
Charles River Laboratories International, Inc. 4.00%, 03/15/2031(e)			725		610,109
Newell Brands, Inc. 6.375%, 09/15/2027			1,534		1,502,062
6.625%, 09/15/2029			1,534		1,499,102
					17,267,051
Energy – 1.5%
Continental Resources, Inc./OK 5.75%, 01/15/2031(e)			2,501		2,275,635
Ecopetrol SA 4.625%, 11/02/2031			1,135		781,731
5.875%, 09/18/2023			281		275,802
5.875%, 11/02/2051			1,495		879,807
6.875%, 04/29/2030			4,658		3,803,257
Energy Transfer LP 4.40%, 03/15/2027			8,139		7,566,340
EQT Corp. 5.70%, 04/01/2028			1,528		1,487,111
Hess Corp. 7.30%, 08/15/2031			8,898		9,441,935
Hunt Oil Co. of Peru LLC Sucursal Del Peru 6.375%, 06/01/2028(e)			1,047		944,907
Oleoducto Central SA 4.00%, 07/14/2027(e)			1,169		951,128
ONEOK, Inc.
4.35%, 03/15/2029			3,952		3,514,553
6.35%, 01/15/2031			1,880		1,856,876
Raizen Fuels Finance SA 5.30%, 01/20/2027(e)			2,218		2,105,436
Western Midstream Operating LP 3.95%, 06/01/2025 159					151,075
4.30%, 02/01/2030			1,171		1,029,332
4.65%, 07/01/2026			1,558		1,472,886
4.75%, 08/15/2028			490		452,981
					38,990,792

abfunds.com AB INCOME FUND    ^|    21

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	$	1,887,374
Technology – 1.1%
Baidu, Inc. 3.075%, 04/07/2025			797		742,740
3.425%, 04/07/2030			225		180,657
Broadcom, Inc. 3.187%, 11/15/2036(e)			8,786		5,994,776
4.00%, 04/15/2029(e)			845		741,572
4.15%, 04/15/2032(e)			4,079		3,421,955
Entegris Escrow Corp. 4.75%, 04/15/2029(e)			7,688		6,865,000
Micron Technology, Inc. 6.75%, 11/01/2029			5,492		5,494,581
NXP BV/NXP Funding LLC 5.35%, 03/01/2026			3,499		3,413,712
5.55%, 12/01/2028			1,130		1,083,647
Western Digital Corp. 3.10%, 02/01/2032			748		518,760
					28,457,400
Transportation - Airlines – 0.1%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(e)			1,640		1,524,692
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(e)			359		293,444
5.875%, 07/05/2034(e)			1,581		1,466,046
					1,759,490
Transportation - Services – 0.2%
Adani Ports & Special Economic Zone Ltd. 4.00%, 07/30/2027(e)			4,585		3,656,308
Ashtead Capital, Inc. 5.50%, 08/11/2032(e)			1,006		909,384
					4,565,692
					141,245,405
Utility – 1.1%
Electric – 1.1%
Adani Transmission Step-One Ltd. 4.00%, 08/03/2026(e)			3,064		2,614,549
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(e)			2,474		1,944,873
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(e)			3,169		2,199,088
Colbun SA 3.15%, 03/06/2030(e)			209		168,245

22    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ComEd Financing III 6.35%, 03/15/2033	U.S.$		3,462	$	3,357,205
Empresa Electrica Cochrane SpA 5.50%, 05/14/2027(e)			309		266,453
Empresas Publicas de Medellin ESP 4.25%, 07/18/2029(e)			3,775		2,692,755
4.375%, 02/15/2031(e)			5,315		3,605,231
Enel Finance International NV 7.50%, 10/14/2032(e)			2,493		2,503,795
Engie Energia Chile SA 3.40%, 01/28/2030(e)			6,432		4,695,360
Kallpa Generacion SA 4.125%, 08/16/2027(e)			2,562		2,243,031
LLPL Capital Pte Ltd. 6.875%, 02/04/2039(e)			2,978		2,292,805
					28,583,390
Total Corporates - Investment Grade (cost $517,715,752)					458,751,171
CORPORATES - NON-INVESTMENT GRADE – 10.8%
Industrial – 8.4%
Basic – 0.5%
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(e)			277		222,714
7.50%, 09/30/2029(e)			280		187,821
ERP Iron Ore, LLC 9.034%, 12/31/2019(h)(i)(j)(k)(l)			118		78,879
FMG Resources August 2006 Pty Ltd. 6.125%, 04/15/2032(e)			3,761		3,332,058
Graphic Packaging International LLC 4.75%, 07/15/2027(e)			32		29,525
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. 9.00%, 07/01/2028(e)			2,965		2,507,323
INEOS Quattro Finance 1 PLC 3.75%, 07/15/2026(e)	EUR		107		82,957
Kleopatra Finco Sarl 4.25%, 03/01/2026(a)(e)			2,779		2,258,375
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(h)(i)(j)(k)(m)	U.S.$		1,407		– 0	–
SCIL IV LLC/SCIL USA Holdings LLC 5.375%, 11/01/2026(e)			1,782		1,422,856
Vibrantz Technologies, Inc. 9.00%, 02/15/2030(e)			4,043		2,675,172
					12,797,680

abfunds.com AB INCOME FUND    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Capital Goods – 0.5%
ARD Finance SA 6.50% (6.50% Cash or 7.25% PIK), 06/30/2027(e)(l)	U.S.$		3,692		$	2,648,727
Bombardier, Inc. 7.875%, 04/15/2027(e)			1,946			1,849,011
Eco Material Technologies, Inc. 7.875%, 01/31/2027(e)			2,807			2,626,257
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(e)			1,047			1,005,120
TK Elevator Holdco GmbH 7.625%, 07/15/2028(e)			1,008			833,515
TransDigm, Inc. 6.25%, 03/15/2026(e)			33			32,541
Triumph Group, Inc. 6.25%, 09/15/2024(e)			1,309			1,214,399
7.75%, 08/15/2025			362			274,595
8.875%, 06/01/2024(e)			1,428			1,443,066
Trivium Packaging Finance BV 3.75%, 08/15/2026(e)	EUR		100			88,725
						12,015,956
Communications - Media – 0.9%
Advantage Sales & Marketing, Inc. 6.50%, 11/15/2028(e)	U.S.$		5,620			4,781,608
Altice Financing SA 5.75%, 08/15/2029(e)			3,670			2,890,052
AMC Networks, Inc. 4.25%, 02/15/2029			3,809			2,954,679
Banijay Entertainment SASU 3.50%, 03/01/2025(e)	EUR		600			557,936
5.375%, 03/01/2025(e)	U.S.$		455			421,931
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(e)			688			559,151
4.50%, 06/01/2033(e)			6,459			4,919,756
4.75%, 02/01/2032(e)			519			416,067
CSC Holdings LLC 5.00%, 11/15/2031(e)			1,045			756,987
5.75%, 01/15/2030(e)			230			177,100
DISH DBS Corp. 5.125%, 06/01/2029			635			429,209
5.25%, 12/01/2026(e)			289			250,930
7.75%, 07/01/2026			302			255,123
iHeartCommunications, Inc. 6.375%, 05/01/2026			0	**		333
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(e)			3,282			2,889,276

24    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
National CineMedia LLC 5.875%, 04/15/2028(e)	U.S.$		2,267	$	911,085
Sinclair Television Group, Inc. 5.50%, 03/01/2030(e)			2,251		1,683,208
					24,854,431
Communications - Telecommunications – 0.2%
Intelsat Jackson Holdings SA Zero Coupon, 08/01/2023(h)(i)(k)			4,941		– 0	–
Kaixo Bondco Telecom SA 5.125%, 09/30/2029(e)	EUR		4,070		3,240,627
Vmed O2 UK Financing I PLC 4.75%, 07/15/2031(e)	U.S.$		1,329		1,078,630
					4,319,257
Consumer Cyclical - Automotive – 0.7%
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(e)	EUR		360		331,450
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(e)	U.S.$		2,682		2,349,942
Exide Technologies (Exchange Priority) 11.00%, 10/31/2024(h)(k)(m)			2,273		– 0	–
(First Lien) 11.00%, 10/31/2024(h)(i)(k)(m)			933		– 0	–
Ford Motor Co. 6.10%, 08/19/2032			4,859		4,452,010
IHO Verwaltungs GmbH 3.625% (3.625% Cash or 4.375% PIK), 05/15/2025(e)(l)	EUR		560		500,774
3.875% (3.875% Cash or 4.625% PIK), 05/15/2027(e)(l)			623		488,868
Jaguar Land Rover Automotive PLC 5.50%, 07/15/2029(e)	U.S.$		2,707		1,909,220
7.75%, 10/15/2025(e)			1,661		1,532,871
Mclaren Finance PLC 7.50%, 08/01/2026(e)			6,471		5,146,580
PM General Purchaser LLC 9.50%, 10/01/2028(e)			1,509		1,295,793
Tenneco, Inc. 5.00%, 07/15/2026			680		677,355
					18,684,863
Consumer Cyclical - Entertainment – 0.9%
Carnival Corp. 4.00%, 08/01/2028(e)			1,841		1,485,448

abfunds.com AB INCOME FUND    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.75%, 03/01/2027(e)	U.S.$		2,598	$	1,803,064
9.875%, 08/01/2027(e)			1,508		1,405,984
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(e)			8,053		7,998,239
Lindblad Expeditions LLC 6.75%, 02/15/2027(e)			779		697,820
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(e)			433		339,771
5.50%, 08/31/2026(e)			82		66,966
5.50%, 04/01/2028(e)			1,617		1,245,106
11.50%, 06/01/2025(e)			2,358		2,538,646
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(e)			4,017		4,120,478
Viking Cruises Ltd. 5.875%, 09/15/2027(e)			1,057		844,797
13.00%, 05/15/2025(e)			888		954,360
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(e)			1,376		1,073,404
VOC Escrow Ltd. 5.00%, 02/15/2028(e)			75		62,491
					24,636,574
Consumer Cyclical - Other – 0.6%
Adams Homes, Inc. 7.50%, 02/15/2025(e)			2,232		1,804,795
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(e)			1,846		1,611,558
Caesars Entertainment, Inc. 4.625%, 10/15/2029(e)			213		170,449
Empire Communities Corp. 7.00%, 12/15/2025(e)			1,386		1,201,357
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(e)			140		114,513
5.00%, 06/01/2029(e)			1,864		1,604,102
Installed Building Products, Inc. 5.75%, 02/01/2028(e)			846		749,209
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(e)			810		801,293
NAC Aviation 29 DAC 4.75%, 06/30/2026(h)			5,881		4,725,968
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp. 5.875%, 09/01/2031(e)			392		278,202

26    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Travel + Leisure Co. 6.625%, 07/31/2026(e)	U.S.$		2,404	$	2,345,727
					15,407,173
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(e)			1,546		1,360,109
Consumer Cyclical - Retailers – 0.7%
Arko Corp. 5.125%, 11/15/2029(e)			845		669,553
Bath & Body Works, Inc. 6.75%, 07/01/2036			704		581,039
6.875%, 11/01/2035			2,210		1,879,273
7.50%, 06/15/2029			236		223,832
9.375%, 07/01/2025(e)			185		192,753
Dufry One BV 2.50%, 10/15/2024(e)	EUR		1,810		1,710,475
FirstCash, Inc. 5.625%, 01/01/2030(e)	U.S.$		66		59,063
Foundation Building Materials, Inc. 6.00%, 03/01/2029(e)			1,143		799,711
Gap, Inc. (The) 3.625%, 10/01/2029(e)			873		613,326
Kontoor Brands, Inc. 4.125%, 11/15/2029(e)			2,225		1,790,547
Michaels Cos, Inc. (The) 7.875%, 05/01/2029(e)			4,529		2,537,101
PetSmart, Inc./PetSmart Finance Corp. 7.75%, 02/15/2029(e)			1,480		1,389,513
Rite Aid Corp. 7.50%, 07/01/2025(e)			1,748		1,231,623
SRS Distribution, Inc. 6.125%, 07/01/2029(e)			548		450,171
Staples, Inc. 7.50%, 04/15/2026(e)			2,956		2,570,892
10.75%, 04/15/2027(a)(e)			1,108		804,463
TPro Acquisition Corp. 11.00%, 10/15/2024(e)			716		701,838
					18,205,173
Consumer Non-Cyclical – 0.4%
CHS/Community Health Systems, Inc. 6.875%, 04/15/2029(e)			2,079		856,964
Cidron Aida Finco SARL 5.00%, 04/01/2028(e)	EUR		496		384,496
Garden Spinco Corp. 8.625%, 07/20/2030(e)	U.S.$		1,594		1,649,057

abfunds.com AB INCOME FUND    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Legacy LifePoint Health LLC 4.375%, 02/15/2027(e)	U.S.$		695	$	548,737
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 10.00%, 06/15/2029(e)			162		90,735
Medline Borrower LP 5.25%, 10/01/2029(e)			1,374		1,071,005
Radiology Partners, Inc. 9.25%, 02/01/2028(e)			3,294		1,753,627
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(e)			3,840		3,067,008
US Acute Care Solutions LLC 6.375%, 03/01/2026(e)			1,383		1,252,237
					10,673,866
Energy – 1.2%
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(e)			1,896		1,876,623
Citgo Holding, Inc. 9.25%, 08/01/2024(e)			737		738,024
CITGO Petroleum Corp. 7.00%, 06/15/2025(e)			2,880		2,838,787
Crescent Energy Finance LLC 7.25%, 05/01/2026(e)			1,339		1,241,735
Diamond Foreign Asset Co./Diamond Finance LLC 13.00% (9.00% Cash or 13.00% PIK), 04/22/2027(e)(l)			87		78,865
13.00% (9.00% Cash or 13.00% PIK), 04/22/2027(l)			76		69,249
Encino Acquisition Partners Holdings LLC 8.50%, 05/01/2028(e)			826		781,396
EQM Midstream Partners LP 4.50%, 01/15/2029(e)			145		123,259
4.75%, 01/15/2031(e)			319		266,505
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026			1,149		1,076,050
6.50%, 10/01/2025			123		118,154
7.75%, 02/01/2028			4,346		4,143,433
8.00%, 01/15/2027			996		966,967
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029			1,924		1,751,456
Gulfport Energy Corp. 6.00%, 10/15/2024(i)			438		547
6.375%, 05/15/2025(i)			1,351		1,689

28    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.375%, 01/15/2026(i)	U.S.$		1,194	$	1,492
6.625%, 05/01/2023(i)			236		295
8.00%, 05/17/2026(e)			580		578,018
Harbour Energy PLC 5.50%, 10/15/2026(e)			403		363,220
Ithaca Energy North Sea PLC 9.00%, 07/15/2026(e)			1,684		1,665,055
ITT Holdings LLC 6.50%, 08/01/2029(e)			2,772		2,231,321
Nabors Industries Ltd.
7.25%, 01/15/2026(e)			925		891,996
7.50%, 01/15/2028(e)			1,372		1,266,040
New Fortress Energy, Inc. 6.75%, 09/15/2025(e)			1,399		1,373,748
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(e)			4,696		4,251,571
Occidental Petroleum Corp. 5.875%, 09/01/2025			38		38,341
8.00%, 07/15/2025			755		801,191
8.875%, 07/15/2030			891		1,018,716
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(e)			1,560		1,497,990
Transocean Phoenix 2 Ltd. 7.75%, 10/15/2024(e)			120		119,297
					32,171,030
Services – 0.7%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 9.75%, 07/15/2027(e)			1,513		1,315,569
ANGI Group LLC 3.875%, 08/15/2028(e)			458		333,850
APX Group, Inc.
5.75%, 07/15/2029(e)			3,592		2,834,375
6.75%, 02/15/2027(e)			3,506		3,426,729
Cars.com, Inc. 6.375%, 11/01/2028(e)			2,427		2,103,263
Garda World Security Corp. 9.50%, 11/01/2027(e)			3,358		3,042,684
ION Trading Technologies SARL 5.75%, 05/15/2028(e)			284		228,634
Millennium Escrow Corp. 6.625%, 08/01/2026(e)			3,319		2,390,178
Monitronics International, Inc. 0.00%, 04/01/2020(h)(i)(j)(k)			1,835		– 0	–

abfunds.com AB INCOME FUND    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)(e)	U.S.$		4,123	$	3,185,718
Prime Security Services Borrower LLC/Prime Finance, Inc. 6.25%, 01/15/2028(e)			473		438,041
					19,299,041
Technology – 0.6%
Avaya, Inc. 6.125%, 09/15/2028(e)			1,487		629,120
Cablevision Lightpath LLC 5.625%, 09/15/2028(e)			1,847		1,467,128
CommScope, Inc. 4.75%, 09/01/2029(e)			381		322,558
Entegris Escrow Corp. 5.95%, 06/15/2030(e)			2,001		1,828,494
NCR Corp. 5.125%, 04/15/2029(e)			1,017		852,704
5.75%, 09/01/2027(e)			23		22,187
6.125%, 09/01/2029(e)			366		350,599
NortonLifeLock, Inc.
6.75%, 09/30/2027(e)			1,528		1,507,357
7.125%, 09/30/2030(e)			1,528		1,508,075
Presidio Holdings, Inc.
4.875%, 02/01/2027(e)			165		152,270
8.25%, 02/01/2028(e)			1,836		1,635,766
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(e)			6,350		5,339,397
Virtusa Corp. 7.125%, 12/15/2028(e)			947		681,442
					16,297,097
Transportation - Services – 0.4%
AerCap Global Aviation Trust 6.50%, 06/15/2045(e)			1,944		1,775,202
Albion Financing 1 SARL/Aggreko Holdings, Inc. 6.125%, 10/15/2026(e)			842		719,775
BCP V Modular Services Finance II PLC 4.75%, 11/30/2028(e)	EUR		264		214,719
BCP V Modular Services Finance PLC 6.75%, 11/30/2029(e)			2,585		1,769,385
EC Finance PLC 3.00%, 10/15/2026(e)			869		756,937
Loxam SAS 4.50%, 02/15/2027(e)			2,338		2,048,699
PROG Holdings, Inc. 6.00%, 11/15/2029(e)	U.S.$		3,304		2,685,293
					9,970,010
					220,692,260

30    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 2.1%
Banking – 1.0%
Ally Financial, Inc. Series B 4.70%, 05/15/2026(f)	U.S.$		3,727	$	2,699,802
Banco Bilbao Vizcaya Argentaria SA Series 9 6.50%, 03/05/2025(f)			1,800		1,616,058
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(e)			3,513		3,089,508
7.00%, 01/15/2026(e)			824		711,277
Credit Suisse Group AG 5.25%, 02/11/2027(e)(f)			4,846		3,440,660
6.25%, 12/18/2024(e)(f)			640		538,739
6.375%, 08/21/2026(e)(f)			3,961		2,969,007
7.50%, 07/17/2023(e)(f)			4,684		4,150,679
7.50%, 12/11/2023(e)(f)			2,150		1,956,908
Discover Financial Services Series D 6.125%, 06/23/2025(f)			2,197		2,129,113
Intesa Sanpaolo SpA 5.017%, 06/26/2024(e)			999		953,795
Societe Generale SA 8.00%, 09/29/2025(e)(f)			2,015		1,986,690
					26,242,236
Brokerage – 0.3%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(e)			4,330		4,323,722
NFP Corp. 6.875%, 08/15/2028(e)			2,285		1,969,167
7.50%, 10/01/2030(e)			1,206		1,156,843
					7,449,732
Finance – 0.3%
Aircastle Ltd. 5.25%, 06/15/2026(e)(f)			1,325		986,993
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(e)			1,799		1,528,772
Curo Group Holdings Corp. 7.50%, 08/01/2028(e)			3,057		1,804,394
Enova International, Inc. 8.50%, 09/01/2024(e)			3,418		3,209,160
Lincoln Financing SARL 3.625%, 04/01/2024(e)	EUR		759		726,627
					8,255,946

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.3%
Acrisure LLC/Acrisure Finance, Inc. 7.00%, 11/15/2025(e)	U.S.$		4,241	$	4,020,553
10.125%, 08/01/2026(e)			831		829,537
Ardonagh Midco 2 PLC 11.50% (11.50% Cash or 12.75% PIK), 01/15/2027(e)(l)			1,789		1,764,403
AssuredPartners, Inc. 5.625%, 01/15/2029(e)			2,222		1,827,262
					8,441,755
Other Finance – 0.1%
Intrum AB 3.00%, 09/15/2027(a)(e)	EUR		1,490		1,118,416
3.50%, 07/15/2026(e)			1,040		838,083
					1,956,499
REITs – 0.1%
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 4.50%, 04/01/2027(e)	U.S.$		320		272,954
Diversified Healthcare Trust 9.75%, 06/15/2025			695		656,511
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer 4.875%, 05/15/2029(e)			1,270		1,085,520
					2,014,985
					54,361,153
Utility – 0.3%
Electric – 0.3%
Vistra Corp. 7.00%, 12/15/2026(e)(f)			3,399		3,020,725
8.00%, 10/15/2026(e)(f)			4,113		3,906,528
					6,927,253
Natural Gas – 0.0%
AmeriGas Partners LP / AmeriGas Finance Corp. 5.875%, 08/20/2026			488		458,564
Other Utility – 0.0%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(e)			1,318		1,260,996
					8,646,813
Total Corporates - Non-Investment Grade (cost $337,667,866)					283,700,226

32    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED LOAN OBLIGATIONS – 5.1%
CLO - Floating Rate – 5.1%
Ares XXXIV CLO Ltd. Series 2015-2A, Class CR 6.079% (LIBOR 3 Month + 2.00%), 04/17/2033(e)(g)	U.S.$		9,437	$	8,645,111
Balboa Bay Loan Funding Ltd. Series 2020-1A, Class DR 7.393% (LIBOR 3 Month + 3.15%), 01/20/2032(e)(g)			1,935		1,685,942
Series 2021-1A, Class D 7.293% (LIBOR 3 Month + 3.05%), 07/20/2034(e)(g)			2,750		2,301,409
Series 2022-1A, Class D 7.963% (SOFR + 4.00%), 04/20/2034(e)(g)			7,850		7,161,869
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 7.179% (LIBOR 3 Month + 3.10%), 04/15/2034(e)(g)			2,750		2,339,829
Black Diamond CLO Ltd. Series 2016-1A, Class A2AR 6.077% (LIBOR 3 Month + 1.75%), 04/26/2031(e)(g)			5,300		4,966,471
BlueMountain Fuji US CLO II Ltd. Series 2017-2A, Class D 10.393% (LIBOR 3 Month + 6.15%), 10/20/2030(e)(g)			3,300		2,584,804
CBAM Ltd. Series 2018-7A, Class B1 5.843% (LIBOR 3 Month + 1.60%), 07/20/2031(e)(g)			1,996		1,871,489
CIFC Funding Ltd. Series 2020-4A, Class D 7.479% (LIBOR 3 Month + 3.40%), 01/15/2034(e)(g)			300		265,222
Crown Point CLO 11 Ltd. Series 2021-11A, Class D 7.679% (LIBOR 3 Month + 3.60%), 01/17/2034(e)(g)			2,000		1,780,808
Dryden 49 Senior Loan Fund Series 2017-49A, Class E 10.494% (LIBOR 3 Month + 6.30%), 07/18/2030(e)(g)			605		492,983
Dryden 78 CLO Ltd. Series 2020-78A, Class C 6.029% (LIBOR 3 Month + 1.95%), 04/17/2033(e)(g)			1,480		1,363,799

abfunds.com AB INCOME FUND    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-78A, Class D 7.079% (LIBOR 3 Month + 3.00%), 04/17/2033(e)(g)	U.S.$		6,824	$	5,929,582
Dryden 98 CLO Ltd. Series 2022-98A, Class D 7.063% (SOFR + 3.10%), 04/20/2035(e)(g)			4,850		4,217,250
Elevation CLO Ltd. Series 2020-11A, Class D1 7.929% (LIBOR 3 Month + 3.85%), 04/15/2033(e)(g)			4,490		3,935,656
Elmwood CLO VII Ltd. Series 2020-4A, Class D 7.679% (LIBOR 3 Month + 3.60%), 01/17/2034(e)(g)			4,200		3,763,574
Elmwood CLO VIII Ltd. Series 2021-1A, Class D1 7.243% (LIBOR 3 Month + 3.00%), 01/20/2034(e)(g)			1,000		881,091
Elmwood CLO XII Ltd. Series 2021-5A, Class D 7.293% (LIBOR 3 Month + 3.05%), 01/20/2035(e)(g)			4,850		4,163,546
Galaxy 30 Clo Ltd. Series 2022-30A, Class D 7.214% (SOFR + 3.35%), 04/15/2035(e)(g)			6,350		5,574,684
GoldenTree Loan Opportunities IX Ltd. Series 2014-9A, Class DR2 7.415% (LIBOR 3 Month + 3.00%), 10/29/2029(e)(g)			2,815		2,539,974
Greywolf CLO VI Ltd. Series 2018-1A, Class A2 5.957% (LIBOR 3 Month + 1.63%), 04/26/2031(e)(g)			5,300		5,041,572
Halcyon Loan Advisors Funding Ltd. Series 2018-1A, Class A2 6.043% (LIBOR 3 Month + 1.80%), 07/21/2031(e)(g)			1,826		1,708,187
Series 2018-1A, Class C 7.443% (LIBOR 3 Month + 3.20%), 07/21/2031(e)(g)			2,000		1,654,388
Madison Park Funding LI Ltd. Series 2021-51A, Class D 7.277% (LIBOR 3 Month + 3.05%), 07/19/2034(e)(g)			3,650		3,144,979

34    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Magnetite XXV Ltd. Series 2020-25A, Class D 7.658% (LIBOR 3 Month + 3.30%), 01/25/2032(e)(g)	U.S.$		3,000	$	2,690,217
Northwoods Capital XII-B Ltd. Series 2018-12BA, Class B 5.143% (LIBOR 3 Month + 1.85%), 06/15/2031(e)(g)			1,350		1,263,805
OCP CLO Ltd. Series 2021-21A, Class D 7.193% (LIBOR 3 Month + 2.95%), 07/20/2034(e)(g)			4,750		3,988,337
Octagon Investment Partners 29 Ltd. Series 2016-1A, Class DR 7.425% (LIBOR 3 Month + 3.10%), 01/24/2033(e)(g)			6,571		5,714,266
OZLM VII Ltd. Series 2014-7RA, Class CR 7.079% (LIBOR 3 Month + 3.00%), 07/17/2029(e)(g)			1,000		880,676
OZLM XVIII Ltd. Series 2018-18A, Class B 5.629% (LIBOR 3 Month + 1.55%), 04/15/2031(e)(g)			5,450		5,072,735
Palmer Square CLO Ltd. Series 2021-3A, Class D 7.029% (LIBOR 3 Month + 2.95%), 01/15/2035(e)(g)			2,400		2,051,184
Regatta XIX Funding Ltd. Series 2022-1A, Class D 7.263% (SOFR + 3.30%), 04/20/2035(e)(g)			4,423		3,813,343
Regatta XX Funding Ltd. Series 2021-2A, Class D 7.179% (LIBOR 3 Month + 3.10%), 10/15/2034(e)(g)			3,500		3,077,476
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 7.343% (LIBOR 3 Month + 3.10%), 01/20/2035(e)(g)			7,500		6,269,325
Rockford Tower CLO Ltd. Series 2017-2A, Class DR 6.929% (LIBOR 3 Month + 2.85%), 10/15/2029(e)(g)			4,444		3,908,425
Series 2021-2A, Class D 7.493% (LIBOR 3 Month + 3.25%), 07/20/2034(e)(g)			950		804,638

abfunds.com AB INCOME FUND    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2021-3A, Class D 7.493% (LIBOR 3 Month + 3.25%), 10/20/2034(e)(g)	U.S.$		8,550	$	7,193,808
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 7.393% (LIBOR 3 Month + 3.15%), 01/20/2034(e)(g)			2,400		2,087,153
Sixth Street CLO XX Ltd. Series 2021-20A, Class D 7.293% (LIBOR 3 Month + 3.05%), 10/20/2034(e)(g)			3,250		2,787,392
Venture XXVII CLO Ltd. Series 2017-27A, Class D 8.243% (LIBOR 3 Month + 4.00%), 07/20/2030(e)(g)			1,591		1,364,897
Voya CLO Ltd. Series 2019-1A, Class DR 6.929% (LIBOR 3 Month + 2.85%), 04/15/2031(e)(g)			4,595		3,928,644
Total Collateralized Loan Obligations (cost $153,546,563)					134,910,540
COLLATERALIZED MORTGAGE OBLIGATIONS – 4.7%
Risk Share Floating Rate – 4.2%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 5.436% (LIBOR 1 Month + 1.85%), 10/25/2028(e)(g)			249		248,612
Series 2019-1A, Class M2 6.286% (LIBOR 1 Month + 2.70%), 03/25/2029(e)(g)			1,340		1,327,108
Connecticut Avenue Securities Trust Series 2022-R03, Class 1M2 6.497% (SOFR + 3.50%), 03/25/2042(e)(g)			2,657		2,527,526
Eagle Re Ltd. Series 2018-1, Class M1 5.286% (LIBOR 1 Month + 1.70%), 11/25/2028(e)(g)			513		509,187
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 7.836% (LIBOR 1 Month + 4.25%), 11/25/2023(g)			1,403		1,424,968

36    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-DN1, Class B 15.086% (LIBOR 1 Month + 11.50%), 01/25/2025(g)	U.S.$		1,559	$	1,578,606
Series 2015-DNA2, Class B 11.136% (LIBOR 1 Month + 7.55%), 12/25/2027(g)			1,432		1,434,033
Series 2015-DNA3, Class B 12.936% (LIBOR 1 Month + 9.35%), 04/25/2028(g)			2,462		2,507,773
Series 2015-HQA1, Class B 12.386% (LIBOR 1 Month + 8.80%), 03/25/2028(g)			1,569		1,550,813
Series 2016-DNA1, Class B 13.586% (LIBOR 1 Month + 10.00%), 07/25/2028(g)			2,219		2,245,761
Series 2017-DNA2, Class B1 8.736% (LIBOR 1 Month + 5.15%), 10/25/2029(g)			5,178		5,430,715
Series 2017-DNA3, Class B1 8.036% (LIBOR 1 Month + 4.45%), 03/25/2030(g)			4,550		4,616,257
Series 2017-HQA3, Class B1 8.036% (LIBOR 1 Month + 4.45%), 04/25/2030(g)			9,090		8,961,522
Series 2018-DNA2, Class B1 7.286% (LIBOR 1 Month + 3.70%), 12/25/2030(e)(g)			7,000		6,880,231
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 7.986% (LIBOR 1 Month + 4.40%), 01/25/2024(g)			1,824		1,845,288
Series 2014-C04, Class 1M2 8.486% (LIBOR 1 Month + 4.90%), 11/25/2024(g)			2,366		2,431,097
Series 2014-C04, Class 2M2 8.586% (LIBOR 1 Month + 5.00%), 11/25/2024(g)			81		81,080
Series 2015-C03, Class 1M2 8.586% (LIBOR 1 Month + 5.00%), 07/25/2025(g)			881		895,198
Series 2015-C04, Class 2M2 9.136% (LIBOR 1 Month + 5.55%), 04/25/2028(g)			1,185		1,214,572
Series 2016-C01, Class 1M2 10.336% (LIBOR 1 Month + 6.75%), 08/25/2028(g)			1,065		1,106,872

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-C01, Class 2M2 10.536% (LIBOR 1 Month + 6.95%), 08/25/2028(g)	U.S.$		476	$	490,289
Series 2016-C02, Class 1M2 9.586% (LIBOR 1 Month + 6.00%), 09/25/2028(g)			2,286		2,361,616
Series 2016-C05, Class 2B 14.335% (LIBOR 1 Month + 10.75%), 01/25/2029(g)			2,739		2,810,744
Series 2016-C07, Class 2B 13.086% (LIBOR 1 Month + 9.50%), 05/25/2029(g)			1,187		1,179,459
Series 2017-C01, Class 1B1 9.336% (LIBOR 1 Month + 5.75%), 07/25/2029(g)			5,579		5,944,826
Series 2017-C03, Class 1B1 8.436% (LIBOR 1 Month + 4.85%), 10/25/2029(g)			7,080		7,337,434
Series 2017-C05, Class 1B1 7.186% (LIBOR 1 Month + 3.60%), 01/25/2030(g)			7,280		7,169,586
Series 2018-C03, Class 1B1 7.336% (LIBOR 1 Month + 3.75%), 10/25/2030(g)			7,250		7,161,686
Home Re Ltd. Series 2019-1, Class B1 7.936% (LIBOR 1 Month + 4.35%), 05/25/2029(g)(m)			2,000		1,965,980
Series 2020-1, Class M2 8.836% (LIBOR 1 Month + 5.25%), 10/25/2030(e)(g)			4,734		4,728,325
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 7.836% (LIBOR 1 Month + 4.25%), 11/25/2024(g)(m)			355		340,946
Series 2015-CH1, Class M2 9.086% (LIBOR 1 Month + 5.50%), 10/25/2025(g)(m)			651		636,339
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 6.346% (LIBOR 1 Month + 2.75%), 05/27/2023(e)(g)			1,370		1,306,085
Series 2020-1R, Class A 5.946% (LIBOR 1 Month + 2.35%), 02/27/2023(g)(m)			1,892		1,782,952

38    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Radnor Re Ltd. Series 2019-1, Class M1B 5.536% (LIBOR 1 Month + 1.95%), 02/25/2029(e)(g)	U.S.$		2,673	$	2,615,238
Series 2019-1, Class M2 6.786% (LIBOR 1 Month + 3.20%), 02/25/2029(e)(g)			6,106		5,783,169
Traingle Re Ltd. Series 2021-3, Class M1A 4.897% (SOFR + 1.90%), 02/25/2034(e)(g)			7,447		7,403,824
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 8.836% (LIBOR 1 Month + 5.25%), 11/25/2025(g)(m)			236		217,981
					110,053,698
Agency Floating Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 3119, Class PI 3.788% (7.20% – LIBOR 1 Month), 02/15/2036(g)(n)			908		118,896
Series 3856, Class KS 3.138% (6.55% – LIBOR 1 Month), 05/15/2041(g)(n)			5,290		508,691
Series 4248, Class SL 2.638% (6.05% – LIBOR 1 Month), 05/15/2041(g)(n)			514		32,872
Series 4372, Class JS 2.688% (6.10% – LIBOR 1 Month), 08/15/2044(g)(n)			2,737		235,705
Series 4570, Class ST 2.588% (6.00% – LIBOR 1 Month), 04/15/2046(g)(n)			1,277		118,448
Series 4735, Class SA 2.788% (6.20% – LIBOR 1 Month), 12/15/2047(g)(n)			6,299		614,723
Series 4763, Class SB 3.588% (7.00% – LIBOR 1 Month), 03/15/2048(g)(n)			8,758		1,198,280
Series 4774, Class BS 2.788% (6.20% – LIBOR 1 Month), 02/15/2048(g)(n)			4,262		449,461
Series 4774, Class SL 2.788% (6.20% – LIBOR 1 Month), 04/15/2048(g)(n)			5,775		599,130

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 4927, Class SJ 2.464% (6.05% – LIBOR 1 Month), 11/25/2049(g)(n)	U.S.$		2,380	$	301,372
Federal National Mortgage Association REMICs Series 2013-4, Class ST 2.564% (6.15% – LIBOR 1 Month), 02/25/2043(g)(n)			1,931		184,244
Series 2014-88, Class BS 2.564% (6.15% – LIBOR 1 Month), 01/25/2045(g)(n)			1,448		133,289
Series 2015-90, Class SA 2.564% (6.15% – LIBOR 1 Month), 12/25/2045(g)(n)			13,216		1,535,432
Series 2016-69, Class DS 2.514% (6.10% – LIBOR 1 Month), 10/25/2046(g)(n)			19,899		1,195,037
Series 2017-49, Class SP 2.564% (6.15% – LIBOR 1 Month), 07/25/2047(g)(n)			1,819		176,138
Series 2018-32, Class SB 2.614% (6.20% – LIBOR 1 Month), 05/25/2048(g)(n)			3,466		343,107
Series 2018-45, Class SL 2.614% (6.20% – LIBOR 1 Month), 06/25/2048(g)(n)			2,489		254,826
Series 2018-57, Class SL 2.614% (6.20% – LIBOR 1 Month), 08/25/2048(g)(n)			7,068		842,378
Series 2018-58, Class SA 2.614% (6.20% – LIBOR 1 Month), 08/25/2048(g)(n)			3,200		350,941
Series 2018-59, Class HS 2.614% (6.20% – LIBOR 1 Month), 08/25/2048(g)(n)			7,792		910,639
Series 2019-25, Class SA 2.464% (6.05% – LIBOR 1 Month), 06/25/2049(g)(n)			3,172		284,926
Series 2019-60, Class SJ 2.464% (6.05% – LIBOR 1 Month), 10/25/2049(g)(n)			2,830		293,196
					10,681,731
Non-Agency Fixed Rate – 0.1%
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 08/25/2036			869		486,516

40    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CHL Mortgage Pass-Through Trust Series 2007-3, Class A30 5.75%, 04/25/2037	U.S.$		457	$	235,762
Series 2007-HY4, Class 1A1 3.579%, 09/25/2047			158		136,466
Citigroup Mortgage Loan Trust Series 2007-AR4, Class 1A1A 3.328%, 03/25/2037			84		72,638
CSMC Mortgage-Backed Trust Series 2006-7, Class 3A12 6.25%, 08/25/2036			322		139,021
Wells Fargo Mortgage Backed Securities Trust Series 2007-AR7, Class A1 4.151%, 12/28/2037			542		486,997
					1,557,400
Non-Agency Floating Rate – 0.0%
First Horizon Alternative Mortgage Securities Trust Series 2007-FA2, Class 1A10 3.836% (LIBOR 1 Month + 0.25%), 04/25/2037(g)			322		83,825
Lehman XS Trust Series 2007-10H, Class 2AIO 3.872% (7.00% – LIBOR 1 Month), 07/25/2037(g)(n)			201		17,790
					101,615
Agency Fixed Rate – 0.0%
Federal National Mortgage Association REMICs Series 2013-87, Class KI 3.00%, 12/25/2037(o)			203		825
Series 2016-26, Class IO 5.00%, 05/25/2046(o)			370		60,385
					61,210
Total Collateralized Mortgage Obligations (cost $125,637,322)					122,455,654
BANK LOANS – 3.7%
Industrial – 3.2%
Capital Goods – 0.3%
Apex Tool Group, LLC 8.624% (SOFR 1 Month + 5.25%), 02/08/2029(p)			3,813		3,281,492

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Chariot Buyer LLC 7.254% (LIBOR 1 Month + 3.50%), 11/03/2028(p)	U.S.$		228	$	206,833
Granite US Holdings Corporation 7.688% (LIBOR 3 Month + 4.00%), 09/30/2026(h)(p)			3,528		3,433,616
					6,921,941
Communications - Media – 0.1%
Advantage Sales & Marketing, Inc. 8.284% (LIBOR 3 Month + 4.50%), 10/28/2027(p)			1,277		1,108,014
Coral-US Co-Borrower LLC 6.412% (LIBOR 1 Month + 3.00%), 10/15/2029(p)			1,550		1,496,851
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 6.754% (LIBOR 1 Month + 3.00%), 05/01/2026(p)			222		209,022
Univision Communications, Inc. 6.504% (LIBOR 1 Month + 2.75%), 03/15/2024(p)			175		174,066
					2,987,953
Communications - Telecommunications – 0.6%
Crown Subsea Communications Holding, Inc. 8.518% (LIBOR 1 Month + 4.75%), 04/27/2027(p)			3,967		3,873,561
Directv Financing, LLC 8.754% (LIBOR 1 Month + 5.00%), 08/02/2027(p)			2,075		1,972,616
Proofpoint, Inc. 9.320% (LIBOR 3 Month + 6.25%), 08/31/2029(p)			6,000		5,760,000
Zacapa SARL 7.803% (SOFR 3 Month + 4.25%), 03/22/2029(p)			3,291		3,136,070
					14,742,247
Consumer Cyclical - Automotive – 0.0%
Clarios Global LP 7.004% (LIBOR 1 Month + 3.25%), 04/30/2026(p)			347		336,302
Consumer Cyclical - Other – 0.1%
Caesars Resort Collection, LLC 6.504% (LIBOR 1 Month + 2.75%), 12/23/2024(p)			3,622		3,578,380

42    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. 5.865% (LIBOR 1 Month + 2.75%), 02/05/2025(p)	U.S.$		550	$	540,812
Consumer Cyclical - Retailers – 0.1%
Great Outdoors Group, LLC 7.504% (LIBOR 1 Month + 3.75%), 03/06/2028(p)			1,189		1,117,402
Restoration Hardware, Inc. 7.079% (SOFR 1 Month + 3.25%), 10/20/2028(p)			2,250		2,118,758
					3,236,160
Consumer Non-Cyclical – 0.5%
Global Medical Response, Inc. 8.004% (LIBOR 1 Month + 4.25%), 03/14/2025(p)			1,131		870,458
Kronos Acquisition Holdings, Inc. 6.820% (LIBOR 3 Month + 3.75%), 12/22/2026(p)			1,877		1,769,967
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 8.165% (LIBOR 3 Month + 3.75%), 11/16/2025(p)			1,018		897,224
Padagis LLC 8.491% (LIBOR 3 Month + 4.75%), 07/06/2028(h)(p)			1,336		1,129,318
PetSmart LLC 7.500% (LIBOR 1 Month + 3.75%), 02/11/2028(p)			4,315		4,144,572
US Radiology Specialists, Inc. (US Outpatient Imaging Services, Inc.) 8.924% (LIBOR 3 Month + 5.25%), 12/15/2027(p)			4,265		3,817,438
					12,628,977
Energy – 0.4%
CITGO Petroleum Corporation 9.365% (LIBOR 1 Month + 6.25%), 03/28/2024(p)			1,570		1,569,165
GIP II Blue Holding, L.P. 8.174% (LIBOR 3 Month + 4.50%), 09/29/2028(p)			3,754		3,715,488
Parkway Generation, LLC 8.504% (LIBOR 1 Month + 4.75%), 02/18/2029(p)			4,530		4,477,185
					9,761,838

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Other Industrial – 0.1%
American Tire Distributors, Inc. 10.608% (LIBOR 3 Month + 6.25%), 10/20/2028(p)	U.S.$		1,676	$	1,539,285
Dealer Tire, LLC 8.004% (LIBOR 1 Month + 4.25%), 12/12/2025(p)			1,293		1,268,100
Rockwood Service Corporation 8.004% (LIBOR 1 Month + 4.25%), 01/23/2027(p)			174		169,156
					2,976,541
Services – 0.1%
Amentum Government Services Holdings LLC 7.674% (LIBOR 3 Month + 4.00%), 01/29/2027(h)(p)			330		321,276
8.170% (LIBOR 3 Month + 4.00%), 01/29/2027(p)			110		104,303
Verscend Holding Corp. 7.754% (LIBOR 1 Month + 4.00%), 08/27/2025(h)(p)			1,920		1,894,086
					2,319,665
Technology – 0.9%
Ascend Learning, LLC 9.504% (LIBOR 1 Month + 5.75%), 12/10/2029(p)			930		787,012
Banff Guarantor, Inc. 9.254% (LIBOR 1 Month + 5.50%), 02/27/2026(p)			1,050		962,850
Boxer Parent Company, Inc. 7.504% (LIBOR 1 Month + 3.75%), 10/02/2025(p)			3,383		3,247,201
Endurance International Group Holdings, Inc. 6.698% (LIBOR 1 Month + 3.50%), 02/10/2028(p)			9,638		8,181,987
FINThrive Software Intermediate Holdings, Inc. 10.504% (LIBOR 1 Month + 6.75%), 12/17/2029(p)			580		495,610
Loyalty Ventures, Inc. 8.254% (LIBOR 1 Month + 4.50%), 11/03/2027(p)			4,472		1,386,299
Peraton Corp. 7.504% (LIBOR 1 Month + 3.75%), 02/01/2028(p)			1,605		1,542,908

44    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Presidio Holdings, Inc. 7.260% (LIBOR 1 Month + 3.50%), 01/22/2027(p)	U.S.$		68	$	66,072
7.920% (LIBOR 3 Month + 3.50%), 01/22/2027(h)(p)			1,542		1,508,364
Veritas US, Inc. 8.674% (LIBOR 3 Month + 5.00%), 09/01/2025(p)			5,641		4,522,457
					22,700,760
					82,731,576
Financial Institutions – 0.4%
Finance – 0.0%
Orbit Private Holdings I Ltd. 8.174% (LIBOR 3 Month + 4.50%), 12/11/2028(h)(p)			377		366,778
Insurance – 0.4%
Hub International Limited 7.232% (LIBOR 3 Month + 3.25%), 04/25/2025(p)			7		60,710
7.528% (LIBOR 3 Month + 3.25%), 04/25/2025(p)			2,805		2,698,161
Jones DesLauriers Insurance Management, Inc. 12.063% (CDOR 3 Month + 7.50%), 03/26/2029(h)(p)	CAD		7,686		5,218,321
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 7.504% (LIBOR 1 Month + 3.75%), 09/03/2026(p)	U.S.$		2,208		2,150,921
					10,128,113
					10,494,891
Utility – 0.1%
Electric – 0.1%
Granite Generation LLC 7.504% (LIBOR 1 Month + 3.75%), 11/09/2026(p)			3,667		3,561,077
Total Bank Loans (cost $106,506,263)					96,787,544
EMERGING MARKETS - CORPORATE BONDS – 3.3%
Industrial – 2.9%
Basic – 0.9%
Braskem Idesa SAPI 6.99%, 02/20/2032(e)			3,579		2,371,553
7.45%, 11/15/2029(e)			2,459		1,865,766

abfunds.com AB INCOME FUND    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
CSN Inova Ventures 6.75%, 01/28/2028(e)	U.S.$		445		$	378,361
CSN Resources SA 4.625%, 06/10/2031(e)			4,293			2,856,240
7.625%, 04/17/2026(e)			766			729,998
Eldorado Gold Corp. 6.25%, 09/01/2029(e)			2,385			1,929,107
Indika Energy Capital IV Pte Ltd. 8.25%, 10/22/2025(e)			4,123			3,875,620
OCP SA 3.75%, 06/23/2031(e)			1,011			749,277
Sasol Financing USA LLC 5.875%, 03/27/2024			1,467			1,424,824
Stillwater Mining Co. 4.00%, 11/16/2026(e)			953			780,150
4.50%, 11/16/2029(e)			891			652,212
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(e)			4,716			3,934,323
Volcan Cia Minera SAA 4.375%, 02/11/2026(e)			1,565			1,302,863
						22,850,294
Capital Goods – 0.3%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			4,430			4,040,437
6.95%, 01/17/2028(e)			2,058			1,937,247
IHS Holding Ltd. 5.625%, 11/29/2026(e)			1,243			921,995
6.25%, 11/29/2028(e)			410			293,227
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(e)			5,578			13,946
						7,206,852
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(e)			2,296			1,776,828
Communications - Telecommunications – 0.0%
C&W Senior Financing DAC 6.875%, 09/15/2027(e)			247			213,942
CT Trust 5.125%, 02/03/2032(e)			723			575,598
Digicel Group Holdings Ltd. 7.00%, 11/16/2022(f)(l)(m)			90			6,317
8.00% (5.00% Cash and 3.00% PIK), 04/01/2025(e)(l)			0	**		– 0	–

46    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Digicel International Finance Ltd./Digicel international Holdings Ltd. 8.75%, 05/25/2024(e)	U.S.$		339	$	287,182
					1,083,039
Consumer Cyclical - Other – 0.2%
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(e)			200		109,000
MGM China Holdings Ltd. 5.25%, 06/18/2025(e)			895		771,937
5.375%, 05/15/2024(e)			569		465,158
5.875%, 05/15/2026(e)			598		454,253
Studio City Co., Ltd. 7.00%, 02/15/2027(e)			336		270,480
Studio City Finance Ltd. 6.00%, 07/15/2025(e)			1,088		518,024
6.50%, 01/15/2028(e)			998		416,228
Wynn Macau Ltd. 5.50%, 01/15/2026(e)			2,168		1,485,080
5.625%, 08/26/2028(e)			1,919		1,132,210
					5,622,370
Consumer Non-Cyclical – 0.4%
BRF GmbH 4.35%, 09/29/2026(e)			941		838,666
BRF SA 4.875%, 01/24/2030(e)			4,401		3,433,606
MARB BondCo PLC 3.95%, 01/29/2031(e)			4,509		3,314,115
Natura & Co. Luxembourg Holdings SARL 6.00%, 04/19/2029(e)			2,088		1,734,971
Natura Cosmeticos SA 4.125%, 05/03/2028(e)			2,828		2,193,114
Tonon Luxembourg SA 6.50% (0.50% Cash and 6.00% PIK), 10/31/2024(i)(k)(l)(m)(q)			871		87
Ulker Biskuvi Sanayi AS 6.95%, 10/30/2025(e)			609		422,494
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(h)(i)(j)(k)(m)			4,738		474
10.875%, 01/13/2020(h)(i)(j)(k)(m)			750		75
11.75%, 02/09/2022(h)(i)(j)(k)(m)			1,690		169
					11,937,771
Energy – 0.9%
Acu Petroleo Luxembourg SARL 7.50%, 01/13/2032(e)			2,230		1,740,961
Gran Tierra Energy, Inc. 7.75%, 05/23/2027(e)			1,998		1,541,637

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Greenko Wind Projects Mauritius Ltd. 5.50%, 04/06/2025(e)	U.S.$		1,925	$	1,631,437
Kosmos Energy Ltd. 7.50%, 03/01/2028(e)			1,388		1,087,671
Leviathan Bond Ltd. 5.75%, 06/30/2023(e)			4,992		4,935,216
6.125%, 06/30/2025(e)			1,763		1,676,837
Medco Platinum Road Pte Ltd. 6.75%, 01/30/2025(e)			3,831		3,652,140
MV24 Capital BV 6.748%, 06/01/2034(e)			1,593		1,313,453
Peru LNG SRL 5.375%, 03/22/2030(e)			3,367		2,644,358
ReNew Power Pvt Ltd. 5.875%, 03/05/2027(e)			211		188,357
SEPLAT Energy PLC 7.75%, 04/01/2026(e)			2,065		1,596,245
SierraCol Energy Andina LLC 6.00%, 06/15/2028(e)			2,098		1,375,764
					23,384,076
Services – 0.1%
Bidvest Group UK PLC (The) 3.625%, 09/23/2026(e)			1,667		1,404,760
Technology – 0.0%
CA Magnum Holdings 5.375%, 10/31/2026(e)			1,397		1,169,987
Transportation - Services – 0.0%
JSW Infrastructure Ltd. 4.95%, 01/21/2029(e)			583		434,627
					76,870,604
Utility – 0.3%
Electric – 0.3%
AES Andes SA 6.35%, 10/07/2079(e)			1,816		1,443,720
India Clean Energy Holdings 4.50%, 04/18/2027(e)			2,686		1,866,770
Investment Energy Resources Ltd. 6.25%, 04/26/2029(e)			1,306		1,097,693
JSW Hydro Energy Ltd. 4.125%, 05/18/2031(e)			1,224		941,848
Light Servicos de Eletricidade SA/Light Energia SA 4.375%, 06/18/2026(e)			2,245		1,809,470

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Star Energy Geothermal Wayang Windu Ltd. 6.75%, 04/24/2033(e)	U.S.$		750	$	663,413
Terraform Global Operating LP 6.125%, 03/01/2026(m)			289		265,978
					8,088,892
Financial Institutions – 0.1%
Insurance – 0.1%
Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc. 7.625% (7.625% Cash or 8.375% PIK), 10/15/2025(e)(l)			1,938		1,814,307
Other Finance – 0.0%
OEC Finance Ltd. 4.375%, 10/25/2029(e)(l)			3,891		75,951
5.25%, 12/27/2033(e)(l)			1,221		25,514
					101,465
REITs – 0.0%
China Aoyuan Group Ltd. 5.375%, 09/13/2022(e)(i)(j)			200		6,000
5.88%, 03/01/2027(e)(i)(q)			757		22,710
7.95%, 03/01/2027(e)(i)(q)			644		21,654
China SCE Group Holdings Ltd. 6.00%, 02/04/2026(e)			1,319		92,330
KWG Group Holdings Ltd. 5.95%, 08/10/2025(e)			339		35,595
6.00%, 08/14/2026(e)			400		37,200
7.40%, 01/13/2027(e)			396		35,640
Powerlong Real Estate Holdings Ltd. 4.90%, 05/13/2026(e)			684		54,720
5.95%, 04/30/2025(e)			689		48,359
Shimao Group Holdings Ltd. 5.20%, 01/30/2025(e)(i)(q)			255		12,750
5.20%, 01/16/2027(e)(i)(q)			800		40,000
5.60%, 07/15/2026(e)(i)(q)			806		40,300
Sunac China Holdings Ltd. 5.95%, 04/26/2024(e)(i)(q)			588		33,810
6.50%, 01/10/2025(e)(i)(q)			229		12,595
6.50%, 01/26/2026(e)(i)(q)			305		16,775
6.65%, 08/03/2024(e)(i)(q)			225		12,938
7.00%, 07/09/2025(e)(i)(q)			205		11,275
Times China Holdings Ltd. 5.55%, 06/04/2024(e)			234		17,550
5.75%, 01/14/2027(e)			887		44,350

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.20%, 03/22/2026(e)	U.S.$		380	$	20,900
6.60%, 03/02/2023(e)			200		25,000
6.75%, 07/08/2025(e)			434		28,210
Yango Justice International Ltd. 7.50%, 02/17/2025(e)(i)(q)			898		13,470
7.875%, 09/04/2024(e)(i)(q)			342		5,130
8.25%, 11/25/2023(e)(i)(q)			400		6,000
10.25%, 09/15/2022(i)(j)			215		3,225
Zhenro Properties Group Ltd. 7.10%, 09/10/2024(e)(i)(q)			233		4,660
					703,146
					2,618,918
Total Emerging Markets - Corporate Bonds (cost $131,413,385)					87,578,414
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.6%
Non-Agency Fixed Rate CMBS – 1.9%
BANK Series 2020-BN25, Class XA 0.883%, 01/15/2063(o)			65,536		3,063,860
Bank of America Merrill Lynch Commercial Mortgage Trust Series 2016-UB10, Class C 4.839%, 07/15/2049			372		334,377
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.334%, 05/15/2052(o)			10,793		678,420
CD Mortgage Trust Series 2017-CD3, Class XA 0.966%, 02/10/2050(o)			13,843		430,461
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.608%, 05/10/2058(o)			12,424		514,225
Citigroup Commercial Mortgage Trust Series 2013-GC15, Class C 5.163%, 09/10/2046			516		501,641
Commercial Mortgage Trust Series 2014-CR15, Class XA 0.623%, 02/10/2047(o)			30,482		184,205
Series 2015-CR27, Class XA 0.907%, 10/10/2048(o)			6,179		130,538
CSAIL Commercial Mortgage Trust Series 2019-C15, Class B 4.476%, 03/15/2052			960		833,823

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GS Mortgage Securities Trust Series 2011-GC5, Class C 5.155%, 08/10/2044(e)	U.S.$		375	$	298,249
Series 2011-GC5, Class D 5.155%, 08/10/2044(e)			14,025		5,937,561
Series 2016-GS3, Class XA 1.197%, 10/10/2049(o)			30,005		1,062,514
Series 2019-GC39, Class XA 1.129%, 05/10/2052(o)			15,596		733,745
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047			1,599		1,486,207
Series 2014-C24, Class C 4.384%, 11/15/2047			5,869		4,968,709
JPMDB Commercial Mortgage Securities Trust Series 2019-COR6, Class XA 0.931%, 11/13/2052(o)			36,991		1,668,604
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-LC9, Class E 4.321%, 12/15/2047(e)			7,500		6,754,410
Series 2012-LC9, Class G 4.321%, 12/15/2047(e)			831		610,047
Series 2016-JP2, Class XA 1.77%, 08/15/2049(o)			15,170		755,291
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			632		277,149
LCCM Series 2017-LC26, Class XA 1.52%, 07/12/2050(e)(o)			33,108		1,719,039
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9, Class D 4.104%, 05/15/2046(e)			680		609,451
Series 2014-C18, Class C 4.473%, 10/15/2047			4,408		4,073,534
Series 2015-C22, Class XA 1.003%, 04/15/2048(o)			11,357		189,113
UBS Commercial Mortgage Trust Series 2012-C1, Class D 6.445%, 05/10/2045(e)			280		254,653
Series 2017-C1, Class XA 1.526%, 06/15/2050(o)			6,911		356,790

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-C16, Class XA 1.57%, 04/15/2052(o)	U.S.$		15,507	$	1,013,411
Series 2019-C18, Class XA 1.023%, 12/15/2052(o)			43,652		2,035,546
UBS-Barclays Commercial Mortgage Trust Series 2013-C5, Class B 3.649%, 03/10/2046(e)			2,414		2,367,891
Series 2013-C5, Class C 4.175%, 03/10/2046(e)			782		709,959
Wells Fargo Commercial Mortgage Trust Series 2015-LC20, Class XA 1.288%, 04/15/2050(o)			7,670		166,955
Series 2016-C36, Class XA 1.184%, 11/15/2059(o)			43,052		1,512,916
Series 2016-LC24, Class XA 1.605%, 10/15/2049(o)			27,077		1,278,272
Series 2016-LC25, Class XA 0.83%, 12/15/2059(o)			17,162		456,145
Series 2019-C52, Class XA 1.604%, 08/15/2052(o)			18,880		1,359,919
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class E 4.843%, 06/15/2044(e)			489		391,390
Series 2014-LC14, Class C 4.344%, 03/15/2047			134		126,273
					49,845,293
Non-Agency Floating Rate CMBS – 0.7%
BFLD Trust Series 2019-DPLO, Class E 5.652% (LIBOR 1 Month + 2.24%), 10/15/2034(e)(g)			11,227		10,559,497
DBWF Mortgage Trust Series 2018-GLKS, Class E 6.498% (LIBOR 1 Month + 3.02%), 12/19/2030(e)(g)			1,994		1,853,511
Great Wolf Trust Series 2019-WOLF, Class D 5.345% (LIBOR 1 Month + 1.93%), 12/15/2036(e)(g)			5,005		4,704,264
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 7.662% (LIBOR 1 Month + 4.25%), 05/15/2036(e)(g)			1,651		1,529,859
					18,647,131

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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 0.131%, 11/16/2045(o)	U.S.$		92	$	1
Total Commercial Mortgage-Backed Securities (cost $81,340,615)					68,492,425
EMERGING MARKETS - SOVEREIGNS – 1.9%
Angola – 0.2%
Angolan Government International Bond 8.00%, 11/26/2029(e)			6,780		5,508,750
8.25%, 05/09/2028(e)			460		385,250
					5,894,000
Dominican Republic – 0.5%
Dominican Republic International Bond 4.50%, 01/30/2030(e)			9,442		7,537,667
4.875%, 09/23/2032(e)			3,361		2,578,097
6.40%, 06/05/2049(e)			2,287		1,637,778
					11,753,542
Ecuador – 0.3%
Ecuador Government International Bond 1.50%, 07/31/2040(e)			1,114		361,134
2.50%, 07/31/2035(e)			13,778		5,005,665
5.50%, 07/31/2030(e)			2,144		1,136,243
					6,503,042
El Salvador – 0.1%
El Salvador Government International Bond 7.125%, 01/20/2050(e)			235		78,843
7.625%, 02/01/2041(e)			158		53,799
8.625%, 02/28/2029(e)			7,640		3,043,107
9.50%, 07/15/2052(e)			210		78,750
					3,254,499
Ghana – 0.1%
Ghana Government International Bond 6.375%, 02/11/2027(e)			7,940		2,382,000
8.625%, 04/07/2034(e)			1,769		497,531
8.627%, 06/16/2049(e)			238		63,858
8.95%, 03/26/2051(e)			1,313		367,066
					3,310,455

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ivory Coast – 0.1%
Ivory Coast Government International Bond 4.875%, 01/30/2032(e)	EUR		3,137	$	2,166,804
6.375%, 03/03/2028(e)	U.S.$		1,377		1,246,443
					3,413,247
Kenya – 0.1%
Republic of Kenya Government International Bond 7.00%, 05/22/2027(e)			1,680		1,331,400
Lebanon – 0.0%
Lebanon Government International Bond 6.60%, 11/27/2026(e)(i)(q)			1,284		72,867
6.65%, 04/22/2024(e)(i)(q)			507		28,931
6.85%, 03/23/2027(e)(i)(q)			1,053		59,428
					161,226
Nigeria – 0.1%
Nigeria Government International Bond 6.125%, 09/28/2028(e)			233		153,197
7.625%, 11/28/2047(e)			2,963		1,674,095
7.696%, 02/23/2038(e)			1,729		1,011,465
7.875%, 02/16/2032(e)			426		272,640
					3,111,397
Pakistan – 0.0%
Pakistan Government International Bond 6.875%, 12/05/2027(e)			245		75,977
7.375%, 04/08/2031(e)			3,816		1,154,760
					1,230,737
Senegal – 0.3%
Senegal Government International Bond 6.25%, 05/23/2033(e)			5,158		3,845,289
6.75%, 03/13/2048(e)			6,453		4,086,766
					7,932,055
Ukraine – 0.1%
Ukraine Government International Bond 7.253%, 03/15/2035(e)			4,689		699,833
7.375%, 09/25/2034(e)			3,586		537,452
					1,237,285
Total Emerging Markets - Sovereigns (cost $87,930,610)					49,132,885

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
AGENCIES – 1.2%
Agency Debentures – 1.2%
Federal Home Loan Banks 5.50%, 07/15/2036	U.S.$		8,695	$	9,224,091
Federal Home Loan Mortgage Corp. 6.25%, 07/15/2032			10,400		11,754,281
6.75%, 03/15/2031			4,000		4,608,094
Series GDIF 6.75%, 09/15/2029			4,606		5,245,710
Total Agencies (cost $35,033,655)					30,832,176
QUASI-SOVEREIGNS – 0.8%
Quasi-Sovereign Bonds – 0.8%
Indonesia – 0.1%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(e)			2,044		1,952,245
Kazakhstan – 0.1%
KazMunayGas National Co. JSC 4.75%, 04/24/2025(e)			768		714,864
5.375%, 04/24/2030(e)			1,940		1,586,920
					2,301,784
Mexico – 0.5%
Comision Federal de Electricidad 4.688%, 05/15/2029(e)			4,031		3,396,873
Petroleos Mexicanos 5.95%, 01/28/2031			6,037		4,337,585
6.49%, 01/23/2027			1,455		1,270,797
6.75%, 09/21/2047			8,071		4,854,706
6.95%, 01/28/2060			3,090		1,842,413
					15,702,374
Ukraine – 0.1%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026(i)(m)(q)			2,168		306,636
State Agency of Roads of Ukraine 6.25%, 06/24/2030(m)			7,856		1,017,843
					1,324,479
Total Quasi-Sovereigns (cost $34,151,028)					21,280,882

abfunds.com AB INCOME FUND    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - SOVEREIGN BONDS – 0.5%
Colombia – 0.2%
Colombia Government International Bond 3.125%, 04/15/2031	U.S.$		864	$	592,542
3.25%, 04/22/2032			8,612		5,714,062
					6,306,604
Mexico – 0.1%
Mexico Government International Bond 2.659%, 05/24/2031			3,159		2,446,646
Panama – 0.2%
Panama Notas del Tesoro 3.75%, 04/17/2026			5,027		4,697,882
Peru – 0.0%
Peruvian Government International Bond 2.392%, 01/23/2026			247		222,192
Total Governments - Sovereign Bonds (cost $17,477,957)					13,673,324
ASSET-BACKED SECURITIES – 0.5%
Other ABS - Fixed Rate – 0.3%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.552%, 11/16/2043(m)			137		129,255
Series 2019-36, Class PT 13.124%, 10/17/2044(m)			369		352,042
Series 2019-43, Class PT 0.389%, 11/15/2044(m)			13		12,501
Marlette Funding Trust Series 2018-4A, Class C 4.91%, 12/15/2028(e)			89		88,508
Series 2019-2A, Class C 4.11%, 07/16/2029(e)			1,161		1,151,543
Series 2019-3A, Class C 3.79%, 09/17/2029(e)			1,775		1,755,079
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025(h)(k)(m)			108		104,762
SoFi Consumer Loan Program Trust Series 2019-4, Class D 3.48%, 08/25/2028(e)			3,000		2,983,574
					6,577,264

56    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Autos - Fixed Rate – 0.2%
Flagship Credit Auto Trust Series 2019-4, Class E 4.11%, 03/15/2027(e)	U.S.$		2,970	$	2,726,868
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(e)			2,551		2,529,598
					5,256,466
Total Asset-Backed Securities (cost $12,109,268)					11,833,730
		Shares
COMMON STOCKS – 0.4%
Energy – 0.2%
Energy Equipment & Services – 0.0%
Diamond Offshore Drilling, Inc.(e)(i)			22,730		223,890
Vantage Drilling International(i)			5,988		107,784
					331,674
Oil, Gas & Consumable Fuels – 0.2%
Berry Corp.			78,098		692,729
Chord Energy Corp.			4,334		663,492
Civitas Resources, Inc.			5,127		358,429
Denbury, Inc.(i)			6,516		595,628
Golden Energy Offshore Services AS(i)			1,497,659		251,383
Nordic Aviation Capital AS(h)(i)			103,735		2,178,435
SandRidge Energy, Inc.(i)			105		1,983
					4,742,079
					5,073,753
Consumer Discretionary – 0.1%
Auto Components – 0.0%
Energy Technology(h)(i)(k)			497		62,125
Internet & Catalog Retail – 0.0%
GOLO Mobile, Inc.(h)(i)(k)			30,264		– 0	–
Multiline Retail – 0.1%
ATD New Holdings, Inc.(i)			29,486		2,108,249
					2,170,374
Consumer Staples – 0.1%
Household Products – 0.1%
Southeastern Grocers, Inc.(h)(i)(k)			71,086		1,315,091

abfunds.com AB INCOME FUND    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

Company		Shares		U.S. $ Value
Communication Services – 0.0%
Diversified Telecommunication Services – 0.0%
Intelsat SA/Luxembourg			46,202	$	1,155,050
Intelsat Jackson Holdings SA(h)(i)(k)			9,676		– 0	–
					1,155,050
Media – 0.0%
iHeartMedia, Inc. – Class A(i)			14,385		119,108
					1,274,158
Information Technology – 0.0%
Software – 0.0%
Monitronics International, Inc.(i)			34,245		8,561
Paysafe AG Tracker(h)(i)			71,679		– 0	–
Paysafe Ltd.(i)			100,908		147,326
					155,887
Health Care – 0.0%
Pharmaceuticals – 0.0%
Mallinckrodt PLC(i)			5,739		87,003
Total Common Stocks (cost $14,460,449)					10,076,266
		Principal Amount (000)
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.3%
United States – 0.3%
Texas Transportation Commission State Highway Fund Series 2010-B 5.178%, 04/01/2030	U.S.$		2,560		2,520,559
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(e)			6,915		5,911,232
Total Local Governments – US Municipal Bonds (cost $9,475,000)					8,431,791
		Shares
PREFERRED STOCKS – 0.1%
Industrial – 0.1%
Auto Components – 0.1%
Energy Technology 0.00%(h)(i)(k)			3,093		1,546,500

58    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Energy – 0.0%
Gulfport Energy Corp. 10.00%(h)(i)		113	$	678,000
Total Preferred Stocks (cost $2,416,822)				2,224,500
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/2022(i)		2,936		88
Encore Automotive Acceptance, expiring 07/05/2031(h)(i)(k)		12		– 0	–
Flexpath Capital, Inc., expiring 04/15/2031(h)(i)(k)		17,195		– 0	–
Total Warrants (cost $0)				88
SHORT-TERM INVESTMENTS – 0.2%
Investment Companies – 0.2%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(r)(s)(t) (cost $5,641,740)		5,641,740		5,641,740
Total Investments – 148.5% (cost $4,234,395,928)				3,905,967,976
Other assets less liabilities – (48.5)%				(1,275,779,597	)
Net Assets – 100.0%			$	2,630,188,379

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
Long Gilt Futures		11		December 2022	$	1,288,349	$	(99,529	)
U.S. Long Bond (CBT) Futures		1,185		December 2022		142,792,500		(19,871,589	)
U.S. T-Note 2 Yr (CBT) Futures		2,567		December 2022		524,650,678		(5,212,823	)
U.S. T-Note 10 Yr (CBT) Futures		4,133		December 2022		457,083,969		(21,383,283	)
U.S. Ultra Bond (CBT) Futures		1,315		December 2022		167,867,969		(29,590,897	)
Sold Contracts
Euro Buxl 30 Yr Bond Futures		13		December 2022		1,852,830		184,989
Euro-BOBL Futures		18		December 2022		2,128,749		63,845
Euro-Bund Futures		50		December 2022		6,840,665		298,359
Euro-Schatz Futures		168		December 2022		17,753,985		220,668
U.S. 10 Yr Ultra Futures		2,722		December 2022		315,709,469		27,611,215
U.S. T-Note 5 Yr (CBT) Futures		6,410		December 2022		683,265,938		6,786,441
							$	(40,992,604	)

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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)
Bank of America, NA		EUR	32,461		USD	31,358		12/08/2022	$	(810,141	)
Citibank, NA		CAD	211,686		USD	155,117		01/19/2023		(433,336	)
Citibank, NA		USD	1,899		AUD	2,993		01/19/2023		20,537
JPMorgan Chase Bank		USD	2,761		EUR	2,815		12/08/2022		28,834
Morgan Stanley Capital Services, Inc.		GBP	1,077		USD	1,281		11/17/2022		45,507
State Street Bank & Trust Co.		EUR	187		USD	184		12/08/2022		(1,404	)
									$	(1,150,003	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)		Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
iTraxx Xover Series 38, 5 Year Index, 12/20/2027*		5.00	%		Quarterly		5.50	%		EUR  13,220	$	(205,521	)	$	(551,169	)	$	345,648

* 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	$	1,053,036	$	– 0	–	$	1,053,036
USD	46,860		04/02/2024		2.851%		3 Month LIBOR		Semi-Annual/ Quarterly		1,406,568		– 0	–		1,406,568
USD	30,755		02/10/2025		2.034%		3 Month LIBOR		Semi-Annual/ Quarterly		1,901,205		– 0	–		1,901,205
USD	6,010		06/09/2025		2.491%		3 Month LIBOR		Semi-Annual/ Quarterly		291,477		– 0	–		291,477
USD	10,000		01/11/2027		2.285%		3 Month LIBOR		Semi-Annual/ Quarterly		757,389		– 0	–		757,389
USD	11,920		04/26/2027		2.287%		3 Month LIBOR		Semi-Annual/ Quarterly		1,012,259		– 0	–		1,012,259
										$	6,421,934	$	– 0	–	$	6,421,934

60    ^|    AB INCOME FUND abfunds.com

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, 2022			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		7.50	%		USD	3,600	$	(1,371,340	)	$	(83,966	)	$	(1,287,374	)
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	2,880		(1,097,072	)		(414,890	)		(682,182	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50	%		USD	831		(188,133	)		(211,018	)		22,885
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	2,078		(470,570	)		(483,828	)		13,258
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	1,559		(352,967	)		(362,912	)		9,945
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	114		(25,716	)		(6,748	)		(18,968	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	450		(101,912	)		(47,911	)		(54,001	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	802		(181,635	)		(120,662	)		(60,973	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	700		(158,494	)		(58,345	)		(100,149	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	1,070		(242,338	)		(102,454	)		(139,884	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	1,378		(312,075	)		(131,111	)		(180,964	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	3,500		(792,472	)		(337,825	)		(454,647	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,690		(1,514,731	)		(630,298	)		(884,433	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,690		(1,514,731	)		(630,298	)		(884,433	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,320		(1,431,046	)		(513,979	)		(917,067	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,695		(1,515,840	)		(395,820	)		(1,120,020	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	330		(36,129	)		(12,294	)		(23,835	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	660		(72,384	)		(25,098	)		(47,286	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	1,650		(180,896	)		(61,555	)		(119,341	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	3,779		(414,169	)		(192,123	)		(222,046	)

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PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00	%		Monthly		7.50	%		USD	8,010	$	(957,108	)	$	(233,985	)	$	(723,123	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	940		(212,857	)		(109,642	)		(103,215	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,454		(1,461,318	)		(734,589	)		(726,729	)
Goldman Sachs International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	13,777		(1,510,122	)		(568,252	)		(941,870	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	11,880		(4,525,422	)		(2,527,802	)		(1,997,620	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	4,426		(1,002,160	)		(675,546	)		(326,614	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	3,004		(680,100	)		(328,864	)		(351,236	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,179		(1,399,031	)		(956,643	)		(442,388	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	2,699		(1,027,956	)		(492,924	)		(535,032	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	2,786		(1,061,143	)		(501,486	)		(559,657	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	2,100		(475,484	)		(124,778	)		(350,706	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	3,160		(715,444	)		(255,670	)		(459,774	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	6,680		(1,512,512	)		(709,432	)		(803,080	)
Morgan Stanley & Co. International plc
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	170		(18,673	)		(6,585	)		(12,088	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	383		(86,696	)		(30,046	)		(56,650	)
												$	(28,620,676	)	$	(13,079,379	)	$	(15,541,297	)

* Termination date

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Currency		Principal Amount (000)		Interest Rate			Maturity		U.S. $ Value at October 31, 2022
Barclays Capital, Inc.†		USD		3,095		(1.25	%)*		—	$	3,091,884
Barclays Capital, Inc.†		USD		861		2.50	%		—		863,444
First Boston†		EUR		2,236		0.25	%		—		2,209,922
First Boston†		EUR		1,103		(0.25	%)*		—		1,089,644
HSBC Securities (USA), Inc.†		USD		229,363		3.10	%		—		229,441,503

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PORTFOLIO OF INVESTMENTS (continued)

Broker	Currency		Principal Amount (000)		Interest Rate			Maturity		U.S. $ Value at October 31, 2022
HSBC Securities (USA), Inc.†		USD		139,300		3.10	%		—	$	139,300,000
JPMorgan Chase Bank†		USD		460,856		3.11	%		—		461,015,501
										$	837,011,898

* 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, 2022.

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

$

829,757,004

$

– 0

–

$

– 0

–

$

– 0

–

$

829,757,004

Corporates – Non-Investment Grade

7,254,894

– 0

–

– 0

–

– 0

–

7,254,894

Total

$

837,011,898

$

– 0

–

$

– 0

–

$

– 0

–

$

837,011,898

** Principal amount less than 500.

(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) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts.

(d) Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps.

(e) 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, 2022, the aggregate market value of these securities amounted to $826,873,669 or 31.4% of net assets.

(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, 2022.

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

(i) Non-income producing security.

(j) Defaulted matured security.

(k) Fair valued by the Adviser.

(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, 2022.

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PORTFOLIO OF INVESTMENTS (continued)

(m) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.26% of net assets as of October 31, 2022, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 11.552%, 11/16/2043		09/27/2018	$	136,560		$	129,255			0.00	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-36, Class PT 13.124%, 10/17/2044		09/04/2019		368,729			352,042			0.01	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 0.389%, 11/15/2044		10/09/2019		13,481			12,501			0.00	%
Digicel Group Holdings Ltd. 7.00%, 11/16/2022		06/21/2019		19,246			6,317			0.00	%
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 7.936%, 05/25/2029		12/20/2019		2,057,670			1,965,980			0.07	%
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 7.836%, 11/25/2024		11/06/2015		353,964			340,946			0.01	%
JPMorgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 9.086%, 10/25/2025		09/18/2015		648,642			636,339			0.02	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		861,787			– 0	–		0.00	%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026		11/04/2019		2,168,000			306,636			0.01	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 5.946%, 02/27/2023		02/11/2020		1,891,785			1,782,952			0.07	%
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025		07/19/2017		34,727			104,762			0.00	%
State Agency of Roads of Ukraine 6.25%, 06/24/2030		06/17/2021		7,856,000			1,017,843			0.04	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018		289,000			265,978			0.01	%

64    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Tonon Luxembourg SA 6.50%, 10/31/2024		01/16/2013	$	1,804,783	$	87		0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		06/19/2013		3,510,949		474		0.00	%
Virgolino de Oliveira Finance SA 10.875%, 01/13/2020		06/09/2014		745,965		75		0.00	%
Virgolino de Oliveira Finance SA 11.75%, 02/09/2022		01/29/2014		916,308		169		0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 8.836%, 11/25/2025		09/06/2016		237,621		217,981		0.01	%

(n) Inverse interest only security.

(o) IO – Interest Only.

(p) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the CDOR/SOFR or the LIBOR/CDOR/SOFR floor plus a spread October 31, 2022.

(q) Defaulted.

(r) Affiliated investments.

(s) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed

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.

abfunds.com AB INCOME FUND    ^|    65

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $4,228,754,188)	$	3,900,326,236
Affiliated issuers (cost $5,641,740)		5,641,740
Cash		8,456,938
Cash collateral due from broker		1,033,000
Foreign currencies, at value (cost $402,708)		394,713
Receivable for investment securities sold		216,860,608
Unaffiliated interest and dividends receivable		25,364,226
Receivable for capital stock sold		6,831,850
Receivable for variation margin on centrally cleared swaps		164,046
Unrealized appreciation on forward currency exchange contracts		94,878
Affiliated dividends receivable		18,253
Other assets		42,307
Total assets		4,165,228,795
Liabilities
Payable for reverse repurchase agreements		837,011,898
Payable for investment securities purchased		652,257,108
Market value on credit default swaps (net premiums received $13,079,379)		28,620,676
Payable for capital stock repurchased		11,656,955
Unrealized depreciation on forward currency exchange contracts		1,244,881
Payable for variation margin on futures		1,189,797
Advisory fee payable		1,018,348
Dividends payable		730,068
Foreign capital gains tax payable		360,410
Distribution fee payable		125,760
Transfer Agent fee payable		62,467
Administrative fee payable		32,692
Directors’ fees payable		4,853
Accrued expenses and other liabilities		724,503
Total liabilities		1,535,040,416
Net Assets	$	2,630,188,379
Composition of Net Assets
Capital stock, at par	$	424,204
Additional paid-in capital		3,519,715,614
Accumulated loss		(889,951,439	)
Net Assets	$	2,630,188,379

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

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	159,887,152		25,814,291	$	6.19	*
C	$	113,981,584		18,381,750	$	6.20
Advisor	$	2,335,294,081		376,616,260	$	6.20
Z	$	21,025,562		3,391,869	$	6.20

* The maximum offering price per share for Class A shares was $6.46 which reflects a sales charge of 4.25%.

See notes to financial statements.

66    ^|    AB INCOME FUND abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest	$	153,161,830
Dividends
Unaffiliated issuers		322,872
Affiliated issuers		137,770
Other income		52,102		$	153,674,574
Expenses
Advisory fee (see Note B)		15,974,539
Distribution fee—Class A		542,449
Distribution fee—Class C		1,556,753
Transfer agency—Class A		177,135
Transfer agency—Class C		127,075
Transfer agency—Advisor Class		2,672,176
Transfer agency—Class Z		5,385
Custody and accounting		398,416
Printing		262,853
Audit and tax		167,389
Registration fees		116,912
Administrative		92,045
Legal		70,642
Directors’ fees		64,199
Miscellaneous		71,895
Total expenses before interest expense		22,299,863
Interest expense		9,932,151
Total expenses		32,232,014
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,093,142	)
Net expenses					31,138,872
Net investment income					122,535,702
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					(475,049,337	)
Forward currency exchange contracts					11,323,255
Futures					(31,527,848	)
Written Options					2,997
Swaps					(24,041,069	)
Written Swaptions					(56,399	)
Foreign currency transactions					(18,474,283	)
Net change in unrealized appreciation (depreciation) of:
Investments(b)					(333,950,286	)
Forward currency exchange contracts					7,236,557
Futures					(46,553,976	)
Swaps					63,228,566
Written Swaptions					(258,487	)
Foreign currency denominated assets and liabilities					(438,888	)
Net loss on investment and foreign currency transactions					(848,559,198	)
Net Decrease in Net Assets from Operations				$	(726,023,496	)

(a) Net of foreign realized capital gains taxes of $85,657.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $154,107.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    67

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	122,535,702		$	152,778,034
Net realized gain (loss) on investment and foreign currency transactions		(537,822,684	)		50,218,675
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(310,736,514	)		(82,969,291	)
Contributions from Affiliates (see Note B)		– 0	–		1,723,972
Net increase (decrease) in net assets from operations		(726,023,496	)		121,751,390
Distributions to Shareholders
Class A		(7,242,847	)		(9,801,938	)
Class C		(4,015,362	)		(5,496,599	)
Advisor Class		(117,190,413	)		(150,065,239	)
Class Z		(938,821	)		(986,960	)
Capital Stock Transactions
Net increase (decrease)		(1,158,104,578	)		65,001,121
Total increase (decrease)		(2,013,515,517	)		20,401,775
Net Assets
Beginning of period		4,643,703,896			4,623,302,121
End of period	$	2,630,188,379		$	4,643,703,896

See notes to financial statements.

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STATEMENT OF CASH FLOWS

For the year ended October 31, 2022

Cash flows from operating activities
Net decrease in net assets from operations				$	(726,023,496	)
Reconciliation of net decrease in net assets from operations to net increase in cash from operating activities
Purchases of long-term investments	$	(8,522,534,036	)
Purchases of short-term investments		(941,157,456	)
Proceeds from disposition of long-term investments		9,865,544,669
Proceeds from disposition of short-term investments		1,046,688,236
Net realized loss on investment transactions and foreign currency transactions		537,822,684
Net realized gain on forward currency exchange contracts		11,323,255
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		310,736,514
Net accretion of bond discount and amortization of bond premium		62,402,848
Increase in receivable for investments sold		(212,699,654	)
Decrease in interest receivable		40,357,168
Increase in affiliated dividends receivable		(17,500	)
Increase in other assets		(16,330	)
Decrease in cash collateral due from broker		1,740,000
Increase in payable for investments purchased		407,740,661
Decrease in cash collateral due to broker		(2,780,000	)
Decrease in advisory fee payable		(777,609	)
Decrease in administrative fee payable		(165	)
Decrease in Foreign capital gains tax payable		(68,450	)
Decrease in Transfer Agent fee payable		(6,289	)
Decrease in distribution fee payable		(99,132	)
Decrease in Directors’ fee payable		(1,506	)
Decrease in accrued expenses		(105,673	)
Proceeds from options written, net		2,997
Payments on swaptions written, net		(467,961	)
Payments on swaps, net		(45,268,450	)
Payments for exchange-traded derivatives settlements, net		(67,959,983	)
Total adjustments					2,490,398,838
Net cash provided by (used in) operating activities					1,764,375,342
Cash flows from financing activities
Redemptions of capital stock, net		(1,242,993,396	)
Cash dividends paid (net of dividend reinvestments)†		(43,865,877	)
Repayment of reverse repurchase agreements		(474,120,662	)
Net cash provided by (used in) financing activities					(1,760,979,935	)
Effect of exchange rate on cash					(18,913,171	)
Net decrease in cash					(15,517,764	)
Cash at beginning of year					24,369,415
Cash at end of year				$	8,851,651
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	85,876,697
Interest expense paid during the year	$	9,815,884

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 INCOME FUND    ^|    69

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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. 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 convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5

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NOTES TO FINANCIAL STATEMENTS (continued)

of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

abfunds.com AB INCOME FUND    ^|     71

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 modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

abfunds.com AB INCOME FUND    ^|     73

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, 2022:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments – Treasuries

$

– 0

–

$

1,986,377,291

– 0

–

$

1,986,377,291

Mortgage Pass-Throughs

– 0

–

513,787,329

– 0

–

513,787,329

Corporates – Investment Grade

– 0

–

458,751,171

– 0

–

458,751,171

Corporates – Non-Investment Grade

– 0

–

278,895,379

4,804,847

(a)

283,700,226

Collateralized Loan Obligations

– 0

–

134,910,540

– 0

–

134,910,540

Collateralized Mortgage Obligations

– 0

–

122,455,654

– 0

–

122,455,654

Bank Loans

– 0

–

82,745,410

14,042,134

96,787,544

Emerging Markets – Corporate Bonds

– 0

–

87,577,696

718

(a)

87,578,414

Commercial Mortgage-Backed Securities

– 0

–

68,492,425

– 0

–

68,492,425

Emerging Markets – Sovereigns

– 0

–

49,132,885

– 0

–

49,132,885

Agencies

– 0

–

30,832,176

– 0

–

30,832,176

Quasi-Sovereigns

– 0

–

21,280,882

– 0

–

21,280,882

Governments – Sovereign Bonds

– 0

–

13,673,324

– 0

–

13,673,324

Asset-Backed Securities

– 0

–

11,728,968

104,762

11,833,730

Common Stocks

3,248,755

3,271,860

3,555,651

(a)

10,076,266

Local Governments – US Municipal Bonds

– 0

–

8,431,791

– 0

–

8,431,791

Preferred Stocks

– 0

–

– 0

–

2,224,500

2,224,500

Warrants

88

– 0

–

0

(a)

88

Short-Term Investments

5,641,740

– 0

–

– 0

–

5,641,740

Total Investments in Securities

8,890,583

3,872,344,781

24,732,612

(a)

3,905,967,976

Other Financial Instruments(b):

Assets:

Futures

35,165,517

– 0

–

– 0

–

35,165,517

(c)

Forward Currency Exchange Contracts

– 0

–

94,878

– 0

–

94,878

Centrally Cleared Interest Rate Swaps

– 0

–

6,421,934

– 0

–

6,421,934

(c)

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NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Futures	$	(76,158,121	)	$	– 0	–		– 0	–	$	(76,158,121	)(c)
Forward Currency Exchange Contracts		– 0	–		(1,244,881	)		– 0	–		(1,244,881	)
Centrally Cleared Credit Default Swaps		– 0	–		(205,521	)		– 0	–		(205,521	)(c)
Credit Default Swaps		– 0	–		(28,620,676	)		– 0	–		(28,620,676	)
Reverse Repurchase Agreements		(837,011,898	)		– 0	–		– 0	–		(837,011,898	)
Total	$	(869,113,919	)	$	3,848,790,515		$	24,732,612	(a)	$	3,004,409,208

(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, written options and written swaptions 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

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are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation (depreciation) as such income and/or gains are earned.

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

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company. 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.

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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 shares, respectively. For the year ended October 31, 2022, such reimbursement/waivers amounted to $1,066,679. The Expense Caps may not be terminated by the Adviser before January 31, 2023.

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, 2022, the reimbursement for such services amounted to $92,045.

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 $672,457 for the year ended October 31, 2022.

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 $7,592 from the sale of Class A shares and received $15,053 and $9,359 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the

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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, 2022, such waiver amounted to $26,463.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	111,173	$	941,157	$	1,046,688	$	5,642	$	138

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 $1,013,893 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.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2022 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	448,435,339	$	1,131,256,970
U.S. government securities		8,073,855,350		8,618,168,459

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

Cost	$	4,237,445,530
Gross unrealized appreciation	$	113,884,098
Gross unrealized depreciation		(428,564,877	)
Net unrealized depreciation	$	(314,680,779	)

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

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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, 2022, 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, 2022, the Fund held forward currency exchange contracts for hedging purposes.

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• 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 purchased option by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call purchased option 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 written option. 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 written options. 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 written option by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

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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, 2022, the Fund held written swaptions for 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

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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 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

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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, 2022, 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, 2022, the Fund held inflation (CPI) swaps for 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

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(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.

During the year ended October 31, 2022, 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

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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, 2022, 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	$	35,165,517	*	Receivable/Payable for variation margin on futures	$	76,158,121	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		345,648	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		6,421,934	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		94,878		Unrealized depreciation on forward currency exchange contracts		1,244,881
Credit contracts					Market value on credit default swaps		28,620,676
Total		$	42,027,977			$	106,023,678

* 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	$	(31,527,848	)	$	(46,553,976	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		11,323,255			7,236,557
Foreign exchange contracts	Net realized gain (loss) on written options; Net change in unrealized appreciation (depreciation) of written options		2,997			– 0	–
Interest rate contracts	Net realized gain (loss) on written swaptions; Net change in unrealized appreciation (depreciation) of written swaptions		(56,399	)		(258,487	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(2,857,247	)		15,448,318
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(21,183,822	)		47,780,248
Total		$	(44,299,064	)	$	23,652,660

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Futures:
Average notional amount of buy contracts	$	743,647,855
Average notional amount of sale contracts	$	969,063,715
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	76,640,135	(a)
Average principal amount of sale contracts	$	357,872,400

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Written Swaptions:
Average notional amount	$	44,894,200	(b)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	214,895,000
Centrally Cleared Inflation Swaps:
Average notional amount	$	96,350,000	(c)
Credit Default Swaps:
Average notional amount of sale contracts	$	259,301,869
Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	58,762,176

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

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

(c) Positions were open for one month 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, 2022. 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.	$	20,537	$	(20,537	)	$	– 0	–	$	– 0	–	$	– 0	–
JPMorgan Chase Bank/JPMorgan Securities, LLC		28,834		(28,834	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services, Inc./Morgan Stanley & Co. International plc		45,507		(45,507	)		– 0	–		– 0	–		– 0	–
Total	$	94,878	$	(94,878	)	$	– 0	–	$	– 0	–	$	0	^

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Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	810,141	$	– 0	–	$	– 0	–	$	– 0	–	$	810,141
Barclays Bank PLC		1,371,340		– 0	–		– 0	–		(1,371,340	)		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		10,333,068		(20,537	)		(373,000	)		(9,858,515	)		81,016
Credit Suisse International		3,334,861		– 0	–		– 0	–		(3,334,861	)		– 0	–
Goldman Sachs International		9,116,835		– 0	–		(660,000	)		(8,456,835	)		– 0	–
JPMorgan Chase Bank/JPMorgan Securities, LLC		4,792,539		(28,834	)		– 0	–		(4,763,705	)		– 0	–
Morgan Stanley Capital Services, Inc./Morgan Stanley & Co. International plc		105,369		(45,507	)		– 0	–		(59,862	)		– 0	–
State Street Bank & Trust Co.		1,404		– 0	–		– 0	–		– 0	–		1,404
Total	$	29,865,557	$	(94,878	)	$	(1,033,000	)	$	(27,845,118	)	$	892,561	^

* 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

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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, 2022, the Fund earned drop income of $5,422,796 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, 2022, the average amount of reverse repurchase agreements outstanding was $1,249,952,892 and the daily weighted average interest rate was 0.79%. At October 31, 2022, the Fund had reverse repurchase agreements outstanding in the amount of $837,011,898 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, 2022:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
Barclays Capital, Inc.		3,955,328		(3,955,328	)		– 0	–
Credit Suisse International/ First Boston†		3,299,566		(3,299,566	)		– 0	–
HSBC Securities (USA), Inc.		368,741,503		(228,709,343	)		140,032,160
JPMorgan Chase Bank		461,015,501		(458,847,705	)		2,167,796
Total	$	837,011,898	$	(694,811,942	)	$	142,199,956

† 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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		5,504,143			12,693,420		$	39,565,166		$	102,684,240
Shares issued in reinvestment of dividends		683,436			794,420			4,848,123			6,379,937
Shares converted from Class C		150,661			356,137			1,067,762			2,859,271
Shares redeemed		(14,232,001	)		(16,512,385	)		(100,905,810	)		(132,616,025	)
Net decrease		(7,893,761	)		(2,668,408	)	$	(55,424,759	)	$	(20,692,577	)
Class C
Shares sold		737,142			3,077,054		$	5,442,290		$	24,874,379
Shares issued in reinvestment of dividends		367,071			456,339			2,605,062			3,671,010
Shares converted to Class A		(150,476	)		(355,698	)		(1,067,762	)		(2,859,271	)
Shares redeemed		(7,173,549	)		(5,920,156	)		(51,179,390	)		(47,610,467	)
Net decrease		(6,219,812	)		(2,742,461	)	$	(44,199,800	)	$	(21,924,349	)

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	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Advisor Class
Shares sold		125,018,791			167,986,666		$	895,171,374			$ 1,352,943,498
Shares issued in reinvestment of dividends		10,905,106			12,483,656			77,665,707			100,377,691
Shares redeemed		(285,020,744	)		(168,770,779	)		(2,028,413,744	)		(1,357,710,463	)
Net increase (decrease)		(149,096,847	)		11,699,543			$  (1,055,576,663	)	$	95,610,726
Class Z
Shares sold		987,963			2,157,210		$	6,992,661		$	17,350,447
Shares issued in reinvestment of dividends		106,789			94,970			757,805			762,411
Shares redeemed		(1,516,427	)		(759,196	)		(10,653,822	)		(6,105,537	)
Net increase (decrease)		(421,675	)		1,492,984		$	(2,903,356	)	$	12,007,321

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) and regional and global conflicts, that affect large portions of the market.

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

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.

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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 Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

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

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

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.

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

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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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR,

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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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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.

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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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	129,387,443	$	166,350,736
Total taxable distributions paid	$	129,387,443	$	166,350,736

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	1,322,646
Accumulated capital and other losses		(557,600,583	)(a)
Unrealized appreciation (depreciation)		(319,324,058	)(b)
Total accumulated earnings/(deficit)	$	(875,601,995	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $557,599,853. As of October 31, 2022, the cumulative deferred loss on straddles was $730.

(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

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losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $187,331,997 and a net long-term capital loss carryforward of $370,267,856, which may be carried forward for an indefinite period.

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 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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  7.89			$  7.96			$  7.98			$  7.49			$  8.09
Income From Investment Operations
Net investment income(a)(b)		.23			.24			.26			.31			.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.69	)		(.04	)		.02	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		(1.46	)		.20			.28			.84			(.21	)
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.27	)		(.30	)		(.30	)		(.36	)
Return of capital		– 0	–		– 0	–		– 0	–		(.05	)		(.03	)
Total dividends and distributions		(.24	)		(.27	)		(.30	)		(.35	)		(.39	)
Net asset value, end of period		$  6.19			$  7.89			$  7.96			$  7.98			$  7.49
Total Return
Total investment return based on net asset value(e)*		(18.83	)%		2.48	%		3.55	%		11.50	%		(2.71	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$159,887			$265,990			$289,619			$240,567			$232,931
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.04	%		.79	%		.78	%		.77	%		1.08	%
Expenses, before waivers/reimbursements(f)		1.08	%		.80	%		.80	%		.83	%		1.16	%
Net investment income(b)		3.15	%		3.04	%		3.24	%		4.02	%		3.73	%
Portfolio turnover rate**		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 102.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Income From Investment Operations
Net investment income(a)(b)		.17			.18			.20			.25			.23
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.68	)		(.04	)		.02	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		(1.51	)		.14			.22			.78			(.27	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.21	)		(.24	)		(.25	)		(.30	)
Return of capital		– 0	–		– 0	–		– 0	–		(.04	)		(.03	)
Total dividends and distributions		(.19	)		(.21	)		(.24	)		(.29	)		(.33	)
Net asset value, end of period		$  6.20			$  7.90			$  7.97			$  7.99			$  7.50
Total Return
Total investment return based on net asset value(e)*		(19.41	)%		1.71	%		2.77	%		10.65	%		(3.43	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$113,982			$194,363			$217,968			$164,413			$82,283
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.79	%		1.54	%		1.53	%		1.52	%		1.83	%
Expenses, before waivers/reimbursements(f)		1.82	%		1.55	%		1.55	%		1.57	%		1.92	%
Net investment income(b)		2.39	%		2.29	%		2.49	%		3.21	%		2.98	%
Portfolio turnover rate**		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 102.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  7.90			$  7.97			$  7.99			$  7.50			$  8.10
Income From Investment Operations
Net investment income(a)(b)		.24			.26			.27			.33			.31
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.68	)		(.04	)		.03	(c)		.53			(.50	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		.00	(d)		.00	(d)
Net increase (decrease) in net asset value from operations		(1.44	)		.22			.30			.86			(.19	)
Less: Dividends and Distributions
Dividends from net investment income		(.26	)		(.29	)		(.32	)		(.31	)		(.38	)
Return of capital		– 0	–		– 0	–		– 0	–		(.06	)		(.03	)
Total dividends and distributions		(.26	)		(.29	)		(.32	)		(.37	)		(.41	)
Net asset value, end of period		$  6.20			$  7.90			$  7.97			$  7.99			$  7.50
Total Return
Total investment return based on net asset value(e)*		(18.60	)%		2.73	%		3.80	%		11.76	%		(2.46	)%
Ratios/Supplemental Data
Net assets, end of period (000,000’s omitted)		$2,334			$4,152			$4,097			$3,562			$2,222
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.79	%		.54	%		.53	%		.52	%		.83	%
Expenses, before waivers/reimbursements(f)		.82	%		.55	%		.55	%		.58	%		.91	%
Net investment income(b)		3.38	%		3.28	%		3.48	%		4.24	%		3.98	%
Portfolio turnover rate**		167	%		166	%		246	%		270	%		105	%

See footnote summary on page 102.

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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,						November 20, 2019(g) to October 31, 2020
	2022			2021
Net asset value, beginning of period		$  7.90			$  7.97			$  7.97
Income From Investment Operations
Net investment income(a)(b)		.25			.27			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.69	)		(.05	)		.03	(c)
Net increase (decrease) in net asset value from operations		(1.44	)		.22			.30
Less: Dividends
Dividends from net investment income		(.26	)		(.29	)		(.30	)
Net asset value, end of period		$  6.20			$  7.90			$  7.97
Total Return
Total investment return based on net asset value(e)*		(18.57	)%		2.78	%		3.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$21,026			$30,118			$18,492
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.78	%		.49	%		.48	%^
Expenses, before waivers/reimbursements(f)		.78	%		.49	%		.48	%^
Net investment income(b)		3.44	%		3.32	%		3.49	%^
Portfolio turnover rate**		167	%		166	%		246	%

See footnote summary on page 102.

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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,
	2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.77	%
Before waivers/reimbursements		.80	%		.78	%		.79	%		.82	%		.85	%
Class C
Net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.52	%		1.52	%
Before waivers/reimbursements		1.55	%		1.53	%		1.54	%		1.57	%		1.60	%
Advisor Class
Net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.52	%
Before waivers/reimbursements		.55	%		.53	%		.54	%		.57	%		.60	%
Class Z
Net of waivers/reimbursements		.49	%		.47	%		.46	%		N/A			N/A
Before waivers/reimbursements		.49	%		.47	%		.46	%		N/A			N/A

(g) Commencement of distributions.

* Includes the impact of proceeds received by the Fund in connection with a trade-error reimbursement from the Adviser, which enhanced performance by .04% for the year ended October 31, 2021.

** The Fund accounts for dollar roll transactions as purchases and sales.

^ Annualized.

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 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, 2022, 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, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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 28, 2022

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2022 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, 2022. For foreign shareholders, 80.59% 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 2023.

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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⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Fahd Malik⁽²⁾, Vice President Matthew S. Sheridan⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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, Malik and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2015)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	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,## 78 (2015)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	None
Nancy P. Jacklin,## 74 (2015)	Private Investor since prior to 2017. 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.		75	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,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2015)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also co-Head of Fixed Income.
Fahd Malik 38	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Matthew S. Sheridan 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 2-4, 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 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

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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- and 5-year periods ended July 31, 2021 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 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.

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, 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

abfunds.com AB INCOME FUND    ^|    119

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 higher than a 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 had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s breakpoint arrangements were acceptable and provide a means for sharing any economies of scale.

120    ^|    AB INCOME FUND abfunds.com

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

AB FAMILY OF FUNDS

US EQUITY

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Select US Equity Portfolio

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INTERNATIONAL/ GLOBAL EQUITY

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Global Core Equity Portfolio

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FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

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Municipal Bond Inflation Strategy

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TAXABLE

Bond Inflation Strategy

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ALTERNATIVES

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CLOSED-END FUNDS

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EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

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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.

abfunds.com AB INCOME FUND    ^|    121

NOTES

122    ^|    AB INCOME FUND abfunds.com

NOTES

abfunds.com AB INCOME FUND    ^|     123

NOTES

124    ^|    AB INCOME FUND abfunds.com

AB INCOME FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IF-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB MUNICIPAL BOND INFLATION STRATEGY

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 14, 2022

This report provides management’s discussion of fund performance for the AB Municipal Bond Inflation Strategy for the annual period ended October 31, 2022.

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, 2022 (unaudited)

	6 Months		12 Months
AB MUNICIPAL BOND INFLATION STRATEGY
Class 1 Shares1		-4.07%		-5.92%
Class 2 Shares1		-4.02%		-5.83%
Class A Shares		-4.14%		-6.06%
Class C Shares		-4.51%		-6.75%
Advisor Class Shares2		-4.02%		-5.82%
Bloomberg 1-10 Year TIPS Index		-5.32%		-7.18%

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 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, 2022.

During both periods, all share classes of the Fund outperformed the benchmark, before sales charges. The Fund invests primarily in municipal bonds and uses tax-efficient hedges for inflation protection. The Fund’s overweight to municipals contributed, relative to the benchmark, for the six-month period, but detracted for the 12-month period. The use of Consumer Price Index (“CPI”) swaps had no material impact on performance, relative to the benchmark, over either period. Yield-curve positioning contributed, particularly underweights to the intermediate parts of the curve for both periods.

During both periods, the Fund utilized derivatives in the form of interest rate swaps for hedging purposes, which detracted from absolute performance.

2    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

Credit default swaps were utilized for investment purposes, which had no material impact on performance. CPI swaps were used for hedging purposes, which detracted from absolute performance for the six-month period and added for the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

Yields continued their ascent higher toward the end of the reporting period ended October 31, 2022. During the 12-month period, the yield on a 10-Year AAA municipal bond rose to 3.39% from 1.22% and the yield on the 10-Year US Treasury rose to 4.06% from 1.58%. Demand for municipals continued to weaken during the six-month period, as investors have pulled approximately $104.8 billion year to date from municipal bond mutual funds and exchange-traded funds as of October 26, 2022. In addition to broader fixed-income market volatility, these municipal market outflows contributed to municipal underperformance versus US Treasuries, with 10-Year AAA Muni/Treasury after-tax spreads widening 73 basis points (“b.p.”) during the 12-month period and 1 b.p. during the six-month period. Average BBB credit spreads widened during the 12-month and six-month periods by approximately 60 b.p. and 26 b.p., respectively.

The Fund’s Senior Investment Management Team (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 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, 2022, 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 3.22% and 0.40%, respectively.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    3

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 nationally recognized statistical rating organizations (or deemed to be of comparable credit quality by the Adviser). The Fund may invest up to 20% of its total assets in below investment-grade fixed-income securities (“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.

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) and regional and global conflicts, that affect large portions of the market.

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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS (continued)

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.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk: To the extent the Fund uses leveraging techniques, such as TOB transactions, its net asset value (“NAV”) may be more volatile

6    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS (continued)

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 more 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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    7

HISTORICAL PERFORMANCE

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

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB Municipal Bond Inflation Strategy Class A shares (from 10/31/2012 to 10/31/2022) 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.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1		Taxable Equivalent Yields2
CLASS 1 SHARES3						3.30%		5.08%
1 Year		-5.92%		-5.92%
5 Years		1.98%		1.98%
10 Years		1.35%		1.35%
CLASS 2 SHARES3						3.39%		5.22%
1 Year		-5.83%		-5.83%
5 Years		2.10%		2.10%
10 Years		1.45%		1.45%
CLASS A SHARES						2.96%		4.55%
1 Year		-6.06%		-8.87%
5 Years		1.84%		1.22%
10 Years		1.18%		0.88%
CLASS C SHARES						2.30%		3.54%
1 Year		-6.75%		-7.67%
5 Years		1.09%		1.09%
10 Years4		0.44%		0.44%
ADVISOR CLASS SHARES5						3.30%		5.08%
1 Year		-5.82%		-5.82%
5 Years		2.10%		2.10%
10 Years		1.44%		1.44%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.66%, 0.56%, 0.84%, 1.59% and 0.59% 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 limited the Fund’s total annual operating expense ratios (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) 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, 2023, 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, 2022.

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. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-6.50%
5 Years		1.74%
10 Years		1.26%
CLASS 2 SHARES1
1 Year		-6.40%
5 Years		1.84%
10 Years		1.36%
CLASS A SHARES
1 Year		-9.44%
5 Years		0.96%
10 Years		0.79%
CLASS C SHARES
1 Year		-8.23%
5 Years		0.83%
10 Years2		0.36%
ADVISOR CLASS SHARES3
1 Year		-6.39%
5 Years		1.83%
10 Years		1.37%

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. These share classes do not carry front-end sales charges; therefore, their respective NAV and SEC returns are the same.

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.

10    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    11

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	958.60	$	3.70		0.75	%
Hypothetical**	$	1,000	$	1,021.42	$	3.82		0.75	%
Class C
Actual	$	1,000	$	954.90	$	7.39		1.50	%
Hypothetical**	$	1,000	$	1,017.64	$	7.63		1.50	%
Advisor Class
Actual	$	1,000	$	959.80	$	2.47		0.50	%
Hypothetical**	$	1,000	$	1,022.68	$	2.55		0.50	%
Class 1
Actual	$	1,000	$	959.30	$	2.96		0.60	%
Hypothetical**	$	1,000	$	1,022.18	$	3.06		0.60	%
Class 2
Actual	$	1,000	$	959.80	$	2.47		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.

12    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $2,193.1

1 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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    13

PORTFOLIO OF INVESTMENTS

October 31, 2022

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 95.0%
Long-Term Municipal Bonds – 90.2%
Alabama – 0.7%
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	$	4,037,644
Black Belt Energy Gas District (Goldman Sachs Group, Inc. (The)) Series 2021 4.00%, 10/01/2052		5,000		4,813,020
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016 5.00%, 02/01/2025		2,110		2,150,226
Series 2021 4.00%, 02/01/2039		1,675		1,464,965
Sumter County Industrial Development Authority/AL (Enviva, Inc.) Series 2022 6.00%, 07/15/2052		3,770		3,403,830
				15,869,685
American Samoa – 0.1%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2015-A 6.625%, 09/01/2035		1,335		1,399,926
Series 2018 6.50%, 09/01/2028(a)		295		316,794
7.125%, 09/01/2038(a)		280		310,207
				2,026,927
Arizona – 1.4%
Arizona Industrial Development Authority (Equitable School Revolving Fund LLC Obligated Group) Series 2020 4.00%, 11/01/2030		935		903,334
5.00%, 11/01/2031		800		833,089
5.00%, 11/01/2032		650		672,636
5.00%, 11/01/2033		900		928,312

14    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arizona Industrial Development Authority (Kipp New York, Inc. Jerome Facility) Series 2021-B 4.00%, 07/01/2041	$	500	$	393,699
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 6.50%, 07/01/2026(a)		1,000		919,128
6.75%, 07/01/2030(a)		1,000		848,554
Arizona Industrial Development Authority (Phoenix Children’s Hospital Obligated Group) Series 2021 4.00%, 02/01/2039		1,800		1,602,483
5.00%, 02/01/2026		1,200		1,246,622
5.00%, 02/01/2028		1,000		1,063,793
5.00%, 02/01/2030		1,300		1,406,863
5.00%, 02/01/2031		1,250		1,360,152
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.542%, 07/01/2033		4,000		3,007,449
City of Phoenix Civic Improvement Corp. (Phoenix Sky Harbor International Airport) Series 2017-A 5.00%, 07/01/2029		3,945		4,043,825
City of Tempe AZ (City of Tempe AZ COP) Series 2021 1.951%, 07/01/2031		2,400		1,870,938
Industrial Development Authority of the County of Pima (The) (La Posada at Park Centre, Inc. Obligated Group) Series 2022 5.125%, 11/15/2029(a)		2,000		1,965,818
Salt River Project Agricultural Improvement & Power District Series 2021-A 5.00%, 01/01/2029		2,750		3,002,352
State of Arizona Lottery Revenue Series 2019 5.00%, 07/01/2028 (Pre-refunded/ETM)		5,000		5,416,808
				31,485,855

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arkansas – 0.0%
City of Fayetteville AR Sales & Use Tax Revenue Series 2022 2.875%, 11/01/2032	$	1,000	$	908,616
California – 10.4%
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		2,230,821
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 4.00%, 08/01/2046(a)		1,000		692,098
California Housing Finance Agency Series 2021-1, Class A 3.50%, 11/20/2035		977		835,234
Series 2021-2, Class X 0.823%, 03/25/2035(b)		2,500		139,038
Series 2021-3, Class A 3.25%, 08/20/2036		1,972		1,614,463
California Infrastructure & Economic Development Bank Series 2022 0.85%, 01/01/2050 (Pre-refunded/ETM)(a)		25,000		24,774,100
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) Series 2019 7.50%, 12/01/2040(a)		250		159,138
California State Public Works Board (California State Public Works Board Lease) Series 2021-A 5.00%, 02/01/2023		10,000		10,044,743
California State Public Works Board (State of California Department of Corrections & Rehabilitation Lease) Series 2018 5.00%, 05/01/2029		2,995		3,241,923
California State University Series 2021-B 2.374%, 11/01/2035		1,000		698,676

16    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Los Angeles Department of Airports Series 2019 5.00%, 05/15/2027	$	1,410	$	1,461,484
5.00%, 05/15/2039		1,000		993,913
Series 2021-A 5.00%, 05/15/2037		4,000		4,014,725
CMFA Special Finance Agency VII (CMFA Special Finance Agency VII The Breakwater Apartments) Series 2021 4.00%, 08/01/2047(a)		1,000		665,351
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 777 Place-Pomona) Series 2021 3.60%, 05/01/2047(a)		6,500		4,737,048
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2046(a)		2,000		1,351,661
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 3.50%, 10/01/2046(a)		2,000		1,369,288
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(a)		1,500		923,663
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Millennium South Bay-Hawthorne) Series 2021 3.375%, 07/01/2043(a)		3,500		2,529,330
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Theo Apartments) Series 2021 3.50%, 05/01/2047(a)		2,300		1,720,303
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A 3.10%, 07/01/2045(a)		1,000		700,335

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 4.00%, 10/01/2048(a)	$	2,000	$	1,318,388
Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue Series 2021-A 4.00%, 06/01/2038		5,880		5,688,133
Los Angeles Department of Water & Power System Revenue Series 2021-B 5.00%, 07/01/2041		10,000		10,447,221
Orange County Transportation Authority Series 2021 5.00%, 10/15/2024		3,505		3,622,492
Sacramento County Water Financing Authority (Sacramento County Water Agency) NATL Series 2007-B 2.635% (LIBOR 3 Month + 0.57%), 06/01/2039(c)		5,000		4,298,780
San Diego County Regional Airport Authority Series 2021-B 4.00%, 07/01/2035		3,100		2,778,449
4.00%, 07/01/2036		8,395		7,470,405
4.00%, 07/01/2039		7,075		6,097,127
4.00%, 07/01/2040		8,655		7,382,461
4.00%, 07/01/2041		3,325		2,812,037
5.00%, 07/01/2030		2,785		2,866,199
San Francisco Intl Airport Series 2021-A 5.00%, 05/01/2031		3,275		3,388,346
5.00%, 05/01/2036		5,960		5,939,099
San Joaquin Hills Transportation Corridor Agency Series 2021 5.00%, 01/15/2033		5,000		5,113,861
State of California Series 2014 5.00%, 05/01/2025		2,960		3,033,203
Series 2017 5.00%, 11/01/2022		7,635		7,635,000
Series 2020 5.00%, 11/01/2030		10,870		12,055,505
5.00%, 03/01/2035		10,335		11,105,731

18    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021 4.00%, 10/01/2023	$	10,000	$	10,078,062
4.00%, 12/01/2024		2,655		2,693,140
4.00%, 10/01/2034		2,690		2,651,764
4.00%, 10/01/2035		10,000		9,829,893
5.00%, 09/01/2023		6,000		6,091,889
5.00%, 10/01/2024		3,590		3,710,124
5.00%, 12/01/2035		6,980		7,535,311
Series 2022 4.00%, 04/01/2042		8,640		8,046,017
University of California Series 2022-S 5.00%, 05/15/2024		6,000		6,165,525
5.00%, 05/15/2025		4,000		4,174,490
				228,925,987
Colorado – 3.2%
Arapahoe County School District No. 5 Cherry Creek (Arapahoe County School District No. 5 Cherry Creek COP) Series 2022 4.00%, 12/15/2038		2,655		2,441,416
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/2029(a)		1,510		1,456,294
City & County of Denver CO. Airport System Revenue (Denver Intl Airport) Series 2012-A 5.00%, 11/15/2024		10,395		10,404,208
5.00%, 11/15/2025		3,000		3,002,248
Series 2018-A 5.00%, 12/01/2026		1,700		1,748,446
5.00%, 12/01/2028		10,000		10,312,347
5.00%, 12/01/2029		6,555		6,738,522
Colorado Health Facilities Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2041		2,600		2,664,033
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019-A 5.00%, 08/01/2032		640		652,312
5.00%, 08/01/2033		2,250		2,284,677

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Health Facilities Authority (Intermountain Healthcare Obligated Group) Series 2019-B 4.00%, 01/01/2040	$	1,445	$	1,323,443
Colorado Health Facilities Authority (Sanford Obligated Group) Series 2019-A 5.00%, 11/01/2033		1,525		1,576,185
Denver City & County School District No. 1 Series 2014-B 5.00%, 12/01/2023		4,730		4,823,414
Series 2021 5.00%, 12/01/2039		6,785		7,213,413
Denver Urban Renewal Authority (Stapleton Development Corp.) Series 2013-A 5.00%, 12/01/2022		1,640		1,642,068
E-470 Public Highway Authority Series 2021-B 2.387% (SOFR + 0.35%), 09/01/2039(c)		2,000		1,969,626
Johnstown Plaza Metropolitan District Series 2022 4.25%, 12/01/2046		2,000		1,513,629
State of Colorado Series 2022 6.00%, 12/15/2041		6,000		6,854,573
Sterling Ranch Community Authority Board (Sterling Ranch Colorado Metropolitan District No. 2) Series 2020-A 3.75%, 12/01/2040		1,050		787,327
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2024		260		267,447
				69,675,628
Connecticut – 2.9%
City of New Haven CT Series 2018-A 5.50%, 08/01/2035		1,920		2,033,558
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2035		1,500		1,340,531
4.00%, 07/01/2036		1,500		1,326,671

20    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
4.00%, 07/01/2037	$	1,000	$	874,482
4.00%, 07/01/2040		1,500		1,264,157
Connecticut State Health & Educational Facilities Authority (Yale University) Series 2020 1.10%, 07/01/2048		10,105		10,027,719
Series 2022 1.10%, 07/01/2049		8,000		7,409,730
State of Connecticut Series 2013-A 5.00%, 10/15/2024		5,035		5,118,619
Series 2014-A 5.00%, 03/01/2028		2,230		2,274,660
Series 2014-F 5.00%, 11/15/2026		1,275		1,315,788
Series 2015-B 5.00%, 06/15/2025		4,330		4,510,188
5.00%, 06/15/2028		2,840		2,949,299
Series 2016-A 5.00%, 03/15/2032		2,160		2,241,701
Series 2018-B 5.00%, 04/15/2028		1,440		1,550,359
State of Connecticut Clean Water Fund - State Revolving Fund Series 2013-A 5.00%, 03/01/2024		4,360		4,385,921
State of Connecticut Special Tax Revenue Series 2020 5.00%, 05/01/2035		1,960		2,084,850
5.00%, 05/01/2038		3,040		3,205,220
5.00%, 05/01/2040		1,000		1,043,757
Series 2021-D 4.00%, 11/01/2037		2,250		2,118,919
4.00%, 11/01/2038		4,185		3,913,319
University of Connecticut Series 2020-A 5.00%, 02/15/2038		1,795		1,868,319
				62,857,767
District of Columbia – 1.5%
District of Columbia (District of Columbia International School Obligated Group) Series 2019 5.00%, 07/01/2039		2,000		1,882,379

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
District of Columbia (Plenary Infrastructure DC LLC State Lease) Series 2022 5.00%, 08/31/2029	$	4,765	$	4,903,026
5.00%, 08/31/2030		5,025		5,155,052
5.00%, 02/29/2032		5,475		5,552,104
Metropolitan Washington Airports Authority Aviation Revenue Series 2018-A 5.00%, 10/01/2025		5,500		5,652,537
5.00%, 10/01/2026		3,065		3,166,119
Series 2021-A 4.00%, 10/01/2038		2,500		2,243,260
5.00%, 10/01/2036		1,695		1,681,942
Washington Metropolitan Area Transit Authority Dedicated Revenue Series 2021-A 4.00%, 07/15/2039		2,450		2,272,564
				32,508,983
Florida – 4.7%
Align Affordable Housing Bond Fund LP (SHI - Lake Worth LLC) Series 2021 3.25%, 12/01/2051(a)		2,500		2,080,961
Capital Trust Agency, Inc. (Franklin Academy Series 2020 Obligated Group) Series 2020 4.00%, 12/15/2025(a)		300		292,348
Central Florida Expressway Authority Series 2019-B 5.00%, 07/01/2032		6,000		6,398,776
5.00%, 07/01/2034		7,255		7,650,197
AGM Series 2021-D 5.00%, 07/01/2035		8,685		9,313,364
City of Palmetto FL (Renaissance Arts and Education, Inc.) Series 2022 5.125%, 06/01/2042		2,400		2,210,491
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group)
Series 2017 5.00%, 08/15/2025		4,500		4,649,757

22    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Broward FL Airport System Revenue Series 2019-A 4.00%, 10/01/2044	$	16,215	$	13,423,920
Series 2019-C 2.384%, 10/01/2026		2,600		2,352,570
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2023		6,100		6,164,272
5.00%, 06/01/2024		5,000		5,114,412
5.00%, 06/01/2026		2,885		2,985,569
5.00%, 06/01/2027		4,515		4,670,459
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2030		115		74,495
Zero Coupon, 10/01/2031		140		85,197
Zero Coupon, 10/01/2032		100		57,181
Zero Coupon, 10/01/2033		115		61,590
Zero Coupon, 10/01/2034		125		62,747
Florida Development Finance Corp. (Brightline Trains Florida LLC) Series 2022 2.90%, 12/01/2056 (Pre-refunded/ETM)		10,000		9,920,429
Florida Development Finance Corp. (Mater Academy, Inc.) Series 2022-A 4.00%, 06/15/2042		2,000		1,600,468
5.00%, 06/15/2042		2,550		2,367,709
Florida Municipal Power Agency (Florida Municipal Power Agency All-Requirements Power Supply Project Revenue) Series 2015-B 5.00%, 10/01/2023		1,500		1,523,346
Series 2021 1.425%, 10/01/2026		500		432,857
Greater Orlando Aviation Authority Series 2017-A 5.00%, 10/01/2029 (Pre-refunded/ETM)		4,420		4,664,595
5.00%, 10/01/2033		4,000		4,027,377
Mid-Bay Bridge Authority Series 2015-A 5.00%, 10/01/2028		1,000		1,012,249

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Orange County Health Facilities Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2023 4.00%, 08/01/2036(d)	$	1,000	$	848,945
Polk County Industrial Development Authority (Mineral Development LLC) Series 2020 5.875%, 01/01/2033(a)		1,000		971,268
Village Community Development District No. 13 Series 2019 3.55%, 05/01/2039		4,195		3,124,363
Village Community Development District No. 14 Series 2022 5.50%, 05/01/2053		5,000		4,912,922
				103,054,834
Georgia – 3.8%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2034		4,490		3,964,734
5.00%, 07/01/2035		5,065		4,420,157
City of Atlanta GA Department of Aviation Series 2022-B 5.00%, 07/01/2038		3,440		3,410,629
5.00%, 07/01/2042		6,830		6,716,409
Cobb County Kennestone Hospital Authority (WellStar Health System Obligated Group) Series 2021 5.00%, 04/01/2025		1,650		1,694,320
Main Street Natural Gas, Inc. (Citadel LP) Series 2022-C 4.00%, 08/01/2052(a)		5,000		4,617,604
Main Street Natural Gas, Inc. (Citigroup, Inc.) Series 2021-C 4.00%, 05/01/2052		2,075		1,943,025
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018-A 4.00%, 04/01/2048		9,370		9,350,003

24    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2018-C 4.00%, 08/01/2048	$	6,850	$	6,831,303
Series 2021-A 4.00%, 07/01/2052		37,825		36,541,409
Richmond County Board of Education Series 2021 5.00%, 10/01/2023		3,400		3,451,380
				82,940,973
Guam – 0.2%
Territory of Guam Series 2019 5.00%, 11/15/2031		135		131,141
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015-D 5.00%, 11/15/2023		1,035		1,037,746
5.00%, 11/15/2025		865		866,591
5.00%, 11/15/2031		2,070		2,039,874
Series 2021-F 5.00%, 01/01/2028		500		499,962
				4,575,314
Illinois – 4.5%
Chicago Board of Education Series 2018-A 5.00%, 12/01/2027		1,200		1,185,740
Series 2019-B 5.00%, 12/01/2030		135		131,795
5.00%, 12/01/2031		265		256,630
5.00%, 12/01/2033		100		95,313
Series 2022-B 4.00%, 12/01/2041		5,800		4,558,218
Chicago Housing Authority Series 2018-A 5.00%, 01/01/2034		2,500		2,593,659
5.00%, 01/01/2037		5,260		5,412,305
5.00%, 01/01/2038		1,000		1,026,967
Chicago O’Hare International Airport Series 2015-B 5.00%, 01/01/2029		5,000		5,119,117
Series 2016-C 5.00%, 01/01/2033		5,000		5,108,344
Series 2017-B 5.00%, 01/01/2035		1,475		1,498,256
Series 2018-A 5.00%, 01/01/2037		1,000		980,418

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2022 4.00%, 01/01/2042	$	2,000	$	1,714,231
5.00%, 01/01/2028		680		698,618
5.00%, 01/01/2031		600		614,865
5.00%, 01/01/2042		3,850		3,673,987
Chicago O’Hare International Airport (Chicago O’Hare International Airport Customer Facility Charge) Series 2013 5.25%, 01/01/2023		2,500		2,506,988
5.50%, 01/01/2025		2,250		2,256,164
County of Cook IL Series 2012-C 5.00%, 11/15/2024		2,560		2,561,623
Illinois Finance Authority (Ascension Health Credit Group) Series 2016-C 5.00%, 02/15/2024		1,630		1,658,669
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 5.00%, 09/01/2023		100		100,314
5.00%, 09/01/2026		100		100,176
5.00%, 09/01/2027		100		99,891
5.00%, 09/01/2029		100		99,243
5.00%, 09/01/2033		200		192,141
5.00%, 09/01/2034		100		95,387
Illinois Finance Authority (University of Chicago (The)) Series 2021-A 5.00%, 10/01/2033		1,750		1,919,582
5.00%, 10/01/2035		1,400		1,506,355
5.00%, 10/01/2036		2,500		2,668,891
5.00%, 10/01/2037		1,350		1,430,810
Illinois Finance Authority (Washington and Jane Smith Community - Orland Park) Series 2022 4.00%, 10/15/2040		9,375		7,287,685
Illinois Housing Development Authority Series 2022 5.67%, 12/01/2025(a)		1,250		1,244,952
7.17%, 11/01/2038		125		122,783
Illinois State Toll Highway Authority Series 2020-A 5.00%, 01/01/2040		1,080		1,106,050

26    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-A 5.00%, 01/01/2043	$	6,700	$	6,792,309
State of Illinois Series 2013 5.00%, 07/01/2023		1,670		1,680,436
Series 2014 5.00%, 05/01/2030		4,180		4,179,475
Series 2017-B 5.00%, 12/01/2024		5,050		5,092,442
Series 2017-D 5.00%, 11/01/2024		7,950		8,019,066
Series 2018-A 5.00%, 10/01/2023		2,785		2,806,063
Series 2018-B 5.00%, 10/01/2023		1,730		1,743,084
Series 2022-A 5.50%, 03/01/2042		2,945		2,912,362
Series 2022-B 5.25%, 10/01/2037		3,000		2,964,222
				97,815,626
Indiana – 1.7%
Indiana Finance Authority (Brightmark Plastics Renewal Indiana LLC) Series 2019 7.00%, 03/01/2039(a)		2,380		1,732,438
Indiana Finance Authority (CWA Authority, Inc.) Series 2021 5.00%, 10/01/2033		2,000		2,171,957
Indiana Finance Authority (Duke Energy Indiana LLC) Series 2022 3.75%, 03/01/2031		5,750		5,650,137
4.50%, 05/01/2035		7,555		7,278,927
Indiana Finance Authority (Fulcrum Centerpoint LLC) Series 2021 0.28%, 12/15/2045		5,000		4,994,529
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022 4.00%, 04/01/2035		1,210		1,006,929

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Indiana Finance Authority (Greencroft Goshen Obligated Group) Series 2023-2 4.00%, 11/15/2037(d)	$	1,000	$	763,737
Indiana Finance Authority (Indiana University Health, Inc. Obligated Group) Series 2021 0.70%, 12/01/2046		8,150		7,395,352
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		495		404,773
Series 2022-A 4.25%, 11/01/2030		1,535		1,424,490
Indiana Finance Authority (University of Evansville) Series 2022 5.25%, 09/01/2037		5,000		4,683,009
				37,506,278
Iowa – 1.6%
Iowa Finance Authority Series 2022-E 2.914% (SOFR + 0.80%), 01/01/2052(c)		8,000		7,798,455
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2022 4.00%, 12/01/2050		5,000		4,493,597
5.00%, 12/01/2050		7,000		6,218,834
Iowa Finance Authority (Iowa Finance Authority State Revolving Fund) Series 2021-A 5.00%, 08/01/2039		5,200		5,570,573
Iowa Higher Education Loan Authority (Simpson College) Series 2020 5.25%, 11/01/2040		2,275		2,044,847
Iowa Tobacco Settlement Authority Series 2021-A 4.00%, 06/01/2034		500		453,962
4.00%, 06/01/2035		515		461,913
4.00%, 06/01/2037		1,000		877,433
4.00%, 06/01/2038		1,000		867,142
4.00%, 06/01/2040		500		422,008
5.00%, 06/01/2031		900		919,301

28    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-B 4.00%, 06/01/2049	$	1,890	$	1,724,050
PEFA, Inc. (Goldman Sachs Group, Inc. (The)) Series 2019 5.00%, 09/01/2049		2,360		2,357,622
				34,209,737
Kansas – 0.3%
Kansas Development Finance Authority (AdventHealth Obligated Group) Series 2021 5.00%, 11/15/2054		6,000		6,359,333
Kentucky – 2.6%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 5.00%, 02/01/2026		180		183,895
5.00%, 02/01/2027		195		200,279
5.00%, 02/01/2030		125		129,244
5.00%, 02/01/2031		150		152,016
City of Henderson KY (Pratt Paper LLC) Series 2022 3.70%, 01/01/2032(a)		1,150		1,041,895
Kentucky Municipal Power Agency NATL Series 2015-A 5.00%, 09/01/2023		1,875		1,897,697
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		7,260		7,067,053
Kentucky Public Energy Authority (Morgan Stanley) Series 2018-C 9.575% (CPI + 1.05%), 12/01/2049(c)		20,000		19,957,364
Series 2019-C 4.00%, 02/01/2050		9,015		8,520,794
Series 2022-A 4.00%, 08/01/2052		18,485		16,924,406
				56,074,643
Louisiana – 0.7%
City of New Orleans LA Series 2021-A 5.00%, 12/01/2030		1,910		2,045,460
5.00%, 12/01/2035		2,680		2,792,929

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 12/01/2038	$	2,070	$	2,135,280
5.00%, 12/01/2039		885		909,561
Jefferson Sales Tax District AGM Series 2017-B 5.00%, 12/01/2034		1,800		1,882,320
Parish of St. James LA (NuStar Logistics LP) Series 2020 5.85%, 08/01/2041(a)		340		346,570
6.10%, 06/01/2038(a)		455		476,880
6.10%, 12/01/2040(a)		390		408,754
State of Louisiana Gasoline & Fuels Tax Revenue Series 2022-A 2.628% (SOFR + 0.50%), 05/01/2043(c)		4,960		4,783,506
				15,781,260
Maryland – 2.9%
County of Montgomery MD Series 2019-A 5.00%, 11/01/2026		5,925		6,308,474
Maryland Economic Development Corp. (Purple Line Transit Partners LLC) Series 2022 5.00%, 12/31/2039		4,125		4,038,865
5.00%, 06/30/2040		8,795		8,572,170
5.00%, 12/31/2040		3,525		3,434,154
5.00%, 06/30/2042		3,120		3,015,647
Maryland Health & Higher Educational Facilities Authority (Stevenson University, Inc.) Series 2021 4.00%, 06/01/2039		500		419,343
State of Maryland Series 2017-B 5.00%, 08/01/2024		5,790		5,964,957
Series 2020-B 5.00%, 08/01/2028		9,315		10,136,527
Series 2022-C 5.00%, 03/01/2026		11,500		12,126,809
Series 2022-D 4.00%, 08/01/2029		4,500		4,647,631
Washington Suburban Sanitary Commission Series 2020 5.00%, 12/01/2022		4,140		4,146,241
				62,810,818

30    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Massachusetts – 1.4%
Commonwealth of Massachusetts Series 2020-B 5.00%, 07/01/2024	$	7,380	$	7,593,131
AGC Series 2007-A 2.434% (LIBOR 3 Month + 0.57%), 05/01/2037(c)		3,275		3,086,369
Commonwealth of Massachusetts (Commonwealth of Massachusetts COVID-19 Recovery Assessment Revenue) Series 2022-B 4.11%, 07/15/2031		3,200		3,052,930
Massachusetts Bay Transportation Authority Sales Tax Revenue Series 2004-C 5.25%, 07/01/2023		3,520		3,568,476
Massachusetts Clean Water Trust (The) (Massachusetts Water Pollution Abatement Trust (The) SRF) Series 2006 9.59% (CPI + 0.99%), 08/01/2023(c)		2,275		2,282,876
Series 2021-2 4.00%, 02/01/2023		1,645		1,648,561
Massachusetts Development Finance Agency (Broad Institute Inc. (The)) Series 2017 5.00%, 04/01/2028		1,655		1,760,360
Massachusetts Port Authority Series 2021-E 5.00%, 07/01/2037		2,250		2,274,082
5.00%, 07/01/2039		5,000		5,026,009
				30,292,794
Michigan – 1.5%
City of Detroit MI Series 2018 5.00%, 04/01/2035		750		741,403
5.00%, 04/01/2036		305		300,483
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) AGM Series 2006-D 3.108% (LIBOR 3 Month + 0.60%), 07/01/2032(c)		2,605		2,504,448

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Detroit City School District AGM Series 2005-A 5.25%, 05/01/2029	$	3,860	$	4,215,400
Michigan Finance Authority (City of Detroit MI) Series 2016-C 5.00%, 04/01/2026		1,000		1,043,919
5.00%, 04/01/2027		1,735		1,829,469
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) AGM Series 2014-D2 5.00%, 07/01/2024		10,545		10,821,915
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 5.00%, 11/15/2031		1,785		1,822,617
Michigan Finance Authority (Michigan Finance Authority Drinking Water Revolving Fund) Series 2021 5.00%, 10/01/2026		1,250		1,327,463
Michigan Strategic Fund (Michigan Strategic Fund—I 75 Improvement Project) Series 2018 5.00%, 12/31/2028		3,075		3,078,086
5.00%, 06/30/2029		6,015		5,978,092
				33,663,295
Minnesota – 0.3%
Minneapolis-St Paul Metropolitan Airports Commission Series 2022-B 4.00%, 01/01/2038		4,250		3,695,366
5.00%, 01/01/2039		2,105		2,046,968
				5,742,334
Mississippi – 0.1%
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 5.00%, 10/01/2033(a)		1,000		985,841
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		1,500		1,465,482
				2,451,323

32    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Missouri – 1.1%
Health & Educational Facilities Authority of the State of Missouri (BJC Healthcare Obligated Group) Series 2021-B 4.00%, 05/01/2051	$	11,975	$	12,162,093
Howard Bend Levee District XLCA INS Series 2005 5.75%, 03/01/2025		135		135,885
5.75%, 03/01/2027		120		120,510
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2016-A 5.00%, 08/15/2036		1,675		1,487,512
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		9,814,426
				23,720,426
Montana – 0.1%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%, 02/15/2031		1,925		1,959,727
5.00%, 02/15/2033		1,350		1,362,457
				3,322,184
Nebraska – 0.7%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2018 5.00%, 03/01/2050		15,000		15,008,046
Nevada – 2.2%
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019-A 2.50%, 06/15/2024(a)		240		230,070
Clark County School District Series 2021-A 4.00%, 06/15/2034		10,085		9,890,340
5.00%, 06/15/2027		3,500		3,705,078
Series 2021-B 5.00%, 06/15/2027		5,170		5,472,929

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
5.00%, 06/15/2028	$	6,710	$	7,155,949
5.00%, 06/15/2032		3,425		3,683,816
Las Vegas Valley Water District Series 2022-A 4.00%, 06/01/2036		5,000		4,780,806
4.00%, 06/01/2037		6,350		6,021,167
Tahoe-Douglas Visitors Authority Series 2020 4.00%, 07/01/2027		1,200		1,166,041
5.00%, 07/01/2029		2,625		2,650,205
5.00%, 07/01/2032		2,035		2,022,779
5.00%, 07/01/2035		805		781,225
				47,560,405
New Hampshire – 0.7%
National Finacnce Authority (New Hampshire Business Finance Authority) National Finacnce Authority Series 2022-2, Class X 0.674%, 10/01/2036(b)		5,000		258,520
New Hampshire Business Finance Authority Series 2020-1, Class A 4.125%, 01/20/2034		1,494		1,377,880
Series 2022-1, Class A 4.375%, 09/20/2036		9,959		8,988,717
Series 2022-2 0.334%, 09/20/2036		8,500		199,143
Series 2022-2, Class A 4.00%, 10/20/2036		4,995		4,324,328
				15,148,588
New Jersey – 4.1%
Federal Home Loan Mortgage Corp. Enhanced Receipt Series 2019-B, Class 1 3.87%, 11/15/2035(a)		12,363		11,220,095
New Jersey Economic Development Authority Series 2014-P 5.00%, 06/15/2029 (Pre-refunded/ETM)		1,150		1,181,874
New Jersey Economic Development Authority (Port Newark Container Terminal LLC) Series 2017 5.00%, 10/01/2026		2,130		2,157,832
5.00%, 10/01/2027		1,680		1,699,613

34    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Economic Development Authority (United Airlines, Inc.) Series 2012 5.25%, 09/15/2029	$	1,365	$	1,341,143
New Jersey Educational Facilities Authority (Ramapo College of New Jersey) AGM Series 2022-A 4.00%, 07/01/2039		550		503,943
4.00%, 07/01/2040		750		678,779
4.00%, 07/01/2041		835		740,481
5.00%, 07/01/2034		845		890,098
5.00%, 07/01/2035		400		419,579
5.00%, 07/01/2036		600		628,026
5.00%, 07/01/2037		600		625,832
5.00%, 07/01/2038		745		774,536
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		4,390		4,515,816
Series 2018-A 5.00%, 06/15/2028		4,170		4,297,803
5.00%, 06/15/2029		17,500		18,001,543
5.00%, 06/15/2030		1,500		1,540,221
5.00%, 06/15/2031		3,000		3,072,154
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2014-C 5.25%, 06/15/2032		2,960		2,997,905
Series 2020-A 5.00%, 06/15/2036		1,140		1,139,973
New Jersey Turnpike Authority Series 2013-A 5.00%, 01/01/2023 (Pre-refunded/ETM)		1,600		1,604,785
5.00%, 01/01/2023		200		200,545
Series 2014-A 5.00%, 01/01/2028		4,785		4,902,137
Series 2014-C 5.00%, 01/01/2023		1,590		1,594,332
Series 2017-A 5.00%, 01/01/2033		7,300		7,620,132
Series 2020-D 5.00%, 01/01/2028		4,375		4,593,510

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2021-B 0.897%, 01/01/2025	$	1,000	$	914,961
1.713%, 01/01/2029		1,350		1,098,155
Tobacco Settlement Financing Corp./NJ Series 2018-A 5.00%, 06/01/2030		4,750		4,885,062
Series 2018-B 5.00%, 06/01/2046		3,495		3,209,262
				89,050,127
New Mexico – 0.1%
State of New Mexico Severance Tax Permanent Fund Series 2022-A 5.00%, 07/01/2031		1,000		1,113,021
Winrock Town Center Tax Increment Development District No. 1 Series 2022 4.00%, 05/01/2033(a)		1,035		870,456
				1,983,477
New York – 9.5%
City of New York NY Series 2020-A 5.00%, 08/01/2026		3,940		4,166,160
Series 2020-C 5.00%, 08/01/2033		3,645		3,910,842
Series 2021 1.396%, 08/01/2027		3,120		2,616,308
Series 2021-A 4.00%, 08/01/2041		2,000		1,769,570
5.00%, 08/01/2033		2,000		2,161,724
Series 2021-F 5.00%, 06/01/2044		2,500		2,593,834
County of Nassau NY Series 2022-A 4.00%, 04/01/2042		2,205		1,912,881
Metropolitan Transportation Authority Series 2012-C 5.00%, 11/15/2024 (Pre-refunded/ETM)		4,065		4,067,576
5.00%, 11/15/2025 (Pre-refunded/ETM)		5,000		5,003,169
Series 2012-F 5.00%, 11/15/2026		3,635		3,637,170
Series 2013-A 5.00%, 11/15/2026 (Pre-refunded/ETM)		2,300		2,321,418
Series 2013-E 5.00%, 11/15/2025 (Pre-refunded/ETM)		8,510		8,665,587

36    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016-A 5.00%, 11/15/2024	$	1,130	$	1,153,700
Series 2016-B 5.00%, 11/15/2027		1,370		1,388,602
Series 2017-B 5.00%, 11/15/2023		1,110		1,124,510
5.00%, 11/15/2025		1,935		1,982,142
5.00%, 11/15/2026		555		568,213
Series 2017-C 5.00%, 11/15/2026		1,275		1,305,732
5.00%, 11/15/2027		1,745		1,783,896
5.00%, 11/15/2028		1,000		1,021,777
Series 2020-A 5.00%, 11/15/2045		5,120		5,242,554
Series 2020-E 4.00%, 11/15/2026		1,000		982,526
5.00%, 11/15/2028		4,000		4,073,587
Series 2021-D 2.367% (SOFR + 0.33%), 11/01/2035(c)		1,975		1,916,919
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2012-B 5.00%, 11/01/2026(e)		6,830		6,830,000
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028		6,565		6,687,936
Series 2021 2.202%, 03/15/2034		2,000		1,464,003
2.252%, 03/15/2032		2,000		1,522,826
Series 2022-A 4.00%, 03/15/2042		5,000		4,415,340
New York State Environmental Facilities Corp. (State of New York SRF) Series 2021 4.00%, 08/15/2038		800		742,877
New York State Thruway Authority (State of New York Pers Income Tax) Series 2021-A 5.00%, 03/15/2025		2,225		2,305,693
Series 2022-A 5.00%, 03/15/2030		21,850		23,826,638
5.00%, 03/15/2039		2,000		2,094,387
New York State Urban Development Corp. (State of New York Pers Income Tax) Series 2022 5.00%, 09/15/2029		37,115		40,433,912

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 5.00%, 01/01/2027	$	3,000	$	2,990,886
5.00%, 01/01/2028		2,590		2,580,513
5.00%, 01/01/2029		3,665		3,637,928
Series 2020 4.00%, 10/01/2030		1,500		1,403,830
New York Transportation Development Corp. (JFK International Air Terminal LLC) Series 2022 5.00%, 12/01/2038		1,700		1,586,046
5.00%, 12/01/2040		2,850		2,611,285
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2046		345		315,013
Port Authority of New York & New Jersey Series 2021-2 5.00%, 07/15/2028		1,025		1,067,678
Suffolk Tobacco Asset Securitization Corp. Series 2021 5.00%, 06/01/2028		2,265		2,333,369
5.00%, 06/01/2032		2,245		2,308,645
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021 5.00%, 05/15/2050		4,740		4,929,355
Series 2021-A 2.00%, 05/15/2045		2,945		2,719,309
2.591%, 05/15/2036		2,000		1,440,844
2.917%, 05/15/2040		1,000		687,502
Series 2022-A 5.00%, 08/15/2024		16,500		17,005,969
Series 2022-E 3.087% (SOFR + 1.05%), 04/01/2026(c)(d)		6,000		5,747,802
				209,059,983
North Carolina – 0.4%
Fayetteville State University Series 2023 5.00%, 04/01/2032(a)(d)		655		662,450

38    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of North Carolina (State of North Carolina Fed Hwy Grant) Series 2015 5.00%, 03/01/2026	$	6,710	$	6,950,068
Series 2021 5.00%, 03/01/2028		1,175		1,261,544
				8,874,062
North Dakota – 0.0%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(a)		425		249,759
7.00%, 12/15/2043(a)		440		243,259
				493,018
Ohio – 1.7%
American Municipal Power, Inc. Series 2016-A 5.00%, 02/15/2036		5,000		5,107,766
Series 2019 5.00%, 02/15/2035		1,425		1,503,896
Series 2021 4.00%, 02/15/2037		1,430		1,280,844
4.00%, 02/15/2038		1,330		1,179,471
Buckeye Tobacco Settlement Financing Authority Series 2020-A 4.00%, 06/01/2039		1,000		887,305
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2037		3,385		3,401,992
City of Cleveland OH Airport System Revenue AGM Series 2016-B 5.00%, 01/01/2023		1,510		1,514,164
5.00%, 01/01/2024		1,075		1,094,931
City of Cleveland OH Income Tax Revenue Series 2017-B1 5.00%, 10/01/2027		2,500		2,677,731
5.00%, 10/01/2029		3,085		3,302,988
5.00%, 10/01/2030		2,000		2,137,030
Series 2017-B2 5.00%, 10/01/2029		1,485		1,591,443
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2037		5,600		5,573,398

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Washington OH (Marietta Area Health Care, Inc. Obligated Group) Series 2022 6.375%, 12/01/2037	$	2,000	$	1,817,088
Ohio Higher Educational Facility Commission (University of Dayton) Series 2022 5.00%, 02/01/2038		1,250		1,281,635
5.00%, 02/01/2039		3,860		3,929,942
				38,281,624
Oklahoma – 0.2%
Oklahoma Development Finance Authority Series 2022 4.38%, 11/01/2045		2,500		2,184,392
Oklahoma Development Finance Authority (Gilcrease Expressway West) Series 2020 1.625%, 07/06/2023		500		487,935
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2022-A 5.50%, 08/15/2037		2,000		1,758,604
				4,430,931
Oregon – 0.7%
Deschutes County Hospital Facilities Authority (St. Charles Health System Obligated Group) Series 2016-A 4.00%, 01/01/2033		1,000		941,315
Oregon Health & Science University (Oregon Health & Science University Obligated Group) Series 2021-B 5.00%, 07/01/2046		4,750		4,907,137
Port of Portland OR Airport Revenue Series 2022-2 4.00%, 07/01/2038		5,000		4,491,791
4.00%, 07/01/2040		3,500		3,039,994
Tri-County Metropolitan Transportation District of Oregon Series 2018-A 5.00%, 10/01/2029		1,910		2,025,641
				15,405,878

40    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Other – 0.2%
Federal Home Loan Mortgage Corp. Series 2021-ML12, Class AUS 2.34%, 07/25/2041(a)	$	2,481	$	1,902,136
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(a)		3,760		3,024,295
				4,926,431
Pennsylvania – 4.3%
Allegheny County Airport Authority Series 2021-A 4.00%, 01/01/2037		1,750		1,537,014
4.00%, 01/01/2041		5,255		4,424,638
Berks County Municipal Authority (The) (Tower Health Obligated Group) Series 2012-A 4.50%, 11/01/2041		1,000		654,645
Series 2020-B 5.00%, 02/01/2040		2,000		1,873,501
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 5.00%, 07/01/2032		1,000		968,067
5.00%, 07/01/2033		1,150		1,098,109
5.00%, 07/01/2034		1,300		1,225,804
5.00%, 07/01/2035		1,050		975,857
Chester County Industrial Development Authority (Collegium Charter School) Series 2022 5.00%, 10/15/2032(a)		1,000		953,929
City of Philadelphia PA Series 2017 5.00%, 08/01/2028		12,990		13,699,976
City of Philadelphia PA Airport Revenue Series 2021 5.00%, 07/01/2028		3,035		3,111,465
City of Philadelphia PA Water & Wastewater Revenue Series 2017-A 5.00%, 10/01/2032		1,000		1,051,811
5.00%, 10/01/2033		1,135		1,190,259
Commonwealth of Pennsylvania Series 2017 5.00%, 01/01/2024		3,600		3,672,125

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Hospitals & Higher Education Facilities Authority of Philadelphia (The) (Temple University Health System Obligated Group) AGM Series 2022 4.00%, 07/01/2040	$	10,000	$	8,636,692
Lancaster County Hospital Authority/PA (St. Anne’s Retirement Community Obligated Group) Series 2022 3.50%, 03/01/2025		1,410		1,342,521
5.00%, 03/01/2033		1,600		1,444,785
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2018 5.00%, 09/01/2034		1,500		1,542,202
Series 2022 4.00%, 05/01/2036		1,100		1,003,472
4.00%, 05/01/2037		1,500		1,348,582
4.00%, 05/01/2038		1,375		1,219,866
4.00%, 05/01/2039		1,500		1,313,682
4.00%, 05/01/2040		2,000		1,755,749
4.00%, 05/01/2041		3,000		2,615,387
4.00%, 05/01/2042		2,125		1,837,064
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.125%, 07/01/2025		1,300		1,249,759
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 06/30/2042		1,000		927,293
Pennsylvania Economic Development Financing Authority (UPMC Obligated Group) Series 2022-C 2.94% (MUNIPSA + 0.70%), 11/15/2047(c)		5,000		4,843,106
Pennsylvania Higher Educational Facilities Authority (University of Pennsylvania Health System Obligated Group (The)) Series 2022 4.00%, 08/15/2042		2,000		1,779,948

42    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania Turnpike Commission Series 2017 5.00%, 12/01/2028	$	1,750	$	1,861,266
5.00%, 12/01/2029		1,255		1,333,579
Series 2017-B 5.00%, 06/01/2034		5,830		5,990,757
5.00%, 06/01/2036		1,750		1,764,286
Series 2019 5.00%, 12/01/2023		4,250		4,324,395
Series 2021-A 3.00%, 12/01/2042		1,245		872,063
Series 2021-B 4.00%, 12/01/2039		2,000		1,774,966
Series 2022-A 5.00%, 12/01/2036		1,000		1,053,158
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2040		1,000		939,319
School District of Philadelphia (The) Series 2016-F 5.00%, 09/01/2034		5,000		5,147,557
				94,358,654
Puerto Rico – 0.5%
Commonwealth of Puerto Rico Series 2021-A Zero Coupon, 07/01/2024		261		237,364
Zero Coupon, 07/01/2033		4,179		2,123,458
4.00%, 07/01/2033		3		2,454
4.00%, 07/01/2035		3		2,131
4.00%, 07/01/2037		2		1,780
4.00%, 07/01/2041		3		2,314
4.00%, 07/01/2046		3		2,296
5.25%, 07/01/2023		752		752,707
5.375%, 07/01/2025		153		153,143
5.625%, 07/01/2027		1,388		1,397,973
5.625%, 07/01/2029		1,128		1,134,672
5.75%, 07/01/2031		228		229,429
Series 2022-C 0.01%, 11/01/2043		20		9,196
Puerto Rico Electric Power Authority AGM Series 2007-V 5.25%, 07/01/2031		970		954,243
Puerto Rico Highway & Transportation Authority AGC Series 2005-L 5.25%, 07/01/2041		790		759,209

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
AGC Series 2007-N 5.25%, 07/01/2034	$	1,010	$	980,320
5.25%, 07/01/2036		1,095		1,059,370
AGM Series 2007-C 5.25%, 07/01/2036		100		96,746
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024		790		725,329
				10,624,134
Rhode Island – 0.1%
Rhode Island Health and Educational Building Corp. (City of Newport RI) Series 2022-C 4.00%, 05/15/2040		3,435		3,161,309
South Carolina – 1.3%
Columbia Housing Authority/SC Series 2022 4.80%, 11/01/2024		525		507,902
5.26%, 11/01/2032		100		93,639
5.41%, 11/01/2039		1,315		1,186,341
6.28%, 11/01/2039		100		89,743
County of Richland SC Series 2021-A 5.00%, 03/01/2028		13,020		14,090,946
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.25%, 06/01/2040(a)		1,000		724,042
South Carolina Public Service Authority Series 2016-A 5.00%, 12/01/2034		1,000		1,004,649
5.00%, 12/01/2036		1,535		1,532,971
Series 2016-B 5.00%, 12/01/2037		5,040		4,989,131
Series 2016-C 5.00%, 12/01/2035		930		932,179
Series 2020-A 4.00%, 12/01/2042		2,260		1,920,616
Series 2021-B 4.00%, 12/01/2039		1,975		1,721,156
				28,793,315

44    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tennessee – 0.8%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(a)	$	1,410	$	1,292,216
Series 2016-B Zero Coupon, 12/01/2024(a)		1,405		1,252,990
Zero Coupon, 12/01/2031(a)		1,000		591,419
City of Pigeon Forge TN Series 2021-B 5.00%, 06/01/2024		4,545		4,666,644
Tennessee Energy Acquisition Corp. (Goldman Sachs Group, Inc. (The)) Series 2021 5.00%, 05/01/2052		8,770		8,544,435
Wilson County Health & Educational Facilities Board Series 2021 4.00%, 12/01/2039		1,000		713,981
4.25%, 12/01/2024		1,000		932,035
				17,993,720
Texas – 6.5%
Central Texas Regional Mobility Authority Series 2021-B 5.00%, 01/01/2030		1,800		1,909,674
5.00%, 01/01/2034		1,575		1,640,830
5.00%, 01/01/2035		1,350		1,392,060
5.00%, 01/01/2037		1,675		1,705,646
5.00%, 01/01/2039		1,000		1,006,291
Series 2021-C 5.00%, 01/01/2027		5,000		5,128,590
City of Houston TX Series 2021-A 5.00%, 03/01/2026		2,500		2,614,537
5.00%, 03/01/2027		4,180		4,421,878
City of Houston TX Airport System Revenue Series 2020-A 4.00%, 07/01/2037		3,000		2,657,318
Series 2021-A 4.00%, 07/01/2035		1,100		985,901
4.00%, 07/01/2037		1,085		961,064
4.00%, 07/01/2039		2,500		2,151,959
4.00%, 07/01/2040		5,175		4,408,808
5.00%, 07/01/2032		1,000		1,016,210
5.00%, 07/01/2033		3,000		3,041,191

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Houston TX Airport System Revenue (United Airlines, Inc.) Series 2014 5.00%, 07/01/2029	$	2,465	$	2,429,187
City of Houston TX Combined Utility System Revenue Series 2014-C 5.00%, 05/15/2024		1,100		1,128,514
Series 2019-B 4.00%, 11/15/2039		1,015		921,960
Series 2020-C 5.00%, 11/15/2022		4,330		4,332,824
AGM Series 1998 Zero Coupon, 12/01/2022 (Pre-refunded/ETM)		8,265		8,242,758
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2038		1,750		1,823,197
5.00%, 02/01/2039		2,000		2,074,470
5.00%, 02/01/2040		2,470		2,552,290
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2041		905		797,500
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2020-B 5.00%, 12/01/2022		1,250		1,251,874
5.00%, 12/01/2023		4,000		4,076,429
Fort Worth Independent School District Series 2021-A 5.00%, 02/15/2026		2,900		3,048,717
5.00%, 02/15/2027		2,350		2,502,061
Harris County Cultural Education Facilities Finance Corp. (Texas Children’s Hospital Obligated Group) Series 2021 4.00%, 10/01/2041		2,000		1,769,315
Harris County Flood Control District Series 2021-A 4.00%, 10/01/2039		7,790		7,353,906
Hidalgo County Regional Mobility Authority Series 2022-A 4.00%, 12/01/2040		1,000		851,514

46    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
4.00%, 12/01/2041	$	750	$	632,217
5.00%, 12/01/2033		750		753,928
Series 2022-B 4.00%, 12/01/2041		1,000		834,748
Lewisville Independent School District Series 2020 5.00%, 08/15/2023		2,430		2,462,693
5.00%, 08/15/2024		2,295		2,361,345
Lower Colorado River Authority (LCRA Transmission Services Corp.) Series 2021 5.00%, 05/15/2029		800		858,136
Series 2022 5.00%, 05/15/2040		5,000		5,157,338
5.00%, 05/15/2041		10,000		10,242,234
New Hope Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc. Obligated Group) Series 2021 2.00%, 11/15/2061		908		400,917
7.50%, 11/15/2036		225		188,797
7.50%, 11/15/2037		35		27,849
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group) Series 2022 4.00%, 01/01/2042		1,825		1,308,346
New Hope Cultural Education Facilities Finance Corp. (Westminster Manor) Series 2016 5.00%, 11/01/2031		1,000		996,419
Newark Higher Education Finance Corp. (TLC Academy) Series 2021-A 4.00%, 08/15/2041		1,690		1,294,664
North Texas Tollway Authority (North Texas Tollway System) Series 2017-A 5.00%, 01/01/2038		3,000		3,004,887
Series 2021-B 4.00%, 01/01/2032		1,080		1,069,452
Port Authority of Houston of Harris County Texas Series 2021 5.00%, 10/01/2027		1,065		1,128,840

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 3.625%, 01/01/2035(a)	$	240	$	184,968
Series 2021 2.00%, 01/01/2027(a)		550		471,072
San Antonio Water System Series 2021-A 5.00%, 05/15/2035		1,160		1,246,723
5.00%, 05/15/2036		3,700		3,960,530
5.00%, 05/15/2037		3,275		3,486,334
Spring Independent School District Series 2021 5.00%, 08/15/2027		1,430		1,528,032
Tarrant County Cultural Education Facilities Finance Corp. (CHRISTUS Health Obligated Group) Series 2018-A 5.00%, 07/01/2030		2,465		2,586,778
5.00%, 07/01/2031		10,940		11,424,074
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025(f)(g)		1,105		442,000
University of North Texas System Series 2022 5.00%, 04/15/2035		1,015		1,077,250
5.00%, 04/15/2036		1,000		1,059,065
5.00%, 04/15/2037		1,320		1,392,561
5.00%, 04/15/2038		1,525		1,603,654
				143,384,324
Utah – 0.8%
City of Salt Lake City UT Airport Revenue Series 2021-A 4.00%, 07/01/2038		15,880		13,763,293
4.00%, 07/01/2040		2,915		2,468,515
Military Installation Development Authority Series 2021-A 4.00%, 06/01/2041		1,000		755,595
				16,987,403
Virginia – 1.6%
Align Affordable Housing Bond Fund LP (Park Landing LP) Series 2022-2 5.66%, 08/01/2052		884		754,337

48    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Fairfax County Economic Development Authority (County of Fairfax VA) Series 2020 5.00%, 08/01/2032	$	410	$	446,657
5.00%, 08/01/2033		410		444,753
Halifax County Industrial Development Authority (Virginia Electric and Power Co.) Series 2022 1.65%, 12/01/2041		5,000		4,821,157
Hampton Roads Transportation Accountability Commission Series 2021-A 5.00%, 07/01/2026		2,685		2,817,139
Virginia Small Business Financing Authority (95 Express Lanes LLC) Series 2022 5.00%, 01/01/2032		3,220		3,255,040
5.00%, 07/01/2032		2,800		2,826,776
5.00%, 01/01/2033		4,000		4,017,627
5.00%, 07/01/2033		8,090		8,105,099
5.00%, 01/01/2037		2,175		2,123,891
Virginia Small Business Financing Authority (Elizabeth River Crossings OpCo LLC) Series 2022 4.00%, 01/01/2039		6,500		5,511,261
				35,123,737
Washington – 3.5%
City of Seattle WA Municipal Light & Power Revenue Series 2021-A 4.00%, 07/01/2033		2,060		2,047,178
4.00%, 07/01/2035		2,020		1,987,187
City of Seattle WA Water System Revenue Series 2017 5.00%, 08/01/2023		4,020		4,074,583
Energy Northwest (Bonneville Power Administration) Series 2016 5.00%, 07/01/2025		19,925		20,767,118
Series 2021-A 4.00%, 07/01/2042		1,000		901,457
Port of Seattle WA Series 2013 5.00%, 07/01/2024		4,820		4,862,024

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2019 5.00%, 04/01/2033	$	2,000	$	2,034,353
5.00%, 04/01/2034		1,000		1,011,921
Series 2021 4.00%, 08/01/2040		2,000		1,707,555
5.00%, 08/01/2023		1,165		1,176,849
Spokane County School District No. 81 Spokane Series 2012 3.00%, 12/01/2031		5,000		4,466,470
State of Washington Series 2015-R 5.00%, 07/01/2026		13,325		13,796,874
Series 2021-F 5.00%, 06/01/2029		3,165		3,461,825
University of Washington Series 2022-A 5.00%, 04/01/2034		3,250		3,518,342
5.00%, 04/01/2035		2,645		2,847,379
5.00%, 04/01/2037		1,340		1,433,757
Series 2022-B 2.787%, 07/01/2033		2,500		2,040,534
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		1,380,519
Washington State Housing Finance Commission Series 2021-1, Class A 3.50%, 12/20/2035		980		827,794
Washington State Housing Finance Commission Series 2021-1, Class X 0.725%, 12/20/2035(b)		981		49,360
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest Obligated Group) Series 2016 5.00%, 01/01/2036(a)		2,125		1,822,081
				76,215,160
West Virginia – 0.2%
City of South Charleston WV (City of South Charleston WV South Charleston Park Place Excise Tax District) Series 2022 4.25%, 06/01/2042(a)		1,185		873,803

50    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tobacco Settlement Finance Authority/WV Series 2020 4.875%, 06/01/2049	$	2,600	$	2,210,555
West Virginia Economic Development Authority (Arch Resources, Inc.) Series 2021 4.125%, 07/01/2045		265		255,687
				3,340,045
Wisconsin – 2.4%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(a)		1,000		734,089
State of Wisconsin Series 2021-2 5.00%, 05/01/2026		5,850		6,187,594
5.00%, 05/01/2029		6,000		6,582,698
Series 2023-1 5.00%, 05/01/2028(d)		4,300		4,556,658
UMA Education, Inc. Series 2019 5.00%, 10/01/2023(a)		150		149,729
5.00%, 10/01/2025(a)		555		549,062
5.00%, 10/01/2026(a)		590		580,523
5.00%, 10/01/2027(a)		610		596,224
5.00%, 10/01/2028(a)		335		324,818
5.00%, 10/01/2029(a)		155		149,397
Wisconsin Center District (Wisconsin Center District Ded Tax) Series 2022 5.00%, 12/15/2022(a)		750		750,973
Wisconsin Department of Transportation Series 2013-1 5.00%, 07/01/2023		5,500		5,567,153
5.00%, 07/01/2024 (Pre-refunded/ETM)		6,500		6,577,257
Wisconsin Housing & Economic Development Authority (Roers Sun Prairie Apartments Owner LLC) Series 2022 4.625%, 03/15/2040(a)		280		228,059
Series 2022-A 3.875%, 12/01/2039(a)		1,285		1,035,300
Wisconsin Public Finance Authority Series 2022 5.00%, 02/01/2042		2,000		1,774,410
5.50%, 02/01/2042(a)		3,100		2,645,569

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (Appalachian Regional Healthcare System Obligated Group) Series 2021 5.00%, 07/01/2035	$	300	$	300,522
5.00%, 07/01/2036		350		349,268
5.00%, 07/01/2038		375		369,014
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(a)		5,000		4,274,210
Wisconsin Public Finance Authority (National Senior Communities, Inc. Obligated Group) Series 2022 4.00%, 01/01/2042		1,375		1,127,560
Wisconsin Public Finance Authority (Queens University of Charlotte) Series 2022 5.25%, 03/01/2042		3,000		2,807,891
Wisconsin Public Finance Authority (Renown Regional Medical Center) Series 2020 4.00%, 06/01/2035		1,220		1,116,253
Wisconsin Public Finance Authority (Roseman University of Health Sciences) Series 2022 4.00%, 04/01/2032(a)		915		802,843
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021-B 2.25%, 06/01/2027(a)		1,500		1,313,817
Wisconsin Public Finance Authority (Southeastern Regional Medical Center Obligated Group) Series 2022
5.00%, 02/01/2033		1,725		1,738,263
				53,189,154
Total Long-Term Municipal Bonds (cost $2,203,509,131)				1,977,974,145
Short-Term Municipal Notes – 4.8%
California – 0.7%
State of California Series 2019-B 1.80%, 05/01/2040(h)		14,600		14,600,000

52    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado – 0.1%
Colorado Health Facilities Authority (Children’s Hospital Colorado Obligated Group) Series 2020 2.25%, 12/01/2052(h)	$	2,615	$	2,615,000
District of Columbia – 0.7%
District of Columbia (Carnegie Endowment for International Peace) Series 2010 2.23%, 11/01/2045(h)		2,500		2,500,000
District of Columbia (Georgetown University (The)) Series 2016 2.23%, 04/01/2041(h)		7,700		7,700,000
District of Columbia (MedStar Health Obligated Group) Series 2012-A 2.21%, 08/15/2038(h)		4,440		4,440,000
				14,640,000
Florida – 0.5%
Florida Keys Aqueduct Authority Series 2013 2.22%, 09/01/2035(h)		8,910		8,910,000
Halifax Hospital Medical Center (Halifax Hospital Medical Center Obligated Group) Series 2010 2.25%, 06/01/2048(h)		1,685		1,685,000
				10,595,000
Illinois – 0.1%
Illinois Finance Authority (Latin School of Chicago (The)) Series 2005-B 2.25%, 08/01/2035(h)		1,245		1,245,000
Village of Brookfield IL (Chicago Zoological Society (The)) Series 2008 2.25%, 06/01/2038(h)		2,350		2,350,000
				3,595,000
Louisiana – 0.3%
Louisiana Public Facilities Authority (CHRISTUS Health Obligated Group) Series 2009 2.23%, 07/01/2047(h)		5,250		5,250,000

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Louisiana Public Facilities Authority (Coca-Cola Bottling Co. United-Gulf Coast LLC) Series 2013 2.23%, 04/02/2023(h)	$	2,280	$	2,280,000
				7,530,000
Massachusetts – 0.1%
Massachusetts Development Finance Agency (Trustees of The College of The Holy Cross) Series 2018 1.64%, 09/01/2037(h)		1,730		1,730,000
Minnesota – 0.2%
City of Minneapolis MN (Fairview Health Services Obligated Group) Series 2018 2.30%, 11/15/2048(h)		2,750		2,750,000
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) Series 2008 2.20%, 11/15/2034(h)		990		990,000
				3,740,000
New Jersey – 0.1%
New Jersey Health Care Facilities Financing Authority (AHS Hospital Corp.) Series 2008-C 2.23%, 07/01/2036(h)		1,145		1,145,000
New York – 1.0%
Build NYC Resource Corp. (Asia Society (The)) Series 2015 2.22%, 04/01/2045(h)		4,725		4,725,000
New York City Health and Hospitals Corp. Series 2008-B 2.25%, 02/15/2031(h)		11,000		11,000,000
New York State Housing Finance Agency (8 East 102nd Street LLC) Series 2012 2.22%, 05/01/2044(h)		4,025		4,025,000

54    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Trust for Cultural Resources of The City of New York (The) (New York Botanical Garden (The)) Series 2009 2.22%, 07/01/2032(h)	$	2,540	$	2,540,000
				22,290,000
Ohio – 0.0%
Columbus Regional Airport Authority Series 2006 2.23%, 12/01/2036(h)		930		930,000
Washington – 0.9%
Port of Tacoma WA Series 2019-B 2.25%, 12/01/2044(h)		18,000		18,000,000
Washington State Housing Finance Commission (Vintage at Urban Center LLC) Series 2015 2.21%, 07/01/2047(h)		1,075		1,075,000
				19,075,000
Wisconsin – 0.1%
Wisconsin Health & Educational Facilities Authority (Medical College of Wisconsin, Inc.) Series 2008-B 1.64%, 12/01/2033(h)		3,225		3,225,000
Total Short-Term Municipal Notes (cost $105,710,000)				105,710,000
Total Municipal Obligations (cost $2,309,219,131)				2,083,684,145
CORPORATES - INVESTMENT GRADE – 0.9%
Industrial – 0.9%
Capital Goods – 0.2%
Caterpillar Financial Services Corp. 3.096% (SOFR + 0.27%), 09/13/2024(c)		2,500		2,471,250
John Deere Capital Corp. 3.159% (SOFR + 0.12%), 07/10/2023(c)		1,435		1,427,897
				3,899,147
Consumer Cyclical - Automotive – 0.2%
General Motors Financial Co., Inc. 4.34% (SOFR + 1.30%), 04/07/2025(c)		5,000		4,875,800

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.4%
Baylor Scott & White Holdings Series 2021 0.827%, 11/15/2025	$	1,000	$	882,280
1.777%, 11/15/2030		1,000		756,990
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031		2,300		1,720,193
Sutter Health Series 20A 3.161%, 08/15/2040		1,000		674,950
UPMC Series D-1 3.60%, 04/03/2025		5,600		5,380,872
				9,415,285
Services – 0.1%
Hackensack Meridian Health, Inc. Series 2020 2.675%, 09/01/2041		1,790		1,143,971
Total Corporates – Investment Grade (cost $21,927,066)				19,334,203
CORPORATES - NON-INVESTMENT GRADE – 0.3%
Industrial – 0.3%
Banks – 0.0%
UMB Financial Corp. 10.00%, 01/01/2049(i)(j)		145		144,604
Communications - Media – 0.1%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(a)		1,933		1,419,402
DISH DBS Corp. 5.25%, 12/01/2026(a)		959		832,671
5.75%, 12/01/2028(a)		996		803,861
				3,055,934
Consumer Non-Cyclical – 0.1%
Medline Borrower LP 3.875%, 04/01/2029(a)		2,000		1,633,600
Transportation - Airlines – 0.1%
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)		650		619,476
5.75%, 04/20/2029(a)		575		523,250

56    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
United Airlines, Inc. 4.375%, 04/15/2026(a)	$	600	$	548,970
4.625%, 04/15/2029(a)		275		236,093
				1,927,789
Total Corporates – Non-Investment Grade (cost $8,131,806)				6,761,927
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.2%
Agency CMBS – 0.2%
California Housing Finance Agency Series 2021-2, Class A 3.75%, 03/25/2035		4,935		4,573,929
Federal Home Loan Mortgage Corp. Series 2021-ML10, Class ACA 2.046%, 06/25/2038		986		721,345
Total Commercial Mortgage-Backed Securities (cost $6,833,387)				5,295,274
GOVERNMENTS - TREASURIES – 0.2%
United States – 0.2%
U.S. Treasury Notes 2.625%, 02/15/2029(e) (cost $4,999,304)		5,000		4,551,562
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.0%
Risk Share Floating Rate – 0.0%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2013-DN2, Class M2 7.836% (LIBOR 1 Month + 4.25%), 11/25/2023(c)		107		108,439
Series 2014-DN3, Class M3 7.586% (LIBOR 1 Month + 4.00%), 08/25/2024(c)		35		35,054
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C03, Class 2M2 6.486% (LIBOR 1 Month + 2.90%), 07/25/2024(c)		51		50,637
Series 2015-C02, Class 1M2 7.586% (LIBOR 1 Month + 4.00%), 05/25/2025(c)		55		56,060
Total Collateralized Mortgage Obligations (cost $244,376)				250,190

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

	Shares		U.S. $ Value
SHORT-TERM INVESTMENTS – 0.5%
Investment Companies – 0.5%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(k)(l)(m) (cost $10,358,484)		10,358,484	$	10,358,484
Total Investments – 97.1% (cost $2,361,713,554)				2,130,235,785
Other assets less liabilities – 2.9%				62,858,616
Net Assets – 100.0%			$	2,193,094,401

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

$

1,264,557

$

– 0

–

$

1,264,557

USD

30,000

08/06/2024

2.815%

CPI#

Maturity

2,065,048

– 0

–

2,065,048

USD

20,000

11/02/2024

3.310%

CPI#

Maturity

883,594

– 0

–

883,594

USD

25,000

11/19/2024

3.695%

CPI#

Maturity

812,907

– 0

–

812,907

USD

40,000

11/24/2024

3.469%

CPI#

Maturity

1,567,016

– 0

–

1,567,016

USD

5,345

01/15/2025

2.565%

CPI#

Maturity

515,656

– 0

–

515,656

USD

2,673

01/15/2025

2.585%

CPI#

Maturity

255,785

– 0

–

255,785

USD

2,672

01/15/2025

2.613%

CPI#

Maturity

252,812

– 0

–

252,812

USD

148,000

01/15/2026

3.508%

CPI#

Maturity

7,584,303

– 0

–

7,584,303

USD

135,000

01/15/2026

3.580%

CPI#

Maturity

6,426,859

– 0

–

6,426,859

USD

10,000

04/01/2026

2.508%

CPI#

Maturity

972,268

– 0

–

972,268

USD

30,000

08/06/2026

2.689%

CPI#

Maturity

2,180,072

– 0

–

2,180,072

USD

25,000

10/04/2026

2.725%

CPI#

Maturity

1,521,225

– 0

–

1,521,225

USD

25,000

11/24/2026

3.176%

CPI#

Maturity

961,451

– 0

–

961,451

USD

74,000

01/15/2028

3.232%

CPI#

Maturity

3,923,262

– 0

–

3,923,262

USD

19,310

01/15/2028

1.230%

CPI#

Maturity

3,568,673

– 0

–

3,568,673

USD

14,770

01/15/2028

0.735%

CPI#

Maturity

3,238,723

– 0

–

3,238,723

USD

25,000

10/04/2028

2.661%

CPI#

Maturity

1,574,998

– 0

–

1,574,998

USD

12,000

08/29/2029

1.748%

CPI#

Maturity

1,937,987

– 0

–

1,937,987

USD

4,825

01/15/2030

1.572%

CPI#

Maturity

850,404

– 0

–

850,404

USD

4,825

01/15/2030

1.587%

CPI#

Maturity

844,095

– 0

–

844,095

USD

1,670

01/15/2030

1.714%

CPI#

Maturity

273,548

– 0

–

273,548

USD

1,670

01/15/2030

1.731%

CPI#

Maturity

271,042

– 0

–

271,042

USD

7,850

01/15/2031

2.782%

CPI#

Maturity

608,872

– 0

–

608,872

USD

6,150

01/15/2031

2.680%

CPI#

Maturity

535,380

– 0

–

535,380

USD

15,000

12/02/2035

2.074%

CPI#

Maturity

2,328,614

– 0

–

2,328,614

USD

25,000

04/01/2036

2.438%

CPI#

Maturity

2,652,821

– 0

–

2,652,821

USD

32,000

04/29/2036

2.503%

CPI#

Maturity

3,078,947

– 0

–

3,078,947

USD

10,000

05/01/2036

2.510%

CPI#

Maturity

951,470

– 0

–

951,470

USD

10,000

08/03/2036

2.488%

CPI#

Maturity

854,376

– 0

–

854,376

58    ^|    AB MUNICIPAL 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	20,000		08/06/2036	2.440%	CPI#	Maturity	$	1,813,012	$	– 0	–	$	1,813,012
USD	40,000		10/04/2036	2.510%	CPI#	Maturity		2,897,724		– 0	–		2,897,724
USD	35,000		11/02/2036	2.638%	CPI#	Maturity		1,949,385		– 0	–		1,949,385
							$	61,416,886	$	– 0	–	$	61,416,886

# 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	37,000		01/15/2027	1 Day SOFR	2.484%		Annual	$	(2,133,218	)	$	– 0	–	$	(2,133,218	)
USD	70,000		04/15/2032	1.254%	1 Day SOFR		Annual		14,451,449			– 0	–		14,451,449
USD	55,000		04/15/2032	2.677%	1 Day SOFR		Annual		4,828,082			– 0	–		4,828,082
USD	37,000		04/15/2032	2.316%	1 Day SOFR		Annual		4,340,939			– 0	–		4,340,939
USD	20,000		04/15/2032	1.658%	1 Day SOFR		Annual		3,451,724			– 0	–		3,451,724
USD	20,000		04/15/2032	1.862%	1 Day SOFR		Annual		3,109,317			– 0	–		3,109,317
								$	28,048,293		$	– 0	–	$	28,048,293

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	48	$	(10,936	)	$	(4,502	)	$	(6,434	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	419		(94,780	)		(50,341	)		(44,439	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	28		(6,340	)		(3,266	)		(3,074	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	27		(6,022	)		(2,502	)		(3,520	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	330		(74,651	)		(31,055	)		(43,596	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	496		(112,214	)		(45,482	)		(66,732	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	851		(192,729	)		(98,616	)		(94,113	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	162		(36,612	)		(19,365	)		(17,247	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	430		(97,316	)		(38,285	)		(59,031	)
												$	(631,600	)	$	(293,414	)	$	(338,186	)

* Termination date

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

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

86,000

01/15/2027

3.600%

CPI#

Maturity

$

3,185,117

$

– 0

–

$

3,185,117

Bank of America, NA

USD

25,000

02/02/2032

2.403%

CPI#

Maturity

2,561,787

– 0

–

2,561,787

Barclays Bank PLC

USD

25,000

08/07/2024

2.573%

CPI#

Maturity

615,707

– 0

–

615,707

Barclays Bank PLC

USD

19,000

05/05/2025

2.125%

CPI#

Maturity

2,057,072

– 0

–

2,057,072

Barclays Bank PLC

USD

5,400

03/06/2027

2.695%

CPI#

Maturity

(67,454

)

– 0

–

(67,454

)

Barclays Bank PLC

USD

20,000

06/06/2032

2.145%

CPI#

Maturity

2,804,694

– 0

–

2,804,694

Barclays Bank PLC

USD

14,000

09/01/2032

2.128%

CPI#

Maturity

2,039,550

– 0

–

2,039,550

Barclays Bank PLC

USD

22,000

08/29/2033

2.368%

CPI#

Maturity

2,307,653

– 0

–

2,307,653

Citibank, NA

USD

15,500

12/07/2022

2.748%

CPI#

Maturity

(425,809

)

– 0

–

(425,809

)

Citibank, NA

USD

47,000

05/24/2023

2.533%

CPI#

Maturity

273,903

– 0

–

273,903

Citibank, NA

USD

30,000

10/29/2023

2.524%

CPI#

Maturity

710,716

– 0

–

710,716

Citibank, NA

USD

30,000

09/19/2024

2.070%

CPI#

Maturity

3,533,955

– 0

–

3,533,955

Citibank, NA

USD

25,000

07/03/2025

2.351%

CPI#

Maturity

2,321,730

– 0

–

2,321,730

Citibank, NA

USD

15,800

02/08/2028

2.940%

CPI#

Maturity

(738,712

)

– 0

–

(738,712

)

Citibank, NA

USD

12,000

11/05/2033

2.273%

CPI#

Maturity

1,436,235

– 0

–

1,436,235

Citibank, NA

USD

35,000

02/15/2041

2.888%

CPI#

Maturity

(234,024

)

– 0

–

(234,024

)

Citibank, NA

USD

13,000

02/15/2041

2.744%

CPI#

Maturity

209,368

– 0

–

209,368

Deutsche Bank AG

USD

25,000

09/02/2025

1.880%

CPI#

Maturity

3,258,149

– 0

–

3,258,149

Goldman Sachs International

USD

57,000

04/15/2024

4.308%

CPI#

Maturity

2,207,438

– 0

–

2,207,438

Goldman Sachs International

USD

59,000

01/15/2027

4.353%

CPI#

Maturity

(542,474

)

– 0

–

(542,474

)

Goldman Sachs International

USD

39,000

01/15/2027

3.534%

CPI#

Maturity

1,600,629

– 0

–

1,600,629

Goldman Sachs International

USD

37,000

01/15/2027

4.193%

CPI#

Maturity

159,560

– 0

–

159,560

Goldman Sachs International

USD

28,000

01/15/2027

4.215%

CPI#

Maturity

(16,538

)

– 0

–

(16,538

)

Goldman Sachs International

USD

18,000

04/15/2032

2.994%

CPI#

Maturity

903,068

– 0

–

903,068

Goldman Sachs International

USD

20,000

02/15/2041

2.890%

CPI#

Maturity

(141,771

)

– 0

–

(141,771

)

Goldman Sachs International

USD

15,000

02/15/2041

2.815%

CPI#

Maturity

74,692

– 0

–

74,692

Goldman Sachs International

USD

14,000

02/15/2041

2.380%

CPI#

Maturity

999,748

– 0

–

999,748

Goldman Sachs International

USD

7,000

02/15/2041

2.413%

CPI#

Maturity

466,305

– 0

–

466,305

60    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

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

200,000

01/18/2023

3.793%

CPI#

Maturity

$

7,449,296

$

– 0

–

$

7,449,296

JPMorgan Chase Bank, NA

USD

150,000

01/18/2023

3.825%

CPI#

Maturity

5,538,652

– 0

–

5,538,652

JPMorgan Chase Bank, NA

USD

100,000

01/18/2023

3.788%

CPI#

Maturity

3,729,603

– 0

–

3,729,603

JPMorgan Chase Bank, NA

USD

1,400

06/30/2026

2.890%

CPI#

Maturity

(80,730

)

– 0

–

(80,730

)

JPMorgan Chase Bank, NA

USD

3,300

07/21/2026

2.935%

CPI#

Maturity

(223,953

)

– 0

–

(223,953

)

JPMorgan Chase Bank, NA

USD

2,400

10/03/2026

2.485%

CPI#

Maturity

48,080

– 0

–

48,080

JPMorgan Chase Bank, NA

USD

5,400

11/14/2026

2.488%

CPI#

Maturity

101,864

– 0

–

101,864

JPMorgan Chase Bank, NA

USD

4,850

12/23/2026

2.484%

CPI#

Maturity

108,001

– 0

–

108,001

JPMorgan Chase Bank, NA

USD

13,000

03/01/2027

2.279%

CPI#

Maturity

1,374,072

– 0

–

1,374,072

JPMorgan Chase Bank, NA

USD

45,000

01/15/2028

3.861%

CPI#

Maturity

399,931

– 0

–

399,931

JPMorgan Chase Bank, NA

USD

21,350

02/20/2028

2.899%

CPI#

Maturity

(819,339

)

– 0

–

(819,339

)

JPMorgan Chase Bank, NA

USD

12,000

03/26/2028

2.880%

CPI#

Maturity

(397,003

)

– 0

–

(397,003

)

JPMorgan Chase Bank, NA

USD

10,000

07/03/2028

2.356%

CPI#

Maturity

1,000,933

– 0

–

1,000,933

JPMorgan Chase Bank, NA

USD

25,000

11/05/2028

2.234%

CPI#

Maturity

2,820,287

– 0

–

2,820,287

JPMorgan Chase Bank, NA

USD

18,000

04/17/2030

2.378%

CPI#

Maturity

1,787,081

– 0

–

1,787,081

JPMorgan Chase Bank, NA

USD

29,000

04/15/2032

2.944%

CPI#

Maturity

1,604,049

– 0

–

1,604,049

JPMorgan Chase Bank, NA

USD

24,000

11/17/2032

2.183%

CPI#

Maturity

3,264,548

– 0

–

3,264,548

Morgan Stanley Capital Services LLC

USD

10,000

04/16/2023

2.690%

CPI#

Maturity

(115,067

)

– 0

–

(115,067

)

Morgan Stanley Capital Services LLC

USD

5,000

08/15/2026

2.885%

CPI#

Maturity

(284,471

)

– 0

–

(284,471

)

$

58,866,128

$

– 0

–

$

58,866,128

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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

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

1.125%

SIFMA*

Quarterly

$

1,472,321

$

– 0

–

$

1,472,321

* 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, 2022, the aggregate market value of these securities amounted to $110,508,806 or 5.0% of net assets.

(b) IO – Interest Only.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2022.

(d) When-Issued or delayed delivery security.

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

(f) Non-income producing security.

(g) Defaulted.

(h) 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.

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

(j) Fair valued by the Adviser.

(k) Affiliated investments.

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

(m) 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, 2022, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 3.2% and 0.4%, respectively.

Glossary:

ACA – ACA Financial Guaranty Corporation

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

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

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

MUNIPSA – SIFMA Municipal Swap Index

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.

62    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $2,351,355,070)	$	2,119,877,301
Affiliated issuers (cost $10,358,484)		10,358,484
Cash		8,065
Cash collateral due from broker		37,615,601
Unrealized appreciation on inflation swaps		62,953,473
Interest receivable		27,631,795
Receivable for capital stock sold		8,028,536
Receivable for variation margin on centrally cleared swaps		2,063,307
Unrealized appreciation on interest rate swaps		1,472,321
Receivable for investment securities sold		190,000
Affiliated dividends receivable		29,054
Total assets		2,270,227,937
Liabilities
Cash collateral due to broker		49,024,394
Payable for investment securities purchased		13,855,478
Payable for capital stock redeemed		8,302,477
Unrealized depreciation on inflation swaps		4,087,345
Advisory fee payable		673,902
Market value on credit default swaps (net premiums received $293,414)		631,600
Distribution fee payable		130,997
Administrative fee payable		31,456
Transfer Agent fee payable		21,125
Directors’ fees payable		4,195
Accrued expenses		370,567
Total liabilities		77,133,536
Net Assets	$	2,193,094,401
Composition of Net Assets
Capital stock, at par	$	214,612
Additional paid-in capital		2,337,308,009
Accumulated loss		(144,428,220	)
Net Assets	$	2,193,094,401

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	308,985,916		30,175,623	$	10.24	*
C	$	25,986,248		2,541,373	$	10.23
Advisor	$	948,603,522		92,570,086	$	10.25
1	$	594,155,115		58,367,637	$	10.18
2	$	315,363,600		30,957,288	$	10.19

* The maximum offering price per share for Class A shares was $10.56 which reflects a sales charge of 3.00%.

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    63

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest	$	49,939,553
Dividends—Affiliated issuers		338,013		$	50,277,566
Expenses
Advisory fee (see Note B)		12,444,644
Distribution fee—Class A		987,618
Distribution fee—Class C		270,252
Distribution fee—Class 1		621,402
Transfer agency—Class A		146,594
Transfer agency—Class C		10,881
Transfer agency—Advisor Class		449,466
Transfer agency—Class 1		36,918
Transfer agency—Class 2		17,960
Registration fees		298,334
Custody and accounting		210,059
Printing		93,966
Administrative		92,196
Audit and tax		91,985
Legal		60,666
Directors’ fees		49,105
Miscellaneous		54,160
Total expenses		15,936,206
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,676,527	)
Net expenses					14,259,679
Net investment income					36,017,887
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					(41,413,924	)
Swaps					607,936
Net change in unrealized appreciation (depreciation) of:
Investments					(276,466,716	)
Swaps					122,063,713
Net loss on investment transactions					(195,208,991	)
Net Decrease in Net Assets from Operations				$	(159,191,104	)

See notes to financial statements.

64    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	36,017,887		$	22,742,956
Net realized loss on investment transactions		(40,805,988	)		(490,330	)
Net change in unrealized appreciation (depreciation) of investments		(154,403,003	)		81,627,277
Contributions from Affiliates (see Note B)		– 0	–		555,677
Net increase (decrease) in net assets from operations		(159,191,104	)		104,435,580
Distributions to Shareholders
Class A		(4,564,616	)		(3,352,419	)
Class C		(123,917	)		(95,535	)
Advisor Class		(16,355,224	)		(6,909,813	)
Class 1		(8,507,777	)		(8,721,933	)
Class 2		(4,417,481	)		(4,212,452	)
Capital Stock Transactions
Net increase		370,480,605			943,374,359
Total increase		177,320,486			1,024,517,787
Net Assets
Beginning of period		2,015,773,915			991,256,128
End of period	$	2,193,094,401		$	2,015,773,915

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    65

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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% 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 convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. 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 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures

66    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    67

NOTES TO FINANCIAL STATEMENTS (continued)

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 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)

68    ^|    AB MUNICIPAL BOND  INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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 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, 2022:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

1,977,974,145

$

– 0

–

$

1,977,974,145

Short-Term Municipal Notes

– 0

–

105,710,000

– 0

–

105,710,000

Corporates – Investment Grade

– 0

–

19,334,203

– 0

–

19,334,203

Corporates – Non-Investment Grade

– 0

–

6,617,323

144,604

6,761,927

Commercial Mortgage-Backed Securities

– 0

–

5,295,274

– 0

–

5,295,274

Governments – Treasuries

– 0

–

4,551,562

– 0

–

4,551,562

Collateralized Mortgage Obligations

– 0

–

250,190

– 0

–

250,190

Short-Term Investments

10,358,484

– 0

–

– 0

–

10,358,484

Total Investments in Securities

10,358,484

2,119,732,697

144,604

2,130,235,785

Other Financial Instruments(a):

Assets:

Centrally Cleared Inflation (CPI) Swaps

– 0

–

61,416,886

– 0

–

61,416,886

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

30,181,511

– 0

–

30,181,511

(b)

Inflation (CPI) Swaps

– 0

–

62,953,473

– 0

–

62,953,473

Interest Rate Swaps

– 0

–

1,472,321

– 0

–

1,472,321

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    69

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Centrally Cleared Interest Rate Swaps	$	– 0	–	$	(2,133,218	)	$	– 0	–	$	(2,133,218	)(b)
Credit Default Swaps		– 0	–		(631,600	)		– 0	–		(631,600	)
Inflation (CPI) Swaps		– 0	–		(4,087,345	)		– 0	–		(4,087,345	)
Total	$	10,358,484		$	2,268,904,725		$	144,604		$	2,279,407,813

(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, written options and written swaptions 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes 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.

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,

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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, 2023 and then may be extended by the Adviser for additional one-year terms. For the year ended October 31, 2022, such reimbursements/waivers amounted to $1,604,631.

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, 2022, the reimbursement for such services amounted to $92,196.

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 $146,048 for the year ended October 31, 2022.

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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 $263,757 and $9,272 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $71,896.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	63,364	$	1,232,947	$	1,285,953	$	10,358	$	338

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 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

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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 $517,157 and $1,797,003 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, 2022 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	1,136,054,328	$	578,380,075
U.S. government securities		2,599,953		1,416,093

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

Cost	$	2,361,713,556
Gross unrealized appreciation	$	156,875,853
Gross unrealized depreciation		(238,253,468	)
Net unrealized depreciation	$	(81,377,615	)

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 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

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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 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

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

Interest Rate Swaps:

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

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

During the year ended October 31, 2022, 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

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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, 2022, 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 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

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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, 2022, 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, 2022, 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	$	91,598,397	*	Receivable/Payable for variation margin on centrally cleared swaps	$	2,133,218	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		1,472,321
Interest rate contracts	Unrealized appreciation on inflation swaps		62,953,473		Unrealized depreciation on inflation swaps		4,087,345
Credit contracts					Market value on credit default swaps		631,600
Total		$	156,024,191			$	6,852,163

* 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	$	483,733	$	121,726,047
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		124,203		337,666
Total		$	607,936	$	122,063,713

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The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Interest Rate Swaps:
Average notional amount	$	14,482,692
Inflation Swaps:
Average notional amount	$	1,196,323,077
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	245,338,462
Centrally Cleared Inflation Swaps:
Average notional amount	$	843,527,692
Credit Default Swaps:
Average notional amount of sale contracts	$	3,579,953

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, 2022. 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	$	5,746,904	$	– 0	–	$	(655,000	)	$	(5,091,904	)	$	– 0	–
Barclays Bank PLC		9,824,676		(67,454	)		(9,442,500	)		– 0	–		314,722
Citibank, NA/Citigroup Global Markets, Inc.		9,958,228		(1,504,261	)		(8,332,894	)		– 0	–		121,073
Deutsche Bank AG		3,258,149		– 0	–		(3,139,000	)		– 0	–		119,149
Goldman Sachs International		6,411,440		(834,711	)		– 0	–		(5,164,583	)		412,146
JPMorgan Chase Bank, NA		29,226,397		(1,521,025	)		(27,455,000	)		– 0	–		250,372
Total	$	64,425,794	$	(3,927,451	)	$	(49,024,394	)	$	(10,256,487	)	$	1,217,462	^

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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
Barclays Bank PLC	$	67,454	$	(67,454	)	$	– 0	–	$	– 0	–	$	– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		1,504,261		(1,504,261	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		391,956		– 0	–		– 0	–		(391,956	)		– 0	–
Goldman Sachs International		834,711		(834,711	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA		1,521,025		(1,521,025	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services LLC		399,538		– 0	–		– 0	–		(190,800	)		208,738
Total	$	4,718,945	$	(3,927,451	)	$	– 0	–	$	(582,756	)	$	208,738	^

* 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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		20,786,123			26,407,533		$	227,190,213		$	286,981,285
Shares issued in reinvestment of dividends		256,254			200,012			2,761,704			2,153,486
Shares converted from Class C		70,654			137,753			756,530			1,489,456
Shares redeemed		(23,990,159	)		(7,132,735	)		(257,236,835	)		(77,134,430	)
Net increase (decrease)		(2,877,128	)		19,612,563		$	(26,528,388	)	$	213,489,797
Class C
Shares sold		1,491,246			1,415,025		$	16,249,698		$	15,365,751
Shares issued in reinvestment of dividends		9,150			7,049			97,341			75,748
Shares converted to Class A		(70,744	)		(137,881	)		(756,530	)		(1,489,456	)
Shares redeemed		(711,491	)		(112,864	)		(7,556,918	)		(1,219,898	)
Net increase		718,161			1,171,329		$	8,033,591		$	12,732,145

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	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Advisor Class
Shares sold		106,945,004			63,621,228		$	1,163,480,337		$	693,291,421
Shares issued in reinvestment of dividends		1,005,972			446,488			10,820,742			4,831,370
Shares redeemed		(91,220,153	)		(6,255,946	)		(971,609,434	)		(67,976,037	)
Net increase		16,730,823			57,811,770		$	202,691,645		$	630,146,754
Class 1
Shares sold		18,622,654			12,539,527		$	201,949,554		$	135,703,463
Shares issued in reinvestment of dividends		595,910			601,091			6,366,894			6,424,253
Shares redeemed		(11,503,338	)		(5,865,521	)		(122,716,651	)		(62,849,375	)
Net increase		7,715,226			7,275,097		$	85,599,797		$	79,278,341
Class 2
Shares sold		14,163,464			3,793,264		$	152,841,464		$	41,218,325
Shares issued in reinvestment of dividends		257,519			297,652			2,754,756			3,180,510
Shares redeemed		(5,173,157	)		(3,422,732	)		(54,912,260	)		(36,671,513	)
Net increase		9,247,826			668,184		$	100,683,960		$	7,727,322

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) and regional and global conflicts, that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. 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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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 decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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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.

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk—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.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	1,429,775	$	1,319,862
Total taxable distributions	$	1,429,775	$	1,319,862
Tax-exempt distributions		32,539,240		21,972,290
Total distributions paid	$	33,969,015	$	23,292,152

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed tax-exempt income	$	1,999,908
Accumulated capital and other losses		(65,050,825	)(a)
Unrealized appreciation (depreciation)		(81,377,303	)(b)
Total accumulated earnings/(deficit)	$	(144,428,220	)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $65,050,825.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $52,705,359 and a net long-term capital loss carryforward of $12,345,466, which may be carried forward for an indefinite period.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.03			$  10.30			$  10.24			$  10.02			$  10.28
Income From Investment Operations
Net investment income(a)(b)		.13			.16			.22			.24			.22
Net realized and unrealized gain (loss) on investment transactions		(.79	)		.75			.07	(c)		.21			(.26	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.66	)		.91			.29			.45			(.04	)
Less: Dividends
Dividends from net investment income		(.13	)		(.18	)		(.23	)		(.23	)		(.22	)
Net asset value, end of period		$  10.24			$  11.03			$  10.30			$  10.24			$  10.02
Total Return
Total investment return based on net asset value(e)*		(6.06	)%		8.89	%		2.85	%		4.58	%		(.42	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$308,986			$364,599			$138,454			$54,316			$75,127
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Expenses, before waivers/reimbursements		.82	%		.84	%		.85	%		.86	%		.86	%
Net investment income(b)		1.24	%		1.51	%		2.14	%		2.32	%		2.13	%
Portfolio turnover rate		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 92.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.02			$  10.29			$  10.22			$  10.01			$  10.26
Income From Investment Operations
Net investment income(a)(b)		.06			.08			.14			.16			.14
Net realized and unrealized gain (loss) on investment transactions		(.80	)		.74			.08	(c)		.20			(.25	)
Contributions from Affiliates		– 0	–		.01			– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.74	)		.83			.22			.36			(.11	)
Less: Dividends
Dividends from net investment income		(.05	)		(.10	)		(.15	)		(.15	)		(.14	)
Net asset value, end of period		$  10.23			$  11.02			$  10.29			$  10.22			$  10.01
Total Return
Total investment return based on net asset value(e)*		(6.75	)%		8.12	%		2.16	%		3.63	%		(1.09	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$25,986			$20,086			$6,710			$7,717			$10,681
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		1.58	%		1.59	%		1.61	%		1.61	%		1.61	%
Net investment income(b)		.54	%		.75	%		1.43	%		1.57	%		1.37	%
Portfolio turnover rate		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 92.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.04			$  10.31			$  10.24			$  10.03			$  10.29
Income From Investment Operations
Net investment income(a)(b)		.16			.18			.25			.26			.24
Net realized and unrealized gain (loss) on investment transactions		(.80	)		.75			.07	(c)		.21			(.26	)
Contributions from Affiliates		– 0	–		.01			– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.64	)		.94			.32			.47			(.02	)
Less: Dividends
Dividends from net investment income		(.15	)		(.21	)		(.25	)		(.26	)		(.24	)
Net asset value, end of period		$  10.25			$  11.04			$  10.31			$  10.24			$  10.03
Total Return
Total investment return based on net asset value(e)*		(5.82	)%		9.14	%		3.19	%		4.76	%		(.17	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$948,603			$837,132			$185,829			$205,541			$226,145
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.58	%		.59	%		.60	%		.61	%		.61	%
Net investment income(b)		1.52	%		1.70	%		2.43	%		2.57	%		2.37	%
Portfolio turnover rate		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 92.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.97			$  10.25			$  10.19			$  9.98			$  10.25
Income From Investment Operations
Net investment income(a)(b)		.15			.18			.23			.25			.23
Net realized and unrealized gain (loss) on investment transactions		(.79	)		.74			.07	(c)		.22			(.26	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.64	)		.92			.30			.47			(.03	)
Less: Dividends
Dividends from net investment income		(.15	)		(.20	)		(.24	)		(.26	)		(.24	)
Net asset value, end of period		$  10.18			$  10.97			$  10.25			$  10.19			$  9.98
Total Return
Total investment return based on net asset value(e)*		(5.92	)%		9.01	%		3.04	%		4.72	%		(.32	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$594,155			$555,642			$444,500			$498,857			$485,386
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.64	%		.66	%		.67	%		.67	%		.67	%
Net investment income(b)		1.43	%		1.72	%		2.33	%		2.47	%		2.27	%
Portfolio turnover rate		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 92.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  10.98			$  10.25			$  10.19			$  9.99			$  10.25
Income From Investment Operations
Net investment income(a)(b)		.17			.20			.24			.26			.24
Net realized and unrealized gain (loss) on investment transactions		(.80	)		.74			.07	(c)		.21			(.25	)
Contributions from Affiliates		– 0	–		.00	(d)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.63	)		.94			.31			.47			(.01	)
Less: Dividends
Dividends from net investment income		(.16	)		(.21	)		(.25	)		(.27	)		(.25	)
Net asset value, end of period		$  10.19			$  10.98			$  10.25			$  10.19			$  9.99
Total Return
Total investment return based on net asset value(e)*		(5.83	)%		9.21	%		3.14	%		4.73	%		(.12	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$315,364			$238,315			$215,763			$238,306			$231,109
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.55	%		.56	%		.57	%		.57	%		.57	%
Net investment income(b)		1.56	%		1.84	%		2.43	%		2.57	%		2.37	%
Portfolio turnover rate.		27	%		10	%		29	%		12	%		15	%

See footnote summary on page 92.

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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, 2022, 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, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 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⁾

OFFICERS

Daryl Clements⁽²⁾, Vice President 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 Vice President 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. Clements, Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2005)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2005)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2008)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Daryl Clements 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Terrance T. Hults 56	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Matthew J. Norton 39	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Chief Investment Officer-Municipal Bonds.
Andrew D. Potter 37	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 2-4, 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

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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 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 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, 2021 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.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    107

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 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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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NOTES

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NOTES

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NOTES

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AB MUNICIPAL BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MBIS-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB SHORT DURATION INCOME PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 6, 2022

This report provides management’s discussion of fund performance for the AB Short Duration Income Portfolio for the annual reporting period ended October 31, 2022.

The Fund’s investment objective is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB SHORT DURATION INCOME PORTFOLIO1
Class A Shares		-3.76%		-8.94%
Class C Shares		-4.16%		-9.67%
Advisor Class Shares2		-3.67%		-8.76%
Bloomberg 1-5 Year US Government/Credit Index		-2.53%		-7.03%

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, 2022, by 0.01% and 0.01%, respectively.

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 1-5 Year US Government/Credit Index, for the six- and 12-month periods ended October 31, 2022.

During both periods, all share classes of the Fund underperformed the benchmark, before sales charges. Over the 12-month period, security selection detracted the most, relative to the benchmark, mainly due to selection within sovereign bonds, government-guaranteed sovereign bonds and technology, which was partially offset by a gain within the energy sector. Yield-curve positioning in the US detracted from performance. Sector allocation hampered results, as losses from exposure to collateralized loan obligations, emerging-market sovereigns and US agency mortgages exceeded gains from exposure to commercial mortgage-backed securities (“CMBS”). Country allocation to Canada and Australia contributed to performance, offset by a loss from exposure to the eurozone. Currency decisions did not materially impact performance during the period.

During the six-month period, security selection within sovereign bonds, technology and consumer cyclical detracted most from performance.

2    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

Yield-curve positioning in the US also hampered results. Industry allocation negatively impacted performance, mostly from exposure to collateralized loan obligations, collateralized mortgage obligations and US agency mortgages that exceeded gains from the utilization of high-yield credit default swaps and exposure to CMBS. Country allocation to Canada contributed, offsetting a loss from exposure to the eurozone. Currency decisions did not materially impact returns during the period.

During both periods, the Fund utilized derivatives in the form of treasury futures and interest rate swaps to manage and hedge duration risk and/or to take active yield-curve positioning. Consumer Price Index swaps were utilized to obtain active inflation exposure. Currency forwards were used to hedge foreign currency exposure. Credit default swap indices were used to take active high-yield credit risk. Total return swaps were used to create synthetic high-yield exposure in the Fund. CMBS indices were used to take active commercial real estate exposure. During the 12-month period, interest rate swaptions were used to manage and hedge duration risk, generate income and/or to take active yield-curve positioning.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

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) and regional and global conflicts, that affect large portions of the market.

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

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

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    5

DISCLOSURES AND RISKS (continued)

of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

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 and are subject to increased economic, political, regulatory or other uncertainties.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. 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.

6    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

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.

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.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    7

DISCLOSURES AND RISKS (continued)

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 2.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Effective on March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25%. 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 10/31/2022

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 10/31/2022) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 2.25% 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.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						5.06%
1 Year		-8.94%		-11.00%
Since Inception2		0.26%		-0.33%
CLASS C SHARES						4.37%
1 Year		-9.67%		-10.55%
Since Inception2		-0.56%		-0.56%
ADVISOR CLASS SHARES3						5.39%
1 Year		-8.76%		-8.76%
Since Inception2		0.41%		0.41%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.26%, 2.19% and 1.18% 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 limited the Fund’s total 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, 2023. 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, 2022.

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, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-12.17%
Since Inception1		-0.48%
CLASS C SHARES
1 Year		-11.75%
Since Inception1		-0.70%
ADVISOR CLASS SHARES2
1 Year		-9.98%
Since Inception1		0.27%

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, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	962.40	$	6.13		1.24	%
Hypothetical**	$	1,000	$	1,018.95	$	6.31		1.24	%
Class C
Actual	$	1,000	$	958.40	$	10.07		2.04	%
Hypothetical**	$	1,000	$	1,014.92	$	10.36		2.04	%
Advisor Class
Actual	$	1,000	$	963.30	$	5.15		1.04	%
Hypothetical**	$	1,000	$	1,019.96	$	5.30		1.04	%

* 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.

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PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $69.6

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    13

PORTFOLIO OF INVESTMENTS

October 31, 2022

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 72.2%
Spain – 0.5%
Spain Government Bond 0.80%, 07/30/2027(a)	EUR		356	$	323,605
United States – 71.7%
U.S. Treasury Bonds 6.875%, 08/15/2025	U.S.$		2,177		2,303,795
U.S. Treasury Notes 0.625%, 05/15/2030(b)			784		609,025
1.50%, 08/15/2026(c)			4,003		3,600,464
1.50%, 01/31/2027			499		444,132
1.625%, 10/31/2026(b)			4,590		4,131,984
1.625%, 08/15/2029			371		316,502
2.00%, 08/15/2025			2,662		2,490,353
2.125%, 07/31/2024			1,597		1,530,413
2.125%, 05/31/2026(c)			4,465		4,130,403
2.25%, 11/15/2024(c)			6,988		6,678,713
2.25%, 11/15/2025(c)			2,792		2,617,031
2.375%, 08/15/2024			524		503,599
2.625%, 05/31/2027			873		813,247
2.75%, 07/31/2027			6,250		5,841,610
2.875%, 08/15/2028			743		689,899
3.00%, 07/31/2024			7,900		7,687,687
3.125%, 11/15/2028(c)			3,613		3,394,056
3.25%, 06/30/2027			2,228		2,131,604
					49,914,517
Total Governments - Treasuries (cost $54,878,160)					50,238,122
CORPORATES - INVESTMENT GRADE – 12.7%
Financial Institutions – 7.2%
Banking – 6.4%
AIB Group PLC 7.583%, 10/14/2026(a)			209		207,802
AIB Group PLC 4.263%, 04/10/2025(a)			200		190,628
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(a)			119		104,339
Banco Santander SA 4.175%, 03/24/2028			200		176,146
Bank of America Corp. Series AA 6.10%, 03/17/2025(d)			52		50,113
Series X 6.25%, 09/05/2024(d)			83		80,785

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)	U.S.$		200	$	193,278
Barclays PLC 8.00%, 03/15/2029(d)			200		179,496
BNP Paribas SA 4.625%, 02/25/2031(a)(d)			282		195,246
6.625%, 03/25/2024(a)(d)			200		187,256
Credit Agricole SA 8.125%, 12/23/2025(a)(d)			200		199,016
Danske Bank A/S 4.298%, 04/01/2028(a)			200		176,454
First-Citizens Bank & Trust Co. 3.929%, 06/19/2024			15		14,766
HSBC Holdings PLC 4.041%, 03/13/2028			200		175,236
7.336%, 11/03/2026			200		200,394
JPMorgan Chase & Co. 4.323%, 04/26/2028			128		119,151
Series S 6.75%, 02/01/2024(d)			43		42,938
Mizuho Financial Group, Inc. 5.414%, 09/13/2028			200		193,168
Morgan Stanley 4.21%, 04/20/2028			51		47,206
6.296%, 10/18/2028			279		281,525
Natwest Group PLC 4.269%, 03/22/2025			200		192,830
Nordea Bank Abp 6.625%, 03/26/2026(a)(d)			200		189,258
PNC Financial Services Group, Inc. (The) Series O 6.46% (LIBOR 3 Month + 3.68%), 02/01/2023(d)(e)			12		11,981
Skandinaviska Enskilda Banken AB 6.875%, 06/30/2027(a)(d)			200		187,344
Standard Chartered PLC 3.971%, 03/30/2026(a)			200		183,936
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(d)			400		376,376
Truist Financial Corp. Series Q 5.10%, 03/01/2030(d)			150		131,881
UBS Group AG 7.00%, 01/31/2024(a)(d)			200		193,668
					4,482,217

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.6%
Aircastle Ltd. 2.85%, 01/26/2028(a)	U.S.$		5	$	3,759
4.125%, 05/01/2024			8		7,627
4.25%, 06/15/2026			2		1,764
4.40%, 09/25/2023			16		15,667
5.00%, 04/01/2023			3		2,979
5.25%, 08/11/2025(a)			52		48,657
Aviation Capital Group LLC 3.50%, 11/01/2027(a)			158		128,723
Synchrony Financial 2.875%, 10/28/2031			150		106,056
3.95%, 12/01/2027			57		49,062
4.875%, 06/13/2025			50		48,037
					412,331
REITs – 0.2%
Office Properties Income Trust 3.45%, 10/15/2031			180		110,166
VICI Properties LP/VICI Note Co., Inc. 4.625%, 06/15/2025(a)			31		29,168
					139,334
					5,033,882
Industrial – 5.3%
Basic – 0.4%
Arconic Corp. 6.00%, 05/15/2025(a)			15		14,843
Celanese US Holdings LLC 5.90%, 07/05/2024			40		39,309
6.05%, 03/15/2025			40		38,909
Glencore Funding LLC 1.625%, 09/01/2025(a)			114		101,420
4.875%, 03/12/2029(a)			115		105,770
					300,251
Capital Goods – 0.1%
Parker-Hannifin Corp. 4.50%, 09/15/2029			100		93,443
Communications - Media – 0.6%
Directv Financing LLC/Directv Financing Co-Obligor, Inc. 5.875%, 08/15/2027(a)			46		41,401
Interpublic Group of Cos., Inc. (The) 4.65%, 10/01/2028			210		194,000
Netflix, Inc. 4.375%, 11/15/2026			216		206,025
					441,426

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Other – 0.4%
Las Vegas Sands Corp. 3.90%, 08/08/2029	U.S.$		150	$	121,013
Sands China Ltd. 5.625%, 08/08/2025			200		175,500
					296,513
Consumer Non-Cyclical – 0.9%
BAT Capital Corp. 7.75%, 10/19/2032			74		75,638
BAT International Finance PLC 4.448%, 03/16/2028			116		102,938
Charles River Laboratories International, Inc. 4.00%, 03/15/2031(a)			32		26,929
Newell Brands, Inc.
4.45%, 04/01/2026			26		24,181
4.875%, 06/01/2025			7		6,754
6.375%, 09/15/2027			53		51,897
6.625%, 09/15/2029			53		51,794
Pilgrim’s Pride Corp. 5.875%, 09/30/2027(a)			250		244,558
					584,689
Energy – 0.8%
Boardwalk Pipelines LP 4.45%, 07/15/2027			107		98,943
Canadian Natural Resources Ltd. 3.85%, 06/01/2027			215		198,432
Continental Resources, Inc./OK 5.75%, 01/15/2031(a)			41		37,306
Ecopetrol SA 4.625%, 11/02/2031			15		10,331
5.375%, 06/26/2026			55		49,892
5.875%, 11/02/2051			7		4,120
6.875%, 04/29/2030			45		36,743
EQT Corp. 5.70%, 04/01/2028			39		37,956
7.00%, 02/01/2030			31		31,803
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.00%, 01/15/2032			46		37,904
Western Midstream Operating LP 3.95%, 06/01/2025			2		1,900
4.30%, 02/01/2030			20		17,580
					562,910
Services – 0.6%
Expedia Group, Inc. 3.80%, 02/15/2028			111		98,687

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Global Payments, Inc. 4.45%, 06/01/2028	U.S.$		216	$	196,502
5.30%, 08/15/2029			80		75,346
RELX Capital, Inc. 4.75%, 05/20/2032			17		15,827
					386,362
Technology – 1.3%
Broadcom, Inc. 3.137%, 11/15/2035(a)			22		15,259
4.00%, 04/15/2029(a)			53		46,513
4.30%, 11/15/2032			150		126,579
Entegris Escrow Corp. 4.75%, 04/15/2029(a)			112		100,010
Fiserv, Inc. 3.50%, 07/01/2029			222		192,903
HP, Inc. 4.75%, 01/15/2028			104		97,189
Micron Technology, Inc. 6.75%, 11/01/2029			147		147,069
Take-Two Interactive Software, Inc. 3.30%, 03/28/2024			56		54,369
Western Digital Corp. 4.75%, 02/15/2026			116		107,174
Workday, Inc. 3.70%, 04/01/2029			35		31,191
					918,256
Transportation - Airlines – 0.2%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(a)			114		111,047
					3,694,897
Utility – 0.2%
Electric – 0.2%
Chile Electricity PEC SpA Zero Coupon, 01/25/2028(a)			200		138,788
Total Corporates - Investment Grade (cost $9,709,498)					8,867,567
CORPORATES - NON-INVESTMENT GRADE – 10.7%
Industrial – 9.7%
Basic – 0.5%
ASP Unifrax Holdings, Inc. 5.25%, 09/30/2028(a)			10		8,040
INEOS Quattro Finance 2 PLC 3.375%, 01/15/2026(a)			200		168,702

18    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Kleopatra Finco Sarl 4.25%, 03/01/2026(a)	EUR		100	$	81,266
WR Grace Holdings LLC 4.875%, 06/15/2027(a)	U.S.$		72		62,989
					320,997
Capital Goods – 0.8%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 4.125%, 08/15/2026(a)			200		172,050
Bombardier, Inc. 7.50%, 12/01/2024(a)			9		8,977
7.50%, 03/15/2025(a)			15		14,748
Eco Material Technologies, Inc. 7.875%, 01/31/2027(a)			92		86,076
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(a)			61		58,560
LSB Industries, Inc. 6.25%, 10/15/2028(a)			34		30,956
Renk AG/Frankfurt am Main 5.75%, 07/15/2025(a)	EUR		100		89,128
TransDigm, Inc. 8.00%, 12/15/2025(a)	U.S.$		35		35,614
Triumph Group, Inc. 8.875%, 06/01/2024(a)			89		89,939
					586,048
Communications - Media – 1.2%
Altice Financing SA 5.00%, 01/15/2028(a)			200		159,792
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(a)			26		21,131
5.125%, 05/01/2027(a)			59		54,668
Clear Channel Outdoor Holdings, Inc. 5.125%, 08/15/2027(a)			60		53,994
CSC Holdings LLC 7.50%, 04/01/2028(a)			200		172,918
DISH DBS Corp. 5.00%, 03/15/2023			6		5,925
5.25%, 12/01/2026(a)			178		154,552
5.75%, 12/01/2028(a)			32		25,827
5.875%, 11/15/2024			53		48,882
McGraw-Hill Education, Inc. 5.75%, 08/01/2028(a)			56		49,299
Sirius XM Radio, Inc. 3.125%, 09/01/2026(a)			56		50,046
4.00%, 07/15/2028(a)			28		24,169
					821,203

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 0.1%
Consolidated Communications, Inc. 5.00%, 10/01/2028(a)	U.S.$		35	$	27,131
Frontier Communications Holdings LLC 6.75%, 05/01/2029(a)			10		8,243
					35,374
Consumer Cyclical - Automotive – 0.5%
Jaguar Land Rover Automotive PLC 5.875%, 11/15/2024(a)	EUR		116		108,555
7.75%, 10/15/2025(a)	U.S.$		217		200,261
Tenneco, Inc. 7.875%, 01/15/2029(a)			26		25,834
					334,650
Consumer Cyclical - Entertainment – 1.4%
Boyne USA, Inc. 4.75%, 05/15/2029(a)			16		13,999
Carnival Corp. 4.00%, 08/01/2028(a)			36		29,047
5.75%, 03/01/2027(a)			62		43,029
10.50%, 02/01/2026(a)			153		149,926
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(a)			159		157,919
Lindblad Expeditions LLC 6.75%, 02/15/2027(a)			28		25,082
Mattel, Inc. 5.875%, 12/15/2027(a)			102		99,163
NCL Corp. Ltd. 5.875%, 03/15/2026(a)			33		27,024
5.875%, 02/15/2027(a)			268		239,490
Royal Caribbean Cruises Ltd. 5.375%, 07/15/2027(a)			42		32,957
5.50%, 08/31/2026(a)			31		25,317
11.50%, 06/01/2025(a)			47		50,601
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(a)			20		20,515
Viking Cruises Ltd. 5.875%, 09/15/2027(a)			12		9,591
13.00%, 05/15/2025(a)			16		17,196
Viking Ocean Cruises Ship VII Ltd. 5.625%, 02/15/2029(a)			14		10,921
					951,777

20    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Other – 0.8%
Adams Homes, Inc. 7.50%, 02/15/2025(a)	U.S.$		13	$	10,512
Brookfield Residential Properties, Inc./Brookfield Residential US LLC 6.25%, 09/15/2027(a)			125		109,125
Churchill Downs, Inc. 4.75%, 01/15/2028(a)			59		52,265
Empire Communities Corp. 7.00%, 12/15/2025(a)			143		123,950
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(a)			85		70,922
Forestar Group, Inc. 3.85%, 05/15/2026(a)			41		35,230
Hilton Grand Vacations Borrower Escrow LLC/Hilton Grand Vacations Borrower Esc 4.875%, 07/01/2031(a)			9		7,362
5.00%, 06/01/2029(a)			45		38,726
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(a)			12		11,871
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028(a)			11		9,276
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(a)			15		14,105
Travel + Leisure Co. 6.625%, 07/31/2026(a)			20		19,515
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25%, 05/15/2027(a)			33		28,741
					531,600
Consumer Cyclical - Restaurants – 0.1%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(a)			17		14,956
4.375%, 01/15/2028(a)			81		71,205
					86,161
Consumer Cyclical - Retailers – 0.5%
Bath & Body Works, Inc. 7.50%, 06/15/2029			188		178,307
9.375%, 07/01/2025(a)			6		6,252
Dufry One BV 2.50%, 10/15/2024(a)	EUR		100		94,501
Hanesbrands, Inc. 4.625%, 05/15/2024(a)	U.S.$		35		34,025
Michaels Cos, Inc. (The) 5.25%, 05/01/2028(a)			73		51,930

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Rite Aid Corp. 7.50%, 07/01/2025(a)	U.S.$		9	$	6,341
Staples, Inc. 7.50%, 04/15/2026(a)			15		13,046
					384,402
Consumer Non-Cyclical – 0.6%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 02/15/2023(a)			154		152,984
5.875%, 02/15/2028(a)			87		81,801
Legacy LifePoint Health LLC 4.375%, 02/15/2027(a)			114		90,009
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(a)			7		5,591
RP Escrow Issuer LLC 5.25%, 12/15/2025(a)			39		29,342
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			81		73,341
					433,068
Energy – 0.8%
Blue Racer Midstream LLC/Blue Racer Finance Corp. 7.625%, 12/15/2025(a)			156		154,406
Callon Petroleum Co. 8.00%, 08/01/2028(a)			21		20,941
CITGO Petroleum Corp. 7.00%, 06/15/2025(a)			33		32,528
Civitas Resources, Inc. 5.00%, 10/15/2026(a)			30		27,655
Crescent Energy Finance LLC 7.25%, 05/01/2026(a)			28		25,966
Genesis Energy LP/Genesis Energy Finance Corp. 7.75%, 02/01/2028			15		14,301
8.00%, 01/15/2027			21		20,388
Nabors Industries Ltd. 7.25%, 01/15/2026(a)			12		11,572
Nabors Industries, Inc. 7.375%, 05/15/2027(a)			46		45,324
New Fortress Energy, Inc. 6.75%, 09/15/2025(a)			75		73,646
NGL Energy Operating LLC/NGL Energy Finance Corp. 7.50%, 02/01/2026(a)			44		39,836
Summit Midstream Holdings LLC/Summit Midstream Finance Corp. 8.50%, 10/15/2026(a)			40		38,410

22    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Sunnova Energy Corp. 5.875%, 09/01/2026(a)	U.S.$		25	$	22,047
					527,020
Other Industrial – 0.0%
Avient Corp. 5.75%, 05/15/2025(a)			16		15,685
Services – 1.0%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(a)			57		54,563
APX Group, Inc. 6.75%, 02/15/2027(a)			53		51,802
Block, Inc. 2.75%, 06/01/2026			81		72,488
Garda World Security Corp. 4.625%, 02/15/2027(a)			59		52,497
Millennium Escrow Corp. 6.625%, 08/01/2026(a)			50		36,008
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(a)			78		60,268
Prime Security Services Borrower LLC/Prime Finance, Inc. 3.375%, 08/31/2027(a)			168		145,908
6.25%, 01/15/2028(a)			82		75,939
Sabre GLBL, Inc. 9.25%, 04/15/2025(a)			84		81,896
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026(a)			15		14,005
ZipRecruiter, Inc. 5.00%, 01/15/2030(a)			63		51,604
					696,978
Technology – 0.6%
Avaya, Inc. 6.125%, 09/15/2028(a)			51		21,577
NCR Corp. 5.00%, 10/01/2028(a)			105		89,005
NortonLifeLock, Inc. 6.75%, 09/30/2027(a)			106		104,568
Presidio Holdings, Inc. 4.875%, 02/01/2027(a)			56		51,680
8.25%, 02/01/2028(a)			2		1,782
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(a)			214		179,942
Virtusa Corp. 7.125%, 12/15/2028(a)			10		7,196
					455,750

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Airlines – 0.3%
Air Canada 3.875%, 08/15/2026(a)	U.S.$		12	$	10,613
Allegiant Travel Co. 7.25%, 08/15/2027(a)			47		44,292
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(a)			99		94,351
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. 5.75%, 01/20/2026(a)			24		21,963
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(a)			41		41,119
					212,338
Transportation - Services – 0.5%
Albion Financing 1 SARL/Aggreko Holdings, Inc. 6.125%, 10/15/2026(a)			200		170,968
EC Finance PLC 3.00%, 10/15/2026(a)	EUR		100		87,105
Loxam SAS 4.50%, 02/15/2027(a)			100		87,626
PROG Holdings, Inc. 6.00%, 11/15/2029(a)	U.S.$		30		24,382
					370,081
					6,763,132
Financial Institutions – 0.8%
Banking – 0.4%
Bread Financial Holdings, Inc. 4.75%, 12/15/2024(a)			35		30,781
7.00%, 01/15/2026(a)			7		6,042
Credit Suisse Group AG 5.25%, 02/11/2027(a)(d)			368		261,280
					298,103
Brokerage – 0.1%
Advisor Group Holdings, Inc. 10.75%, 08/01/2027(a)			52		51,925
Finance – 0.1%
Castlelake Aviation Finance DAC 5.00%, 04/15/2027(a)			62		52,687
Curo Group Holdings Corp. 7.50%, 08/01/2028(a)			53		31,283
					83,970

24    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITs – 0.2%
Diversified Healthcare Trust 9.75%, 06/15/2025	U.S.$		167	$	157,751
					591,749
Utility – 0.2%
Electric – 0.1%
Calpine Corp. 5.125%, 03/15/2028(a)			8		7,117
Vistra Operations Co. LLC 5.625%, 02/15/2027(a)			68		64,807
					71,924
Other Utility – 0.1%
Solaris Midstream Holdings LLC 7.625%, 04/01/2026(a)			54		51,665
					123,589
Total Corporates – Non-Investment Grade (cost $8,323,572)					7,478,470
COLLATERALIZED MORTGAGE OBLIGATIONS – 6.8%
Risk Share Floating Rate – 6.6%
Bellemeade Re Ltd. Series 2019-1A, Class M1B 5.336% (LIBOR 1 Month + 1.75%), 03/25/2029(a)(e)			17		17,085
Series 2019-1A, Class M2 6.286% (LIBOR 1 Month + 2.70%), 03/25/2029(a)(e)			152		150,488
Series 2019-4A, Class M2 6.436% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(e)			150		142,609
Series 2022-1, Class M1B 5.147% (SOFR + 2.15%), 01/26/2032(a)(e)			193		185,241
Series 2022-2, Class M1A 7.025% (SOFR + 4.00%), 09/27/2032(a)(e)			200		199,999
Connecticut Avenue Securities Trust Series 2022-R07, Class 1M1 5.975% (SOFR + 2.95%), 06/25/2042(a)(e)			229		230,226
Series 2022-R08, Class 1M2 6.597% (SOFR + 3.60%), 07/25/2042(a)(e)			73		68,979
Connecticut Avenue Securities Trust Series 2019-R02, Class 1M2 5.886% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(e)			1		1,374

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-R03, Class 1M2 5.736% (LIBOR 1 Month + 2.15%), 09/25/2031(a)(e)	U.S.$		2	$	2,301
Series 2022-R08, Class 1M1 5.547% (SOFR + 2.55%), 07/25/2042(a)(e)			238		237,285
Eagle Re Ltd. Series 2021-2, Class M1B 5.047% (SOFR + 2.05%), 04/25/2034(a)(e)			150		146,030
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2022-HQA3, Class M1A 5.297% (SOFR + 2.30%), 08/25/2042(a)(e)			139		137,800
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2015-HQA1, Class M3 8.286% (LIBOR 1 Month + 4.70%), 03/25/2028(e)			85		86,357
Series 2017-DNA1, Class M2 6.836% (LIBOR 1 Month + 3.25%), 07/25/2029(e)			149		151,652
Series 2019-DNA4, Class M2 5.536% (LIBOR 1 Month + 1.95%), 10/25/2049(a)(e)			3		2,646
Series 2020-DNA1, Class M2 5.286% (LIBOR 1 Month + 1.70%), 01/25/2050(a)(e)			29		28,561
Series 2021-DNA5, Class M2 4.647% (SOFR + 1.65%), 01/25/2034(a)(e)			65		63,335
Series 2021-DNA6, Class M2 4.497% (SOFR + 1.50%), 10/25/2041(a)(e)			150		137,666
Series 2021-DNA7, Class M2 4.797% (SOFR + 1.80%), 11/25/2041(a)(e)			225		206,368
Series 2021-HQA4, Class M1 3.947% (SOFR + 0.95%), 12/25/2041(a)(e)			593		557,432
Series 2022-DNA2, Class M1B 5.397% (SOFR + 2.40%), 02/25/2042(a)(e)			144		132,480
Series 2022-HQA1, Class M1B 6.497% (SOFR + 3.50%), 03/25/2042(a)(e)			20		19,017
Series 2022-HQA2, Class M1B 6.997% (SOFR + 4.00%), 07/25/2042(a)(e)			184		179,400
Federal National Mortgage Association Connecticut Avenue Securities
Series 2014-C04, Class 1M2 8.486% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			89		91,078
Series 2015-C02, Class 1M2 7.586% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			18		18,079

26    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C03, Class 1M2 8.586% (LIBOR 1 Month + 5.00%), 07/25/2025(e)	U.S.$		21	$	21,685
Series 2015-C04, Class 2M2 9.136% (LIBOR 1 Month + 5.55%), 04/25/2028(e)			3		2,627
Series 2016-C01, Class 1M2 10.336% (LIBOR 1 Month + 6.75%), 08/25/2028(e)			63		65,012
Series 2016-C01, Class 2M2 10.536% (LIBOR 1 Month + 6.95%), 08/25/2028(e)			9		9,744
Series 2016-C04, Class 1B 13.836% (LIBOR 1 Month + 10.25%), 01/25/2029(e)			118		122,437
Series 2017-C02, Class 2B1 9.086% (LIBOR 1 Month + 5.50%), 09/25/2029(e)			24		25,543
Series 2018-C01, Class 1B1 7.136% (LIBOR 1 Month + 3.55%), 07/25/2030(e)			180		179,444
Series 2021-R02, Class 2M2 4.997% (SOFR + 2.00%), 11/25/2041(a)(e)			230		203,605
Home Re Ltd. Series 2021-1, Class M1B 5.136% (LIBOR 1 Month + 1.55%), 07/25/2033(a)(e)			211		209,690
Home Re Ltd. Series 2020-1, Class M2 8.836% (LIBOR 1 Month + 5.25%), 10/25/2030(a)(e)			150		149,820
Oaktown Re II Ltd. Series 2018-1A, Class M1 5.136% (LIBOR 1 Month + 1.55%), 07/25/2028(a)(e)			31		30,943
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 6.346% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(e)			29		27,689
Radnor Re Ltd. Series 2019-1, Class M1B 5.536% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(e)			96		93,699
Radnor RE Ltd. Series 2020-1, Class M1C 5.336% (LIBOR 1 Month + 1.75%), 01/25/2030(a)(e)			150		142,861

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Traingle Re Ltd. Series 2021-3, Class M1A 4.897% (SOFR + 1.90%), 02/25/2034(a)(e)	U.S.$		125	$	123,818
					4,602,105
Agency Fixed Rate – 0.2%
Federal Home Loan Mortgage Corp. REMICs Series 4913, Class IO 6.00%, 04/15/2041(f)			75		15,706
Federal National Mortgage Association REMICs
Series 2012-120, Class CI 3.50%, 12/25/2031(f)			134		5,675
Series 2016-26, Class IO 5.00%, 05/25/2046(f)			169		27,529
Series 2016-31, Class IO 5.00%, 06/25/2046(f)			223		45,156
Series 2016-64, Class BI 5.00%, 09/25/2046(f)			28		4,338
					98,404
Agency Floating Rate – 0.0%
Federal Home Loan Mortgage Corp. REMICs Series 4372, Class JS 2.688% (6.10% – LIBOR 1 Month), 08/15/2044(e)(g)			91		7,870
Federal National Mortgage Association REMICs
Series 2012-17, Class ES 2.964% (6.55% – LIBOR 1 Month), 03/25/2041(e)(g)			79		2,410
Series 2012-17, Class SE 2.364% (5.95% – LIBOR 1 Month), 03/25/2042(e)(g)			67		7,200
Series 2019-25, Class SA 2.464% (6.05% – LIBOR 1 Month), 06/25/2049(e)(g)			46		4,129
Series 2019-42, Class SQ 2.464% (6.05% – LIBOR 1 Month), 08/25/2049(e)(g)			39		4,190
					25,799
Total Collateralized Mortgage Obligations (cost $4,835,033)					4,726,308
GOVERNMENTS - SOVEREIGN AGENCIES – 5.0%
Canada – 5.0%
Canada Housing Trust No. 1 1.95%, 12/15/2025(a) (cost $4,054,592)	CAD		5,065		3,507,745

28    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COMMERCIAL MORTGAGE-BACKED SECURITIES – 3.6%
Non-Agency Fixed Rate CMBS – 3.0%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(a)	U.S.$		100	$	84,325
BANK Series 2020-BN28, Class XA 1.779%, 03/15/2063(f)			2,071		205,067
Series 2020-BN29, Class XA 1.341%, 11/15/2053(f)			985		73,719
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.334%, 05/15/2052(f)			985		61,909
BBCMS Mortgage Trust Series 2017-C1, Class XA 1.437%, 02/15/2050(f)			1,318		64,351
CD Mortgage Trust Series 2016-CD1, Class XA 1.368%, 08/10/2049(f)			1,512		56,117
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.608%, 05/10/2058(f)			83		3,417
Series 2017-C8, Class XA 1.481%, 06/15/2050(f)			278		14,019
Citigroup Commercial Mortgage Trust Series 2017-P7, Class XA 1.111%, 04/14/2050(f)			824		30,729
Commercial Mortgage Trust
Series 2012-CR5, Class C 4.358%, 12/10/2045(a)			100		97,550
Series 2014-CR16, Class D 4.917%, 04/10/2047(a)			100		90,472
Series 2016-DC2, Class XA 0.936%, 02/10/2049(f)			2,490		58,132
GS Mortgage Securities Trust Series 2013-GC13, Class D 4.074%, 07/10/2046(a)			100		43,255
Series 2016-GS3, Class XA 1.197%, 10/10/2049(f)			1,293		45,782
Series 2017-GS5, Class XA 0.842%, 03/10/2050(f)			1,439		41,835
Series 2017-GS7, Class XA 1.083%, 08/10/2050(f)			3,285		120,441
Series 2019-GC39, Class XA 1.129%, 05/10/2052(f)			4,646		218,568
JPMBB Commercial Mortgage Securities Trust Series 2013-C14, Class D 4.548%, 08/15/2046(a)			75		41,785

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2012-LC9, Class G 4.321%, 12/15/2047(a)	U.S.$		100	$	73,436
Series 2013-LC11, Class B 3.499%, 04/15/2046			110		107,060
UBS Commercial Mortgage Trust Series 2012-C1, Class D 6.445%, 05/10/2045(a)			17		15,915
Series 2017-C1, Class XA 1.526%, 06/15/2050(f)			1,056		54,501
Series 2017-C2, Class XA 1.087%, 08/15/2050(f)			2,068		79,633
Series 2018-C14, Class XA 0.95%, 12/15/2051(f)			949		41,695
Series 2018-C15, Class XA 0.978%, 12/15/2051(f)			741		33,075
Series 2019-C18, Class XA 1.023%, 12/15/2052(f)			1,265		58,997
UBS-Barclays Commercial Mortgage Trust Series 2013-C6, Class D 4.316%, 04/10/2046(a)			81		66,094
Wells Fargo Commercial Mortgage Trust
Series 2016-LC24, Class XA 1.605%, 10/15/2049(f)			799		37,726
Series 2018-C48, Class XA 0.947%, 01/15/2052(f)			795		34,079
Series 2019-C52, Class XA 1.604%, 08/15/2052(f)			936		67,446
WF-RBS Commercial Mortgage Trust
Series 2011-C4, Class D 4.843%, 06/15/2044(a)			60		53,645
Series 2011-C4, Class E 4.843%, 06/15/2044(a)			25		20,000
					2,094,775
Non-Agency Floating Rate CMBS – 0.6%
BFLD Trust
Series 2019-DPLO, Class D 5.252% (LIBOR 1 Month + 1.84%), 10/15/2034(a)(e)			59		55,704
Series 2019-DPLO, Class E 5.652% (LIBOR 1 Month + 2.24%), 10/15/2034(a)(e)			10		9,406
CLNY Trust Series 2019-IKPR, Class D 5.437% (LIBOR 1 Month + 2.03%), 11/15/2038(a)(e)			120		109,484

30    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Great Wolf Trust Series 2019-WOLF, Class D 5.345% (LIBOR 1 Month + 1.93%), 12/15/2036(a)(e)	U.S.$		45	$	42,296
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 7.662% (LIBOR 1 Month + 4.25%), 05/15/2036(a)(e)			133		123,241
Starwood Retail Property Trust Series 2014-STAR, Class A 4.883% (LIBOR 1 Month + 1.47%), 11/15/2027(a)(e)			89		60,602
					400,733
Total Commercial Mortgage-Backed Securities (cost $2,705,078)					2,495,508
MORTGAGE PASS-THROUGHS – 3.4%
Agency Fixed Rate 30-Year – 3.4%
Uniform Mortgage-Backed Security Series 2022 4.50%, 11/01/2052, TBA (cost $2,354,065)			2,481		2,326,495
COLLATERALIZED LOAN OBLIGATIONS – 2.8%
CLO - Floating Rate – 2.8%
Ballyrock CLO 15 Ltd. Series 2021-1A, Class C 7.179% (LIBOR 3 Month + 3.10%), 04/15/2034(a)(e)			250		212,712
Dryden 98 CLO Ltd. Series 2022-98A, Class D 7.063% (SOFR + 3.10%), 04/20/2035(a)(e)			250		217,384
Galaxy 30 CLO Ltd. Series 2022-30A, Class D 7.214% (SOFR + 3.35%), 04/15/2035(a)(e)			250		219,475
New Mountain CLO 3 Ltd. Series CLO-3A, Class D 7.593% (LIBOR 3 Month + 3.35%), 10/20/2034(a)(e)			250		218,726
Palmer Square CLO Ltd. Series 2021-3A, Class D 7.029% (LIBOR 3 Month + 2.95%), 01/15/2035(a)(e)			250		213,665
PPM CLO 5 Ltd. Series 2021-5A, Class D 7.244% (LIBOR 3 Month + 3.05%), 10/18/2034(a)(e)			250		205,007

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Regatta XXIV Funding Ltd. Series 2021-5A, Class D 7.343% (LIBOR 3 Month + 3.10%), 01/20/2035(a)(e)	U.S.$		250	$	208,977
Rockford Tower CLO Ltd. Series 2021-2A, Class D 7.493% (LIBOR 3 Month + 3.25%), 07/20/2034(a)(e)			250		211,747
Sixth Street CLO XVII Ltd. Series 2021-17A, Class D 7.393% (LIBOR 3 Month + 3.15%), 01/20/2034(a)(e)			250		217,412
Total Collateralized Loan Obligations (cost $2,250,000)					1,925,105
BANK LOANS – 1.4%
Industrial – 1.3%
Capital Goods – 0.1%
ACProducts Holdings, Inc.
7.127% (LIBOR 3 Month + 4.25%), 05/17/2028(h)			76		52,525
7.924% (LIBOR 3 Month + 4.25%), 05/17/2028(h)			25		17,332
Chariot Buyer LLC 7.254% (LIBOR 1 Month + 3.50%), 11/03/2028(h)			10		8,993
					78,850
Communications - Media – 0.0%
Coral-US Co-Borrower LLC 6.412% (LIBOR 1 Month + 3.00%), 10/15/2029(h)			30		28,972
Univision Communications, Inc. 6.504% (LIBOR 1 Month + 2.75%), 03/15/2024(h)			2		1,642
					30,614
Communications - Telecommunications – 0.2%
Crown Subsea Communications Holding, Inc. 8.518% (LIBOR 1 Month + 4.75%), 04/27/2027(h)			40		39,127
Directv Financing, LLC 8.754% (LIBOR 1 Month + 5.00%), 08/02/2027(h)			27		25,956
Zacapa SARL 7.803% (SOFR 3 Month + 4.25%), 03/22/2029(h)			43		41,190
					106,273

32    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Entertainment – 0.2%
Seaworld Parks & Entertainment, Inc. 6.813% (LIBOR 1 Month + 3.00%), 08/25/2028(h)	U.S.$		142	$	137,971
Consumer Cyclical - Retailers – 0.1%
Restoration Hardware, Inc. 7.079% (SOFR 1 Month + 3.25%), 10/20/2028(h)			60		56,500
Consumer Non-Cyclical – 0.1%
Kronos Acquisition Holdings, Inc. 6.820% (LIBOR 3 Month + 3.75%), 12/22/2026(h)			39		37,067
Padagis LLC 8.491% (LIBOR 3 Month + 4.75%), 07/06/2028(h)(i)			28		23,859
					60,926
Energy – 0.2%
GIP II Blue Holding, L.P. 8.174% (LIBOR 3 Month + 4.50%), 09/29/2028(h)			88		87,281
Parkway Generation, LLC 8.504% (LIBOR 1 Month + 4.75%), 02/18/2029(h)			59		58,376
					145,657
Other Industrial – 0.1%
American Tire Distributors, Inc. 10.608% (LIBOR 3 Month + 6.25%), 10/20/2028(h)			60		55,105
Rockwood Service Corporation 8.004% (LIBOR 1 Month + 4.25%), 01/23/2027(h)			3		2,926
					58,031
Services – 0.0%
Amentum Government Services Holdings LLC
7.674% (LIBOR 3 Month + 4.00%), 01/29/2027(h)(i)			2		2,130
8.170% (LIBOR 3 Month + 4.00%), 01/29/2027(h)(i)			1		707
					2,837
Technology – 0.3%
Ascend Learning, LLC 9.504% (LIBOR 1 Month + 5.75%), 12/10/2029(h)			30		25,387
Banff Guarantor, Inc. 9.254% (LIBOR 1 Month + 5.50%), 02/27/2026(h)			10		9,170

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Boxer Parent Company, Inc. 7.504% (LIBOR 1 Month + 3.75%), 10/02/2025(h)	U.S.$		27		$	25,810
Endurance International Group Holdings, Inc. 6.698% (LIBOR 1 Month + 3.50%), 02/10/2028(h)			88			74,814
FINThrive Software Intermediate Holdings, Inc. 10.504% (LIBOR 1 Month + 6.75%), 12/17/2029(h)			20			17,090
Loyalty Ventures, Inc. 8.254% (LIBOR 1 Month + 4.50%), 11/03/2027(h)			78			24,272
Peraton Corp. 7.504% (LIBOR 1 Month + 3.75%), 02/01/2028(h)			19			18,589
Presidio Holdings, Inc.
7.260% (LIBOR 1 Month + 3.50%), 01/22/2027(h)(i)			0	**		385
7.920% (LIBOR 3 Month + 3.50%), 01/22/2027(h)(i)			9			8,692
						204,209
						881,868
Financial Institutions – 0.1%
Finance – 0.0%
Orbit Private Holdings I Ltd. 8.174% (LIBOR 3 Month + 4.50%), 12/11/2028(h)(i)			30			28,956
Insurance – 0.1%
Cross Financial Corp. 7.813% (LIBOR 1 Month + 4.00%), 09/15/2027(h)			49			48,267
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 7.504% (LIBOR 1 Month + 3.75%), 09/03/2026(h)			11			10,347
						58,614
						87,570
Utility – 0.0%
Electric – 0.0%
Granite Generation LLC 7.504% (LIBOR 1 Month + 3.75%), 11/09/2026(h)			24			23,650
Total Bank Loans (cost $1,120,981)						993,088

34    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS - SOVEREIGNS – 1.4%
Angola – 0.3%
Angolan Government International Bond 9.50%, 11/12/2025(a)	U.S.$		200	$	194,500
Dominican Republic – 0.2%
Dominican Republic International Bond 5.50%, 02/22/2029(a)			150		130,388
Ecuador – 0.1%
Ecuador Government International Bond 5.50%, 07/31/2030(a)			97		51,270
El Salvador – 0.1%
El Salvador Government International Bond 8.625%, 02/28/2029(a)			90		35,848
Ivory Coast – 0.4%
Ivory Coast Government International Bond
5.875%, 10/17/2031(a)	EUR		100		74,817
6.375%, 03/03/2028(a)	U.S.$		200		181,037
					255,854
Lebanon – 0.0%
Lebanon Government International Bond 6.10%, 10/04/2022(a)(j)(k)			16		973
Senegal – 0.1%
Senegal Government International Bond 4.75%, 03/13/2028(a)	EUR		100		80,542
South Africa – 0.2%
Republic of South Africa Government International Bond 4.30%, 10/12/2028	U.S.$		200		170,350
Ukraine – 0.0%
Ukraine Government International Bond 7.75%, 09/01/2027(a)			100		16,613
Total Emerging Markets - Sovereigns (cost $1,309,765)					936,338
EMERGING MARKETS - CORPORATE BONDS – 0.7%
Industrial – 0.7%
Basic – 0.1%
Eldorado Gold Corp. 6.25%, 09/01/2029(a)			28		22,648

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)	U.S.$		41		$	34,132
						56,780
Capital Goods – 0.2%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			146			133,161
Consumer Cyclical - Other – 0.3%
Wynn Macau Ltd. 5.50%, 01/15/2026(a)			300			205,500
Consumer Non-Cyclical – 0.0%
Central American Bottling Corp./CBC Bottling Holdco SL/Beliv Holdco SL 5.25%, 04/27/2029(a)			11			9,693
Energy – 0.1%
Leviathan Bond Ltd.
5.75%, 06/30/2023(a)			59			58,329
6.125%, 06/30/2025(a)			23			21,856
6.50%, 06/30/2027(a)			30			28,162
						108,347
Total Emerging Markets - Corporate Bonds (cost $592,584)						513,481
ASSET-BACKED SECURITIES – 0.4%
Autos - Fixed Rate – 0.3%
ACM Auto Trust Series 2022-1A, Class A 3.23%, 04/20/2029(a)			37			36,638
Exeter Automobile Receivables Trust
Series 2018-4A, Class E 5.38%, 07/15/2025(a)			115			114,339
Series 2019-1A, Class E 5.20%, 01/15/2026(a)			40			39,638
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(a)			14			13,883
						204,498
Other ABS - Fixed Rate – 0.1%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 0.389%, 11/15/2044(l)			0	**		104

36    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SoFi Consumer Loan Program Trust Series 2020-1, Class D 2.94%, 01/25/2029(a)	U.S.$		100	$	96,387
					96,491
Total Asset-Backed Securities (cost $307,520)					300,989
QUASI-SOVEREIGNS – 0.4%
Quasi-Sovereign Bonds – 0.4%
Mexico – 0.4%
Comision Federal de Electricidad 4.688%, 05/15/2029(a)			200		168,537
Petroleos Mexicanos 5.35%, 02/12/2028			101		80,343
6.49%, 01/23/2027			22		19,215
					268,095
Ukraine – 0.0%
State Agency of Roads of Ukraine 6.25%, 06/24/2030(l)			200		25,913
Total Quasi-Sovereigns (cost $485,452)					294,008
		Shares
SHORT-TERM INVESTMENTS – 1.3%
Investment Companies – 1.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(m)(n)(o) (cost $921,309)			921,309		921,309
Total Investments – 122.8% (cost $93,847,609)					85,524,533
Other assets less liabilities – (22.8)%					(15,896,815	)
Net Assets – 100.0%				$	69,627,718

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    37

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. T-Note 5 Yr (CBT) Futures		15	December 2022	$	1,598,906	$	(33,605	)
Sold Contracts
10 Yr Canadian Bond Futures		9	December 2022		812,764		11,416
10 Yr Mini Japan Government Bond Futures		3	December 2022		299,869		479
Euro-BOBL Futures		5	December 2022		591,319		17,735
Euro-Schatz Futures		2	December 2022		211,357		2,627
U.S. T-Note 2 Yr (CBT) Futures		32	December 2022		6,540,250		137,210
U.S. T-Note 10 Yr (CBT) Futures		70	December 2022		7,741,563		482,559
						$	618,421

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	EUR	1,156	USD	1,118	12/08/2022	$	(26,759	)
Citibank, NA	CAD	4,921	USD	3,606	01/19/2023		(10,075	)
State Street Bank & Trust Co.	NZD	78	USD	48	11/18/2022		2,728
						$	(34,106	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAHY Series 39, 5 Year Index, 12/20/2027*		5.00	%		Quarterly		5.19	%		USD	6,200	$	(11,302	)	$	(247,903	)	$	236,601
iTraxxx Xover Series 38, 5 Year Index, 12/20/2027*		5.00			Quarterly		5.55			EUR	1,560		(24,252	)		(65,032	)		40,780
												$	(35,554	)	$	(312,935	)	$	277,381

* Termination date

38    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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	$	(20,444	)	$	– 0	–	$	(20,444	)
USD	260		05/24/2024	2.206%	3 Month LIBOR	Semi-Annual/ Quarterly		9,833			– 0	–		9,833
							$	(10,611	)	$	– 0	–	$	(10,611	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	350	$	(79,247	)	$	(123,302	)	$	44,055
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	7		(1,585	)		(1,778	)		193
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	18		(4,121	)		(4,237	)		116
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	13		(2,853	)		(2,963	)		110
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	13		(3,011	)		(3,096	)		85
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	17		(3,804	)		(1,366	)		(2,438	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	25		(5,706	)		(2,039	)		(3,667	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	37		(8,400	)		(2,193	)		(6,207	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	55		(12,521	)		(3,246	)		(9,275	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	209		(22,938	)		(6,319	)		(16,619	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	109		(24,725	)		(22,563	)		(2,162	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	17		(3,804	)		(1,360	)		(2,444	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	280		(63,398	)		(33,205	)		(30,193	)

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PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	8	$	(1,902	)	$	(680	)	$	(1,222	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		7.50			USD	141		(53,756	)		(26,280	)		(27,476	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	233		(25,513	)		(22,600	)		(2,913	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	2		(476	)		(122	)		(354	)
												$	(317,760	)	$	(257,349	)	$	(60,411	)

* 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 Bank USA Markit iBoxx USD Contingent Convertible Liquid Developed Market AT1

1 Day SOFR

Maturity

USD

144

12/20/2022

$

(6,570

)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity			U.S. $ Value at October 31, 2022
HSBC Securities (USA), Inc.†		3.10	%		– 0	–	$	12,928,855
HSBC Securities (USA), Inc.†		3.10	%		– 0	–		2,134,451
							$	15,063,306

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2022.

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

$

15,063,306

$

– 0

–

$

– 0

–

$

– 0

–

$

15,063,306

** 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, 2022, the aggregate market value of these securities amounted to $22,947,022 or 33.0% of net assets.

40    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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

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

(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, 2022.

(f) IO – Interest Only.

(g) Inverse interest only security.

(h) The stated coupon rate represents the greater of the LIBOR or an alternate base rate such as the SOFR or the LIBOR/SOFR floor rate plus spread at October 31, 2022.

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

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.04% of net assets as of October 31, 2022, are considered illiquid and restricted. Additional information regarding such securities follows:

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 0.389%, 11/15/2044		10/09/2019	$	113	$	104		0.00	%
State Agency of Roads of Ukraine 6.25%, 06/24/2030		06/24/2021		200,000		25,913		0.04	%

(m) Affiliated investments.

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

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

Currency Abbreviations:

CAD – Canadian Dollar

EUR – Euro

NZD – New Zealand Dollar

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

IBOXHY – iBoxx $ Liquid High Yield Index

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.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    41

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $92,926,300)	$	84,603,224
Affiliated issuers (cost $921,309)		921,309
Cash		32,336
Cash collateral due from broker		972,668
Foreign currencies, at value (cost $8,454)		8,437
Interest receivable		763,035
Receivable for capital stock sold		469,551
Receivable for investment securities sold		75,674
Receivable for variation margin on futures		38,430
Receivable due from Adviser		18,751
Unrealized appreciation on forward currency exchange contracts		2,728
Affiliated dividends receivable		1,147
Total assets		87,907,290
Liabilities
Payable for reverse repurchase agreements		15,063,306
Payable for investment securities purchased		2,554,065
Market value on credit default swaps (net premiums received $257,349)		317,760
Payable for variation margin on centrally cleared swaps		53,576
Dividends payable		48,087
Unrealized depreciation on forward currency exchange contracts		36,834
Payable for capital stock redeemed		35,017
Unrealized depreciation on total return swaps		6,570
Foreign capital gains tax payable		1,976
Directors’ fees payable		1,526
Transfer Agent fee payable		1,493
Distribution fee payable		923
Accrued expenses		158,439
Total liabilities		18,279,572
Net Assets	$	69,627,718
Composition of Net Assets
Capital stock, at par	$	8,011
Additional paid-in capital		77,925,253
Accumulated loss		(8,305,546	)
Net Assets	$	69,627,718

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

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	4,364,238		501,704	$	8.70	*
C	$	292,113		33,615	$	8.69
Advisor	$	64,971,367		7,475,457	$	8.69

* The maximum offering price per share for Class A shares was $8.90 which reflects a sales charge of 2.25%.

See notes to financial statements.

42    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest (net of foreign taxes withheld of $444)	$	1,756,774
Dividends—Affiliated issuers		7,115
Other income		327		$	1,764,216
Expenses
Advisory fee (see Note B)		209,903
Distribution fee—Class A		9,162
Distribution fee—Class C		5,696
Transfer agency—Class A		2,621
Transfer agency—Class C		365
Transfer agency—Advisor Class		30,770
Custody and accounting		115,672
Administrative		92,183
Audit and tax		81,811
Registration fees		54,928
Printing		41,370
Legal		34,788
Directors’ fees		18,376
Miscellaneous		10,737
Total expenses before interest expense		708,382
Interest expense		192,398
Total expenses		900,780
Less: expenses waived and reimbursed by the Adviser (see Note B)		(424,425	)
Net expenses					476,355
Net investment income					1,287,861
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					(2,397,139	)
Forward currency exchange contracts					210,769
Futures					2,086,034
Swaps					(216,571	)
Written swaptions					(1,757	)
Foreign currency transactions					(26,593	)
Net change in unrealized appreciation (depreciation) of:
Investments(b)					(7,551,907	)
Forward currency exchange contracts					286,048
Futures					199,570
Swaps					441,999
Written swaptions					(1,433	)
Foreign currency denominated assets and liabilities					(9,548	)
Net loss on investment and foreign currency transactions					(6,980,528	)
Contributions from Affiliates (see Note B)					7,236
Net Decrease in Net Assets from Operations				$	(5,685,431	)

(a) Net of foreign realized capital gains taxes of $894.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $944.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    43

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	1,287,861		$	1,292,348
Net realized gain (loss) on investment and foreign currency transactions		(345,257	)		1,280,893
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(6,635,271	)		(1,507,315	)
Contributions from Affiliates (see Note B)		7,236			– 0	–
Net increase (decrease) in net assets from operations		(5,685,431	)		1,065,926
Distributions to Shareholders
Class A		(173,022	)		(40,601	)
Class C		(17,051	)		(14,065	)
Advisor Class		(2,076,356	)		(1,504,066	)
Capital Stock Transactions
Net increase		14,728,932			20,561,741
Total increase		6,777,072			20,068,935
Net Assets
Beginning of period		62,850,646			42,781,711
End of period	$	69,627,718		$	62,850,646

See notes to financial statements.

44    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF CASH FLOWS

For the year ended October 31, 2022

Cash flows from operating activities
Net decrease in net assets from operations				$	(5,685,431	)
Reconciliation of net decrease in net assets from operations to net increase in cash from operating activities
Purchases of long-term investments	$	(55,892,932	)
Purchases of short-term investments		(29,746,038	)
Proceeds from disposition of long-term investments		51,429,598
Proceeds from disposition of short-term investments		29,219,822
Net realized loss on investment transactions and foreign currency transactions		345,246
Net realized gain on forward currency exchange contracts		210,769
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		6,635,271
Net accretion of bond discount and amortization of bond premium		1,371,092
Increase in receivable for investments sold		(70,822	)
Increase in interest receivable		(24,675	)
Increase in affiliated dividends receivable		(1,139	)
Increase in receivable due from Adviser		(18,751	)
Increase in cash collateral due from broker		(432,887	)
Increase in payable for investments purchased		1,847,034
Decrease in advisory fee payable		(20,642	)
Decrease in Foreign capital gains tax payable		(50	)
Increase in Transfer Agent fee payable		41
Decrease in distribution fee payable		(563	)
Decrease in Directors’ fee payable		(130	)
Increase in accrued expenses		21,377
Payments on written swaptions, net		(4,329	)
Payments on swaps, net		(98,277	)
Proceeds for exchange-traded derivatives settlements, net		2,253,232
Total adjustments					7,022,247
Net cash provided by (used in) operating activities					1,336,816
Cash flows from financing activities
Subscriptions of capital stock, net		13,278,351
Cash dividends paid (net of dividend reinvestments)†		(1,233,674	)
Repayment of reverse repurchase agreements		(13,444,223	)
Net cash provided by (used in) financing activities					(1,399,546	)
Effect of exchange rate on cash					(36,141	)
Net decrease in cash					(98,871	)
Cash at beginning of year					139,644
Cash at end of year				$	40,773
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	1,043,657
Interest expense paid during the year	$	151,171

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 SHORT DURATION INCOME PORTFOLIO     ^|    45

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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 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. Effective March 7, 2022, the maximum sales charge for purchases of Class A shares was reduced from 4.25% to 2.25% and purchases in amounts of $500,000 or more, or by certain group retirement plans, may have been subject to a 1%, 18-month contingent deferred sales charge, which may have been subject to waiver in certain circumstances. Prior to March 7, 2022, purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, which may be subject to waiver in certain circumstances. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class shares are sold without any 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are

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NOTES TO FINANCIAL STATEMENTS (continued)

unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Governments – Treasuries

$

– 0

–

$

50,238,122

$

– 0

–

$

50,238,122

Corporates – Investment Grade

– 0

–

8,867,567

– 0

–

8,867,567

Corporates – Non-Investment Grade

– 0

–

7,478,470

– 0

–

7,478,470

Collateralized Mortgage Obligations

– 0

–

4,726,308

– 0

–

4,726,308

Governments – Sovereign Agencies

– 0

–

3,507,745

– 0

–

3,507,745

Commercial Mortgage-Backed Securities

– 0

–

2,495,508

– 0

–

2,495,508

Mortgage Pass-Throughs

– 0

–

2,326,495

– 0

–

2,326,495

Collateralized Loan Obligations

– 0

–

1,925,105

– 0

–

1,925,105

Bank Loans

– 0

–

928,359

64,729

993,088

Emerging Markets – Sovereigns

– 0

–

936,338

– 0

–

936,338

Emerging Markets – Corporate Bonds

– 0

–

513,481

– 0

–

513,481

Asset-Backed Securities

– 0

–

300,989

– 0

–

300,989

Quasi-Sovereigns

– 0

–

294,008

– 0

–

294,008

Short-Term Investments

921,309

– 0

–

– 0

–

921,309

Total Investments in Securities

921,309

84,538,495

64,729

85,524,533

Other Financial Instruments(a):

Assets:

Futures

652,026

– 0

–

– 0

–

652,026

(b)

Forward Currency Exchange Contracts

– 0

–

2,728

– 0

–

2,728

Centrally Cleared Interest Rate Swaps

– 0

–

9,833

– 0

–

9,833

(b)

Liabilities:

Futures

(33,605

)

– 0

–

– 0

–

(33,605

)(b)

Forward Currency Exchange Contracts

– 0

–

(36,834

)

– 0

–

(36,834

)

Centrally Cleared Credit Default Swaps

– 0

–

(35,554

)

– 0

–

(35,554

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(20,444

)

– 0

–

(20,444

)(b)

Credit Default Swaps

– 0

–

(317,760

)

– 0

–

(317,760

)

Total Return Swaps

– 0

–

(6,570

)

– 0

–

(6,570

)

Reverse Repurchase Agreements

(15,063,306

)

– 0

–

– 0

–

(15,063,306

)

Total

$

(13,523,576

)

$

84,133,894

$

64,729

$

70,675,047

(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, written options and written swaptions which are valued at market value.

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NOTES TO FINANCIAL STATEMENTS (continued)

(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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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 .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 Advisor Class shares, respectively. For the year ended October 31, 2022, such reimbursement/waivers amounted to $331,467. The Expense Caps may not be terminated by the Adviser before January 31, 2023. 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, the Adviser voluntarily agreed to waive such fees in the amount of $92,183.

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 $16,560 for the year ended October 31, 2022.

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 $1 from the sale of Class A shares and received $0 and $18 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $775.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	395	$	29,746	$	29,220	$	921	$	7

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During the year ended October 31, 2022, the Adviser reimbursed the Fund $7,236 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. 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 $955 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, 2022 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	14,322,899	$	17,740,547
U.S. government securities		41,619,976		31,797,037

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

Cost	$	93,977,597
Gross unrealized appreciation	$	1,149,366
Gross unrealized depreciation		(9,274,303	)
Net unrealized depreciation	$	(8,124,937	)

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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 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2022, 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, 2022, the Fund held forward currency exchange contracts for 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 written option. 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 written options. 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 written option 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, 2022, the Fund held written swaptions for 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

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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 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.

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

Interest Rate Swaps:

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

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

During the year ended October 31, 2022, the Fund held interest rate swaps for 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, the Fund held inflation (CPI) swaps for 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.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on

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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, 2022, the Fund held credit default swaps for 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, 2022, the Fund held total return swaps for non-hedging purposes.

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

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to

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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, 2022, 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	$	652,026	*	Receivable/Payable for variation margin on futures	$	33,605	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		277,381	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		9,833	*	Receivable/Payable for variation margin on centrally cleared swaps		20,444	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		2,728		Unrealized depreciation on forward currency exchange contracts		36,834
Credit contracts					Market value on credit default swaps		317,760
Credit contracts					Unrealized depreciation on total return swaps		6,570
Total		$	941,968			$	415,213

* 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	$	2,086,034		$	199,570
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		210,769			286,048
Interest rate contracts	Net realized gain (loss) on written swaptions; Net change in unrealized appreciation (depreciation) of written swaptions		(1,757	)		(1,433	)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		16,948			(6,505	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(233,519	)		448,504
Total		$	2,078,475		$	926,184

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Futures:
Average notional amount of buy contracts	$	3,097,159	(a)
Average notional amount of sale contracts	$	21,120,211
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	1,527,169	(b)
Average principal amount of sale contracts	$	9,828,369
Written Swaptions:
Average notional amount	$	307,250	(c)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	788,470
Centrally Cleared Inflation Swaps:
Average notional amount	$	1,600,000	(d)
Credit Default Swaps:
Average notional amount of sale contracts	$	2,290,749

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Centrally Cleared Credit Default Swaps:
Average notional amount of sale contracts	$	5,611,898
Total Return Swaps:
Average notional amount	$	149,997

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

(b) Positions were open for eight months during the year.

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

(d) Positions were open for one month 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, 2022. 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

State Street Bank & Trust Co.

$

2,728

$

– 0

–

$

– 0

–

$

– 0

–

$

2,728

Total

$

2,728

$

– 0

–

$

– 0

–

$

– 0

–

$

2,728

^

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

$

26,759

$

– 0

–

$

– 0

–

$

– 0

–

$

26,759

Citibank, NA/Citigroup Global Markets, Inc.

131,323

– 0

–

– 0

–

(119,652

)

11,671

Credit Suisse International

22,938

– 0

–

– 0

–

(22,938

)

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

98,497

– 0

–

– 0

–

– 0

–

98,497

JPMorgan Securities, LLC

55,658

– 0

–

– 0

–

– 0

–

55,658

Morgan Stanley & Co. International PLC

25,989

– 0

–

– 0

–

– 0

–

25,989

Total

$

361,164

$

– 0

–

$

– 0

–

$

(142,590

)

$

218,574

^

* 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 $11,171 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”),

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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, 2022, the average amount of reverse repurchase agreements outstanding was $22,691,907 and the daily weighted average interest rate was 0.85%. At October 31, 2022, the Fund had reverse repurchase agreements outstanding in the amount of $15,063,306 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, 2022:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Securities (USA), Inc.	$	15,063,306	$	(14,910,486	)	$	152,820

† 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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		159,760			640,070		$	1,490,085		$	6,419,373
Shares issued in reinvestment of dividends and distributions		15,651			3,210			147,338			32,088
Shares redeemed		(231,832	)		(122,450	)		(2,212,710	)		(1,224,279	)
Net increase (decrease)		(56,421	)		520,830		$	(575,287	)	$	5,227,182

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class C
Shares sold		1,337			30,942		$	12,177		$	310,250
Shares issued in reinvestment of dividends and distributions		1,520			1,286			14,464			12,907
Shares redeemed		(43,026	)		(31,820	)		(389,257	)		(319,931	)
Net increase (decrease)		(40,169	)		408		$	(362,616	)	$	3,226
Advisor Class
Shares sold		3,459,154			1,731,742		$	31,395,603		$	17,350,910
Shares issued in reinvestment of dividends and distributions		93,772			35,778			881,855			358,571
Shares redeemed		(1,797,996	)		(236,815	)		(16,610,623	)		(2,378,148	)
Net increase		1,754,930			1,530,705		$	15,666,835		$	15,331,333

At October 31, 2022, the Adviser owns approximately 31% of the Fund’s outstanding shares. At October 31, 2022, certain unaffiliated shareholders of the Fund owned 28% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

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) and regional and global conflicts, that affect large portions of the market.

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

Below Investment-Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject

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NOTES TO FINANCIAL STATEMENTS (continued)

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 Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk—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.

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.

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 FINANCIAL STATEMENTS (continued)

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the 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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	1,979,832	$	1,558,732
Net long-term capital gains		286,597		– 0	–
Total taxable distributions paid	$	2,266,429	$	1,558,732

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	421,621
Accumulated capital and other losses		(540,216	)(a)
Unrealized appreciation (depreciation)		(8,134,289	)(b)
Total accumulated earnings/(deficit)	$	(8,252,884	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $540,216.

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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 callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $492,757 and a net long-term capital loss carryforward of $47,459, 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 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,									December 12, 2018(a) to October 31, 2019
	2022			2021			2020
Net asset value, beginning of period		$  9.90			$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.18			.22			.23			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.05	)		.02	(d)		(.28	)(d)		.42
Contributions from Affiliates		.00	(e)		– 0	–		– 0	–		– 0	–
Capital contributions		– 0	–		– 0	–		.16			– 0	–
Net increase (decrease) in net asset value from operations		(.87	)		.24			.11			.70
Less: Dividends and Distributions
Dividends from net investment income		(.22	)		(.29	)		(.38	)		(.35	)
Distributions from net realized gain on investment transactions		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.33	)		(.29	)		(.51	)		(.35	)
Net asset value, end of period		$  8.70			$  9.90			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(f)		(8.94	)%		2.37	%		1.17	%		7.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$4,364			$5,528			$371			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		.95	%		.68	%		.68	%		.70	%^
Expenses, before waivers/reimbursements(g)		1.66	%		1.26	%		1.77	%		3.18	%^
Net investment income(c)		1.95	%		2.24	%		2.28	%		3.14	%^
Portfolio turnover rate**		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			N/A			336	%		181	%

See footnote summary on page 76.

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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
	2022			2021			2020
Net asset value, beginning of period		$  9.89			$  9.95			$  10.34			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.10			.15			.09			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.04	)		.00	(d)(e)		(.04	)(d)		.41
Contributions from Affiliates		.00	(e)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.94	)		.15			.05			.62
Less: Dividends and Distributions
Dividends from net investment income		(.15	)		(.21	)		(.31	)		(.28	)
Distributions from net realized gain on investment transactions		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.26	)		(.21	)		(.44	)		(.28	)
Net asset value, end of period		$  8.69			$  9.89			$  9.95			$  10.34
Total Return
Total investment return based on net asset value(f)		(9.67	)%		1.46	%		.51	%		6.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$292			$730			$730			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		1.71	%		1.47	%		1.48	%		1.49	%^
Expenses, before waivers/reimbursements(g)		2.42	%		2.19	%		2.57	%		4.02	%^
Net investment income(c)		1.10	%		1.53	%		.93	%		2.34	%^
Portfolio turnover rate**		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			N/A			336	%		181	%

See footnote summary on page 76.

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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
	2022			2021			2020
Net asset value, beginning of period		$  9.89			$  9.95			$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.20			.25			.21			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(1.05	)		.00	(d)(e)		(.08	)(d)		.41
Contributions from Affiliates		.00	(e)		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(.85	)		.25			.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.31	)		(.40	)		(.36	)
Distributions from net realized gain on investment transactions		(.11	)		– 0	–		(.13	)		– 0	–
Total dividends and distributions		(.35	)		(.31	)		(.53	)		(.36	)
Net asset value, end of period		$  8.69			$  9.89			$  9.95			$  10.35
Total Return
Total investment return based on net asset value(f)		(8.76	)%		2.48	%		1.34	%		7.25	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$64,972			$56,593			$41,681			$15,498
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		.77	%		.47	%		.48	%		.49	%^
Expenses, before waivers/reimbursements(g)		1.48	%		1.18	%		1.68	%		2.99	%^
Net investment income(c)		2.17	%		2.52	%		2.13	%		3.31	%^
Portfolio turnover rate**		60	%		163	%		336	%		178	%
Portfolio turnover rate (including securities sold short)**		N/A			N/A			336	%		181	%

See footnote summary on page 76.

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FINANCIAL HIGHLIGHTS (continued)

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

‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying

(a) Commencement of operations.

(b) Based on average shares outstanding.

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

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

(e) Amount is less than $.005.

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

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

	Year Ended October 31,									December 12, 2018(a) to October 31,
	2022			2021			2020			2019
Class A
Net of waivers/reimbursements		.65	%		.65	%		.65	%		.65	%^
Before waivers/reimbursements		1.35	%		1.23	%		1.73	%		3.13	%^
Class C
Net of waivers/reimbursements		1.45	%		1.45	%		1.45	%		1.45	%^
Before waivers/reimbursements		2.16	%		2.18	%		2.54	%		3.97	%^
Advisor Class
Net of waivers/reimbursements		.45	%		.45	%		.45	%		.45	%^
Before waivers/reimbursements		1.16	%		1.16	%		1.64	%		2.95	%^

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

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, 2022, 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 three years in the period ended October 31, 2022 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, 2022, 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 three years in the period ended October 31, 2022 and 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 2022

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2022 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, 2022. For foreign shareholders, 65.77% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

The Fund designated $286,597 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 2023.

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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⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Fahd Malik⁽²⁾, Vice President Matthew S. Sheridan⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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, Malik and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2018)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2018)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2018)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2018)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also co-Head of Fixed-Income.
Fahd Malik 38	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Matthew S. Sheridan 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 Short Duration Income Portfolio (the “Fund”) at a meeting held by video conference on November 2-4, 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

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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 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 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, 2021 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 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, and rules adopted, 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, 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

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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 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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

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TAXABLE

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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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO     ^|    95

NOTES

96    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

AB SHORT DURATION INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SDI-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 9, 2022

This report provides management’s discussion of fund performance for the AB Sustainable Thematic Credit Portfolio for the annual reporting period ended October 31, 2022.

The Fund’s investment objective is to maximize total return through current income and long-term capital appreciation.

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO
Class A Shares		-9.15%		-21.48%
Advisor Class Shares1		-9.04%		-21.29%
Bloomberg US Corporate Bond Index		-7.82%		-19.57%

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 US Corporate Bond Index, for the six- and 12-month periods ended October 31, 2022.

During both periods, all share classes underperformed the benchmark, before sales charges. The Fund entered the market sell-off period experienced during 2022 with higher risk levels than its benchmark. Overall, in a risk-averse market environment, this risk posture hampered returns, relative to the benchmark. The Fund balanced this higher credit risk exposure with higher interest-rate sensitivity. Typically, negative correlations between these two return drivers help partially offset return drags from one of these factors. However, these correlations broke notably at times during the year, exacerbating the negative performance effect for the Fund. Finally, the Fund’s Senior Investment Management Team (the “Team”) utilized opportunities outside of the US investment-grade credit sector; however, as the macro outlook for these sectors deteriorated, positioning in sectors such as eurozone investment-grade corporate bonds had a negative impact on performance.

In both periods, modest off-benchmark exposure to developed-market and emerging-market sub-investment-grade corporate bonds had a negative impact on performance, as spreads widened in the risk-off environment. The Team’s duration overweight, which is used to balance higher

2    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

credit risk in the Fund, detracted during both periods as yields rose. Security selection within US investment-grade corporate bonds also detracted, partially offset by gains among off-benchmark high-yield corporate bonds. In terms of industry allocation, in the 12-month period, security selection within banking, consumer non-cyclicals and real estate investment trusts detracted, but was partially offset by selection within the basic and capital-goods industries. In the six-month period, selection within banking, electric and insurance was the biggest detractor, partially offset by selection within the services and basic industries.

The Fund utilized derivatives in the form of futures and currency forwards for hedging purposes, which had no material impact on absolute returns for either period.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    3

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 sustainable investment themes that align with one or more of the United Nations SDGs. These themes principally include the advancement of health, climate, and empowerment. Under normal circumstances, at least 80% of the Fund’s net assets will be invested in fixed-income securities of corporate issuers that satisfy the Fund’s sustainability criteria. An issuer that derives at least 25% of its total revenues from activities consistent with the achievement of the SDGs meets such criteria, although many of the issuers in which the Fund invests will derive a much greater portion of their revenues from such activities.

The Adviser employs a combination of “top-down” and “bottom-up” investment processes with the goal of identifying, based on its internal research and analysis, securities and issuers that fit into sustainable investment themes. First, the Adviser identifies through its top-down process the sustainable investment themes. In addition to this top-down thematic approach, the Adviser then uses a bottom-up analysis of individual bond issues that focuses on the use of proceeds, issuer fundamentals and valuation and on evaluating an issuer’s risks, including those related to environmental, social and governance (“ESG”) factors. ESG factors, which can vary across companies and industries, may include environmental impact, corporate governance, ethical business practices, diversity and employee practices, product safety, supply chain management and community impact. Eligible investments include securities of issuers that the Adviser believes will maximize total return while also contributing to positive societal impact aligned with one or more SDGs. While the Adviser emphasizes focusing on individual issuers with favorable ESG attributes over the use of broad-based negative screens (e.g., disqualifying business activities) in assessing an issuer’s exposure to ESG factors, the Fund will not invest in companies that derive significant revenue from involvement in alcohol, gambling, adult entertainment, private prisons, tobacco or weapons. The Fund also typically invests in ESG bond structures, including “Use of Proceeds” bonds, which are instruments the proceeds of which are specifically earmarked for environmental, social or sustainability projects.

The Fund may invest up to 20% of its net assets in securities rated below investment grade (“junk bonds”). The Fund may invest up to 30% of its net assets in securities denominated in currencies other than the US dollar. Foreign investments may include securities issued

(continued on next page)

4    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

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.”

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    5

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) and regional and global conflicts, 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 Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its

6    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

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

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

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

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

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

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

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“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, 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.

8    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE

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

5/10/2021¹ TO 10/31/2022

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 10/31/2022) 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, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						4.59%
1 Year		-21.48%		-24.83%
Since Inception2		-13.96%		-16.43%
ADVISOR CLASS SHARES3						5.04%
1 Year		-21.29%		-21.29%
Since Inception2		-13.75%		-13.75%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.14% and 0.93% for Class A and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limited the Fund’s total annual 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 January 31, 2023. 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, 2022.

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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    11

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-24.18%
Since Inception1		-16.81%
ADVISOR CLASS SHARES2
1 Year		-20.62%
Since Inception1		-13.98%

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.

12    ^|    AB SUSTAINABLE THEMATIC  CREDIT 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 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, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	908.50	$	4.09		0.85	%
Hypothetical**	$	1,000	$	1,020.92	$	4.33		0.85	%
Advisor Class
Actual	$	1,000	$	909.60	$	2.89		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.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    13

PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $177.1

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

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PORTFOLIO SUMMARY (continued)

October 31, 2022 (unaudited)

1 The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.7% or less in the following: Chile, China, India, Peru, South Korea, Supranational and Sweden.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS

October 31, 2022

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 88.0%
Industrial – 47.3%
Basic – 1.5%
Arkema SA 0.125%, 10/14/2026(a)	EUR		200	$	171,483
Ecolab, Inc. 2.75%, 08/18/2055	U.S.$		525		302,792
Inversiones CMPC SA 3.85%, 01/13/2030(a)			905		753,582
Packaging Corp. of America 4.05%, 12/15/2049			300		215,369
Sealed Air Corp. 1.573%, 10/15/2026(a)			1,485		1,244,579
					2,687,805
Capital Goods – 6.1%
CNH Industrial Capital LLC 1.45%, 07/15/2026			1,605		1,372,493
5.45%, 10/14/2025			360		356,221
Eaton Corp. 4.15%, 03/15/2033			380		337,477
4.70%, 08/23/2052			380		323,297
Emerson Electric Co. 2.625%, 02/15/2023			780		774,904
3.15%, 06/01/2025			715		683,377
John Deere Capital Corp. 4.85%, 10/11/2029			263		258,549
Parker-Hannifin Corp. 4.20%, 11/21/2034			1,305		1,120,898
4.45%, 11/21/2044			325		256,007
Republic Services, Inc. 1.75%, 02/15/2032			1,275		946,996
Siemens Financieringsmaatschappij NV 1.20%, 03/11/2026(a)			960		838,119
Trane Technologies Global Holding Co., Ltd. 5.75%, 06/15/2043			495		458,845
Trane Technologies Luxembourg Finance SA 3.50%, 03/21/2026			405		377,568
Waste Management, Inc. 1.50%, 03/15/2031			470		357,170
2.95%, 06/01/2041			710		499,507
4.15%, 04/15/2032			370		340,532
Xylem, Inc./NY 1.95%, 01/30/2028			1,725		1,447,642
					10,749,602

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Media – 0.8%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.40%, 04/01/2033	U.S.$		390	$	324,710
6.834%, 10/23/2055			630		568,621
Thomson Reuters Corp. 5.50%, 08/15/2035			570		526,424
					1,419,755
Communications - Telecommunications – 5.0%
AT&T, Inc. 4.30%, 12/15/2042			397		307,879
British Telecommunications PLC 9.625%, 12/15/2030			760		868,250
Corning, Inc. 4.70%, 03/15/2037			62		53,573
5.35%, 11/15/2048			820		712,790
5.45%, 11/15/2079			280		224,876
Sprint Capital Corp. 8.75%, 03/15/2032			1,070		1,255,301
T-Mobile USA, Inc. 2.70%, 03/15/2032			1,765		1,381,110
3.60%, 11/15/2060			445		285,831
5.80%, 09/15/2062			285		261,451
Telefonica Emisiones SA 4.895%, 03/06/2048			695		497,891
TELUS Corp. 3.40%, 05/13/2032			390		320,040
Verizon Communications, Inc. 2.355%, 03/15/2032			416		314,992
2.85%, 09/03/2041			1,135		740,610
3.875%, 02/08/2029			835		758,674
Vodafone Group PLC 4.25%, 09/17/2050			930		658,658
5.125%, 06/19/2059			265		207,162
					8,849,088
Consumer Cyclical - Automotive – 1.9%
Aptiv PLC 4.40%, 10/01/2046			180		126,567
5.40%, 03/15/2049			215		169,798
Aptiv PLC/Aptiv Corp. 4.15%, 05/01/2052			395		266,750
General Motors Co. 5.60%, 10/15/2032			695		631,019
5.95%, 04/01/2049			395		333,693
General Motors Financial Co., Inc. 2.70%, 06/10/2031			365		271,668
3.85%, 01/05/2028			435		383,185

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.05%, 10/10/2025	U.S.$		360	$	357,216
Lear Corp. 2.60%, 01/15/2032			1,165		849,542
					3,389,438
Consumer Cyclical - Other – 0.9%
DR Horton, Inc. 2.50%, 10/15/2024			1,355		1,277,407
PulteGroup, Inc. 6.00%, 02/15/2035			410		363,949
					1,641,356
Consumer Cyclical - Retailers – 1.6%
Home Depot, Inc. (The) 1.50%, 09/15/2028			1,425		1,176,303
Lowe’s Cos., Inc. 3.70%, 04/15/2046			665		464,435
5.50%, 10/15/2035			660		631,221
5.80%, 09/15/2062			645		577,450
					2,849,409
Consumer Non-Cyclical – 14.2%
Abbott Laboratories 4.75%, 11/30/2036			1,065		1,018,217
AbbVie, Inc. 4.45%, 05/14/2046			435		349,362
4.875%, 11/14/2048			1,275		1,091,618
Amgen, Inc. 3.00%, 02/22/2029			552		483,647
4.40%, 05/01/2045			805		648,043
4.875%, 03/01/2053			380		322,298
AstraZeneca PLC 6.45%, 09/15/2037			445		479,001
Baxter International, Inc. 3.50%, 08/15/2046			1,405		947,131
Becton Dickinson and Co. 2.823%, 05/20/2030			1,130		941,996
Biogen, Inc. 2.25%, 05/01/2030			1,485		1,167,364
3.15%, 05/01/2050			150		92,934
Bristol-Myers Squibb Co. 3.70%, 03/15/2052			510		378,614
3.90%, 03/15/2062			495		362,015
4.25%, 10/26/2049			725		590,406
Cigna Corp. 2.375%, 03/15/2031			410		325,563
3.05%, 10/15/2027			820		734,763
4.80%, 08/15/2038			600		528,688
4.90%, 12/15/2048			260		220,391

18    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CVS Health Corp. 4.78%, 03/25/2038	U.S.$		900	$	780,379
4.875%, 07/20/2035			1,305		1,169,895
Danaher Corp. 2.60%, 10/01/2050			225		135,054
4.375%, 09/15/2045			610		503,829
DH Europe Finance II Sarl 3.40%, 11/15/2049			450		317,715
Fresenius Medical Care US Finance III, Inc. 3.00%, 12/01/2031(a)			945		676,935
Gilead Sciences, Inc. 2.50%, 09/01/2023			1,545		1,511,271
4.50%, 02/01/2045			320		264,184
4.75%, 03/01/2046			375		322,092
4.80%, 04/01/2044			410		353,049
HCA, Inc. 3.50%, 07/15/2051			425		263,633
5.50%, 06/15/2047			735		615,546
Kaiser Foundation Hospitals Series 2021 2.81%, 06/01/2041			200		134,037
Medtronic, Inc. 4.375%, 03/15/2035			365		334,472
Merck & Co., Inc. 1.90%, 12/10/2028			1,800		1,508,930
2.90%, 12/10/2061			225		136,836
Pfizer, Inc. 1.75%, 08/18/2031			695		540,838
4.125%, 12/15/2046			775		654,825
7.20%, 03/15/2039			285		334,159
Roche Holdings, Inc. 2.132%, 03/10/2025(a)			1,970		1,851,115
Takeda Pharmaceutical Co., Ltd. 3.175%, 07/09/2050			340		218,753
Thermo Fisher Scientific, Inc. 2.80%, 10/15/2041			1,275		878,974
Wyeth LLC 5.95%, 04/01/2037			265		276,296
Zoetis, Inc. 2.00%, 05/15/2030			755		595,112
					25,059,980
Services – 3.6%
Global Payments, Inc. 3.20%, 08/15/2029			1,970		1,635,891
Mastercard, Inc. 3.85%, 03/26/2050			2,565		2,016,126

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Moody’s Corp. 2.55%, 08/18/2060	U.S.$		1,125	$	576,572
5.25%, 07/15/2044			265		236,512
PayPal Holdings, Inc. 3.25%, 06/01/2050			900		587,785
5.25%, 06/01/2062			295		253,735
RELX Capital, Inc. 4.75%, 05/20/2032			60		55,861
S&P Global, Inc. 2.30%, 08/15/2060			590		299,738
2.90%, 03/01/2032(a)			863		710,431
4.25%, 05/01/2029(a)			58		54,125
					6,426,776
Technology – 11.5%
Apple, Inc. 4.10%, 08/08/2062			190		147,783
Autodesk, Inc. 2.40%, 12/15/2031			1,570		1,212,020
Broadridge Financial Solutions, Inc. 2.60%, 05/01/2031			1,460		1,136,331
CDW LLC/CDW Finance Corp. 4.125%, 05/01/2025			1,545		1,468,896
Cisco Systems, Inc. 5.50%, 01/15/2040			1,075		1,055,568
5.90%, 02/15/2039			50		51,104
Entegris Escrow Corp. 4.75%, 04/15/2029(a)			390		348,250
Fidelity National Information Services, Inc. 4.50%, 07/15/2025			470		457,404
Fiserv, Inc. 4.40%, 07/01/2049			915		688,315
HP, Inc. 5.50%, 01/15/2033			740		658,808
Intel Corp. 3.10%, 02/15/2060			1,580		897,156
3.25%, 11/15/2049			210		131,719
5.05%, 08/05/2062			765		623,492
International Business Machines Corp. 3.43%, 02/09/2052			575		375,644
4.00%, 06/20/2042			865		668,084
4.90%, 07/27/2052			735		619,826
Jabil, Inc. 4.25%, 05/15/2027			370		342,864
KLA Corp. 4.95%, 07/15/2052			510		444,927
5.00%, 03/15/2049			900		789,891

20    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Lam Research Corp. 2.875%, 06/15/2050	U.S.$		1,220	$	761,858
3.125%, 06/15/2060			480		289,019
Micron Technology, Inc. 2.703%, 04/15/2032			1,610		1,179,384
6.75%, 11/01/2029			189		189,088
Microsoft Corp. 2.675%, 06/01/2060			500		301,952
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.15%, 05/01/2027			515		454,101
3.25%, 05/11/2041			705		455,298
5.00%, 01/15/2033			365		325,952
QUALCOMM, Inc. 1.65%, 05/20/2032			295		221,808
4.65%, 05/20/2035			1,465		1,354,355
Salesforce.com, Inc. 2.90%, 07/15/2051			642		413,154
Skyworks Solutions, Inc. 3.00%, 06/01/2031			1,785		1,326,990
Texas Instruments, Inc. 4.10%, 08/16/2052			272		223,557
Western Digital Corp. 2.85%, 02/01/2029			131		101,403
3.10%, 02/01/2032			720		499,344
Workday, Inc. 3.70%, 04/01/2029			56		49,906
3.80%, 04/01/2032			146		124,881
					20,390,132
Transportation - Services – 0.2%
Ashtead Capital, Inc. 5.50%, 08/11/2032(a)			380		343,507
					83,806,848
Financial Institutions – 33.1%
Banking – 23.5%
ABN AMRO Bank NV 2.47%, 12/13/2029(a)			1,800		1,399,452
4.80%, 04/18/2026(a)			600		561,711
AIB Group PLC 4.263%, 04/10/2025(a)			570		543,573
7.583%, 10/14/2026(a)			539		536,246
American Express Co. 4.05%, 05/03/2029			287		260,274
Banco Santander SA 2.749%, 12/03/2030			1,000		691,635
4.175%, 03/24/2028			400		352,343
4.25%, 04/11/2027			400		361,463

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.179%, 11/19/2025	U.S.$		200	$	190,221
5.294%, 08/18/2027			400		369,959
Bank of America Corp. 2.456%, 10/22/2025			535		498,901
2.572%, 10/20/2032			325		245,431
2.884%, 10/22/2030			470		383,221
3.194%, 07/23/2030			190		158,977
3.384%, 04/02/2026			385		361,550
3.846%, 03/08/2037			985		790,570
4.078%, 04/23/2040			835		650,451
4.376%, 04/27/2028			375		348,781
4.827%, 07/22/2026			370		359,716
Series JJ 5.125%, 06/20/2024(b)			425		399,492
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			370		357,986
Barclays PLC 7.385%, 11/02/2028			627		624,314
8.00%, 03/15/2029(b)			385		346,019
BNP Paribas SA 2.159%, 09/15/2029(a)			1,475		1,138,730
2.871%, 04/19/2032(a)			200		148,444
4.625%, 02/25/2031(a)(b)			264		183,339
6.625%, 09/25/2171(a)(b)			200		187,560
7.375%, 02/19/2171(a)(b)			470		456,126
BPCE SA 2.045%, 10/19/2027(a)			480		399,510
4.625%, 07/11/2024(a)			855		819,707
5.15%, 07/21/2024(a)			375		361,370
Capital One Financial Corp. 4.985%, 07/24/2026			375		361,218
Citigroup, Inc. 2.904%, 11/03/2042			1,005		635,466
3.29%, 03/17/2026			780		731,092
Series Y 4.15%, 11/15/2026(b)			887		695,389
Cooperatieve Rabobank UA 3.75%, 07/21/2026			1,160		1,054,988
4.00%, 04/10/2029(a)			800		752,911
4.375%, 12/29/2170(a)(b)	EUR		200		172,207
Credit Agricole SA 0.125%, 12/09/2027			200		161,141
1.247%, 01/26/2027(a)	U.S.$		1,285		1,082,654
Deutsche Bank AG/New York NY 2.311%, 11/16/2027			877		697,250
3.742%, 01/07/2033			920		631,576

22    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Goldman Sachs Group, Inc. (The) 1.948%, 10/21/2027	U.S.$		805	$	684,069
2.615%, 04/22/2032			410		313,241
3.691%, 06/05/2028			500		449,348
4.223%, 05/01/2029			350		316,715
4.411%, 04/23/2039			465		377,335
4.482%, 08/23/2028			380		353,156
ING Groep NV 1.40%, 07/01/2026(a)			950		832,303
2.727%, 04/01/2032			540		405,037
6.50%, 04/16/2025(b)			680		619,691
Intesa Sanpaolo SpA 3.875%, 01/12/2028(a)			460		388,658
Series XR 4.00%, 09/23/2029(a)			1,170		953,763
Lloyds Banking Group PLC 3.574%, 11/07/2028			310		265,225
4.65%, 03/24/2026			630		581,425
4.716%, 08/11/2026			380		359,186
Mitsubishi UFJ Financial Group, Inc. 0.848%, 07/19/2029(a)	EUR		200		159,109
1.64%, 10/13/2027	U.S.$		461		388,163
5.354%, 09/13/2028			370		357,006
Morgan Stanley 2.475%, 01/21/2028			907		784,612
3.62%, 04/17/2025			560		540,946
4.889%, 07/20/2033			555		506,614
6.296%, 10/18/2028			705		711,380
Series I 0.864%, 10/21/2025			835		753,506
Nationwide Building Society 2.972%, 02/16/2028(a)			1,065		902,747
Natwest Group PLC 2.359%, 05/22/2024			935		912,154
Santander Holdings USA, Inc. 4.26%, 06/09/2025			290		277,736
Santander UK Group Holdings PLC 2.469%, 01/11/2028			514		422,996
Shinhan Bank Co., Ltd. 4.375%, 04/13/2032(a)			385		323,027
Societe Generale SA 2.797%, 01/19/2028(a)			960		796,367
2.889%, 06/09/2032(a)			1,480		1,060,994
Standard Chartered PLC 1.214%, 03/23/2025(a)			955		883,026
2.608%, 01/12/2028(a)			920		757,539

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Sumitomo Mitsui Financial Group, Inc. 2.472%, 01/14/2029	U.S.$		920	$	747,046
Svenska Handelsbanken AB 4.75%, 03/01/2171(a)(b)			1,000		773,167
Synchrony Bank 5.625%, 08/23/2027			570		537,359
UniCredit SpA 1.982%, 06/03/2027(a)			621		504,992
US Bancorp 4.967%, 07/22/2033			281		255,912
					41,718,514
Finance – 0.3%
Synchrony Financial 3.95%, 12/01/2027			295		253,916
4.875%, 06/13/2025			285		273,810
					527,726
Insurance – 4.1%
Allianz SE 3.20%, 04/30/2171(a)(b)			1,400		938,941
Assicurazioni Generali SpA 2.124%, 10/01/2030(a)	EUR		545		414,107
2.429%, 07/14/2031(a)			470		353,359
Centene Corp. 2.50%, 03/01/2031	U.S.$		1,295		989,722
2.625%, 08/01/2031			708		541,362
Humana, Inc. 2.15%, 02/03/2032			635		477,776
4.50%, 04/01/2025			660		646,779
Prudential Financial, Inc. 5.20%, 03/15/2044			1,150		1,073,127
Voya Financial, Inc. 5.65%, 05/15/2053			1,768		1,709,167
Zurich Finance Ireland Designated Activity Co. 3.00%, 04/19/2051(a)			200		141,801
					7,286,141
REITs – 5.2%
Alexandria Real Estate Equities, Inc. 2.00%, 05/18/2032			385		277,963
2.95%, 03/15/2034			1,158		870,077
American Homes 4 Rent LP 3.375%, 07/15/2051			845		496,489
American Tower Corp. 2.95%, 01/15/2051			475		270,571
3.70%, 10/15/2049			510		334,228
3.80%, 08/15/2029			285		248,756

24    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Boston Properties LP 4.50%, 12/01/2028	U.S.$		1,400	$	1,262,375
Digital Dutch Finco BV 1.00%, 01/15/2032(a)	EUR		800		529,488
Equinix, Inc. 3.90%, 04/15/2032	U.S.$		385		324,493
Healthpeak Properties, Inc. 1.35%, 02/01/2027			677		569,746
MPT Operating Partnership LP/MPT Finance Corp. 5.00%, 10/15/2027			1,445		1,235,499
Omega Healthcare Investors, Inc. 3.25%, 04/15/2033			765		533,480
Prologis LP 1.25%, 10/15/2030			1,155		846,864
3.00%, 04/15/2050			240		151,284
Ventas Realty LP 5.70%, 09/30/2043			290		249,520
Welltower, Inc. 4.95%, 09/01/2048			765		607,245
Weyerhaeuser Co. 3.375%, 03/09/2033			390		311,242
7.375%, 03/15/2032			22		23,415
					9,142,735
					58,675,116
Utility – 7.6%
Electric – 7.3%
Avangrid, Inc. 3.20%, 04/15/2025			1,515		1,430,154
Commonwealth Edison Co. 3.00%, 03/01/2050			205		130,548
Consolidated Edison Co. of New York, Inc. 4.50%, 05/15/2058			855		650,499
Series 05-A 5.30%, 03/01/2035			225		209,591
Series A 4.125%, 05/15/2049			155		116,276
Consorcio Transmantaro SA 4.70%, 04/16/2034(a)			890		772,298
EDP Finance BV 1.71%, 01/24/2028(a)			2,720		2,153,869
Enel Finance International NV 2.25%, 07/12/2031(a)			1,270		866,244
6.80%, 09/15/2037(a)			280		253,657
7.50%, 10/14/2032(a)			200		201,025
Engie SA 3.25%, 02/28/2171(a)(b)	EUR		200		190,779

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Florida Power & Light Co. 4.125%, 02/01/2042	U.S.$		85	$	69,042
5.69%, 03/01/2040			160		156,224
Iberdrola International BV Series NC9 1.825%, 02/09/2171(a)(b)	EUR		1,100		790,083
NextEra Energy Capital Holdings, Inc. 1.90%, 06/15/2028	U.S.$		897		741,537
2.25%, 06/01/2030			440		349,351
4.80%, 12/01/2077			325		255,610
5.00%, 07/15/2032			540		513,538
Niagara Mohawk Power Corp. 1.96%, 06/27/2030(a)			1,090		828,473
5.783%, 09/16/2052(a)			370		335,390
Public Service Electric and Gas Co. 3.10%, 03/15/2032			743		624,787
3.80%, 03/01/2046			615		458,804
San Diego Gas & Electric Co. Series WWW 2.95%, 08/15/2051			1,275		802,807
					12,900,586
Other Utility – 0.3%
American Water Capital Corp. 3.25%, 06/01/2051			735		485,121
3.45%, 05/01/2050			195		133,132
					618,253
					13,518,839
Total Corporates - Investment Grade (cost $197,430,281)					156,000,803
CORPORATES - NON-INVESTMENT GRADE – 3.2%
Industrial – 2.4%
Capital Goods – 0.4%
Clean Harbors, Inc. 4.875%, 07/15/2027(a)			95		89,469
GFL Environmental, Inc. 4.375%, 08/15/2029(a)			251		212,590
5.125%, 12/15/2026(a)			445		424,404
					726,463
Communications - Media – 0.4%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.75%, 02/01/2032(a)			889		712,686

26    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.9%
Dana, Inc. 4.25%, 09/01/2030	U.S.$		935	$	747,063
Ford Motor Co. 3.25%, 02/12/2032			871		654,060
6.10%, 08/19/2032			285		261,127
					1,662,250
Consumer Non-Cyclical – 0.6%
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(a)			985		591,833
US Acute Care Solutions LLC 6.375%, 03/01/2026(a)			455		411,978
					1,003,811
Services – 0.1%
Block, Inc. 3.50%, 06/01/2031			200		161,013
					4,266,223
Financial Institutions – 0.8%
Banking – 0.8%
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			730		693,228
Societe Generale SA 8.00%, 09/29/2025(a)(b)			645		635,911
					1,329,139
Total Corporates - Non-Investment Grade (cost $6,946,328)					5,595,362
EMERGING MARKETS - CORPORATE BONDS – 1.8%
Industrial – 1.5%
Basic – 0.8%
Klabin Austria GmbH 3.20%, 01/12/2031(a)			2,040		1,524,900
Energy – 0.3%
ReNew Power Pvt Ltd. 5.875%, 03/05/2027(a)			530		473,124
Services – 0.4%
MercadoLibre, Inc. 3.125%, 01/14/2031			990		710,325
					2,708,349
Financial Institutions – 0.3%
Banking – 0.3%
Itau Unibanco Holding SA/Cayman Island 3.875%, 04/15/2031(a)			480		411,084
Total Emerging Markets - Corporate Bonds (cost $4,006,412)					3,119,433

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

Company		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - TREASURIES – 1.6%
United States – 1.6%
U.S. Treasury Notes 4.25%, 09/30/2024 (cost $2,845,332)	U.S.$		2,837	$	2,822,704
SUPRANATIONALS – 0.5%
International Bank for Reconstruction & Development Zero Coupon, 03/31/2027 (cost $925,699)			970		854,761
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.0%
United States – 0.0%
Metropolitan Transportation Authority Series 2020-C 5.175%, 11/15/2049 (cost $78,923)			65		54,410
		Shares
SHORT-TERM INVESTMENTS – 3.9%
Investment Companies – 3.9%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(c)(d)(e) (cost $6,929,310)			6,929,310		6,929,310
		Principal Amount (000)
Time Deposits – 0.0%
Citibank, London 0.31%, 11/01/2022 (cost $44,611)	EUR		45		44,611
Total Short-Term Investments (cost $6,973,921)					6,973,921
Total Investments – 99.0% (cost $219,206,896)					175,421,394
Other assets less liabilities – 1.0%					1,722,187
Net Assets – 100.0%				$	177,143,581

28    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation (Depreciation)
Purchased Contracts
U.S. T-Note 2 Yr (CBT) Futures		18		December 2022	$	3,678,891	$	(38,641	)
U.S. T-Note 5 Yr (CBT) Futures		84		December 2022		8,953,875		(338,617	)
U.S. Ultra Bond (CBT) Futures		26		December 2022		3,319,063		(538,438	)
Sold Contracts
Euro-BOBL Futures		7		December 2022		827,847		24,835
Euro-Bund Futures		10		December 2022		1,368,133		59,690
Euro-Schatz Futures		10		December 2022		1,056,785		13,144
U.S. 10 Yr Ultra Futures		33		December 2022		3,827,484		255,984
							$	(562,043	)

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		EUR	5,938		USD	5,747		12/08/2022	$	(137,756	)
Citibank, NA		USD	484		EUR	492		12/08/2022		3,699
JPMorgan Chase Bank, NA		USD	2,268		EUR	2,303		12/08/2022		14,723
									$	(119,334	)

(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, 2022, the aggregate market value of these securities amounted to $39,380,065 or 22.2% 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) The rate shown represents the 7-day yield as of period end.

(d) 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.

(e) Affiliated investments.

Currency Abbreviations:

EUR – Euro

USD – United States Dollar

Glossary:

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

REIT – Real Estate Investment Trust

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value Unaffiliated issuers (cost $212,277,586)	$	168,492,084
Affiliated issuers (cost $6,929,310)		6,929,310
Cash collateral due from broker		344,041
Foreign currencies, at value (cost $127)		126
Unaffiliated interest receivable		1,791,758
Receivable for capital stock sold		667,560
Unrealized appreciation on forward currency exchange contracts		18,422
Affiliated dividends receivable		17,741
Total assets		178,261,042
Liabilities
Due to Custodian		26,142
Payable for investment securities purchased		627,000
Unrealized depreciation on forward currency exchange contracts		137,756
Dividends payable		73,994
Audit and tax fee payable		60,814
Payable for variation margin on futures		49,931
Advisory fee payable		30,589
Administrative fee payable		25,227
Transfer Agent fee payable		1,500
Directors’ fee payable		136
Distribution fee payable		12
Accrued expenses		84,360
Total liabilities		1,117,461
Net Assets	$	177,143,581
Composition of Net Assets
Capital stock, at par	$	22,898
Additional paid-in capital		227,671,041
Accumulated loss		(50,550,358	)
	$	177,143,581

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	58,069		7,505	$	7.74	*
Advisor	$	177,085,512		22,890,739	$	7.74

* The maximum offering price per share for Class A shares was $8.08, which reflects a sales charge of 4.25%.

See notes to financial statements.

30    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest (net of foreign taxes withheld of $5,947)	$	5,306,721
Dividends
Affiliated issuers		55,537
Unaffiliated issuers		3		$	5,362,261
Expenses
Advisory fee (see Note B)		830,670
Transfer agency—Class A		7
Transfer agency—Advisor Class		20,069
Distribution fee—Class A		166
Custody and accounting		119,502
Administrative		96,179
Amortization of offering expenses		67,176
Audit and tax		65,933
Registration fees		58,154
Legal		25,801
Printing		20,756
Directors’ fees		18,594
Miscellaneous		8,577
Total expenses		1,331,584
Less: expenses waived and reimbursed by the Adviser (see Note B)		(227,310	)
Net expenses					1,104,274
Net investment income					4,257,987
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions					(4,457,094	)
Forward currency exchange contracts					1,734,103
Futures					(1,753,280	)
Foreign currency transactions					(897,580	)
Net change in unrealized appreciation (depreciation) on:
Investments					(42,942,493	)
Forward currency exchange contracts					(393,429	)
Futures					(610,960	)
Foreign currency denominated assets and liabilities					2,407
Net loss on investment and foreign currency transactions					(49,318,326	)
Net Decrease in Net Assets from Operations				$	(45,060,339	)

See notes to financial statements.

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STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			May 10, 2021(a) to October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	4,257,987		$	902,896
Net realized gain (loss) on investment and foreign currency transactions		(5,373,851	)		283,101
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities		(43,944,475	)		(524,180	)
Net increase (decrease) in net assets from operations		(45,060,339	)		661,817
Distributions to Shareholders
Class A		(1,743	)		(187	)
Advisor Class		(5,232,202	)		(1,005,775	)
Capital Stock Transactions
Net increase		58,179,131			169,602,879
Total increase		7,884,847			169,258,734
Net Assets
Beginning of period		169,258,734			– 0	–
End of period	$	177,143,581		$	169,258,734

(a) Commencement of operations.

See notes to financial statements.

32    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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, 2022. 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Company’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Company’s portfolio investments, subject to the Board’s oversight.

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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, 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

34    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

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

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

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

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

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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, 2022:

Investments in Securities	Level 1			Level 2			Level 3			Total
Assets:
Corporates – Investment Grade	$	– 0	–	$	156,000,803		$	– 0	–	$	156,000,803
Corporates – Non-Investment Grade		– 0	–		5,595,362			– 0	–		5,595,362
Emerging Markets – Corporate Bonds		– 0	–		3,119,433			– 0	–		3,119,433
Governments – Treasuries		– 0	–		2,822,704			– 0	–		2,822,704
Supranationals		– 0	–		854,761			– 0	–		854,761
Local Governments – US Municipal Bonds		– 0	–		54,410			– 0	–		54,410
Short-Term Investments:
Investment Companies		6,929,310			– 0	–		– 0	–		6,929,310
Time Deposits		– 0	–		44,611			– 0	–		44,611
Total Investments in Securities		6,929,310			168,492,084			– 0	–		175,421,394

36    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities	Level 1			Level 2			Level 3			Total
Other Financial Instruments*:
Assets
Futures	$	353,653		$	– 0	–	$	– 0	–	$	353,653	†
Forward Currency Exchange Contracts		– 0	–		18,422			– 0	–		18,422
Liabilities
Futures		(915,696	)		– 0	–		– 0	–		(915,696	)†
Forward Currency Exchange Contracts		– 0	–		(137,756	)		– 0	–		(137,756	)
Total	$	6,367,267		$	168,372,750		$	– 0	–	$	174,740,017

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

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

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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NOTES TO FINANCIAL STATEMENTS (continued)

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 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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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 year ended October 31, 2022, such reimbursements/waivers amounted to $222,462. The Expense Caps may not be terminated by the Adviser before January 31, 2023. 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 and $222,462 for the year ended October 31, 2022. 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 year ended October 31, 2022, the reimbursement for such services amounted to $96,179.

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 $18,000 for the year ended October 31, 2022.

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

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    39

NOTES TO FINANCIAL STATEMENTS (continued)

charges of $0 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 year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of ..20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $4,848.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	5,565	$	73,767	$	72,403	$	6,929	$	56

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2022, were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	96,311,998	$	44,696,149
U.S. government securities		2,845,644		– 0	–

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

Cost	$	219,525,377
Gross unrealized appreciation	$	766,444
Gross unrealized depreciation		(44,870,427	)
Net unrealized depreciation	$	(44,103,983	)

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.

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NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2022, 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 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, 2022, 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 year ended October 31, 2022, 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	$	353,653	*	Receivable/Payable for variation margin on futures	$	915,696	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		18,422		Unrealized depreciation on forward currency exchange contracts		137,756
Total		$	372,075			$	1,053,452

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

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation (depreciation) on futures	$	(1,753,280	)	$	(610,960	)
Foreign currency contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts		1,734,103			(393,429	)
Total		$	(19,177	)	$	(1,004,389	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	1,085,880	(a)
Average principal amount of sale contracts	$	8,691,268
Futures:
Average notional amount of buy contracts	$	17,193,464
Average notional amount of sale contracts	$	9,718,764

(a) Positions were open for seven 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, 2022. 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

$

3,699

$

– 0

–

$

– 0

–

$

– 0

–

$

3,699

JPMorgan Chase Bank, NA

14,723

– 0

–

– 0

–

– 0

–

14,723

Total

$

18,422

$

– 0

–

$

– 0

–

$

– 0

–

$

18,422

^

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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
Bank of America, NA	$	137,756	$	– 0	–	$	– 0	–	$	– 0	–	$	137,756
Total	$	137,756	$	– 0	–	$	– 0	–	$	– 0	–	$	137,756	^

* 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).

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, 2022			May 10, 2021* to October 31, 2021		Year Ended October 31, 2022			May 10, 2021* to October 31, 2021
Class A
Shares sold		– 0	–		7,329	$	– 0	–	$	74,978
Shares issued in reinvestment of dividends and distributions		165			11		1,484			107
Net increase		165			7,340	$	1,484		$	75,085

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NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2022			May 10, 2021* to October 31, 2021			Year Ended October 31, 2022			May 10, 2021* to October 31, 2021
Advisor Class
Shares sold		8,566,886			19,139,077		$	79,602,059		$	194,101,830
Shares issued in reinvestment of dividends and distributions		493,814			78,767			4,382,521			803,778
Shares redeemed		(2,886,247	)		(2,501,558	)		(25,806,933	)		(25,377,814	)
Net increase		6,174,453			16,716,286		$	58,177,647		$	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) and regional and global conflicts, 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 Adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment.

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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NOTES TO FINANCIAL STATEMENTS (continued)

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

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

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

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

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

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

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Emerging market currencies may be more volatile and less liquid, and subject to significantly greater risk of currency controls and convertibility restrictions, than currencies of developed countries.

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NOTES TO FINANCIAL STATEMENTS (continued)

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

Leverage Risk—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 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 utilize the

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal year ended October 31, 2022 and the period ended October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	5,154,448	$	1,005,962
Net long-term capital gains		79,497		– 0	–
Total taxable distributions paid	$	5,233,945	$	1,005,962

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	529,082
Accumulated capital and other losses		(6,899,687	)(a)
Unrealized appreciation (depreciation)		(44,105,759	)(b)
Total accumulated earnings/(deficit)	$	(50,476,364	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $6,899,687.

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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 and the tax treatment of callable bonds.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $4,067,604 and a net long-term capital loss carryforward of $2,832,083, which may be carried forward for an indefinite period.

During the current fiscal year, 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.

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FINANCIAL HIGHLIGHTS

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

	Class A
	Year Ended October 31, 2022			May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  10.12			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.18			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.32	)		.13
Net increase (decrease) in net asset value from operations		(2.14	)		.20
Less: Dividends and Distributions
Dividends from net investment income		(.23	)		(.08	)
Distributions from net realized gain on investment and foreign currency transactions		(.01	)		– 0	–
Total dividends and distributions		(.24	)		(.08	)
Net asset value, end of period		$  7.74			$  10.12
Total Return
Total investment return based on net asset value(d)		(21.48	)%		2.00	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$58			$74
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.85	%		.85	%(e)
Expenses, before waivers/reimbursements		.97	%		1.14	%(e)
Net investment income(c)		2.04	%		1.47	%(e)
Portfolio turnover rate		25	%		31	%

See footnote summary on page 53.

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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, 2022			May 10, 2021(a) to October 31, 2021
Net asset value, beginning of period		$  10.12			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.21			.08
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.33	)		.13
Net increase (decrease) in net asset value from operations		(2.12	)		.21
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.09	)
Distributions from net realized gain on investment and foreign currency transactions		(.01	)		– 0	–
Total dividends and distributions		(.26	)		(.09	)
Net asset value, end of period		$  7.74			$  10.12
Total Return
Total investment return based on net asset value(d)		(21.29	)%		2.12	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$177,086			$169,185
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%		.60	%(e)
Expenses, before waivers/reimbursements		.72	%		.93	%(e)
Net investment income(c)		2.31	%		1.69	%(e)
Portfolio turnover rate		25	%		31	%

(a) Commencement of operations.

(b) Based on average shares outstanding.

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

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

(e) Annualized.

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 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, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets and financial highlights for the year then ended and 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, 2022, and the results of its operations for the year then ended, the changes in its net assets and its financial highlights for the year then ended and 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 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 2022

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    55

2022 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, 2022. For foreign shareholders, 60.84% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends. The Fund designates $79,497 of dividends paid as long-term capital gain 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 2023.

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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⁾

OFFICERS

Gershon M. Distenfeld⁽²⁾, Vice President Tiffanie Wong⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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 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 Ms. Wong are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    57

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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (1992)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2005)	Private Investor since prior to 2017. Formerly, Chairman of the Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2008)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Gershon M. Distenfeld 47	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Co-Head of Fixed-Income.
Tiffanie Wong 37	Vice President	Senior Vice President of the Adviser**, with which she has been associated since prior to 2017. She is also Director – Fixed income Responsible Investing Portfolio Management; and Director – US Investment-Grade Credit.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 Funds’ Liquidity Risk Management Program:

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

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

Another requirement of the Liquidity Rule is for the Fund’s Board of Directors/Trustees (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the “Program Reporting Period”).

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

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

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

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

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

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    65

and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

66    ^|    AB SUSTAINABLE THEMATIC  CREDIT PORTFOLIO abfunds.com

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 Thematic Credit 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

abfunds.com AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO    ^|    67

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 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.

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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 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.

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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 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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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NOTES

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AB SUSTAINABLE THEMATIC CREDIT PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

STC-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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

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ANNUAL REPORT

December 8, 2022

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, 2022.

The investment objective of the Fund is to seek to maximize after-tax return and income.

NAV RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	6 Months		12 Months
AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO
Class A Shares		-5.68%		-12.93%
Class C Shares		-6.04%		-13.59%
Advisor Class Shares1		-5.56%		-12.71%
Bloomberg Municipal Bond Index		-4.43%		-11.98%

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, 2022.

During both periods, all share classes of the Fund underperformed the benchmark, before sales charges. The Fund’s overweight to municipal credit detracted, relative to the benchmark. Yield-curve positioning contributed, particularly an overweight to the long part of the yield curve.

For the 12-month period, security selection within the private-higher-education sector detracted. During the six-month period, security selection within special tax detracted.

The Fund utilized derivatives in the form of interest rate swaps for hedging purposes, which detracted from absolute returns for both periods. Credit default swaps were used for hedging and investment purposes, which added for both periods. Consumer Price Index (“CPI”) swaps were utilized for hedging purposes, which had no material impact over both periods. Municipal market data rate locks were used for investment purposes, which added for both periods.

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MARKET REVIEW AND INVESTMENT STRATEGY

Yields continued their ascent higher toward the end of the reporting period ended October 31, 2022. During the 12-month period, the yield on a 10-Year AAA municipal bond rose to 3.39% from 1.22% and the yield on the 10-Year US Treasury rose to 4.06% from 1.58%. Demand for municipals continued to weaken during the six-month period, as investors have pulled approximately $104.8 billion year to date from municipal bond mutual funds and exchange-traded funds as of October 26, 2022. In addition to broader fixed-income market volatility, these municipal market outflows contributed to municipal underperformance versus US Treasuries, with 10-Year AAA Muni/Treasury after-tax spreads widening 73 basis points (“b.p.”) during the 12-month period and 1 b.p. during the six-month period. Average BBB credit spreads widened during the 12-month and six-month periods by approximately 60 b.p. and 26 b.p., respectively.

The Fund’s Senior Investment Management Team (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 decline. As of October 31, 2022, 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 2.52% 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

(continued on next page)

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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) and regional and global conflicts, 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 earthquakes. For example, the novel coronavirus (COVID-19) pandemic

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DISCLOSURES AND RISKS (continued)

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 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.

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DISCLOSURES AND RISKS (continued)

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments 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: 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.

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

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DISCLOSURES AND RISKS (continued)

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 10/31/2022

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 10/31/2022) 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, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1		Taxable Equivalent Yields2
CLASS A SHARES						3.69%		5.68%
1 Year		-12.93%		-15.56%
5 Years		0.73%		0.12%
Since Inception3		2.06%		1.71%
CLASS C SHARES						3.05%		4.69%
1 Year		-13.59%		-14.44%
5 Years		-0.02%		-0.02%
Since Inception3,4		1.31%		1.31%
ADVISOR CLASS SHARES5						4.07%		6.26%
1 Year		-12.71%		-12.71%
5 Years		0.98%		0.98%
Since Inception3		2.32%		2.32%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.08%, 1.81% and 0.82% 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 limited the Fund’s total 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, 2023, 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, 2022.

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 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.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-14.73%
5 Years		0.38%
Since Inception1		1.86%
CLASS C SHARES
1 Year		-13.61%
5 Years		0.24%
Since Inception1,2		1.46%
ADVISOR CLASS SHARES3
1 Year		-11.86%
5 Years		1.22%
Since Inception1		2.47%

1 Inception date: 12/11/2013.

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.

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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 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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	943.20	$	3.72		0.76	%
Hypothetical**	$	1,000	$	1,021.37	$	3.87		0.76	%
Class C
Actual	$	1,000	$	939.60	$	7.38		1.51	%
Hypothetical**	$	1,000	$	1,017.59	$	7.68		1.51	%
Advisor Class
Actual	$	1,000	$	944.40	$	2.50		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.

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PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $311.0

1 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 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.

2 “Other” represents less than 2.7% in 31 different states, American Samoa, District of Columbia and Guam.

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PORTFOLIO OF INVESTMENTS

October 31, 2022

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 101.6%
Long-Term Municipal Bonds – 88.7%
Alabama – 2.8%
Black Belt Energy Gas District (Goldman Sachs Group, Inc. (The)) Series 2021 4.00%, 10/01/2052	$	1,000	$	962,604
Series 2022-F 5.50%, 11/01/2053		2,000		2,020,041
County of Jefferson AL Sewer Revenue Series 2013-D 6.00%, 10/01/2042		110		117,302
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2021 4.00%, 02/01/2037		1,610		1,435,791
Southeast Energy Authority A Cooperative District Series 2022-A 4.95% (SOFR + 2.42%), 01/01/2053(a)(b)		2,000		1,988,254
Southeast Energy Authority A Cooperative District (Morgan Stanley) Series 2022 5.50%, 01/01/2053(a)		1,000		1,010,803
Sumter County Industrial Development Authority/AL (Enviva, Inc.) Series 2022 6.00%, 07/15/2052		1,185		1,069,904
				8,604,699
American Samoa – 0.1%
American Samoa Economic Development Authority (Territory of American Samoa) Series 2018 7.125%, 09/01/2038(c)		135		149,564
Arizona – 2.0%
Arizona Industrial Development Authority (Arizona Industrial Development Authority) Series 2019-2, Class A 3.625%, 05/20/2033		194		175,255
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 7.75%, 07/01/2050(c)		1,000		877,257

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arizona Industrial Development Authority (Phoenix Children’s Hospital Obligated Group) Series 2021 4.00%, 02/01/2040	$	1,000	$	878,664
Arizona Industrial Development Authority (Pinecrest Academy of Nevada) Series 2020-A 4.00%, 07/15/2050(c)		100		71,427
Chandler Industrial Development Authority (Intel Corp.) Series 2022 5.00%, 09/01/2042		2,000		2,048,665
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.222%, 07/01/2030		1,000		800,320
City of Tempe AZ (City of Tempe AZ COP) Series 2021 2.521%, 07/01/2036		1,000		706,929
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona Obligated Group) Series 2014 5.00%, 07/01/2044		100		94,409
Industrial Development Authority of the County of Pima (The) (La Posada at Park Centre, Inc. Obligated Group) Series 2022 6.75%, 11/15/2042(c)		250		249,447
7.00%, 11/15/2057(c)		250		246,774
Maricopa County Industrial Development Authority (Commercial Metals Co.) Series 2022 4.00%, 10/15/2047(c)		150		110,193
				6,259,340
Arkansas – 0.4%
Arkansas Development Finance Authority (Baptist Memorial Health Care Obligated Group) Series 2020 5.00%, 09/01/2044		1,000		909,463

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PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Arkansas Development Finance Authority (United States Steel Corp.) Series 2022 5.45%, 09/01/2052(c)	$	200	$	180,201
				1,089,664
California – 8.2%
Alameda Corridor Transportation Authority Series 2022-A Zero Coupon, 10/01/2049		1,000		444,493
ARC70 II TRUST  Series 2021 4.00%, 12/01/2059		300		237,801
California Community Housing Agency (California Community Housing Agency Aster Apartments) Series 2021-A 4.00%, 02/01/2056(c)		1,000		746,527
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021 4.00%, 02/01/2056(c)		250		186,694
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 3.00%, 08/01/2056(c)		500		299,122
4.00%, 08/01/2046(c)		500		346,049
California Community Housing Agency (California Community Housing Agency Summit at Sausalito Apartments) Series 2021 3.00%, 02/01/2057(c)		1,000		603,967
California Community Housing Agency (California Community Housing Agency Twin Creek Apartments) Series 2022 Zero Coupon, 08/01/2065(c)		2,500		110,554
5.50%, 02/01/2040(c)		1,000		832,613
California Housing Finance Agency Series 2019-2, Class A 4.00%, 03/20/2033		153		144,546
Series 2021-2, Class X 0.823%, 03/25/2035(d)		1,000		55,615
Series 2021-3, Class A 3.25%, 08/20/2036		247		201,808

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California Infrastructure & Economic Development Bank Series 2022 0.85%, 01/01/2050 (Pre-refunded/ETM)(c)	$	5,000	$	4,954,820
California Municipal Finance Authority (CHF-Riverside II LLC) Series 2019 5.00%, 05/15/2040		250		237,934
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/2045(c)		250		222,991
California School Finance Authority (Classical Academy Obligated Group) Series 2022 5.00%, 10/01/2052(c)		1,000		898,146
California Statewide Communities Development Authority (Enloe Medical Center Obligated Group) AGM Series 2022-A 5.375%, 08/15/2057(a)		1,000		992,267
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2016-A 5.00%, 12/01/2041(c)		1,000		915,333
5.25%, 12/01/2056(c)		250		227,028
City of Los Angeles Department of Airports Series 2020-C 5.00%, 05/15/2039		1,000		1,003,432
Series 2022 4.00%, 05/15/2047		1,000		832,635
5.25%, 05/15/2047		2,000		2,023,336
CMFA Special Finance Agency Series 2022-A 4.00%, 08/01/2058(c)		400		286,815
CMFA Special Finance Agency (CMFA Special Finance Agency Latitude33) Series 2021-A 3.00%, 12/01/2056(c)		200		116,366
CMFA Special Finance Agency (CMFA Special Finance Agency Solana at Grand) Series 2021-A 4.00%, 08/01/2056(c)		250		186,312

18    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CMFA Special Finance Agency VIII Elan Huntington Beach Series 2021 3.00%, 08/01/2056(c)	$	1,000	$	597,346
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 777 Place-Pomona) Series 2021 3.25%, 05/01/2057(c)		250		157,738
4.00%, 05/01/2057(c)		350		220,233
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2056(c)		400		297,944
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 4.00%, 10/01/2056(c)		200		137,341
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Crescent) Series 2022 4.30%, 07/01/2059(c)		500		375,102
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(c)		100		61,578
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Millennium South Bay-Hawthorne) Series 2021 3.25%, 07/01/2056(c)		500		298,135
4.00%, 07/01/2058(c)		200		123,765
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Park Crossing Apartments) Series 2021 3.25%, 12/01/2058(c)		300		181,476
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Pasadena Portfolio) Series 2021 3.00%, 12/01/2056(c)		1,000		594,009
4.00%, 12/01/2056(c)		400		256,975

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A2 4.00%, 07/01/2056(c)	$	1,000	$	696,906
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 3.25%, 10/01/2058(c)		1,000		606,060
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Waterscape Apartments) Series 2021-A 3.00%, 09/01/2056(c)		500		294,503
Golden State Tobacco Securitization Corp. Series 2021 3.85%, 06/01/2050		1,000		852,689
Hastings Campus Housing Finance Authority Series 2020-A 5.00%, 07/01/2061(c)		1,000		762,737
River Islands Public Financing Authority (River Islands Public Financing Authority Community Facilities District No 2003-1) Series 2022 5.75%, 09/01/2052		1,000		883,304
San Francisco Intl Airport Series 2022-A 5.00%, 05/01/2052		1,000		954,906
Tobacco Securitization Authority of Northern California (Sacramento County Tobacco Securitization Corp.) Series 2021 Zero Coupon, 06/01/2060		200		24,642
Tobacco Securitization Authority of Southern California (San Diego County Tobacco Asset Securitization Corp.) Series 2006 Zero Coupon, 06/01/2046		1,000		156,785
				25,641,378
Colorado – 2.0%
Aurora Highlands Community Authority Board Series 2021-A 5.75%, 12/01/2051		500		418,319

20    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City & County of Denver CO (United Airlines, Inc.) Series 2017 5.00%, 10/01/2032	$	615	$	591,478
Colorado Educational & Cultural Facilities Authority (James Irwin Educational Foundation Obligated Group) Series 2022 5.00%, 09/01/2062		1,000		874,181
Colorado Educational & Cultural Facilities Authority (Lighthouse Building Corp.) Series 2021 4.00%, 10/01/2061		1,000		689,563
Colorado Health Facilities Authority (Aberdeen Ridge, Inc. Obligated Group) Series 2021-A 5.00%, 05/15/2049		100		76,321
Colorado Health Facilities Authority (Christian Living Neighborhoods Obligated Group) Series 2021 4.00%, 01/01/2042		250		176,459
Colorado Health Facilities Authority (Frasier Meadows Manor, Inc. Obligated Group) Series 2023-2 4.00%, 05/15/2041(a)		100		75,971
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015-B 5.00%, 09/01/2030		200		202,821
Copper Ridge Metropolitan District Series 2019 5.00%, 12/01/2039		500		434,651
Douglas County Housing Partnership (Bridgewater Castle Rock ALF LLC) Series 2021 5.375%, 01/01/2041(c)		250		179,407
E-470 Public Highway Authority Series 2021-B 2.387% (SOFR + 0.35%), 09/01/2039(b)		1,000		984,813
Four Corners Business Improvement District Series 2022 6.00%, 12/01/2052		500		420,958

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Johnstown Plaza Metropolitan District Series 2022 4.25%, 12/01/2046	$	500	$	378,407
Pueblo Urban Renewal Authority Series 2021-B Zero Coupon, 12/01/2025(c)		260		214,530
Vauxmont Metropolitan District AGM Series 2019 5.00%, 12/15/2028		380		402,910
AGM Series 2020 5.00%, 12/01/2050		100		100,434
				6,221,223
Connecticut – 0.5%
City of New Haven CT Series 2018-A 5.50%, 08/01/2038		615		644,556
Connecticut State Health & Educational Facilities Authority (Stamford Hospital Obligated Group (The)) Series 2022 4.00%, 07/01/2037		1,000		874,482
Town of Hamden CT (Whitney Center, Inc. Obligated Group) Series 2022-A 7.00%, 01/01/2053		100		98,020
				1,617,058
Delaware – 0.4%
Delaware River & Bay Authority Series 2022 5.00%, 01/01/2032		1,100		1,210,175
District of Columbia – 0.6%
District of Columbia (Friendship Public Charter School, Inc.) Series 2016-A 5.00%, 06/01/2041		100		95,311
District of Columbia Tobacco Settlement Financing Corp. Series 2006 Zero Coupon, 06/15/2055		2,500		175,678
Metropolitan Washington Airports Authority Dulles Toll Road Revenue AGM Series 2022 4.00%, 10/01/2052		2,000		1,637,353
				1,908,342

22    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Florida – 5.7%
Align Affordable Housing Bond Fund LP (SHI – Lake Worth LLC) Series 2021 3.25%, 12/01/2051(c)	$	1,000	$	832,384
Bexley Community Development District Series 2016 4.875%, 05/01/2047		100		89,213
Capital Trust Agency, Inc. (Educational Growth Fund LLC) Series 2021 5.00%, 07/01/2056(c)		1,000		832,365
City of Palmetto FL (Renaissance Arts and Education, Inc.) Series 2022 5.375%, 06/01/2057		1,000		896,749
City of Tampa FL (State of Florida Cigarette Tax Revenue) Series 2020-A Zero Coupon, 09/01/2053		1,000		170,852
County of Broward FL Airport System Revenue Series 2019-A 4.00%, 10/01/2044		1,000		827,871
County of Lake FL (Waterman Communities, Inc.) Series 2020 5.75%, 08/15/2055		200		162,182
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015-A 5.00%, 06/01/2028		780		806,495
County of Miami-Dade FL Aviation Revenue Series 2015-A 5.00%, 10/01/2031		265		266,019
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2036		230		101,608
Florida Development Finance Corp. (Assistance Unlimited, Inc,) Series 2022 6.00%, 08/15/2057(c)		350		296,990
Florida Development Finance Corp. (Brightline Trains Florida LLC) Series 2020 7.375%, 01/01/2049(c)		500		422,084
Series 2022 2.90%, 12/01/2056 (Pre-refunded/ETM)		3,000		2,976,129

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Florida Development Finance Corp. (Cornerstone Charter Academy, Inc.) Series 2022 5.00%, 10/01/2042(c)	$	1,000	$	879,355
Florida Development Finance Corp. (Drs Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.) Series 2021 4.00%, 07/01/2051(c)		100		70,985
Florida Development Finance Corp. (IDEA Florida, Inc.) Series 2022 5.25%, 06/15/2029(c)		100		94,743
Florida Development Finance Corp. (Seaside School Consortium, Inc.) Series 2022 5.75%, 06/15/2047		1,000		977,148
Lee County Industrial Development Authority/FL (Cypress Cove at Healthpark Florida Obligated Group) Series 2022 5.25%, 10/01/2052		500		417,435
Miami-Dade County Industrial Development Authority (AcadeMir Charter School Middle & Preparatory Academy Obligated Group) Series 2022 5.50%, 07/01/2061(c)		1,000		817,395
North Broward Hospital District Series 2017-B 5.00%, 01/01/2037		100		97,455
5.00%, 01/01/2048		170		154,366
Orange County Health Facilities Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2023 4.00%, 08/01/2042(a)		250		195,410
Palm Beach County Educational Facilities Authority (Palm Beach Atlantic University Obligated Group) Series 2021 4.00%, 10/01/2041		1,000		836,108
Palm Beach County Health Facilities Authority (Federation CCRC Operations Corp. Obligated Group) Series 2022 4.25%, 06/01/2056		200		141,955

24    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Palm Beach County Health Facilities Authority (Green Cay Life Plan Village, Inc.) Series 2022 11.50%, 07/01/2027(c)	$	100	$	95,823
Palm Beach County Health Facilities Authority (Jupiter Medical Center Obligated Group) Series 2022 5.00%, 11/01/2052		2,000		1,817,417
Pinellas County Industrial Development Authority Series 2019 5.00%, 07/01/2039		505		463,180
Town of Davie FL (Nova Southeastern University, Inc.) Series 2018 5.00%, 04/01/2048		530		533,512
Village Community Development District No. 13 Series 2019 3.55%, 05/01/2039		610		454,317
Village Community Development District No. 14 Series 2022 5.50%, 05/01/2053		1,000		982,584
				17,710,129
Georgia – 1.2%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2025		145		140,778
5.00%, 07/01/2031		1,065		974,437
Main Street Natural Gas, Inc. (Citadel LP) Series 2022-C 4.00%, 08/01/2052(c)		1,000		923,521
Municipal Electric Authority of Georgia Series 2019 5.00%, 01/01/2038		100		98,644
Series 2022 5.50%, 07/01/2063		1,500		1,447,065
				3,584,445
Guam – 0.8%
Antonio B Won Pat International Airport Authority Series 2021-A 4.46%, 10/01/2043		1,000		750,769
Guam Power Authority Series 2022-A 5.00%, 10/01/2043		500		489,727

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Territory of Guam Series 2019 5.00%, 11/15/2031	$	195	$	189,427
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2021-F 5.00%, 01/01/2029		1,000		998,903
				2,428,826
Illinois – 8.0%
Chicago Board of Education Series 2012-A 5.00%, 12/01/2042		240		212,404
Series 2019-A 5.00%, 12/01/2029		100		98,075
5.00%, 12/01/2030		100		97,626
Series 2019-B 5.00%, 12/01/2033		100		95,313
Series 2021-A 5.00%, 12/01/2033		1,000		955,516
Series 2022-B 4.00%, 12/01/2041		2,000		1,571,799
Chicago O’Hare International Airport 5.50%, 01/01/2055		5,000		4,989,028
Series 2015-C 5.00%, 01/01/2034		335		332,306
Series 2017-B 5.00%, 01/01/2035		725		736,431
Series 2018-A 5.00%, 01/01/2053		1,000		934,492
Illinois Finance Authority (Clark-Lindsey Village Obligated Group) Series 2022-A 5.50%, 06/01/2057		1,000		858,097
Illinois Finance Authority (Illinois Institute of Technology) Series 2019 4.00%, 09/01/2035		100		84,041
Illinois Finance Authority (Lake Forest College) Series 2022-A 5.50%, 10/01/2047		1,000		901,536
Illinois Finance Authority (Park Place of Elmhurst Obligated Group) Series 2021 5.125%, 05/15/2060		77		52,415

26    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015-C 5.00%, 08/15/2035	$	250	$	250,133
Illinois Finance Authority (University of Chicago (The)) Series 2021-A 5.00%, 10/01/2037		2,000		2,119,718
5.00%, 10/01/2038		1,000		1,057,626
Illinois Housing Development Authority Series 2022 5.67%, 12/01/2025(c)		1,000		995,961
7.17%, 11/01/2038		100		98,227
Illinois State Toll Highway Authority Series 2021-A 4.00%, 01/01/2042		1,000		861,471
Metropolitan Pier & Exposition Authority Series 2015-B 5.00%, 12/15/2045		600		555,247
Series 2020 5.00%, 06/15/2050		640		584,967
Series 2022 4.00%, 12/15/2042		1,000		809,051
State of Illinois Series 2010 7.35%, 07/01/2035		232		237,709
Series 2013 5.50%, 07/01/2025		270		271,412
Series 2016 5.00%, 02/01/2024		375		378,158
Series 2017-D 5.00%, 11/01/2026		930		936,352
Series 2018-A 5.00%, 10/01/2027		1,000		1,003,844
Series 2019-B 5.00%, 11/01/2031		1,000		994,778
Series 2022-A 5.50%, 03/01/2047		1,000		966,918
Series 2022-C 5.50%, 10/01/2045		1,000		973,511
				25,014,162
Indiana – 1.4%
City of Valparaiso IN (Green Oaks of Valparaiso LLC) Series 2021 5.375%, 12/01/2041(c)		150		107,878

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Indiana Finance Authority Series 2013-A 5.00%, 07/01/2040 (Pre-refunded/ETM)	$	100	$	100,545
Indiana Finance Authority (Brightmark Plastics Renewal Indiana LLC) Series 2019 7.00%, 03/01/2039(c)		1,150		837,102
Indiana Finance Authority (Fulcrum Centerpoint LLC) Series 2021 0.28%, 12/15/2045		1,000		998,906
Indiana Finance Authority (Good Samaritan Hospital Obligated Group) Series 2022 5.00%, 04/01/2029		100		102,508
Indiana Finance Authority (Greencroft Goshen Obligated Group) Series 2021 4.00%, 11/15/2043		1,000		747,188
Series 2023-2 4.00%, 11/15/2037(a)		100		76,374
Indiana Finance Authority (Marquette Manor) Series 2015-A 5.00%, 03/01/2030		190		190,143
Indiana Finance Authority (Ohio Valley Electric Corp.) Series 2021-B 2.50%, 11/01/2030		165		134,924
Indiana Finance Authority (University of Evansville) Series 2022 5.25%, 09/01/2057		1,000		844,596
Indiana Housing & Community Development Authority (Vita of Marion LLC) Series 2021-B 4.00%, 04/01/2024		100		95,739
				4,235,903
Iowa – 2.5%
Iowa Finance Authority Series 2022-E 2.914% (SOFR + 0.80%), 01/01/2052(b)		5,000		4,874,035
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2022 5.00%, 12/01/2050		2,000		1,776,810

28    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018-A 5.00%, 05/15/2043	$	500	$	428,243
5.00%, 05/15/2048		325		270,813
Iowa Finance Authority (Wesley Retirement Services, Inc. Obligated Group) Series 2021 4.00%, 12/01/2031		125		110,012
4.00%, 12/01/2041		170		131,668
4.00%, 12/01/2046		115		84,141
4.00%, 12/01/2051		205		144,571
				7,820,293
Kentucky – 1.0%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) Series 2019 4.00%, 02/01/2034		385		339,364
City of Henderson KY (Pratt Paper LLC) Series 2022 3.70%, 01/01/2032(c)		325		294,449
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017-B 5.00%, 08/15/2037		175		176,868
Kentucky Economic Development Finance Authority (Carmel Manor, Inc.) Series 2022 4.50%, 10/01/2027		1,000		983,535
Kentucky Economic Development Finance Authority (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2039		160		135,274
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/2042		65		52,811

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017-A 5.00%, 06/01/2037	$	425	$	419,516
Kentucky Public Energy Authority (BP PLC) Series 2020-A 4.00%, 12/01/2050		600		584,054
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/2033		225		228,255
				3,214,126
Louisiana – 1.4%
City of New Orleans LA Water System Revenue Series 2014 5.00%, 12/01/2034 (Pre-refunded/ETM)		100		103,495
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/2036		675		682,072
Louisiana Public Facilities Authority (Geo Prep Mid-City of Greater Baton Rouge) Series 2022 6.125%, 06/01/2052(c)		1,025		933,638
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014-A 7.50%, 07/01/2023(e)(f)		250		3
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) Series 2019 5.00%, 07/01/2059		1,335		1,269,594
New Orleans Aviation Board Series 2017-B 5.00%, 01/01/2043		215		205,989
Parish of St. James LA (NuStar Logistics LP) Series 2020-2 6.35%, 07/01/2040(c)		100		105,079
State of Louisiana Gasoline & Fuels Tax Revenue Series 2022-A 2.628% (SOFR + 0.50%), 05/01/2043(b)		995		959,595
				4,259,465

30    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Maine – 0.0%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 01/01/2025(c)	$	100	$	99,569
Maryland – 3.2%
City of Baltimore MD (East Baltimore Research Park Project) Series 2017-A 5.00%, 09/01/2038		150		143,039
Maryland Economic Development Corp. (Air Cargo Obligated Group) Series 2019 4.00%, 07/01/2044		600		473,848
Maryland Economic Development Corp. (Bowie State University) Series 2020 5.00%, 07/01/2055		1,000		878,027
Maryland Economic Development Corp. (Maryland Economic Development Corp. Morgan View & Thurgood Marshall Student Hsg) Series 2022 6.00%, 07/01/2058(a)		1,000		1,011,583
Maryland Economic Development Corp. (Purple Line Transit Partners LLC) Series 2022 5.25%, 06/30/2047		1,000		977,344
5.25%, 06/30/2052		1,000		970,087
Maryland Health & Higher Educational Facilities Authority (Adventist Healthcare Obligated Group) Series 2021 5.00%, 01/01/2036		500		489,723
Maryland Stadium Authority (Baltimore City Public School Construction Financing Fund) Series 2020 5.00%, 05/01/2050		1,500		1,485,398
State of Maryland Department of Transportation Series 2022-2 5.00%, 12/01/2023(a)		3,500		3,566,336
				9,995,385
Massachusetts – 1.9%
Boston Water & Sewer Commission Series 2012-A 4.00%, 11/01/2025 (Pre-refunded/ETM)		2,950		2,950,000

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Commonwealth of Massachusetts AGC Series 2007-A 2.434% (LIBOR 3 Month + 0.57%), 05/01/2037(b)	$	1,300	$	1,225,124
Commonwealth of Massachusetts Transportation Fund Revenue Series 2021 5.00%, 06/01/2041		1,000		1,051,758
Massachusetts Development Finance Agency (Merrimack College) Series 2014 5.125%, 07/01/2044		620		616,984
				5,843,866
Michigan – 0.8%
City of Detroit MI Series 2014-B 4.00%, 04/01/2044		245		168,938
Series 2018 5.00%, 04/01/2038		75		72,808
Series 2021-B 3.644%, 04/01/2034		200		157,640
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) AGM Series 2006-D 3.108% (LIBOR 3 Month + 0.60%), 07/01/2032(b)		1,000		961,400
Michigan Finance Authority (Michigan Finance Authority Tobacco Settlement Revenue) Series 2020-A 3.267%, 06/01/2039		1,000		788,543
Michigan Tobacco Settlement Finance Authority (Tobacco Settlement Financing Corp./MI) Series 2008-C Zero Coupon, 06/01/2058		7,750		305,691
				2,455,020
Minnesota – 0.1%
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) Series 2019 5.00%, 08/01/2049		105		94,302

32    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Duluth Economic Development Authority (Benedictine Health System Obligated Group) Series 2021 4.00%, 07/01/2036	$	100	$	83,670
4.00%, 07/01/2041		100		78,861
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Minnesota Math & Science Academy) Series 2021 4.00%, 06/01/2051(c)		100		64,191
4.00%, 06/01/2056(c)		100		62,007
				383,031
Mississippi – 0.3%
Mississippi Development Bank (Magnolia Regional Health Center) Series 2021 4.00%, 10/01/2035(c)		1,000		822,344
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016-A 5.00%, 09/01/2036		250		244,247
				1,066,591
Missouri – 0.1%
Kansas City Industrial Development Authority Series 2019 5.00%, 07/01/2040(c)		185		149,738
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2021-A 5.00%, 08/15/2056		300		235,019
				384,757
Nevada – 0.5%
City of Reno NV (County of Washoe NV Sales Tax Revenue) Series 2018-C Zero Coupon, 07/01/2058(c)		2,000		203,603
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019-A 2.75%, 06/15/2028(c)		525		454,130
Clark County School District Series 2021-A 4.00%, 06/15/2034		1,000		980,698
				1,638,431

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Hampshire – 0.9%
National Finance Authority (New Hampshire Business Finance Authority) Series 2022-2, Class X 0.674%, 10/01/2036(d)	$	1,000	$	51,704
New Hampshire Business Finance Authority Series 2020-1, Class A 4.125%, 01/20/2034		207		190,511
Series 2022-1, Class A 4.375%, 09/20/2036		1,992		1,797,743
Series 2022-2 0.334%, 09/20/2036		1,000		23,428
Series 2022-2, Class A 4.00%, 10/20/2036		999		864,866
				2,928,252
New Jersey – 3.4%
Essex County Improvement Authority (Friends of TEAM Academy Charter School Obligated Group) Series 2021 4.00%, 06/15/2051		1,100		834,434
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2019 5.25%, 04/01/2026		1,000		1,040,138
New Jersey Economic Development Authority (United Airlines, Inc.) Series 2012 5.25%, 09/15/2029		210		206,329
New Jersey Educational Facilities Authority (Stevens Institute of Technology International, Inc.) Series 2020-A 5.00%, 07/01/2045		100		95,966
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017-A 5.00%, 07/01/2036		280		282,290
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		550		565,763

34    ^|    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	$	340,232
Series 2022-A 5.00%, 06/15/2033		1,000		1,025,241
New Jersey Turnpike Authority Series 2017-B 5.00%, 01/01/2032		540		569,304
Series 2020-D 5.00%, 01/01/2028		1,350		1,417,426
South Jersey Transportation Authority BAM Series 2022 5.25%, 11/01/2052		1,000		1,014,442
Tobacco Settlement Financing Corp./NJ Series 2018-B 5.00%, 06/01/2046		3,500		3,213,854
				10,605,419
New Mexico – 0.5%
New Mexico Hospital Equipment Loan Council (Haverland Carter Lifestyle Obligated Group) Series 2019 5.00%, 07/01/2049		1,000		770,659
Winrock Town Center Tax Increment Development District No. 1 Series 2022 3.75%, 05/01/2028(c)		867		792,383
				1,563,042
New York – 10.9%
Build NYC Resource Corp. (Integration Charter Schools) Series 2021 5.00%, 06/01/2056(c)		400		335,512
Metropolitan Transportation Authority Series 2020-A 5.00%, 11/15/2045		1,000		1,023,936
Series 2020-C 5.00%, 11/15/2050		1,000		902,573
Series 2020-E 4.00%, 11/15/2026		1,155		1,134,818
Series 2021-D 2.367% (SOFR + 0.33%), 11/01/2035(b)		900		873,533

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Monroe County Industrial Development Corp./NY (St. Ann’s of Greater Rochester Obligated Group) Series 2019 5.00%, 01/01/2040	$	550	$	445,771
Monroe County Industrial Development Corp/NY (Academy of Health Sciences Charter School) Series 2022 6.00%, 07/01/2057(c)		1,000		902,356
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		915,870
New York Counties Tobacco Trust V Series 2005 Zero Coupon, 06/01/2050		350		39,397
New York State Dormitory Authority (Garnet Health Medical Center Obligated Group) Series 2017 5.00%, 12/01/2034(c)		200		192,338
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014-A 5.00%, 02/15/2028		425		432,959
Series 2022-A 4.00%, 03/15/2042		2,000		1,766,136
New York State Dormitory Authority (Wagner College) Series 2022 5.00%, 07/01/2057		2,000		1,750,191
New York State Thruway Authority (State of New York Pers Income Tax) Series 2022-A 5.00%, 03/15/2039		2,000		2,094,387
New York Transportation Development Corp. (Delta Air Lines, Inc.) Series 2018 4.00%, 01/01/2036		275		239,925
Series 2020 4.375%, 10/01/2045		2,000		1,656,566
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016-A 5.00%, 07/01/2041		150		140,101

36    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Triborough Bridge & Tunnel Authority (Metropolitan Transportation Authority Payroll Mobility Tax Revenue) Series 2021-A 2.917%, 05/15/2040	$	500	$	343,751
4.00%, 05/15/2046		1,000		858,668
Series 2022 5.00%, 05/15/2030		2,000		2,201,553
Series 2022-A 5.00%, 08/15/2024		5,000		5,153,324
Series 2022-E 3.025%, 04/01/2026(a)		10,000		10,000,000
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 09/15/2037		120		94,099
Westchester County Local Development Corp. (Purchase Senior Learning Community Obligated Group) Series 2021 2.875%, 07/01/2026(c)		250		237,653
Western Regional Off-Track Betting Corp. Series 2021 4.125%, 12/01/2041(c)		100		71,639
				33,807,056
North Carolina – 0.5%
Fayetteville State University Series 2023 5.00%, 04/01/2038(a)(c)		1,045		1,031,879
North Carolina Turnpike Authority Series 2017 5.00%, 01/01/2032		500		502,192
				1,534,071
North Dakota – 0.0%
County of Grand Forks ND (Red River Biorefinery LLC) Series 2021 6.625%, 12/15/2031(c)		100		58,767
Ohio – 2.5%
American Municipal Power, Inc. Series 2020 4.00%, 02/15/2044		1,000		829,001
Buckeye Tobacco Settlement Financing Authority Series 2020-B 5.00%, 06/01/2055		3,995		3,362,329

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2047	$	175	$	166,891
Cleveland-Cuyahoga County Port Authority (Cleveland-Cuyahoga County Port Authority Flats East Bank TIF District) Series 2021 4.00%, 12/01/2055(c)		500		363,423
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2042		205		196,541
County of Cuyahoga/OH (County of Cuyahoga OH Lease) Series 2014 5.00%, 12/01/2028		365		371,044
County of Marion OH (United Church Homes, Inc. Obligated Group) Series 2019 5.125%, 12/01/2049		100		83,358
County of Montgomery OH (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(c)(e)(g)		100		37,600
County of Washington OH (Marietta Area Health Care, Inc. Obligated Group) Series 2022 6.625%, 12/01/2042		1,000		901,902
Jefferson County Port Authority/OH (JSW Steel USA Ohio, Inc.) Series 2021 3.50%, 12/01/2051(c)		1,000		646,027
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) Series 2019 3.25%, 09/01/2029		580		515,902
Ohio Air Quality Development Authority (Pratt Paper OH, Inc.) Series 2017 4.25%, 01/15/2038(c)		185		161,717
Port of Greater Cincinnati Development Authority Series 2021 4.375%, 06/15/2056		100		90,524
				7,726,259

38    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Oklahoma – 1.3%
Norman Regional Hospital Authority (Norman Regional Hospital Authority Obligated Group) Series 2019 3.25%, 09/01/2039	$	505	$	342,492
Oklahoma Development Finance Authority (Oklahoma City University Obligated Group) Series 2019 5.00%, 08/01/2049		1,180		1,029,726
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2018-B 5.25%, 08/15/2043		1,000		838,550
5.50%, 08/15/2052		1,000		818,238
Series 2022-A 5.50%, 08/15/2044		1,000		867,302
				3,896,308
Oregon – 0.3%
Clackamas County Hospital Facility Authority (Rose Villa, Inc. Obligated Group) Series 2020-A 5.375%, 11/15/2055		1,000		843,090
Other – 0.1%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(c)		375		301,625
Pennsylvania – 4.0%
Allegheny County Airport Authority Series 2021-A 4.00%, 01/01/2037		2,000		1,756,587
Allentown Neighborhood Improvement Zone Development Authority Series 2022 5.25%, 05/01/2042(c)		500		435,507
Berks County Municipal Authority (The) (Tower Health Obligated Group) Series 2020-B 5.00%, 02/01/2040		1,000		893,624
Bucks County Industrial Development Authority (Grand View Hospital/Sellersville PA Obligated Group) Series 2021 4.00%, 07/01/2051		1,000		661,163
5.00%, 07/01/2054		250		200,553

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Chester County Industrial Development Authority (Collegium Charter School) Series 2022 5.625%, 10/15/2042(c)	$	250	$	230,177
Lancaster County Hospital Authority/PA (St Anne’s Retirement Community Obligated Group) Series 2020 5.00%, 03/01/2040		1,000		841,630
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2022 5.00%, 05/01/2057		2,000		1,862,426
Moon Industrial Development Authority (Baptist Homes Society Obligated Group) Series 2015 6.125%, 07/01/2050		1,000		814,819
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 07/01/2035		100		87,021
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019 3.25%, 08/01/2039(c)		510		359,221
Pennsylvania Economic Development Financing Authority (Iron Cumberland LLC) Series 2022 7.00%, 12/01/2029		1,000		949,733
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/2038		100		95,002
Pennsylvania Economic Development Financing Authority (UPMC Obligated Group) Series 2022-C 2.94% (MUNIPSA + 0.70%), 11/15/2047(b)		1,000		968,621
Pennsylvania Turnpike Commission Series 2017-B 5.00%, 06/01/2036		200		201,633

40    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Philadelphia Authority for Industrial Development (MaST Community Charter School III) Series 2021 5.00%, 08/01/2054	$	100	$	88,128
Philadelphia Authority for Industrial Development (Philadelphia Performing Arts Charter School) Series 2020 5.00%, 06/15/2040(c)		800		712,865
School District of Philadelphia (The) Series 2019-A 5.00%, 09/01/2044(h)		1,350		1,351,299
				12,510,009
Puerto Rico – 3.5%
Children’s Trust Fund  Series 2008-A Zero Coupon, 05/15/2057		2,600		142,247
Series 2008-B Zero Coupon, 05/15/2057		5,000		214,760
Commonwealth of Puerto Rico Series 2021-A Zero Coupon, 07/01/2024		41		37,489
Zero Coupon, 07/01/2033		779		395,672
4.00%, 07/01/2033		2,623		2,219,734
4.00%, 07/01/2035		111		90,559
4.00%, 07/01/2037		95		75,642
4.00%, 07/01/2041		129		98,314
4.00%, 07/01/2046		134		97,558
5.25%, 07/01/2023		69		68,938
5.375%, 07/01/2025		242		242,152
5.625%, 07/01/2027		286		288,059
5.625%, 07/01/2029		284		285,481
5.75%, 07/01/2031		270		271,621
Series 2022-A 5.06%, 11/01/2051		2,695		1,148,744
Series 2022-C 0.01%, 11/01/2043		3,135		1,430,344
GDB Debt Recovery Authority of Puerto Rico Series 2018 7.50%, 08/20/2040		118		101,755
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series 2008-A 6.125%, 07/01/2024		60		60,777
Puerto Rico Electric Power Authority Series 2007-T 5.00%, 07/01/2032(e)(g)		85		63,750
5.00%, 07/01/2037(e)(g)		245		183,750

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2008-W 5.00%, 07/01/2028(e)(g)	$	245	$	183,750
Series 2008-WW 5.375%, 07/01/2024(e)(g)		125		93,906
Series 2010-A 5.25%, 07/01/2029(e)(g)		100		75,000
5.25%, 07/01/2030(e)(g)		15		11,250
Series 2010-C 5.00%, 07/01/2024(e)(g)		25		18,750
5.25%, 07/01/2028(e)(g)		175		131,250
Series 2010-DDD 5.00%, 07/01/2021(g)(i)		15		11,213
Series 2010-X 5.25%, 07/01/2040(e)(g)		340		255,000
5.75%, 07/01/2036(e)(g)		125		94,687
Series 2010-ZZ 5.25%, 07/01/2024(e)(g)		40		30,000
Series 2012-A 5.00%, 07/01/2029(e)(g)		50		37,500
5.00%, 07/01/2042(e)(g)		10		7,500
AGM Series 2007-V 5.25%, 07/01/2031		375		368,908
Puerto Rico Highway & Transportation Authority AGC Series 2005-L 5.25%, 07/01/2041		125		120,128
AGC Series 2007-N 5.25%, 07/01/2036		110		106,421
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) Series 2000 6.625%, 06/01/2026		350		362,464
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018-A Zero Coupon, 07/01/2024		6		5,509
Zero Coupon, 07/01/2027		17		13,238
Zero Coupon, 07/01/2029		17		11,792
Zero Coupon, 07/01/2046		2,111		457,147
Series 2019-A 4.329%, 07/01/2040		440		369,030
5.00%, 07/01/2058		867		743,442
				11,025,231

42    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
South Carolina – 0.6%
Columbia Housing Authority/SC Series 2022 4.80%, 11/01/2024	$	150	$	145,115
5.26%, 11/01/2032		100		93,639
5.41%, 11/01/2039		310		279,670
6.28%, 11/01/2039		100		89,743
South Carolina Jobs-Economic Development Authority (Last Step Recycling LLC) Series 2021 6.25%, 06/01/2040(c)		100		72,404
6.50%, 06/01/2051(c)		300		206,341
South Carolina Jobs-Economic Development Authority (PSG Patriot’s Place Apartments LLC) Series 2022 Zero Coupon, 06/01/2052		415		253,327
South Carolina Public Service Authority Series 2016-A 5.00%, 12/01/2036		265		264,650
Series 2022 4.00%, 12/01/2046		329		270,723
4.00%, 12/01/2049		220		178,330
				1,853,942
Tennessee – 0.8%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016-A 5.00%, 12/01/2035(c)		370		339,092
5.125%, 12/01/2042(c)		1,000		893,495
Series 2016-B Zero Coupon, 12/01/2031(c)		150		88,713
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2037		30		26,080
4.00%, 08/01/2038		100		85,470
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trevecca Nazarene University) Series 2021 4.00%, 10/01/2051		250		180,272

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group) Series 2018-A 6.25%, 04/01/2049(c)(e)(g)	$	135	$	50,760
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group) Series 2016 5.00%, 07/01/2035		215		216,037
Metropolitan Government Nashville & Davidson County Industrial Development Board (South Nashville Central Business Improvement District) Series 2021 Zero Coupon, 06/01/2043(c)		1,000		277,881
4.00%, 06/01/2051(c)		100		72,721
Wilson County Health & Educational Facilities Board Series 2021 4.00%, 12/01/2039		200		142,796
4.25%, 12/01/2024		200		186,407
				2,559,724
Texas – 4.9%
Abilene Convention Center Hotel Development Corp. (City of Abilene TX Abilene Convention Center Revenue) Series 2021-A 4.00%, 10/01/2050		250		200,251
Series 2021-B 5.00%, 10/01/2050(c)		200		156,763
Arlington Higher Education Finance Corp. (BASIS Texas Charter Schools, Inc.) Series 2021 4.50%, 06/15/2056(c)		500		471,704
Austin Convention Enterprises, Inc. Series 2017-A 5.00%, 01/01/2034		500		488,493
Baytown Municipal Development District (Baytown Municipal Development District Hotel Occupancy Tax) Series 2021 5.00%, 10/01/2050(c)		400		307,378

44    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Brazoria County Industrial Development Corp. (Aleon Renewable Metals LLC) Series 2022 10.00%, 06/01/2042(c)	$	500	$	490,154
Central Texas Regional Mobility Authority Series 2013 5.00%, 01/01/2042 (Pre-refunded/ETM)		100		100,277
Series 2021-B 5.00%, 01/01/2046		1,000		954,888
Series 2021-C 5.00%, 01/01/2027		1,000		1,025,718
City of Houston TX (City of Houston TX Hotel Occupancy Tax) Series 2015 5.00%, 09/01/2031		160		161,693
City of San Antonio TX Electric & Gas Systems Revenue Series 2021-A 5.00%, 02/01/2046		1,000		1,014,695
Conroe Local Government Corp. (Conroe Local Government Corp. Conroe Convention Center Hotel) Series 2021 4.00%, 10/01/2046		1,000		849,723
Dallas Area Rapid Transit Series 2014-A 5.00%, 12/01/2025 (Pre-refunded/ETM)		580		600,273
Dallas County Flood Control District No. 1 Series 2015 5.00%, 04/01/2028(c)		100		98,024
Decatur Hospital Authority Series 2021 4.00%, 09/01/2044		1,000		750,563
Hidalgo County Regional Mobility Authority Series 2022-A 4.00%, 12/01/2037		1,600		1,404,017
Series 2022-B Zero Coupon, 12/01/2042		1,400		422,998
Love Field Airport Modernization Corp. (Dallas Love Field) Series 2015 5.00%, 11/01/2032		500		501,970
Mission Economic Development Corp. (Natgasoline LLC) Series 2018 4.625%, 10/01/2031(c)		450		423,435

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group) Series 2020 5.00%, 01/01/2055	$	100	$	77,880
Series 2022 4.00%, 01/01/2047		100		67,622
5.00%, 01/01/2057		200		151,167
New Hope Cultural Education Facilities Finance Corp. (Outlook at Windhaven Forefront Living Obligated Group) Series 2022 6.875%, 10/01/2057		1,000		900,427
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) Series 2020 4.00%, 01/01/2050(c)		100		68,203
Series 2021 2.625%, 01/01/2031(c)		300		229,643
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.) Series 2015-A 5.00%, 11/15/2025(e)(g)		675		270,000
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way) Series 2020-A 5.75%, 12/01/2054		456		326,281
Tarrant County Cultural Education Facilities Finance Corp. (Trinity Terrace Project) Series 2014-A1 5.00%, 10/01/2044		100		92,451
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC) Series 2019 5.00%, 06/30/2058		3,000		2,668,542
				15,275,233
Utah – 0.7%
City of Salt Lake City UT Airport Revenue Series 2018-A 5.00%, 07/01/2048(h)		1,000		951,595

46    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Military Installation Development Authority Series 2021-A 4.00%, 06/01/2052	$	500	$	344,561
Utah Infrastructure Agency Series 2022 5.00%, 10/15/2046		1,000		888,689
				2,184,845
Vermont – 0.2%
Vermont Economic Development Authority (Casella Waste Systems, Inc.) Series 2022 5.00%, 06/01/2052(c)		500		481,947
Virginia – 2.2%
Align Affordable Housing Bond Fund LP (Park Landing LP) Series 2022-2 5.66%, 08/01/2052		221		188,584
Halifax County Industrial Development Authority (Virginia Electric and Power Co.) Series 2022 1.65%, 12/01/2041		2,000		1,928,463
Henrico County Economic Development Authority (Westminster-Canterbury Corp. Obligated Group) Series 2022 5.00%, 10/01/2047		1,000		982,200
Tobacco Settlement Financing Corp./VA Series 2007-B1 5.00%, 06/01/2047		165		143,731
Virginia Small Business Financing Authority (95 Express Lanes LLC) Series 2022 4.00%, 01/01/2048		1,000		757,977
Virginia Small Business Financing Authority (Elizabeth River Crossings OpCo LLC) Series 2022 4.00%, 01/01/2034		2,000		1,805,725
Virginia Small Business Financing Authority (Total Fiber Recovery @ Chesapeake LLC) Series 2022 6.50%, 06/01/2029(c)		530		497,338
8.50%, 06/01/2042(c)		615		550,250
				6,854,268

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington – 2.2%
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 01/01/2044	$	280	$	268,956
Port of Seattle WA Series 2015-C 5.00%, 04/01/2033		510		516,730
Series 2021 4.00%, 08/01/2040		1,000		853,778
Spokane County School District No. 81 Spokane Series 2012 3.00%, 12/01/2031		1,000		893,294
State of Washington Series 2021-A 5.00%, 08/01/2044		2,000		2,091,833
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		202,764
Washington State Housing Finance Commission Series 2021-1, Class A 3.50%, 12/20/2035		279		235,921
Washington State Housing Finance Commission Series 2021-1, Class X 0.725%, 12/20/2035(d)		981		49,359
Washington State Housing Finance Commission (Presbyterian Retirement Communities Northwest Obligated Group) Series 2013 5.25%, 01/01/2043(c)		1,000		841,763
Series 2019-A 5.00%, 01/01/2055(c)		1,000		742,433
Washington State Housing Finance Commission (Rockwood Retirement Communities) Series 2014-A 7.375%, 01/01/2044(c)		200		200,293
				6,897,124
West Virginia – 0.2%
City of South Charleston WV (City of South Charleston WV South Charleston Park Place Excise Tax District) Series 2022 4.25%, 06/01/2042(c)		250		184,347

48    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035	$	393	$	361,495
				545,842
Wisconsin – 3.1%
St. Croix Chippewa Indians of Wisconsin Series 2021 5.00%, 09/30/2041(c)		200		146,818
UMA Education, Inc. Series 2019 5.00%, 10/01/2025(c)		100		98,930
5.00%, 10/01/2027(c)		130		127,064
5.00%, 10/01/2029(c)		100		96,385
Wisconsin Center District (Wisconsin Center District Ded Tax) Series 2022 5.25%, 12/15/2061(c)		200		179,270
Wisconsin Health & Educational Facilities Authority (Oakwood Lutheran Senior Ministries Obligated Group) Series 2021 4.00%, 01/01/2047		100		71,641
4.00%, 01/01/2057		1,000		668,515
Wisconsin Health & Educational Facilities Authority (St. Camillus Health System Obligated Group) Series 2019 5.00%, 11/01/2054		100		77,173
Wisconsin Health & Educational Facilities Authority (St. John’s Communities, Inc. Obligated Group) Series 2022 4.00%, 09/15/2036		775		651,809
4.00%, 09/15/2041		765		610,512
4.00%, 09/15/2045		650		493,335
Wisconsin Housing & Economic Development Authority (Roers Sun Prairie Apartments Owner LLC) Series 2022 4.625%, 03/15/2040(c)		100		81,449
Series 2022-A 3.875%, 12/01/2039(c)		460		370,613
Wisconsin Public Finance Authority Series 2022 6.00%, 02/01/2062(c)		1,000		859,113

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wisconsin Public Finance Authority (21st Century Public Academy) Series 2020 3.75%, 06/01/2030(c)	$	350	$	302,581
Wisconsin Public Finance Authority (Catholic Bishop of Chicago (The)) Series 2021 5.75%, 07/25/2041(c)		1,000		854,842
Wisconsin Public Finance Authority (Celanese US Holdings LLC) Series 2016-C 4.30%, 11/01/2030		100		96,325
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.) Series 2017-A 5.25%, 05/15/2042(c)		130		112,419
Wisconsin Public Finance Authority (McLemore Resort Manager LLC) Series 2021 4.50%, 06/01/2056(c)		295		197,493
Wisconsin Public Finance Authority (Queens University of Charlotte) Series 2022 5.25%, 03/01/2042		1,000		935,964
Wisconsin Public Finance Authority (Samaritan Housing Foundation Obligated Group) Series 2021 4.00%, 06/01/2056(c)		500		298,835
Series 2022 4.00%, 06/01/2049(c)		100		63,422
Wisconsin Public Finance Authority (Southeastern Regional Medical Center Obligated Group) Series 2022 4.00%, 02/01/2034		1,300		1,159,797
Wisconsin Public Finance Authority (Uwharrie Charter Academy) Series 2022 5.00%, 06/15/2062(c)		500		394,312
Wisconsin Public Finance Authority (Washoe Barton Medical Clinic) Series 2021 4.00%, 12/01/2051		1,000		725,514
				9,674,131
Total Long-Term Municipal Bonds (cost $317,125,040)				275,961,627

50    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Short-Term Municipal Notes – 12.9%
California – 0.1%
California Infrastructure & Economic Development Bank (Goodwill Industries of Orange County) Series 2006 2.15%, 03/01/2031(j)	$	275	$	275,000
Colorado – 0.2%
Colorado Educational & Cultural Facilities Authority (Mandel Jewish Community Center of Cleveland (The)) 1.64%, 09/01/2038(j)		500		500,000
District of Columbia – 0.8%
District of Columbia (Georgetown University (The)) Series 2016 2.23%, 04/01/2041(j)		1,390		1,390,000
District of Columbia (MedStar Health Obligated Group) 1.64%, 08/15/2038(j)		250		250,000
Series 2012-A 2.21%, 08/15/2038(j)		845		845,000
				2,485,000
Florida – 1.0%
County of Palm Beach FL (Raymond F Kravis Center for the Performing Arts, Inc. (The)) Series 2002 2.28%, 07/01/2032(j)		2,650		2,650,000
Orange County Health Facilities Authority (Nemours Foundation/Florida) Series 2017-C 2.20%, 01/01/2039(j)		580		580,000
				3,230,000
Georgia – 1.6%
Cobb County School District Series 2022 3.00%, 12/15/2022		5,000		4,999,877
Idaho – 0.5%
Idaho Health Facilities Authority (St Luke’s Health System Ltd. Obligated Group/ID) Series 2018-C 1.64%, 03/01/2048(j)		1,675		1,675,000

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois – 0.7%
Illinois Educational Facilities Authority (Lincoln Park Society (The)) Series 1999 2.30%, 01/01/2029(j)	$	300	$	300,000
Illinois Finance Authority (Illinois College) Series 2005 2.23%, 10/01/2030(j)		1,325		1,325,000
Illinois Finance Authority (Latin School of Chicago (The)) Series 2005-B 2.25%, 08/01/2035(j)		385		385,000
Village of Brookfield IL (Chicago Zoological Society (The)) Series 2008 2.25%, 06/01/2038(j)		275		275,000
				2,285,000
Iowa – 0.2%
Iowa Finance Authority (Iowa Health System Obligated Group) 1.60%, 07/01/2041(j)		500		500,000
Kentucky – 0.1%
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016-A 2.23%, 10/01/2039(j)		235		235,000
Louisiana – 1.3%
Louisiana Public Facilities Authority (ANF Partners #1 LP) Series 2006 2.21%, 04/01/2036(j)		300		300,000
Louisiana Public Facilities Authority (CHRISTUS Health Obligated Group) Series 2009 2.23%, 07/01/2047(j)		2,000		2,000,000
2.25%, 07/01/2047(j)		1,655		1,655,000
				3,955,000
Maryland – 0.1%
Maryland Health & Higher Educational Facilities Authority Series 2014-A 2.23%, 04/01/2035(j)		400		400,000

52    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Massachusetts – 0.2%
Massachusetts Development Finance Agency (Trustees of The College of The Holy Cross) Series 2018 1.64%, 09/01/2037(j)	$	500	$	500,000
Minnesota – 0.1%
City of Minneapolis MN/St Paul Housing & Redevelopment Authority (Allina Health Obligated Group) Series 2009-B 1.62%, 11/15/2035(j)		300		300,000
New Jersey – 1.1%
Essex County Improvement Authority (Jewish Community Center of MetroWest, Inc.) Series 2005 2.25%, 07/01/2025(j)		2,165		2,165,000
New Jersey Health Care Facilities Financing Authority (AHS Hospital Corp.) Series 2008-C 2.23%, 07/01/2036(j)		1,000		1,000,000
New Jersey Health Care Facilities Financing Authority (Virtua Health Obligated Group) Series 2009-C 1.27%, 07/01/2043(j)		325		325,000
				3,490,000
New York – 1.4%
New York City Health and Hospitals Corp. Series 2008-E 2.20%, 02/15/2026(j)		1,635		1,635,000
New York City Housing Development Corp. (2 Gold LLC) Series 2008-A 2.20%, 04/15/2036(j)		900		900,000
New York City Housing Development Corp. (BCRE-90 West Street LLC) Series 2006A 2.20%, 03/15/2036(j)		355		355,000
New York City Municipal Water Finance Authority Series 2015-F 1.63%, 06/15/2035(j)		1,500		1,500,000
				4,390,000

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio – 0.5%
Columbus Regional Airport Authority Series 2005 2.23%, 07/01/2035(j)	$	1,465	$	1,465,000
Oregon – 0.1%
Oregon State Facilities Authority (PeaceHealth Obligated Group) 1.64%, 08/01/2034(j)		350		350,000
Rhode Island – 0.5%
Rhode Island Health and Educational Building Corp. (Roger Williams University) Series 2012-B 2.25%, 11/15/2038(j)		1,675		1,675,000
South Carolina – 0.1%
South Carolina Jobs-Economic Development Authority (PSG Patriot’s Place Apartments LLC) Series 2022 6.00%, 06/01/2023		235		232,215
Vermont – 0.2%
Washington State Housing Finance Commission (Bitter Lake Village Associates 2 LP) Series 2009 2.22%, 12/15/2044(j)		690		690,000
Virginia – 1.0%
Loudoun County Economic Development Authority (Jack Kent Cooke Foundation) Series 2004 2.26%, 06/01/2034(j)		2,050		2,050,000
Roanoke Economic Development Authority (Carilion Clinic Obligated Group) Series 2020 2.22%, 07/01/2052(j)		1,010		1,010,000
				3,060,000
Washington – 0.8%
Washington State Housing Finance Commission (Panorama/United States) Series 2008 2.30%, 04/01/2043(j)		2,250		2,250,000

54    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Washington State Housing Finance Commission (West Valley Nursing Homes, Inc.) Series 2000 2.30%, 10/01/2031(j)	$	250	$	250,000
				2,500,000
Wisconsin – 0.3%
Wisconsin Health & Educational Facilities Authority (Medical College of Wisconsin, Inc.) Series 2008-B 1.64%, 12/01/2033(j)		1,000		1,000,000
Total Short-Term Municipal Notes (cost $40,208,100)				40,192,092
Total Municipal Obligations (cost $357,333,140)				316,153,719
CORPORATES - NON-INVESTMENT GRADE – 1.2%
Industrial – 1.2%
Banks – 0.0%
UMB Financial Corp. 10.00%, 01/01/2049(k)(l)		89		88,333
Communications - Media – 0.2%
CCO Holdings LLC/CCO Holdings Capital Corp. 4.25%, 01/15/2034(c)		309		226,899
DISH DBS Corp. 5.25%, 12/01/2026(c)		240		208,385
5.75%, 12/01/2028(c)		250		201,772
				637,056
Communications -Telecommunications – 0.0%
Intelsat Jackson Holdings SA Zero Coupon, 08/01/2023(k)(l)		275		– 0	–
Consumer Cyclical - Entertainment – 0.7%
Carnival Corp. 4.00%, 08/01/2028(c)		400		322,748
Royal Caribbean Cruises Ltd. 8.25%, 01/15/2029(c)		725		722,702
Wild Rivers Water Park 8.50%, 11/01/2051		1,225		1,059,625
				2,105,075

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.1%
Medline Borrower LP 3.875%, 04/01/2029(c)	$	350	$	285,880
Services – 0.0%
Trousdale Issuer LLC Series A 6.50%, 04/01/2025(e)(g)(k)		200		75,200
Transportation - Airlines – 0.1%
American Airlines, Inc./AAdvantage Loyalty IP Ltd. 5.50%, 04/20/2026(c)		155		147,721
5.75%, 04/20/2029(c)		165		150,150
United Airlines, Inc. 4.375%, 04/15/2026(c)		150		137,242
				435,113
Utility – 0.1%
Vistra Corp. 7.00%, 12/15/2026(c)(m)		225		199,960
Total Corporates - Non-Investment Grade (cost $4,279,092)				3,826,617
CORPORATES - INVESTMENT GRADE – 1.0%
Financial Institutions – 0.5%
Banking – 0.2%
Bank of America Corp. Series JJ 5.125%, 06/20/2024(m)		100		93,998
Bank of New York Mellon Corp. (The) Series H 3.70%, 03/20/2026(m)		100		87,834
Comerica, Inc. 5.625%, 07/01/2025(m)		100		96,972
Fifth Third Bancorp Series L 4.50%, 09/30/2025(m)		100		92,154
Huntington Bancshares, Inc./OH Series F 5.625%, 07/15/2030(m)		100		91,005
JPMorgan Chase & Co. Series Q 5.15%, 05/01/2023(m)		50		48,680
Truist Financial Corp. Series Q 5.10%, 03/01/2030(m)		100		87,921

56    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Wells Fargo & Co. Series BB 3.90%, 03/15/2026(m)	$	100	$	84,888
				683,452
Finance – 0.2%
Air Lease Corp. 3.625%, 04/01/2027		600		528,720
Insurance – 0.1%
Centene Corp. 4.25%, 12/15/2027		232		214,025
Prudential Financial, Inc. 5.625%, 06/15/2043		215		212,441
				426,466
Industrial – 0.5%
Consumer Cyclical - Entertainment – 0.2%
YMCA of Greater New York 2.303%, 08/01/2026		1,000		880,230
Consumer Cyclical - Other – 0.2%
Las Vegas Sands Corp. 3.20%, 08/08/2024		600		570,588
Consumer Non-Cyclical – 0.1%
Newell Brands, Inc. 4.45%, 04/01/2026		173		160,899
4.875%, 06/01/2025		18		17,366
				178,265
				1,629,083
Total Corporates - Investment Grade (cost $3,723,948)				3,267,721
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.2%
Risk Share Floating Rate – 0.2%
Bellemeade Re Ltd. Series 2019-3A, Class M1B 5.186% (LIBOR 1 Month + 1.60%), 07/25/2029(b)(c)		52		52,375
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C01, Class M2 7.986% (LIBOR 1 Month + 4.40%), 01/25/2024(b)		80		80,935

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2014-C03, Class 2M2 6.486% (LIBOR 1 Month + 2.90%), 07/25/2024(b)	$	31	$	30,801
Series 2015-C02, Class 1M2 7.586% (LIBOR 1 Month + 4.00%), 05/25/2025(b)		35		35,037
Series 2016-C01, Class 1M2 10.336% (LIBOR 1 Month + 6.75%), 08/25/2028(b)		91		94,867
Series 2016-C02, Class 1M2 9.586% (LIBOR 1 Month + 6.00%), 09/25/2028(b)		108		111,608
Series 2017-C04, Class 2M2 6.436% (LIBOR 1 Month + 2.85%), 11/25/2029(b)		187		188,711
Total Collateralized Mortgage Obligations (cost $585,209)				594,334
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.2%
Agency CMBS – 0.0%
California Housing Finance Agency Series 2021-3, Class X 0.764%, 08/20/2036(d)		986		58,850
Non-Agency Floating Rate CMBS – 0.2%
BAMLL Commercial Mortgage Securities Trust  Series 2017-SCH, Class AF 4.413% (LIBOR 1 Month + 1.00%), 11/15/2033(b)(c)		250		227,602
DBWF Mortgage Trust  Series 2018-GLKS, Class A 4.51% (LIBOR 1 Month + 1.03%), 12/19/2030(b)(c)		275		263,807
Total Commercial Mortgage-Backed Securities (cost $595,683)				550,259
ASSET-BACKED SECURITIES – 0.2%
Autos - Fixed Rate – 0.1%
CPS Auto Receivables Trust  Series 2021-B, Class C 1.23%, 03/15/2027(c)		250		240,840

58    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Other ABS - Fixed Rate – 0.1%
Affirm Asset Securitization Trust  Series 2021-Z1, Class A 1.07%, 08/15/2025(c)	$	145	$	140,849
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(c)		197		157,989
Total Asset-Backed Securities (cost $592,309)				539,678
COLLATERALIZED LOAN OBLIGATIONS – 0.1%
CLO - Floating Rate – 0.1%
THL Credit Wind River CLO Ltd. Series 2014-2A, Class AR 5.219% (LIBOR 3 Month + 1.14%), 01/15/2031(b)(c) (cost $250,000)		250		243,164
	Shares
COMMON STOCKS – 0.0%
Communication Services – 0.0%
Diversified Telecommunication Services – 0.0%
Intelsat Jackson Holdings SA(g)(k)(l)		538		– 0	–
Intelsat SA/Luxembourg(g)		2,571		64,275
Total Common Stocks (cost $219,617)				64,275
SHORT-TERM INVESTMENTS – 0.2%
Investment Companies – 0.2%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(n)(o)(p) (cost $563,535)		563,535		563,535
Total Investments – 104.7% (cost $368,142,533)				325,803,302
Other assets less liabilities – (4.7)%				(14,758,324	)
Net Assets – 100.0%			$	311,044,978

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
CDX-NAIG Series 39, 5 Year Index, 12/20/2027*		1.00	%		Quarterly		0.90	%		USD	15,000	$	83,601		$	8,345		$	75,256
CDX-NAHY Series 39, 5 Year Index, 12/20/2027*		5.00			Quarterly		5.19			USD	5,000		(9,103	)		(188,372	)		179,269
												$	74,498		$	(180,027	)	$	254,525

* 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	1,180	01/15/2025	4.028%	CPI#		Maturity	$	44,883		$	– 0	–	$	44,883
USD	4,860	01/15/2026	3.765%	CPI#		Maturity		186,014			– 0	–		186,014
USD	3,030	01/15/2027	CPI#	3.323%		Maturity		(162,518	)		– 0	–		(162,518	)
USD	2,760	01/15/2027	CPI#	3.466%		Maturity		(124,460	)		(3,161	)		(121,299	)
USD	1,340	01/15/2027	CPI#	3.320%		Maturity		(72,112	)		– 0	–		(72,112	)
USD	1,110	01/15/2028	1.230%	CPI#		Maturity		205,139			– 0	–		205,139
USD	650	01/15/2028	0.735%	CPI#		Maturity		142,530			– 0	–		142,530
USD	4,600	01/15/2029	CPI#	3.390%		Maturity		(158,837	)		– 0	–		(158,837	)
USD	3,720	01/15/2029	CPI#	3.331%		Maturity		(145,811	)		– 0	–		(145,811	)
USD	1,680	01/15/2030	1.714%	CPI#		Maturity		275,186			– 0	–		275,186
USD	1,680	01/15/2030	1.731%	CPI#		Maturity		272,665			– 0	–		272,665
USD	1,600	01/15/2030	1.585%	CPI#		Maturity		280,186			– 0	–		280,186
USD	525	01/15/2030	1.572%	CPI#		Maturity		92,531			– 0	–		92,531
USD	525	01/15/2030	1.587%	CPI#		Maturity		91,845			– 0	–		91,845
USD	1,650	01/15/2031	2.782%	CPI#		Maturity		127,979			– 0	–		127,979
USD	1,380	01/15/2031	2.680%	CPI#		Maturity		120,134			– 0	–		120,134
USD	1,100	01/15/2031	2.601%	CPI#		Maturity		103,781			– 0	–		103,781
USD	920	01/15/2031	2.989%	CPI#		Maturity		53,441			– 0	–		53,441
USD	1,990	01/15/2032	CPI#	3.448%		Maturity		(10,582	)		– 0	–		(10,582	)
USD	1,420	01/15/2032	CPI#	3.063%		Maturity		(65,810	)		– 0	–		(65,810	)
							$	1,256,184		$	(3,161	)	$	1,259,345

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

60    ^|    AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

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	10,000		01/15/2027	1 Day SOFR	2.711%	Annual	$	(485,718	)	$	– 0	–	$	(485,718	)
USD	7,500		04/15/2032	2.528%	1 Day SOFR	Annual		763,745			– 0	–		763,745
USD	7,000		04/15/2032	3.506%	1 Day SOFR	Annual		187,247			– 0	–		187,247
USD	5,000		04/15/2032	2.881%	1 Day SOFR	Annual		371,286			787			370,499
USD	5,000		04/15/2032	3.065%	1 Day SOFR	Annual		306,886			– 0	–		306,886
USD	5,000		04/15/2032	3.067%	1 Day SOFR	Annual		306,086			– 0	–		306,086
USD	4,300		04/15/2032	2.850%	1 Day SOFR	Annual		319,453			– 0	–		319,453
USD	4,000		04/15/2032	2.473%	1 Day SOFR	Annual		417,535			– 0	–		417,535
USD	2,600		04/15/2032	1.280%	1 Day SOFR	Annual		531,095			– 0	–		531,095
USD	1,600		04/15/2032	3.069%	1 Day SOFR	Annual		93,169			– 0	–		93,169
							$	2,810,784		$	787		$	2,809,997

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	700	$	(158,494	)	$	(85,708	)	$	(72,786	)
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	361		(81,625	)		(40,180	)		(41,445	)
Credit Suisse International
CDX-CMBX.NA. BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	700		(158,494	)		(87,201	)		(71,293	)
JPMorgan Securities, LLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		7.50			USD	1,599		(175,225	)		24,784			(200,009	)
												$	(573,838	)	$	(188,305	)	$	(385,533	)

* Termination date

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PORTFOLIO OF INVESTMENTS (continued)

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	2,000		11/23/2022		SIFMA*		1.510%		Maturity	$	(395,459	)	$	– 0	–	$	(395,459	)
Citibank, NA		USD	2,000		01/09/2023		SIFMA*		1.600%		Maturity		(394,637	)		– 0	–		(394,637	)
Citibank, NA		USD	2,000		04/07/2023		SIFMA*		2.655%		Maturity		(209,030	)		– 0	–		(209,030	)
Citibank, NA		USD	2,220		10/09/2029		1.125%		SIFMA*		Quarterly		295,094			– 0	–		295,094
Morgan Stanley Capital Services LLC		USD	2,000		12/19/2022		SIFMA*		1.450%		Maturity		(416,470	)		– 0	–		(416,470	)
Morgan Stanley Capital Services LLC		USD	2,000		02/13/2023		SIFMA*		2.000%		Maturity		(326,553	)		– 0	–		(326,553	)
Morgan Stanley Capital Services LLC		USD	2,000		03/15/2023		SIFMA*		2.400%		Maturity		(254,076	)		– 0	–		(254,076	)
Morgan Stanley Capital Services LLC		USD	2,000		03/23/2023		SIFMA*		2.460%		Maturity		(244,073	)		– 0	–		(244,073	)
Morgan Stanley Capital Services LLC		USD	2,000		05/15/2023		SIFMA*		3.400%		Maturity		(70,910	)		– 0	–		(70,910	)
												$	(2,016,114	)	$	– 0	–	$	(2,016,114	)

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

(a) When-Issued or delayed delivery security.

(b) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2022.

(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, 2022, the aggregate market value of these securities amounted to $51,998,721 or 16.7% of net assets.

(d) IO – Interest Only.

(e) Defaulted.

(f) 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		07/01/2014	$	173,772	$	3		0.00	%

(g) Non-income producing security.

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

(i) Defaulted matured security.

(j) 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

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PORTFOLIO OF INVESTMENTS (continued)

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.

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

(l) Fair valued by the Adviser.

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

(n) Affiliated investments.

(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.

As of October 31, 2022, 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 2.3% and 0.0%, respectively.

Glossary:

ABS – Asset-Backed Securities

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

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

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

ID – Improvement District

LIBOR – London Interbank Offered Rate

MUNIPSA – SIFMA Municipal Swap Index

SOFR – Secured Overnight Financing Rate

UPMC – University of Pittsburgh Medical Center

See notes to financial statements.

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STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $367,578,998)	$	325,239,767
Affiliated issuers (cost $563,535)		563,535
Cash collateral due from broker		5,555,486
Receivable for investment securities sold		10,190,000
Interest receivable		3,852,487
Receivable for capital stock sold		3,352,463
Unrealized appreciation on interest rate swaps		295,094
Receivable for variation margin on centrally cleared swaps		195,505
Affiliated dividends receivable		26,557
Total assets		349,270,894
Liabilities
Due to custodian		320
Payable for investment securities purchased		23,041,368
Payable for floating rate notes issued(a)		9,600,000
Unrealized depreciation on interest rate swaps		2,311,208
Payable for capital stock redeemed		2,034,456
Market value on credit default swaps (net premiums received $188,305)		573,838
Advisory fee payable		46,600
Administrative fee payable		31,643
Distribution fee payable		10,553
Directors’ fees payable		1,813
Transfer Agent fee payable		1,597
Dividends payable		609
Accrued expenses and other liabilities		571,911
Total liabilities		38,225,916
Net Assets	$	311,044,978
Composition of Net Assets
Capital stock, at par	$	31,509
Additional paid-in capital		353,552,549
Accumulated loss		(42,539,080	)
Net Assets	$	311,044,978

Net Asset Value Per Share—21 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	29,037,579		2,941,490	$	9.87	*
C	$	5,963,822		604,148	$	9.87
Advisor	$	276,043,577		27,963,131	$	9.87

* The maximum offering price per share for Class A shares was $10.18 which reflects a sales charge of 3.00%.

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

See notes to financial statements.

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STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest	$	7,644,274
Dividends—Affiliated issuers		80,547
Other income		2,550		$	7,727,371
Expenses
Advisory fee (see Note B)		1,274,893
Distribution fee—Class A		73,152
Distribution fee—Class C		70,795
Transfer agency—Class A		11,528
Transfer agency—Class C		2,712
Transfer agency—Advisor Class		99,910
Administrative		98,645
Custody and accounting		102,901
Registration fees		63,965
Audit and tax		63,352
Printing		49,173
Legal		39,107
Directors’ fees		21,275
Miscellaneous		14,375
Total expenses before interest expense		1,985,783
Interest expense		40,006
Total expenses		2,025,789
Less: expenses waived and reimbursed by the Adviser (see Note B)		(432,731	)
Net expenses					1,593,058
Net investment income					6,134,313
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					(4,016,257	)
Swaps					2,279,766
Net change in unrealized appreciation (depreciation) of:
Investments(a)					(46,122,883	)
Swaps					484,445
Net loss on investment transactions					(47,374,929	)
Contributions from Affiliates (see Note B)					23,865
Net Decrease in Net Assets from Operations				$	(41,216,751	)

(a) Net of decrease 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, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	6,134,313		$	2,474,391
Net realized gain (loss) on investment transactions		(1,736,491	)		411,178
Net change in unrealized appreciation (depreciation) of investments		(45,638,438	)		4,031,055
Contributions from Affiliates (see Note B)		23,865			– 0	–
Net increase (decrease) in net assets from operations		(41,216,751	)		6,916,624
Distributions to Shareholders
Class A		(573,228	)		(406,926	)
Class C		(79,387	)		(35,666	)
Advisor Class		(5,641,767	)		(2,042,255	)
Capital Stock Transactions
Net increase		161,243,946			117,513,762
Total increase		113,732,813			121,945,539
Net Assets
Beginning of period		197,312,165			75,366,626
End of period	$	311,044,978		$	197,312,165

See notes to financial statements.

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NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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”), 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% 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 convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5

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NOTES TO FINANCIAL STATEMENTS (continued)

of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

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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 modeling techniques and are generally classified as Level 2. Pricing vendor

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NOTES TO FINANCIAL STATEMENTS (continued)

inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of 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, 2022:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

275,961,627

$

– 0

–

$

275,961,627

Short-Term Municipal Notes

– 0

–

40,192,092

– 0

–

40,192,092

Corporates—Non-Investment Grade

– 0

–

3,663,084

163,533

(a)

3,826,617

Corporates—Investment Grade

– 0

–

3,267,721

– 0

–

3,267,721

Collateralized Mortgage Obligations

– 0

–

594,334

– 0

–

594,334

Commercial Mortgage-Backed Securities

– 0

–

550,259

– 0

–

550,259

Asset-Backed Securities

– 0

–

539,678

– 0

–

539,678

Collateralized Loan Obligations

– 0

–

243,164

– 0

–

243,164

Common Stocks

– 0

–

64,275

0

(a)

64,275

Short-Term Investments

563,535

– 0

–

– 0

–

563,535

Liabilities:

Floating Rate Notes(b)

(9,600,000

)

– 0

–

– 0

–

(9,600,000

)

Total Investments in Securities

(9,036,465

)

325,076,234

163,533

(a)

316,203,302

Other Financial Instruments(c):

Assets:

Centrally Cleared Credit Default Swaps

– 0

–

83,601

– 0

–

83,601

(d)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

1,996,314

– 0

–

1,996,314

(d)

Centrally Cleared Interest Rate Swaps

– 0

–

3,296,502

– 0

–

3,296,502

(d)

Interest Rate Swaps

– 0

–

295,094

– 0

–

295,094

Liabilities:

Centrally Cleared Credit Default Swaps

– 0

–

(9,103

)

– 0

–

(9,103

)(d)

Centrally Cleared Inflation (CPI) Swaps

– 0

–

(740,130

)

– 0

–

(740,130

)(d)

Centrally Cleared Interest Rate Swaps

– 0

–

(485,718

)

– 0

–

(485,718

)(d)

Credit Default Swaps

– 0

–

(573,838

)

– 0

–

(573,838

)

Interest Rate Swaps

– 0

–

(2,311,208

)

– 0

–

(2,311,208

)

Total

$

(9,036,465

)

$

326,627,748

$

163,533

$

317,754,816

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

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

(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, written options and written swaptions 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 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 three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund

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NOTES TO FINANCIAL STATEMENTS (continued)

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 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, 2022, such reimbursements/waivers amounted to $425,288. The Expense Caps may not be terminated before January 31, 2023.

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, 2022, the reimbursement for such services amounted to $98,645.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 $22,924 for the year ended October 31, 2022.

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 $39 from the sale of Class A shares and received $11,982 and $5,466 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $7,443.

A summary of the Fund’s transactions in AB mutual funds for the year ended October 31, 2022 is as follows:

Fund	Market Value 10/31/21 (000)			Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	– 0	–	$	234,673	$	234,109	$	564	$	81

During the year ended October 31, 2022, the Adviser reimbursed the Fund $23,865 for trading losses incurred due to a pricing 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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 $28,821 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, 2022 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	240,251,591		$	75,836,176
U.S. government securities		– 0	–		667,422

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

Cost	$	357,706,038
Gross unrealized appreciation	$	6,954,764
Gross unrealized depreciation		(46,955,611	)
Net unrealized depreciation	$	(40,000,847	)

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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NOTES TO FINANCIAL STATEMENTS (continued)

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

• Swaps

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

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

During the year ended October 31, 2022, 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, 2022, 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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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, 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 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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NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2022, 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	$	254,525	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		5,292,029	*	Receivable/Payable for variation margin on centrally cleared swaps	$	1,222,687	*
Interest rate contracts	Unrealized appreciation on interest rate swaps		295,094		Unrealized depreciation on interest rate swaps		2,311,208
Credit contracts					Market value on credit default swaps		573,838
Total		$	5,841,648			$	4,107,733

* 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	$	1,892,738	$	(111,111	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		387,028		595,556
Total		$	2,279,766	$	484,445

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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, 2022:

Interest Rate Swaps:
Average notional amount	$	13,826,154
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	48,338,462
Centrally Cleared Inflation Swaps:
Average notional amount	$	35,798,462
Credit Default Swaps:
Average notional amount of sale contracts	$	4,570,898
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	6,285,714	(a)
Average notional amount of sale contracts	$	19,970,000	(b)

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

(b) Positions were open for five 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, 2022. 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.	$	295,094	$	(295,094	)	$	– 0	–	$	– 0	–	$	– 0	–
Total	$	295,094	$	(295,094	)	$	– 0	–	$	– 0	–	$	– 0	–

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.	$	1,239,245	$	(295,094	)	$	(913,000	)	$	– 0	–	$	31,151
Credit Suisse International		158,494		– 0	–		(158,494	)		– 0	–		– 0	–
JPMorgan Securities, LLC		175,225		– 0	–		(175,225	)		– 0	–		– 0	–
Morgan Stanley Capital Services LLC		1,312,082		– 0	–		(1,278,000	)		– 0	–		34,082
Total	$	2,885,046	$	(295,094	)	$	(2,524,719	)	$	– 0	–	$	65,233	^

* 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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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		2,345,610			1,412,846		$	25,300,363		$	16,395,252
Shares issued in reinvestment of dividends		35,652			17,413			377,337			200,359
Shares converted from Class C		6,335			33,047			69,463			379,856
Shares redeemed		(1,988,011	)		(442,249	)		(21,571,436	)		(5,086,693	)
Net increase		399,586			1,021,057		$	4,175,727		$	11,888,774
Class C
Shares sold		238,746			597,815		$	2,533,652		$	6,955,200
Shares issued in reinvestment of dividends		6,212			2,391			65,534			27,536
Shares converted to Class A		(6,338	)		(33,047	)		(69,463	)		(379,856	)
Shares redeemed		(321,819	)		(45,530	)		(3,432,310	)		(523,128	)
Net increase (decrease)		(83,199	)		521,629		$	(902,587	)	$	6,079,752
Advisor Class
Shares sold		37,244,701			11,306,229		$	402,826,250		$	131,083,859
Shares issued in reinvestment of dividends		294,382			84,583			3,110,820			975,843
Shares redeemed		(23,418,191	)		(2,823,940	)		(247,966,264	)		(32,514,466	)
Net increase		14,120,892			8,566,872		$	157,970,806		$	99,545,236

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) and regional and global conflicts, that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling

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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 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.

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NOTES TO FINANCIAL STATEMENTS (continued)

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 net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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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.

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.

Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

LIBOR Transition and Associated Risk—A Fund may be exposed to debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	832,185	$	467,928
Total taxable distributions		832,185		467,928
Tax-exempt distributions		5,462,197		2,016,919
Total distributions paid	$	6,294,382	$	2,484,847

As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	52,120
Accumulated capital and other losses		(2,589,744	)(a)
Unrealized appreciation (depreciation)		(40,000,847	)(b)
Total accumulated earnings/(deficit)	$	(42,538,471	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $2,589,744.

(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) 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, 2022, the

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NOTES TO FINANCIAL STATEMENTS (continued)

Fund had a net short-term capital loss carryforward of $2,589,744, 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 decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

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 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, 2022, the amount of the Fund’s Floating Rate Notes outstanding was $9,600,000 and the related interest rate was 2.27% to 2.39%. For the year ended October 31, 2022, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $1,621,918 and 1.72%, 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

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NOTES TO FINANCIAL STATEMENTS (continued)

(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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.56			$  10.82			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.21			.22			.29			.30			.24
Net realized and unrealized gain (loss) on investment transactions		(1.69	)		.75			(.23	)		.65			(.30	)
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(1.48	)		.97			.06			.95			(.06	)
Less: Dividends
Dividends from net investment income		(.21	)		(.23	)		(.33	)		(.32	)		(.25	)
Net asset value, end of period		$  9.87			$  11.56			$  10.82			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		(12.93	)%		9.02	%		.63	%		9.15	%		(.55	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$29,037			$29,381			$16,463			$11,932			$5,666
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.76	%		.76	%		.77	%		.76	%		.75	%
Expenses, before waivers/reimbursements(e)		.91	%		1.08	%		1.26	%		1.30	%		1.27	%
Net investment income(b)		1.91	%		1.88	%		2.68	%		2.78	%		2.26	%
Portfolio turnover rate		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 93.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.12			.11			.20			.22			.16
Net realized and unrealized gain (loss) on investment transactions		(1.68	)		.77			(.21	)		.65			(.30	)
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(1.56	)		.88			(.01	)		.87			(.14	)
Less: Dividends
Dividends from net investment income		(.13	)		(.15	)		(.25	)		(.24	)		(.17	)
Net asset value, end of period		$  9.87			$  11.56			$  10.83			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		(13.59	)%		8.22	%		(.03	)%+		8.33	%		(1.29	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,964			$7,943			$1,794			$1,596			$769
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.51	%		1.51	%		1.52	%		1.51	%		1.50	%
Expenses, before waivers/reimbursements(e)		1.66	%		1.81	%		2.00	%		2.06	%		2.02	%
Net investment income(b)		1.08	%		.96	%		1.91	%		2.05	%		1.52	%
Portfolio turnover rate		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 93.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.56			$  10.83			$  11.09			$  10.46			$  10.77
Income From Investment Operations
Net investment income(a)(b)		.24			.24			.31			.33			.27
Net realized and unrealized gain (loss) on investment transactions		(1.69	)		.75			(.21	)		.64			(.30	)
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		(1.45	)		.99			.10			.97			(.03	)
Less: Dividends
Dividends from net investment income		(.24	)		(.26	)		(.36	)		(.34	)		(.28	)
Net asset value, end of period		$  9.87			$  11.56			$  10.83			$  11.09			$  10.46
Total Return
Total investment return based on net asset value(d)		(12.71	)%		9.20	%		.97	%		9.42	%		(.30	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$276,044			$159,988			$57,110			$67,119			$57,432
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.51	%		.51	%		.52	%		.51	%		.50	%
Expenses, before waivers/reimbursements(e)		.66	%		.82	%		.99	%		1.05	%		1.02	%
Net investment income(b)		2.23	%		2.05	%		2.87	%		3.04	%		2.52	%
Portfolio turnover rate		33	%		30	%		63	%		52	%		68	%

See footnote summary on page 93.

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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 fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

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

	Year Ended October 31,
	2022			2021			2020			2019			2018
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		.90	%		1.07	%		1.23	%		1.29	%		1.27	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.65	%		1.79	%		1.98	%		2.04	%		2.02	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.65	%		.80	%		.96	%		1.04	%		1.02	%

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

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 (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2022, 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, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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, 2022

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2022 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, 2022. For foreign shareholders, 3.35% 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 2023.

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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⁾

OFFICERS

Daryl Clements⁽²⁾, Vice President 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 Vice President 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 the Adviser’s Tax-Aware Investment Team. Messrs. Clements, Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2013)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2013)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2013)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Daryl Clements 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Terrance T. Hults 56	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017.
Matthew Norton 39	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Chief Investment Officer – Municipal Bonds.
Andrew D. Potter 37	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 2-4, 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

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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 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 2019 and 2020 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.

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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-, 3- and 5-year periods ended July 31, 2021 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 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, and rules adopted, by the SEC. The directors also noted

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

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

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TAXABLE

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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

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Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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NOTES

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AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TAFIO-0151-1022                

OCT    ^10.31.22

ANNUAL REPORT

AB TOTAL RETURN BOND PORTFOLIO

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

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

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

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

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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 6, 2022

This report provides management’s discussion of fund performance for the AB Total Return Bond Portfolio for the annual reporting period ended October 31, 2022.

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, 2022 (unaudited)

	6 Months		12 Months
AB TOTAL RETURN BOND PORTFOLIO1
Class A Shares		-8.19%		-17.57%
Class C Shares		-8.46%		-18.22%
Advisor Class Shares2		-8.08%		-17.44%
Class R Shares2		-8.22%		-17.78%
Class K Shares2		-8.09%		-17.56%
Class I Shares2		-8.07%		-17.44%
Class Z Shares2		-8.06%		-17.34%
Bloomberg US Aggregate Bond Index		-6.86%		-15.68%

1 Includes the impact of proceeds received and credited to the Fund resulting from class-action settlements, which enhanced the performance of all share classes of the Fund for the six- and 12-month periods ended October 31, 2022, by 0.00% and 0.01%, 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.

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, 2022.

During both periods, all share classes of the Fund underperformed the benchmark, before sales charges. In the 12-month period, yield-curve positioning was the largest detractor, relative to the benchmark, as losses from positioning on the two- to 10-year parts of the curve outweighed gains on the six-month and 20-year parts of the curve. Sector allocation also detracted, as losses from off-benchmark exposure to collateralized loan obligations were partially offset by gains from an underweight to US agency mortgages and an overweight to asset-backed securities. Country allocation hampered results, due to off-benchmark allocation to Japan and the UK that was partially offset by gains from allocation to the eurozone

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and Sweden. Currency decisions contributed, as gains in the Swedish krona, offshore Chinese renminbi, Australian dollar and Canadian dollar exceeded a loss in the Russian ruble. Security selection within commercial mortgage-backed securities (“CMBS”) also contributed, partially offset by losses within investment-grade corporate bonds and asset-backed securities.

During the six-month period, sector allocation was the largest detractor, mostly from off-benchmark allocation to collateralized mortgage obligations, agency risk-sharing transactions and emerging-market corporate bonds, along with an overweight to CMBS, while an underweight to US agency mortgages contributed. Country allocation to Japan and the UK detracted more than a gain in the eurozone. Security selection also detracted, primarily from losses within investment-grade corporate bonds and asset-backed securities that were partially offset by gains within CMBS and high-yield corporate bonds. Yield-curve positioning contributed, from gains on the six-month and 10-year parts of the curve that outweighed losses from positioning on the two- and 30-year parts of the curve. Currency positioning in the offshore Chinese renminbi was a minor contributor to performance.

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, which added to absolute returns.

MARKET REVIEW AND INVESTMENT STRATEGY

Fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets during the 12-month period ended October 31, 2022. Most major central banks aggressively tightened monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Developed-market government bonds fell the most in the UK and eurozone, and by the least in Japan, Canada and Australia. In credit risk sectors, securitized assets generally outperformed corporate bonds. Investment-grade corporate bonds trailed treasuries, underperforming in the US against US Treasuries, while outperforming in the eurozone relative to eurozone treasuries. High-yield corporate bonds in the US outperformed US Treasuries, while eurozone high yield outperformed eurozone treasuries. Emerging-market sovereign bonds materially underperformed developed-market treasuries. Emerging-market investment-grade corporate bonds hedged to the US dollar outperformed US investment-grade corporates. Emerging-market local-currency bonds lagged as the US dollar advanced against all developed-market currencies and most emerging-market currencies. Brent crude oil

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prices ended higher, even as prices fell later in the period on global growth concerns and reduced demand.

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) and regional and global conflicts, that affect large portions of the market.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

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

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) 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.

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DISCLOSURES AND RISKS (continued)

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 have more risk because the markets are less developed and less liquid and are subject to increased economic, political, regulatory or other uncertainties.

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

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

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“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.

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DISCLOSURES AND RISKS (continued)

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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

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

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

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.

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

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DISCLOSURES AND RISKS (continued)

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)

10/31/2012 TO 10/31/2022

This chart illustrates the total value of an assumed $10,000 investment in AB Total Return Bond Portfolio Class A shares (from 10/31/2012 to 10/31/2022) 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.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2022 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						4.12%
1 Year		-17.57%		-21.08%
5 Years		-1.12%		-1.97%
10 Years		0.67%		0.23%
CLASS C SHARES						3.54%
1 Year		-18.22%		-19.02%
5 Years		-1.84%		-1.84%
10 Years2		-0.07%		-0.07%
ADVISOR CLASS SHARES3						4.57%
1 Year		-17.44%		-17.44%
5 Years		-0.87%		-0.87%
10 Years		0.92%		0.92%
CLASS R SHARES3						3.85%
1 Year		-17.78%		-17.78%
5 Years		-1.35%		-1.35%
10 Years		0.43%		0.43%
CLASS K SHARES3						4.17%
1 Year		-17.56%		-17.56%
5 Years		-1.10%		-1.10%
10 Years		0.68%		0.68%
CLASS I SHARES3						4.51%
1 Year		-17.44%		-17.44%
5 Years		-0.88%		-0.88%
10 Years		0.92%		0.92%
CLASS Z SHARES3						4.60%
1 Year		-17.34%		-17.34%
5 Years		-0.87%		-0.87%
Since Inception4		0.81%		0.81%

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 0.99%, 1.74%, 0.74%, 1.37%, 1.06%, 0.68% 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 limited the Fund’s total 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, 2023, 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, 2022.

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.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2022 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-19.64%
5 Years		-1.57%
10 Years		0.47%
CLASS C SHARES
1 Year		-17.48%
5 Years		-1.46%
10 Years1		0.17%
ADVISOR CLASS SHARES2
1 Year		-15.87%
5 Years		-0.49%
10 Years		1.17%
CLASS R SHARES2
1 Year		-16.22%
5 Years		-0.97%
10 Years		0.67%
CLASS K SHARES2
1 Year		-16.07%
5 Years		-0.72%
10 Years		0.92%
CLASS I SHARES2
1 Year		-15.94%
5 Years		-0.50%
10 Years		1.17%
CLASS Z SHARES2
1 Year		-15.85%
5 Years		-0.47%
Since Inception3		1.04%

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.

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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 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.

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EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2022		Ending Account Value October 31, 2022		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	918.10	$	3.72		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class C
Actual	$	1,000	$	915.40	$	7.34		1.52	%
Hypothetical**	$	1,000	$	1,017.54	$	7.73		1.52	%
Advisor Class
Actual	$	1,000	$	919.20	$	2.52		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class R
Actual	$	1,000	$	917.80	$	4.93		1.02	%
Hypothetical**	$	1,000	$	1,020.06	$	5.19		1.02	%
Class K
Actual	$	1,000	$	919.10	$	3.72		0.77	%
Hypothetical**	$	1,000	$	1,021.32	$	3.92		0.77	%
Class I
Actual	$	1,000	$	919.30	$	2.52		0.52	%
Hypothetical**	$	1,000	$	1,022.58	$	2.65		0.52	%
Class Z
Actual	$	1,000	$	919.40	$	2.52		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.

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PORTFOLIO SUMMARY

October 31, 2022 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $201.7

TOP TEN SECTORS (including derivatives)¹

Governments–Treasuries2	30.2	%
Corporates–Investment Grade	24.8
Mortgage Pass-Throughs	20.1
Commercial Mortgage-Backed Securities3	13.5
Collateralized Mortgage Obligations	10.5
Asset-Backed Securities	7.6
Collateralized Loan Obligations	4.4
Emerging Markets–Corporate Bonds	1.2
Local Governments–US Municipal Bonds	0.9
Common Stocks	0.5

SECTOR BREAKDOWN (excluding derivatives)⁴

Corporates–Investment Grade	23.4	%
Mortgage Pass-Throughs	18.8
Governments–Treasuries	16.3
Collateralized Mortgage Obligations	12.6
Commercial Mortgage-Backed Securities	9.2
Asset-Backed Securities	7.1
Collateralized Loan Obligations	3.7
Corporates–Non-Investment Grade	3.3
Emerging Markets–Corporate Bonds	1.1
Local Governments–US Municipal Bonds	0.8
Common Stocks	0.4
Emerging Markets–Sovereigns	0.4
Quasi-Sovereigns	0.3
Governments–Sovereign Bonds	0.1
Short-Term Investments	2.5
	100.0	%

1 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 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).

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PORTFOLIO OF INVESTMENTS

October 31, 2022

		Principal Amount (000)		U.S. $ Value
CORPORATES - INVESTMENT GRADE – 24.9%
Industrial – 13.8%
Basic – 0.6%
Anglo American Capital PLC 3.875%, 03/16/2029(a)	U.S.$		238	$	201,750
Celanese US Holdings LLC 5.90%, 07/05/2024			455		447,137
Freeport Indonesia PT 4.763%, 04/14/2027(a)			390		349,537
Suzano Austria GmbH 3.75%, 01/15/2031			145		115,366
					1,113,790
Capital Goods – 0.4%
CNH Industrial Capital LLC 3.95%, 05/23/2025			375		359,333
Flowserve Corp. 2.80%, 01/15/2032			425		304,708
Parker-Hannifin Corp. 3.25%, 06/14/2029			255		221,531
					885,572
Communications - Media – 1.7%
Charter Communications Operating LLC/Charter Communications Operating Capital 5.125%, 07/01/2049			198		146,166
Discovery Communications LLC 5.20%, 09/20/2047			178		126,526
5.30%, 05/15/2049			81		58,398
Fox Corp. 4.709%, 01/25/2029			240		223,418
5.576%, 01/25/2049			407		339,784
Interpublic Group of Cos., Inc. (The) 4.65%, 10/01/2028			178		164,438
Netflix, Inc. 5.875%, 11/15/2028			766		760,914
Prosus NV 3.257%, 01/19/2027(a)			219		180,675
3.68%, 01/21/2030(a)			545		399,144
Tencent Holdings Ltd. 3.24%, 06/03/2050(a)			328		170,417
Weibo Corp. 3.375%, 07/08/2030			1,312		902,246
					3,472,126
Consumer Cyclical - Automotive – 0.7%
General Motors Financial Co., Inc. 4.30%, 04/06/2029			78		68,529

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Harley-Davidson Financial Services, Inc. 3.05%, 02/14/2027(a)	U.S.$		501	$	427,518
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)			1,120		944,350
					1,440,397
Consumer Cyclical - Other – 0.4%
Las Vegas Sands Corp. 3.90%, 08/08/2029			797		642,980
MDC Holdings, Inc. 6.00%, 01/15/2043			346		263,333
					906,313
Consumer Cyclical - Retailers – 0.9%
Advance Auto Parts, Inc. 3.90%, 04/15/2030			811		687,103
Lowe’s Cos., Inc. 5.80%, 09/15/2062			336		300,811
Ross Stores, Inc. 4.70%, 04/15/2027			893		854,601
					1,842,515
Consumer Non-Cyclical – 1.2%
Altria Group, Inc. 3.40%, 05/06/2030			750		609,375
BAT Capital Corp. 2.259%, 03/25/2028			1,125		890,258
4.906%, 04/02/2030			196		171,329
Cargill, Inc. 5.125%, 10/11/2032(a)			248		242,006
CVS Health Corp. 4.30%, 03/25/2028			28		26,288
Ochsner LSU Health System of North Louisiana Series 2021 2.51%, 05/15/2031			520		388,913
					2,328,169
Energy – 2.8%
BP Capital Markets America, Inc. 2.939%, 06/04/2051			1,201		741,726
Continental Resources, Inc./OK 2.875%, 04/01/2032(a)			454		331,997
5.75%, 01/15/2031(a)			335		304,813
Devon Energy Corp. 5.60%, 07/15/2041			457		417,401
Diamondback Energy, Inc. 6.25%, 03/15/2033			220		220,986
Enbridge Energy Partners LP 7.375%, 10/15/2045			634		670,753

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy Transfer LP 6.25%, 04/15/2049	U.S.$		156	$	136,168
EQT Corp. 5.70%, 04/01/2028			137		133,334
Marathon Oil Corp. 6.80%, 03/15/2032			650		662,213
Marathon Petroleum Corp. 5.125%, 12/15/2026			255		250,685
6.50%, 03/01/2041			161		157,036
Oleoducto Central SA 4.00%, 07/14/2027(a)			429		349,045
ONEOK Partners LP 6.125%, 02/01/2041			48		42,416
ONEOK, Inc. 4.35%, 03/15/2029			425		377,957
6.35%, 01/15/2031			217		214,331
Suncor Energy, Inc. 6.80%, 05/15/2038			534		534,438
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(a)			237		151,561
					5,696,860
Other Industrial – 0.3%
Alfa SAB de CV 5.25%, 03/25/2024(a)			530		524,634
Services – 0.7%
Booking Holdings, Inc. 4.625%, 04/13/2030			925		872,321
Expedia Group, Inc. 6.25%, 05/01/2025(a)			33		32,981
Global Payments, Inc. 3.20%, 08/15/2029			290		240,816
5.40%, 08/15/2032			288		266,198
S&P Global, Inc. 4.75%, 08/01/2028(a)			32		31,023
					1,443,339
Technology – 3.5%
Apple, Inc. 4.10%, 08/08/2062			350		272,233
Broadcom, Inc. 3.137%, 11/15/2035(a)			124		86,008
3.187%, 11/15/2036(a)			411		280,429
4.00%, 04/15/2029(a)			53		46,513
4.15%, 11/15/2030			240		206,472
4.15%, 04/15/2032(a)			187		156,878
4.926%, 05/15/2037(a)			547		450,837

18    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Entegris Escrow Corp. 4.75%, 04/15/2029(a)	U.S.$		395	$	352,715
Fiserv, Inc. 3.50%, 07/01/2029			869		755,100
Honeywell International, Inc. 4.125%, 11/02/2034	EUR		410		399,866
HP, Inc. 5.50%, 01/15/2033	U.S.$		592		527,046
Infor, Inc. 1.75%, 07/15/2025(a)			279		250,163
Intel Corp. 5.05%, 08/05/2062			467		380,614
International Business Machines Corp. 4.90%, 07/27/2052			457		385,388
KLA Corp. 4.10%, 03/15/2029			123		115,726
Kyndryl Holdings, Inc. 2.05%, 10/15/2026			869		681,366
Micron Technology, Inc. 6.75%, 11/01/2029			562		562,264
NXP BV/NXP Funding LLC 5.55%, 12/01/2028			277		265,637
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.40%, 05/01/2030			298		247,122
Oracle Corp. 5.375%, 07/15/2040			90		75,145
SK Hynix, Inc. 2.375%, 01/19/2031(a)			280		197,103
TSMC Arizona Corp. 3.875%, 04/22/2027			241		225,386
Workday, Inc. 3.70%, 04/01/2029			77		68,621
					6,988,632
Transportation - Airlines – 0.3%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(a)			345		336,050
4.75%, 10/20/2028(a)			401		372,806
					708,856
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 5.875%, 07/05/2034(a)			166		153,582
Transportation - Services – 0.2%
ENA Master Trust 4.00%, 05/19/2048(a)			457		309,903
					27,814,688

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 10.5%
Banking – 7.4%
AIB Group PLC 7.583%, 10/14/2026(a)	U.S.$		845	$	840,158
Banco de Credito del Peru S.A. 3.125%, 07/01/2030(a)			635		556,768
Banco Santander SA 4.175%, 03/24/2028			400		352,292
Bank of America Corp. 4.376%, 04/27/2028			503		467,830
Bank of Ireland Group PLC 6.253%, 09/16/2026(a)			215		207,774
Barclays PLC 7.385%, 11/02/2028			384		382,103
BNP Paribas SA 4.625%, 02/25/2031(a)			463		320,563
Citigroup, Inc. 4.075%, 04/23/2029			494		445,035
5.95%, 01/30/2023(b)			177		175,731
Series W 4.00%, 12/10/2025(b)			329		277,350
Credit Suisse Group AG 3.091%, 05/14/2032(a)			319		218,898
4.194%, 04/01/2031(a)			396		306,429
6.373%, 07/15/2026(a)			369		344,177
Danske Bank A/S 4.298%, 04/01/2028(a)			360		317,617
Deutsche Bank AG/New York NY 3.961%, 11/26/2025			265		244,110
6.119%, 07/14/2026			294		281,052
Discover Bank 4.682%, 08/09/2028			250		239,988
Federation des Caisses Desjardins du Quebec 4.55%, 08/23/2027(a)			464		433,835
Fifth Third Bancorp Series L 4.50%, 09/30/2025(b)			205		188,916
Goldman Sachs Group, Inc. (The) Series V 4.125%, 11/10/2026(b)			268		208,761
HSBC Holdings PLC 4.292%, 09/12/2026			240		221,388
4.583%, 06/19/2029			224		195,001
4.762%, 03/29/2033			323		256,753
7.336%, 11/03/2026			323		323,636
JPMorgan Chase & Co. 2.58%, 04/22/2032			892		686,055

20    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Mizuho Financial Group, Inc. 5.414%, 09/13/2028	U.S.$		444	$	428,833
Morgan Stanley 0.406%, 10/29/2027	EUR		309		260,669
3.772%, 01/24/2029	U.S.$		515		459,437
4.21%, 04/20/2028			358		331,365
6.296%, 10/18/2028			144		145,303
Nationwide Building Society 2.972%, 02/16/2028(a)			398		337,146
Societe Generale SA 2.797%, 01/19/2028(a)			778		644,495
Standard Chartered PLC 3.971%, 03/30/2026(a)			268		246,474
5.925% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(b)(c)			400		294,744
6.00%, 07/26/2025(a)(b)			478		435,998
Swedbank AB Series NC5 5.625%, 09/17/2024(a)(b)			400		376,376
Truist Financial Corp. Series Q 5.10%, 03/01/2030(b)			692		608,413
UBS Group AG 7.00%, 02/19/2025(a)(b)			312		302,185
UniCredit SpA 1.982%, 06/03/2027(a)			205		166,673
2.569%, 09/22/2026(a)			391		335,509
3.127%, 06/03/2032(a)			356		251,461
US Bancorp Series J 5.30%, 04/15/2027(b)			380		317,969
Wells Fargo & Co. 3.584%, 05/22/2028			191		172,005
Series BB 3.90%, 03/15/2026(b)			273		231,744
					14,839,019
Brokerage – 0.4%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(b)			412		402,401
Series I 4.00%, 06/01/2026(b)			469		382,535
					784,936
Finance – 1.6%
Air Lease Corp. 2.875%, 01/15/2026			72		64,023
3.625%, 04/01/2027			34		29,961

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Aircastle Ltd. 2.85%, 01/26/2028(a)	U.S.$		835	$	627,711
4.125%, 05/01/2024			152		144,920
4.25%, 06/15/2026			53		46,749
5.25%, 08/11/2025(a)			384		359,317
Aviation Capital Group LLC 1.95%, 01/30/2026(a)			449		373,716
1.95%, 09/20/2026(a)			133		107,005
3.50%, 11/01/2027(a)			136		110,799
4.125%, 08/01/2025(a)			5		4,536
4.375%, 01/30/2024(a)			135		130,179
4.875%, 10/01/2025(a)			153		140,350
5.50%, 12/15/2024(a)			381		365,886
CDBL Funding 1 3.50%, 10/24/2027(a)			580		522,568
Synchrony Financial 2.875%, 10/28/2031			420		296,957
					3,324,677
Insurance – 0.7%
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(a)			294		223,687
MetLife Capital Trust IV 7.875%, 12/15/2037(a)			699		727,771
Swiss Re Finance Luxembourg SA 5.00%, 04/02/2049(a)			400		348,604
Voya Financial, Inc. 5.65%, 05/15/2053			180		174,010
					1,474,072
REITs – 0.4%
GLP Capital LP/GLP Financing II, Inc. 3.25%, 01/15/2032			397		294,236
Vornado Realty LP 3.40%, 06/01/2031			709		523,540
					817,776
					21,240,480
Utility – 0.6%
Electric – 0.6%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a)			274		215,398
Chile Electricity Pec SpA Zero Coupon, 01/25/2028(a)			679		471,184
Duke Energy Carolinas NC Storm Funding LLC Series A-2 2.617%, 07/01/2041			306		221,305

22    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Engie Energia Chile SA 3.40%, 01/28/2030(a)	U.S.$		349	$	254,770
					1,162,657
Total Corporates - Investment Grade (cost $60,728,927)					50,217,825
MORTGAGE PASS-THROUGHS – 20.1%
Agency Fixed Rate 30-Year – 19.2%
Federal Home Loan Mortgage Corp. Series 2019 3.50%, 10/01/2049			190		170,971
3.50%, 11/01/2049			253		226,972
Series 2020 3.50%, 01/01/2050			715		642,938
Series 2022 2.00%, 03/01/2052			1,980		1,565,021
2.50%, 04/01/2052			2,308		1,900,603
3.00%, 03/01/2052			1,302		1,111,350
Federal Home Loan Mortgage Corp. Gold Series 2005 5.50%, 01/01/2035			78		78,914
Series 2007 5.50%, 07/01/2035			14		13,673
Series 2016 4.00%, 02/01/2046			533		501,273
Series 2017 4.00%, 07/01/2044			353		331,922
Series 2018 4.50%, 03/01/2048			140		133,405
4.50%, 10/01/2048			343		327,628
4.50%, 11/01/2048			449		429,219
5.00%, 11/01/2048			166		163,330
Federal National Mortgage Association Series 2003 5.50%, 04/01/2033			25		25,144
5.50%, 07/01/2033			55		55,100
Series 2004 5.50%, 04/01/2034			7		6,644
5.50%, 05/01/2034			16		16,258
5.50%, 11/01/2034			23		23,483
5.50%, 01/01/2035			220		222,361
Series 2005 5.50%, 02/01/2035			32		32,636
Series 2007 5.50%, 08/01/2037			162		163,940
Series 2010 4.00%, 12/01/2040			225		211,607

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2012 3.50%, 02/01/2042	U.S.$		146	$	132,834
3.50%, 11/01/2042			1,536		1,393,542
3.50%, 01/01/2043			259		234,697
Series 2013 3.50%, 04/01/2043			883		801,239
4.00%, 10/01/2043			533		497,943
Series 2016 3.50%, 01/01/2047			397		356,180
Series 2018 4.50%, 09/01/2048			786		750,566
Series 2019 3.50%, 08/01/2049			605		542,976
3.50%, 09/01/2049			271		243,742
3.50%, 11/01/2049			507		454,462
Series 2020 3.50%, 01/01/2050			625		561,242
Series 2021 2.00%, 07/01/2051			2,021		1,595,956
2.50%, 01/01/2052			665		548,696
Series 2022 2.50%, 03/01/2052			1,456		1,196,865
2.50%, 04/01/2052			1,502		1,236,538
2.50%, 05/01/2052			1,926		1,585,199
3.00%, 02/01/2052			1,700		1,451,521
3.00%, 03/01/2052			2,165		1,847,801
Government National Mortgage Association Series 2016 3.00%, 04/20/2046			76		67,171
3.00%, 05/20/2046			184		162,922
Series 2021 4.00%, 11/21/2052, TBA			994		915,772
4.50%, 11/21/2052, TBA			2,289		2,168,326
Series 2022 3.00%, 11/01/2052, TBA			418		362,920
Uniform Mortgage-Backed Security Series 2022 2.00%, 11/01/2052, TBA			4,891		3,852,271
2.50%, 11/01/2052, TBA			5,906		4,835,430
3.00%, 11/01/2052, TBA			1,585		1,345,982
4.00%, 11/01/2052, TBA			1,253		1,139,205
					38,636,390
Agency Fixed Rate 15-Year – 0.9%
Federal National Mortgage Association Series 2016 2.50%, 08/01/2031			105		96,564
2.50%, 11/01/2031			476		439,036

24    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
2.50%, 12/01/2031	U.S.$		621	$	572,967
2.50%, 01/01/2032			155		143,197
Series 2017 2.50%, 02/01/2032			660		607,604
					1,859,368
Agency ARMs – 0.0%
Federal Home Loan Mortgage Corp. Series 2006 2.25% (LIBOR 12 Month + 2.00%), 01/01/2037(c)			8		8,294
Total Mortgage Pass-Throughs (cost $44,201,072)					40,504,052
GOVERNMENTS - TREASURIES – 17.3%
United States – 17.3%
U.S. Treasury Bonds 2.375%, 02/15/2042			734		533,756
3.125%, 08/15/2044(d)			3,034		2,446,011
3.25%, 05/15/2042			1,116		940,308
3.375%, 08/15/2042			992		853,068
U.S. Treasury Notes 2.625%, 02/28/2023			13,938		13,861,777
2.75%, 07/31/2027			2,523		2,358,310
2.75%, 08/15/2032			1,895		1,693,835
3.00%, 06/30/2024(d)			4,291		4,178,751
3.125%, 08/31/2027			1,965		1,869,344
3.25%, 08/31/2024			3,526		3,444,266
4.125%, 09/30/2027			2,822		2,804,946
Total Governments - Treasuries (cost $36,526,068)					34,984,372
COLLATERALIZED MORTGAGE OBLIGATIONS – 13.8%
Risk Share Floating Rate – 11.8%
Bellemeade Re Ltd. Series 2019-1A, Class M1B 5.336% (LIBOR 1 Month + 1.75%), 03/25/2029(a)(c)			114		113,898
Series 2019-2A, Class M2 6.686% (LIBOR 1 Month + 3.10%), 04/25/2029(a)(c)			325		313,492
Series 2019-3A, Class M1B 5.186% (LIBOR 1 Month + 1.60%), 07/25/2029(a)(c)			75		74,766
Series 2019-3A, Class M1C 5.536% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(c)			263		259,911

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-4A, Class M2 6.436% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(c)	U.S.$		540	$	513,392
Series 2021-1A, Class M1C 5.947% (SOFR + 2.95%), 03/25/2031(a)(c)			398		385,141
Series 2022-1, Class M1C 6.697% (SOFR + 3.70%), 01/26/2032(a)(c)			672		590,251
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 5.986% (LIBOR 1 Month + 2.40%), 04/25/2031(a)(c)			28		27,657
Series 2019-R01, Class 2M2 6.036% (LIBOR 1 Month + 2.45%), 07/25/2031(a)(c)			86		86,150
Series 2019-R02, Class 1M2 5.886% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(c)			15		15,347
Series 2019-R06, Class 2M2 5.686% (LIBOR 1 Month + 2.10%), 09/25/2039(a)(c)			17		16,995
Series 2020-R01, Class 1B1 6.836% (LIBOR 1 Month + 3.25%), 01/25/2040(a)(c)			500		429,714
Series 2020-SBT1, Class 1M2 7.236% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			1,000		970,470
Series 2020-SBT1, Class 2M2 7.236% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			300		298,335
Series 2021-R03, Class 1M2 4.647% (SOFR + 1.65%), 12/25/2041(a)(c)			250		227,592
Series 2022-R01, Class 1B1 6.147% (SOFR + 3.15%), 12/25/2041(a)(c)			625		555,386
Series 2022-R02, Class 2M1 4.197% (SOFR + 1.20%), 01/25/2042(a)(c)			485		470,609
Eagle Re Ltd. Series 2018-1, Class M2 6.586% (LIBOR 1 Month + 3.00%), 11/25/2028(a)(c)			325		322,429
Eagle RE Ltd. Series 2019-1, Class M2 6.886% (LIBOR 1 Month + 3.30%), 04/25/2029(a)(c)			325		308,843
Eagle Re Ltd. Series 2021-2, Class M1B 5.047% (SOFR + 2.05%), 04/25/2034(a)(c)			254		247,066

26    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2022-DNA1, Class M2 5.497% (SOFR + 2.50%), 01/25/2042(a)(c)	U.S.$		806	$	702,382
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 8.386% (LIBOR 1 Month + 4.80%), 05/25/2028(c)			181		184,899
Series 2016-HQA3, Class M3 7.436% (LIBOR 1 Month + 3.85%), 03/25/2029(c)			706		716,302
Series 2017-DNA2, Class B1 8.736% (LIBOR 1 Month + 5.15%), 10/25/2029(c)			750		786,672
Series 2017-HQA2, Class B1 8.336% (LIBOR 1 Month + 4.75%), 12/25/2029(c)			800		798,392
Series 2017-HQA3, Class B1 8.036% (LIBOR 1 Month + 4.45%), 04/25/2030(c)			750		739,399
Series 2019-DNA1, Class B2 14.336% (LIBOR 1 Month + 10.75%), 01/25/2049(a)(c)			750		809,724
Series 2019-DNA3, Class B1 6.836% (LIBOR 1 Month + 3.25%), 07/25/2049(a)(c)			600		571,116
Series 2019-FTR2, Class B1 6.586% (LIBOR 1 Month + 3.00%), 11/25/2048(a)(c)			750		654,559
Series 2019-FTR3, Class B2 7.884% (LIBOR 1 Month + 4.80%), 09/25/2047(c)(e)			700		550,979
Series 2020-DNA5, Class M2 5.797% (SOFR + 2.80%), 10/25/2050(a)(c)			259		259,307
Series 2021-DNA3, Class B1 6.497% (SOFR + 3.50%), 10/25/2033(a)(c)			651		556,561
Series 2021-DNA6, Class M2 4.497% (SOFR + 1.50%), 10/25/2041(a)(c)			828		759,917
Series 2021-DNA7, Class M2 4.797% (SOFR + 1.80%), 11/25/2041(a)(c)			806		739,237
Series 2021-HQA4, Class M2 5.347% (SOFR + 2.35%), 12/25/2041(a)(c)			513		431,040
Series 2022-DNA2, Class M2 6.747% (SOFR + 3.75%), 02/25/2042(a)(c)			605		552,977
Federal National Mortgage Association Connecticut Avenue Securities Series 2015-C02, Class 1M2 7.586% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			101		102,386

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C03, Class 1M2 8.586% (LIBOR 1 Month + 5.00%), 07/25/2025(c)	U.S.$		102	$	103,148
Series 2015-C04, Class 1M2 9.286% (LIBOR 1 Month + 5.70%), 04/25/2028(c)			288		303,160
Series 2016-C02, Class 1B 15.836% (LIBOR 1 Month + 12.25%), 09/25/2028(c)			149		164,021
Series 2016-C03, Class 1B 15.336% (LIBOR 1 Month + 11.75%), 10/25/2028(c)			99		108,104
Series 2016-C06, Class 1B 12.836% (LIBOR 1 Month + 9.25%), 04/25/2029(c)			377		377,560
Series 2016-C07, Class 2B 13.086% (LIBOR 1 Month + 9.50%), 05/25/2029(c)			378		375,716
Series 2017-C01, Class 1B1 9.336% (LIBOR 1 Month + 5.75%), 07/25/2029(c)			750		799,202
Series 2017-C02, Class 2B1 9.086% (LIBOR 1 Month + 5.50%), 09/25/2029(c)			750		798,233
Series 2017-C04, Class 2M2 6.436% (LIBOR 1 Month + 2.85%), 11/25/2029(c)			213		215,670
Series 2017-C06, Class 2B1 8.036% (LIBOR 1 Month + 4.45%), 02/25/2030(c)			750		751,500
Series 2017-C07, Class 1B1 7.586% (LIBOR 1 Month + 4.00%), 05/25/2030(c)			305		308,240
Series 2017-C07, Class 2B1 8.036% (LIBOR 1 Month + 4.45%), 05/25/2030(c)			750		758,299
Series 2021-R02, Class 2B1 6.297% (SOFR + 3.30%), 11/25/2041(a)(c)			441		388,566
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 7.836% (LIBOR 1 Month + 4.25%), 11/25/2024(c)(e)			20		19,105
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 6.346% (LIBOR 1 Month + 2.75%), 05/27/2023(a)(c)			258		246,213

28    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1R, Class A 5.946% (LIBOR 1 Month + 2.35%), 02/27/2023(c)(e)	U.S.$		172	$	161,866
Radnor Re Ltd. Series 2019-1, Class M1B 5.536% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(c)			635		621,536
Series 2019-2, Class M1B 5.336% (LIBOR 1 Month + 1.75%), 06/25/2029(a)(c)			62		61,557
Series 2020-1, Class M1A 4.536% (LIBOR 1 Month + 0.95%), 01/25/2030(a)(c)			340		339,518
Triangle Re Ltd. Series 2021-3, Class M1B 5.897% (SOFR + 2.90%), 02/25/2034(a)(c)			530		506,340
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 8.836% (LIBOR 1 Month + 5.25%), 11/25/2025(c)(e)			121		111,812
Series 2015-WF1, Class 2M2 9.086% (LIBOR 1 Month + 5.50%), 11/25/2025(c)(e)			29		26,917
					23,689,576
Agency Fixed Rate – 0.7%
Federal Home Loan Mortgage Corp. REMICs Series 5015, Class BI 4.00%, 09/25/2050(f)			1,335		255,012
Federal National Mortgage Association Grantor Trust Series 2004-T5, Class AB4 3.624%, 05/28/2035			58		51,977
Federal National Mortgage Association REMICs Series 2016-31, Class IO 5.00%, 06/25/2046(f)			2,700		546,049
Series 2020-89, Class KI 4.00%, 12/25/2050(f)			2,891		549,598
					1,402,636
Non-Agency Fixed Rate – 0.6%
Alternative Loan Trust Series 2006-24CB, Class A16 5.75%, 08/25/2036			189		106,082
Series 2006-28CB, Class A14 6.25%, 10/25/2036			144		79,124
Series 2006-J1, Class 1A13 5.50%, 02/25/2036			84		59,956

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CHL Mortgage Pass-Through Trust Series 2006-13, Class 1A19 6.25%, 09/25/2036	U.S.$		46	$	19,227
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035(e)			710		645,600
JPMorgan Alternative Loan Trust Series 2006-A3, Class 2A1 3.694%, 07/25/2036			364		287,433
Structured Asset Securities Corp. Mortgage Pass-Through Certificates Series 2002-3, Class B3 6.50%, 03/25/2032			452		71,981
					1,269,403
Agency Floating Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 4719, Class JS 2.738% (6.15% – LIBOR 1 Month), 09/15/2047(c)(g)			622		59,437
Series 4981, Class HS 2.514% (6.10% – LIBOR 1 Month), 06/25/2050(c)(g)			1,907		178,107
Federal National Mortgage Association REMICs Series 2011-131, Class ST 2.954% (6.54% – LIBOR 1 Month), 12/25/2041(c)(g)			444		54,985
Series 2015-90, Class SL 2.564% (6.15% – LIBOR 1 Month), 12/25/2045(c)(g)			891		82,745
Series 2016-77, Class DS 2.414% (6.00% – LIBOR 1 Month), 10/25/2046(c)(g)			684		61,032
Series 2017-26, Class TS 2.364% (5.95% – LIBOR 1 Month), 04/25/2047(c)(g)			874		84,639
Series 2017-62, Class AS 2.564% (6.15% – LIBOR 1 Month), 08/25/2047(c)(g)			754		76,798
Series 2017-81, Class SA 2.614% (6.20% – LIBOR 1 Month), 10/25/2047(c)(g)			910		102,316
Series 2017-97, Class LS 2.614% (6.20% – LIBOR 1 Month), 12/25/2047(c)(g)			890		89,533
Government National Mortgage Association Series 2017-65, Class ST 2.661% (6.15% – LIBOR 1 Month), 04/20/2047(c)(g)			827		94,525
					884,117

30    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Floating Rate – 0.3%
Deutsche Alt-A Securities Mortgage Loan Trust Series 2006-AR4, Class A2 3.966% (LIBOR 1 Month + 0.38%), 12/25/2036(c)	U.S.$		444	$	160,364
HomeBanc Mortgage Trust Series 2005-1, Class A1 4.086% (LIBOR 1 Month + 0.50%), 03/25/2035(c)			79		65,539
Impac Secured Assets Corp. Series 2005-2, Class A2D 4.446% (LIBOR 1 Month + 0.86%), 03/25/2036(c)			144		118,374
JPMorgan Chase Bank, NA Series 2019-CL1, Class M3 5.686% (LIBOR 1 Month + 2.10%), 04/25/2047(a)(c)			92		84,185
Residential Accredit Loans, Inc. Trust Series 2007-QS4, Class 2A4 3.926% (LIBOR 1 Month + 0.34%), 03/25/2037(c)			501		89,765
					518,227
Total Collateralized Mortgage Obligations (cost $30,970,662)					27,763,959
COMMERCIAL MORTGAGE-BACKED SECURITIES – 9.4%
Non-Agency Fixed Rate CMBS – 6.2%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(a)			960		809,518
Banc of America Commercial Mortgage Trust Series 2015-UBS7, Class AS 3.989%, 09/15/2048			860		798,669
CFCRE Commercial Mortgage Trust Series 2016-C4, Class AM 3.691%, 05/10/2058			375		343,173
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			500		492,505
Series 2013-GC17, Class D 5.101%, 11/10/2046(a)			565		500,030
COMM Mortgage Trust Series 2013-LC6, Class B 3.739%, 01/10/2046			1,580		1,572,908

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(a)	U.S.$		39	$	38,154
Series 2014-LC17, Class B 4.49%, 10/10/2047			800		758,318
Series 2014-UBS6, Class AM 4.048%, 12/10/2047			375		356,150
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.155%, 08/10/2044(a)			252		106,539
Series 2013-G1, Class A2 3.557%, 04/10/2031(a)			406		402,381
GSF Series 2021-1, Class A1 1.433%, 08/15/2026(e)(h)			277		257,077
Series 2021-1, Class A2 2.435%, 08/15/2026(e)(h)			719		677,725
Series 2021-1, Class AS 2.638%, 08/15/2026(e)(h)			25		23,060
JPMBB Commercial Mortgage Securities Trust Series 2014-C24, Class C 4.384%, 11/15/2047			890		753,507
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-C6, Class D 4.964%, 05/15/2045			690		662,345
Series 2012-C6, Class E 4.964%, 05/15/2045(a)			389		297,329
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			77		33,684
LSTAR Commercial Mortgage Trust Series 2016-4, Class A2 2.579%, 03/10/2049(a)			177		176,019
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class C 4.236%, 12/10/2045(a)			820		814,540
Wells Fargo Commercial Mortgage Trust Series 2016-LC24, Class XA 1.605%, 10/15/2049(f)			7,592		358,393
Series 2016-LC25, Class C 4.339%, 12/15/2059			545		465,366
Series 2016-NXS6, Class C 4.385%, 11/15/2049			600		524,784
WF-RBS Commercial Mortgage Trust Series 2013-C11, Class B 3.714%, 03/15/2045			480		470,942

32    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2013-C11, Class XA 1.074%, 03/15/2045(a)(f)	U.S.$		1,567	$	16
Series 2014-C24, Class AS 3.931%, 11/15/2047			945		895,638
					12,588,770
Non-Agency Floating Rate CMBS – 3.2%
AREIT Trust Series 2022-CRE6, Class A 4.144% (SOFR + 1.25%), 01/16/2037(a)(c)			1,003		957,658
Ashford Hospitality Trust Series 2018-KEYS, Class A 4.413% (LIBOR 1 Month + 1.00%), 06/15/2035(a)(c)			526		501,075
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 4.413% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(c)			1,330		1,210,841
BBCMS Mortgage Trust Series 2020-BID, Class A 5.552% (LIBOR 1 Month + 2.14%), 10/15/2037(a)(c)			692		677,527
BFLD Trust Series 2021-FPM, Class A 5.013% (LIBOR 1 Month + 1.60%), 06/15/2038(a)(c)			1,060		1,017,932
BX Commercial Mortgage Trust Series 2019-IMC, Class D 5.312% (LIBOR 1 Month + 1.90%), 04/15/2034(a)(c)			142		131,980
Series 2019-IMC, Class E 5.562% (LIBOR 1 Month + 2.15%), 04/15/2034(a)(c)			566		525,467
CLNY Trust Series 2019-IKPR, Class D 5.437% (LIBOR 1 Month + 2.02%), 11/15/2038(a)(c)			540		492,676
Federal Home Loan Mortgage Corp. Multifamily Structured Credit Risk Series 2021-MN1, Class M1 4.997% (SOFR + 2.00%), 01/25/2051(a)(c)			75		70,304
Morgan Stanley Capital I Trust Series 2019-BPR, Class C 6.712% (LIBOR 1 Month + 3.30%), 05/15/2036(a)(c)			520		492,675
Natixis Commercial Mortgage Securities Trust Series 2019-MILE, Class A 4.912% (LIBOR 1 Month + 1.50%), 07/15/2036(a)(c)			379		372,178
					6,450,313

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-39, Class IO 0.00%, 07/16/2046(f)	U.S.$		419	$	4
Total Commercial Mortgage-Backed Securities (cost $20,558,946)					19,039,087
ASSET-BACKED SECURITIES – 7.6%
Other ABS - Fixed Rate – 3.6%
AB Issuer LLC Series 2021-1, Class A2 3.734%, 07/30/2051(a)			739		600,826
Affirm Asset Securitization Trust Series 2021-Z1, Class A 1.07%, 08/15/2025(a)			141		136,623
Series 2021-Z2, Class A 1.17%, 11/16/2026(a)			135		130,104
Series 2022-X1, Class A 1.75%, 02/15/2027(a)			347		336,840
Atalaya Equipment Leasing Trust Series 2021-1A, Class C 2.69%, 06/15/2028(a)			600		555,907
Cajun Global LLC Series 2021-1, Class A2 3.931%, 11/20/2051(a)			139		115,923
College Ave Student Loans LLC Series 2021-C, Class C 3.06%, 07/26/2055(a)			213		176,938
Conn’s Receivables Funding LLC Series 2021-A, Class A 1.05%, 05/15/2026(a)			99		98,973
Dext ABS LLC Series 2021-1, Class C 2.29%, 09/15/2028(a)			519		454,493
Series 2021-1, Class D 2.81%, 03/15/2029(a)			260		222,658
Diamond Issuer Series 2021-1A, Class B 2.701%, 11/20/2051(a)			566		471,467
Domino’s Pizza Master Issuer LLC Series 2021-1A, Class A2I 2.662%, 04/25/2051(a)			410		328,618
GCI Funding I LLC Series 2021-1, Class A 2.38%, 06/18/2046(a)			264		221,612
Hardee’s Funding LLC Series 2018-1A, Class A23 5.71%, 06/20/2048(a)			327		295,148

34    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1A, Class A2 3.981%, 12/20/2050(a)	U.S.$		983	$	823,985
MVW LLC Series 2021-2A, Class C 2.23%, 05/20/2039(a)			731		640,175
Neighborly Issuer Series 2022-1A, Class A2 3.695%, 01/30/2052(a)			364		290,422
Neighborly Issuer LLC Series 2021-1A, Class A2 3.584%, 04/30/2051(a)			299		244,490
Nelnet Student Loan Trust Series 2021-BA, Class B 2.68%, 04/20/2062(a)			220		170,861
SEB Funding LLC Series 2021-1A, Class A2 4.969%, 01/30/2052(a)			690		577,285
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(a)			1		807
Series 2021-3, Class B 1.66%, 07/20/2031(a)			480		444,300
					7,338,455
Autos - Fixed Rate – 3.5%
ACM Auto Trust Series 2022-1A, Class A 3.23%, 04/20/2029(a)			281		279,912
Avis Budget Rental Car Funding AESOP LLC Series 2017-2A, Class D 4.56%, 03/20/2024(a)			402		399,487
Series 2018-1A, Class A 3.70%, 09/20/2024(a)			920		906,123
Series 2018-2A, Class A 4.00%, 03/20/2025(a)			755		739,120
Carvana Auto Receivables Trust Series 2021-N3, Class C 1.02%, 06/12/2028			313		302,287
Series 2021-N4, Class D 2.30%, 09/11/2028			266		238,796
CPS Auto Receivables Trust Series 2021-C, Class D 1.69%, 06/15/2027(a)			470		425,865
FHF Trust Series 2021-2A, Class A 0.83%, 12/15/2026(a)			192		181,492
Flagship Credit Auto Trust Series 2019-3, Class E 3.84%, 12/15/2026(a)			960		885,380

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1, Class E 3.52%, 06/15/2027(a)	U.S.$		1,000	$	887,294
Ford Credit Auto Owner Trust Series 2021-1, Class D 2.31%, 10/17/2033(a)			542		464,964
Hertz Vehicle Financing III LLC Series 2022-1A, Class C 2.63%, 06/25/2026(a)			450		393,981
Octane Receivables Trust Series 2021-2A, Class C 2.53%, 05/21/2029(a)			541		470,989
Santander Bank Auto Credit-Linked Notes Series 2022-A, Class B 5.281%, 05/15/2032(a)			442		426,488
					7,002,178
Credit Cards - Fixed Rate – 0.5%
Brex Commercial Charge Card Master Trust Series 2021-1, Class A 2.09%, 07/15/2024(a)			397		390,248
Series 2022-1, Class A 4.63%, 07/15/2025(a)			565		544,239
					934,487
Total Asset-Backed Securities (cost $17,050,316)					15,275,120
COLLATERALIZED LOAN OBLIGATIONS – 3.9%
CLO - Floating Rate – 3.9%
AGL CLO 12 Ltd. Series 2021-12A, Class D 7.093% (LIBOR 3 Month + 2.85%), 07/20/2034(a)(c)			500		418,623
Balboa Bay Loan Funding Ltd. Series 2021-1A, Class D 7.293% (LIBOR 3 Month + 3.05%), 07/20/2034(a)(c)			709		593,668
Ballyrock CLO 16 Ltd. Series 2021-16A, Class C 7.143% (LIBOR 3 Month + 2.90%), 07/20/2034(a)(c)			400		334,968
Elevation CLO Ltd. Series 2020-11A, Class D1 7.929% (LIBOR 3 Month + 3.85%), 04/15/2033(a)(c)			1,000		876,538
Elmwood CLO IX Ltd. Series 2021-2A, Class D 7.193% (LIBOR 3 Month + 2.95%), 07/20/2034(a)(c)			700		600,102

36    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Flatiron CLO 21 Ltd. Series 2021-1A, Class D 7.127% (LIBOR 3 Month + 2.90%), 07/19/2034(a)(c)	U.S.$		700	$	625,237
Goldentree Loan Management US CLO 7 Ltd. Series 2020-7A, Class AR 5.313% (LIBOR 3 Month + 1.07%), 04/20/2034(a)(c)			581		554,705
OCP CLO Ltd. Series 2020-18A, Class AR 5.333% (LIBOR 3 Month + 1.09%), 07/20/2032(a)(c)			761		735,433
Peace Park CLO Ltd. Series 2021-1A, Class D 7.193% (LIBOR 3 Month + 2.95%), 10/20/2034(a)(c)			300		255,504
Pikes Peak CLO 8 Series 2021-8A, Class A 5.413% (LIBOR 3 Month + 1.17%), 07/20/2034(a)(c)			675		647,539
Regatta XX Funding Ltd. Series 2021-2A, Class A 5.239% (LIBOR 3 Month + 1.16%), 10/15/2034(a)(c)			1,019		973,461
Rockford Tower CLO Ltd. Series 2021-1A, Class D 7.243% (LIBOR 3 Month + 3.00%), 07/20/2034(a)(c)			711		629,189
Series 2021-2A, Class A1 5.403% (LIBOR 3 Month + 1.16%), 07/20/2034(a)(c)			504		481,676
Voya CLO Ltd. Series 2019-1A, Class DR 6.929% (LIBOR 3 Month + 2.85%), 04/15/2031(a)(c)			210		179,535
Total Collateralized Loan Obligations (cost $8,769,686)					7,906,178
CORPORATES - NON-INVESTMENT GRADE – 3.5%
Industrial – 2.4%
Basic – 0.3%
INEOS Quattro Finance 2 PLC 2.50%, 01/15/2026(a)	EUR		313		258,284
Sealed Air Corp. 4.00%, 12/01/2027(a)	U.S.$		379		339,747
					598,031

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Capital Goods – 0.1%
TK Elevator Midco GmbH 4.375%, 07/15/2027(a)	EUR		181	$	151,366
Communications - Media – 0.6%
Altice Financing SA 3.00%, 01/15/2028(a)			181		136,618
CCO Holdings LLC/CCO Holdings Capital Corp. 4.50%, 08/15/2030(a)	U.S.$		136		110,530
4.50%, 06/01/2033(a)			483		367,896
4.75%, 02/01/2032(a)			146		117,044
DISH DBS Corp. 5.75%, 12/01/2028(a)			322		259,883
Summer BC Holdco B SARL 5.75%, 10/31/2026(a)	EUR		181		154,437
VZ Vendor Financing II BV 2.875%, 01/15/2029(a)			181		131,892
					1,278,300
Communications - Telecommunications – 0.2%
Altice France SA/France 3.375%, 01/15/2028(a)			181		137,285
Lorca Telecom Bondco SA 4.00%, 09/18/2027(a)			181		157,441
					294,726
Consumer Cyclical - Automotive – 0.3%
Adient Global Holdings Ltd. 3.50%, 08/15/2024(a)			181		169,332
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(a)			130		119,690
Ford Motor Co. 6.10%, 08/19/2032	U.S.$		232		212,568
ZF Finance GmbH 3.75%, 09/21/2028(a)	EUR		200		162,579
					664,169
Consumer Cyclical - Entertainment – 0.5%
Carnival Corp. 4.00%, 08/01/2028(a)	U.S.$		712		574,491
Royal Caribbean Cruises Ltd. 11.50%, 06/01/2025(a)			391		420,955
					995,446
Consumer Cyclical - Other – 0.1%
NH Hotel Group SA 4.00%, 07/02/2026(a)	EUR		181		157,060

38    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.2%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 03/15/2029(a)	U.S.$		373	$	308,609
IQVIA, Inc. 2.25%, 03/15/2029(a)	EUR		100		80,086
Organon & Co./Organon Foreign Debt Co-Issuer BV 2.875%, 04/30/2028(a)			100		83,320
					472,015
Services – 0.1%
APCOA Parking Holdings GmbH 4.625%, 01/15/2027(a)			181		144,179
Transportation - Airlines – 0.0%
Deutsche Lufthansa AG 3.00%, 05/29/2026(a)			100		87,013
					4,842,305
Financial Institutions – 1.0%
Banking – 1.0%
Credit Suisse Group AG 7.50%, 07/17/2023(a)(b)	U.S.$		815		722,204
Discover Financial Services Series D 6.125%, 06/23/2025(b)			1,087		1,053,412
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			288		274,968
					2,050,584
Utility – 0.1%
Electric – 0.1%
Vistra Corp. 7.00%, 12/15/2026(a)(b)			218		193,739
Total Corporates - Non-Investment Grade (cost $8,521,894)					7,086,628
EMERGING MARKETS - CORPORATE BONDS – 1.2%
Industrial – 1.2%
Basic – 0.4%
Stillwater Mining Co. 4.00%, 11/16/2026(a)			446		365,107
Vedanta Resources Finance II PLC 13.875%, 01/21/2024(a)			377		314,512
Volcan Cia Minera SAA 4.375%, 02/11/2026(a)			76		63,270
					742,889

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Capital Goods – 0.3%
Embraer Netherlands Finance BV 5.40%, 02/01/2027	U.S.$		540	$	492,514
6.95%, 01/17/2028(a)			219		206,150
Odebrecht Holdco Finance Ltd. Zero Coupon, 09/10/2058(a)			477		1,193
					699,857
Communications - Media – 0.2%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a)			417		322,708
Consumer Cyclical - Other – 0.1%
Wynn Macau Ltd. 5.625%, 08/26/2028(a)			330		194,700
Consumer Non-Cyclical – 0.1%
Natura Cosmeticos SA 4.125%, 05/03/2028(a)			283		219,466
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(e)(h)(i)(j)(k)			660		66
					219,532
Services – 0.1%
MercadoLibre, Inc. 2.375%, 01/14/2026			200		172,913
					2,352,599
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LP 6.125%, 03/01/2026(e)			60		55,220
Financial Institutions – 0.0%
Other Finance – 0.0%
OEC Finance Ltd. 5.25%, 12/27/2033(a)(l)			198		4,137
7.125%, 12/26/2046(a)(l)			248		6,596
					10,733
Total Emerging Markets - Corporate Bonds (cost $3,863,968)					2,418,552
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.9%
United States – 0.9%
State of California Series 2010 7.625%, 03/01/2040			970		1,159,153

40    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Tobacco Settlement Finance Authority/WV Series 2020 3.00%, 06/01/2035	U.S.$		193	$	177,363
University of California Series 2021-B 3.071%, 05/15/2051			730		441,510
Total Local Governments - US Municipal Bonds (cost $2,266,873)					1,778,026
		Shares
COMMON STOCKS – 0.5%
Financials – 0.5%
Insurance – 0.5%
Mt. Logan Re Ltd. (Preference Shares)(h)(j)(k)			944		823,035
Mt. Logan Re Ltd. (Special Investment)(h)(j)(k)			150		125,397
Total Common Stocks (cost $945,040)					948,432
		Principal Amount (000)
EMERGING MARKETS - SOVEREIGNS – 0.4%
Dominican Republic – 0.3%
Dominican Republic International Bond 4.875%, 09/23/2032(a)	U.S.$		763		585,269
Egypt – 0.1%
Egypt Government International Bond 5.875%, 02/16/2031(a)			412		250,496
Total Emerging Markets - Sovereigns (cost $1,163,517)					835,765
QUASI-SOVEREIGNS – 0.3%
Quasi-Sovereign Bonds – 0.3%
Mexico – 0.3%
Comision Federal de Electricidad 3.348%, 02/09/2031(a)			653		480,281
4.688%, 05/15/2029(a)			295		248,593
Total Quasi-Sovereigns (cost $947,945)					728,874

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS - SOVEREIGN BONDS – 0.1%
Colombia – 0.1%
Colombia Government International Bond 3.125%, 04/15/2031 (cost $373,902)	U.S.$		375	$	257,180
SHORT-TERM INVESTMENTS – 2.7%
Governments - Treasuries – 1.6%
Japan – 1.6%
Japan Treasury Discount Bill Series 1105 Zero Coupon, 12/05/2022 (cost $3,279,084)	JPY		471,650		3,172,405
U.S. Treasury Bills – 0.8%
U.S. Treasury Bills Zero Coupon, 10/05/2023 (cost $1,624,500)	U.S.$		1,695		1,624,500
		Shares
Investment Companies – 0.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 2.67%(m)(n)(o) (cost $531,878)			531,878		531,878
Total Short-Term Investments (cost $5,435,462)					5,328,783
Total Investments – 106.6% (cost $242,324,278)					215,072,833
Other assets less liabilities – (6.6)%					(13,378,466	)
Net Assets – 100.0%				$	201,694,367

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		72		December 2022	$	8,350,875	$	(310,084	)
U.S. T-Note 2 Yr (CBT) Futures		43		December 2022		8,788,461		(64,787	)
U.S. Ultra Bond (CBT) Futures		135		December 2022		17,233,594		(3,052,504	)
Sold Contracts
10 Yr Japan Bond (OSE) Futures		7		December 2022		7,003,531		(3,259	)
U.S. T-Note 5 Yr (CBT) Futures		14		December 2022		1,492,313		10,591
							$	(3,420,043	)

42    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

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)
Bank of America, NA	EUR	2,138	USD	2,065		12/08/2022	$	(53,361	)
State Street Bank & Trust Co.	EUR	235	USD	228		11/09/2022		(4,062	)
State Street Bank & Trust Co.	JPY	471,896	USD	3,291		12/02/2022		107,295
State Street Bank & Trust Co.	EUR	227	USD	225		12/08/2022		170
State Street Bank & Trust Co.	USD	262	EUR	262		12/08/2022		(2,224	)
							$	47,818

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)		Market Value		Upfront Premiums Paid/ (Received)		Unrealized Appreciation (Depreciation)
Buy Contracts
CDX-NAHY Series 39, 5 Year Index, 12/20/2027*		(5.00	)%		Quarterly		5.19	%	USD	7,540	$	13,733	$	165,312	$	(151,579	)

* 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

2,000

12/13/2029

1.764

%

3 Month LIBOR

Semi-Annual/ Quarterly

$

285,118

$

– 0

–

$

285,118

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	4	$	(792	)	$	(526	)	$	(266	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	4		(793	)		(421	)		(372	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	8		(1,743	)		(976	)		(767	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	9		(2,061	)		(1,025	)		(1,036	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	10		(2,219	)		(931	)		(1,288	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	18		(3,962	)		(2,167	)		(1,795	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	1,317		(298,257	)		(50,293	)		(247,964	)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2022			Notional Amount (000)			Market Value			Upfront Premiums Paid/ (Received)			Unrealized Appreciation (Depreciation)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	3	$	(634	)	$	(299	)	$	(335	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	36		(8,241	)		(3,984	)		(4,257	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	32		(7,291	)		(1,726	)		(5,565	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	127		(28,687	)		(13,528	)		(15,159	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	225		(51,035	)		(26,523	)		(24,512	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	522		(118,079	)		(34,131	)		(83,948	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	18		(4,121	)		(1,523	)		(2,598	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	36		(8,241	)		(3,357	)		(4,884	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	36		(8,242	)		(3,103	)		(5,139	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	73		(16,483	)		(7,339	)		(9,144	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	182		(41,208	)		(23,130	)		(18,078	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	249		(56,424	)		(24,793	)		(31,631	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	218		(49,292	)		(17,567	)		(31,725	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		7.50			USD	21		(4,755	)		(1,913	)		(2,842	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		7.50	%		USD	22		(5,072	)		(2,041	)		(3,031	)
												$	(717,632	)	$	(221,296	)	$	(496,336	)

* Termination date

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
JPMorgan Chase Bank, NA iBoxx $ Liquid High Yield Index		1 Day SOFR		Maturity		USD	13,067		12/20/2022	$	77,182

(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, 2022, the aggregate market value of these securities amounted to $75,385,558 or 37.4% 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, 2022.

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

44    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(e) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 1.26% of net assets as of October 31, 2022, 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 7.884%, 09/25/2047		01/07/2020	$	731,514	$	550,979		0.27	%
GSF Series 2021-1, Class A1 1.433%, 08/15/2026		02/25/2021		268,639		257,077		0.13	%
GSF Series 2021-1, Class A2 2.435%, 08/15/2026		02/25/2021		737,027		677,725		0.34	%
GSF Series 2021-1, Class AS 2.638%, 08/15/2026		02/25/2021		25,531		23,060		0.01	%
HFX Funding Issuer Series 2017-1A, Class A3 3.647%, 03/15/2035		11/19/2020		756,057		645,600		0.32	%
JPMorgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 7.836%, 11/25/2024		11/06/2015		19,844		19,105		0.01	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 5.946%, 02/27/2023		11/16/2015		171,746		161,866		0.08	%
Terraform Global Operating LP 6.125%, 03/01/2026		02/08/2018		60,000		55,220		0.03	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		365,927		66		0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 8.836%, 11/25/2025		09/28/2015		123,861		111,812		0.06	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 2M2 9.086%, 11/25/2025		09/28/2015		28,753		26,917		0.01	%

(f) IO – Interest Only.

(g) Inverse interest only security.

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

(i) Defaulted matured security.

(j) Non-income producing security.

(k) Fair valued by the Adviser.

(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, 2022.

(m) Affiliated investments.

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

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

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

Currency Abbreviations:

EUR – Euro

JPY – Japanese Yen

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

ARMs – Adjustable Rate Mortgages

CBT – Chicago Board of Trade

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

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

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

OSE – Osaka Securities Exchange

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

TBA – To Be Announced

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

46    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2022

Assets
Investments in securities, at value
Unaffiliated issuers (cost $241,792,400)	$	214,540,955
Affiliated issuers (cost $531,878)		531,878
Cash		96,049
Cash collateral due from broker		2,501,854
Foreign currencies, at value (cost $1,430)		1,429
Receivable for investment securities sold		5,098,397
Unaffiliated interest and dividends receivable		1,376,275
Unrealized appreciation on forward currency exchange contracts		107,465
Unrealized appreciation on total return swaps		77,182
Receivable for capital stock sold		64,646
Receivable for variation margin on centrally cleared swaps		59,221
Affiliated dividends receivable		2,385
Total assets		224,457,736
Liabilities
Payable for investment securities purchased and foreign currency transactions		20,982,375
Market value on credit default swaps (net premiums received $221,296)		717,632
Payable for variation margin on futures		299,798
Payable for capital stock redeemed		205,047
Dividends payable		99,921
Unrealized depreciation on forward currency exchange contracts		59,647
Distribution fee payable		32,743
Administrative fee payable		31,456
Foreign capital gains tax payable		25,257
Transfer Agent fee payable		21,352
Advisory fee payable		15,633
Directors’ fees payable		1,714
Accrued expenses		270,794
Total liabilities		22,763,369
Net Assets	$	201,694,367
Composition of Net Assets
Capital stock, at par	$	22,347
Additional paid-in capital		255,821,214
Accumulated loss		(54,149,194	)
Net Assets	$	201,694,367

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	$	148,009,341		16,400,757	$	9.02	*
C	$	2,932,210		325,706	$	9.00
Advisor	$	45,094,853		4,994,464	$	9.03
R	$	379,253		42,040	$	9.02
K	$	2,286,512		253,181	$	9.03
I	$	758,054		83,895	$	9.04
Z	$	2,234,144		247,061	$	9.04

* The maximum offering price per share for Class A shares was $9.42 which reflects a sales charge of 4.25%.

See notes to financial statements.

48    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2022

Investment Income
Interest	$	8,470,785
Dividends—Affiliated issuers		23,110
Other income		692		$	8,494,587
Expenses
Advisory fee (see Note B)		1,177,405
Distribution fee—Class A		440,324
Distribution fee—Class C		42,088
Distribution fee—Class R		2,622
Distribution fee—Class K		7,911
Transfer agency—Class A		234,077
Transfer agency—Class C		5,808
Transfer agency—Advisor Class		97,893
Transfer agency—Class R		1,364
Transfer agency—Class K		6,329
Transfer agency—Class I		1,035
Transfer agency—Class Z		871
Custody and accounting		125,291
Audit and tax		110,557
Registration fees		109,197
Administrative		94,772
Printing		64,228
Legal		36,330
Directors’ fees		21,019
Miscellaneous		24,967
Total expenses		2,604,088
Less: expenses waived and reimbursed by the Adviser (see Note B)		(747,132	)
Net expenses					1,856,956
Net investment income					6,637,631
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					(13,228,794	)
Forward currency exchange contracts					257,303
Futures					(12,782,906	)
Swaps					111,479
Foreign currency transactions					435,473
Net change in unrealized appreciation (depreciation) of:
Investments(b)					(30,661,430	)
Forward currency exchange contracts					536,254
Futures					(2,986,620	)
Swaps					2,506,101
Foreign currency denominated assets and liabilities					(7,511	)
Net loss on investment and foreign currency transactions					(55,820,651	)
Net Decrease in Net Assets from Operations				$	(49,183,020	)

(a) Net of foreign realized capital gains taxes of $7,842.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $4,925.

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    49

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2022			Year Ended October 31, 2021
Increase (Decrease) in Net Assets from Operations
Net investment income	$	6,637,631		$	8,338,453
Net realized gain (loss) on investment and foreign currency transactions		(25,207,445	)		679,101
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities		(30,613,206	)		(4,297,312	)
Net increase (decrease) in net assets from operations		(49,183,020	)		4,720,242
Distributions to Shareholders
Class A		(4,807,761	)		(8,026,732	)
Class C		(82,043	)		(258,221	)
Advisor Class		(2,147,910	)		(4,899,949	)
Class R		(13,004	)		(46,797	)
Class K		(86,491	)		(237,994	)
Class I		(36,415	)		(92,889	)
Class Z		(83,929	)		(208,684	)
Capital Stock Transactions
Net decrease		(65,036,414	)		(41,446,404	)
Total decrease		(121,476,987	)		(50,497,428	)
Net Assets
Beginning of period		323,171,354			373,668,782
End of period	$	201,694,367		$	323,171,354

See notes to financial statements.

50    ^|    AB TOTAL RETURN  BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2022

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 convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Company’s Board of Directors

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NOTES TO FINANCIAL STATEMENTS (continued)

(the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.

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

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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 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

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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, 2022:

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Corporates—Investment Grade

$

– 0

–

$

50,217,825

$

– 0

–

$

50,217,825

Mortgage Pass-Throughs

– 0

–

40,504,052

– 0

–

40,504,052

Governments—Treasuries

– 0

–

34,984,372

– 0

–

34,984,372

Collateralized Mortgage Obligations

– 0

–

27,763,959

– 0

–

27,763,959

Commercial Mortgage-Backed Securities

– 0

–

18,081,225

957,862

19,039,087

Asset-Backed Securities

– 0

–

15,275,120

– 0

–

15,275,120

Collateralized Loan Obligations

– 0

–

7,906,178

– 0

–

7,906,178

Corporates—Non-Investment Grade

– 0

–

7,086,628

– 0

–

7,086,628

Emerging Markets—Corporate Bonds

– 0

–

2,418,486

66

2,418,552

Local Governments—US Municipal Bonds

– 0

–

1,778,026

– 0

–

1,778,026

Common Stocks

– 0

–

– 0

–

948,432

948,432

Emerging Markets—Sovereigns

– 0

–

835,765

– 0

–

835,765

Quasi-Sovereigns

– 0

–

728,874

– 0

–

728,874

Governments—Sovereign Bonds

– 0

–

257,180

– 0

–

257,180

Short-Term Investments:

Governments—Treasuries

– 0

–

3,172,405

– 0

–

3,172,405

U.S. Treasury Bills

– 0

–

1,624,500

– 0

–

1,624,500

Investment Companies

531,878

– 0

–

– 0

–

531,878

Total Investments in Securities

531,878

212,634,595

1,906,360

215,072,833

Other Financial Instruments(a):

Assets:

Futures

10,591

– 0

–

– 0

–

10,591

(b)

Forward Currency Exchange Contracts

– 0

–

107,465

– 0

–

107,465

Centrally Cleared Credit Default Swaps

– 0

–

13,733

– 0

–

13,733

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

285,118

– 0

–

285,118

(b)

Total Return Swaps

– 0

–

77,182

– 0

–

77,182

Liabilities:

Futures

(3,430,634

)

– 0

–

– 0

–

(3,430,634

)(b)

Forward Currency Exchange Contracts

– 0

–

(59,647

)

– 0

–

(59,647

)

Credit Default Swaps

– 0

–

(717,632

)

– 0

–

(717,632

)

Total

$

(2,888,165

)

$

212,340,814

$

1,906,360

$

211,359,009

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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, written options and written swaptions 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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5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

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%,

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NOTES TO FINANCIAL STATEMENTS (continued)

.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, 2023 and then may be extended by the Adviser for additional one year terms. For the year ended October 31, 2022, such reimbursements/waivers amounted to $744,489.

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, 2022, the reimbursement for such services amounted to $94,772.

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 $135,577 for the year ended October 31, 2022.

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 $2,015 from the sale of Class A shares and received $390 and $176 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2022.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2022, such waiver amounted to $2,643.

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NOTES TO FINANCIAL STATEMENTS (continued)

Fund	Market Value 10/31/21 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/22 (000)		Dividend Income (000)
Government Money Market Portfolio	$	5,229	$	131,825	$	136,522	$	532	$	23

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on 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 $1,212,198, $149,361 and $69,059 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, 2022 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	47,565,811	$	106,055,603
U.S. government securities		324,592,347		323,192,024

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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	$	242,597,699
Gross unrealized appreciation	$	4,913,896
Gross unrealized depreciation		(31,804,342	)
Net unrealized depreciation	$	(26,890,446	)

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

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NOTES TO FINANCIAL STATEMENTS (continued)

realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

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

During the year ended October 31, 2022, 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, 2022, 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 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

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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 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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

Interest Rate Swaps:

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

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

During the year ended October 31, 2022, 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

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NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, 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 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

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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, 2022, 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, 2022, 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

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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, 2022, 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	$	10,591	*	Receivable/Payable for variation margin on futures	$	3,430,634	*
Credit contracts					Receivable/Payable for variation margin on centrally cleared swaps		151,579	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		285,118	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		107,465		Unrealized depreciation on forward currency exchange contracts		59,647
Credit contracts					Market value on credit default swaps		717,632
Credit contracts	Unrealized appreciation on total return swaps		77,182
Total		$	480,356			$	4,359,492

* 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	$	(12,782,906	)	$	(2,986,620	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts		257,303			536,254
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		(174,552	)		587,252
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps		286,031			1,918,849
Total		$	(12,414,124	)	$	55,735

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2022:

Futures:
Average notional amount of buy contracts	$	80,419,871
Average notional amount of sale contracts	$	10,542,469	(a)
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	6,132,074	(b)
Average principal amount of sale contracts	$	16,017,337
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	6,535,961
Centrally Cleared Inflation Swaps:
Average notional amount	$	8,680,000	(c)
Credit Default Swaps:
Average notional amount of buy contracts	$	8,228,000	(c)
Average notional amount of sale contracts	$	7,181,432
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	3,661,240	(d)
Average notional amount of sale contracts	$	2,790,480	(e)
Total Return Swaps:
Average notional amount	$	14,750,769

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

(b) Positions were open for ten months during the year.

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

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(d) Positions were open for nine months during the year.

(e) 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, 2022. 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
JPMorgan Chase Bank, NA	$	77,182	$	(9,827)	$	– 0	–	$	– 0	–	$	67,355
State Street Bank & Trust Co.		107,465		(6,286)		– 0	–		– 0	–		101,179
Total	$	184,647	$	(16,113)	$	– 0	–	$	– 0	–	$	168,534	^

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	$	53,361	$	– 0	–	$	– 0	–	$	– 0	–	$	53,361
Citigroup Global Markets, Inc.		11,570		– 0	–		– 0	–		(10,614	)		956
Credit Suisse International		298,257		– 0	–		(298,257	)		– 0	–		– 0	–
Deutsche Bank AG		213,967		– 0	–		(160,000	)		(53,967	)		– 0	–
Goldman Sachs International		184,011		– 0	–		– 0	–		(175,164	)		8,847
JPMorgan Securities, LLC		9,827		(9,827	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		6,286		(6,286	)		– 0	–		– 0	–		– 0	–
Total	$	777,279	$	(16,113	)	$	(458,257	)	$	(239,745	)	$	63,164	^

* 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

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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, 2022, the Fund earned drop income of $256,251 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, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class A
Shares sold		929,521			739,035		$	9,353,366		$	8,403,048
Shares issued in reinvestment of dividends and distributions		364,650			554,374			3,695,818			6,322,222
Shares converted from Class C		49,952			217,654			508,929			2,459,656
Shares redeemed		(3,002,913	)		(2,926,511	)		(30,472,715	)		(33,270,087	)
Net decrease		(1,658,790	)		(1,415,448	)	$	(16,914,602	)	$	(16,085,161	)
Class C
Shares sold		40,910			60,727		$	437,289		$	693,436
Shares issued in reinvestment of dividends and distributions		5,570			17,026			56,773			194,209
Shares converted to Class A		(50,067	)		(218,074	)		(508,929	)		(2,459,656	)
Shares redeemed		(176,908	)		(234,007	)		(1,851,176	)		(2,658,869	)
Net decrease		(180,495	)		(374,328	)	$	(1,866,043	)	$	(4,230,880	)
Advisor Class
Shares sold		1,499,468			3,650,665		$	15,464,781		$	41,660,646
Shares issued in reinvestment of dividends and distributions		127,534			193,069			1,299,268			2,202,877
Shares redeemed		(5,768,375	)		(5,296,425	)		(58,783,641	)		(59,900,768	)
Net decrease		(4,141,373	)		(1,452,691	)	$	(42,019,592	)	$	(16,037,245	)
Class R
Shares sold		11,636			66,576		$	117,057		$	762,932
Shares issued in reinvestment of dividends and distributions		1,252			4,045			12,771			46,179
Shares redeemed		(37,202	)		(160,662	)		(390,075	)		(1,835,776	)
Net decrease		(24,314	)		(90,041	)	$	(260,247	)	$	(1,026,665	)

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	Shares						Amount
	Year Ended October 31, 2022			Year Ended October 31, 2021			Year Ended October 31, 2022			Year Ended October 31, 2021
Class K
Shares sold		37,277			107,358		$	396,322		$	1,232,269
Shares issued in reinvestment of dividends and distributions		8,318			20,756			85,557			236,904
Shares redeemed		(301,853	)		(188,986	)		(3,321,684	)		(2,142,508	)
Net decrease		(256,258	)		(60,872	)	$	(2,839,805	)	$	(673,335	)
Class I
Shares sold		66,379			32,838		$	713,418		$	375,668
Shares issued in reinvestment of dividends and distributions		3,525			7,551			36,042			86,280
Shares redeemed		(147,406	)		(116,547	)		(1,550,300	)		(1,333,364	)
Net decrease		(77,502	)		(76,158	)	$	(800,840	)	$	(871,416	)
Class Z
Shares sold		115,633			293,258		$	1,259,347		$	3,349,932
Shares issued in reinvestment of dividends and distributions		8,088			18,055			82,522			206,201
Shares redeemed		(159,928	)		(532,260	)		(1,677,154	)		(6,077,835	)
Net decrease		(36,207	)		(220,947	)	$	(335,285	)	$	(2,521,702	)

NOTE F

Risks Involved in Investing in the Fund

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

Interest-Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the end of a recent period of historically low rates and the effect of potential

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government fiscal policy initiatives and resulting market reaction to those initiatives.

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

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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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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument, which could cause the Fund to suffer a (potentially unlimited) loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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

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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 utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. 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. Since 2018 the Federal Reserve Bank of New York has published the secured overnight funding rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and has been used increasingly on a voluntary basis in new instruments and transactions. In addition, on March 15, 2022, the Adjustable Interest Rate Act was signed into law. This law provides a statutory fallback mechanism to replace LIBOR with a benchmark rate that is selected by the Federal Reserve Board and based on SOFR for certain contracts that reference LIBOR without adequate fallback provisions.

The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing

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and diminished effectiveness of hedging strategies, potentially adversely affecting a Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Neither the effect of the LIBOR transition process nor its ultimate success can yet be known.

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, 2022.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

	2022		2021
Distributions paid from:
Ordinary income	$	6,753,143	$	7,517,670
Net long-term capital gains		504,410		6,253,596
Total taxable distributions paid	$	7,257,553	$	13,771,266

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As of October 31, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$          962,859
Accumulated capital and other losses	(27,748,267	)(a)
Unrealized appreciation (depreciation)	(26,897,218	)(b)
Total accumulated earnings/(deficit)	$    (53,682,626	)(c)

(a) As of October 31, 2022, the Fund had a net capital loss carryforward of $27,748,267.

(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 callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

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

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2022, the Fund had a net short-term capital loss carryforward of $14,599,025 and a net long-term capital loss carryforward of $13,149,242, which may be carried forward for an indefinite period.

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 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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.25			$  11.53			$  11.35			$  10.65			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.26			.25			.29			.33			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.21	)		(.11	)		.22			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.95	)		.14			.51			1.07			(.19	)
Less: Dividends and Distributions
Dividends from net investment income		(.26	)		(.28	)		(.33	)		(.37	)		(.27	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.28	)		(.42	)		(.33	)		(.37	)		(.27	)
Net asset value, end of period		$  9.02			$  11.25			$  11.53			$  11.35			$  10.65
Total Return
Total investment return based on net asset value(d)		(17.57	)%		1.22	%		4.60	%		10.23	%		(1.75	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$148,009			$203,168			$224,484			$221,033			$216,950
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.77	%
Expenses, before waivers/reimbursements		1.06	%		.99	%		.99	%		1.04	%		1.01	%
Net investment income(b)		2.51	%		2.23	%		2.58	%		2.98	%		2.29	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.23			$  11.50			$  11.32			$  10.63			$  11.08
Income From Investment Operations
Net investment income(a)(b)		.17			.17			.21			.25			.17
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.19	)		(.11	)		.22			.73			(.43	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(2.02	)		.06			.43			.98			(.26	)
Less: Dividends and Distributions
Dividends from net investment income		(.19	)		(.19	)		(.25	)		(.29	)		(.19	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.21	)		(.33	)		(.25	)		(.29	)		(.19	)
Net asset value, end of period		$  9.00			$  11.23			$  11.50			$  11.32			$  10.63
Total Return
Total investment return based on net asset value(d)		(18.22	)%		.55	%		3.83	%		9.33	%		(2.40	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,932			$5,682			$10,128			$10,564			$11,334
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.52	%		1.52	%
Expenses, before waivers/reimbursements		1.81	%		1.74	%		1.75	%		1.79	%		1.76	%
Net investment income(b)		1.69	%		1.51	%		1.84	%		2.24	%		1.54	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.26			$  11.53			$  11.35			$  10.65			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.28			.28			.32			.35			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.20	)		(.10	)		.22			.75			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.92	)		.18			.54			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$  9.03			$  11.26			$  11.53			$  11.35			$  10.65
Total Return
Total investment return based on net asset value(d)		(17.44	)%		1.56	%		4.86	%		10.50	%		(1.50	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$45,095			$102,827			$122,108			$104,850			$76,406
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements		.80	%		.74	%		.74	%		.79	%		.76	%
Net investment income(b)		2.66	%		2.47	%		2.82	%		3.21	%		2.55	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.25			$  11.52			$  11.34			$  10.65			$  11.10
Income From Investment Operations
Net investment income(a)(b)		.23			.23			.26			.30			.23
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.20	)		(.11	)		.22			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.97	)		.12			.48			1.04			(.21	)
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.25	)		(.30	)		(.35	)		(.24	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.26	)		(.39	)		(.30	)		(.35	)		(.24	)
Net asset value, end of period		$  9.02			$  11.25			$  11.52			$  11.34			$  10.65
Total Return
Total investment return based on net asset value(d)		(17.78	)%		1.04	%		4.33	%		9.86	%		(1.90	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$379			$746			$1,802			$3,298			$2,814
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Expenses, before waivers/reimbursements		1.43	%		1.37	%		1.37	%		1.42	%		1.35	%
Net investment income(b)		2.21	%		1.99	%		2.34	%		2.73	%		2.07	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.26			$  11.54			$  11.36			$  10.66			$  11.11
Income From Investment Operations
Net investment income(a)(b)		.25			.25			.29			.33			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.20	)		(.11	)		.22			.74			(.43	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.95	)		.14			.51			1.07			(.18	)
Less: Dividends and Distributions
Dividends from net investment income		(.26	)		(.28	)		(.33	)		(.37	)		(.27	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.28	)		(.42	)		(.33	)		(.37	)		(.27	)
Net asset value, end of period		$  9.03			$  11.26			$  11.54			$  11.36			$  10.66
Total Return
Total investment return based on net asset value(d)		(17.56	)%		1.22	%		4.59	%		10.22	%		(1.66	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,287			$5,736			$6,580			$7,444			$7,863
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.77	%
Expenses, before waivers/reimbursements		1.12	%		1.06	%		1.07	%		1.10	%		1.08	%
Net investment income(b)		2.41	%		2.24	%		2.59	%		2.98	%		2.32	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    81

FINANCIAL HIGHLIGHTS (continued)

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

	Class I
	Year Ended October 31,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.27			$  11.55			$  11.36			$  10.66			$  11.12
Income From Investment Operations
Net investment income(a)(b)		.28			.28			.32			.36			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.20	)		(.11	)		.23			.74			(.44	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.92	)		.17			.55			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$  9.04			$  11.27			$  11.55			$  11.36			$  10.66
Total Return
Total investment return based on net asset value(d)		(17.44	)%		1.46	%		4.93	%		10.50	%		(1.50	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$758			$1,819			$2,743			$4,107			$2,894
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements		.75	%		.68	%		.70	%		.75	%		.72	%
Net investment income(b)		2.67	%		2.48	%		2.85	%		3.22	%		2.57	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

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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,
	2022			2021			2020			2019			2018
Net asset value, beginning of period		$  11.27			$  11.55			$  11.37			$  10.67			$  11.13
Income From Investment Operations
Net investment income(a)(b)		.28			.29			.32			.36			.27
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(2.20	)		(.12	)		.22			.74			(.43	)
Contributions from Affiliates		– 0	–		– 0	–		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		(1.92	)		.17			.54			1.10			(.16	)
Less: Dividends and Distributions
Dividends from net investment income		(.29	)		(.31	)		(.36	)		(.40	)		(.30	)
Distributions from net realized gain on investment transactions		(.02	)		(.14	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.31	)		(.45	)		(.36	)		(.40	)		(.30	)
Net asset value, end of period		$  9.04			$  11.27			$  11.55			$  11.37			$  10.67
Total Return
Total investment return based on net asset value(d)		(17.34	)%		1.46	%		4.84	%		10.48	%		(1.49	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,234			$3,193			$5,824			$8,059			$7,274
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.52	%		.52	%
Expenses, before waivers/reimbursements		.70	%		.64	%		.64	%		.68	%		.64	%
Net investment income(b)		2.70	%		2.51	%		2.82	%		3.22	%		2.48	%
Portfolio turnover rate**		141	%		128	%		83	%		74	%		195	%

See footnote summary on page 84.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    83

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.

** 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 (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2022, 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, 2022, 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

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    85

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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 28, 2022

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2022 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, 2022. For foreign shareholders, 87.64% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

The Fund designates $504,410 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 2023.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    87

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⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Janaki Rao⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Vice President 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.

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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 46 (2021)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, 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. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, 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.		75	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 81 (2005)	Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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.		75	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,## 71 (2020)	Private Investor since prior to 2017. 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.		75	Moody’s Corporation since April 2011
Michael J. Downey,## 78 (2005)	Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 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.		75	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,## 74 (2006)	Private Investor since prior to 2017. 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.		75	None
Jeanette W. Loeb,## 70 (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.		75	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,## 67 (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.		75	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,## 70 (2008)	Private Investor since prior to 2017. 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 Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council, where he serves as Chairman of its Governance Committee. He has served as a director or trustee and as Chairman of the Audit Committees of the AB Funds since 2008.		75	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.

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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 46	President and Chief Executive Officer	See biography above.
Michael Canter 53	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Director and Chief Investment Officer - Securitized Assets.
Janaki Rao 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2017. He is also Director of US Multi-Sector Fixed-Income Portfolios.
Emilie D. Wrapp 67	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2017.
Michael B. Reyes 46	Senior Vice President	Vice President of the Adviser**, with which has been associated since prior to 2017.
Joseph J. Mantineo 63	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2017.
Phyllis J. Clarke 61	Controller	Vice President of ABIS**, with which she has been associated since prior to 2017.
Vincent S. Noto 58	Chief Compliance Officer	Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2017.

* 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 2022, which covered the period January 1, 2021 through December 31, 2021 (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, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID-19 impacts. As such, the program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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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 2-4, 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

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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 2019 and 2020 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, 2021 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. Taking into account the administrative expense reimbursement paid to the Adviser in the latest fiscal year, the directors noted that the Adviser’s total rate of compensation was close to the median.

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 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 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 Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

GROWTH

Concentrated International Growth Portfolio

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

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 Portfolio

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

EXCHANGE-TRADED FUNDS

Tax-Aware Short Duration Municipal ETF

Ultra Short Income ETF

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

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

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NOTES

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AB TOTAL RETURN BOND PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TRB-0151-1022                

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	2021	$	84,906	$	—	$	17,169
	2022	$	89,151	$	—	$	18,082
AB Bond Inflation Strategy	2021	$	96,097	$	—	$	25,664
	2022	$	100,902	$	—	$	19,649
AB Municipal Bond Inflation Strategy	2021	$	69,532	$	—	$	16,235
	2022	$	73,009	$	—	$	16,920
AB All Market Real Return	2021	$	87,794	$	—	$	62,754
	2022	$	92,184	$	—	$	43,438
AB Short Duration Income	2021	$	41,281	$	—	$	30,840
	2022	$	43,345	$	—	$	18,858
AB Tax Aware Fixed Income	2021	$	36,060	$	—	$	24,797
	2022	$	37,863	$	—	$	21,391
AB Income	2021	$	121,160	$	—	$	39,544
	2022	$	127,218	$	—	$	28,500
AB Sustainable Thematic Credit	2021	$	33,750	$	—	$	11,900
	2022	$	47,250	$	—	$	15,998
AB High Yield	2021	$	111,951	$	3,000	$	22,569
	2022	$	117,549	$	—	$	23,009

(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	2021	$	1,078,309	$	17,169
				$	—
				$	(17,169	)
	2022	$	1,950,540	$	18,082
				$	—
				$	(18,082	)
AB Bond Inflation Strategy	2021	$	1,086,804	$	25,664
				$	—
				$	(25,664	)
	2022	$	1,952,107	$	19,649
				$	—
				$	(19,649	)
AB Municipal Bond Inflation Strategy	2021	$	1,077,375	$	16,235
				$	—
				$	(16,235	)
	2022	$	1,949,378	$	16,920
				$	—
				$	(16,920	)
AB All Market Real Return	2021	$	1,123,894	$	62,754
				$	—
				$	(62,754	)
	2022	$	1,975,896	$	43,438
				$	—
				$	(43,438	)
AB Short Duration Income	2021	$	1,091,980	$	30,840
				$	—
				$	(30,840	)
	2022	$	1,951,316	$	18,858
				$	—
				$	(18,858	)
AB Tax Aware Fixed Income	2021	$	1,085,937	$	24,797
				$	—
				$	(24,797	)
	2022	$	1,953,849	$	21,391
				$	—
				$	(21,391	)
AB Income	2021	$	1,100,684	$	39,544
				$	—
				$	(39,544	)
	2022	$	1,960,958	$	28,500
				$	—
				$	(28,500	)
AB Sustainable Thematic Credit	2021	$	1,073,040	$	11,900
				$	—
				$	(11,900	)
	2022	$	1,948,456	$	15,998
				$	—
				$	(15,998	)
AB High Yield	2021	$	1,086,709	$	25,569
				$	(3,000	)
				$	(22,569	)
	2022	$	1,955,467	$	23,009
				$	—
				$	(23,009	)

(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 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, 2022

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, 2022
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer
Date: December 30, 2022

EX-99.CODE ETH

Exhibit 12(a) (1)

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS

I. Covered Officers/Purpose of the Code

The AllianceBernstein Mutual Fund Complex’s code of ethics (this “Code”) for the investment companies within the complex (collectively, the “Funds” and each, a “Company”) applies to each Company’s Principal Executive Officer, Principal Financial and Accounting Officer and Controller (the “Covered Officers,” each of whom is set forth in Exhibit A) for the purpose of promoting:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Company;

• compliance with applicable laws and governmental rules and regulations;

• the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A “conflict of interest” occurs when a Covered Officer’s private interest interferes with the interests of, or his service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Company. For the purposes of this Code, members of the Covered Officer’s family include his or her spouse, children, stepchildren, financial dependents, parents and stepparents.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 (“Investment Company Act”) and the Investment Advisers Act of 1940 (“Investment Advisers Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as “affiliated persons” of the Company. The Company’s and the investment adviser’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Company and the investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Company’s Board of Directors or Trustees (the “Directors”) that the Covered Officers may also be officers or employees of one or more of the other Funds or of other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

Each Covered Officer must:

• not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

• not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Company;

• not use material non-public knowledge of portfolio transactions made or contemplated for the Company to trade personally or cause others to trade personally in contemplation of the market effect of such transactions;

2

There are some conflict of interest situations, whether involving a Covered Officer directly or a member of his family, that should always be discussed with the General Counsel of Alliance Capital Management L.P. (the “General Counsel”), if material. Examples of these include:

• service as a director on the board of directors or trustees of any public or private company (other than a not-for-profit organization);

• the receipt of any non-nominal gifts;

• the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

• any ownership interest in, or any consulting or employment relationship with, any of the Company’s service providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof;

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

III. Disclosure and Compliance

• Each Covered Officer should familiarize himself with the disclosure requirements and disclosure controls and procedures generally applicable to the Company;

• each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company’s directors and auditors, and to governmental regulators and self-regulatory organizations;

• each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and

3

• it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV. Reporting and Accountability

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the General Counsel that he has received, read, and understands the Code;

• annually thereafter affirm to the General Counsel that he has complied with the requirements of the Code;

• complete at least annually a questionnaire relating to affiliations or other relationships that may give rise to conflicts of interest;

• not retaliate against any other Covered Officer or any employee of the Company or their affiliated persons for reports of potential violations that are made in good faith; and

• notify the General Counsel promptly if he knows of any violation of this Code. Failure to do so is itself a violation of this Code.

The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, waivers sought by a Covered Officer will be considered by the Company’s Audit Committee (the “Committee”).

The Company will follow these procedures in investigating and enforcing this Code:

• the General Counsel will take all appropriate action to investigate any potential violations reported to him;

• if, after such investigation, the General Counsel believes that no material violation has occurred, the General Counsel is not required to take any further action;

• any matter that the General Counsel believes is a material violation will be reported to the Committee;

• if the Committee concurs that a material violation has occurred, it will inform and make a recommendation to the Directors, who will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

• the Committee will be responsible for granting waivers, as appropriate; and

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

4

V. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Company for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Company, the Company’s adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, it is understood that this Code is in all respects separate and apart from, and operates independently of, any such policies and procedures. In particular, the Company’s and its investment adviser’s and principal underwriter's codes of ethics under Rule 17j-l under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

VI. Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Directors, including a majority of independent directors.

VII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Directors, the investment adviser, their counsel, counsel to the Company and, if deemed appropriate by the Directors of the Company, to the Directors of the other Funds.

VIII.  Internal  Use

The Code is intended solely for internal use by the Funds and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion.

Date: July 22, 2003, as amended March 17, 2004

5

Exhibit A

Persons Covered by this Code of Ethics

Principal Executive Officer

Principal Financial and Accounting Officer

Controller

6

EX-99.CERT

Exhibit 12(b)(1)

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Onur Erzan, President of AB Bond Fund, Inc., certify that:

1. I have reviewed this report on Form N-CSR of AB Bond Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 30, 2022

/s/ Onur Erzan

Onur Erzan

President

Exhibit 12(b)(2)

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Joseph J. Mantineo, Treasurer and Chief Financial Officer of AB Bond Fund, Inc., certify that:

1. I have reviewed this report on Form N-CSR of AB Bond Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information ; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 30, 2022

/s/ Joseph J. Mantineo

Joseph J. Mantineo

Treasurer and Chief Financial Officer

EX-99.906 CERT

EXHIBIT 12(c)

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT

Pursuant to 18 U.S.C. 1350, each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of AB Bond Fund, Inc. (the “Registrant”), hereby certifies that the Registrant’s report on Form N-CSR for the period ended October 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: December 30, 2022

By:	/s/ Onur Erzan
	Onur Erzan
	President
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.