AB Sustainable Thematic Balanced Portfolio
Portfolio of Investments
May 31, 2024 (unaudited)
Company | Shares | U.S. $ Value | ||||||
COMMON STOCKS 58.5% |
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Information Technology 23.3% |
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Communications Equipment 1.0% |
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Arista Networks, Inc.(a) |
3,265 | $ | 971,827 | |||||
GCI Liberty, Inc.(a) (b) (c) |
486 | 0 | ||||||
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971,827 | ||||||||
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Electronic Equipment, Instruments & Components 4.9% |
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Flex Ltd.(a) |
62,968 | 2,086,130 | ||||||
Keysight Technologies, Inc.(a) |
9,622 | 1,332,455 | ||||||
TE Connectivity Ltd. |
8,822 | 1,320,653 | ||||||
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4,739,238 | ||||||||
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IT Services 1.2% |
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Accenture PLC - Class A |
4,024 | 1,135,935 | ||||||
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Semiconductors & Semiconductor Equipment 7.5% |
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Monolithic Power Systems, Inc. |
1,588 | 1,168,181 | ||||||
NVIDIA Corp. |
3,007 | 3,296,664 | ||||||
NXP Semiconductors NV |
5,533 | 1,505,529 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Sponsored ADR) |
8,327 | 1,257,710 | ||||||
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7,228,084 | ||||||||
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Software 8.7% |
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Adobe, Inc.(a) |
2,949 | 1,311,597 | ||||||
Bentley Systems, Inc. - Class B |
13,029 | 654,577 | ||||||
Fair Isaac Corp.(a) |
1,015 | 1,309,279 | ||||||
Intuit, Inc. |
2,495 | 1,438,218 | ||||||
Microsoft Corp. |
5,609 | 2,328,464 | ||||||
Palo Alto Networks, Inc.(a) |
4,337 | 1,279,025 | ||||||
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8,321,160 | ||||||||
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22,396,244 | ||||||||
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Health Care 13.3% |
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Health Care Equipment & Supplies 5.9% |
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Alcon, Inc. |
15,722 | 1,401,302 | ||||||
Becton Dickinson & Co. |
5,909 | 1,370,711 | ||||||
GE Healthcare, Inc. |
20,007 | 1,560,546 | ||||||
STERIS PLC |
6,049 | 1,348,201 | ||||||
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5,680,760 | ||||||||
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Health Care Providers & Services 1.4% |
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UnitedHealth Group, Inc. |
2,695 | 1,335,022 | ||||||
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Life Sciences Tools & Services 5.0% |
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Bruker Corp. |
17,213 | 1,127,624 | ||||||
Danaher Corp. |
5,171 | 1,327,913 | ||||||
ICON PLC(a) |
4,744 | 1,540,946 | ||||||
West Pharmaceutical Services, Inc. |
2,432 | 805,989 | ||||||
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4,802,472 | ||||||||
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Pharmaceuticals 1.0% |
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Johnson & Johnson |
6,730 | 987,089 | ||||||
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12,805,343 | ||||||||
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1
Company | Shares | U.S. $ Value | ||||||
Industrials 8.9% |
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Aerospace & Defense 1.3% |
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Hexcel Corp. |
18,364 | $ | 1,264,729 | |||||
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Commercial Services & Supplies 5.3% |
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Tetra Tech, Inc. |
6,296 | 1,318,949 | ||||||
Veralto Corp. |
20,655 | 2,036,170 | ||||||
Waste Management, Inc. |
8,146 | 1,716,607 | ||||||
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5,071,726 | ||||||||
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Electrical Equipment 0.7% |
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Rockwell Automation, Inc. |
2,630 | 677,304 | ||||||
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Machinery 0.8% |
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Deere & Co. |
2,153 | 806,858 | ||||||
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Professional Services 0.8% |
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Maximus, Inc. |
9,144 | 787,298 | ||||||
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8,607,915 | ||||||||
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Financials 5.3% |
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Capital Markets 1.3% |
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Intercontinental Exchange, Inc. |
9,477 | 1,268,970 | ||||||
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Financial Services 2.2% |
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Visa, Inc. - Class A |
7,697 | 2,097,125 | ||||||
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Insurance 1.8% |
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Aflac, Inc. |
19,430 | 1,746,174 | ||||||
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5,112,269 | ||||||||
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Consumer Staples 3.4% |
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Household Products 1.7% |
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Procter & Gamble Co. (The) |
9,671 | 1,591,266 | ||||||
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Personal Care Products 1.7% |
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Unilever PLC (Sponsored ADR)(d) |
29,956 | 1,640,091 | ||||||
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3,231,357 | ||||||||
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Consumer Discretionary 2.2% |
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Automobile Components 1.3% |
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Aptiv PLC(a) |
15,044 | 1,252,564 | ||||||
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Household Durables 0.9% |
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TopBuild Corp.(a) |
2,072 | 865,992 | ||||||
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2,118,556 | ||||||||
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Utilities 2.1% |
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Electric Utilities 2.1% |
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NextEra Energy, Inc. |
25,124 | 2,010,422 | ||||||
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Total Common Stocks |
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56,282,106 | ||||||
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2
Principal Amount (000) |
U.S. $ Value | |||||||
GOVERNMENTS - TREASURIES 35.4% |
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United States 35.4% |
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U.S. Treasury Bonds |
$ | 363 | $ | 251,736 | ||||
3.00%, 05/15/2042 |
2,282 | 1,801,275 | ||||||
3.00%, 02/15/2048 |
557 | 416,853 | ||||||
3.00%, 02/15/2049 |
494 | 368,184 | ||||||
3.625%, 02/15/2053 |
63 | 52,846 | ||||||
3.625%, 05/15/2053 |
200 | 166,833 | ||||||
3.875%, 02/15/2043 |
122 | 109,108 | ||||||
3.875%, 05/15/2043 |
96 | 85,247 | ||||||
4.00%, 11/15/2052 |
778 | 696,700 | ||||||
4.25%, 02/15/2054 |
75 | 70,499 | ||||||
4.375%, 08/15/2043 |
138 | 131,423 | ||||||
4.50%, 02/15/2044 |
62 | 59,714 | ||||||
4.75%, 11/15/2043 |
1,487 | 1,486,036 | ||||||
4.75%, 11/15/2053 |
2,234 | 2,269,560 | ||||||
6.125%, 08/15/2029 |
585 | 626,713 | ||||||
U.S. Treasury Notes |
55 | 43,977 | ||||||
1.875%, 02/15/2032 |
1,770 | 1,468,049 | ||||||
2.25%, 08/15/2027 |
1,598 | 1,483,643 | ||||||
2.50%, 03/31/2027 |
2,574 | 2,424,788 | ||||||
2.75%, 08/15/2032 |
139 | 122,211 | ||||||
3.50%, 01/31/2028 |
1,003 | 964,689 | ||||||
3.50%, 04/30/2028 |
805 | 773,495 | ||||||
3.75%, 12/31/2028 |
434 | 419,392 | ||||||
3.875%, 12/31/2027 |
454 | 442,650 | ||||||
3.875%, 08/15/2033 |
114 | 107,967 | ||||||
4.00%, 02/29/2028 |
624 | 610,740 | ||||||
4.00%, 06/30/2028 |
261 | 255,388 | ||||||
4.00%, 01/31/2029 |
236 | 230,445 | ||||||
4.00%, 02/15/2034 |
2,570 | 2,466,589 | ||||||
4.125%, 09/30/2027 |
2,576 | 2,533,738 | ||||||
4.125%, 10/31/2027 |
2,035 | 2,000,977 | ||||||
4.125%, 11/15/2032 |
138 | 133,946 | ||||||
4.25%, 02/28/2029 |
1,995 | 1,969,865 | ||||||
4.375%, 11/30/2028 |
466 | 462,902 | ||||||
4.50%, 11/15/2033 |
312 | 311,564 | ||||||
4.625%, 02/28/2026 |
189 | 188,106 | ||||||
4.625%, 03/15/2026 |
844 | 838,624 | ||||||
4.625%, 09/30/2028 |
3,246 | 3,250,872 | ||||||
4.875%, 10/31/2030 |
1,968 | 2,004,285 | ||||||
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Total Governments - Treasuries |
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34,101,629 | ||||||
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AGENCIES 2.7% |
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Agency Debentures 2.7% |
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Federal Home Loan Banks |
100 | 98,507 | ||||||
4.50%, 03/13/2026 |
1,000 | 991,240 | ||||||
Federal National Mortgage Association |
1,382 | 1,533,953 | ||||||
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Total Agencies |
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2,623,700 | ||||||
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3
Company | Shares | U.S. $ Value | ||||||
SHORT-TERM INVESTMENTS 3.3% |
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Investment Companies 3.3% |
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AB Fixed Income Shares, Inc. - Government Money Market Portfolio - Class AB, 5.22%(e) (f) (g) |
3,200,342 | $ | 3,200,342 | |||||
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Total Investments 99.9% |
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96,207,777 | ||||||
Other assets less liabilities 0.1% |
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61,313 | ||||||
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Net Assets 100.0% |
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$ | 96,269,090 | |||||
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(a) | Non-income producing security. |
(b) | Fair valued by the Adviser. |
(c) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(d) | Represents entire or partial securities out on loan. |
(e) | Affiliated investments. |
(f) | The rate shown represents the 7-day yield as of period end. |
(g) | To obtain a copy of the funds shareholder report, please go to the Securities and Exchange Commissions website at www.sec.gov, or call AB at (800) 227-4618. |
(h) | As of May 31, 2024, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $12,630,587 and gross unrealized depreciation of investments was $(3,200,694), resulting in net unrealized appreciation of $9,429,893. |
Glossary:
ADR American Depositary Receipt
4
AB Sustainable Thematic Balanced Portfolio
May 31, 2024 (unaudited)
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). 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 Funds 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 Funds 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 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. In addition, non-agency rated investments 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.
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, by pricing vendors, 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.
5
The following table summarizes the valuation of the Funds investments by the above fair value hierarchy levels as of May 31, 2024:
Investments in Securities: |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: |
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Common Stocks: | ||||||||||||||||
Information Technology |
$ | 22,396,244 | $ | | $ | 0 | (a) | $ | 22,396,244 | |||||||
Health Care |
12,805,343 | | | 12,805,343 | ||||||||||||
Industrials |
8,607,915 | | | 8,607,915 | ||||||||||||
Financials |
5,112,269 | | | 5,112,269 | ||||||||||||
Consumer Staples |
3,231,357 | | 3,231,357 | |||||||||||||
Consumer Discretionary |
2,118,556 | | | 2,118,556 | ||||||||||||
Utilities |
2,010,422 | | | 2,010,422 | ||||||||||||
Governments - Treasuries | | 34,101,629 | | 34,101,629 | ||||||||||||
Agencies | | 2,623,700 | | 2,623,700 | ||||||||||||
Short-Term Investments | 3,200,342 | | | 3,200,342 | ||||||||||||
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Total Investments in Securities | 59,482,448 | 36,725,329 | 0 | (a) | 96,207,777 | |||||||||||
Other Financial Instruments(b) | | | | | ||||||||||||
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Total | $ | 59,482,448 | $ | 36,725,329 | $ | 0 | (a) | $ | 96,207,777 | |||||||
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(a) | The Portfolio 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. |
A summary of the Funds transactions in AB mutual funds for the nine months ended May 31, 2024 is as follows:
Fund | Market Value 08/31/2023 (000) |
Purchases at Cost (000) |
Sales Proceeds (000) |
Market Value 05/31/2024 (000) |
Dividend Income (000) |
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Government Money Market Portfolio | $ | 2,048 | $ | 19,333 | $ | 18,181 | $ | 3,200 | $ | 63 | ||||||||||
Government Money Market Portfolio* | 131 | 7,553 | 7,684 | 0 | 10 | |||||||||||||||
Total | $ | 2,179 | $ | 26,886 | $ | 25,865 | $ | 3,200 | $ | 73 |
* | Investments of cash collateral for securities lending transactions |
6